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31 August 2016
Michigan man sentenced for heroin distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Timothy Culver, 26, of Eastpointe, Michigan, was sentenced today to 60 months in prison for distributing heroin, United States Attorney William J. Ihlenfeld, II, announced.
Culver previously admitted to the sale of heroin in November of 2015 in Monongalia County.
Assistant United States Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crime Task Force investigated.
U.S. District Judge Irene M. Keeley presided.
Miami Student Sentenced for Cyberstalking on Facebook and InstagramRead the Press Release
A Miami student was sentenced yesterday for cyberstalking on Facebook and Instagram.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Kassandra Cruz, 23, of Miami, Florida, was sentenced by U.S. District Judge Frederico A. Moreno to 22 months in prison, followed by three years of supervised release, a $100 special assessment, and $2,178.32 in restitution, stemming from her conviction on one count of cyberstalking, in violation of Title 18, United States Code, Section 2261(A)(2)(B).
According to court documents, beginning in June 2015, victim “S.B.” received a “friend” request from Cruz on her Instagram and Facebook accounts. In an effort to gain “S.B.’s” friendship, Cruz created a false persona on her Instagram account wherein she portrayed herself as a male who was an active duty U.S. Marine. Under that ruse, “S.B.” accepted the friend request.
From late June 2015 until September 2015, Cruz, posing as Giovanni, “liked” and commented on pictures “S.B.” posted on both her Instagram and Facebook accounts. However, when “S.B.” noticed that Cruz had begun “following” and “liking” all of her friends pages and posts, she became suspicious and “blocked” and “unfollowed” Cruz from her social media accounts.
As a result, Cruz threatened that “S.B.” would face repercussions at her job and with her family if she did not comply, and specifically threatened to expose “S.B.’s” past via social media. The threats to “S.B.” persisted from Cruz on social media and later via text messaging, and Cruz ultimately demanded on multiple occasions $100,000 in exchange for no further contact, adding that she “knew where “S.B.’s family lived and they should watch their backs because someone would be heading to…to deal with them.” In total, “S.B.” received over 900 unwanted calls and text messages since the beginning of 2016, and the extortionate and threatening messages continued until late April 2016. Ultimately, Cruz was arrested and taken into custody during a pre-arranged meeting in Miami.
Mr. Ferrer commended the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorneys Jodi L. Anton and Francis Viamontes.
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.
Miami Resident Sentenced to 77 Months in Prison for Participating in A Conspiracy to Burglarize A Kentucky Cigarette WarehouseRead the Press Release
Ordered to pay $1,486,164.45 in restitution for theft of cigarettes from Leitchfield, Kentucky warehouse
Owensboro, KY – A Miami resident from Cuba, was sentenced this week in United States District Court by Chief Judge Joseph H. McKinley Jr., to 77 months in prison and ordered to pay restitution of $1,486,164.45 - for conspiracy and theft charges stemming from the defendant’s participation in a warehouse burglary in Leitchfield, Kentucky, announced United States Attorney John E. Kuhn, Jr.
Amuary Villa, 41, admitted to his role in stealing nearly $1.5 million in cigarettes from the Coremark Cigarette Warehouse in Leitchfield, Kentucky, in March 2011, and that he and others possessed the stolen cigarettes (which constitute an interstate and foreign shipment of property valued at over $1,000) with the intent to convert the property to their own use.
During the theft, Villa and his co-conspirators gained entry into the warehouse through the roof, disabled the alarm system, and loaded the stolen goods into a stolen tractor trailer. Specifically, between March 18, 2011, to March 20, 2011, defendant Camilo Rodriguez-Hernandez allegedly rented three hotel rooms in Elizabethtown, Kentucky, where the co-conspirators, who traveled to Kentucky from Miami, Florida, resided during the burglary and theft. Between March 19, 2011, and March 20, 2011, Amuary Villa, Ivan Romero (a/k/a El Negro), Amed Villa (charged separately), and other co-conspirators unloaded a stolen tractor trailer and loaded it with cigarettes. Defendant Romero admitted to providing transportation for the stolen cigarettes and driving them to the New Jersey/New York area. Defendant Villa admitted to “casing” the warehouse location, cutting a hole in the warehouse roof, then entering the warehouse and disabling the alarm system.
Amuary Villa will serve the 77 month prison term consecutive to a 140 month sentence from the Southern District of Florida and the District of Connecticut, for his role in the theft of approximately $90 million in pharmaceuticals from the Eli Lilly Company warehouse and storage facility in Enfield, Connecticut.
Romero, also a legal permanent resident from Cuba who last resided in Miami, will finish serving a six-year state sentence from Florida, before being transferred to federal custody to serve 57 months. Ahmed Villa, the defendant’s brother, pleaded guilty in the District of Connecticut to charges stemming from the $90 million in pharmaceuticals stolen from the Eli Lilly Company warehouse and storage facility in Enfield, Conn., and several other warehouse thefts including the Coremark Cigarette Warehouse in Leitchfield. Co-defendant Camillo Rodriguez Hernandez has a trial pending in the Western District of Kentucky. Restitution will be paid to Coremark and the insurance company for Coremark.
This case is being prosecuted by Assistant United States Attorney Joshua Judd and the investigation of the Kentucky theft is being led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) with assistance from the U.S. Drug Enforcement Administration (DEA), Leitchfield and Elizabethtown Police Departments, and New Jersey and Kentucky State Police Departments.
Mexican Nationals Plead Guilty to Federal Charges Arising Out of Methamphetamine Trafficking on Navajo ReservationRead the Press Release
ALBUQUERQUE – Mexican nationals, Miguel Rangel Arce, 36, and Rogelio Santiago Quiroa-Valdez, 25, pled guilty yesterday in federal court in Albuquerque, N.M., to methamphetamine trafficking charges. Their co-defendant, Luis Rangel Arce, 44, also a Mexican national, entered a guilty plea in the case last week.
The defendants were amongst the eight San Juan County residents charged with federal narcotics trafficking offenses as the result of a multi-agency investigation led by Homeland Security Investigations (HSI) and the HIDTA Region II Narcotics Task Force into methamphetamine trafficking on the Navajo Indian Reservation in northwestern New Mexico. The three men were arrested in May 2016 during a law enforcement operation that included the execution of two search warrants at residences in Shiprock and Kirtland, N.M.
The investigation leading to the federal charges was initiated in response to an increase in methamphetamine trafficking on the Navajo Indian Reservation in the Shiprock area, and was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program. This Department of Justice program combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. The investigation identified eight defendants, who were charged in five indictments, through a series of methamphetamine purchases by undercover law enforcement officers. Law enforcement authorities seized more than two and a half pounds of methamphetamine, ten firearms, approximately $1,600 in cash and a vehicle during the operation.
Miguel Rangel Arce, Quiroa-Valdez and Luis Rangel Arce were charged with methamphetamine trafficking charges in a seven-count indictment filed in April 2016. The indictment charged the three men with participating in a methamphetamine trafficking conspiracy between Nov. 2015 and March 2016, and with distributing methamphetamine on six occasions between Jan. 2016 and March 2016. According to the indictment, the defendants committed the crimes in San Juan County, N.M.
During yesterday’s proceedings, Miguel Rangel Arce pled guilty to participating in a methamphetamine trafficking conspiracy and admitted that from Nov. 24, 2015 through March 17, 2016, he conspired to distribute between 500 grams and 1.5 kilograms of methamphetamine to an undercover officer. At sentencing, Miguel Rangel Arce faces a statutory minimum penalty of ten years and a maximum of life in prison.
Quiroa-Valdez pled guilty to distribution of methamphetamine and admitted that on Feb. 24, 2016, he distributed 85.5 grams of methamphetamine to an undercover officer. At sentencing Quiroa-Valdez faces a statutory minimum penalty of five years and a maximum of 40 years in prison.
Luis Rangel Arce pled guilty on Aug. 16, 2016, to distributing methamphetamine on Jan. 11 and 14, 2016. In entering the guilty plea, Luis Rangel Arce admitted distributing 63.17 grams of methamphetamine to an undercover officer on Jan. 11, 2016, and distributing 55.3 grams of methamphetamine to an undercover officer on Jan. 14, 2016. At sentencing, Luis Rangel Arce faces a statutory minimum penalty of five years and a maximum of 40 years in prison.
The three defendants remain in custody pending sentencing hearings, which have yet to be scheduled. They will be deported after completing their prison sentences.
The other five defendants were charged with methamphetamine trafficking charges in four other indictments. One has entered a guilty plea and is awaiting sentencing. The other four defendants have entered not guilty pleas and are awaiting trial. Charges in indictments are merely accusations and defendants are presumed innocent unless convicted in a court of law.
These cases were investigated by HSI’s Albuquerque office and the HIDTA Region II Narcotics Task Force with assistance from the Farmington office of the FBI, U.S. Marshals Service, and BIA’s Division of Drug Enforcement, Shiprock office of the Navajo Nation Division of Public Safety, New Mexico State Police, San Juan County Sheriff’s Office, Farmington Police Department, and New Mexico National Guard. Assistant U.S. Attorney Elaine Y. Ramirez is prosecuting the cases.
The HIDTA Region II Narcotics Task Force is comprised of officers and investigators from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department, Aztec Police Department and HSI Albuquerque, and is part of the High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Meriden Man Admits to Engaging in Sexual Acts with Minors, Producing Child PornographyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARK W. IRVIN, 64, of Meriden, waived his right to indictment and pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of production of child pornography.
According to court documents and statements made in court, on multiple occasions between approximately 2012 and August 2015, IRVIN engaged in sexual acts with two males who were under the age of 18. IRVIN installed and operated a video camera and a digital video recording device at his residence to record the sexual activity.
On September 8, 2015, law enforcement officers conducted a search of IRVIN’s residence and seized several computers, hard drives, electronic storage media and the digital video recording device.
IRVIN has been detained since his arrest on September 18, 2015.
Judge Underhill scheduled sentencing for November 23, 2016, at which time IRVIN faces a mandatory minimum term of imprisonment of 15 years, a maximum term of imprisonment of 30 years and a fine of up to $250,000.
IRVIN also is charged with related state offenses.
This matter is being investigated by the Meriden Police Department, Homeland Security Investigations and Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Maryland MS-13 Member Pleads Guilty to Federal Racketeering Conspiracy, Attempted Murder in Aid of Racketeering, and Discharging a Firearm During a Crime of ViolenceRead the Press Release
Greenbelt, Maryland –Francisco Zamora-Flores, age 25, of Silver Spring, Maryland, pleaded guilty today to conspiracy to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13, attempted murder in aid of racketeering, and using, carrying, and discharging a firearm during a crime of violence.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Hank Stawinski of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; and Chief Douglas Holland of the Hyattsville Police Department.
MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County, Montgomery County, and Frederick County, Maryland. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
According to his plea agreement and court documents, from about 2014, Zamora-Flores was a member of the Normandie Clique of MS-13. MS-13 members committed crimes to further the interests of the gang, including murder, assault, robbery, extortion by threat of violence, obstruction of justice, witness tampering, and witness retaliation.
Zamora-Flores admitted that on July 30, 2014, he and four other members of MS-13 and the Normandie Clique were advised that three rival gang members had harassed and tried to steal the bike of a person who was a friend of MS-13. One of the co-conspirators drove Zamora-Flores and the other MS-13 members to the area of 30th Avenue in Hyattsville, where they saw three individuals walking north on the street. Zamora-Flores admitted that he and another MS-13 member shot two of the individuals. One victim was shot seven times, with wounds to his upper torso, right arm, and face. The other victim had a gunshot wound to his right side.
Eleven .380 caliber shell casings fired from two different handguns were collected at the scene of the shooting. A firearms examiner determined that five of the shell casings were fired from the same gun used at other crime scenes including: murders that occurred on November 11, 2012 and February 28, 2013, in the Hyattsville area; an attempted murder that occurred on that on March 28, 2014, in Laurel, Maryland; and a murder that occurred on November 30, 2013 in Frederick, Maryland. The other six shell casings were fired from another .380 caliber firearm that was recovered in Montgomery County, Maryland, on October 5, 2014.
Zamora-Flores faces a maximum sentence of life in prison for the racketeering conspiracy; a maximum of 10 years in prison for attempted murder in aid of racketeering; and a mandatory minimum of 10 years in prison, consecutive to any other sentence imposed, and up to life in prison for discharging a firearm during a crime of violence. U.S. District Judge Peter J. Messitte has scheduled sentencing for December 9, 2016, at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Prince George’s County Police Department, Hyattsville Police Department, and Prince George’s County State’s Attorney’s Office and its Strategic Investigations Unit, for their work in the investigation. Mr. Rosenstein also recognized the Prince George’s County Sheriff’s Office, Prince George’s County Department of Corrections, and HSI Baltimore’s Operation Community Shield Task Force for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Lindsay Eyler Kaplan, who are prosecuting this case.
Man Involved in Shooting Death of His Father Sentenced to PrisonRead the Press Release
An Iowa man who illegally possessed firearms was sentenced today to more than three years in federal prison.
Dale Edward White, 25, from Nashua, Iowa, received the prison term after a April 27, 2016, guilty plea to possession of a firearm and ammunition as a prohibited person. White was prohibited from possessing firearms and ammunition because of his illegal drug use.
Evidence during the proceedings showed that on January 2, 2016, police responded to White’s residence after receiving a 911 call regarding a shooting. Prior to the call, White and his father were handling a .22 caliber rifle in the living room of the residence they shared. The firearm was loaded with .22 caliber ammunition. During the handling of the firearm, the firearm accidently discharged, striking White’s father who eventually passed away as a result of this injury.
During the investigation, police seized 49 firearms from White’s residence. These firearms included handguns, shotguns, and rifles. Police also seized evidence consistent with drug use. At the time he possessed these firearms, White was a user of methamphetamine and marijuana.
White was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. White was sentenced to 47 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
White is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Iowa Division of Criminal Investigation, the Nashua Police Department, the Chickasaw County Sheriff’s Office, and the Iowa State Patrol.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-cr-2013.
Follow us on Twitter @USAO_NDIA.
Louisville Felon Convicted at Trial for His Role in A String of Armed Robberies in Metro LouisvilleRead the Press Release
Federal prosecution resulted from “Project Recoil”
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr. announced the conviction yesterday, of a violent felon for his role in a string of armed robberies in Metro Louisville. The federal charges stemmed from “Project Recoil,” the on-going partnership of multiple Jefferson County, Kentucky law enforcement agencies, developed by the U.S. Attorney’s Office for the Western District of Kentucky, to maximize penalties for the most violent offenders and to reduce violent crime in our community.
