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2 September 2016
Former Executive of Stamford Company Sentenced to Prison for Insider TradingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that DENNIS W. HAMILTON, 46, of Norwalk, was sentenced yesterday by U.S. District Judge Alvin W. Thompson in Hartford to eight months of imprisonment, followed by one year of supervised release, for insider trading. Judge Thompson also
According to court documents and statements made in court, HAMILTON was employed as Vice President of Tax at Harman International Industries, Incorporated (“Harman”) in Stamford. Harman is a publicly-held company whose shares trade on the New York Stock Exchange under the ticker symbol “HAR.” Beginning in 2009, Harman allowed directors, members of its executive committee and certain other insiders to buy or sell Harman securities in the public market only during a declared trading window period. In August 2013, HAMILTON was included on Harman’s insider trading list, and he was subsequently notified when the window in which he could engage in open market purchases of Harman securities was open, and that all trades must be cleared in advance with Harman’s general counsel. On September 27, 2013, HAMILTON and other Harman employees were advised via email that the “window period” within which they may engage in open market purchases or sales of Harman securities had closed.
In October 2013, HAMILTON received material, non-public information about Harman’s financial results for the first quarter for the fiscal year ending 2014, including drafts of Harman’s Form 10-Q filing and an earnings press release. He and other Harman executives also participated in a conference call with Harman’s Audit Committee, during which a draft resolution declaring a quarterly cash dividend on Harman’s common stock was discussed.
On October 30, 2013, HAMILTON, an insider in possession of material, non-public information, purchased 17,000 shares of HAR for between $72.07 and $72.67 per share, through a Charles Schwab account in the name of HAMILTON and his wife. On October 30, 2013, the closing price of HAR was $72.02. On October 31, 2013, Harman announced positive first quarter earnings for fiscal year 2014. On that date, the closing price of HAR was $81.02.
Between October 31, 2013 and November 5, 2013, through his Charles Schwab account, HAMILTON wrote at least 200 covered calls on HAR at a strike price of $70.00 with an expiration date of November 16, 2013 for a premium of $203,366. Through the use of some of these covered calls, HAMILTON realized a gain of $131,958 on the 17,000 shares of HAR he had purchased on October 30, 2013.
HAMILTON was arrested on a criminal complaint on February 5, 2016. On March 28, 2016, he waived his right to indictment and pleaded guilty to one count of securities fraud.
In a parallel action, the Securities and Exchange Commission has filed related civil charges against HAMILTON. (Securities and Exchange Commission v. Dennis Wayne Hamilton, 3:16-cv-00192)
This investigation was conducted by the Federal Bureau of Investigation with valuable assistance from Harman International Industries. The case was prosecuted by Assistant U.S. Attorney Heather Cherry.
Former DPW Employee Sentenced to Federal Prison for Two Separate Schemes to Defraud the City of BaltimoreRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Charles Dennis Bolden, Sr., age 69, of Baltimore, a former employee at the Quarantine Road Landfill (Landfill), today to 15 months in federal prison, followed by three years of supervised release for conspiring to commit two separate criminal schemes: one in which Department of Public Works (DPW) employees sought and accepted cash payments from commercial haulers in return for allowing the haulers to deposit trash at the Landfill without paying the required disposal fees (extortion scheme); and a second scheme in which DPW employees stole scrap metal from the Landfill for personal gain (the junking scheme).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
Extortion Scheme
Baltimore City residents can deposit small amounts of trash and/or recyclables in dumpsters at the Convenience Center located near the main entrance of the Landfill, free of charge. Individuals or companies commercially hauling trash that have registered their vehicles with Baltimore City and obtained Landfill permits, as well as Baltimore City residents with larger loads, must deposit their trash in an open area located within the Landfill. Commercial haulers of trash that meet certain vehicle weight limitations must, in addition to purchasing a Landfill permit, pay a waste disposal fee of $67.50 per ton of trash deposited at the Landfill. DPW employees assigned as scale house operators weigh each truck as it enters the Landfill, which is recorded on a computerized point-of-sale system. The scale house operators reweigh each truck as it leaves the Landfill. The net weight of the deposited trash and the required disposal fee is then calculated and printed on a receipt that is handed to the driver.
According to the statement of facts presented by the government to the court, Bolden, who was employed by DPW as a laborer at the Landfill, and other DPW employees sought and accepted cash payments from commercial haulers in return for allowing the commercial haulers to deposit trash at the Landfill without paying the required disposal fees.
On August 28, 2013, an FBI confidential source (CS) went to the Convenience Center and spoke with Bolden about the cost of dumping a truckload of trash at the Landfill. Bolden told the CS that he and his “girls” at the scale house would have to be paid a “fair” amount of money in order for the CS to avoid paying the required disposal fee assessed at the scale house. When the CS agreed to make the payment, Bolden said that the scale house “girl gonna wave you thru.”
The next day, Latonya Drinkard, a scale house operator, waved the CS past the scale house and allowed him to dump his truckload of trash without paying the required fee. Afterwards, the CS paid Bolden $70 in cash, which Bolden explained was a lot less than what he and the scale house “girls” have charged others. On September 12, 2013 and October 9, 2013, Drinkard allowed the CS to dump two more truckloads of trash without paying the required disposal fee. Bolden charged the CS $200 for each truckload.
During a recorded conversation on October 17, 2013, Drinkard asked the CS how much Bolden was charging the CS. Upon learning that it was $200 per trip, the scale house operator agreed to waive the disposal fee for less money without Bolden’s involvement and stated, “Just call and let me know whenever you want to come in and I got you.”
Illegal Junking Scheme
In addition to the revenue generated by the collection of disposal fees, Baltimore City’s waste management system generates revenue by collecting and selling recyclable scrap metal dumped at the City’s trash collection facilities, including household appliances, steel cables, copper wires, car parts, computer parts, door and window frames. The City awards contracts to private salvage companies to purchase and remove such scrap metal from its trash collection facilities.
DPW employees at the Landfill and other trash collection sites are required to segregate the recyclable scrap metal from general refuse and place it in separate bins provided by the salvage companies. The companies regularly pick up the scrap metal, weigh it and send a tonnage report to the City. Based on predetermined prices per ton, the City sends an invoice to the companies requesting payment for the value of the scrap metal the companies removed during a given period of time. Salvaging by employees, also referred to as “junking,” was strictly prohibited and employees were put on notice that any salvaging of metal constituted theft of City property.
According to the statement of facts presented by the government to the court, from 2005 to May 2015, Bolden and other Landfill employees falsely represented to the DPW that they were performing the jobs for which they were hired when, in fact, they used their paid positions during work hours to unlawfully collect, remove and sell scrap metal for personal gain.
For most of the period, Bolden oversaw operations at the Convenience Center where residential trash was dumped. Video recordings documented Bolden’s use of a front-end loader to separate salvageable metal from the general trash bins. After setting aside a sufficient amount of such metal, Bolden would use his cell phone to contact other laborers, including Jarrod Hazelton and Michael Bennett, to pick up what he had collected. Video footage showed Bolden helping to load the salvageable metals onto other employees’ pick-up trucks as well as his own. Those employees, in turn, would sell the metal to salvage companies and share the proceeds of the sales with Bolden. Sometimes the other laborers would meet with Bolden after hours to pick up his stolen metal and pay him.
The scrap metal that Bolden, Hazelton, Bennett and others stole and sold to private salvage companies resulted in a loss of revenue to the City totaling hundreds of thousands of dollars.
In addition, video footage established that Bolden and other employees spent a significant part of almost every workday coordinating the search and collection of salvageable metals to steal. Nonetheless, Bolden and other employees regularly signed and submitted daily time and attendance sheets falsely reflecting that they had fulfilled the hourly requirements of their respective paid positions when, in fact, they were routinely engaged in unauthorized “junking.” As a result, Bolden received hourly wages every pay period for work he did not perform on behalf of the City. More specifically, for calendar years 2013 and 2014, Bolden stole and conspired to steal salvageable metals and unearned wages from Baltimore City totaling more than $5,000 per year.
Former DPW employees William Charles Nemec, Sr., age 56; Tamara Oliver Washington age 56; and Michael Theodore Bennett, age 47, all of Baltimore, pleaded guilty to their roles in the scheme and were sentenced to 78 months, 18 months, and 46 months in prison, respectively. Judge Garbis also entered orders requiring Nemec and Washington to pay restitution of $6 million. Jarrod Terrell Hazelton, age 33, of Parkville, Maryland, also pleaded guilty and was sentenced to two years in prison. Judge Garbis ordered Bennett and Hazelton each to pay restitution of $400,000. Latonya Drinkard, age 39, of Baltimore, also pleaded guilty and is scheduled to be sentenced on October 13, 2016.
Commercial trash hauler, John Howard Brady, age 74, was convicted by a federal jury in the bribery scheme, and sentenced to three years in prison. The five remaining commercial trash haulers pleaded guilty to their participation in the bribery scheme. Quentin Turgot Glenn, age 50, of Hanover, Maryland, who owned and operated Glenn Services, LLC, a trash hauling business, was sentenced to three years in prison. Jessie Lee Wilson, Jr., age 41, of Baltimore, who was employed by Glenn Services as a truck driver, was sentenced to three years of probation, with the first year to be spent in community confinement. Adam Williams, Jr., age 53, of Randallstown, was sentenced to one year in prison; and Larry Lowry, age 61, of Orchard Beach, Maryland, to 30 months in prison. Judge Garbis also ordered that Glenn pay restitution of $306,000; Williams pay restitution of $900,000; and Lowry pay restitution of $180,000. Mustafa Sharif, age 64, of Baltimore, awaits sentencing.
United States Attorney Rod J. Rosenstein praised the FBI, IRS-CI, Baltimore Office of Inspector General and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Martin J. Clarke and Leo J. Wise, who are prosecuting the cases.
Former Brockport Fireman Sentenced for Mail Fraud, Forging Treasury Checks and Obstruction of JusticeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Steven Ray, 51 of Brockport, NY, who was convicted of mail fraud, forging treasury checks, and obstructing an official proceeding, was sentenced to 84 months in prison by U.S. District Court Judge David G. Larimer. The defendant was also ordered to pay $309,511 in restitution to the United States.Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that federal law enforcement agents first encountered Ray related to his role in a mail fraud scheme involving stolen United States Treasury checks. In that case, Ray cashed more than 120 forged checks worth more than $400,000 over an 18-month period of time. The checks were stolen from residents in the New York City Area as well as from people in other parts of the United States. The stolen checks were mailed to Ray via the United States Postal Service at his Brockport home.
During that investigation, federal agents identified at least 13 area bank accounts controlled by the defendant under various names, including his own as well as a company he owned named Steray of Rochester. Ray took the stolen checks he received by mail and deposited them across multiple accounts. Many of the checks belonged to people who received Social Security payments, tax refunds, and other money drawn from the United States Treasury to help the intended recipients. As a result of the defendant’s scheme to defraud, Ray obtained more than $400,000, however, the United States was able to recover almost $100,000 from the banks during the investigation.
While out of custody awaiting sentencing on that case, the defendant filed a sentencing statement with the Court in May 2015. Among the items submitted to the Court in support of a downward departure sentence were several claims about Ray’s alleged heroic service as a Brockport Fireman. Specifically, the defendant claimed that he dove into a Brockport swimming pool and pulled a three-year-old unconscious child from the water and then performed CPR until help arrived. Ray also claimed that he was the first on the scene of an incident at SUNY Brockport in which a student fell down a stairwell. In that incident, the defendant claimed to have performed an emergency tracheotomy on the victim using only his penknife. However, the facts showed that his statements were all lies, and that Ray actually did none of these things.
In that same request for a downward departure sentence, the defendant also submitted a letter from a local resident attesting to Ray’s character and truthfulness. However, it turned out the letter was actually a forgery. Federal agents met with the witness who confirmed that he never wrote a letter in support of Ray, did not say the things in the letter, and pointed out that many of the things in the letter, including the spelling of the witness’ own name was wrong. Based on this, the Government filed a notice with the Court pointing out that the defendant submitted false material to the Court for sentencing. Ray received a copy of that statement the day it was filed.
