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Wednesday 6 July 2016
Hill City Man Sentenced to 120 Months for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Hill City, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on July 1, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Darrick Bessman, age 37, was sentenced to 120 months in custody, followed by 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
From October 2013 through September 2015, Bessman conspired with others to distribute, and distributed more than 500 grams of methamphetamine within South Dakota.
This case was investigated by Unified Narcotics Enforcement Team, United States Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, South Dakota Division of Criminal Investigation, Pennington County Sheriff’s Office, and the Rapid City Police Department. Assistant U.S. Attorneys Ted L. McBride and Kathryn N. Rich prosecuted the case.
Bessman was immediately turned over to the custody of the U.S. Marshals Service.
Harrisburg Man Pleaded Guilty to Federal Firearm Charge After Shooting at Officers During A Foot PursuitRead the Press Release
HARRISBURG – The United States Attorney's Office for the Middle District of Pennsylvania announced today that Reginald Barton, age 30, Harrisburg, Pennsylvania pleaded guilty yesterday before Chief U.S. District Court Judge Christopher C. Conner to a federal firearm charge.
According to United States Attorney Peter Smith, Barton pleaded guilty to possession of a firearm by a convicted felon as a result of a traffic stop in Harrisburg where Barton fled on foot from the police, fired one shot and then tossed the gun. Officers from the Harrisburg Bureau of Police recovered the firearm and determined that Barton possessed it after having previously been convicted of several felony offenses.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Harrisburg Bureau of Police. This case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
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 life 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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Harley Davidson merchandise thief sentenced in Federal CourtRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today the sentencing of a Winchester man convicted of Theft of Interstate Shipments. Douglas Castle, 37, was sentenced to one year and a day of incarceration by U.S. District Judge Sarah Evans Barker.
Castle stole and diverted shipments from his then-employer, a logistics and warehousing company in Greenwood that handled warehousing and logistics for Harley-Davidson. Castle started out small, pilfering Harley-Davidson brand jewelry, clothing, and other merchandise by concealing the items in baggy pants on his way out of the warehouse.
But over time, Castle’s scheme grew in scope and sophistication. Eventually, he began diverting whole shipments of motorcycle parts that retailed for roughly $450 apiece. Castle used his position at the warehouse to create fraudulent shipping labels and affix them to packages of motorcycle parts, which caused the shipping company to deliver the packages to Castle’s home instead of to Harley-Davidson retail stores. Each package contained dozens of expensive parts. Then, pretending to be an official online retailer of Harley-Davidson products, Castle sold the stolen items to unwitting buyers on eBay.
Castle perpetrated his scheme for over a year and a half until he was caught and fired by the warehouse company. Once caught, Castle cooperated with the government’s investigation, which was led by the FBI. In total, Castle diverted, stole, and sold approximately $353,000 worth of Harley-Davidson motorcycle parts and apparel.
According to Assistant United States Attorney Nick Linder, who prosecuted this case for the government, Castle must pay approximately $353,000 in restitution and serve one year of supervised release following completion of incarceration.
Four Members and Associates of the Florencia 13 Gang ConvictedRead the Press Release
LOS ANGELES – A federal jury late Tuesday convicted three men and one woman from Los Angeles County of conspiring to participate in the racketeering activities of the Florencia 13 criminal street gang (F13 Gang), as well as of related drug trafficking and firearms offenses.
Jose Dorado, 34, Tannous Fazah, 26, Jose Sanchez, 40, all of Huntington Park, and Giselle Casado, 33, of Downey, were convicted late yesterday in United States District Court following a 13-day trial. All four defendants were found guilty of both Racketeer Influenced and Corrupt Organizations (RICO) Conspiracy and Drug Trafficking Conspiracy, the latter being based on the F13 Gang’s street sales of illegal narcotics and coordinated operations to smuggle drugs into the Los Angeles County Jail (LACJ).
After the jury returned its verdicts, United States District Judge Beverly Reid O’Connell scheduled sentencing hearings for October 24, 2016.
“These defendants beat and shot a young man to death and increased the flow of illegal drugs into our community,” said United States Attorney Eileen M. Decker. “The verdicts remove these violent defendants from our community and deal an important blow against the Florencia 13 gang’s campaign of drugs and violence.”
Dorado and Fazah alone were found guilty of conspiring to commit a Violent Crime in Aid of Racketeering (VICAR) for a gang-related beating in Huntington Park that ultimately led to the shooting death of the victim. Dorado and Fazah also were found guilty of possessing a controlled substance with the intent to distribute it (heroin and methamphetamine, respectively) and of each being a felon in possession of a firearm and ammunition. Additionally, Sanchez was found guilty of possessing a firearm in furtherance of a drug trafficking crime, based on his possession of a handgun at one of the illegal gambling establishments run by the gang known as “casitas.”
Dorado and Casado were arrested on August 6, 2013 as part of a large-scale takedown of more than 20 members and associates of the F13 Gang. Fazah and Sanchez were later transferred to the United States District Court from state custody, where they had been incarcerated on separate felony state charges.
“This multi-agency law enforcement effort exhibits the positive community impact of focused, diligent and dedicated investigative work,” said ATF Special Agent in Charge Eric D. Harden. “ATF remains steadfast in its stance to disrupt organized gang activity and seek prosecution of anyone who chooses to offend at will, denying law abiding citizens a community or workplace free from violence.”
As demonstrated at trial, Dorado, Fazah, and Sanchez were F13 Gang “soldiers” who engaged in narcotics trafficking, violence, and/or firearms possession in furtherance of the gang. For her part, Casado was shown to be a “secretary” who assisted the extortionate tax collections and drug trafficking activities of the gang’s two “shot callers” on the streets; and she also repeatedly visited the operational leader of the gang – Mexican Mafia member Leonel Laredo, aka “Wizard” – imprisoned at Pelican Bay State Prison in Crescent City, California, to relay gang-related messages.
“The Los Angeles Sheriff's Department and Operation Safe Street Bureau were pleased to hear that the collaborative efforts between the Federal Government and the LASD resulted in these significant convictions,” said Captain Matt Burson, Sheriff's Operation Safe Streets Bureau. “Although these violent criminal street gangs continue to exist today, joint law enforcement endeavors such as this are proven to be effective and further collaboration with our Federal partners is welcomed.”
The evidence at trial showed, among other things, that Dorado and Fazah received an order from an incarcerated, senior F13 Gang member to violently discipline a junior member of the gang. That order, which was communicated during a recorded call over the LACJ inmate telephone system, included instructions both to beat the victim severely and to kill him. That night, Fazah, Dorado, and other F13 Gang members lured the victim into an alley and attacked him. At the conclusion of the brutal beating that ensued, Fazah brandished a handgun and shot the victim in the face, killing him. Dorado then reported back to the incarcerated F13 Gang member who issued the order: “That’s a done deal. You don’t gotta worry about that punk no more.”
Dorado was also involved in the F13 Gang’s efforts to smuggle illegal narcotics into local jails. As revealed by a series of inmate telephone recordings, he participated in the attempt to have a co-conspirator smuggle heroin, marijuana, and methamphetamine through the Los Angeles Metropolitan Courthouse on Hill Street.
The evidence further showed that Sanchez participated in the F13 Gang’s drug trafficking activities at the gang’s casitas. Sanchez also served as armed security and carried a firearm to protect the casita’s drug operations.
Chief Cosme Lozano of the Huntington Park Police Department said: “We are extremely pleased with the outcome of this investigation and the conviction of the suspects. These violent gang members belong in prison, not in our communities. This case is an example of what can be accomplished when local, state, and federal agencies collaborate to investigate, arrest, and successfully prosecute these violent criminals.”
At the time of sentencing, all defendants will face a statutory maximum sentence of life imprisonment on the RICO Conspiracy and Drug Trafficking Conspiracy counts, as well as mandatory minimum prison terms of 10 years based on the amounts of methamphetamine at issue. Sanchez will face an additional five-year mandatory, consecutive term of imprisonment due to his conviction for possession of a firearm in furtherance of a drug trafficking crime.
Dorado, Fazah, and Sanchez have all been held without bond since entering federal custody. Casado had been released on bond since her arrest in August 2013; however, after the verdicts Judge O’Connell ordered her remanded to the custody of the U.S. Marshals’ Service.
The investigation in this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Los Angeles County Sheriff’s Department, the California Department of Corrections and Rehabilitation, the Huntington Park Police Department, and the Los Angeles Police Department. The case is being prosecuted by Assistant United States Attorneys Terrence P. Mann, Sheila Nagaraj and Victoria Degtyareva.
Former Somerset County, New Jersey, Music Teacher Sentenced to Two Years in Prison for Possessing Images of Child Sexual AbuseRead the Press Release
TRENTON, N.J. – A Somerset County, New Jersey, man was sentenced today to 24 months in prison for possessing images of child sexual abuse on his computer, U.S. Attorney Paul J. Fishman announced.
Cliff Ramsay, 31, of Raritan, New Jersey, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with one count of possession of child pornography. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
On Feb. 25, 2015, and Feb. 27, 2015, Ramsay – at the time a music teacher at a public middle school in Hunterdon County – accessed a website known to contain images, videos, and other material containing images of child sexual abuse. A search warrant was executed at Ramsay’s home on July 28, 2015, and numerous files containing child pornography were found on his computer.
In addition to the prison term, Judge Wolfson sentenced Ramsay to five years of supervised release. He will also be required to register as a sex offender.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing. He also thanked the Somerset County Prosecutor’s Office, under the direction of Acting Prosecutor Michael H. Robertson; the Hunterdon County Prosecutor’s Office, under the direction of Anthony P. Kearns III; the Raritan Police Department, under the direction of Chief Kenneth McCormick; and the Readington Police Department, under the direction of Chief Sebastian Donaruma, for their assistance with this investigation.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Joshua D. Altman Esq., Trenton
Former Network Engineer Pleads Guilty to Cyber AttackRead the Press Release
BOSTON – A Lowell man pleaded guilty today in U.S. District Court in Boston in connection with hacking into and damaging the computer networks of his former employer and three former clients causing damage of over $130,000.