“This conviction will ensure that Jescell Whittle, a violent offender, who threatened businesses and customers with deadly force, will be off our streets and behind bars for a long time,” Stated U.S. Attorney John Kuhn. “Project Recoil, our law enforcement partnership, is working to identify and successfully prosecute the most dangerous offenders in our community and this conviction is an example of how well our partnership is working.”
Jescell Whittle was convicted of the obstruction of interstate commerce through robbery of two businesses, and using a firearm in connection with the two robberies following a six-day trial before Chief Judge Joseph H. McKinley, Jr. Sentencing is scheduled for December 6, 2016, in Louisville.
This successful prosecution has resulted in the sentencing of four co-defendants, to lengthy prison sentences, for their roles in the armed robberies of two Cricket Wirelesses and three convenience stores in Metro Louisville.
Co-defendants James Gore, Jr. was sentenced to serve 72 months in prison followed by a three year period of supervised release, Tony Trumbo, Jr. was sentenced to serve a combined 255 months in prison followed by a three year period of supervised release for their roles in the armed robberies of three businesses located in Jefferson County, Kentucky. Both were sentenced on July 9, 2015.
Gore previously pleaded guilty to aiding and abetting the obstruction of interstate commerce through robbery of two businesses. Trumbo previously pleaded guilty to aiding and abetting the obstruction of interstate commerce through robbery, attempted robbery of three businesses, and aiding and abetting the discharge of a firearm during a robbery.
According to the plea agreement, Gore admitted to robbing a Thorntons, with several other individuals, located at 4516 Poplar Level Road on October 30, 2012, and to robbing a Speedway, with several other individuals, located on 3030 Taylor Boulevard on October 31, 2012. Surveillance video taken from the Thorntons robbery shows Gore brandishing two firearms during the robbery.
In a separate plea agreement, defendant Trumbo admitted to attempting to rob the Cricket Wireless store, located at 3125 W. Broadway, along with other individuals, on October 23, 2012. Surveillance video taken from the store shows Trumbo along with an accomplice who was brandishing a firearm, attempting to rob the store. Trumbo also admitted to being one of several people to rob the Thorntons located at 4516 Poplar Level Road, on October 30, 2012. Trumbo further admitted to being one of several people to rob the Speedway located at 3030 Taylor Boulevard on October 31, 2012. During the course of that robbery, Whittle shot a Speedway customer in the back causing serious bodily injury.
Co-defendant Dahntel Newsome pleaded guilty to multiple charges on September 9, 2015, and was sentenced to 243 months in prison. Newsome admitted to being the getaway driver during the robbery by his co-defendants of the Crickett Wireless store on Cane Run Road. He further admitted to being the getaway driver during the robbery of the Cricket Wireless Store on West Broadway in Louisville, and admitted to using a handgun and threatening to shoot the clerk in the foot during the robbery of the JC Cigarette Outlet located on Crums Lane and driving the getaway vehicle.
This case is being prosecuted by Assistant United States Attorneys A. Spencer McKiness and Rob Bonar, and was investigated by the Louisville Metro Police Department.
Lewis County Couple Plead Guilty to Social Security Fraud ChargesRead the Press Release
St. Louis, MO – Michael Allen Clow, Maywood, MO, pled guilty to multiple charges involving his concealment of his employment while collecting disability payments. From 2001 through 2012, Clow received approximately $273,634 in Social Security Administration (SSA) disability insurance benefits as a result of this illegal scheme.
According to court documents, in 1999, Michael Allen Clow submitted an application for disability insurance benefits with the Social Security Administration (SSA) stating that he was unable to work due to chronic low back pain. In his application he agreed to notify the SSA if his medical condition improved so that he could work or if he went to work as an employee or a self-employed person. He began receiving benefits that year. During 2001 Clow began working with his father building homes. In 2002, he and his wife, Laura Clow, went into business together and started a construction business called C & M Construction. From 2002 to 2012 Clow worked for C & M Construction providing manual labor. During this time he filed reports to SSA claiming he was still unable to work.
While Michael Clow received payments from SSA, his wife, Laura Clow, assisted in the fraud by placing the business in her name, and falsely claimed that he was disabled and unable to bend over, do house and yard work and general daily activities.
Michael Clow pled guilty to one count of conspiracy to commit theft of government property, one count of concealment and two counts of making false statements to the Social Security Administration. He appeared before United States District Judge Catherine D. Perry. Sentencing has been set for December 9, 2016.
Laura Clow pled guilty to one count of conspiracy to commit theft of government property before United States Magistrate Judge John Bodenhausen. Her sentencing has also been set for December 9th.
The conspiracy charge carries a maximum penalty of one year in prison and/or fines up to $100,000. Each of the other charges carries a maximum of five years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Social Security Administration-Office of Inspector General. Assistant United States Attorney Anthony Franks is handling the case for the U.S. Attorney’s Office.
Leader of Heroin Conspiracy Sentenced to over 12 Years in PrisonRead the Press Release
PORTLAND, Ore. – On Tuesday, August 30, 2016, U.S. District Judge Robert E. Jones sentenced Christopher Guillen-Robles to 151 months in prison followed by five years of supervised release, and entered a money judgment of $150,000 against the defendant. The sentencing followed the defendant’s earlier guilty pleas to conspiracy to distribute and possess with intent to distribute heroin and conspiracy to commit money laundering.
Agents of the U.S. Drug Enforcement Administration (DEA) and other partner agencies arrested Guillen-Robles and over 20 co-defendants in February 2015 after an investigation which began in mid-2014. Through a complex investigation, involving a lengthy set of wiretaps, agents determined that Guillen-Robles led a drug trafficking group that was importing black tar heroin from the state of Nayarit in Mexico to the Portland area and then distributing it to other cells operating in Oregon. The group was also involved in significant money laundering through bulk cash smuggling, wire transfers, and bank deposits, with the cash proceeds of heroin distribution eventually going to Mexico. The investigation involved several large seizures of heroin and cash.
U.S. Attorney Billy J. Williams said, “This case demonstrates the sophistication and means by which Nayarit-based enterprises have flooded the Portland area with black tar heroin and the immense monetary profits involved in their illegal drug activity. It comes at a time when Oregon and the rest of the United States are experiencing an epidemic of opiate addiction, abuse, and overdose deaths. The sentence recognizes the seriousness of this activity and the importance of the investigation and prosecution.”
The investigation was led by DEA Portland with significant contributions made by the drug teams of the Portland Police Bureau Drugs and Vice Division, Clackamas County Interagency Task Force, Westside Interagency Narcotics Team, and U.S. Department of Homeland Security.
The case was prosecuted by Assistant U.S. Attorneys Thomas H. Edmonds and Steven T. Mygrant.
Kalamazoo Man, Kevonte McNeely, Sentenced to Five Years in Federal Prison for Possessing A FirearmRead the Press Release
McNeely had one of the 21 firearms stolen from Outpost Guns, in Sturgis, Michigan, on November 12, 2015.
GRAND RAPIDS, MICHIGAN — Kevonte Derome McNeely, age 24, of Kalamazoo, Michigan, was sentenced to five years in federal prison following his conviction for unlawful possession of a firearm as a felon, U.S. Attorney Patrick A. Miles, Jr., announced. In addition to the 60-month prison term, U.S. District Court Chief Judge Robert J. Jonker imposed a fine of $1,200 and a three-year term of supervised release, which will begin when McNeely is released from prison.
McNeely pled guilty on April 19, 2016, to knowingly possessing a firearm as a felon on November 16, 2015. The firearm McNeely had in his possession was an assault rifle, similar to an AK-47, which was stolen from Outpost Guns, in Sturgis, Michigan, on November 12, 2015. In total, 21 firearms were stolen that day from the store. A joint investigation involving the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Kalamazoo Department of Public Safety, and the Sturgis Police Department revealed that, within a few days of the theft, the stolen firearms were transported from Sturgis to Kalamazoo and sold to multiple buyers. Five of the 21 stolen firearms have been recovered by law enforcement. The investigation is ongoing with respect to other subjects involved in trafficking or possessing the stolen firearms.
Kevonte McNeely is the first to be sentenced of six defendants who have been charged federally, to date, in connection with the firearms stolen from Outpost Guns. Jorel Gefferard, of Sturgis, was indicted in a separate case that charges him with the theft of the firearms, unlawful possession of one or more firearms as a felon, and possessing, concealing, and storing the stolen firearms following the Outpost Guns theft. Kevonte McNeely’s brother, Keondre McNeely, also of Kalamazoo, was indicted in the same case as Gefferard, along with a third individual, Roscoe Manns, of Sturgis, for receiving, possessing, concealing, and storing the stolen firearms following the theft. Keondre McNeely is considered a fugitive and remains at large; the District Court issued a warrant for his arrest. Two other Kalamazoo men, Ronald Eugene Dafney, and Kenneth Parnell Williams, were indicted in separate cases for unlawfully possessing as felons one or more of the firearms that were among the 21 stolen from Outpost Guns. All of these other cases remain pending. The charges in an indictment are merely accusations, and the defendants are presumed innocent until and unless proven guilty in a court of law.
"This case demonstrates how quickly a significant number of firearms can be stolen, moved, and sold, often landing in the hands of people who cannot legally purchase firearms because of prior felony convictions, thereby placing members of our communities at risk," said U.S. Attorney Patrick Miles. The U.S. Attorney’s Office works closely with the ATF to investigate, identify, and prosecute individuals involved in trafficking stolen firearms.
"Thefts from Federal Firearm Licensees will always be one of our highest priorities," said ATF Special Agent in Charge Robin Shoemaker. "Firearms in the hands of those who should not have them presents a public safety issue, and threatens the safety of our communities. ATF will continue to work with our partners to aggressively follow the gun to recover those firearms and put those individuals behind bars."
Assistant U.S. Attorney Kate Zell prosecuted the case.
END
KC Man Indicted for Assaulting Mail Carrier with a FirearmRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was indicted by a federal grand jury today for assaulting a mail carrier with a firearm.
Timothy LaBlance, 52, of Kansas City, was charged in an indictment returned today by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that LaBlance used a firearm to assault a mail carrier with the U.S. Postal Service on Oct. 10, 2015, while the mail carrier was engaged in the performance of his duties.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Matt Moeder. It was investigated by the U.S. Postal Inspectors Service.
Justice Department Sues to Block Deere’s Acquisition of Precision PlantingRead the Press Release
Acquisition Would Eliminate Deere’s Only Effective Competitor in High-Speed Precision Planting Systems Market
The Department of Justice filed a civil antitrust lawsuit today seeking to block Deere & Company’s proposed acquisition of Precision Planting LLC from Monsanto Company in order to preserve competition in the market for high-speed precision planting systems in the United States.
The Antitrust Division’s lawsuit alleges that the transaction would combine the only two significant U.S. providers of high-speed precision planting systems – technology that is designed to allow farmers to plant crops accurately at higher speeds. The acquisition would deny farmers throughout the country the benefits of competition that has spurred innovation, improved quality and lowered prices. The department filed its lawsuit in the U.S. District Court for the Northern District of Illinois.
“High-speed precision planting technology holds out the promise of improved yields for American farmers by enabling them to plant crops more accurately at higher speeds,” said Acting Assistant Attorney General Renata Hesse of the Justice Department’s Antitrust Division. “Precision Planting has been a key innovator in high-speed precision planting and Deere’s only significant competitor in developing and selling these technologies. If this deal were allowed to proceed, Deere would dominate the market for high-speed precision planting systems and be able to raise prices and slow innovation at the expense of American farmers who rely on these systems.”
High-speed precision planting is an innovative technology that enables farmers to plant corn, soybeans and other row crops at up to twice the speed of a conventional planter without sacrificing accuracy. Planting at higher speeds can be highly valuable to farmers, many of whom have a limited window each year to plant their crops to achieve the highest crop yields. As a result, Deere and Precision Planting view high-speed precision planting as “revolutionary technology” that represents a “True Gamechanger for Agriculture” and expect it to become the industry standard in the coming years.
According to the department’s complaint, Deere and Precision Planting are the only two effective competitors in high-speed precision planting, conservatively accounting for at least 86 percent of the market. Deere and Precision Planting both introduced their respective high-speed planting systems in 2014, after years of research and development. The complaint details how the intense head-to-head competition between Deere and Precision Planting since that time has directly benefitted farmers through aggressive discounts and promotions, lower prices and innovative product offerings. The complaint alleges that Deere’s proposed acquisition of the company it has described as its “number one competitor” would allow it to control nearly every method through which American farmers can acquire effective high-speed precision planting systems and provide it with the ability to set prices, output, quality and product features without the constraints of market competition.
Deere & Company, a Delaware corporation headquartered in Moline, Illinois, is the largest manufacturer of planting equipment in the United States, including its ExactEmerge high-speed precision planting system. In 2015, Deere’s U.S. sales for planter-related equipment were approximately $900 million.
Precision Planting LLC is a Delaware limited liability company headquartered in Tremont, Illinois. It is a leading innovator in planting equipment, including its SpeedTube high-speed precision planting system. In 2015, Precision Planting’s U.S. sales for planter-related equipment were approximately $100 million.
Monsanto Company is a Delaware corporation headquartered in St. Louis, Missouri. Monsanto is a leading global provider of agricultural products and is the ultimate parent company of Precision Planting LLC.
Deere-Monsanto Complaint
Justice Department Files Sexual Harassment Lawsuit Against Two St. Louis LandlordsRead the Press Release
The Justice Department filed a lawsuit today against two St. Louis landlords, Hezekiah and Jameseva Webb, alleging that they violated the Fair Housing Act by subjecting female tenants in their rental properties to sexual harassment and retaliation.
The lawsuit, which arose from a U.S. Department of Housing and Urban Development (HUD) complaint, was filed in the U.S. District Court for the Eastern District of Missouri. It alleges that Hezekiah Webb, who served as property manager for the Webbs’ rental properties, sexually harassed female tenants at their properties. The complaint alleges that such harassment included conditioning housing or housing benefits on female tenants’ agreement to engage in sexual acts; coercing female tenants to engage in unwelcome sexual acts; subjecting female tenants to unwanted sexual touching and other unwanted sexual acts; making unwelcome sexual comments and advances to female tenants and taking adverse actions against female residents when they refused the sexual advances.
“No woman should ever suffer from threats, violence or harassment in her home,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Justice Department works vigorously to enforce the Fair Housing Act by vindicating the civil rights of tenants so that all people can live in their homes and feel safe, protected and free.”
“Unwanted sexual advances or harassment make it impossible for a woman to feel safe in her home,” said Gustavo F. Velasquez, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. “HUD will continue to work with the Department of Justice to protect women from this type of unlawful treatment.”