Within hours of receiving that statement, the defendant went to the home of that witness, who is wheelchair bound, and coerced and intimidated him into submitting a false affidavit saying that he had actually written the letter to the Court. Ray did this late at night while the witness was already in bed. The defendant then had the false affidavit notarized and submitted to the Court.
Ray was an Officer with the Brockport Fire Department for the entire time he was engaged in the fraudulent scheme to defraud the United States. He was fired in March of 2015 following his felony plea to mail fraud but retained his Fire Department Badge and ID, which he continued to use after his termination.
The sentencing is the culmination of an investigation on the part of Inspectors from the United States Postal Inspection Service, under the direction of Shelly Binkowski, Inspector In Charge of the Boston Division, and Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the Direction of Special Agent in Charge of the New York Field Office, Shantelle P. Kitchen.
Federal Jury Finds Man Guilty of Conspiracy and Possession with Intent to Distribute Three Kilograms of CocaineRead the Press Release
NEW BERN – The United States Attorney’s Office for the Eastern District of North Carolina announced that Wednesday, a federal jury in New Bern found RAMON SANMARTIN, JR. guilty of conspiracy to possess and possession with the intent to distribute three kilograms of cocaine.
SANMARTIN was named in an Indictment originally filed on November 3, 2015. SANMARTIN was arrested on August 26, 2015 when he picked up a package sent to him via the United States Postal Service from San Juan, Puerto Rico to a Days Inn hotel in Morrisville, NC. The package was intercepted by Inspectors with the United States Postal Inspection Service, who were able to open the package and find three bricks of cocaine, totaling approximately three kilograms.
At sentencing, SANMARTIN faces a mandatory minimum sentence of 5 years imprisonment and a maximum of 40 years imprisonment.
Investigation of this case was conducted by the United States Postal Inspection Service, the Wake County Sheriff’s Office, and the Raleigh Police Department. Assistant United States Attorneys Laura Howard and Edward Gray represented the government.
East Durham Man Pleads Guilty to Child Pornography ChargesRead the Press Release
ALBANY, NEW YORK – Gregory Kurzajczyk, age 69, of East Durham, New York, pled guilty today to distributing and receiving child pornography.
The announcement was made by United States Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge for Immigration and Customs Enforcement, Homeland Security Investigations (HSI).
Kurzajczyk faces at least 5 years and up to 20 years in prison, and a term of post-imprisonment supervised release of at least 5 years and up to life, when he is sentenced on January 4, 2017 by United States District Judge Mae A. D’Agostino. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Kurzajczyk would also have to register as a sex offender upon his release from prison.
As part of his plea, Kurzajczyk admitted that between July 16, 2014 and January 19, 2015, an undercover law enforcement officer using an Internet file-sharing application downloaded child pornography images and videos from Kurzajczyk’s computer. Kurzajczyk also admitted to using the file-sharing application to download child pornography.
This case was investigated by Homeland Security Investigations (HSI) and the Colonie Police Department, with the assistance of the U.S. Secret Service, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Eagle Butte Man Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Assaulting, Resisting, and Impeding a Federal Officer was sentenced on August 29, 2016, by U.S. District Judge Roberto A. Lange.
Carlin Brings Horse, Jr., age 38, was sentenced to 6 months in custody, 6 months in home confinement, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Brings Horse was indicted by a federal grand jury on November 10, 2015. He pled guilty on May 31, 2016.
The conviction stemmed from an incident in the late evening on June 21, 2015, when Carlin Brings Horse, Jr., went to the Indian Health Services emergency room with his mom and sister, after taking “new meth” claiming he was hallucinating. He was checked out medically and offered a shot of Ativan but refused it, as well as a transfer to behavioral health. Brings Horse was then released from the emergency room. A few hours later, in the early morning hours of June 22, 2015, Brings Horse and his family arrived back at the emergency room, claiming his chest hurt and his heart was racing again from the “new meth.” Brings Horse also admitted to drinking alcohol and using marijuana that night. He again refused treatment.
Law enforcement arrived at the emergency room and took Brings Horse into tribal protective custody. Once at the detention center, Brings Horse was booked into a holding cell with another inmate.
Brings Horse began to splash urine water on the other inmate in his cell. Correctional officers entered the cell and told Brings Horse to stop splashing urine water on his cellmate. Brings Horse refused to follow commands and instead splashed urine water on the officers. He was directed to stop and get on the ground. Brings Horse refused and got into a fighting stance. He was told again to get on the ground but refused. The officers approached Brings Horse and a physical altercation began. Brings Horse swung at and hit both officers. One of the officer was able to get Brings Horse around the waist and partially over his shoulder. Brings Horse then bit the officer twice on the back through his shirt. Also during the struggle, the second officer was kicked in the groin area and sustained scrapes to his hand. The officers were finally able to secure Brings Horse in leg and wrist restrains.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Brings Horse was immediately turned over to the custody of the U.S. Marshals Service.
District Man Pleads Guilty to Series of Sexual Attacks Against Women in Southeast WashingtonRead the Press Release
WASHINGTON - Darius Nelson, 28, of Washington, D.C., pled guilty today to charges involving a series of sexual assaults in Southeast Washington, announced U.S. Attorney Channing D. Phillips and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Nelson pled guilty in the Superior Court of the District of Columbia to three counts of first-degree sexual abuse with aggravating circumstances. The plea, which is contingent upon the Court’s approval, calls for a prison term of 40 years. This term will run consecutively to the 22-year sentence he is currently serving for sexual assault convictions previously prosecuted by this office. Upon release, Nelson would be required to register as a sex offender for the remainder of his life. The Honorable José M. López scheduled sentencing for Nov. 18, 2016.
In the earlier case, Nelson pled guilty in 2014 to sexually assaulting two women in separate attacks that took place in Southeast Washington in October of 2013. Today, Nelson pled guilty to assaulting three other women in separate incidents in 2012 and 2013.
During today’s proceedings, Nelson admitted that late in the evening on April 11, 2012, he was walking with the first victim when he put her into a chokehold and dragged her to the rear of a residence in the 1600 block of 21st Place SE. He threw her to the ground, punched her in the face, and sexually assaulted her. After the sexual assault, he again physically assaulted her.
Nelson further admitted that in the early morning hours of Aug. 18, 2012, the second victim was walking on Minnesota Avenue SE, near Pennsylvania Avenue, when he started a conversation with her. During that conversation, Nelson hit her in the face and put what he told the victim was a knife to her back. He then forced her to the rear of a gas station where he sexually assaulted her. Afterward, he ordered her to stay on the ground and not get up, and he fled.
Finally, Nelson admitted that late in the evening on Sept. 18, 2013, he grabbed the third victim from behind in a chokehold and forced her into an alley in the rear of the 2200 block of Nicholson Street SE. In the alley, he robbed her, then pushed her to the ground and sexually assaulted her. When finished, he told her to stay down and remain still, and he fled the scene.
The victims were all taken to Washington Hospital Center, where they each received a sexual assault examination. Swabs taken from two of the victims during their examinations were sent to Bode Technology for DNA testing. A male DNA profile found on the swabs was entered into the Combined DNA Index System (CODIS), a web of state and national databases containing DNA profiles from convicted offenders and crime scenes that is used as an investigative tool. Nelson was identified as a suspect through a CODIS search and DNA “cold hit.” His DNA profile had been loaded into the CODIS database following his 2014 convictions for sexually assaulting the other two women. During an interview with detectives from the MPD’s Sexual Assault Unit in November 2014, Nelson admitted to committing his crimes against the three women in the case that led to the plea today.
In announcing the plea, U.S. Attorney Phillips and Chief Lanier commended the work of the detectives of the Metropolitan Police Department’s Sexual Assault Unit. They also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Lezlie Richardson and Paralegal Specialists Tierra Nanches, Angelina Slagle, and Wanda Trice. Finally, they acknowledged the efforts of Assistant U.S. Attorneys Julianne Johnston, Jodi Lazarus, and Lindsay Suttenberg, who prosecuted the case.
Detroit-Area Drug Trafficking Organization Charged for Overdose Deaths from FentanylRead the Press Release
A superseding indictment was returned yesterday adding new criminal charges against 13 Detroit-area men accused of conspiring to distribute heroin, crack cocaine and other drugs, U.S. Attorney Barbara L. McQuade announced today. Nine of the defendants were charged with distributing fentanyl and heroin resulting in overdose death and serious bodily injury.
Joining McQuade in the announcement were Special Agent in Charge Timothy J. Plancon, Drug Enforcement Administration, Detroit Division, and Police Commissioner Jere Green, Warren Police Department and Mayor James R. Fouts, City of Warren.
The drug-trafficking organization, known as the ”Polo” organization, became the focus of investigation beginning in March, when heroin distributed by the group was connected to a spike in overdose deaths.
Charged were Demarco Tempo, 27 (also known as “Polo”) of Warren; Haratio Heard, 25; Juwan Allen, 22; Darius Gordon, 25; Alvin Coates, 21; Javon Brown, 25; Greg Howard, 20; Dennis Jones, 21; Amacio Alexander, 39; Marcus Gilbert, 22; Kenneth Sadler, 28; Darreyl Coneal, 28; and Randy Stewart, 25, all from Detroit. All were charged with conspiracy to distribute and to possess with intent to distribute controlled substances, including heroin, crack cocaine, powder cocaine and fentanyl. Defendants Tempo, Heard, Allen, Gordon, Coates, Brown, Howard, Jones and Gilbert were charged in the conspiracy with distribution of heroin and fentanyl where death and serious bodily harm occurred to multiple victims. Some of the defendants were also charged with substantive counts of drug distribution. Tempo was charged with distribution of heroin and fentanyl resulting in the death of one victim. Tempo, Gordon and Coats were also charged with distributions of heroin and fentanyl resulting in serious bodily injury to three other victims. The law defines serious bodily injury as an injury that involves a substantial risk of death. The charges of distribution causing death or serious bodily injury, or the conspiracy to commit the offence each carry a mandatory minimum penalty of 20 years’ imprisonment.
Tempo, Heard, Allen, Gordon, Brown, Howard, Jones, and Alexander were also charged with conspiring to possess firearms in furtherance of the drug-trafficking conspiracy. Sadler was charged with being a felon in possession of a firearm.
"Overdose deaths from heroin and fentanyl are becoming a national epidemic, including here in Michigan, as people addicted to prescription pills become desperate to feed their addictions," McQuade said. "Law enforcement agencies are banding together to prosecute traffickers who are exploiting these addictions and risking lives for profit."
DEA Special Agent in Charge Plancon said, “It is a priority of DEA to identify and investigate those who distribute drugs that result in overdose and death. The charges announced today should make it clear to all drug dealers that they will face consequences, for the harm that they inflict on the user and on society. The Warren Police Department deserves significant credit for devoting the time and effort needed to successfully investigate and bring these individuals to prosecution.
Mayor Fouts stated, “I would like to highly commend both the Warren Police Special Investigations Unit and the DEA for their hard work and dedication in this investigation which led to the grand jury indictment charging the leader of a drug trafficking organization with the death and overdoses of four victims. This initiative was started by the Warren Police from my request to Commissioner Jere Green to institute a massive drug bust against this drug trafficking organization following the OD deaths of seven Warren residents earlier this year.”
The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This investigation was led by the Warren Police Department’s Special Investigations Division, in partnership with the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Benjamin Coats.
Des Arc Couple Pleads Guilty to Bank Fraud and Money LaunderingRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, Tracey D. Montaño, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation Division, and Wanda C. Merritt, Field Office Director of the U.S. Department of Housing and Urban Development (HUD) announced today that Rhonda Williams, 50, and her husband, Gary Williams, 59, both of Des Arc, Arkansas, appeared before Chief United States District Judge Brian S. Miller and pleaded guilty to a 2-count felony information, charging them with conspiracy to commit bank fraud and money laundering. In addition, they have also agreed to forfeit the proceeds of the fraud.