Kamlesh Patel, 40, pleaded guilty to two counts to causing damage without authorization to Internet-connected computers and to one count of using means of identification to commit the offense. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Sept. 28, 2016.
Patel worked as a senior network engineer at Northborough-based Baesis Inc., a company that offered network maintenance and security services to its clients. In October 2010, after Baesis terminated Patel, he used a colleague’s network credentials to access Baesis’s computer network and deleted the company’s image server, a computer that stored copies of clients’ network configurations.
In late January 2011, Patel used his former colleague’s credentials once again to access Baesis’s network and the networks of three former clients. Patel used specialized software to delete data from all four companies’ networks. As a result, the victim companies temporarily lost use of their networks, including Internet and e-mail access. One victim company lost access to its Internet telephone system for several weeks.
Patel’s victims incurred $137,896 in damages. He has agreed to pay this amount in restitution in connection with his plea.
The charges of causing damage without authorization to Internet-connected computers provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. The charge of using means of identification to commit a felony provides for a sentence of no greater than five years in prison, two 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 Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistance was provided by the Northborough and Lowell Police Departments. The U.S. Attorney’s Office acknowledges Baesis, Inc. for its assistance with the investigation. The case is being prosecuted by Assistant U.S. Attorney Seth B. Kosto of Ortiz’s Cybercrime Unit.
Former Maryland Man Pleads Guilty to Production of Child PornographyRead the Press Release
Baltimore, Maryland – Christopher Michael Salisbury, age 38, of Long Beach, California, formerly of Maryland, pleaded guilty today to two counts of production of child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Sean Ragan of the Criminal Division of the Federal Bureau of Investigation’s Los Angeles Field Office.
According to his plea agreement, between 2006 and 2013, while residing in Maryland, Salisbury sexually abused two minors, beginning when each victim was approximately five years old, and produced images and videos of himself and the minors engaged in sexually explicit conduct. Salisbury used video and photo editing software to assemble many of the videos documenting his sexual abuse of the victims into compilation videos that included music, text, and other editing.
Additionally, Salisbury regularly accessed the internet through a network specifically designed to facilitate anonymous communication, commonly referred to as the “dark web.” Salisbury used the network to find and join a hidden website whose primary purpose was to advertise and distribute child pornography. Salisbury used the “dark web” and his membership in the hidden website to view, download, receive, and collect thousands of images and videos of child pornography.
As part of his plea agreement, Salisbury must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Salisbury faces a mandatory minimum of 15 years in federal prison and a maximum sentence of 30 years in prison for each of the two counts of production of child pornography, followed by up to a lifetime of supervised release. U.S. District Judge George L. Russell III, has scheduled sentencing for November 4, 2016 at 9:30 a.m. Salisbury remains detained.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended, the FBI Baltimore and Los Angeles Field Offices for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the federal case.
Former Macon Co. Board of Elections Director Sentenced to Prison for Embezzling Public FundsRead the Press Release
ASHEVILLE, N.C. – Kimberly Michelle Bishop, the former director of Macon County’s Board of Elections was sentenced late yesterday to six months in prison for embezzling public funds, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Bishop, 44, of Franklin, N.C., was also ordered to serve three years of supervised release, the first six months of which to be served under home detention, and to pay $68,705.26 as restitution.
U.S. Attorney Rose is joined by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Tom Ammons, Assistant Special Agent in Charge of the North Carolina State Bureau of Investigation (SBI) in making today’s announcement.
“Bishop abused the trust placed in her by the public. As a director on the Board of Elections, Bishop stole public money to enrich herself and her lifestyle. She is now a federally convicted felon, a title she earned through her greed and theft. Federal laws are very effective in addressing this type of corruption - let this be a message to other elected officials who may seek to violate the public’s trust through illegal activity,” said U.S. Attorney Rose.
“This was a complex investigation that took teamwork, from both the SBI and FBI, to accomplish a positive outcome. We have built a strong relationship with the FBI, and enjoy the partnership developed with investigating public corruption cases. Our goal for this investigation was to ensure that justice was served so the community knew this type of behavior by a leader within the county would not be tolerated,” said Assistant Special Agent in Charge Ammons.
According to information contained in filed plea documents and the sentencing hearing, from about 2002 to January 2014, Bishop served as director of the Board of Elections (BOE) for Macon County. In that capacity, Bishop had access to BOE’s expense budget and was authorized to initiate check requests to pay for BOE-related services. Beginning in about June 2013 and continuing through January 2014, court records show that Bishop submitted check request forms and caused checks to be issued to four individuals to supposedly pay for their work on behalf of BOE. BOE had not, in fact, approved these four individuals as BOE workers and they were not on the county’s payroll.
Bishop has admitted in court that in order to cash these checks, on some occasions she forged the endorsement signature of the payee and signed her own name on the back of the checks, then cashed them at local financial institutions. On other occasions, court records show that two of the named payees would sign their names as endorsers, cash the checks and split the money with the defendant. In total, Bishop’s embezzlement scheme caused Macon County to issue checks for over $68,000. Bishop pleaded guilty in February 2016 to one count of federal program fraud.
In making today’s announcement U.S. Attorney Rose thanked the FBI and the SBI for their investigation of this case which is ongoing. The prosecution was handled by Assistant United States Attorney Richard Edwards of the U.S. Attorney’s Office in Asheville.
Former Glendale Resident Who Provided “Technical Support” to Identity Theft Ring Sentenced to over 12 Years in PrisonRead the Press Release
LOS ANGELES – A man who formerly resided in Glendale has been sentenced to more than 12 years in federal prison for his role of providing “technical support” to a credit card fraud ring that caused an estimated loss of more than $3,000,000 during his participation and for applying for a passport in a false identity in an effort to flee prosecution.
Mario Humberto Monge, 52, who was already in custody, was sentenced this morning by United States District Judge Percy Anderson to 145 months in prison and ordered to pay over $358,000 in restitution. Judge Anderson said there was a high likelihood this defendant would reoffend because he was previously convicted of virtually the same conduct and that society needed to be protected from him.
“Sophisticated identity theft rings like the one involved here could not function without technical skills,” said United States Attorney Eileen M. Decker. “Mr. Monge’s use of his electrical engineering knowledge to maintain the skimmers and other technology used by this ring enabled an estimated $3 million in losses suffered by approximately 44 victim financial institutions.”
According to the documents in the case, other members of the identity theft ring led authorities to Monge’s Glendale residence. In February of 2015, law enforcement executed search warrants at several locations related to the ring, including Monge’s residence. At that time, authorities seized a large amount of cash, currency counting machine, gas pump skimmer, skimmer electronic parts, a gas pump lock and key, and approximately 428 confirmed re-encoded credit/debit cards. At the time, Monge stated to authorities that his role was to provide “technical support/repairman” to the fraud ring because of his engineering background.
After authorities searched his residence, Monge applied for passports in false names as part of a plan to flee the country. Authorities searched his residence again in June of 2015 and seized additional identity theft related evidence, including an additional 33 re-encoded credit/debit cards.
“Task force members investigating this case worked from the bottom up to determine the extent of the criminal organization and to uncover how and with whom it functioned as it victimized dozens of institutions,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “I hope this lengthy sentence for Mr. Monge, a repeat offender, serves as a warning to those conducting similar criminal activity.”
When imposing sentence the judge considered Monge’s criminal history, which included prior federal convictions for fraud involving cloned cellphone devices and possession of firearm silencers without serial numbers. Judge Anderson also said that Monge’s applying for passports in false names while on bond showed a lack of respect for the law.
The investigation into Monge was conducted by the Southern California Identity Theft Task Force which includes the Federal Bureau of Investigation, the Los Angeles County Sheriff’s Department, and the U.S. Department of State.
Florida Man Sentenced for Robbing Regions Bank in ColumbusRead the Press Release
Byron McCollum, age 67, of Lake Worth, Florida, was sentenced today to serve 32 years in Federal prison for the June 2, 2015 armed robbery of Regions Bank on Veterans Parkway in Columbus, announced U.S. Attorney G.F. “Pete” Peterman, III. The Honorable Clay D. Land, United States District Court Judge, handed down the sentence in Columbus. Mr. McCollum has an extensive criminal record which includes nine prior convictions for armed robberies of banks throughout the Southeastern United States.
Mr. McCollum was convicted of armed robbery, following a four-day jury trial, on March 3, 2016. Testimony at trial revealed that Mr. McCollum and Michael Lee Hall entered the bank on June 2, 2015 wearing masks, hats and gloves and brandishing handguns. Mr. Hall walked into the bank’s lobby and ordered a female employee to the floor. Mr. McCollum approached the bank counter and ordered a female customer to the floor. He then displayed a handgun and demanded a bank teller open the door to allow him access behind the bank counter.
Once behind the counter, Mr. McCollum emptied currency from the cash drawers into a backpack. The pair then drove off in a red Chevrolet Camaro. Further testimony revealed that Mr. McCollum had stolen the red Chevrolet Camaro from Trophy Ford in Forsyth, Georgia prior to the bank robbery. While the pair was still in the bank parking lot, dye packs exploded inside the backpack covering the money with dye. They then abandoned the Camaro and drove from Columbus to Macon in Mr. McCollum’s gray Cadillac with Mr. Hall driving and Mr. McCollum lying in the backseat with the handgun ready in case they were stopped by law enforcement. He claimed that he would shoot the officer as he passed the back window of the vehicle should that happen.