The suit seeks monetary damages to compensate the victims, civil penalties and a court order barring future discrimination.
The Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. Individuals who believe that they may have been victims of housing discrimination at one of the Webbs’ properties, or elsewhere, can contact the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact HUD at 1-800-669-9777 or through its website at http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Webb Complaint
Jerome Man Pleads Guilty to Possession of Child PornographyRead the Press Release
BOISE – Casey Gibson, 23, of Jerome pleaded guilty yesterday in United States District Court to possession of child pornography, U.S. Attorney Wendy J. Olson announced. Gibson waived his right to indictment and pleaded guilty to an information filed by the U.S. Attorney's Office.
According to the plea agreement, an electronic device at Gibson’s residence in Jerome accessed a website based in Russia that contained child pornography, and made postings offering to trade images of child pornography. In July of 2015, agents with the Department of Homeland Security, with assistance from the Twin Falls County Sheriff’s Office, contacted Gibson at his residence. Gibson gave agents consent to search his phone and e-mail accounts. Agents discovered evidence that Gibson used his e-mail account to receive, distribute, and possess images of child pornography. During a voluntary interview, Gibson admitted to receiving and viewing images of child pornography in his e-mail account. Agents discovered 11 images of child pornography, and 1 video containing child pornography, including images of prepubescent minors who had not yet attained the age of twelve.
Sentencing is set for November 14, 2016, before Chief U.S. District B. Lynn Winmill.
Possession of child pornography is punishable by up to 20 years’ imprisonment, a $250,000 fine, a term of supervised release of not less than five years and up to life.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations, with assistance from the Twin Falls Police Department, and 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.”
Indiana Man Sentenced to Prison for Felon in Possession of Stolen Firearms Charges and Absconding to CubaRead the Press Release
DAVENPORT, IA – On August 29, 2016, Shawn Michael Wegmann, 39, of Indiana, was sentenced by United States District Court Judge Stephanie M. Rose to 150 months in prison for felon in possession of a firearm, possession of a stolen firearm, and failure to appear, announced United States Attorney Kevin E. VanderSchel. Wegmann was ordered to serve three years of supervised release following his prison term, to pay $300 towards the Crime Victims’ Fund, and to pay victim restitution of $2,811.00.
Wegmann pleaded guilty on March 11, 2016, to three counts of felon in possession of a firearm, one count of possession of a stolen firearm, and failure to appear. According to the plea agreement, Wegmann was involved in three burglaries where numerous guns and other valuable property were taken. Specifically, around January 2015, Wegmann burglarized a house in Long Grove, Iowa, wherein approximately twelve guns were stolen along with a bass boat. Wegmann sold five of the stolen firearms from this burglary to a retailer in Davenport, Iowa, receiving payment for those firearms, and sold another gun to an acquaintance in Muscatine, Iowa.
Then on February 17, 2015, Wegmann burglarized a residence in Morrison, Illinois, and took approximately eleven firearms. Wegmann sold several of the stolen firearms to a person in Muscatine County. And then on February 23, 2015, Wegmann burglarized a residence in Bennett, Iowa, and took a large safe containing approximately fifteen guns. Wegmann and others pried open the safe and the guns were distributed among the participants. Wegmann then helped push the safe into a river to avoid detection.
Prior to November 2014, Wegmann was convicted of at least two felony convictions, which include: Burglary in the Third degree in 1996 (Clinton County, Iowa) and Operating While Intoxicated in 2013 (Clinton County, Indiana).
On July 21, 2015, Wegmann was indicted on three counts for felon in possession of a firearm (Counts 1, 3, 5) and three counts of possession of a stolen firearm (Counts 2, 4, 6). On August 26, 2015, Wegmann was released from the custody of the United States Marshal Service (USMS) with conditions that included GPS monitoring and allowed Wegmann to reside in Kirklin, Indiana.
On October 26, 2015, Wegmann was scheduled to plead to the charges. On October 23, 2015, tamper alerts came in regarding Wegmann’s GPS ankle monitoring device. The GPS device was found cut, taped and zip-tied to the undercarriage of a van in Lafayette, Indiana. A warrant was obtained for Wegmann for a violation of Pre-Trial Release. On October 31, 2015, Wegmann was apprehended in Cuba and detained by Cuban customs officials. On December 8, 2015, Wegmann was expelled from Cuba, arrested by the USMS, and sent back to the SDIA.
This matter was investigated by the Muscatine Police Department, Muscatine County Sheriff’s Department, Muscatine Drug Task Force, Wilton Police Department, Cedar County Sheriff’s Department, Division of Narcotics Enforcement, Scott County Sheriff’s Department, Whiteside County Sheriff’s Department, United States Marshal Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.
Independence Man Indicted for Illegal Firearms After Shooting Himself, Assaulting MotherRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that an Independence, Mo., man has been indicted by a federal grand jury for illegally possessing firearms after accidentally shooting himself in the leg during an assault against his mother.
Matthew H. Coy, 33, of Independence, was charged in a two-count indictment returned by a federal grand jury in Kansas City, Mo., on Tuesday, Aug. 30, 2016. The federal indictment replaces a criminal complaint that was filed against Coy on Aug. 16, 2016.
The indictment charges Coy with two counts of being a felon in possession of firearms. Coy allegedly possessed a Charter Arms .44-caliber revolver and a Taurus .357-caliber revolver on Aug. 11, 2016.
According to an affidavit filed in support of the original criminal complaint, Independence police officers were dispatched to Coy’s residence in response to reports of a shooting-related incident. When officers arrived, Coy was seated on the front porch of the residence, holding his left leg and moaning from the pain of a gunshot wound to the leg. Coy told officers that his mother, who was present at the residence along with Coy’s 2-year-old and 5-year-old children, had shot him in the leg. Coy was transported to a medical facility for treatment of his injury.
Officers saw a large amount of blood on the floor of the living and in the garage of the residence. According to the affidavit, they found the loaded firearms in the garage. The Charter Arms revolver, according to the affidavit, was loaded with one spent cartridge and had likely been fired.
Coy’s mother, who was observed to have suffered obvious and visible injuries to her forehead and to her left shoulder area, told officers that Coy had assaulted her and accidentally shot himself in the leg. Coy had been residing with her at the residence since his release from prison.
According to the affidavit, his mother told officers that Coy was acting in a “paranoid” manner and had pointed a handgun at her in an angry, threatening manner. Coy shoved her to the floor, the affidavit says, and kicked her in the rib cage area repeatedly.
Coy then forced his mother into a chair, the affidavit says, and struck her in the head with the handgun. He repeatedly placed the handgun to her right temple, the affidavit says, and exclaimed in an angry, threatening manner, “You think I’m playing?! You’re going to make me do this in front of my kids?!” Coy’s children entered the kitchen and observed the incident as it continued, the affidavit says, resulting in Coy escorting the children to a bedroom of the residence. His mother told officers that she heard a gunshot and was contacted by Coy, who stated he had shot himself and was in need of medical care. Coy’s mother fled to a neighbor’s residence and summoned police for assistance.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Coy is charged as an armed career criminal due to his prior felony convictions.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the Independence, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Honduran Man Sentenced to Prison for Unlawful Entry after DeportationRead the Press Release
DAVENPORT, IA – On August 29, 2016, Franklin Alberto Mendez Alvarado, 31, of Honduras, was sentenced by United States District Court Judge Stephanie M. Rose to 30 months in prison for unlawful entry after deportation, announced United States Attorney Kevin E. VanderSchel. Mendez Alvarado was also ordered to serve three years of supervised release following his prison term and to pay $100 towards the Crime Victims’ Fund. Mendez Alvarado will be turned over to Homeland Security and deported upon completion of his term of imprisonment.
Mendez Alvarado pleaded guilty to unlawful entry after deportation on May 17, 2016. Mendez Alvarado had previously been deported from the United States to Honduras on December 23, 2014, and re-entered the United States without prior approval.
Previously, on April 4, 2014, Mendez Alvarado pled guilty to Illegal Alien in Possession of a Firearm and Visa Fraud in the Western District of Missouri, and was sentenced on October 16, 2014, to time served and placed on supervised release for three years. Mendez Alvarado was deported to Honduras on December 23, 2014. On August 29, 2016, Mendez Alvarado admitted to violating his prior term of supervised release for returning to the United States and was sentenced to six months imprisonment. This term of imprisonment was ordered to be served consecutively to the 30 months imposed on the above case.
This matter was investigated by Homeland Security Investigations and prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.
Hazleton Man Charged with Conspiracy to Distribute Imported Prescription DrugsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Hazleton man was charged by the United States Attorney’s Office in a Criminal Information filed on August 30 with conspiracy to distribute the prescription drugs Tramadol and Ambien.
According to United States Attorney Peter Smith, the Information alleges that Azim Hosein, age 45, committed the offense during November 2014 through January 2016.
The charge stems from an investigation by the Drug Enforcement Administration and Hazleton Police into the importation of controlled substances from India and their subsequent distribution in the Hazleton area.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is five years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Grape Street Crips Member Charged with Double Murder, Two Attempted Murders in Connection with Racketeering ConspiracyRead the Press Release
NEWARK, N.J. – A federal grand jury today returned an indictment charging a Summit, New Jersey, man with racketeering-related murder and attempted murder charges – including a double homicide during the evening rush-hour in March 2014 – and added additional murder charges against several other members and leaders of the New Jersey Grape Street Crips, U.S. Attorney Paul J. Fishman announced.
Ahmad Manley, a/k/a “Fresh,” a/k/a “Moddi G,” 30, was arrested today and charged in a fifth superseding indictment with RICO conspiracy and drug trafficking. Manley was previously charged by the Essex County Prosecutor’s Office with the March 2014 double murder and had been out on bail. He is scheduled to have an initial appearance at 2:00 p.m. tomorrow before U.S. Magistrate Judge James B. Clark III in Newark federal court.
The indictment also charges, for the first time, second-in-command Kwasi Mack, a/k/a “Welchs,” a/k/a “The Prince,” a/k/a “Mini Me,” 27, of Belleville, and Corey Batts, a/k/a “C-Murder,” a/k/a “Cee,” 31, of Newark, with a 2006 shooting that left one rival gang member dead and another wounded. In addition, Tony Phillips, a/k/a “Blue,” 25, also of Newark, was added to counts charging two attempted murders that took place in October 2013. Finally, the indictment added a murder in aid of racketeering count against the leader of the enterprise, Corey Hamlet, a/k/a “C-Blaze,” a/k/a “Blaze,” a/k/a “Blizzie,” a/k/a “Castor Troy,” 39, of Belleville, New Jersey, as well as Batts and Phillips for a May 2013 murder.
According to the indictment returned today:
On March 3, 2014, Manley and Hamlet, the long-time leader of the New Jersey Grape Street Crips, were riding in Manley’s Jeep Cherokee when they pulled alongside a car being driven by an individual referred to in the indictment as “Victim 6.” Although Hamlet aimed a firearm at Victim 6 and the car’s other occupants, Victim 6 pulled off before any shots were fired. A short time later, Manley found Victim 6, and a car chase ensued. The chase concluded when Victim 6’s car crashed into other civilian vehicles at the intersection of Irvine Turner Boulevard and Spruce Street in Newark. Numerous shots fired from Manley’s Jeep Cherokee at Victim 6’s vehicle struck Victim 6 and killed “Victim 7,” a passenger in Victim 6’s car. In addition, “Victim 8” – an innocent bystander who was a passenger in one of the civilian vehicles that had crashed at the intersection – was shot through the head and killed.
The double murder was part of an on-going feud between the Grape Street Crips and a rival (referred to in the indictment as “Victim One”) that resulted in numerous other murders and attempted murders, several of which are charged in today’s indictment.
In August 2013, Hamlet authorized Batts and others to murder Victim One. In October 2013, Hamlet met with Victim One at the Mall at Short Hills in Millburn, New Jersey, in a meeting that had been set-up by “Victim Five,” a member of the New Jersey Grape Street Crips who was a close associate of Victim One and who attempted to broker a truce between Hamlet and Victim One.
After the Short Hills meeting, Hamlet used a social media account to post a report from the Essex County Prosecutor’s Office purportedly indicating that Victim One had provided a statement to law enforcement. Just three days after Hamlet’s social media post, Batts, Manley, Phillips, and another gang member – acting on Hamlet’s orders – repeatedly shot and nearly killed Victim One and “Victim Four,” a bystander who was inside Victim One’s car.
Following the attempted murder of Victim One, Hamlet and other gang members perceived that Victim Five had been disloyal by attempting to put an end to the feud between Hamlet and Victim One. In November 2013, Aaron Terrell, 25, and Rashan Washington, 26, both of Newark, murdered Victim Five. Acting on Hamlet’s orders, Washington lured Victim Five into a Jeep Cherokee and then purposely left Victim Five alone, while Terrell shot Victim Five once in the head.
On the racketeering conspiracy charge, Hamlet, Mack, Manley, Batts, and Phillips face a potential maximum sentence of life in prison and a mandatory minimum term of 10 years in prison. Manley also faces a potential life sentence for the drug trafficking charges. On the murder in aid of racketeering charges, Hamlet, Batts, and Phillips face a mandatory sentence of life in prison.
In total, the fifth superseding indictment charges 15 alleged members and associates of the gang with five murders, three attempted murders, and numerous other crimes committed as part of the racketeering conspiracy. Today’s indictment follows the coordinated takedown in May 2015 of 50 alleged members and associates of the Grape Street Crips who were charged by criminal complaints with drug-trafficking, physical assaults and witness intimidation.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski, for the investigation leading to the charges. He also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; police officers and detectives of the Newark Department of Public Safety, under the direction of Director Anthony A. Ambrose; and the Essex County Sheriff’s Office under the direction of Armando B. Fontoura, for their work on the investigation.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry A. Kamar of the OCDETF/Narcotics Unit of the Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel: TBD
Fugitive from State of Washington Sentenced on Federal Gun ChargeRead the Press Release
FRESNO, Calif. — Travis Ryan Keene, 36, of Washington state, was sentenced on August 29, 2016, by United States District Judge Lawrence J. O'Neill to seven and a half years in prison to be served consecutively to a previous sentence from Washington state of three years and seven months in prison for being a felon in possession of a firearm, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, on March 24, 2015, at approximately 5:15 p.m., Deputy U.S. Marshals observed Keene pumping gas at a local truck stop in Tehachapi, California. Deputies had a valid outstanding warrant for Keene’s arrest from Washington, but when they attempted to arrest him, he immediately sped off in a vehicle striking two USMS vehicles. Deputies gave chase for approximately 15 miles at high speeds through various side roads and into the hills of Tehachapi. Keene finally stopped at a residence and fled the vehicle on foot carrying a Ruger .357-caliber revolver. Deputies pursued Keene into the backyard of the residence, ordered him to the ground, and took him into custody without further incident. Deputies located the firearm as well as an additional 92 rounds of ammunition within close proximity to where deputies arrested Keene.