Rhonda Williams was the Executive Director of the Cotton Plant Housing Authority. Gary Williams was the Housing Authority’s Maintenance Supervisor. The Housing Authority received its annual operating funds from HUD in the form of an annual distribution into its account at Signature Bank of Arkansas.
From January 31, 2001 to December 31, 2014, the Williams conspired to execute a scheme to obtain money and property under the custody and control of Signature Bank of Arkansas by means of false and fraudulent pretenses. As part of the scheme to defraud, they made material misrepresentations concerning the reasons for the payment of money intended for use by the Housing Authority, solicited and accepted bribes and kickbacks from Housing Authority contractors, caused the Housing Authority to pay their personal expenses on their Housing Authority credit cards, and took Housing Authority equipment and materials and used them in the construction of their personal residence.
As part of their plea agreements, the defendants agreed that they received more than $52,000.00 from this conspiracy. The full extent of the loss will be litigated at sentencing. The Court has not yet set a date for the sentencing hearing.
This investigation was conducted by IRS-Criminal Investigation Division and the U.S. Department of Housing and Urban Development. Assistant United States Attorney Cameron McCree prosecuted the case for the United States.
Coffee County Methamphetamine Trafficker SentencedRead the Press Release
G. F. Peterman, III, United States Attorney for the Middle District of Georgia, announces that Jose Alberto Sandoval Moya, of Douglas, Georgia was sentenced to serve 240 months in Federal prison for conspiracy to possess with the intent to distribute methamphetamine weighing more than 50 grams. The sentence was handed down by Senior United States District Judge W. Louis Sands, Sr. on September 1, 2016 in Albany.
Mr. Moya was convicted of the charge on April 8, 2016 following a five-day jury trial. Evidence presented during trial showed that Mr. Moya conspired together with Raymond Riviera Cortez, also of Douglas, Georgia, and Corrinne Gillis, of Fitzgerald, Georgia, to possess with the intent to distribute methamphetamine. The evidence further revealed that Mr. Moya arranged for Ms. Gillis to travel to Mexico on three occasions to bring methamphetamine to South Georgia for distribution. The conspiracy concluded when Ms. Gillis was arrested at the US/Mexico Border at the Matamoros, Mexico/Brownsville, Texas crossing. When arrested, Ms. Gillis was in possession of over 17 kilograms (over 43 pounds) of 100% pure methamphetamine, the largest seizure ever made at that point of entry into this country. The drugs had been hidden in the tires of the vehicle in order to smuggle it past authorities at the border. Each tire contained between 10 and 12 pounds of methamphetamine.
“There is no way to determine how many lives would have been ruined or lost had Mr. Moya succeeded in his scheme to smuggle this record setting load of methamphetamine into this country from Mexico. He earned and richly deserves the sentence imposed upon him today,” said United States Attorney Peterman.
The case was investigated by the Georgia Bureau of Investigation, Sylvester Regional Office, the Sheriff’s Offices of Ben Hill and Coffee County, Georgia and by Department of Homeland Security. Assistant United States Attorney Leah McEwen prosecuted on behalf of the Government.
Inquiries regarding the case should be directed to Pamela Lightsey, Public Affairs Specialist, United States Attorney’s Office at (478) 621-2603.
Cedar Rapids Recidivist Felon Sentenced to Maximum Prison TermRead the Press Release
A Cedar Rapids man with an extensive criminal history who fired shots into the air in a residential neighborhood using a stolen handgun was sentenced yesterday to 10 years in federal prison.
Tiamo Blackcloud, 38, from Cedar Rapids, received the prison term after a January 25, 2016, guilty plea to being a prohibited person in possession of a firearm and ammunition. He was prohibited from possessing the firearm and ammunition because he was a felon.
At the guilty plea hearing, Blackcloud admitted to firing a weapon into the air in a Cedar Rapids neighborhood on August 18, 2015. He had been drinking at the time. Blackcloud’s criminal history included two felony convictions and, in total, he had 56 criminal convictions. His criminal activities began at age 18 and continued up to his arrest last August, and included numerous assaultive encounters with both women and the police. The sentencing judge ordered a non-guideline sentence to the statutory maximum sentence based on his criminal history, risk to the public and nature and circumstances of the offense.
Blackcloud was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. He was sentenced to 120 months’ imprisonment. A special assessment of $100 was imposed. Blackcloud must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Steve Young and investigated by the CRPD and the FBI’s Safe Streets Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-00099.
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Brewer Man Pleads Guilty to Illegally Possessing FirearmsRead the Press Release
Contact: Jody Mullis
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Walter Botelho, 52, of Brewer, Maine pleaded guilty today in U.S. District Court to being a felon in possession of firearms.
According to court records, on May 2, 2016, law enforcement officers executed a search warrant at the defendant’s Brewer residence and recovered, among other things, two rifles and two shotguns. The defendant was prohibited from possessing firearms because of prior felony convictions for first degree manslaughter (New York), receiving stolen goods (Rhode Island), and assault and battery (Massachusetts).
Botelho faces up to 10 years in prison, three years of supervised release and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Brewer Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Bar Owner Sentenced for Tax EvasionRead the Press Release
An Atkins man who committed tax evasion by not reporting all his income from the businesses he owned was sentenced earlier this week to 18 months in federal prison.
Bradley Tischer, age 51, from Atkins, IA, received the prison term after a guilty plea was entered for one count of tax evasion in March 2016.
In a plea agreement, Tischer admitted he owned and operated three bars and grills known as Brogan’s, Miguel’s and Bobby T’s. He also had a corporation known as JGT, Inc., which was used to operate Miguel’s and Bobby T’s. Tischer underpaid his taxes from 2009-2013 and the resulting tax loss was over $250,000.00. Each tax return contained a written declaration that it was signed under the penalty of perjury. Tischer knew he had not reported all of his income.
Tischer was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Tischer was sentenced to 18 months’ imprisonment and fined $5,000.00. A special assessment of $100.00 was imposed, and he was ordered to make $2,961.88 in restitution to the United States for costs of prosecution. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Tischer was released on the bond previously set and is to surrender to the United States Marshal on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Matthew J. Cole and was investigated by Internal Revenue Service-Criminal Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-cr-16.
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Aryan Brotherhood of Texas Members/Associates Convicted in Methamphetamine Distribution ConspiracyRead the Press Release
FORT WORTH, Texas — Following a four-day trial before U.S. District Judge John McBryde, late yesterday a federal jury convicted seven defendants, including members and associates of the Aryan Brotherhood of Texas prison gang, for their roles in a methamphetamine distribution conspiracy that operated in north Texas from approximately January 2014 to April 2016. In addition, between April and August 2016, 80 defendants charged in drug conspiracy cases related to this one have pleaded guilty. U.S. Attorney John Parker of the Northern District of Texas made today’s announcement.
Each of the below-listed defendants was convicted on one count of conspiracy to possess with intent to distribute 50 grams or more of methamphetamine.
Charles Ben Bounds, a/k/a “Pretty Boy,” 31, of Fort Worth, Texas
Billy Fred Gentry, a/k/a “Fred Gentry,” 30, of Fort Worth, Texas
Kevin Kyle Killough, a/k/a “Kilo,” 29, of Fort Worth, Texas
Billy Ray Skaggs, 48, of Brownwood, Texas
Michael Clay Heaslet, a/k/a “Whisper,” 38, of Fort Worth, Texas
Nicole Cynthia Herrera, a/k/a “Nikki Single,” 21, of Dallas, Texas
Trae Short, a/k/a “Twig,” 31, of Dallas, TexasOne defendant, James Marcus Laxson, was acquitted.
The penalty for the offense is not less than five years or more than 40 years in federal prison and a $5 million fine. The defendants are scheduled be sentenced by Judge McBryde in February 2017.
The government presented evidence at trial that some of the defendants were members, including ranking members, or associates, of the Aryan Brotherhood of Texas. The government presented further evidence identifying the defendants and the role of each in the conspiracy. Text messages from some defendants’ phones, and recordings of phone calls from jail were introduced that detailed their methamphetamine trafficking.
The Drug Enforcement Administration, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) and the Fort Worth Police Department investigated. Assistant U.S. Attorneys Shawn Smith and Frank Gatto are prosecuting the case.
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Anderson Women Plead Guilty to Mail Theft ConspiracyRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Karissa L. Miller, age 25, and Ruby A. Adams, age 54, both of Anderson, pled guilty yesterday in federal court in Greenville, to a conspiracy to commit mail theft, a violation of Title 18, United States Code, Section 371. United States District Judge Bruce Howe Hendricks, of Charleston, accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that the defendants stole mail in and around Anderson County in an effort to obtain blank checks that are often sent to bank customers along with their statements. Once in possession of the checks, they would open bank accounts, forge the checks, and deposit the checks into the accounts. Defendants would withdraw money from the accounts before their fraud was discovered.
Ms. Drake stated the maximum penalty defendants can receive is a fine of $250,000 and/or imprisonment for 5 years, plus a special assessment of $100.
The case was investigated by agents of the Anderson Police Department and the United States Postal Inspection Service. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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Alleged Getaway Driver in Robbery of Hawthorne, New Jersey, TD Bank Charged in Federal CourtRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man is scheduled to appear in federal court today in connection with the robbery of a TD Bank in Hawthorne, New Jersey, on Feb. 17, 2016, U.S. Attorney Paul J. Fishman announced.
Alejandro Ortiz, 20, of Haskell, New Jersey, is charged by complaint with one count of bank robbery. He is expected to appear this afternoon before U.S. Magistrate Judge James B. Clark III in Newark federal court.
Robert Somers 44, of Little Falls, New Jersey, is charged in the same complaint. He was arrested and appeared in court before U.S. Magistrate Judge Leda Dunn Wettre on Aug. 26, 2016. He remains in federal custody.
According to the complaint:
On Feb.17, 2016, the TD Bank was robbed by a man, later identified as Somers, who was wearing a hooded sweatshirt, hat with red stripe, dark pants, and gloves. Somers was also holding a newspaper, which covered the bottom portion of his face. After Somers entered the bank, he allegedly handed a teller a note that read, in sum and substance, “this is a hold up,” and made similar verbal statements.
The teller handed Somers cash. Somers demanded more money and a second teller handed him additional cash. Afterwards, Somers fled the bank in a car allegedly driven by Ortiz. Later that evening, Ortiz was pulled over by law enforcement and arrested. The clothes that Somers had worn during the robbery were recovered from Ortiz’s vehicle.
The charge of bank robbery carries a maximum penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited Special Agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Hawthorne Police Department, under the direction of Chief Richard McAuliffe; the Pennsylvania State Police, under the direction of Colonel Tyree C. Blocker; and the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes with the investigation leading to the charges.
The charge and allegations contained in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Karen D. Stringer of the U.S. Attorney’s Office in Newark.
Alexandria Man Sentenced to Prison for Health Care Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – Delvin Macarthy, aka “Brian Macarthy,” 37, of Alexandria, was sentenced today to 46 months in prison for conspiracy to commit health care fraud. Macarthy was also sentenced to three years of supervised release and ordered to pay $734,458 in restitution.
Macarthy pleaded guilty on July 6. According to court documents, Macarthy established Individual Care Home Health Services, Inc. (Individual Care), which he owned together with his wife, Beatrice Macarthy. Individual Care purported to provide home health care services to individuals in the Alexandria area. In or around January 2006, Individual Care was terminated from its contract to provide home health care services to C.J., a totally disabled individual. Individual Care has not provided any care to C.J. since its termination. Nevertheless, from approximately March 2009 through March 2014, Delvin and Beatrice Macarthy, d/b/a Individual Care, submitted invoices to health care providers for $847,632 in home health care services, purportedly for patient C.J., that were never actually provided by Individual Care. Delvin Macarthy was the leader and organizer of the fraud scheme. His wife Beatrice has separately pleaded guilty to conspiracy to commit health care fraud and will be sentenced in a related case on September 23.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorney Grace L. Hill prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-151.