Michael Lee Hall pled guilty to bank robbery and possession of a firearm in furtherance of a crime of violence on August 3, 2015. He was sentenced by Judge Land to serve 234 months in prison on November 18, 2015 for his part in the crime. He was also ordered to pay restitution to Regions Bank. He also had a prior conviction for armed bank robbery in Columbus in 1994. Mr. Hall did not testify at Mr. McCollum’s trial.
The case was investigated by the Federal Bureau of Investigation, the Columbus Police Department, Bibb County Sheriff’s Office, Monroe County Sheriff’s Office, Crawford County Sheriff’s Office and Pinellas County, Florida Sheriff’s Office. Assistant United States Attorney Melvin E. Hyde, Jr. and Assistant United States Attorney Crawford Seals prosecuted the case on behalf of the Government.
Inquiries regarding this case should be directed to Pamela Lightsey, United States Attorney’s Office at (478) 621-2603.
Firearms Dealer Sentenced for Illegal Possession of Firearm and Lying to Federal AgentsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that WAYLON GIVENS, age 42, of Amite, was sentenced today after having pled guilty to illegal possession of a machine gun and making a false statement the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
U.S. District Judge Susie Morgan sentenced GIVENS to 5 years of probation and 15 weekends of incarceration. Judge Morgan also assessed GIVENS a $5000.00 fine and 100 hours of community service. As part of GIVENS’ plea, he agreed to surrender his federal firearms license.
According to court documents, in July 2014, ATF conducted an investigation into RH Custom, an internet company based in Sweden. RH Custom was selling “Glock Switches,” “Lightning Links,” suppressor builder’s kits (silencers) and other firearms components to customers in the United States. Some of these parts are designed to convert semi-automatic firearms to fully automatic firearms, in violation of the National Firearms Act. As a result of the investigation, ATF learned that between June 2012 through August 2012, GIVENS, a Federal Firearms Licensee, doing business as Givens Firearms, ordered and received seven (7) Lightning Links and four (4) Glock Switches. ATF learned of GIVENS’ purchases by reviewing invoices obtained in relation to the investigation of RH Custom.
On July 11, 2014, ATF interviewed GIVENS and informed him of the nature of the investigation and that agents were aware of his purchases from RH Custom. Agents advised GIVENS that if he surrendered the parts to ATF, he would not be arrested and prosecuted for the federal offenses that he committed in relation to his purchase of the parts. Agents advised GIVENS that the purpose of ATF’s investigation was to retrieve the parts that he received from RH Custom. GIVENS told ATF that he sold multiple “Glock full-auto conversion kits” and “Lightening Links” to an unknown individual, but that he did not know the location of the parts. After further investigation, it was determined that GIVENS had sold the illegal parts to known individuals whom he knew were in possession of the parts at the time of the ATF interview.
U.S. Attorney Polite praised the work of the ATF New Orleans Division Office in investigating this matter. Assistant United States Attorney Nolan D. Paige was in charge of the prosecution.
Final Defendant Pleads Guilty to Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., man – the eighth and final co-defendant – has pleaded guilty in federal court to his role in a conspiracy to distribute methamphetamine in the Springfield area.
Michael P. Ayala, 37, of Springfield, pleaded guilty before U.S. Magistrate Judge David P. Rush on Tuesday, July 5, 2016, to participating in a conspiracy to distribute methamphetamine, to possessing a firearm in furtherance of a drug-trafficking crime and to participating in a money-laundering conspiracy.
Co-defendant Ronda L. Easton, 53, of Springfield, pleaded guilty on Wednesday, June 29, 2016, to the same charges. Ayala and Easton are among eight co-defendants who have pleaded guilty, including Steven A. Easton, 49, James M. Parker, 46, Robert M. Cardenas, Jr., 28, Cody D. Keller, 33, and David M. Climer, 37, all of Springfield, and Michael D. Thompson, 58, of Goodyear, Ariz.
Ayala admitted that he supplied methamphetamine to Steven Easton for distribution in the Springfield area until his wife, Ronda Easton, was released from state prison and took over the methamphetamine distribution operation in Springfield. The methamphetamine arrived by mail and was transported by vehicles from Arizona. Ronda Easton sold pound quantities to Parker, Keller, and Climer. Thompson and Cardenas delivered the methamphetamine by vehicle from Arizona to Missouri.
Ronda Easton admitted that she had been distributing large amounts of methamphetamine that she purchased from Ayala. She paid Ayala $9,000 per pound of methamphetamine and sold it for $12,000 per pound. She stated that she received methamphetamine from Ayala every seven to 10 days and referred to one recent shipment of 10 pounds of methamphetamine.
On April 15, 2015, law enforcement officers in New Mexico stopped a Jeep Commander driven by Cardenas, with Thompson as a passenger, and seized approximately 14.5 pounds of methamphetamine hidden inside a compartment near the back of the vehicle. They also seized a bundle that contained 2,228 grams of methamphetamine inside a luggage bag. Cardenas told investigators that Ayala had paid him $1,700 to drive the vehicle from Arizona to Springfield.
The next day, a controlled delivery of methamphetamine was made to Ayala in Springfield. Ayala was arrested in a traffic stop and officers found a Springfield Armory 9mm semi-automatic pistol in the vehicle, as well as ammunition, syringes, and $19,231. Under the terms of today’s plea agreement, Ayala must forfeit the Jeep Commander, the firearm and ammunition, and the cash to the government.
On Jan. 5, 2015, law enforcement officers executed a search warrant at a residence shared by Ayala and Ronda Easton. They seized four large Tupperware containers containing a total of approximately 1.5 kilograms of pure methamphetamine, a black brief case containing baggies of methamphetamine and $1,520, a Taurus .410-caliber shotgun, a Cobra .380-caliber semi-automatic pistol, a loaded Quality Firearms .38-caliber revolver, a loaded Springfield Armory 9mm pistol, a Smith and Wesson .40-caliber pistol, and $14,779 in a purse.
Ayala and Ronda Easton admitted that they used the proceeds from distributing methamphetamine to buy assets, which also concealed the source of their proceeds, including a residential property and a 2012 Ford Mustang that must be forfeited to the government.
Under federal statutes, Ayala is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Nhan D. Nguyen. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, IRS-Criminal Investigation, the Springfield, Mo., Police Department, Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Missouri State Highway Patrol, the Yavapai County, Ariz., Sheriff’s Department, the Bernalillo County, N.M., Sheriff’s Department, and the Franklin County, Mo., Sheriff’s Department.
Federal Prison Inmate Charged with Assaults on Other InmatesRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Grand Jury in Harrisburg has indicted Tomas Gausin-Ceniseros, who is currently confined at the U.S. Penitentiary, Lewisburg, Pennsylvania, of assault resulting in serious bodily injury.
According to United States Attorney Peter Smith, Gausin-Ceniseros, age 39, is charged with alleged assault resulting in serious bodily harm. Gausin-Ceniseros allegedly committed the assaults against other inmates in separate incidents at USP Lewisburg in April 2013 and January 2014.
The investigation was conducted by the Federal Bureau of Investigation, and the Bureau of Prisons Special Investigative Service. Assistant United States Attorney George J. Rocktashel has been assigned to prosecute the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statues and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statutes is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine of $250,000.
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 necessarily an accurate indicator of the potential sentence for a specific defendant.
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Doctor Who Falsely Diagnosed Hundreds of Patients as Part of a Medicare Fraud Scheme Sentenced to PrisonRead the Press Release
Dr. Isaac Kojo Anakwah Thompson, M.D. 57, of Delray Beach, was sentenced today by United States District Judge William J. Zloch to 46 months’ imprisonment, to be followed by two years of supervised release, after having previously pled guilty to health care fraud. Dr. Thompson was further ordered to pay restitution in the amount of $2,114,332.33.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Assistant Attorney General William J. Baer, Special Agent in Charge George L. Piro, Federal Bureau of Investigation (FBI), Miami Field Office and Special Agent in Charge Shimon R. Richmond, Department of Health and Human Services, Office of Inspector General (HHS-OIG), Florida region, made the announcement.
According to the court record, including facts admitted during the defendant’s plea hearing and the parties’ statements at sentencing, Dr. Thompson engaged in a scheme to defraud the Medicare Advantage program, a voluntary system which allows Medicare beneficiaries to enroll in health insurance plans sponsored by private insurance companies. For each beneficiary who chooses to enroll in a Medicare Advantage plan, Medicare pays the sponsoring insurance company a fixed, or capitated, monthly fee. Medicare does not adjust the fee based on the cost of providing medical care to the beneficiary. Instead, Medicare adjusts the fee based on the beneficiary's medical conditions. As a result, Medicare generally pays a larger capitated fee for a beneficiary with more serious medical conditions than it does for a healthier beneficiary. Medicare determines a beneficiary's medical conditions in part using diagnoses submitted by the beneficiary's Medicare Advantage plan physician.
Dr. Thompson’s fraudulent conduct involved certain Medicare Advantage plans sponsored by Humana, Inc. These Humana plans operated as health maintenance organizations (HMOs) and each enrolled beneficiary selected a primary care physician (PCP) enrolled in Humana’s network. Before seeing a specialist, the beneficiary generally needed a referral from his or her PCP. Dr. Thompson was an internist who operated a medical clinic in Delray Beach and was a PCP in Humana’s HMO network. As such, a beneficiary enrolled in a Humana HMO Medicare Advantage plan could choose Dr. Thompson as the beneficiary’s PCP. Humana paid Dr. Thompson approximately 80% of the capitated fee for each beneficiary who had selected the defendant as his or her PCP.
Between 2006 and 2010, Dr. Thompson defrauded Medicare by diagnosing 387 Medicare Advantage beneficiaries with ankylosing spondylitis, a rare chronic inflammatory disease of the spine. Dr. Thompson reported these diagnoses to Humana, which in turn reported them to Medicare. As a result, Medicare paid approximately $2.1 million in excess capitation fees, approximately 80% of which went to the defendant. All or almost all of these ankylosing spondylitis diagnoses were false because in fact, the patients did not have the condition. Because the diagnoses were false, the defendant did not have any corresponding increase in his cost to treat the patients.