In sentencing Keene, Judge O’Neill stated that the length of the sentence was due in large part to the reckless and dangerous behavior of Keene, which could have resulted in the injury or death of federal law enforcement officers or innocent civilians. Judge O’Neill stated that such behavior must be severely punished.
This case was the product of an investigation by the United States Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Brian K. Delaney prosecuted the case.
Four charged in Elite Car Imports racketeering schemeRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today that four defendants who ran two used car dealerships in Indianapolis have been charged in connection with their illegal activities. The indictment charges,
Mohamed Noshi Mahmoud, a/k/a Noshi 39, Fishers
Mahdi Kehlifi, 23, Indianapolis
Issa Kayyali, 28, Indianapolis
Hamza Dridi, a/k/a Alex, 26, Indianapolis
with violations of the RICO statute along with a variety of other violations of federal law including conspiracy to commit mail fraud, conspiracy to commit wire fraud, money laundering, and interstate transportation of stolen property.
“As is so often the case in these fraud cases, the ultimate victims are the ones that can least afford it,” said Minkler. “Elite Motors abused processes in place that would allow citizens with subprime credit to get back on their feet through legitimate vehicle sales.”
Mohamed Noshi Mahoud (Noshi) was the principal leader and manager of Elite Enterprise which operated two used car dealerships and several “shell” companies in Indianapolis. Noshi allegedly directed other members and associates of the enterprise to engage in activity that assisted him in carrying out unlawful acts. Kehlifi was a managing sales associate involved in the day-to-day operations of the dealership, Kayyali was a sales associate and Dridi was the service manager and mechanic in charge of the chop shop the dealership used to disassemble vehicles that were later alleged to be stolen.
The indictment alleges that Noshi and other Elite managers engaged in three separate but interlocking fraud schemes on behalf of the business enterprise. The first was to procure fraudulent documents and submit them to lending and financial institutions to underwrite the purchase of cars, trucks and motorcycles on behalf of Elite’s customers. The documents included social security numbers, dates of birth and paystubs from the shell companies Elite employees or associates created.
The second scheme was a conspiracy to defraud insurance carriers by submitting false claims of stolen vehicles. The defendants allegedly claimed that certain vehicles were damaged or stolen, thereby causing the insurance carriers to release claim money to the policy and lien holder benefitting Elite. In many cases stolen vehicles and/or parts were located in the chop shop storage unit leased by Noshi.
The third scheme allegedly involved theft from specialty financing companies who gave Elite short term financing and lines of credit for vehicles in inventory. These specialty financing companies were defrauded through a series of steps including false representations made by Elite management.
The case was investigated through a collaborative partnership between federal, state, and local officials. The investigation was led by the Federal Bureau of Investigation, the United States Postal Inspection Service, U.S. Social Security, OIG, the Lawrence Police Department (Indiana), and the Indianapolis Metropolitan Police Department, with assistance provided by the Indiana Secretary of State, Auto Division and the Indiana Attorney General Consumer Fraud Division.
W. Jay Abbott, Special Agent in Charge of the Indianapolis Office of the Federal Bureau of Investigation, stated, “These charges send a clear message that illegal business practices in the form of white collar crime will not be tolerated. The Federal Bureau of Investigation and our law enforcement and regulatory partners will continue to aggressively pursue individuals who steal from honest, hardworking Americans and corporate America.”
“The defendants allegedly participated in an illicit organization that affected interstate commerce through the transportation of stolen property, money laundering, mail and wire fraud. In doing so, they utilized the U.S. Mail, which brought to bear the full investigative attention of Postal Inspectors,” said Patricia Armstrong, acting Inspector in Charge of the U.S. Postal Inspection Service’s Detroit Division. “We will continue to collaborate with our law enforcement partners to ensure actions such as these are aggressively investigated and pursued for criminal prosecution.”
Tracey Thanos, Special Agent-in-Charge of the SSA/OIG’s Chicago Field Division, stated, “The Social Security Office of the Inspector General is committed to working with other law enforcement agencies to investigate individuals who misuse Social Security numbers and other personal information to commit various forms of financial fraud. We commend our law enforcement partners for their contributions to this investigation, and we thank the U.S. Attorney’s Office in Southern Indiana for pursuing this case and other cases involving SSN misuse.”
Assistant United States Attorney Cynthia J. Ridgeway is prosecuting the case for the government and said all four defendants face up to 20 years’ imprisonment if convicted.
An indictment is merely a charge and not evidence of guilt. All parties are presumed innocent until proven guilty in federal court.
Former Station Chief for International Air Carrier Charged with Smuggling, Obstruction of Justice, and Wire FraudRead the Press Release
Earlier today, a grand jury in Brooklyn returned a superseding indictment adding charges against Ying Lin, a former station chief for an international air carrier (the Air Carrier), for smuggling, obstruction of justice and wire fraud. An earlier indictment charged the defendant with structuring financial transactions, which is included in the superseding indictment as well. The defendant worked as a counter agent for the Air Carrier at John F. Kennedy International Airport and later as station chief for the Air Carrier at Newark Liberty International Airport. The defendant’s initial appearance on the superseding indictment is scheduled for Tuesday, September 6, 2016, at 12 noon, before Chief United States District Judge Dora L. Irizarry at the United States Courthouse in Brooklyn.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, Acting Assistant Director in Charge, George J. Ennis, Jr., Federal Bureau of Investigation, New York Field Office, and Special Agent in Charge, Angel M. Melendez, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI).
As alleged in the superseding indictment and other court documents filed by the government, the defendant received certain packages from military officers of the People’s Republic of China (PRC) who were stationed at the Permanent Mission of the People’s Republic of China to the United Nations (the PRC Mission) and from other employees of the PRC Consulate in New York. The defendant then smuggled these packages onto Air Carrier flights departing JFK Airport for the PRC, in violation of applicable Transportation Security Administration (TSA) rules and regulations and Air Carrier policies, which require that checked baggage be accepted only from ticketed passengers. In return, the defendant received various benefits from PRC employees, including discounted liquor purchased from diplomatic duty-free shops and tax-exempt purchases of electronic devices, as well as free contracting work at her personal residence performed by PRC construction workers. The defendant continued to engage in smuggling activities after her initial arrest in August 2015. In addition, the defendant also helped a PRC national that she believed was a target of a federal inquiry escape to the PRC aboard an Air Carrier flight from JFK Airport.
“The defendant repeatedly acted in direct contravention of rules and regulations providing for the safety of flights in the United States in order to reap personal benefits such as free contracting work and tax-free liquor and electronics,” stated United States Attorney Capers. “The defendant also engaged in obstructive conduct even after she had been arrested in this case. She will now be held to account.” Mr. Capers extended his thanks to the TSA for their assistance and support in the investigation.
“The laws and practices in place in this country are meant to protect everyone’s security and safety, and no one is above them. Ms. Lin abused a position of trust within the system to circumvent those laws for personal gain. This case should serve as a reminder and warning to anyone trying to bypass our laws. It is unacceptable and we will hold them accountable,” stated Acting Assistant Director in Charge Ennis.
“Lin allegedly used her position at an international air carrier to smuggle packages onto planes headed to China in return for favors such as discounted liquor and electronics. These illicit actions created a potential safety issue to the planes and passengers onboard,” said HSI Special Agent in Charge Melendez. “HSI will remain steadfast in its commitment to ensuring the integrity of our international airports so they are not used for criminal activities.”
The charges in the superseding indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Alexander A. Solomon, Douglas M. Pravda, and Ian C. Richardson are in charge of the prosecution, with assistance provided by the Department’s Counterintelligence and Export Control Section.
The Defendant:
YING LIN
Age: 46
Queens, New YorkE.D.N.Y. Docket No. 15-CR-601 (DLI)
Former Senior Claims Examiner at DOL Worker’s Compensation Office in Dallas Sentenced to 15 Months in Federal Prison for Taking BribesRead the Press Release
DALLAS — Perry Rowell, 56, a former Senior Claims Examiner at the Department of Labor’s Office of Worker’s Compensation Program (DOL/OWCP), was sentenced yesterday by U.S. District Judge Sam A. Lindsay to 15 months in federal prison following his guilty plea in January 2016 to one count of bribery received by a public official, announced U.S. Attorney John Parker of the Northern District of Texas.
Rowell is one of 30 defendants charged in November 2015 with various crimes related to their roles in a massive health care fraud scheme that involved bribes, unnecessary medical treatment, fraudulent billing, and the falsification of medical documents to fraudulently bill the federal government, through the DOL/OWCP, more than $9.5 million. The defendants included doctors or medical providers, a senior claims examiner, a claims representative, a medical provider’s employee, and 21 claimants.
All but two defendants, whose trial is set for November 2016, have pleaded guilty to their respective roles, and most of those have been sentenced.
Lead defendant Larry Washington, 64, of Desoto, Texas, who pleaded guilty to one count of conspiracy to commit health care fraud, was sentenced in May 2016 to 78 months in federal prison and ordered to pay more than $7.7 million in restitution to DOL/OWCP. Washington was a licensed professional counselor and ran a business known as AAA Mental Health, LLC, Mind Spa, Inc., Solutions Health and Rehabilitation, and Convergence Emergence Diversion.
From approximately January 2013 through March 2015, Rowell, a Garland, Texas, resident who worked in the OWCP Dallas District office, admitted accepting monthly cash bribes, totaling approximately $24,000 from Ifeanyi “Tim” Egbuchunam, 61, of Plano, Texas, a former DOL Claims supervisor who represented claims before the OWCP. In return, Rowell expedited payments and decisions and immediately responded to Egbuchunam’s telephone calls about technical case status questions.
Egbuchunam, 61, of Plano, Texas, pleaded guilty to bribery of a public official and was sentenced earlier this month to 51 months in federal prison and ordered to pay more than $2 million in restitution.
As a result of the convictions, the government estimates that it has prevented the payment of an estimated $11 million in future payments to the claimant defendants.
The investigation was led by the U.S. Postal Service Office of Inspector General, and the Department of Labor Office of Inspector General, with assistance from Internal Revenue Service Criminal Investigation, U.S. Treasury Office of Inspector General, Social Security Administration Office of Inspector General/Cooperative Disability Investigations Unit, and the U.S. Department of Veterans Affairs Office of Inspector General.
Assistant U.S. Attorney P.J. Meitl and Special Assistant U.S. Attorneys Jennifer Bray and Nicola Dana are prosecuting the case.
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Former San Francisco Police Officer Sentenced to PrisonRead the Press Release
SAN FRANCISCO – Former San Francisco Police Officer Arshad Razzak was sentenced yesterday afternoon to 14 months in prison, and ordered to pay a $12,500 fine for violating the civil rights of a resident of a single room occupancy hotel and writing a false police report in connection with the incident announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
Following a jury trial, Razzak, 44, of San Francisco, was convicted on January 22, 2015, of engaging in a conspiracy against civil rights, in violation of 18 U.S.C. § 241; deprivation of rights under color of law, in violation of 18 U.S.C. § 242; and falsification of records, in violation of 18 U.S.C. § 1519. The evidence at trial proved that Razzak was the sergeant in charge of a group of undercover San Francisco Police Officers who entered a room in the Henry Hotel on December 23, 2010, without a warrant or other legal justification, in violation of the Fourth Amendment. In a report written after the illegal search, Razzak falsely represented that there were exigent circumstances that justified entry into the room. A hotel surveillance video recorded the incident and proved that Razzak’s account of the entry into the room was false. The evidence also showed that Razzak falsified documents related to a confidential informant in an improper effort to bolster his justification for searching the room.
Razzak was indicted by a federal grand jury on February 25, 2014. The incident came to the attention of the FBI after the San Francisco Public Defender released the videotape of Razzak and other officers entering the room at the Henry Hotel.
United States Attorney Brian J. Stretch said, “The fair administration of criminal justice requires police officers to uphold the constitution and to honestly document their activities. When officers intentionally violate their oath, as Mr. Razzak did, it is essential to the integrity of the criminal justice system that they be held responsible.”
The sentence was handed down by the Honorable Richard Seeborg, U.S. District Judge. Judge Seeborg also sentenced the defendant to a three-year period of supervised release. The defendant will begin serving the sentence on December 2, 2016, after the Bureau of Prisons designates the facility where he will be incarcerated.
The case was prosecuted by members of the Special Prosecutions Unit of the U.S. Attorney’s Office and the FBI.
Former Prisoner at USP Lee Sentenced for 2008 EscapeRead the Press Release
ABINGDON, VIRGINIA – A prisoner who was already serving time at USP Lee but escaped custody in 2008 was sentenced yesterday to additional federal prison time for that crime, United States Attorney John P. Fishwick Jr. announced.
Edward Porta, 61, pled guilty in June 2016 to one count of escape from custody of an institution or officer (USP Lee County Prison Camp). Tuesday in the United States District Court for the Western District of Virginia in Abingdon, Porta was sentenced to 18 months imprisonment to be served consecutively to the remainder of his previous sentence, to be followed by two years of supervised release.
"Mr. Porta has shown a complete disregard for law and order and has been justly punished for his actions,” United States Attorney Fishwick said today.
According to evidence presented at previous hearings by Assistant United States Attorney Jennifer R. Bockhorst, Porta was a prisoner at USP Lee County Prison Camp when he escaped in 2008. He remained a fugitive until earlier this year when he was apprehended in Washington State.
The investigation of the case was conducted by the United States Marshal’s Service. Assistant United States Attorney Jennifer R. Bockhorst prosecuted the case for the United States.
Former Operator of Gardena Casino Pays $1 Million Fine and Forfeits nearly $1.4 Million for Violating Federal Anti-Money Laundering LawsRead the Press Release
LOS ANGELES – The former operator of the Normandie Club in Gardena has been ordered to pay a $1 million criminal fine and to forfeit nearly $1.4 million after pleading guilty to violating the Bank Secrecy Act by failing to report large cash transactions to federal authorities.
During a federal court hearing yesterday, United States District Judge S. James Otero imposed the sentence on the Normandie Club, a partnership that sold the casino last month after state gaming authorities revoked its license to operate the facility.
As a result of a plea agreement between federal prosecutors and the Normandie Club, the casino pleaded guilty in January to violating anti-money laundering provisions of the Bank Secrecy Act. The partnership specifically pleaded guilty to failing to maintain an effective anti-money laundering program and conspiring to avoid reporting to the government the large cash transactions of some of the casino’s “high-roller” gamblers. Judge Otero ordered the Normandie Club to pay a $500,000 fine for each of the two counts, for a total fine of $1 million.