1 September 2016
“YGz” Gang Member Pleads Guilty to Attempted Murder and Other Crimes in Connection with Racketeering ConspiracyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that TERRANCE WILLIAMS, a/k/a “TA,” pled guilty yesterday before U.S. District Judge Valerie E. Caproni to his involvement in a racketeering conspiracy for which he participated in an attempted murder, a robbery, and crack cocaine trafficking in connection with his membership in the “Young Gunnaz” (“YGz”) violent street gang, which operated in and around several housing developments in the South Bronx.
According to the Indictment and other documents filed in the case, as well as statements made during the plea proceedings:
WILLIAMS was a member of the Bronx-based street gang known as the YGz, a leading member of a set of the YGz based in Maria Lopez Plaza in the Bronx, and committed acts of violence with other YGz gang members to further the interests of the gang. From 2005 to 2016, members and associates of the YGz enriched themselves by committing robberies and by selling drugs, such as crack cocaine, heroin, and marijuana, and committed acts of violence, including murder and attempted murder, against various people, including rival gang members, rival drug traffickers, and innocent bystanders. As part of this enterprise, members and associates of the YGz killed and attempted to kill other individuals.
As part of his involvement in the YGz gang, WILLIAMS participated in acts of violence and crack cocaine trafficking with other YGz members. First, on November 22, 2010, WILLIAMS and other YGz members participated in a shootout with members of a rival gang, the Courtlandt Avenue Crew, near East 163rd Street and Park Avenue in the Bronx. During the shootout, WILLIAMS fired gunshots at and tried to kill the rival gang members, a rival Courtlandt Avenue Crew member was shot and nearly killed, and two others were shot and injured. Second, on January 24, 2011, WILLIAMS and other YGz members robbed and assaulted a rival Courtlandt Avenue Crew associate inside a bodega on Courtlandt Avenue in the Bronx. Third, WILLIAMS sold crack cocaine with other YGz members near Maria Lopez Plaza in the Bronx during his participation in the gang.
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WILLIAMS, 24, of the Bronx, New York, pled guilty to one count of racketeering conspiracy, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. WILLIAMS will be sentenced before U.S. District Judge Valerie E. Caproni on November 29, 2016.
Mr. Bharara praised the work of ATF, the DEA, and the NYPD in the investigation of this case. He also thanked the Bronx County District Attorney’s Office for their support in this case.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Samson Enzer, James McDonald, Andrew Adams, and Dina McLeod are in charge of the prosecution.
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Winter Haven Man Pleads Guilty to Making False Statements in Mortgage LoanRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Stevie McDonald (41, Winter Haven) has pleaded guilty to making false statements in a mortgage loan application. He faces a maximum penalty of 30 years in federal prison. A sentencing date has not yet been set.
According to court documents, on November 10, 2007, McDonald entered into a contract to purchase a home in Port Richey. He then applied for a mortgage loan from Washington Mutual Bank. In the loan documents that he signed and submitted to the bank, McDonald made false statements about his income and his employment. In December 2007, during the course of the closing on the property purchase, Washington Mutual paid more than $35,000 to a woman McDonald knew and later married. This payment was purportedly a satisfaction of an existing lien on the sale property. Subsequent investigation revealed that no such lien existed. Washington Mutual Bank suffered a financial loss as a consequence of McDonald’s default on this loan.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Wilmette Investment Advisor Sentenced to More Than Six Years in Prison for Bilking Clients out of Nearly $2 MillionRead the Press Release
CHICAGO — A federal judge sentenced a Wilmette financial advisor to more than six years in prison for pocketing nearly $2 million of his clients’ money after falsely promising substantial returns on investments in Facebook stock and real estate funds.
ALAN H. GOLD, 61, obtained money from more than a dozen investors by falsely representing that their assets would be invested in high-yield stocks, real estate funds, futures contracts and other investment products. Unbeknownst to the clients, Gold never actually invested their money. Instead, he used the funds to gamble at local casinos and to cover his own personal expenses.
Gold concealed the scheme for more than seven years by providing clients with phony account statements and fake stock certificates. Many of Gold’s victims are retirees, and several of them spoke at his sentencing hearing about their financial losses.
Gold pleaded guilty in January to five counts of wire fraud. U.S. District Judge Elaine E. Bucklo imposed the 75-month sentence Wednesday afternoon in federal court in Chicago. Judge Bucklo also ordered Gold to pay restitution of more than $1.8 million.
“Alan Gold betrayed the trust of his clients – people who considered him a friend and adviser,” Assistant U.S. Attorney Sunil R. Harjani argued in the government’s sentencing memorandum. “It is important that the investment adviser community know that a term of imprisonment awaits them if they lie and steal from their clients.”
Gold’s fraud scheme began in approximately January 2008 and continued until his arrest in June 2015. The phony account statements bore the name of Gold’s company, Alan Gold & Associates, which Gold operated out of his residence in Wilmette. The account statements falsely represented that the clients’ funds were invested in such securities as Facebook stock, real estate funds and various alternative investments. When clients questioned the performance of the investments, Gold falsely represented that they were exceeding expectations.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent in Charge of the Chicago office of the Federal Bureau of Investigation. The Chicago office of the U.S. Securities & Exchange Commission, the Arlington Heights Police Department, and the Norridge Police Department assisted with the investigation.
The government is represented by Mr. Harjani.
Venezuelan National Convicted at Trial in Marriage Fraud ConspiracyRead the Press Release
Yesterday, a Venezuelan national was convicted by a federal jury for participating in a marriage fraud conspiracy.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.
Elisabet Kerese Alvarez, 39, of Doral was convicted by a federal jury of conspiring to defraud the United States and marriage fraud. Kerese Alvarez faces a statutory maximum sentence of five years in prison as to the conspiracy charge and a statutory maximum of five years in prison as to the marriage fraud conviction.
According to the court record, including evidence presented during the three-week trial, in April 2014, the defendant paid organizers Odalys Marrero and Rolando Mulet of Miami to recruit a Cuban citizen to enter into a fraudulent marriage with her for the purpose of evading the immigration laws of the United States.
The evidence at trial established that Kerese Alvarez paid thousands of dollars in cash for a fraudulent marriage, an agreement which anticipated the completion of an immigration application to be submitted to United States Citizenship and Immigration Services (USCIS) in order for Kerese Alvarez to obtain lawful permanent residency in the United States.
Ten of the co-conspirators in the fourteen-defendant indictment previously pled guilty for their participation in the fraudulent scheme. Those defendants, included Venezuelan and Colombian nationals, Katiusca Aguilar Navarro, Manuel Andres Gomez, Natacha Perera, Marianelly Auxiliado Rodriguez, and Okyvi Yoll Mesa, who each paid tens of thousands of dollars to enter into fraudulent marriages with co-conspirator Cuban nationals, Carlos Alberto Mederos Paule, Virginia De la Caridad Mederos Paule, Osvaldo Lastre Duran, Rafael Abreu Gonzalez, and Salvador Cabanas. Organizers Marrero and Mulet along with Cuban national, Javier Manejias were all convicted by a jury on July 18, 2016 and are scheduled for sentencing on September 26, 2016. Kerese Alvarez is scheduled to be sentenced on November 14, 2016.
Mr. Ferrer commended the investigative efforts of ICE-HSI. Mr. Ferrer also recognized USCIS for the significant and valuable support the agency provided the investigation. This case is being prosecuted by Assistant United States Attorney Anne P. McNamara and Special Assistant United States Attorney Michele Vigilance.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Trials End in Guilty VerdictsRead the Press Release
LAREDO, Texas – Two men have been convicted of transporting illegal aliens in two separate, unrelated cases and trials, announced U.S. Attorney Kenneth Magidson. Both verdicts were returned following one-day trials and less than an hour of deliberation.
A federal jury convicted Armando Catalino Escobar-Martinez, 19, of Guatemala, today, while another jury convicted Edgar Mariano Hernandez-Caal, 21, of Nuevo Laredo, Mexico, yesterday. Both men were found guilty of transporting illegal aliens.
According to testimony in the first case, in June 2016 Escobar-Martinez served as a guide leading other undocumented aliens across the Rio Grande River towards Laredo. Witnesses described Escobar-Martinez acting as a guide and leading the group of eight aliens, one of whom was his sister.
The defense argued that Escobar-Martinez would not have been a guide since his sister was part of the group and that they were trying to come into the U.S. together. The defense also attempted to convince the jury that he did not fit the description of a typical guide, simply because he was from Guatemala, not Mexico.
The jury did not believe those claims and found Escobar-Martinez guilty as charged.
In the other separate yet strikingly similar matter, Hernandez-Caal assisted other persons in transporting a different group of undocumented aliens across the Rio Grande River towards Laredo. The jury heard from witnesses who described Hernandez-Caal acting as a guide and leading the group of eight aliens into Texas in July 2016. Border Patrol agents ultimately discovered the eight undocumented aliens who were subsequently detained.
Hernandez-Caal testified at trial and admitted to illegally entering the U.S. However, he denied acting as a guide or having any involvement in the transportation of undocumented aliens into the through the U.S.
The jury was not convinced and found him guilty as charged.
U.S. District Judge Marina Garcia Marmolejo presided over both cases and will set sentencing hearings at a later date. At those times, each defendant will face up to 10 years in federal prison. They will remain in custody pending their hearings.
Border Patrol conducted both investigations. Assistant U.S. Attorneys Sarah Ellison and Christopher dos Santos are prosecuting the cases.
Two California Men Sentenced to Prison for Defrauding Struggling HomeownersRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that two California residents involved in an extensive mortgage loan modification scheme were sentenced today in Bridgeport federal court. U.S. District Judge Stefan R. Underhill sentenced SERJ GEUTSSOYAN, also known as “Anthony Kirk,” 34, of Santa Ana, to 52 months of imprisonment, and DANIEL SHIAU, also known as “Scott Decker,” 30, of Irvine, to 58 months of imprisonment. GEUTSSOYSAN and SHIAU also were ordered to serve three years of supervised release and pay restitution in the amount of $2,390,496.59.
According to court documents and statements made in court, Aria Maleki, GEUTSSOYAN, SHIAU and others jointly operated a series of California-based companies that falsely purported to provide home mortgage loan modifications and other consumer debt relief services to numerous homeowners in Connecticut and across the United States in exchange for upfront fees. The defendants did business, at various times, as “First Choice Financial Group, Inc.,” “First Choice Financial,” “First Choice Debt,” “Legal Modification Firm,” “National Freedom Group,” “Home Care Alliance Group,” “Home Protection Firm,” “Hardship Center,” “Network Solutions Center, Inc.,” “Premiere Financial Center,” “Premiere Financial,” “Rescue Firm,” “International Research Group LLC,” “Hardship Solutions,” “American Loan Center,” “Loan Retention Firm,” “Clear Vision Financial,” “Green Tree Financial Group,” “Green Tree Financial,” “Enigma Fund, Inc.,” “National Aid Group,” “Southern Chapman Group LLC,” “Save Point Financial,” “Best Rate Financial Solutions,” “Best Rate Financial Solution,” “Best Rate Financial,” “Best Rate Finance Group,” “Nation Star Financial,” and “Nation Star Fin Group.”
Maleki presided over the entire structure of this scheme, and GEUTSSOYAN and SHIAU were senior members of the sales team. Acting as representatives of the above-named entities, GEUTSSOYAN, SHIAU and other co-conspirators cold-called homeowners and offered to provide mortgage loan modification services to those who were having difficulty repaying their home mortgage loans. The defendants charged homeowners fees that typically ranged from approximately $2,500 to $4,300 for their services. To induce homeowners to pay these fees, the defendants falsely represented that the homeowners already had been approved for mortgage loan modifications on extremely favorable terms; the mortgage loan modifications already had been negotiated with the homeowners’ lenders; the homeowners qualified for and would receive financial assistance under various government mortgage relief programs, including the Troubled Asset Relief Program and the Home Affordable Modification Program; and if for some reason the mortgage loan modifications fell through, the homeowners would be entitled to a full refund of their fees.