Mr. Ferrer and Mr. Baer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Marc Osborne and Trial Attorney Paul Gallagher, United States Department of Justice, Antitrust Division.
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.
District Man Sentenced to 100 Months in Prison for Shooting at Van Full of Police OfficersRead the Press Release
WASHINGTON – Shawn Gray, 25, of Washington, D.C., was sentenced today to 100 months in prison on charges stemming from a shooting in which he fired at an unmarked van full of police officers in Northeast Washington, U.S. Attorney Channing D. Phillips announced.
Gray earlier pled guilty, in the U.S. District Court for the District of Columbia, to charges of assault with a dangerous weapon, a District of Columbia offense, and possession of a firearm by a person convicted of a felony, a federal offense. He was sentenced by the Honorable Ellen S. Huvelle. Upon completion of his prison term, he will be placed on three years of supervised release. Gray has remained incarcerated since his arrest on Jan. 26, 2013.
According to the government's factual proffer, on Jan. 26, 2013, at about 7:10 p.m., officers of the Metropolitan Police Department (MPD) were operating an unmarked burgundy minivan in the 1600 block of Montello Avenue NE. The officers were wearing casual clothing and operating as a unit in a robbery intervention program.
As the officers drove through the block, they spotted Gray and another individual acting suspiciously. After the officers drove around and re-entered the block, Gray suddenly fired multiple gunshots at the van. One bullet entered the van and passed between the four officers inside, and others apparently hit houses across the street.
Gray fled, but was soon found hiding underneath a parked vehicle in the rear of the alleyway from which he had fired. Seven spent shell casings were found on the ground. The gun itself was ultimately recovered from the ground near where the defendant was seized. At the time of the shooting, Gray was on supervised release for a 2009 conviction in the Superior Court of the District of Columbia for carrying a pistol without a license.
In announcing the sentence, U.S. Attorney Phillips praised the work of the Metropolitan Police Department and the District of Columbia Department of Forensic Sciences. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including former Paralegal Specialist Starla Stolk, and Paralegal Specialists Tisha Tobias, Kim Hall, and Jessica Moffatt. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Vincent Caputy, who indicted the case, and Stephen J. Gripkey, who handled the case thereafter.
District Court Enters Permanent Injunction Against Alabama Seafood Manufacturer and Company’s Co-Owners to Prevent Distribution of Adulterated and Misbranded Seafood ProductsRead the Press Release
The U.S. District Court for the Southern District of Alabama entered a consent decree of permanent injunction against BEK Catering LLC dba Floppers Foods LLC of Daphne, Alabama, and its co-owners, Billy B. Stembridge and Kyle D. Huxen, to prevent the distribution of adulterated and misbranded seafood products, the Department of Justice announced today.
The Department filed a complaint in the Southern District of Alabama on July 1, at the request of the U.S. Food and Drug Administration (FDA). According to the complaint, BEK Catering prepares, processes, packs, holds, and distributes ready-to-eat seafood products, namely seafood soups sold under the names Shrimp Locksley and Mama’s Gumbo. The complaint alleged that the defendants caused food to become adulterated and misbranded.
“Adulterated and misbranded seafood products can create serious health risks for consumers,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work aggressively with the FDA to ensure a safe food supply.”
In conjunction with the filing of the complaint, the defendants agreed to settle the litigation and be bound by a consent decree of permanent injunction. As part of the settlement, the defendants represented that they are no longer engaged in the processing, packing, or holding of fish and fishery products from any location except for activities incidental to product transport and delivery. Under the permanent injunction, if the defendants intend to resume processing, packing, or holding fish or fishery products at or from any location, beyond activities incidental to transporting and delivering product, they must notify FDA in writing 90 days in advance, comply with specific remedial measures set forth in the injunction, and be subject to FDA inspection.
According to the complaint, Stembridge is a co-owner of BEK Catering and refers to himself as the firm’s “Managing Partner.” As alleged in the complaint, Stembridge has ultimate authority over all of the firm’s operations, including major financial expenditures, production processes, product distribution, and employee supervision. The complaint further alleged that Huxen is a co-owner of BEK Catering, responsible for BEK Catering’s compliance with FDA’s seafood processing regulations and training new employees, and shares responsibility with Stembridge for the firm’s operations.
As alleged in the complaint, the defendants caused the company’s food to become adulterated in that it was prepared, packed, or held under insanitary conditions whereby it may have become contaminated with filth, or whereby it may have been rendered injurious to health. For example, according to the complaint, during a 2015 inspection, FDA determined that the defendants failed to have adequate control over the risk of C. botulium and C. perfringens growth and toxin formation, failed to have adequate control over the risk of L. mono growth, and failed to have adequate control over the hazards posed by major food allergens and food additives.
C. botulinum is a bacterium that forms spores capable of producing a potent neurotoxin in food. People are susceptible to C. botulinum’s neurotoxin, and ingestion of even a small amount of the neurotoxin can cause botulism. Although the incidence of botulism is rare, the disease can cause paralysis and has a high mortality rate if treatment is not prompt and appropriate.
C. perfringen is a bacterium that causes foodborne illness. High doses of this bacterium can form a toxin in the digestive tract that results in illness. People can be sickened by C. perfringens’ toxin, which causes diarrhea and abdominal cramps and can produce more severe symptoms in the young and elderly.
L. mono. is the bacterium that causes listeriosis, a disease commonly contracted by eating food contaminated with L. mono. Listeriosis can be serious, even fatal, for vulnerable groups such as newborns and people with impaired immune systems. The most serious forms of listeriosis can result in meningitis and septicemia. Pregnant women may contract flu-like symptoms from listeriosis, and complications from the disease can result in miscarriage, or a life-threatening infection in the newborn.
As noted in the complaint, FDA has conducted five inspections of BEK Catering’s various manufacturing facilities dating back to 2011, and during each inspection, FDA found similar types of insanitary conditions and repeated violations of seafood Hazard Analysis and Critical Control Point regulations and current Good Manufacturing Practice regulations.
The government is represented by Counsel Melanie Singh of the Civil Division’s Consumer Protection Branch with the assistance of Senior Chief Counsel Claudia Zuckerman of the Food and Drug Division, Office of General Counsel, Department of Health and Human Services.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
Cochiti Pueblo Man Arraigned on Federal Indictment Alleging Violation of Migratory Bird Treaty ActRead the Press Release
ALBQUERQUE – Wayne Martin, 44, a member and resident of Cochiti Pueblo, N.M., was arraigned this morning in federal court in Albuquerque, N.M., on an indictment charging him with violating the Migratory Bird Treaty Act. During today’s proceedings, Martin entered a not guilty plea to the indictment.
The indictment alleges that Martin offered to sell three hawks without previously obtaining permission from the Secretary of the Department of the Interior, in violation of the Migratory Bird Treaty Act. According to the indictment, Martin committed the crime on Feb. 29, 2012, in Sandoval County, N.M. The Migratory Bird Treaty Act makes it unlawful to possess, offer for sale, or sell any migratory bird, or any part or product of a migratory bird.
The case was investigated by the U.S. Fish and Wildlife Service, and is being prosecuted by Assistant U.S. Attorney Jeremy Peña.
The U.S. Fish and Wildlife Service is the principal federal agency responsible for conserving, protecting and enhancing fish, wildlife and plants and their habitats for the continuing benefit of the American people. The Service manages the 95-million-acre National Wildlife Refuge System, which encompasses 545 national wildlife refuges, thousands of small wetlands and other special management areas. It also operates 69 national fish hatcheries, 64 fishery resources offices and 81 ecological services field stations. The agency enforces federal wildlife laws, administers the Endangered Species Act, manages migratory bird populations, restores nationally significant fisheries, conserves and restores wildlife habitat such as wetlands, and helps foreign and Native American tribal governments with their conservation efforts.
Clairton Man Sentenced to Prison for Gun and Drug Law ViolationsRead the Press Release
PITTSBURGH – An Allegheny County resident pleaded guilty and was sentenced in federal court to charges of violating federal firearms and narcotics laws, United States Attorney David J. Hickton announced today.
Derrick Middlebrook, 27, of Clairton, Pa., pleaded guilty to two counts before United States District Judge Terrence F. McVerry.
In connection with the guilty plea, the court was advised that on or about April 21, 2016, Middlebrook, being a convicted felon, illegally possessed a Springfield Armory, Model XD-40, .40 caliber pistol, with an extended capacity magazine, and .40 caliber ammunition. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year to possess a firearm and/or ammunition.
Additionally, on or about April 21, 2016, Middlebrook possessed with intent to distribute less than 100 grams of a mixture and substance containing a detectable amount of heroin, a Schedule I controlled substance.
At the time that Middlebrook committed these crimes, he was on federal supervised release for a prior federal drug-trafficking conviction (10-cr-235).
Following Middlebrook’s guilty plea, Judge McVerry sentenced him to 84 months imprisonment (70 months for the criminal offenses and 14 months for the supervised release violation), followed by 36 months supervised release.
Assistant United States Attorney Amy L. Johnston prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Marshals Service and the U.S. Probation Office for the investigation leading to the successful prosecution of Middlebrook.
Carrizo Springs-Based Alien Smuggling Operation Ringleader Sentenced to Life in Federal PrisonRead the Press Release
In Del Rio today, 45–year-old Eduardo Rocha, Sr. (aka “Lalo”), was sentenced to life in federal prison for his leadership role in an undocumented alien smuggling ring operating in Carrizo Springs, TX, that tortured victims while waiting for ransom payments announced United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden and Dimmit County Sheriff Marion Boyd.