Judge Otero also ordered the Normandie Club to forfeit $1,383,530, which represents cash transactions in 2013 that were over $10,000 and were not reported properly to federal authorities.
Under federal law – specifically, the Bank Secrecy Act – casinos like the Normandie Club are required to implement and maintain programs designed to prevent criminals from using the casino to launder the large sums of cash that illegal activity can generate. For example, casinos must record and report to the government the details of transactions involving more than $10,000 by any one gambler in a 24-hour period.
“Our money laundering laws were enacted to prevent criminals from concealing the source of large sums of cash generated by illegal activity,” said United States Attorney Eileen M. Decker. “Casinos and cardrooms such as Normandie are cash-intensive businesses that are particularly attractive for use by criminals seeking to launder their ill-gotten gains, so they must be vigilant in meeting their obligations under those laws.”
In the plea agreement filed earlier this year, the Normandie Club admitted that its casino engaged independent gambling “promoters” to locate high-rollers and then steer those gamblers to the casino. As part of the conspiracy, “high-level personnel” at the casino, including the casino’s president and chief operating officer, agreed to avoid reporting to the government the large sums of cash certain high-rollers would bring to the casino. According to the plea agreement, the casino avoided reporting transactions related to the high-rollers by submitting Currency Transaction Reports that named the promoter instead of the gambler, by “structuring” transactions so that they appeared to be less than $10,000, or simply by failing to record large transactions.
During one six-week period in 2013, a single high-roller won more than $1 million from another party at the casino, and the casino conspired to conceal the identity of that high-roller.
“This sentence demonstrates the government’s ability to enforce the anti-money laundering laws used to ensure that certain high-rollers do not remain below the radar,” stated Anthony J. Orlando, Acting Special Agent in Charge for IRS Criminal Investigation. “In partnership with the U.S. Attorney’s Office, IRS CI will continue to protect the United States financial system through the investigation and prosecution of individuals and organizations that attempt to launder their criminally derived proceeds.”
The investigation into the Normandie Club was conducted by IRS Criminal Investigation and the California Department of Justice’s Bureau of Gambling Control. This case was handled by Assistant United States Attorney Christina T. Shay of the Violent and Organized Crime Section and Assistant United States Attorney John J. Kucera of the Asset Forfeiture Section.
Former Opa Locka Official Pleads Guilty to Accepting BribesRead the Press Release
The former Opa Locka Assistant Public Works Director pled guilty yesterday afternoon to accepting bribes in furtherance of an illegal municipal corruption scheme.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Gregory Harris pled guilty to participating in a conspiracy to receive and accept bribes in violation of Title 18, United States Code, Section 666(a)(1)(B) and to commit extortion under color of official right, in connection with his official duties as an Opa Locka city employee, in violation of Title 18, United States Code, Section 371.
According to the court record and statements made in open court, between March 2014 and March 2016, Harris agreed with an unnamed Opa Locka elected official (“Public Official A”), former Opa Locka City Manager David Chiverton, and others, to use their official positions and authority with the City of Opa Locka to solicit, demand, and obtain thousands of dollars in illegal cash payments from businesses and individuals in exchange for taking official actions to assist and benefit those businesses and individuals in their dealings with the City of Opa Locka.
As explained in open court at the guilty plea, Harris participated in the Public Works Department aspects of the conspiracy by following the directions given by Public Official A and Chiverton, who would tell Harris to take actions such as restoring water service to businesses which had paid them illegal bribes. The corrupt conduct included Harris accepting a $300 cash payment in exchange for turning the water service back on at an Opa Locka business, and in another instance, Public Official A directing Harris to stop a shutdown of water service at a different Opa Locka business which had illegally paid Public Official A $850 cash outside his home.
Harris is scheduled to be sentenced on October 27, 2016, in front of U.S. District Court Judge Beth Bloom. He faces a maximum sentence of five years’ imprisonment and three years’ supervised release. The court may also impose a maximum fine of $250,000.
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force. This case is being prosecuted by Senior Litigation Counsel Edward Stamm.
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.
Former Local 17 President and Business Manager Sentenced on Racketeering Conspiracy and Hobbs Act ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. -- The United States Attorney's Office announced today Mark N. Kirsch, 57, former President and Business Manager of Operating Engineers Local 17, based in Hamburg, NY, who was convicted of conspiracy to commit racketeering and Hobbs Act conspiracy, was sentenced to 36 months in prison by Senior U.S. District Judge William M. Skretny. The defendant was also ordered to pay $198,121.50 in restitution.
According to Assistant U.S. Attorney Timothy C. Lynch, who handled the sentencing, between at least January 1997 to December 2007, Kirsch participated in a criminal enterprise with the objective of extorting property from various construction firms throughout Western New York. The objective of the Local 17 criminal enterprise was to obtain several types of property through extortion, including: the property of construction contractors consisting of wages and benefits to be paid pursuant to labor contracts with Local 17; and the jobs and associated wages and benefits of employees of various businesses at construction sites in the Western District of New York. Among the unlawful means the defendant used to secure these objectives were actual violence, threats, intimidation, sabotage of property, and threats and attempts to interrupt and delay construction projects in order to drive up costs to the contractors and thus cause economic harm.
Kirsch was one of 12 defendants charged in this case. Seven others were also convicted, four were acquitted following a nine week jury trial.
The sentencing is the result of an investigation by the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Michael C. Mikulka, Special Agent-in-Charge of the New York Region, the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, and the New York State Police, under the direction of Major Steven Nigrelli.
Former Investment Advisor Sentenced for Defrauding Investors of over $3.2 MillionRead the Press Release
ATLANTA – Buford investment advisor Blake Bancroft Richards has been sentenced for stealing over $3.2 million from his clients. The defendant used client funds to make personal loan payments, take personal trips, and pay other personal expenses.
“Investors trusted Richards to invest their money as he promised,” said U.S. Attorney John Horn. “Instead, he stole their savings and repeatedly lied to them about his investments and self-dealing. Investors need to be careful and thoroughly vet those whom they entrust their hard-earned money.”
“The pain and suffering to the victims of this crime can never be appeased,” said FBI Atlanta Acting Special Agent in Charge George Crouch. “The trust that was violated by Richards has caused life-long damage to these individuals.”
According to U.S. Attorney Horn, the charges and other information presented in court: Richards worked as an investment advisor for LPL Financial, Inc., in Buford, Georgia. From 2008 through 2013, Richards defrauded his clients of money entrusted to him for investment purposes. He falsely represented that he would invest the money in life insurance, fixed income assets, variable annuities, and stocks. Instead, he deposited the money into bank accounts he controlled and used the money to make his own loan payments, pay real estate taxes, take personal trips, and pay other personal expenses.
To conceal his theft, Richards manufactured certificates and provided investors with fictitious account statements. When investors asked for their money, Richards made payments from his personal account or made excuses about why he could not return their money. During the five years of his scheme, Richards defrauded his clients, including close friends and family, of over $3.2 million.
Blake Bancroft Richards, 39, of Buford, Georgia was sentenced by U.S. District Judge Leigh Martin May to five years in prison to be followed by three years of supervised release, a special assessment of $100, and ordered to pay restitution in the amount of $3,749,485.80. Richards was convicted on these charges on June 15, 2016, after he pleaded guilty to wire fraud.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Bernita B. Malloy prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga
Former Executive Director of Upper Cumberland Development District Pleads Guilty to TheftRead the Press Release
Wendy Askins, 55, of Red Boiling Springs, Tenn., pleaded guilty today before U.S. District Judge Aleta A. Trauger, to two counts of theft from a federally-funded entity, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. At the time of the offenses, Askins was the Executive Director for the Upper Cumberland Development District (UCDD), and also oversaw the daily operations of the Cumberland Regional Development Corporation (CRDC) and the Cumberland Area Investment Corporation (CAIC). UCDD and its related organizations received thousands of dollars annually in federal funds during the time Askins led UCDD.
During the plea hearing, Askins admitted that she used UCDD and CRDC funds to purchase a property she named Living the Dream. Living the Dream was supposed to serve as an assisted living facility for senior citizens. Shortly after purchasing the home, Askins and UCDD Deputy Director Larry Webb set up a company called L.A. Management to operate the senior facility. Askins subsequently converted a portion of the property that was owned by the public agency into a home for her daughter and herself. Her upgrades to the property included adding elaborate, luxury showers in the bathrooms used by the Askins; wiring another bedroom to service a tanning bed, and spending an additional $25,000 to erect a double-winding staircase.
Askins admitted she moved money belonging to UCDD and its components to Living the Dream bank accounts, without the approval of the boards of directors. Askins attempted to hide the unauthorized transfer of other UCDD funds by directing an employee to falsify the minutes of a board of director’s meeting, in order to conceal the fact that she had spent a total of $233,000 without board approval. She also admitted that she lied to the media, board directors, and UCDD attorneys about why the meeting minutes were incorrect.
Askins will be sentenced by Judge Trauger on October 28, 2016. Federal program fraud carries a maximum penalty of 10 years in prison, a $250,000 fine, and up to three years of supervised release following a term of imprisonment.
Larry Webb, a co-defendant, pleaded guilty to bank fraud on August 17, 2015, and is currently scheduled to be sentenced on September 19, 2016.
The investigation was led by the U.S. Department of Commerce, Office of Inspector General, with assistance from the Federal Bureau of Investigation; the Internal Revenue Service- Criminal Investigation; the Housing and Urban Development, Office of Inspector General; and the U.S. Health and Human Services, Office of Inspector General. The United States is represented by Assistant U.S. Attorneys Stephanie N. Toussaint and William F. Abely.
Former BOP Employee Sentenced to Prison for Providing Contraband to USP-Marion Inmate and Lying to Federal InvestigatorsRead the Press Release
Renee D. Strauss, 42, of Marion, Illinois, was sentenced today in United States District Court in Benton to a term of four months in prison for providing contraband, including cellular telephones, to a USP-Marion inmate and then lying to federal investigators about her actions, announced Donald S. Boyce, United States Attorney for the Southern District of Illinois. Strauss previously pled guilty to a four-count information charging her with committing those offenses between June 2015 and September 27, 2015.
Information introduced to support the guilty pleas and sentence showed that at the time she provided the three cellular phones and other contraband to the inmate, Strauss was employed by the Federal Bureau of Prisons as a case manager and correctional officer at USP-Marion. Strauss developed an improper sexual relationship with the inmate that led her to provide him with the contraband. BOP officials learned of Strauss’ misconduct and referred the matter to the United States Department of Justice Office of Inspector General for investigation. Strauss then lied to investigators in an effort to cover-up the fact that she provided the inmate with contraband.
In addition to the term of imprisonment, Strauss was ordered to pay the United States fines and special assessments totaling $345 and was placed on a two year term of supervised release to follow her incarceration. As a part of her guilty plea, Strauss was also required to resign her employment with the BOP
The case was investigated by the United States Department of Justice Office of the Inspector General and was prosecuted by Assistant United States Attorney James M. Cutchin.
Former Attorney Pleads Guilty to Veteran’s Benefits FraudRead the Press Release
BOSTON – A former Massachusetts attorney pleaded guilty today in U.S. District Court in Boston in connection with a scheme to defraud a veteran.
Matthew J. McCarthy, 48, of Lowell, Mass., pleaded guilty to an Information charging him with one count of theft of public money. U.S. District Court Judge Dennis F. Saylor IV scheduled sentencing for Nov. 22, 2016.
In early 2000, McCarthy, an attorney at the time, was appointed as a guardian for a 64-year old veteran. Between October 2009 and March 2011, McCarthy appropriated the benefits deposited into the veteran’s bank account by the Department of Veterans’ Affairs by writing checks to himself from the veteran’s bank account and to third parties, endorsing those checks, cashing them, and appropriating the money. In total, McCarthy appropriated about $36,000.
The charging statute provides a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Jeffrey Hughes, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of the Inspector General, Northeast Field Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Giselle J. Joffre of Ortiz’s Major Crimes Unit.
Florida couple pleads guilty to fraud chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Nomiki Vavlas, 50, and Michael Vavlas, 52, of Tarpon Springs, Florida, pled guilty to committing fraud against the United States today, U.S. Attorney William J. Ihlenfeld, II, announced.
Nomika and Michael Valvlas own and operate VHP Enterprises, Inc, a company that specializes in painting and sandblasting. They were awarded a federal contract to paint bridges in Braxton County, WV from August 2011 through September 2012. The project was subject to the Davis-Bacon Act, which requires employers to pay a minimum hourly wage rate to all employees. The Vavlas’ did not pay the full wage rate for overtime hours worked by project employees and falsified payroll reports that were delivered to the West Virginia Division of Highways Office by the United States Postal Service.
The each pled guilty to one count of “Conspiracy to Defraud the United States and Commit Mail Fraud.” They face up to five years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The investigation was led by the Department of Labor Office of Inspector General and the West Virginia Commission on Special Investigations.
U.S. Magistrate Judge Michael John Aloi presided.
Florida Man Sentenced to 10 Years in Prison for Operating Extensive Prostitution EnterpriseRead the Press Release
Miguel A. Hernandez, 50, of Miami Beach, Florida, was sentenced to 10 years in prison for operating a prostitution enterprise that profited from the prostitution of multiple women, including both foreign nationals and Miami-area residents, for his financial gain.
Hernandez pleaded guilty before U.S. District Judge Marcia G. Cooke of the Southern District of Florida on May 11, 2016, to four counts of using a facility of interstate commerce to promote an unlawful activity and four counts of importing and attempting to import an alien for prostitution purposes.
According to documents filed in the case and evidence presented in court, Hernandez began operating a highly profitable prostitution enterprise known as “International Playmates” from a hotel in Fort Lauderdale, Florida, in 2010. Hernandez and others, including his brother and co-defendant, Eduardo Hernandez, recruited many of the women who worked for him from other countries, including Spain, Colombia, Venezuela and other Central and Latin American countries. To facilitate the operation, Hernandez and his associates reserved and paid for plane tickets for foreign nationals to enter the United States, completed immigration paperwork, coached foreign nationals on what to say to customs officials when entering the United States and picked foreign nationals up at the airport. Hernandez openly advertised his business on the Internet and deposited the cash proceeds into multiple bank accounts.
As part of Hernandez’s enterprise, he engaged numerous individuals in the scheme, including overseas recruiters to identify more women; drivers to transport women to dates with prostitution clients; a website technician to advertise the enterprise’s services; various female associates to help manage the enterprise; and Eduardo Hernandez to aid in operation of the scheme. According to documents filed in the case and evidence presented in court, Hernandez used physical force on at least two occasions against two different women, both Spanish nationals, and prostituted at least three minors for his profit.