In fact, the homeowners had not been preapproved for mortgage loan modifications with lenders, mortgage loan modifications had not been negotiated with the lenders, homeowners had not qualified for and did not receive any financial assistance through government mortgage relief programs, and homeowners did not receive a refund of their fees upon request. Few homeowners ever received any type of mortgage loan modification through the defendants’ companies, and few homeowners received refunds of their fees.
Participants in the scheme used pseudonyms and periodically changed their business and operating names to evade detection. The defendants also directed homeowners to mail their checks to addresses and mail boxes that the defendants and their co-conspirators had set up in states other than California.
As a result of this scheme, more than 1,000 homeowners suffered losses totaling more than $3 million.
The investigation revealed that the top tier of salesmen, including GEUTSSOYAN and SHIAU, were paid based on commission and typically earned 45 percent to 50 percent of the final fee, after $750 to $1,000 was taken by Maleki for administrative costs.
On January 21, 2016, a grand jury in New Haven returned an indictment charging Maleki, GEUTSSOYAN, SHIAU and four other California residents with conspiracy and fraud offenses related to this scheme. The defendants were arrested on January 26.
Maleki, GEUTSSOYAN and SHIAU each pleaded guilty to one count of conspiracy to commit mail and wire fraud.
On July 18, 2016, Maleki was sentenced to 112 months of imprisonment. He also forfeited approximately $350,000 that investigators seized from various bank accounts, approximately $362,000 sized from a Bitcoin account, a $100,000 cashier’s check, and a 2013 Ferrari 458 Italia.
The other four defendants also have pleaded guilty and await sentencing.
This matter is being investigated by the U.S. Department of Homeland Security – Homeland Security Investigations, U.S. Postal Inspection Service, Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), U.S. Department of Housing and Urban Development – Office of Inspector General, Federal Housing Finance Agency – Office of Inspector General, and Federal Bureau of Investigation, with assistance from the Oklahoma Attorney General’s Office.
The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Tomball Area Drug Traffickers Indicted for Distributing MethRead the Press Release
HOUSTON – A total of five Houston area drug traffickers are in custody on allegations they were involved in the large-scale distribution of methamphetamine in the Tomball and Pinehurst areas, announced U.S. Attorney Kenneth Magidson.
A federal grand jury returned a sealed indictment Aug. 18, 2016, against Tomball resident German Rodriguez, 24; Mexican national Bernabe Lopez-Olmos, 28, residing in Tomball; Carlos Garcia-Luna, 51, and Julia Cerna-Compean, 50, both legal permanent residents from Mexico residing in Magnolia; and Cristobal Martinez-Chavez, 43, a Mexican national residing in Houston.
The indictment was unsealed as to each defendant upon their arrest. Garcia-Luna and Cerna-Compean were taken into custody today and are expected to make their initial appearances before U.S. Magistrate Judge Stephen Wm. Smith tomorrow at 2:00 p.m. Authorities arrested Rodriguez and Martinez-Chavez yesterday. They appeared in court today, at which time they were ordered into custody pending a detention hearing Sept. 7, 2016, before U.S. Magistrate Judge Nancy Johnson. Lopez-Olmos was already in custody on related charges.
All are charged with conspiracy to possess with intent to distribute methamphetamine as well as with possession with intent to distribute methamphetamine. The indictment alleges that between October 2014 and December 2015 the defendants distributed more than seven kilograms of actual methamphetamine.
If convicted, each faces a mandatory minimum of 10 years and up to life in federal prison and a possible $10 million fine.
The Drug Enforcement Administration – High Intensity Drug Trafficking Area drug squad conducted the investigation along with the Texas Department of Public Safety – Methamphetamine Initiative Group, police departments in Tomball and Houston and the Montgomery County Pct. 5 Constable’s Office.
Assistant U.S. Attorney Anibal J. Alaniz is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.
St. Croix Man Sentenced to Probation, Home Detention for Facilitating Drug FelonyRead the Press Release
St. Croix, USVI –District Court Chief Judge Wilma A. Lewis on Wednesday sentenced Carl Hansen, 56, of St., Croix, to four years of probation for using a phone to facilitate a drug felony, United States Attorney Ronald W. Sharpe announced. Chief Judge Lewis also ordered Hansen to serve the first six months of his probation on home detention, pay a $100 special assessment, and perform 200 hours of community service.
On April 14, 2016, Hansen pleaded guilty to using a communication facility to facilitate a drug felony. According to the plea agreement filed with the court, on May 7, 2015, Hansen had a telephone conversation with a co-defendant to set up a purchase of controlled substances for a third party. Although Hansen did not personally sell any controlled substances, his actions facilitated the drug deal.
This case was investigated by the U.S. Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Anna A. Vlasova.
Solon Couple Sentenced to Probation for False Statements to Social Security AdministrationRead the Press Release
DAVENPORT, IA – On August 30, 2016, Donna and Randall Hanson of Solon, Iowa, were sentenced by Chief United States District Court Judge John A. Jarvey to four (4) years of probation for false statements made to the Social Security Administration, announced United States Attorney Kevin E. VanderSchel. Restitution will be determined and ordered at a later date.
On May 26, 2016, Donna and Randall Hanson pleaded guilty to making false statements. Donna Hanson pleaded guilty to an additional count of failure to disclose information to the Social Security Administration. According to the plea agreement, Donna received Social Security Disability Income benefits since January 2000. In 2005, 2010, and on April 4, 2014, when Social Security Administration did a review of her benefits, Donna reported she was not married to Randall. Randall also submitted a signed statement on April 4, 2014, indicating he was not married to Donna. However, Donna and Randall told the Veterans Administration (VA) in 2003 they were married, which impacted the amount of benefits Randall received. On August 13, 2004, the VA issued a ruling that determined Randall and Donna had been married since October 1999. Because of the false statements to Social Security Administration, Donna was overpaid by $24,695.95.
This matter was investigated by the Social Security Administration, Office of Inspector General. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Sixteen People Charged in $175,000,000 Insurance Fraud SchemeRead the Press Release
Sixteen defendants have been charged in federal court with participating in a massive insurance fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Michael J. Satz, Broward State Attorney, announced today the filing of a five-count Information.
A criminal Information charges sixteen defendants for their participation in a complex fraud scheme regarding the manufacture and distribution of compounded medications. The fraud involved material misrepresentations to health insurance providers and illegal payments to coconspirators and medical professionals, including physicians. The fraud generated in excess of $175,000,000 in criminal proceeds for the members of the criminal enterprise.
The defendants are charged with varying offenses in the Information. Clifford Carroll, 36, of Boca Raton, FL, is charged with conspiracy to commit racketeering, in violation of Title 18, United States Code, Section 1962 (Count 1). Todd Stephens, 52, of West Palm Beach, FL, Tim Clinton, 30, of Delray Beach, FL, Joel McDermott, 41, of Boca Raton FL, Michael Kenna, 30, of Delray Beach, FL, Todd Hanson, 47, of Zephyr Cove, NV, and Lisa Goldberg, 51, of Fort Lauderdale, FL, are charged with conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h) (Count 2). Christopher Mucha, 30, of Davie, FL, Ian Flaster, 34, of Delray Beach, FL, Kyle O’Brien, 28, of Boca Raton, FL, Rhett Gordon, 43, of Boca Raton, FL, William Earl, 73, of Boca Raton, FL, Frederick Thomas Giampa, 52, of Sharon, MA, Dr. Peter Williams, 56, of New Port Richey, FL, Dr. John Johnson, 54, of Hollidaysburg, PA, and Dr. Brett Nadel, 48, of Roswell, GA, are charged with conspiracy to commit mail fraud and wire fraud, in violation of Title 18, United States Code, Section 371 (Count 3). Hanson is also charged with making a materially false statement to federal law enforcement, in violation of Title 18, United States Code, Section 1001 (Count 4). Carroll is also charged with subscribing to a false federal income tax return, in violation of Title 26, United States Code, Section 7206 (Count 5).
According to the Information filed today, the defendants participated in a two-year conspiracy, which used various business entities, including Numed Care, LLC, ClinicalCorp, LLC, RX of Boca, and a compounding pharmacy located in Dallas, Texas (hereinafter referred to as “the Texas Compounding Pharmacy”'), to perpetrate a complex fraud on numerous health care insurance providers. The defendants prepared medications in bulk quantities which were alleged to be compounded medications for specific individualized patient needs. The defendants falsely represented to the health insurance providers that these medications were prepared in limited quantities for individual patients and were exempted from FDA inspection.
The health insurance providers compensated the defendants for the alleged costs of the ingredients for such medications. The defendants concealed from the health insurance providers that the defendants made illegal kickbacks to physicians for the issuance of the compounded medications. The defendants unlawfully provided the physicians with pre-printed prescription pads. In order to facilitate the fraudulent scheme, the defendants used mass marketing techniques and call centers, which made material misrepresentations in order to solicit potential patients. The defendants induced owners of failing pharmacies throughout the United States in order to perpetuate the fraud.
If convicted, the defendants face a range of statutory penalties.Carroll faces a statutory maximum term of imprisonment of 23 years and a fine of up to $500,000. Hanson faces a statutory maximum term of imprisonment of 15 years and a fine of up to the greater of $500,000 or twice the amount of the criminally derived property.Stephens, Clinton, McDermott, Kenna, and Goldberg face a statutory maximum term of imprisonment of 10 years and a fine of up to the greater of $250,000 or twice the amount of the criminally derived property. Mucha, Flaster, O’Brien, Gordon, Earl, Giampa, Williams, Johnson, and Nadel face a statutory maximum term of imprisonment of 5 years and a fine of up to $250,000.
Mr. Ferrer commended the investigative efforts of the DEA, IRS-CI, and the Broward States Attorney’s Office in connection with the investigation of this matter. The case is being prosecuted by Assistant U.S. Attorneys Paul F. Schwartz and Jeffrey N. Kaplan.
An Information is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Salamanca Chiropractor Arrested and Charged with Health Care FraudRead 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 Leo A. Kronert, Jr., aka Lee Kronert, of Frewsburg, NY, was arrested and charged by criminal complaint with health care fraud and false statements relating to health care matters. The charges carry a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Maura K. O’Donnell, who is handling the case, stated that according to the complaint, between January 2011 and December 2015, the defendant, a full time teacher at Salamanca High School and a part time chiropractor in Salamanca, NY, submitted false claims for payment to Medicare and private insurance companies seeking reimbursement for health care services allegedly provided in connection with his chiropractic practice. The claims included services allegedly performed on Kronert’s family members, claims for services the defendant did not provide, and claims for services allegedly provided while the defendant was out of town.
Kronert made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy. The criminal complaint is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent in Charge and the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott Lampert.
The fact that the defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Romanian Hacker “Guccifer” Sentenced to PrisonRead the Press Release
ALEXANDRIA, Va. – Marcel Lehel Lazar, aka “Guccifer,” 44, of Arad, Romania, a hacker who unlawfully accessed the private online accounts of at least 100 Americans and caused the public release of this information on the Internet, was sentenced today to a total of 52 months in prison for unauthorized access to a protected computer (28 months) and aggravated identity theft (24 months). Lazar was also ordered to serve three years of supervised release, forfeit online storage accounts that contained victim information, and pay restitution to his victims.