In addition to the prison term, United States District Judge Alia Moses ordered that Rocha pay $10,481.20 restitution to his victims and forfeit to the Government his real property located in Carrizo Springs where the crimes were committed.
“As this sentence makes clear, those who exploit people in this brutal way will themselves face serious consequences,” said Special Agent in Charge Shane Folden, HSI San Antonio. “Alien smugglers view their clients as nothing more than a payday and they have no qualms about using threats and violence to collect their smuggling fees.”
On April 23, 2015, a federal jury convicted Rocha of two counts of conspiracy to commit hostage taking; conspiracy to transport illegal aliens involving serious bodily injury; conspiracy to transport illegal aliens involving serious bodily injury; and, three separate counts of harboring an illegal alien involving serious bodily injury.
Evidence presented during trial revealed that Rocha, Sr. operated his smuggling cell between Carrizo Springs and Piedras Negras, Mexico since at least 2013. Rocha, Sr. claimed to be affiliated with Los Zetas, a trans-national Drug Trafficking Organization operating out of Mexico. Members of Rocha, Sr.’s cell had used buildings located at Rocha’s Carrizo Springs property to hold the illegal aliens before transport further into the United States. Witnesses testified that Rocha held the aliens against their will in an effort to extort more money from family members in the United States.
Evidence also revealed that Rocha ordered his accomplices to torture the illegal aliens being held captive in an effort to extort money. A female was raped multiple times, and family members were made to listen over the telephone as aliens were tortured with a hammer, and threatened with decapitation and mutilation. A family member in Virginia called 911, which prompted a rescue operation by Dimmit County Sherriff’s Deputies, Agents with Homeland Security Investigations, and U.S. Border Patrol on May 4, 2014.
Today, Judge Moses also sentenced two co-conspirators--34-year-old Atanacio Daniel Castro and 24–year-old Eduardo Rocha, Jr.—to 20 and 15 years in federal prison, respectively, for their roles in the criminal operation.
Three other codefendants--40-year-old Christopher Jones, 34-year-old Tara Cournoyer, and 27–year-old Esmeralda Cruz--were sentenced last year to 66 months, 65 months and 71 months in federal prison, respectively, for their roles in the conspiracy to harbor undocumented aliens involving serious bodily injury.
This case was investigated by HSI agents out of Eagle Pass, TX, with the support of the Dimmit County Sheriff’s Office, U.S. Border Patrol, and the Texas Department of Public Safety criminal laboratory. The case was prosecuted by Assistant United States Attorneys Matthew Watters and Patrick Burke.
Brooklyn, New York Man Pleads Guilty to Sex Trafficking and Drug DistributionRead the Press Release
The Office of the United States Attorney for the District of Vermont announced today that Diheim Young, age 32, of Brooklyn, New York has pleaded guilty to a conspiracy to distribute heroin and crack cocaine in Rutland, Vermont as well as a conspiracy to engage in sex trafficking women between Vermont and New York. Young pleaded guilty to sex trafficking five women between 2012 and 2015. Four of the women were Vermont residents at the time they were trafficked.
According to the public record, Young worked with a series of women who assisted him in the drug trade. These women sold drugs for him, transported him to meet drug customers in and around Rutland, Vermont and transported him to New York City to pick up drugs from his source of supply. When the women were sufficiently addicted to be dependent upon him, Young turned their addictions against them as a means of controlling them. With some of the women, he convinced them to travel to New York City with him under false pretenses and once there, he forced them to prostitute themselves either by posting advertisements on a website called Backpage or by forcing them to walk what is known as “the track.” If the women refused to engage in prostitution, Young withheld drugs from those who were addicted knowing that they would get sick from withdrawal. Young would also hit the women or threaten to hit them if they refused to do as Young said or attempted to escape.
With some of the Vermont women, Young also confiscated their cell phones and identification documents as a means of isolating and controlling them once they were in New York. One of Young’s siblings made his apartment in Brooklyn, New York, available for use as part of the sex trafficking scheme. This residence was used as a location to photograph the women for purpose of creating Backpage advertisements, which Young used to advertise some of the women for sale to potential sex buyers. Young also held the women at the Brooklyn apartment where he assaulted them physically and sexually if they refused to engage in commercial sex acts or tried to leave him. Young took the proceeds earned by the women for engaging in forced prostitution and threatened them that if they stopped providing him with these prostitution proceeds, he would harm them further.
Young is scheduled to be sentenced on November 7, 2016. At sentencing, Young faces up to lifetime imprisonment for the sex trafficking crimes, as well as a maximum of five years supervised release, a $5,000 special assessment, and mandatory restitution for the victims. His sentence will be advised by the Federal Sentencing Guidelines.
United States Attorney Eric Miller commends the investigative efforts of the Federal Bureau of Investigation, the Southern Vermont Drug Task Force, and the Rutland Police Department, who worked together in this investigation. Miller highlighted the United States Attorney's Office’s intense focus on preventing and prosecuting human trafficking in Vermont. In November 2015, the Office produced a public service announcement designed to help prevent human trafficking and to put trafficking victims in touch with the services they need. That PSA, which won a national Telly Award, can be viewed at UCanStopTraffick.org. In the wake of Mr. Young's guilty plea, Miller added, "Our office is equally committed to preventing and prosecuting human trafficking in Vermont. This case demonstrates that we will vigorously investigate and hold accountable drug dealers who coerce addicts into performing commercial sex for profit."
The United States is represented in this case by Assistant U.S. Attorney Heather E. Ross. The defendant is represented by Assistant Federal Public Defender Elizabeth Quinn.
Brooklyn Man Pleads Guilty to Facilitating $6 Million Food Stamp Fraud in New YorkRead the Press Release
Earlier today, Fowzi Naji Tareb pled guilty at the federal courthouse in Brooklyn, New York, to defrauding the United States Department of Agriculture in connection with its Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program. Tareb was arrested after providing numerous retail businesses in the New York area with the machinery to accept SNAP benefits even though they were not authorized to do so.
The guilty plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and William Squires, Special Agent-in-Charge, Northeastern Region, United States Department of Agriculture, Office of Inspector General.
The federal government, through the United States Department of Agriculture, Food and Nutrition Service (FNS), administers the SNAP program. SNAP utilizes federal tax dollars to subsidize low income households, affording such households the opportunity to achieve a more nutritious diet by increasing their food purchasing ability.
In New York, individuals who receive SNAP benefits no longer redeem their benefits by using paper food stamp coupons, but rather redeem them electronically through the use of an Electronic Benefits Transfer (EBT) card, which operates much like ATM cards. The EBT cards may be used by recipients to purchase eligible food items at retail food stores that are authorized by FNS to participate in SNAP and have EBT terminals located in the stores. As a purchase is made, the retailer runs the EBT card through the terminal, and the amount of the purchase is deducted from the recipient’s card. The purchase amount is then electronically credited to the retail food store owner’s bank account.
SNAP benefits may be accepted by authorized retailers only in exchange for eligible food items. Items such as beer, cigarettes, paper goods, and soaps are not eligible for purchase. SNAP benefits may not lawfully be exchanged for cash under any circumstances and may not lawfully be used to pay off credit accounts. SNAP benefits may be accepted only by retailers authorized to participate in SNAP by FNS.
Tareb used his position as an agent at Century Payments, a third-party vendor and distributor of EBT terminals, to provide EBT terminals capable of processing SNAP benefits and authorization codes to more than 25 retailers that were not authorized by FNS to accept SNAP benefits. In doing so, Tareb facilitated more than $6 million in unauthorized SNAP transactions and enabled the unlawful exchange of SNAP benefits for cash.
In announcing the guilty plea, Mr. Capers extended his grateful appreciation to the United States Department of Agriculture, Office of Inspector General.
Today’s guilty plea proceeding was held before United States Magistrate Judge Steven M. Gold. When sentenced, Tareb faces up to 20 years in prison, as well as forfeiture and a fine.
The government’s case is being prosecuted by Assistant United States Attorney Saritha Komatireddy.
The Defendant:
FOWZI NAJI TAREB
Age: 43
Brooklyn, New YorkE.D.N.Y. Docket No. 15-CR-038
Bogalusa Man Sentenced for Oxycodone DistributionRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOSEPH POUNDS, age 47, of Bogalusa, was sentenced today for three counts of selling oxycodone tablets to an undercover Drug Enforcement Administration (DEA) agent. Oxycodone is a prescription-only Schedule II controlled substance and a highly addictive and abused opioid drug.
U.S. District Judge Kurt D. Engelhardt sentenced the defendant to a term of imprisonment of twelve months and one day, three years of supervised release, and a $300 special assessment.
U.S. Attorney Polite praised the work of the DEA Tactical Diversion Squad in investigating this matter. Assistant United States Attorney Michael B. Redmann was in charge of the prosecution.
Berkeley County man charged with failure to register as a sex offenderRead the Press Release
CLARKSBURG, WEST VIRGINIA – A federal grand jury returned an indictment charging Saul Hicks Williams, 35, of Inwood, West Virginia with failure to register as a sex offender, United States Attorney William J. Ihlenfeld, II, announced.
From September 2015 through November 2015, Williams failed to register and update his registration as a sex offender in Berkeley County, WV. Williams is required to register under the Sex Offender Registration and Notification Act by reason of a conviction under state law, to wit: Sexual Assault in the Third Degree, in the Circuit Court of Berkeley County, West Virginia.
Williams is charged with one count of “Failure to Register as a Sex Offender.” He faces up to ten years in prison and a fine 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 Anna Z. Krasinski is handling the case on behalf of the government. The United States Marshals Service is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Belle Fourche Man Convicted of Drug ConspiracyRead the Press Release
United States Attorney Randolph J. Seiler announced that Anthony Klein a/k/a Tony Klein, age 35, of Belle Fourche, South Dakota, was found guilty of Conspiracy to Distribute a Controlled Substance following a 3-day federal jury trial in Rapid City, South Dakota. The jury returned the verdict on July 1, 2016.