“This case is just one example of the Anti-Trafficking Coordination Teams’ steadfast dedication to the prosecution of those who exploit others for personal financial gain,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida. “The U.S. Attorney’s Office for the Southern District of Florida commends the collective commitment from our law enforcement partners to protect the most vulnerable members of our communities from victimization.”
“The Civil Rights Division commends our federal partners for their steadfast commitment to combating human trafficking and related crimes,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “This case is a testament to our shared goal of bringing traffickers to justice and vindicating the rights of vulnerable women and girls exploited for financial profit.”
“Human trafficking is one of the most despicable crimes we investigate,” said Special Agent in Charge Mark Selby of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami. “HSI is committed to stopping the exploitation of those who are powerless to defend themselves, and bringing to justice those who would wantonly disregard these victims’ dignity for their own personal enrichment. We will continue to work with our federal, state and local law enforcement partners to make sure that individuals involved in this crime are brought to justice.”
“Diplomatic Security’s global presence enables our agency to serve as a liaison between U.S. and foreign law enforcement counterparts, assisting both in their efforts to stop human trafficking,” said Director Bill A. Miller of the State Department’s Diplomatic Security Service (DSS). “Today’s sentencing demonstrates how our unique placement at more than 275 diplomatic missions positions us well to stem the tide of human trafficking and target the criminals who prey on these victims.”
Hernandez was previously convicted and sentenced to confinement in Spain for immigration fraud offenses in violation of Spanish law, but fled to the United States before serving his sentence. Eduardo Hernandez pleaded guilty for his role in the enterprise on May 3, 2016, and was sentenced to 10 months’ imprisonment last week.
The case was investigated by HSI and DSS, with assistance from U.S. Customs and Border Protection. The case was prosecuted by Assistant U.S. Attorneys Olivia S. Choe and Jonathan Kobrinski of the Southern District of Florida and Trial Attorney Matthew T. Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.
The Southern District of Florida is one of six Phase I Pilot Anti-Trafficking Coordination Teams (ACTeams) convened through an interagency collaboration of the Departments of Justice, Labor and Homeland Security to develop high-impact federal human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking of adults by force, fraud and coercion.
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
Florida Man Sentenced to 10 Years in Prison for Operating Extensive Prostitution EnterpriseRead the Press Release
Highly Profitable Scheme Prostituted Foreign Nationals and South Florida Residents
Miguel A. Hernandez, 50, of Miami Beach, Florida, was sentenced to 10 years in prison for operating a prostitution enterprise that profited from the prostitution of multiple women, including both foreign nationals and Miami-area residents, for his financial gain.
Hernandez pleaded guilty before U.S. District Judge Marcia G. Cooke of the Southern District of Florida on May 11, 2016, to four counts of using a facility of interstate commerce to promote an unlawful activity and four counts of importing and attempting to import an alien for prostitution purposes.
According to documents filed in the case and evidence presented in court, Hernandez began operating a highly profitable prostitution enterprise known as “International Playmates” from a hotel in Fort Lauderdale, Florida, in 2010. Hernandez and others, including his brother and co-defendant, Eduardo Hernandez, recruited many of the women who worked for him from other countries, including Spain, Colombia, Venezuela and other Central and Latin American countries. To facilitate the operation, Hernandez and his associates reserved and paid for plane tickets for foreign nationals to enter the United States, completed immigration paperwork, coached foreign nationals on what to say to customs officials when entering the United States and picked foreign nationals up at the airport. Hernandez openly advertised his business on the Internet and deposited the cash proceeds into multiple bank accounts.
As part of Hernandez’s enterprise, he engaged numerous individuals in the scheme, including overseas recruiters to identify more women; drivers to transport women to dates with prostitution clients; a website technician to advertise the enterprise’s services; various female associates to help manage the enterprise; and Eduardo Hernandez to aid in operation of the scheme. According to documents filed in the case and evidence presented in court, Hernandez used physical force on at least two occasions against two different women, both Spanish nationals, and prostituted at least three minors for his profit.
“The Civil Rights Division commends our federal partners for their steadfast commitment to combating human trafficking and related crimes,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “This case is a testament to our shared goal of bringing traffickers to justice and vindicating the rights of vulnerable women and girls exploited for financial profit.”
“This case is just one example of the Anti-Trafficking Coordintion Teams’ steadfast dedication to the prosecution of those who exploit others for personal financial gain,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida. “The U.S. Attorney’s Office for the Southern District of Florida commends the collective commitment from our law enforcement partners to protect the most vulnerable members of our communities from victimization.”
“Human trafficking is one of the most despicable crimes we investigate,” said Special Agent in Charge Mark Selby of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami. “HSI is committed to stopping the exploitation of those who are powerless to defend themselves, and bringing to justice those who would wantonly disregard these victims’ dignity for their own personal enrichment. We will continue to work with our federal, state and local law enforcement partners to make sure that individuals involved in this crime are brought to justice.”
“Diplomatic Security’s global presence enables our agency to serve as a liaison between U.S. and foreign law enforcement counterparts, assisting both in their efforts to stop human trafficking,” said Director Bill A. Miller of the State Department’s Diplomatic Security Service (DSS). “Today’s sentencing demonstrates how our unique placement at more than 275 diplomatic missions positions us well to stem the tide of human trafficking and target the criminals who prey on these victims.”
Hernandez was previously convicted and sentenced to confinement in Spain for immigration fraud offenses in violation of Spanish law, but fled to the United States before serving his sentence. Eduardo Hernandez pleaded guilty for his role in the enterprise on May 3, 2016, and was sentenced to 10 months’ imprisonment last week.
The case was investigated by HSI and DSS, with assistance from U.S. Customs and Border Protection. The case was prosecuted by Assistant U.S. Attorneys Olivia S. Choe and Jonathan Kobrinski of the Southern District of Florida and Trial Attorney Matthew T. Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.
The Southern District of Florida is one of six Phase I Pilot Anti-Trafficking Coordination Teams (ACTeams) convened through an interagency collaboration of the Departments of Justice, Labor and Homeland Security to develop high-impact federal human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking of adults by force, fraud and coercion.
Fifteen Defendants Charged in White Plains Federal Court with Narcotics Trafficking in Orange CountyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Ennis, Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), George P. Beach II, Superintendent of the New York State Police, Ramon Bethencourt, Chief of the City of Middletown Police Department, and Carl E. DuBois, the Orange County Sherriff, today announced the unsealing of a Superseding Indictment charging fifteen defendants with trafficking cocaine and crack cocaine in and around Orange County, New York. One of the defendants is also charged with possessing a firearm in furtherance of the narcotics distribution conspiracy.
U.S. Attorney Preet Bharara said: “As alleged, the fifteen men and women charged today were part of a drug distribution network that peddled large quantities of powder and crack cocaine in and around Orange County. The residents of Orange County are entitled to live and work free from the ills of narcotics trafficking. Our joint effort with the FBI, the City of Middletown Police Department, the Orange County Sherriff’s Office, and the New York State Police brings us closer to that goal.”
FBI Acting Assistant Director-in-Charge George Ennis said: “When the public hears about the FBI Hudson Valley Safe Streets Task Force rounding up a group of alleged drug dealers and violent criminals, it may almost sound redundant. When we take out the alleged leaders of one conspiracy, unfortunately there are more people waiting to take over. However, our determination to stop the drug trade from having an impact on communities won’t go away. The next group waiting to take over should take this case as a warning that their actions will be met with severe consequences.”
New York State Police Superintendent George P. Beach II said: “Through close collaboration with our federal and local partners, we have dismantled a dangerous cocaine trafficking operation that was allegedly supplying illegal drugs to a large area of the Hudson Valley. I commend our members and those from the involved law enforcement agencies for their hard work in uncovering this operation, and preventing more illegal drugs from reaching our streets.”
City of Middletown Police Chief Ramon Bethencourt said: “Law enforcement agencies continue to work together to eliminate narcotics traffickers and it is these collaborative efforts that lead to successful operations such as this investigation. The scourge of narcotics and narcotics trafficking cannot and will not maintain a foothold in the City of Middletown. The City of Middletown Police Department will continue to work with our law enforcement partners to rid our community of these dangerous criminals who allegedly prey on members of society when they are at their very weakest.”
Orange County Sherriff Carl E. DuBois said: “I want to thank the members of local, state, and federal law enforcement whose tireless investigative work made this day possible. I also want to thank U.S. Attorney Preet Bharara and his team of prosecutors for their commitment to make Orange County a safer place in helping to eradicate drugs from our communities.”
As alleged in the Superseding Indictment unsealed today in White Plains federal court[1]:
From at least in or about 2015, up to and including in or about August 2016, in the Southern District of New York and elsewhere, JUAN BENIQUEZ, a/k/a “Johnny,” JUSTIN BENIQUEZ, OSCAR BORIA, JR., ELIJAH CABRERA, WILLIS CALDWELL, a/k/a “Fatts,” ANTHONY CRUM, DEREK DEGROAT, ANTHONY FIELDS, a/k/a “Tone,” DENISE FLORES-JACOBSON, COLLYER GOODMAN, a/k/a “West,” ALAN KING, a/k/a “Killa Grip,” LIEUNIGEL LEWIS, a/k/a “Gucci Louie,” DURANN ROLLINS, a/k/a “Dee,” DAMON WHEELER, a/k/a “Ross,” and LINDA WILLIAMS conspired to sell cocaine and crack cocaine. Specifically, the defendants JUAN BENIQUEZ, JUSTIN BENIQUEZ, DEGROAT, FIELDS, FLORES-JACOBSON, KING, LEWIS, ROLLINS, and LINDA WILLIAMS conspired to sell 280 grams or more of crack cocaine, and the defendants JUAN BENIQUEZ, BORIA, CABRERA, CALDWELL, CRUM, GOODMAN, and WHEELER conspired to sell five kilograms or more of cocaine. During the course of the conspiracy, law enforcement officers observed several defendants participate in the sale of cocaine and crack cocaine to confidential informants working with law enforcement. Law enforcement officers using court-authorized wiretaps also intercepted numerous communications in which the defendants discussed trafficking cocaine and crack and arranged sales of both narcotics.
The Superseding Indictment also charges JUAN BENIQUEZ with possessing a firearm in furtherance of the narcotics conspiracy.
A chart containing the names of the defendants, and the charges and maximum penalties they face, is attached.
The statutory maximum sentences are prescribed by Congress and are provided here for information purposes only, as any sentencings of the defendants would be determined by the respective judges.
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Thirteen defendants were taken into federal custody this morning. Oscar Boria, Jr., had previously been taken into custody. These defendants will be presented in White Plains federal court today before U.S. Magistrate Judge Lisa Margaret Smith. This case is assigned to U.S. District Judge Cathy Seibel. Derek Degroat remains at large.
Mr. Bharara praised the outstanding investigative work of the FBI, the City of Middletown Police Department, the Orange County Sherriff’s Office, and the New York State Police.
These cases are being handled by the Office’s White Plains Division. Assistant United States Attorney Anden Chow is in charge of the prosecutions.
The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
CHARGE
DEFENDANT
MAXIMUM PENALTIES
Narcotics Conspiracy – Crack Cocaine
(Conspiracy to distribute and possess with intent to distribute crack cocaine, in violation of 21 U.S.C. §§ 846, 841(a)(1) & 841(b)(1)(A))
JUAN BENIQUEZ, a/k/a “Johnny”
Life in prison
Mandatory minimum: 10 years in prison
JUSTIN BENIQUEZ
DEREK DEGROAT
ANTHONY FIELDS, a/k/a “Tone”
DENISE FLORES-JACOBSON
ALAN KING, a/k/a “Killa Grip”
LIEUNIGEL LEWIS, a/k/a “Gucci Louie”
DURANN ROLLINS, a/k/a “Dee”
LINDA WILLIAMS
Narcotics Conspiracy – Cocaine
(Conspiracy to distribute and possess with intent to distribute cocaine, in violation of 21 U.S.C. §§ 846, 841(a)(1) & 841(b)(1)(A))
JUAN BENIQUEZ, a/k/a “Johnny”
Life in prison
Mandatory minimum: 10 years in prison
OSCAR BORIA, JR.
ELIJAH CABRERA
WILLIS CALDWELL, a/k/a “Fatts”
ANTHONY CRUM
COLLYER GOODMAN, a/k/a “West”
DAMON WHEELER, a/k/a “Ross”
Firearms Possession
(Possession of a firearm in furtherance of a drug trafficking offense, in violation of 18 U.S.C. § 924(c))
JUAN BENIQUEZ, a/k/a “Johnny”
Life in prison
Mandatory minimum: 5 years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment, and the description of the Superseding Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Federal inmate pleads guilty to escaping from prisonRead the Press Release
BECKLEY, W.Va. – An inmate who served time at the Federal Prison Camp at Alderson pleaded guilty today to a federal crime, announced United States Attorney Carol Casto. Christina Kimble, 33, entered her guilty plea to escaping from federal prison.
Kimble admitted that on November 17, 2015, she left the Federal Prison Camp at Alderson without authorization. Kimble was apprehended several hours later by the Alderson Police Department.
Kimble faces up to five years in federal prison when she is sentenced on December 7, 2016.
The Federal Bureau of Prisons and the Alderson Police Department conducted the investigation. Assistant United States Attorney John File is in charge of the prosecution. The plea hearing was held before United States District Judge Irene C. Berger.
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Federal grand jury indicts 6 Explo company officials for offenses related to Camp Minden, Louisiana ammunition disposalRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a federal grand jury returned a 32-count indictment, unsealed today, charging six company officials of Explo Systems Inc. of defrauding the federal government and committing federal offenses relating to a munitions demilitarization contract with the U.S. Army.
Explo owner David Perry Fincher, 68, of Burns, Tenn.; owner David Alan Smith, 61, of Winchester, Ky.; Vice Present of Operations William Terry Wright, 62, of Bossier City, La.; Program Manager Kenneth Wayne Lampkin, 64, of Haughton, La.; Traffic and Inventory Control Manager Lionel Wayne Koons, 57, of Haughton; and Director of Engineering and Environmental Control Charles Ferris Callihan, 66, of Shreveport, were all charged with one count of criminal conspiracy. The indictment also charges multiple counts of making false statements to a federal agency or official and wire fraud. See Appendix.