Lazar pleaded guilty on May 25. According to court documents, from at least October 2012 to January 2014, Lazar intentionally gained unauthorized access to email and social media accounts belonging to approximately 100 Americans, and he did so to unlawfully obtain his victims’ personal information and email correspondence. While some of Lazar’s targets were public figures – including a former U.S. Cabinet member and a former member of the U.S. Joint Chiefs of Staff – other targets were private citizens whom Lazar selected because they appeared in the email contact lists of other victims. In some instances, Lazar impersonated his victims online to, among other things, harass and collect information about other victims. In many instances, Lazar publically released his victims’ private email correspondence, medical and financial information, and personal photographs, without their consent. Lazar admitted that to conceal his identity from law enforcement, he used proxy servers to mask his location, and when he believed his identity had been uncovered he used an ax to smash his computer devices and cellphone. Lazar also admitted that he committed his crimes while on probation in Romania for earlier computer hacking offenses.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Bill A. Miller, Director of the U.S. Department of State’s Diplomatic Security Service (DSS); and Brian J. Ebert, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after sentencing today by U.S. District Judge James C. Cacheris.
This case was investigated by the FBI, DSS, and Secret Service, with assistance from the Justice Department’s Office of International Affairs. The case is being prosecuted by Assistant U.S. Attorneys Maya D. Song and Jay V. Prabhu, and Senior Counsel Ryan K. Dickey and Peter V. Roman of the Criminal Division’s Computer Crime and Intellectual Property Section.
The Department of Justice gratefully acknowledges the Romanian Ministry of Justice for its support in assisting the United States with this case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-213.
Romanian Hacker “Guccifer” Sentenced to 52 Months in Prison for Computer Hacking CrimesRead the Press Release
Marcel Lehel Lazar, 44, of Arad, Romania, a hacker who used the online moniker “Guccifer,” was sentenced today to 52 months in prison for unauthorized access to a protected computer and aggravated identity theft.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office, Director Bill A. Miller of the U.S. Department of State’s Diplomatic Security Service (DSS) and Special Agent in Charge Brian J. Ebert of the U.S. Secret Service’s Washington Field Office made the announcement.
Lazar pleaded guilty before U.S. District Judge James C. Cacheris of the Eastern District of Virginia on May 25, 2016.
According to admissions made in connection with his plea agreement, from at least October 2012 to January 2014, Lazar intentionally gained unauthorized access to personal email and social media accounts belonging to approximately 100 Americans, and he did so to unlawfully obtain his victims’ personal information and email correspondence. Lazar’s victims included an immediate family member of two former U.S. presidents, a former member of the U.S. Cabinet, a former member of the U.S. Joint Chiefs of Staff and a former presidential advisor, he admitted. In many instances, Lazar publically released his victims’ private email correspondence, medical and financial information and personal photographs, according to the statement of facts filed with his plea agreement.
The FBI, DSS and the Secret Service investigated the case. Senior Counsel Ryan K. Dickey and Peter V. Roman of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Maya D. Song and Jay V. Prabhu of the Eastern District of Virginia are prosecuting the case. The Criminal Division’s Office of International Affairs provided significant assistance. The Justice Department thanks the government of Romania for their assistance in this matter.
Rochester Man Sentenced in Crack Cocaine 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 Lorenzo Snow, 43, of Rochester, NY, who was convicted of conspiracy to distribute crack cocaine, was sentenced to 108 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorneys Frank T. Pimentel and George C. Burgasser, who handled the case, stated that from December 2011 until February 17, 2012, Snow, who has two prior felony drug convictions, supplied a co-conspirator, Angelina Evans, with crack cocaine. Evans then sold the cocaine out of a residence at 129 Lock Street in Lockport, NY. On numerous occasions in January and February 2012, Evans sold crack cocaine supplied by Snow from that location to an individual while being monitored by law enforcement officers. On February 17, 2012, officers executed a search warrant at the residence and found an ounce of powder cocaine, and smaller quantities of crack cocaine and marijuana.
Evans was convicted of the same offense for her role in the conspiracy and was sentenced in December 2013 to time-served.
Today’s sentencing is the result of an investigation by the Niagara County Drug Trask Force, under the direction of Niagara County Sheriff James Voutour, and Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge Charlie J. Patterson, New York Field Division.
Sentencing is scheduled for September 1, 2016, at 1:00 p.m. before Judge Arcara.
Registered Nurses, Formerly Employed by Hospice Care Provider, Indicted on Federal Prescription Opioid Conspiracy ChargesRead the Press Release
ALBUQUERQUE – Two registered nurses, formerly employed by an Albuquerque-area hospice care provider, have been indicted on federal prescription opioid conspiracy charges, announced U.S. Attorney Damon P. Martinez and Special Agent in Charge Will R. Glaspy of DEA’s El Paso Division.
Desiree Ulibarri, 30, and Annabel Debari, 35, both of Albuquerque, N.M., are charged in a two-count indictment with conspiracy to distribute oxycodone and conspiracy to acquire and obtain oxycodone by fraud and deceit. The indictment alleges that the two women, both of whom are registered nurses, committed the crimes in Bernalillo County, N.M., between April 2016 and July 2016.
Ulibarri, who was arrested on a criminal complaint on July 25, 2016, was arraigned on the indictment in federal court this morning, and entered a not guilty plea. Debari is scheduled for arraignment on Sept. 7, 2016.
According to court filings, the investigation of this case began on July 21, 2016, after Ulibarri’s employer, a hospice care provider, contacted DEA to report suspicions that Ulibarri was engaged in prescription pill diversion. The employer became suspicious because Ulibarri allegedly was documenting patients’ prescriptions in a way that made it difficult to reconcile the medications and because Ulibarri allegedly was picking up patients’ prescription pills at Federal Express instead of having the medication delivered to the patients.
On July 22, 2016, DEA agents allegedly obtained 80 10-mg oxycodone pills from Ulibarri, which she allegedly obtained from packages she retrieved from Federal Express. When DEA agents conducted a consensual search of Ulibarri’s cellular phone, they allegedly found evidence that Ulibarri had been conspiring with a co-worker, who is also a registered nurse, to illegally distribute prescription pills since April 2016. Additionally, a review of records of missing packages allegedly revealed that at least 3,870 pills, an aggregate of 42,150 mgs of oxycodone, had been diverted during the course of the conspiracy.
Ulibarri and Debari each face a statutory maximum penalty of 20 years in federal prison if found guilty of conspiracy to distribute prescription opioids. If convicted of conspiracy to acquire the prescription opioids by fraud or deceit, they each face up to four years in prison. Charges in indictments and criminal complaints are merely accusations, and criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Tactical Diversion Squad of the DEA in Albuquerque. DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
Assistant U.S. Attorneys Joel R. Meyers and Alexander M. Uballez are 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.
RGV Area Doctor Charged in Health Care Fraud and Illegal Kickback SchemeRead the Press Release
McALLEN, Texas ‐ A Rio Grande Valley area doctor has been charged in a federal indictment for his scheme to defraud Medicare and to solicit and obtain illegal kickbacks in exchange for patient referrals, announced U.S. Attorney Kenneth Magidson.
A federal grand jury in McAllen returned the indictment under seal Aug. 30, 2016. It was unsealed today upon the arrest of Dr. Pedro Garcia, 68, of Mission. He is expected to make his initial appearance before U.S. Magistrate Judge Peter Ormsby tomorrow at 10:30 a.m.
According to the charges, Garcia solicited and obtained cash in exchange for referrals of Medicare beneficiaries to prospective home health agencies. Garcia allegedly signed patient forms for patients he did not treat or provide services to and conveyed the forms to home health agencies, claiming he had treated or provided services to the patients. Some of the patients were deceased on the dates Garcia claims to have provided treatment or services, according to the indictment.
The indictment also alleges that from 2014 to 2016, Garcia submitted or caused others to submit claims to Medicare for reimbursement of home health services that were not provided. Garcia allegedly filed or caused others to file claims with Medicare knowing that the claims were false since the services were not provided. According to the indictment, Garcia illegally used the beneficiaries identifying information to perpetrate the fraud.
Garcia is charged with one count of conspiracy to commit health care fraud, four counts of health care fraud, four counts of aggravated identity theft, three counts of illegal remunerations and one count of obstruction of criminal investigations of health care offenses.
Conspiracy to commit health care fraud and each of the four counts of health care fraud carry a maximum punishment of 10 years in federal prison and a $250,000 fine, upon conviction. Illegal remunerations and obstruction of criminal investigations of health care offenses carry a maximum punishment of five years in federal prison and a $25,000 fine. For the aggravated identity theft, Garcia also faces a mandatory two‐year additional prison term which must be served consecutively to any other prison sentence imposed.
The FBI, Department of Health and Human Services‐Office of Inspector General, Texas Attorney General’s Medicaid Fraud Control Unit and the Texas Health and Human Services Commission-Office of the Inspector General conducted the investigation. Assistant U.S. Attorneys Michael Day and Andrew Swartz are prosecuting the case.
An indictment is an accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Preventing Violence in Our Schools and CommunitiesRead the Press Release
Those of us in law enforcement play an important role in reducing crime and protecting our community, and those of us in nonprofit educational work play a similar role in preventing crime by keeping kids on track to graduate. When we combine our efforts, we can make a bigger impact than we can by simply working alone.
In 2011, the U.S. Attorney’s Office for the Southern District of Florida (USAO) created the Violence Reduction Partnership (VRP) to combat violent crime, gang activity and firearms offenses that plague many of our local communities.
For the VRP, the USAO has partnered with federal, state and local law enforcement agencies, nonprofit and private entities, faith-based organizations, community leaders and educational institutions to break the cycle of violence. Now, the USAO is joining forces with City Year Miami, the Miami branch of the national, education-focused nonprofit, to add momentum to the prevention of violence in our schools and community.
Low literacy levels strongly correlate with poverty, crime and unemployment. As part of the VRP’s Pre-K Reading Program, members of the USAO staff, federal and local law enforcement officers/agents, employees of the law firm Jones Day and other community volunteers go to schools in select violence-plagued communities once a month and read to 900 pre-kindergarten and elementary school students.
Following every reading session, volunteers give the children books to take home. Since 2014, the program has given out more than 11,000 books; sadly, for many of the children, this is the first and only book they have ever owned. Now, through this new partnership, City Year Miami will be committing its entire professional staff team to adopting a number of schools for the reading program and sponsoring the books at one school.
The goals of the reading program are to instill in the students excitement for reading, provide mentorship, prevent academic failure and derail the school-to-prison pipeline. The reading program has expanded to 21 schools throughout the Southern District of Florida, including Miami-Dade, Broward, Palm Beach, and St. Lucie counties.
Partnerships such as the VRP generate tremendous power by collectively building safer, stronger, more cohesive communities. While teachers are crucial agents of change, called upon to help mold the minds and lives of our children, the task of educating, protecting and mentoring our youth cannot fall upon the shoulders of one person, organization or entity.
In this regard, partnerships like the one forged between the U.S. Attorney’s Office and City Year Miami are critical in making this a community-wide effort that will continue to have a real impact on our children and the community at large.
Within a landscape far too often riddled with violence, loss and grief, we are compelled to create positive interactions and to become powerful storytellers for a future full of possibility that many of these young children cannot yet see.
We invite you to join forces with the USAO, City Year Miami and other partners on our VRP team, so that together we can have a direct, positive impact on the lives of our local students.
Financial investment matters, but getting involved, reading to children and helping them envision a better tomorrow — that’s transformational and it’s how we begin to chip away, child by child, household by household, community by community, at the stigma of low expectations and the lack of options that often lead to future violence.
Wifredo Ferrer is U.S. Attorney for the Southern District of Florida. Keith "Fletch" Fletcher is executive director and vice president of City Year Miami.
To learn more, contact the U.S. Attorney’s Office Community Outreach Team at (305) 961-9134 [email protected]. To partner with City Year Miami, contact Keith "Fletch" Fletcher at (305) 778-5579 or [email protected]. City Year - Miami Herald - Preventing Violence In Our Schools And Commun...
Pollocksville Man Sentenced to 300 Months for Drugs, FirearmsRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court on August 30, 3016, Chief United States District Judge James C. Dever, III, sentenced JOHN ABNEY SR., 54, of Pollocksville, North Carolina, to a total term of 300 months imprisonment.
ABNEY was indicted by a federal grand jury on October 15, 2015. ABNEY pleaded guilty on May 19, 2016, to one count of distributing more than 5 kilograms of cocaine, 280 grams of crack, and a quantity of oxycodone, and one count of possessing a firearm in furtherance of drug trafficking activity.