The charge carries a maximum penalty of a minimum of 5 years and not more than 40 years in custody and/or a $5,000,000 fine, 4 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
The Indictment charged that in the Spring of 2014, Klein conspired and agreed with other persons to intentionally distribute 50 grams or more of methamphetamine in South Dakota.
This case was investigated by the Unified Narcotics Enforcement Team, United States Drug Enforcement Administration, Butte County Sheriff’s Office, Belle Fourche Police Department, South Dakota Division of Criminal Investigation, and the Rapid City Police Department. Assistant U.S. Attorneys Megan Poppen and Eric Kelderman prosecuted the case.
A presentence investigation was ordered and a sentencing date will be set. The defendant was remanded to the custody of the U.S. Marshals Service.
Baltimore Man Pleads Guilty to Federal Charge for Obstructing Firefighters’ Efforts to Fight CVS Fire During Baltimore RiotsRead the Press Release
Baltimore, Maryland – Gregory Lee Butler, Jr., a/k/a Greg Baly, age 22, of Baltimore, pleaded guilty today to the federal indictment charging him with obstruction of firefighters during a civil disorder, in connection with a fire at CVS during the civil disturbance in Baltimore on April 27, 2015.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; Maryland State Fire Marshal Brian Geraci; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to the information presented at today’s plea hearing, on April 27, 2015, riots erupted in Baltimore and at approximately 6:30 p.m. the Baltimore City Fire Department (BCFD) was notified of a fire at the CVS Pharmacy located at 2509 Pennsylvania Avenue, which is adjacent to the intersection of Pennsylvania Avenue and West North Avenue in Baltimore. Several BCFD engines were dispatched to suppress and extinguish the fire at the CVS. Firefighters deployed fire hoses to provide water in those efforts and to protect firefighters inside and near the building. Throughout the course of BCFD’s fire suppression and extinguishment efforts, rioting continued in the vicinity of CVS Pharmacy.
One hose was attached to a hydrant near the intersection of Pennsylvania and West North Avenues. Once the hose was attached to the hydrant and the water was flowing into the hose, Butler admitted that he punctured the hose twice using a knife. Both punctures released a high-pressure stream of water from the hose and rendered the hose inoperable. As a result, the efforts to put out the fire at the CVS were impeded and delayed.
Butler faces a maximum sentence of five years in prison for obstruction of firefighters during a civil disorder. U.S. District Judge J. Frederick Motz has scheduled sentencing for September 20, 2016, at 9:30 a.m.
Federal prosecutors have charged four other defendants for arson crimes committed during the Baltimore riots on April 27, 2015. Trevon Green, age 23, of Baltimore, is charged with malicious destruction of property by fire, for allegedly setting fire to a food store on North Monroe Street. Darius Raymond Stewart, age 22, of Baltimore, pleaded guilty to malicious destruction of property by fire, arising from the arson of a liquor store. Stewart is scheduled to be sentenced on August 3, 2016. Donta Betts, age 20, of Baltimore, was sentenced to 15 years in prison for making a destructive device in connection with the April 27, 2015, riots in Baltimore and, in an unrelated case, for discharge of a firearm in furtherance of a drug trafficking crime on July 2, 2015. Raymon Carter, age 25, of Baltimore, Maryland, pleaded guilty to the federal crime of rioting, including the arson of the CVS Pharmacy on April 27, 2015, and was sentenced to four years in prison and ordered to pay restitution of $500,000.
The investigation into arsons that occurred on April 27, 2015, is continuing. Anyone with information is urged to call the ATF hotline, 1-888-ATF-FIRE (1-888-283-3473). ATF continues to offer a reward of up to $10,000 for information leading to the arrest and conviction of any individual responsible for these incidents.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, Maryland State Fire Marshal’s Office and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Philip A. Selden and Matthew J. Maddox, who are prosecuting the case.
Anthony Sentenced for Conspiracy to Commit BriberyRead the Press Release
Gulfport, Miss – Sean Hyatt Anthony, 41, of Biloxi, MS was sentenced to probation for conspiracy to commit bribery concerning programs receiving federal funds and honest services wire fraud by United States District Judge Keith Starrett in U.S. District Court in Gulfport today announced United States Attorney Gregory K. Davis.
Anthony, who has been on bond since March 3 2015, was sentenced to serve the first 6 months of probation on house arrest. District Judge Starrett also ordered Anthony pay a fine of $50,000 and entered a forfeiture money judgment in the sum of $349,720.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service.
Andrew Caspersen Pleads Guilty in Manhattan Federal Court to Defrauding Investors of over $38 Million and Misappropriating over $8 Million from His Former EmployerRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that ANDREW CASPERSEN pled guilty to defrauding investors of over $38 million and misappropriating over $8 million from his former employer. CASPERSEN pled guilty to one count of securities fraud and one count of wire fraud before U.S. District Judge Jed S. Rakoff.
Manhattan U.S. Attorney Preet Bharara stated: “Andrew Caspersen’s guilty plea today closes a sad chapter in a tale of deception and betrayal. Parlaying his privileged background, Caspersen concocted a wild fraud scheme that involved made-up private equity ventures, fake email addresses, and fictional financiers. Through a litany of lies, Caspersen took millions from unwitting investors, including some of his own family and friends.”
According to allegations contained in the Information filed against CASPERSEN and statements made in related court filings and proceedings:
The Scheme to Defraud Investors
Beginning in November 2014 and continuing until his arrest in March 2016, CASPERSEN engaged in a Ponzi-like scheme to defraud investors, including his close friends, family members, and college classmates, by falsely claiming that their funds would be used to make secured loans to private equity firms and would thereby earn an annual rate of return of 15 to 20 percent. In total, CASPERSEN attempted to defraud more than a dozen investors of nearly $150 million. As a result of the false and fraudulent representations made by CASPERSEN, investors wired a total of approximately $38.5 million to shell company bank accounts controlled by CASPERSEN. In truth and in fact, CASPERSEN never used investor funds to make the secured loans that had been promised. Instead, CASPESEN used investor funds for purposes that investors had not authorized, including to make securities trades in his own brokerage account and to make periodic interest payments to earlier investors.
In order to carry out his scheme to defraud investors, CASPERSEN incorporated entities with names closely resembling those of legitimate private equity funds (the “Legitimate Funds”). However, the entities incorporated by CASPERSEN (the “Fake Funds”) were merely shell companies created by CASPERSEN solely for the purpose of perpetrating his fraud scheme, and were in no way affiliated with or authorized by the Legitimate Funds. CASPERSEN opened and controlled bank accounts for each of the Fake Funds (the “Fake Fund Accounts”).
In soliciting investments in the Fake Funds, CASPERSEN made the following false representations to investors, among others: in recognition for his prior work with Park Hill Group, CASPERSEN had been offered a “friends and family” investment allocation in a security that was allegedly offered by a private equity firm; CASPERSEN was personally investing in the security, and offering it to his family and a limited number of friends; the investment was a credit facility secured by a portfolio of assets owned by one of the Legitimate Funds; the investor would receive quarterly interest payments, ranging from 15 to 20 percent; the investment was practically risk-free, as the loaned funds would remain in a bank account; the investor could withdraw the principal at any time with 90 days’ notice; and investor funds should be wired to one of the Fake Fund Accounts. The purported involvement of the Legitimate Funds was an attractive selling point for investors.
As the scheme evolved, CASPERSEN also made additional misrepresentations in soliciting investors in connection with a purported investment opportunity in one of the Fake Funds CASPERSEN had created (“Fake Firm-5 Fund”) to resemble one of the Legitimate Funds (“Firm-5 Fund”). CASPERSEN had been employed at a multinational firm as an investment principal from 2003 through 2012 (“Firm-1”). According to CASPERSEN’s false statements to investors, Firm-1 wanted to purchase secondary ownership interests in Firm-5 Fund. Due to uncertainty that Firm-1 could buy out all the original investors, Park Hill Group offered to make a loan to Firm-1, and Firm-1 agreed to take a loan from Park Hill Group. CASPERSEN and Park Hill Group were working on behalf of Firm-1 to solicit investors for the loan, but, at some point after Firm-1 agreed to take the loan, it transpired that Firm-1 did not need the loan in order to purchase the secondary private equity interests. However, because Firm-1 had already agreed to the loan, Firm-1 was obligated to pay interest on the loan. CASPERSEN told potential investors that the loan was risk-free, as it was collateralized by the assets of Firm-1. As with the earlier solicitations in the Fake Funds, investors were similarly misled by the purported involvement of the legitimate Firm-5 Fund in this investment.
To carry out the scheme, CASPERSEN registered a domain name and created a fake email address to make it appear that a “John Nelson” from Firm-1 was communicating with investors. CASPERSEN obtained recent quarterly and annual reports for the Legitimate Funds, and sent such reports to prospective investors to induce them into believing that their investments would be secured by the assets of the Legitimate Funds, when in fact they were not. CASPERSEN also drafted promissory notes between investors and the Fake Funds, in which CASPERSEN made one or more of the following misrepresentations, among others: the Fake Fund would pay the investor his or her principal “in immediately available funds” together with interest on the unpaid principal; the interest on the outstanding unpaid balance would accrue at an annual rate of 15 to 20 percent; interest would be paid quarterly; upon 90 days’ notice to the Fake Fund, the investor may redeem his or her principal; and the Fake Fund “shall maintain cash or cash equivalents in an amount equal to or greater than” the total of the outstanding principal and accrued but unpaid interest.