Explo Systems Inc. is a private company whose primary business operations involved the demilitarization of military munitions and the subsequent resale of the recovered energetic materials for mining operations. According to the indictment, the U.S. Army awarded Explo a contract on March 24, 2010 to dispose of 450,000 155 mm artillery propelling charges designated as M119A2 for $2,902,500. The Army and Explo officials later amended the contract on March 6, 2012 to dispose of 1,350,000 charges for $8,617,500. Once Explo demilitarized the propelling charge, ownership of the residual components (M6 propellant or M6) transferred to Explo. The contract required Explo to properly store and dispose of the demilitarized M6. The contract also required Explo to document the sale of the demilitarized M6 by completing an End User Certificate (EUC). On the EUC, the purchaser of the demilitarized M6 certified the purchase and compliance with applicable federal laws. Once the EUCs were certified, Explo submitted the EUCs to the Army.
On October 15, 2012, an explosion occurred at a munitions storage igloo on Camp Minden. The explosion contained approximately 124,190 pounds of smokeless powder and a box van trailer containing approximately 42,240 pounds of demilitarized M6. The damage destroyed the igloo and trailer, shattered windows of dwellings within a four-mile radius, and derailed 11 rail cars near the storage igloo.
The indictment alleges that the defendants made false statements to the Army’s Joint Munitions Command (JMC) to procure and maintain the M6 demilitarization contract; caused the improper and unsafe storage of demilitarized M6 propellant and other explosive material on Explo’s Camp Minden facility; obstructed and impeded government inspections and examinations of areas of the facility where the explosive materials were improperly stored; caused third parties to sign off on EUCs as purchasers when in fact no sales had occurred; caused false EUCs containing forged and fabricated signatures to be submitted to the JMC; caused the improper storage and subsequent transportation of reactive hazardous waste to unpermitted non-hazardous waste landfills in Louisiana and Arkansas to make room for storage of M6 propellant at Camp Minden; and made false statements after the October 15, 2012 explosion to government officials and others in order to conceal their illegal conduct and prevent discovery of improperly stored M6.
“Companies tasked with the demilitarization of military grade explosives are required to properly document, safely store and dispose of these materials,” said U.S. Attorney Finley. “These measures are taken to protect the public and the environment. Any business that does not honor its contract or abide by federal and state laws will be prosecuted.”
“We are very pleased with today’s announcement,” said Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit. “Fortunately, no one was injured, and these indictments will serve as a strong deterrent to those thinking of defrauding the government.”
“These indictments demonstrate that EPA, and its law enforcement partners will hold accountable those who fail to comply with the laws that protect our communities,” said Chris Brooks Special Agent in Charge, Dallas Region, EPA-Criminal Investigation Division.
The defendants face five years in prison for the conspiracy count, five years in prison for each false statement count, and 20 years in prison for each wire fraud count. They also face a $250,000 fine and three to five years of supervised release for each count.
The Environmental Protection Agency-Criminal Investigation Division, U.S. Army Criminal Investigation, Department of Defense Criminal Investigative Service, FBI, and the Louisiana State Police-Emergency Service Unit investigated the case. Assistant U.S. Attorney Earl M. Campbell is prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
APPENDIX OF DEFENDANTS AND CHARGES
David Perry Fincher: Criminal conspiracy (count 1); false statements (counts 2-24); wire fraud (counts 27-32)
David Alan Smith: Criminal conspiracy (count 1); false statements (counts 2-24); wire fraud (counts 27-32)
William Terry Wright: Criminal conspiracy (count 1); false statements (counts 2-24); wire fraud (counts 27-32)
Kenneth Wayne Lampkin: Criminal conspiracy (count 1); false statements (counts 2-24); wire fraud (counts 27-32)
Lionel Wayne Koons: Criminal conspiracy (count 1); false statements (counts 2-24; 26); wire fraud (counts 27-32)
Charles Ferris Callihan: Criminal conspiracy (count 1); false statement (count 25)
Dyersburg Man Sentenced to 10 Years for Child Pornography DistributionRead the Press Release
Memphis, TN – A Dyersburg man has been sentenced to a decade in federal prison for exchanging multiple sexually explicit pictures of minors online. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, Jonathan Lee, 21, of Dyersburg, Tennessee, used email, Dropbox, video chat rooms, and mobile messaging apps to exchange thousands of pornographic images of female minors. He also used the aforementioned platforms to meet teenagers. Lee attempted to persuade the teens to send him images of themselves engaged in sexual activity.
In April 2016, Lee pleaded guilty before U.S. District Judge John T. Fowlkes Jr. to one count of distribution of child pornography.
On Wednesday, August 31, Judge Fowlkes sentenced Lee to 10 years in federal prison.
This case was investigated by the Memphis Child Exploitation Task Force. The collective is comprised of the Federal Bureau of Investigation; Homeland Security Investigations; Shelby County Sheriff's Department; Memphis Police Department; U.S. Postal Investigation Service; U.S. Marshals Service; and the U.S. Secret Service.
Assistant U.S. Attorney Debra Ireland prosecuted this case on the government’s behalf.
Anyone who believes they may have information about this case or related activities is asked to contact the Memphis Child Exploitation Task Force at 901.747.4300.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the
Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
Doral Resident Convicted of Conspiracy to Import Five Kilograms or More of CocaineRead the Press Release
A Doral resident was convicted by a federal jury for conspiracy to import five or more kilograms of cocaine and conspiracy to possess with intent to distribute five or more kilograms of cocaine.
Wifredo A. Ferrer, United States Attorney of the Southern District of Florida, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
Jose Neda, 43, of Doral, Florida, was convicted on charges of conspiracy to import five kilograms or more of cocaine and conspiracy to possess with intent to distribute five kilograms or more of cocaine.
Sentencing is scheduled before U.S. District Judge Marcia G. Cooke on November 9, 2016. Neda faces a mandatory minimum sentence of 10 years in prison.
According to court records and trial testimony, Neda was a member of a cocaine-trafficking organization in which his primary responsibility was to facilitate loading bulk quantities of cocaine on commercial cargo carriers in Maiquetía, Venezuela (at the Simón Bolívar International Airport near Caracas). Following the murder of the drug organization’s chief – Ernesto Menendez (a/k/a “Lucky” and “Loco”), the surviving leadership of the organization convened a series of meetings in Miami and Maracaibo, Venezuela in the summer of 2009 to discuss the organization’s continued operation. In particular, the organization’s new financiers proposed routinely sending cocaine from Maiquetía to Miami, Florida. Having recently lost a cocaine load, Neda was cautious and proposed initially sending between 5 and 25 kilograms of cocaine only one to two times per week. The parties agreed and further resolved that Neda would facilitate loading the drugs in Maiquetía by paying corrupt airport officials/security personnel to place the drugs in “unmanifested” packages on Miami-bound commercial cargo flights. Neda was thereafter delayed in loading the cocaine on the aircraft. Frustrated by the delay, drug organization leaders relied on another individual to send nearly 60 kilograms of cocaine in July 2009 to Miami on a commercial cargo flight that originated in Maracaibo. After the cocaine was seized in Miami by HSI agents, Neda agreed to help the drug courier who lost the load by “smoothing things over” with the individuals who financed the smuggling venture. Additional evidence adduced at trial disclosed Neda had also facilitated loading 10 kilograms of cocaine in November 2007 on a Miami-bound commercial-cargo flight that originated in Maiquetía, Venezuela.
Mr. Ferrer commended the investigative efforts of ICE-HSI. The case is being prosecuted by Assistant U.S. Attorney Robert J. Brady, Jr.
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
Doctor Arrested and Charged with Providing Prescriptions for Opioids and Other Scheduled Pharmaceutical Drugs to Patients in Exchange for Sex ActsRead the Press Release
Contact: Assistant U. S. Attorney Orlando B. Gutierrez, 619-546-6958
NEWS RELEASE SUMMARY – August 31, 2016
SAN DIEGO – Physician Naga Raja Thota, a pain specialist with an office in El Cajon, was arrested this morning and charged with distributing oxycodone and other highly addictive drugs without any legitimate medical purpose in exchange for sex acts.
The doctor was taken into custody by San Diego Drug Enforcement Administration agents at his practice. He is scheduled to make his first appearance in federal court at 2 p.m. before U.S. Magistrate Judge Bernie Skomal.
The complaint said at least two young women received prescriptions for opioids without a legitimate medical purpose on numerous occasions in exchange for sex acts. The complaint also shows a pattern in which sexually-explicit texts are exchanged by the doctor and the women, followed by prescriptions written for them by Thota.
According to the complaint, one victim said she met Thota when she was hospitalized for withdrawal symptoms for Hydrocodone and Alprazolam. Thota agreed to treat her but documented that his treatment was for pain even though this victim did not suffer from any medical condition that caused chronic or ongoing pain. This victim also stated that Thota kept increasing the dosage.
This victim, who was twenty years old when she met Thota, said she felt that if she did not submit to sexual acts with Thota he would not have provided her with additional opioid prescriptions. After being exposed to greater dosage levels of opioids by Thota, the young woman started using an even stronger opioid – heroin.
“Prescription drug abuse and overdoses have reached alarming levels,” said U.S. Attorney Laura Duffy. “We are going after doctors who abuse their power to prescribe and exploit the desperation of addicts for their own gratification.”
“Doctors who exploit patients are the worst kind of predators.” said DEA San Diego Special Agent in Charge William Sherman. “DEA recognizes the trust the citizens of San Diego place in their doctors. We will continue to ensure that physicians who are abusing that trust by bartering sex for prescriptions will be arrested and prosecuted.”
If anyone has information regarding other victims or if you believe you were victimized by Dr. Thota, we urge you to contact DEA at (858) 616-4100 and ask for the Diversion Duty Agent.
Under Title 21, United States Code, Section 841, and Title 21, United States Code of Federal Regulations, Section 1306.04(a), a medical doctor may not prescribe a controlled substance unless there is a legitimate medical purpose.
DEFENDANT CRIMINAL CASE NO. 16MJ2679
Naga Raja Thota Age: 62 San Diego, CA
SUMMARY OF CHARGES
Counts 1-7 Title 21, United States Code, Sections 841(a)(1)– Dispensing Controlled Substances Without a Legitimate Medical Purpose. Maximum penalties: 20 years of custody, $1 million fine, life-term of supervised release.
INVESTIGATING AGENCY
U.S. Drug Enforcement Administration
Delaware Real Estate Developer Sentenced to 21 Months for Bank Fraud and Environmental ViolationRead the Press Release
WILMINGTON, Del. - David C. Weiss, Acting United States Attorney for the District of Delaware, announced that Joseph L. Capano, age 75, of Middletown, Delaware, was sentenced today to 21 months of incarceration followed by 12 months of home confinement, after pleading guilty in March 2016 to one count of bank fraud and one count of knowingly violating the Clean Water Act. Capano was also ordered to pay restitution of $685,419.32 to Cecil Bank, and to pay a fine of $50,000.00 for the environmental violation.
According to the charging document and statements during the sentencing hearing, both charges relate to Capano’s conduct during construction of the Riverbend at Old New Castle development located off of State Route 9 in New Castle, Delaware (“Riverbend Development”). The Riverbend Development was funded in part by a $1.5 million commercial line of credit from Cecil Bank, headquartered in Elkton, Maryland. Capano submitted fraudulent draw requests in which he sought the release of loan funds from Cecil Bank, claiming that the money would be spent on the Riverbend Development. After Cecil Bank loaned the money to Capano, he then spent the proceeds on personal expenses or his other businesses rather than using the funds for the requested purposes. On one occasion, Capano used Cecil Bank’s money to pay for a $63,000 jewelry purchase. In total, Capano misused approximately $420,000 in loan proceeds.
Capano also sent a letter to Cecil Bank falsely claiming that nine homeowners were under contract for homes at the Riverbend Development, when in reality no such contracts existed. Cecil Bank continued to lend Capano money under the line of credit based on those false representations. Capano defaulted on the line of credit, leaving the bank with significant losses and forcing the bank to foreclose on the Riverbend Development.
In addition to his misrepresentations regarding bank loan funds, the Information states that Capano knowingly filled wetlands at the Riverbend Development without a permit. Capano directed employees and contractors of his company to expand the entrance road to the development, even though the entrance road contained wetlands. Capano also directed contractors and employees to place a water main pipe through the entrance road wetlands, even after the Army Corps of Engineers instructed Capano to stop performing construction in the wetlands and issued Capano a Cease and Desist letter to that effect. Capano then lied to the Army Corps of Engineers, verbally and in a sworn affidavit, about the timing of that illegal work in the wetlands.
“During his work on the Riverbend Development project Joseph Capano lied to the Army Corps of Engineers, Cecil Bank and the few individuals who bought homes at Riverbend. After state and federal authorities began investigating, Capano continued to mislead state environmental officials, the bankruptcy court and the United States Probation Office. This was the defendant’s modus operandi. He came to court today with the understanding that the rules don't apply to him—that his actions have no consequences. After receiving a 21-month prison sentence, he left with a different understanding.” said Acting U.S. Attorney Weiss.
“Wetlands are essential for fish and wildlife habitat, mitigating the impacts of floods and maintaining water quality, so it’s imperative they are protected,” said Ted Stanich, Acting Director of the United States Environmental Protection Agency’s Criminal Investigation Division. “EPA and its law enforcement partners are committed to protecting these invaluable natural assets as well as the communities around them, and to do so, we will continue holding violators fully accountable.”
This case is the result of a joint investigation conducted by the Federal Bureau of Investigation, the Office of the Special Inspector General for the Troubled Asset Relief Program, and the United States Environmental Protection Agency, Criminal Investigation Division Philadelphia Area Office. The prosecution was handled by Assistant United States Attorney Jennifer K. Welsh, District of Delaware.
Daveport Man Sentenced as Armed Career CriminalRead the Press Release
DAVENPORT, IA - On August 30, 2016, Eddie Jarell Byas, age 29, of Davenport, Iowa, was sentenced by District Court Judge Stephanie M. Rose to 15 years’ imprisonment after pleading guilty as a felon in possession of a firearm, announced United States Attorney Kevin E. VanderSchel. Byas was also ordered to serve three years of supervised release and pay $100 towards the Crime Victims’ Fund. At sentencing, Byas was eligible for an enhanced sentence based on the district court’s finding he was an Armed Career Criminal as the result of two prior felony convictions for serious drug offenses and one prior conviction for a violent felony.
On September 16, 2015, officers with the Davenport Police Department conducted a search of Byas’ residence on West 14th Street in Davenport. Officers found and seized approximately 34.2 grams of marijuana, two digital scales, and a loaded Smith & Wesson 9mm semiautomatic handgun. Byas pled guilty on January 22, 2016.
This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa, the Bureau of Alcohol, Tobacco and Firearms, and the Davenport Police Department.