ABNEY’s charges arose out of an investigation by federal and state law enforcement agencies. Their investigation revealed that ABNEY had been involved in narcotics trafficking going back as far as 2009. Agents followed up on recent reports of illegal narcotic sales and an “open air drug market” taking place at several residences associated with ABNEY in Pollocksville and Maysville, North Carolina. Agents also utilized confidential informants to make several controlled buys of drugs from those locations. On May 29, 2015, with the assistance of local law enforcement, agents and officers executed three search warrants simultaneously at the residences where they had previously purchased drugs from ABNEY or his associates. As a result of their search warrants, agents recovered over $187,000 in drug proceeds and two firearms (a shotgun and a semi-automatic pistol), as well as varying quantities of cocaine, crack, marijuana, and methadone.
At his sentencing hearing, Judge Dever determined that ABNEY was responsible for distributing more than 15.8 kilograms of crack cocaine from 2009 through 2015. He was sentenced to a term of 240 months imprisonment for drug distribution, and a consecutive term of 60 months for his firearm offense, resulting in a total term of imprisonment of 300 months.
The investigation of this case was conducted by the Onslow County Sheriff’s Office, Jones County Sheriff’s Office, Jacksonville Police Department, Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Leslie Cooley, and Special Assistant U.S. Attorney Jonathan Holbrook represented the government. Mr. Holbrook is a prosecutor with the Wake County District Attorney’s Office, and Wake County District Attorney Lorrin Freeman has assigned him to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Holbrook’s assignment to the United States Attorney’s Office is made possible by grants funded by the North Carolina Conference of District Attorneys.
Pakistani National Extradited and Sentenced for Attempting to Export Sensitive Technology for Pakistani MilitaryRead the Press Release
Syed Vaqar Ashraf, 71, of Lahore, Pakistan, was sentenced today to 33 months in prison by U.S. District Judge Rosemary Marquez of the District of Arizona. Ashraf previously pleaded guilty to conspiracy to export defense controlled items without a license.
Assistant Attorney General for National Security John P. Carlin and U.S. Attorney John S. Leonardo of the District of Arizona made the announcement.
Ashraf attempted to procure gyroscopes and illegally ship them to Pakistan so they could be used by the Pakistani military. In an effort to evade detection, Ashraf arranged for the gyroscopes to be purchased in the name of a shell company and caused the gyroscopes to be transshipped to Belgium. Ashraf then traveled to Belgium to inspect the gyroscopes and arrange for their final transport to Pakistan.
On Aug. 26, 2014, Ashraf was arrested by the Belgium Federal Police at the request of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) agents, who had been conducting an undercover investigation of Ashraf’s activities.
HSI and Belgium Federal Police investigated the case. Trial Attorney Elizabeth Cannon of the National Security Division and Assistant U.S. Attorneys Kristen Brook and Beverly Anderson of the District of Arizona prosecuted the case.
Painesville man indicted on child pornography chargesRead the Press Release
A Painesville man was indicted on child pornography charges, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Lauden A. Sullivan, 21, was charged with receiving, distributing, and possessing visual depictions of minors engaged in sexually explicit conduct. From January 4, 2015, through on or about January 21, 2016, Sullivan knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct. It is further alleged that on or about January 22, 2016, Sullivan possessed a CM Storm Tower computer that contained child pornography, to include at least one image involving a prepubescent minor or a minor who had not attained 12 years of age, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of 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.
This case is being prosecuted by Assistant United States Attorney Benedict S. Gullo. The case was investigated by the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
New York Man Sentenced 135 Months in Federal Prison for Child Sex TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 29-year-old Brooklyn, New York man was sentenced to 135 months (11 ½ years) in federal prison on August 31 by U.S. District Court Judge Malachy E. Mannion in Scranton, for sex trafficking of a minor.
According to United States Attorney Peter Smith, the defendant, Clinton Hayden a/k/a “Showtime,” previously pleaded guilty in March 2016, to recruiting, enticing, and transporting two minor females from Luzerne County to Brooklyn to engage in commercial sex acts.
Hayden was charged in an Information filed in December 2015, as a result of an investigation by Homeland Security Investigations and the Pennsylvania State Police.
Hayden admitted that between May 2015 and November 2015, he recruited the minor females, posted photographs of them in advertisements on a website, and transported them from Luzerne County to Brooklyn, where they engaged in prostitution at Hayden’s direction.
Judge Mannion also ordered that Hayden be placed on supervised release for 10 years following his prison sentence. Hayden must also register as a sex offender, receive sex offender treatment, and comply with the provisions of the Sex Offender Registration and Notification Act.
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."
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
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New York Man Admits Role in Conspiracy to Distribute 22 Kilograms of HeroinRead the Press Release
TRENTON, N.J. – A Bronx, New York, man today admitted driving to Clifton, New Jersey, to pick up a suitcase filled with 22 kilograms of heroin, U.S. Attorney Paul J. Fishman announced.
Emmanuel Gonzalez, 32, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with conspiracy to distribute and possess with intent to distribute a kilogram or more of heroin.
According to the documents filed in this case and statements made in court:
On Feb. 5, 2016, law enforcement observed a tractor trailer, driven by Sauro D. Estevez Figueredo, 48, of Miami, and Alberto Mora, 52, of Morriston, Florida, parked at an intersection near a store in Clifton. That afternoon, Gonzalez and Edwin Alamo Jr., 21, of Bronx, drove to the tractor trailer and left with a suitcase given to them by Mora.
Subsequent traffic stops later revealed 22 kilograms of heroin in Gonzalez and Alamo’s possession. Law enforcement also found 10 kilograms of cocaine and 10 kilograms of fentanyl still remaining at the tractor trailer.
The drug distribution conspiracy charge to which Gonzalez pleaded guilty carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison and a $10 million fine. Sentencing is set for Dec. 15, 2016. The charges against the remaining defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Meredith Williams of the OCDETF/Narcotics Unit of the Criminal Division in Newark.
U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski in Newark, with the investigation leading to today’s guilty plea.
Defense Counsel: James Murphy Esq., Princeton, New Jersey
New Orleans Woman Sentenced for Conspiracy, Theft of Federal Funds, Aggravated Identity TheftRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DOMINIEL TRINETTE JONES, age 26, of New Orleans, was sentenced today after previously pleading guilty to conspiracy to steal federal funds, theft of federal funds, and aggravated identity theft.
United States District Court Judge Eldon E. Fallon sentenced JONES to 30 months in prison, 3 years of supervised release, and a $500.00 special assessment. The court also ordered JONES to pay restitution of approximately $20,000 to Woodforest National Bank.
According to court documents, in September 2014, JONES conspired with others to unlawfully acquire two United States Treasury checks that did not belong to her. The refund checks were the property of the United States and payable to two actual taxpayers who were owed tax refunds. JONES also obtained two false Georgia driver’s licenses in the names of S.H., and J.V., the two taxpayers who were payees on the refund checks. She obtained these fake licenses for the purpose of opening bank accounts to deposit and steal the Treasury funds. Using the fake driver’s license bearing the name S.H., JONES opened a bank account at Woodforest National Bank in Covington, LA, in S.H.’s name, but deposited the check later that day at a different branch in Gulfport, MS. JONES then traveled to the Woodforest National Bank in New Orleans, LA and withdrew $10,000 from the account bearing the name S.H. using the fake driver’s license.
Additionally, JONES and a coconspirator opened an account in the names of S.V. and J.V. at Woodforest National Bank located in La Place, LA. JONES and the coconspirator presented fraudulent Georgia driver’s licenses in the names of S.V. and J.V. to open the account. The same day, JONES, and the co-conspirator used the Treasury check, payable to S.V. and J.V., as the initial deposit to open the account at Woodforest National Bank in Laplace.
U.S. Attorney Polite praised the work of the Internal Revenue Service, Criminal Investigation in investigating this matter. Assistant U. S. Attorney Sharan E. Lieberman was in charge of the prosecution.
Navajo Man from Arizona Pleads Guilty to Federal Assault ChargesRead the Press Release
ALBUQUERQUE – Charleston Wauneka, 30, an enrolled member of the Navajo Nation who resides in St. Michaels, Ariz., pled guilty today in federal court in Albuquerque, N.M., to an assault charge. Under the terms of his plea agreement, Wauneka will be sentenced to 21 months in prison followed by a term of supervised release to be determined by the court.
Wauneka was arrested in Aug. 2016, on an indictment charging him with assault resulting in serious bodily injury. The indictment alleged that Wauneka committed the crime on Aug. 15, 2013, on the Navajo Reservation in McKinley County, N.M.
During today’s proceedings, Wauneka pled guilty to the indictment and admitted that on Aug. 15, 2013, he assaulted the victim by striking and kicking her, causing her to suffer serious bodily injury. More specifically, Wauneka admitted that his criminal conduct caused the victim to suffer fractured orbital bones around her left eye and hearing loss in her left ear. A sentencing hearing has yet to be scheduled.
This case was investigated by the Window Rock office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Sarah Mease.
This case was brought as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Navajo Man Arraigned on Indictment Charging him with Assaulting a Federally Commissioned Tribal OfficerRead the Press Release
ALBUQUERQUE – Abner Joe, 54, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was arraigned today in federal court in Albuquerque, N.M., on an indictment charging him with assaulting a federal officer. Joe entered a not guilty plea to the indictment and was released pending trial to a halfway house and will be under pretrial supervision and other conditions of release.
Joe was arrested on Aug. 10, 2016, on a criminal complaint charging him with assaulting a federal officer. According to the complaint, Joe allegedly assaulted an officer of the Navajo Nation Division of Public Safety on Aug. 4, 2016, by spitting on her and threatening her with a hammer and a wooden board. At the time of the alleged assault, the tribal officer was commissioned as a Special Law Enforcement Officer by the BIA’s Office of Justice Services.
Joe was indicted on Aug. 23, 2016, and charged with assault on a federal officer with a dangerous weapon and assault involving physical contact. The indictment alleged that Joe committed the crimes on Aug. 4, 2016, on the Navajo Indian Reservation in San Juan County, N.M.
If convicted of the crimes charged in the indictment, Joe faces a maximum penalty of 20 years in federal prison. Charges in complaints and indictments are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Michael Murphy is prosecuting the case.
Monroe, N.C. Man Sentenced to 17 1/2 Years on Drug Trafficking ChargesRead the Press Release
CHARLOTTE, N.C. –U.S. District Judge Robert J. Conrad, Jr. sentenced today James Ronald Helms, Jr., 49, of Monroe, N.C., to 210 months in prison, followed by four years of supervised release on drug conspiracy charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Helms was also ordered to forfeit $47,813 in drug proceeds.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Sheriff Eddie Cathey of the Union County Sheriff’s Office and Chief J. Bryan Gilliard of the Monroe Police Department join U.S. Attorney Rose in making today’s announcement.
According to filed court documents and today’s sentencing hearing, on or about April 2015, law enforcement became aware that Helms was selling methamphetamine and cocaine from his residence located in Monroe. In or about June 2015, law enforcement executed a search warrant, seizing from Helms’ residence more than two (2) kilograms of methamphetamine with over 95% purity, over half a kilogram of cocaine, $47,813 in cash and a vehicle which contained narcotics. Court records show that law enforcement also seized from Helms’ residence 13 firearms, including two SKS assault rifles and ammunition.
In March 2016, Helms pleaded guilty to two counts of conspiracy to distribute and to possess with intent to distribute methamphetamine and cocaine. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In announcing today’s sentence, Judge Conrad stated, “The time has come to protect the community. Defendant’s drug trafficking life has caught up with him. He has done too much evil.”