In connection with the scheme, CASPERSEN received approximately 18 payments, in a total amount of approximately $38.5 million, from more than 10 individuals and entities for investments in the Fake Funds. Notwithstanding CASPERSEN’s statements to the contrary, CASPERSEN never used any investor funds to make any loan to any entity, or otherwise invest in any fund or investment vehicle associated with any private equity fund. Rather, CASPERSEN operated a Ponzi-like scheme in which he misappropriated investor funds from the Fake Fund Accounts and converted them to his own use and use by others, including by using investor funds to meet CASPERSEN’s periodic interest payment commitments to earlier investors. CASPERSEN transferred the funds he received from investors into his personal brokerage accounts, and used the funds to execute securities trades for his own benefit. Specifically, CASPERSEN traded heavily in options, including options based on the Standard & Poor’s Depository Receipts S&P 500, an exchange-traded fund based on the S&P 500 with ticker symbol “SPY,” and options based on PowerShares QQQ, an exchange-traded fund based on the Nasdaq 100 Index. For example, CASPERSEN’s trades of SPY options with November 2015 expiration dates caused approximately $14.5 million in losses. By mid-February 2016, as a result of CASPERSEN’s trading activity, his brokerage account contained approximately $112.8 million in cash, an amount which would have been more than sufficient for CASPSERSEN to repay all of his investors. Rather than repay his investors, however, CASPERSEN continued trading in options based on the performance of the S&P 500 Index. From February 11, 2016, through March 9, 2016, CASPERSEN lost approximately $108.2 million in options trading.
The Scheme to Divert Funds from the Park Hill Group
From January 2013 through March 2016, CASPERSEN was employed in the secondary advisory group at Park Hill Group. In July 2015, CASPERSEN opened a bank account under the name “PHG Operating LLC,” which was controlled by CASPERSEN for his own benefit and was unknown to Park Hill Group (the “Fake PHG Account”).
In September 2015, following instructions provided by CASPERSEN, Firm-5 sent a wire transfer in the amount of $8,137,453, representing payment for legitimate work that Park Hill Group had done, to the Fake PHG Account, believing it to be a legitimate account used by Park Hill Group. On or about the same day, CASPERSEN transferred $8 million from the Fake PHG Account to his brokerage account, in order to execute trades in securities for his own benefit, largely in SPY options. In November 2015, CASPERSEN transferred approximately $8.1 million to an account belonging to Park Hill Group, thereby replacing the payment from Firm-5 that he had misappropriated. The $8.1 million transfer was traceable to funds that CASPERSEN had obtained by defrauding investors as described above. Also in the fall of 2015, CASPERSEN engaged in a similar fraud with respect to a $762,267 payment that he misappropriated from Park Hill Group, and later repaid using the proceeds of his securities fraud scheme.
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CASPERSEN, 39, pled guilty to one count of securities fraud and one count of wire fraud. Each count carries a maximum term of 20 years in prison. The maximum fine on these counts is $5 million, or twice the gross gain or loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
CASPERSEN’s sentencing is scheduled for November 2, 2016.
Mr. Bharara praised the work of the Office’s criminal investigators, and thanked the Securities and Exchange Commission for its assistance.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Christine I. Magdo is in charge of the prosecution.
Alleged Concert Promoter and Attorney Plead Guilty to FraudRead the Press Release
Herbert Franklin Green, a 47-year old lawyer from Washington, DC, pled guilty today before the Honorable Juan R. Sanchez to conspiracy to commit wire fraud and wire fraud. Co-defendant Marc Hubbard, 49 years old from Cornelius, NC, pled guilty last Thursday. The defendants pled guilty to perpetrating a scheme to defraud investors in a purported concert promotion business that Hubbard owned called Sports Dimensions, Inc. (“SDI”). Hubbard lied to investors when he represented that their investments were being used to promote well-known artists like Beyonce, JayZ, and Alicia Keys. Instead, their money was being used to pay off previous investors and for the defendants’ own personal use. Green, formerly with Cozen and O’Connor and who also previously worked at the SEC, prepared the promissory notes for the fraudulent investments and provided legitimacy to the scheme. During the course of the scheme, the defendants provided investors with fraudulent documentation to induce them to invest more money and convince them that their investments were secure.
Hubbard, who pled guilty to the eight-count indictment, faces a possible statutory maximum sentence of 160 years’ imprisonment, a three-year period of supervised release, and a $2,000,000 fine or twice the gain or loss. Green who pled guilty to two counts faces a possible statutory maximum sentence of 40 years’ imprisonment, a three-year period of supervised release, and a $500,000 fine or twice the gain or loss. Judge Sanchez scheduled Hubbard’s sentencing for September 29, 2016 and Green’s for October 12, 2016.
This case was investigated by the Postal Inspection Service and Federal Bureau of Investigation and is being prosecuted by Jennifer Chun Barry.
Tuesday 5 July 2016
Wichita Man Sentenced, Partner Pleads Guilty in Gas Station RobberiesRead the Press Release
WICHITA, KAN. – A Wichita man was sentenced Tuesday to more than 15 years in federal prison for robbing two Wichita gas stations, Acting U.S. Attorney Tom Beall said. Also Tuesday, a co-defendant in the same case pleaded guilty.
Roy E. Walls-Guiden, 29, Wichita, Kan., was sentenced Tuesday to 188 months in federal prison. He pleaded guilty to two counts of robbing a commercial establishment.
Demon L. Anderson, 27, Wichita, Kan., pleaded guilty Tuesday to two counts of robbing a commercial establishment.
In their pleas, the defendants admitted that on Dec. 4, 2015, they robbed a Valero gas station at 248 S. Hillside in Wichita. They entered the store while the clerk was outside and began taking cash and cigarettes. When the clerk returned, Walls-Guiden pointed a .40 caliber handgun at him. Then the defendants fled the store.
Later that same night, the defendants tried to rob a Petro America gas station at 2838 W. Central in Wichita. The defendants did not know that a police officer had set up surveillance on the store and called for backup when he saw the defendants enter. The defendants were arrested at the scene.
Anderson is set for sentencing Sept. 20. He faces a penalty of up to 20 years and a fine up to $250,000 on each count.
Beall commended the Wichita Police Department, the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.
Virginia Man Sentenced to 15 Months in Prison for Conspiring to Illegally Obtain Federal ContractsRead the Press Release
WASHINGTON – Tarsem Singh, 61, a businessman from Fairfax, Va., was sentenced today to 15 months in prison for conspiring to commit fraud on the United States by illegally obtaining over $6 million in contracts that were meant for small, disadvantaged businesses.
The sentencing was announced by U.S. Attorney Channing D. Phillips; Carol Fortine Ochoa, Inspector General of the U.S. General Services Administration (GSA); Peggy E. Gustafson, Inspector General for the U.S. Small Business Administration (SBA); and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office.
Singh pled guilty to the charge in December 2015 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Reggie B. Walton. Judge Walton also fined Singh $25,000 and ordered him to pay $119,165 in restitution. After his prison term, Singh will be placed on three years of supervised release and required to perform community service.
The fraudulent activities involved the U.S. Small Business Administration’s 8(a) program, a program named for Section 8(a) of the Small Business Act. This program was created to help small, disadvantaged businesses compete in the American economy and access the federal procurement market. To qualify for the 8(a) program, a business must be at least 51% owned and controlled by a U.S. citizen (or citizens) of good character who meet the SBA’s definition of socially and economically disadvantaged. The firm also must be a small business (as defined by the SBA) and show a reasonable potential for success. Participants in the 8(a) program are subject to regulatory and contractual limits. Also, under the program, the disadvantaged business is required to perform a certain percentage of the work.
According to the government’s evidence, from Jan. 12, 2000, through January 12, 2009, Singh and his wife, through a firm described in court documents as “Company A,” which specialized in construction and renovating and altering buildings, obtained millions in federal contracts. On Jan. 12, 2009, “Company A” graduated from the SBA’s 8(a) program and was no longer eligible for contracts awarded through the program.
On Jan. 12, 2009 - the same day that “Company A” graduated from the 8(a) program – “Company A” assisted a firm described in court documents as “Company B” apply to the 8(a) program. “Company B” was certified to participate in the 8 (a) program on May 1, 2009. Shortly after “Company B” was certified, Singh caused himself to be named its vice president.
As the vice president of “Company B,” Singh was contacted by government personnel about federal contracts and, in some circumstances, made the decision on whether the company would bid on these projects. However, “Company B” was little more than a shell company that “Company A” helped create as it was graduating from the 8(a) program. “Company B” lacked the employees to perform the 15% of the labor it was required to provide on the projects that Singh bid. Throughout the life of the contracts obtained through this scheme, “Company B” had only one employee who performed work on the projects it was awarded. Singh used a combination of “Company A” personnel and sub-contractors to staff projects awarded to “Company B.”
From August 2009 through December 2010, “Company B” obtained a total of $6,808,552 in more than 25 federal contracts in this manner from the General Services Administration. The scheme generated at least $90,397 in profits for “Company A.” In addition, Singh received at least $28,768 in compensation attributable to the contracts.
To disguise the activities, Singh took a variety of steps, including:
- Obtaining magnetic logos bearing the name of “Company B”
- Directing a “Company A” employee to place “Company B’s” magnetic logos on a “Company A” vehicle when the vehicle would be used at construction sites for projects awarded by GSA.
- Using and directing other “Company A” employees to use “Company B” e-mail accounts when corresponding with the government about contracts awarded to “Company B.”
- Instructing “Company A” employees to tell GSA representatives that they were representing “Company B” on certain jobs.
This investigation was conducted by the Inspector General’s Offices of the U.S. General Services Administration and the U.S. Small Business Administration and the FBI’s Washington Field Office. The prosecution was handled by Assistant U.S. Attorneys Matt Graves and John Marston of the Fraud and Public Corruption Section of the U.S. Attorney’s Office.