Davenport Man Sentenced for Stolen Valor Act ConvictionRead the Press Release
DAVENPORT, IA- On August 30, 2016, Robert Ellsworth Brooks, Jr., age 70, of Davenport, Iowa, was sentenced by District Court Judge Stephanie M. Rose to five years’ probation and a $5,000 fine, announced United States Attorney Kevin E. VanderSchel. Brooks pled guilty under the Stolen Valor Act to purchasing medals without proper authorization. Brooks was also ordered to forfeit the unauthorized medals and pay a $25 special assessment to the Crime Victims’ Fund.
Brooks has served in both the United States Army and the United States Navy. From approximately November 1962 to September 1966, Brooks served in the Navy. From approximately May 1967 until September 1970, Brooks served in the Army. This time in the Army included deployment and service in Vietnam in the helicopter program. From approximately September 1970 until September 1974, he served in the Army Reserve. From approximately September 1974 until January 31, 1986, Brooks served in the Navy and was discharged under "other than honorable conditions." After his discharge from the Army, Brook’s DD-214 dated September 10, 1970, listed the following Awards and Decorations (A & D): National Defense Service Medal, Vietnam Service Medal, Vietnam Campaign Medal, Army Aviator Badge, Parachute Badge, 30/S Service Bars, Distinguished Flying Cross, Bronze Star Medal with 2 Oak Leaf Clusters, Air Medal (14th award with "V" device).
Sometime between 1971-1974, and during his service in the Army Reserves, Brooks engaged in a conversation with others and as a result compiled a list of Awards and Decorations he thought he deserved, but had not validly been awarded. He knowingly provided this list to another and this information was falsely added to his official military file.
After Brooks began his service in the Navy in 1974, through a series of administrative interactions between the Army and Navy, the Navy obtained a copy of Army records, including a Form 66, which had been populated with this falsely added information under the Awards & Decorations. The Navy relied on this form as legitimate and believed Brooks was entitled to the incorrectly listed Awards & Decorations. When Brooks was discharged from the Navy on January 31, 1986, his DD-214 included the false Awards & Decorations. Throughout the years, the only document that was checked when suspicion arose about the earned Awards & Decorations was the fraudulent DD-214.
On January 31, 1986, Brooks was discharged from the Navy. As part of his plea in federal court, Brooks admitted that the DD-214 dated January 31, 1986, included false Awards & Decorations. Most significantly, Brooks’ DD-214 falsely reported that he had received a Silver Star Medal with 2 Oak Leaf Clusters, a Purple Heart with 4 Oak Leaf Clusters, and a Combat Infantry Badge. Brooks also admitted that his records falsely included the following: Distinguished Flying Cross with 3 Oak Leaf Clusters, Bronze Star Medal with 2 Oak Leaf Clusters, Airmen Medal with a 57, an Oak Leaf Cluster and "V," Army Commendation Medal with "V," Navy Good Conduct, Navy Pistol Expert, Republic of Vietnam Cross of Gallantry with star, Armed Forces Reserve Medal, Republic of Vietnam Campaign w/ Bar, Republic of Vietnam Honor 1st Class, Army Reserve Components Achievement Medal, Navy Unit Commendation, Meritorious Unit Commendation, Presidential Unit Citation, (Army) Presidential Unit Citation, (Army) Meritorious Unit Citation, (Army) Valorous Unit Citation, Republic of Vietnam Combat Action Ribbon, Armed Forces Expeditionary Medal, Republic of Vietnam Air Service, Vietnam Air Cross Gallantry w/ Silver Wings, Army Overseas Ribbon, Army Service Ribbon, Army NCO Proficiency Development, Naval Parachutist Badge, Naval Aviator Badge, Navy Aircrew Member Wings, Army Parachutist Badge, Republic of Vietnam Parachutist Badge, and Pathfinder Badge.
Brooks knew he had not been legitimately authorized to receive these Awards and Decorations. Brooks admitted that he knowingly and intentionally purchased unauthorized Awards & Decorations, including, but not limited to a Silver Star with 2 Oak Leaf Clusters, a Purple Heart with 4 Oak Leaf clusters, and a Combat Infantryman Badge.
Brooks has repeatedly and falsely affirmed, in public and private settings, that he was properly entitled to and received the additional Awards & Decorations improperly added to his DD-214. Brooks has failed to correct this erroneous information. On several occasions when others have questioned his service record, Brooks has referred to the 1986 DD-214, knowing that it contained false information. At his sentencing hearing, the district court noted that Brooks’ public claims that he was a prisoner of war (POW) after he and his crew were shot down during the Vietnam War were not credible. The district court also noted that a story published in Chicken Soup for the Veteran’s Soul, based on information provided by Brooks and describing Brooks flying through enemy fire to save a group of Marines, one of which turned out to be a family member, also was apparently not true.
This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa and the Federal Bureau of Investigation.
Couple Enter Guilty Pleas in Murder-for-Hire CaseRead the Press Release
AMARILLO, Texas — Randy Exavier Greene, 21, formerly of Stratford, Texas, appeared yesterday in federal court before U.S. District Judge Sidney A. Fitzwater and pleaded guilty to a superseding information charging one count of conspiracy to use an interstate commerce facility in the commission of murder-for-hire. Greene’s co-conspirator, Brandi Nicole Blanco, 31, of Dalhart, Texas, pleaded guilty to the same offense last week. The pleas were announced today by U.S. Attorney John Parker of the Northern District of Texas.
Both will remain in custody pending sentencing, which has been set for December 12, 2016. Each faces a maximum statutory penalty of five years in federal prison and a $250,000 fine.
Engaged to be married, Brandi Blanco and Greene lived in Texas until January 2016, when they moved to Florida.
According to documents filed in the case, from approximately February to April 2016, Blanco and Greene used a cellphone to make calls from Florida to an individual (Person A) in Texas during which they solicited Person A to murder, for a sum of cash, Blanco’s estranged husband, Angel Blanco.
Person A received a phone call from Greene on February 22, 2016, in which Greene inquired if Person A knew Angel Blanco of Hartley, Texas. Greene told Person A that Brandi Blanco was the beneficiary of a $1 million life insurance policy on Angel Blanco. Greene also told Person A that if he/she would “take care” of Angel Blanco, he/she could get some money out of the policy. Person A reported the call to the Dalhart Police Department.
In subsequent telephone conversations between Greene and Person A, and Brandi Blanco and Person A, the murder-for-hire, or as Greene called it, the “Hartley situation,” was discussed. Green said that he would pay $100,000 to Person A to commit the murder. Greene also advised that they wanted it to happen soon after he and Brandi Blanco “got caught up” (arrested) so they would be in jail and have an alibi. Their plan was for Brandi Blanco to collect on the insurance policy after she got out of jail. She also planned to get custody of three of her children when she was released from jail.
In a February 23, 2016 phone conversation, Brandi Blanco offered $125,000 to Person A to do the job and swore to God that she would pay Person A. Person A advised her that he/she would need information because he/she wanted to do the job right because he/she could “go to the chamber for this.” Brandi Blanco interrupted Person A and told Person A to do the job alone, saying that she would tell Person A all they needed to know to murder Angel Blanco.
In a phone conversation the next day, Greene told Person A that he wanted Brandi Blanco to be on camera in a Walmart when the murder happened. On February 26, 2016, Person A called Brandi Blanco to discuss the “deal” they had been talking about, and in that conversation, she told Person A to murder Angel Blanco while he was at work. When Person A suggested that he/she make it look like an accident, Brandi Blanco agreed.
In a March 3, 2016, conversation, Person A told Brandi Blanco that he/she was going to “take care of the situation” the day she got on the bus from Florida to Texas. Brandi Blanco told Person A that the insurer would have to find her immediately after Angel Blanco’s death because she was still married to him.
Subsequently, Brandi Blanco and Greene were arrested on state charges. They were charged in a federal indictment in May 2016 with charges related to the murder-for-hire. The murder was not committed.
The Federal Bureau of Investigation, Texas Department of Public Safety - Texas Ranger Division, and the Dalhart Police Department are investigating the case. Assistant U.S. Attorneys Sean Taylor and Joshua Frausto are prosecuting.
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Clear Vue Eye Center and its Owner Agree to Pay One Million Dollars to Resolve False Claims Act AllegationsRead the Press Release
Clear Vue Eye Center, Inc. (Clear Vue) and its owner, Dr. Monique Barbour have agreed to pay $1 million to resolve allegations that they violated the False Claims Act by overbilling Medicare for patient visits at nursing homes and assisted living facilities, and for billing for procedures purportedly performed while Dr. Barbour was out of the country.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Miami Region, made the announcement.
“The Medicare program, a vital component of our health care system, is threatened when providers bill fraudulently or carelessly for their own financial interests” said U.S. Attorney Wifredo Ferrer. “The United States Attorney’s Office remains vigilant in investigating and resolving claims of Medicare fraud brought under the False Claims Act.”
“It is hard to imagine how a single practitioner believed billing for more hours than were possible to perform in a day would not alert law enforcement to a potentially fraudulent scheme" said HHS OIG Special Agent in Charge Shimon R. Richmond. "Billing for work supposedly performed while you were physically in another country is a special kind of arrogance and disregard for the ethical care of patients.”
The United States alleged that Dr. Barbour billed excessively for patient visits at skilled nursing facilities and assisted living facilities, billing for more than 12 hours a day and often for more than 20 hours in a 24-hour period. Records reviews show that many of the procedures billed were medically unnecessary with little patient benefit. Records also showed Dr. Barbour billed procedures at the most profitable rates regardless of the procedure’s proper billing code. In addition, billing and travel records demonstrated that Dr. Barbour billed for procedures purportedly performed at Clear Vue while she was out of the country.
The settlement announced today resolves allegations originally brought by Lori Moore, who had worked at Clear Vue, under the qui tam, or whistleblower provisions of the False Claims Act, which permit private individuals to sue on behalf of the government of the United States for the submission of false claims and to receive a share of any recovery. The False Claims Act authorizes the United States to intervene in such lawsuits and take over primary responsibility for litigation. Moore will receive $200,000.
Mr. Ferrer commended the investigative efforts of HHS-OIG. The investigation and settlement were handled by Assistant U.S. Attorney Franklin Monsour.
The case is captioned United States and State of Florida ex rel. Moore v. Clear Vue Eye Center, Inc. and Dr. Monique Barbour, Case No. 14-81099 CIV (S.D. Fla.). The claims settled by the lawsuit are allegations only and there has been no determination of liability.
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.
Cheektowaga Man Sentenced for Violating Supervised ReleaseRead 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 Justin Jeffrey Amato, 33, of Cheektowaga, NY, who was convicted of violating supervised release, was sentenced to 12 months in prison and four years of additional supervised release by Senior U.S. District Court Judge William M. Skretny.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that the defendant was on supervised release with the U.S. Probation Department following a 2011 conviction for possession of child pornography. During this term of supervised release, Amato was ordered not to have deliberate contact with any child under 18 years of age. On August 10, 2016, the defendant was convicted of violating that release for having frequent contact with a two year-old minor child. Amato also visited two separate public facilities that feature activities for children.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen and the U.S. Probation Department, under the direction of Anthony SanGiacomo.
Cape Coral Man Pleads Guilty to Credit Card Fraud and Aggravated Identity TheftRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces today that Edrey Santo Rojas (31, Cape Coral) pleaded guilty to access device (credit card) fraud and three counts of aggravated identity theft. Santo Rojas faces a maximum penalty of ten years in federal prison for the credit card fraud and a consecutive term of two years for each aggravated identity theft conviction. He will also be ordered to pay restitution to the victims of the offenses. Santo Rojas has been ordered to remain in custody pending sentencing, the date of which has not yet been set.
According to the plea agreement, between December 2014 and August 2015, Santo Rojas used unauthorized credit card information at various retail establishments. He also used three counterfeit and unauthorized access devices with account numbers belonging to financial institutions and individuals, without lawful authority.
In a related case, on August 16, 2016, U.S. District Judge Sheri Polster Chappell sentenced Henry Alberto Fernandez Gomez (30, Cape Coral) to three years in federal prison for participating in credit card fraud and access device fraud. Gomez used stolen and unauthorized credit card information 27 times at retail establishments throughout Florida to purchase various items.
These cases were investigated by the Federal Bureau of Investigation, the Economic Crimes Unit of the Lee County Sheriff’s Office, and the Cape Coral Police Department, with assistance from the United States Secret Service and the State Attorney’s Office for the 20th Judicial Circuit. They are being prosecuted by Assistant United States Attorney David G. Lazarus.
Canadian Man Pleads Guilty to Drug Trafficking and Money Laundering ChargesRead the Press Release
BOSTON – A Canadian man pleaded guilty today in U.S. District Court in Boston in connection with his role in a drug trafficking and money laundering organization that imported marijuana and MDMA, the club drug also known as “ecstasy” or “mollie”, from Canada into the United States.
Gurshuran Singh, 33, of Brampton, Ontario, Canada, pleaded guilty to one count of conspiracy to distribute MDMA and marijuana and one count of money laundering conspiracy. Singh was arrested in Canada in May 2014. In July 2016, he was temporarily surrendered from Canada to the United States to plead guilty to the charges in the indictment and unrelated drug charges in the U.S. District Court in the Western District of New York. U.S. District Court Judge Denise J. Casper scheduled sentencing for Dec. 7, 2016.
From the summer 2011 to approximately March 2012, Singh agreed with a co-conspirator to transport MDMA and marijuana over the Canadian-U.S. border in Michigan. Singh then recruited a courier to drive the MDMA and marijuana on at least three occasions to Joshua Rabinovitch, a Salem, Mass. man, who sold the drugs and returned the proceeds to Canada. In April 2012, Singh separately recruited another co-defendant, Adeel Bhutta, to pick up what Singh and Bhutta believed to be $240,000 in drug proceeds from Rabinovitch’s sale of MDMA in Massachusetts.
In July 2014, Judge Casper sentenced Bhutta to 28 months in prison for his role in the money laundering conspiracy. In February 2015, U.S. District Court Judge Richard G. Stearns sentenced Rabinovitch to 24 month in prison for his role in the drug trafficking and money laundering conspiracies. David Nguyen, a third co-defendant charged in the indictment, is the subject of an extradition request to Canada and faces charges for both the drug and money laundering conspiracies.
The narcotics charge provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of $1 million. The money laundering charge provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $500,000 or twice the value of money involved in the laundering transactions. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. The U.S. Attorney acknowledges the Department of Justice’s Office of International Affairs for its assistance in securing Singh’s temporary surrender to the United States. The case is being prosecuted by Assistant U.S. Attorneys Seth B. Kosto and Timothy E. Moran of Ortiz’s Criminal Division.