The FBI, the Union County Sheriff’s Office and the Monroe Police Department handled the investigation. Assistant U.S. Attorney Sanjeev Bhasker of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Mexican National Sentenced for RacketeeringRead the Press Release
BEAUMONT, Texas – A 44-year-old Nuevo Laredo, Mexico man has been sentenced to federal prison for drug trafficking related violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Hugo Alberto Macias-Garcia pleaded guilty on May 23, 2016, to interstate transportation in aid of racketeering and was sentenced to 24 months in federal prison today by U.S. District Judge Ron Clark. Garcia was also ordered to submit to forfeiture of approximately $47,000 cash.
According to information presented in court, on July 12, 2015, Garcia was stopped by patrol officers for traffic violations while traveling westbound on IH-10 in Beaumont. A search of the vehicle revealed approximately $52,000 is cash hidden inside a tool box. The cash was separated into bundles and stored in plastic bags consistent with methods used in drug trafficking organizations. Garcia was indicted by a federal grand jury in January 2016 and charged with drug trafficking violations.
Garcia was ordered to be deported upon release from federal prison.
This case was investigated by the Beaumont Police Department and Homeland Security Investigations and was prosecuted by Assistant U.S. Attorney Robert L. Rawls.
Mesquite Man Sentenced to Statutory Maximum 10 Years in Federal Prison for Possessing Child PornographyRead the Press Release
DALLAS — A 47-year-old man from Mesquite, Texas, Jesus Paramo, was sentenced today by U.S. District Judge Jane J. Boyle to the statutory maximum of 10 years in federal prison, following his guilty plea in March 2016 to an Information charging one count of possession of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Paramo, who has been on bond since his arrest in August 2014, was remanded into custody following the sentencing hearing.
The investigation began when a detective with the Sherman Police Department, working in an undercover capacity, noticed that a particular computer with a specific IP address was making files of child pornography, many with Spanish names, available for sharing. The Sherman Police Department contacted U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) who learned that a detective in the Mesquite Police Department had downloaded files containing child pornography from the same IP address.
Law enforcement executed a search warrant at a residence in Mesquite in February 2014, however no evidence of any file-sharing computer program or child pornography was found. In fact, no one at the residence spoke Spanish.
Further investigation revealed, however, that a neighbor, Paramo, had been using this neighbor’s non-password-protected wireless router to download child pornography onto his computers. Paramo, who speaks both Spanish and English, admitted downloading at least 82 videos and 10 images of child pornography, including images and videos of prepubescent children, including infants and toddlers.
This year marks the 10th anniversary of the Project Safe Childhood (PSC) initiative. PSC is a department initiative launched in May 2006 to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Since FY 2011, the Department of Justice has filed 20,260 PSC cases against 19,111 defendants. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.
ICE HSI, the Mesquite Police Department and the Sherman Police Department investigated the case. Assistant U.S. Attorney Lori Walker was in charge of the prosecution.
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Meridian Man Sentenced to 12 Months in Prison for Oxycodone DistributionRead the Press Release
BOISE - Theodore Pena, 66, of Meridian, Idaho, was sentenced today in United States District Court to 12 months in prison and three years of supervised release for distributing oxycodone, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered that Pena forfeit $3,200 in drug proceeds. Pena pleaded guilty on November 25, 2015.
According to evidence presented at the entry of plea and at his sentencing hearing, officers learned that Pena, who was living in Meridian, was selling his prescribed oxycodone pills to others for profit. Officers investigated that on two separate occasions, Pena sold a large portion of his prescribed oxycodone to an undercover officer.
The case was investigated by the Drug Enforcement Administration and Boise City Police. The case was prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office and the Idaho High Intensity Drug Trafficking Area Board. The Idaho High Intensity Drug Trafficking Board is a collaboration of local law enforcement drug task forces and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, and Malheur County.
Medical Doctor Pleads Guilty to Health Care Fraud, Illegally Distributing DrugsRead the Press Release
PITTSBURGH - A resident of Hermitage, Pennsylvania pleaded guilty in federal court to charges of possession with intent to distribute and distribution of Tramadol, a Schedule IV controlled substance, and health care fraud, United States Attorney David J. Hickton announced today.
Dr. Anthony Rossi, 66, of Hermitage, Pennsylvania pleaded guilty to the two felony counts before United States District Judge Nora Barry Fischer.
According to information presented to the Court at the guilty plea, Dr. Rossi, a medical doctor, illegally distributed a controlled substance, Tramadol, for cash. Further, Dr. Rossi submitted false claims to Medicaid for health care services, including injections, which were never provided.
Judge Fischer scheduled sentencing for Jan. 6, 2017 at 9 a.m. The law provides for a maximum total sentence of 15 years in prison, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentence, the court released Dr. Rossi on bond.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Drug Enforcement Administration and the United States Department of Health and Human Services – Office of Inspector General conducted the investigation leading to the Information in this case.
Manhattan Man Arrested for Sales of Synthetic Cannabinoids and Snap FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, William G. Squires Jr., Special Agent-in-Charge, United States Department of Agriculture (“USDA”), Office of Inspector General, and Angel M. Melendez, the Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), New York (“HSI”), announced the arrest today of YOUSIF MOSLEH, an individual associated with two retail food stores in Manhattan, New York, who engaged in sales of synthetic cannabinoids in exchange for benefits issued by the Supplemental Nutrition Assistance Program (“SNAP”), and who conspired with others to sell other items not eligible for sale under SNAP in exchange for SNAP benefits. MOSLEH was arrested this afternoon and is expected to be presented before Magistrate Judge James C. Francis IV this afternoon.
Manhattan U.S. Attorney Preet Bharara said: “Yousif Mosleh is charged with peddling dangerous synthetic drugs in New York City neighborhoods and funding his drug sales by abusing a system created to assist the most vulnerable in our society. Thanks to the dedicated agents of the USDA and HSI, Mosleh can no longer profit from this illegal scheme.”
Special Agent-in-Charge William G. Squires Jr. stated: “The Supplemental Nutrition Assistance Program was created to provide food and nutrition to those who truly need this assistance. Those who are involved in fraud and abuse of SNAP and other USDA programs will be aggressively pursued by our office. Our joint investigation with the U.S. Immigration and Customs Enforcement, Homeland Security Investigations, and the New York City Sheriff’s Office has brought to justice an individual who sought to profit from the SNAP program through illegal schemes. The USDA Office of Inspector General will continue to dedicate resources and work with our law enforcement partners in order to protect the integrity of these programs and to prosecute those who commit fraud.”
Special Agent in Charge Angel M. Melendez said: “SNAP was created to help low income families put food on their tables. Instead, Mosleh allegedly used SNAP to feed drug addicts a hazardous synthetic narcotic. K2 poses a public safety risk, especially for our teens and young adults. Mosleh’s arrest is a testament to HSI’s commitment to keep illegal drugs off our streets.”
The following allegations are based on the unsealed Complaint filed today in Manhattan federal court[1]:
Congress established the Federal Food Stamp Program in 1977 for the purpose of alleviating hunger and malnutrition. In 2008, the program was renamed the Supplemental Nutrition Assistance Program (“SNAP” or “the Program”). The Program uses tax dollars to subsidize low-income households, helping low-income individuals and families to maintain more nutritious diets by increasing the food purchasing power of eligible households. According to USDA regulations, items such as cigarettes, hot foods for immediate consumption, and controlled substances, among other items, are ineligible for purchase with SNAP benefits (“Ineligible Items”).
MOSLEH’s Knowledge of and Participation in the SNAP Program
According to USDA records, a deli located on Lexington Avenue East 124th Street and East 125th Street in Manhattan, New York (“Deli-1”), received a license to accept and redeem SNAP benefits in December 2007. MOSLEH, the defendant, frequently works behind the counter at Deli-1, operating the cash register and the electronic benefits transfer (EBT) terminal.
In the immediate vicinity of Deli-1 is another deli (“Deli-2”), owned and operated by MOSLEH. According to USDA records, MOSLEH submitted an application for a license for Deli-2 to accept and redeem SNAP benefits in December 2013, and Deli-2 received such license in June 2014.
MOSLEH’s Sales of K2 for SNAP Benefits
“K2” is a street name applied to a synthetic cannabinoid, in green leafy form, that is intended to mimic the effects of marijuana. K2 frequently contains synthetic cannabinoids AB-CHMINACA and XLR-11. XLR-11 was classified as a Schedule I controlled substance on May 16, 2013, and AB-CHMINACA was classified as a Schedule I controlled substance on January 30, 2015.
As part of this investigation, the USDA has worked with two cooperating sources (“CS-1” and “CS-2”), who assisted the USDA in making controlled purchases of K2 and other Ineligible Items, which were video recorded covertly. Between June 29, 2015, and July 30, 2015, CS-1, at the direction of law enforcement, used SNAP benefits at Deli-1 to purchase multiple packages of synthetic cannabinoids directly from MOSLEH. These packages contained XLR-11 and AB-CHMINACA, based on laboratory testing.
Additionally, between July 23, 2015, and July 30, 2015, law enforcement recovered more than 2,000 packages of what appeared to be K2 from Deli-1.
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MOSLEH, 26, of Manhattan, is charged with two counts of distribution and possession with intent to distribute a controlled substance, each carrying a maximum sentence of 20 years in prison; and one count of conspiracy to violate the statutes and regulations governing the Supplemental Nutrition Assistance Program, which carries a maximum sentence of 5 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 defendant will be determined by the judge.
Mr. Bharara praised the investigative work of the USDA and HSI. Mr. Bharara also thanked the New York City Sheriff’s Office, U.S. Immigration and Customs Enforcement, and the New York City Police Department, for their critical support and cooperation throughout the investigation.
The prosecution is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorney Amanda L. Houle is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[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.
Man Pleads Guilty to Armed Bank Robberies in Columbus and SpringfieldRead the Press Release
COLUMBUS, Ohio – Lawrence W. Bell, Jr., 30, of Columbus, pleaded guilty in U.S. District Court here today to robbing two financial institutions two weeks apart in 2015 and brandishing a pistol during each robbery.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Brad Earman, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, Reynoldsburg Police Chief Jim O’Neill, and Springfield Police Chief Stephen P. Moody, announced the guilty pleas entered today before Chief U.S. District Judge Edmund A. Sargus, Jr.
Bell pleaded guilty to two counts of bank robbery and two counts of brandishing a firearm in relation to a crime of violence. The plea agreement includes a recommended sentence of 288 months in prison. Judge Sargus will schedule a date for sentencing.
Testimony presented during the plea hearing attested that Bell robbed the First Service Credit Union on East Main Street in Reynoldsburg on June 17, 2015 and brandished a pistol at tellers. On June 30, 2015, Bell robbed the Fifth Third Bank on South Tuttle Road in Springfield.
Bell was arrested in South Carolina on January 7, 2016 and has been in custody since his arrest.
Acting U.S. Attorney Glassman commended the investigation of this case by law enforcement, and Assistant U.S. Attorneys Timothy Prichard and David Bosley, who are representing the U.S. in this case.
Luling Woman Sentenced to Three Years of Probation for Filing False Tax ReturnRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KALI IRONS, age 39, of Luling, LA, was sentenced today by United States District Court Judge Eldon Fallon to three years of probation, which is to include six months of home confinement, after she pled guilty to one count of filing a false tax return.
According to court records, IRONS, a self-employed tax preparer, under-reported her taxable income for 2009 and 2010 to the IRS. This resulted in a tax loss to the United States in the amount of $88,203.00. In addition to probation and home confinement, IRONS was ordered to pay a $100 mandatory special assessment and full restitution to the Internal Revenue Service.
Jerome R. McDuffie, Special Agent in Charge of Internal Revenue Service Criminal Investigation, stated: "Special Agents of IRS Criminal Investigation will continue to aggressively work with the United States Attorney's Office to protect taxpayers’ interests and thoroughly investigate allegations of tax fraud. Today’s sentence of Ms. Irons is a reminder that those who file false tax returns will be investigated and prosecuted."
U.S. Attorney Polite praised the work of the Department of the Treasury/Internal Revenue Service Criminal Investigation team. Assistant United States Attorney Edward J. Rivera was in charge of the prosecution.