Two Former South Texas School Board Members and Middleman Sentenced for Attempted ExtortionRead the Press Release
McALLEN, Texas - Two former elected members of the School Board of Donna and a private citizen who served as a middleman were sentenced today for accepting bribes in connection with a services contract held by the Donna Independent School District (DISD), announced U.S. Attorney Kenneth Magidson and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
Eloy Infante, 54, Elpidio Yanez Jr., 45, and Adrian Guerrero, 50, all from Donna, were sentenced to 46, 37, and 18 months, respectively. The defendants pleaded guilty in January 2016 to attempted interference with commerce by extortion. Infante and Yanez were both members of the Donna School Board when they committed the attempted extortion. U.S. District Judge Randy Crane imposed the sentences.
In connection with their pleas, the defendants admitted that from February to May 2015, they attempted to extort, and solicited and accepted bribes from, an individual whose company provided services to the DISD. Specifically, the defendants informed the individual that in order for his company to keep its services contract with the DISD, he needed to pay Infante and Yanez $10,000 each, they admitted. Both Infante and Yanez admitted they accepted partial payment of the bribes, and Guerrero admitted that he served as the middleman for one of the payments.
The FBI investigated this case. Assistant U.S. Attorney Leo J. Leo III Trial prosecuted the case along with Trial Attorney Monique Abrishami of the Criminal Division’s Public Integrity Section.
Two Former South Texas School Board Members and Middleman Sentenced for Attempted ExtortionRead the Press Release
Two former elected members of the School Board of Donna, Texas, and a private citizen who served as a middleman were sentenced today in the Southern District of Texas for accepting bribes in connection with a services contract held by the Donna Independent School District (DISD), announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Eloy Infante, 54, Elpidio Yanez Jr., 45, and Adrian Guerrero, 50, all from Donna, were sentenced to 46 months, 37 months and 18 months in prison, respectively. The defendants pleaded guilty in January 2016 to attempted interference with commerce by extortion. Infante and Yanez were both members of the Donna School Board when they committed the attempted extortion. U.S. District Judge Randy Crane of the Southern District of Texas imposed the sentences.
In connection with their pleas, the defendants admitted that from February to May 2015, they attempted to extort, and solicited and accepted bribes from, an individual whose company provided services to the DISD. Specifically, the defendants informed the individual that in order for his company to keep its services contract with the DISD, he needed to pay Infante and Yanez $10,000 each, they admitted. Both Infante and Yanez admitted that they accepted partial payment of the bribes and Guerrero admitted that he served as the middleman for one of the payments.
The FBI investigated this case. Trial Attorney Monique Abrishami of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Leo J. Leo III of the Southern District of Texas prosecuted the case.
Troy Man Sentenced for Health Care FraudRead the Press Release
ALBANY, NEW YORK – John VonFricken, age 51, of Troy, New York, was sentenced today to 3 years of probation and 3 months of weekend incarceration at the Rensselaer County Jail for defrauding a union health plan of $54,000, announced United States Attorney Richard S. Hartunian.
The sentence was issued by U.S. District Judge Mae A. D’Agostino and followed the defendant’s guilty plea, on February 3, 2016, to obtaining false receipts for orthodontic services and submitting them to his union’s health care plan.
As part of his sentence, John VonFricken must also complete 50 hours of community service and pay back the $54,600 that he fraudulently obtained from the Health and Welfare Plan of the Plumbers and Steamfitters, Local Union Number 7.
John VonFricken’s brother, Michael, also of Troy, is scheduled to be sentenced on July 18 for defrauding the same union health plan. He also pled guilty in February to fraud, and to obtaining $32,732 in reimbursements for orthodontic work that he did not receive.
This case was investigated by the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and the Federal Bureau of Investigation, and was prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.
Toledo man faces charge related to firearms recordsRead the Press Release
An information was filed charging Dimitar Trampevski, 28, of Toledo, with making a false entry or failure to make an entry in records by a federal firearms dealer, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The case is being handled by Assistant U.S. Attorney Tracey Ballard Tangeman following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives in Toledo.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Stockton Woman Pleads Guilty in Phony Tax Return SchemeRead the Press Release
FRESNO, Calif. — Vivian Marie Williams, 51, of Stockton, pleaded guilty today to a conspiracy to submit false claims for income tax refunds and to identity theft, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, Williams was a tax preparer who operated out of her home in Stockton, using the business name Williams Financial Service. Between January 2010 and March 2011, Williams submitted tax returns for both legitimate clients and in the names of victims of identity theft. The tax returns for legitimate clients reported inflated business and wage income, which allowed the taxpayers to claim a higher tax refund as a result of the Earned Income Tax Credit and the Child Tax Credit. The tax returns for victims of identity theft were submitted without the knowledge of the taxpayers, and allowed Williams to collect tax refunds on their behalf. During the scheme, Williams admitted she submitted at least $61,531 in false claims to the IRS.
Co-defendant Darrell Lemont Morris, 45, of Stockton, allegedly conspired with Williams and allowed her to use his bank accounts for the deposit of tax refunds of victims of identity theft, and then shared in the proceeds with Williams. The case against Morris is still pending. He is scheduled for a status conference on July 25, 2016, at 1:00 PM before U.S. Magistrate Judge Barbara A. McAuliffe. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Mark J. McKeon is prosecuting the case.
Williams is scheduled to be sentenced by United States District Judge Dale A. Drozd on October 17, 2016. Williams faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for the conspiracy; and 15 years in prison and a $250,000 fine for identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Sentence and Guilty Plea in Marijuana Cultivation Conspiracy in Sierra National ForestRead the Press Release
FRESNO, Calif. — One defendant was sentenced and one pleaded guilty today to conspiring to cultivate marijuana in the Sierra National Forest in Madera County with the intent to distribute, Acting United States Attorney Phillip A. Talbert announced.
Francisco Javier Gomez-Rodriguez, 38, of Pihuamo, Jalisco, Mexico, was sentenced today by United States District Judge Lawrence J. O'Neill to three years and five months in prison and ordered to pay $8,750 in restitution to the U.S. Forest Service.
Alejandro Ramirez-Rojo, 31, of Mexico, pleaded guilty to conspiring to grow marijuana with the intent to distribute. Sentencing is scheduled for September 26, 2016.
According to court documents, between March 1, 2015, and August 4, 2015, in the Saginaw Creek area of the Sierra National Forest, co-defendant Humberto Ceballos-Rangel, 37, of Mexico, was found at a campsite within the marijuana cultivation site where agents found 5,904 marijuana plants and a loaded firearm. Gomez-Rodriguez and two other co-defendants, Ramirez‑Rojo and Anthony Isaac Santibanez, 20, of Woodlake, California, were found a short time later approaching the grow site in a vehicle used for delivering supplies to the grow site. A .22-caliber rifle was found in the vehicle, along with .40-caliber rounds of ammunition. Judge O’Neill also ordered the forfeiture of the two firearms and ammunition.
The cultivation operation caused significant environmental damage. Native vegetation was cut to accommodate the marijuana plants, foot trails, and cooking and sleeping areas. Water was diverted from a nearby creek to irrigate the marijuana plants. A large quantity of trash was also found in trash pits and throughout the site.
Ceballos-Rangel pleaded guilty and was sentenced in April to three years in prison. Santibanez also pleaded guilty and is scheduled for sentencing August 15, 2016. The maximum statutory sentence for conspiracy to manufacture marijuana and to possess with the intent to distribute is 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California Department of Justice’s Campaign Against Marijuana Planting (CAMP), the California Department of Fish and Wildlife, and Madera County Narcotic Enforcement Team (MADNET). Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Santa Rosa Man Sentenced for Tax Evasion and Conspiracy to Defraud the United StatesRead the Press Release
SAN FRANCISCO – Today, Jay Scott Soderling was sentenced to 36 months in prison and ordered to pay $345,697 in restitution, announced United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf.
After a five-day trial in December of 2015, Soderling and his wife, Jessica Lynn Soderling, were convicted by a federal jury of conspiracy to defraud the United States. Jay Soderling was also convicted on one count of tax evasion. The evidence at trial showed that the Santa Rosa couple were involved in efforts to conceal assets from the IRS to avoid payment of Jay Soderling’s tax liabilities. During 2004 and 2005, Jay Soderling evaded payment of his taxes by hiding money and assets in the name of a corporation. In 2008 and 2009, after the IRS discovered Jay Soderling was keeping his personal assets in the name of the corporation, the couple worked together to further conceal assets by, among other things, moving money into a bank account opened for this purpose in Jessica Soderling’s name. Jay Soderling was indicted on August 9, 2011, for a single count of tax evasion, in violation of 26 U.S.C. § 7201. A superseding indictment was later filed adding the 18 U.S.C. § 371 conspiracy charge against the couple.
In finding Jay Soderling guilty of conspiracy, the jury concluded he agreed to obstruct the lawful functions of the IRS by deceitful or dishonest means. In addition, the evidence demonstrated Jay Soderling willfully evaded payment of taxes he owed to the United States. According to papers filed with the court, beginning in July 2004, the IRS began attempting to collect Jay Soderling’s tax liabilities. Jay Soderling admitted owing the IRS approximately $90,000, but he made written and oral statements to IRS employees misrepresenting his ability to pay the debt. Among other things, Jay Soderling told the IRS he had no significant assets, he had negligible income, and he did not expect his financial situation to change. In reality, Jay Soderling knew that he was about to receive an enormous financial windfall from several real-estate transactions. The government also demonstrated Jay Soderling failed to disclose his use of corporate funds to purchase a Dodge Viper, a new boat, and other personal items.
The sentence was handed down by the Honorable Vince Chhabria, U.S. District Judge. In addition to the prison term, Judge Chhabria also sentenced Jay Soderling to three-year periods of supervised release. Jessica Soderling was sentenced to a three-year term of probation, and ordered to pay $153,242 in restitution, in April 2016.
Assistant United States Attorneys Michael G. Pitman and Jose A. Olivera are prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
San Angelo Man Sentenced to 293 Months in Federal Prison for Accessing with Intent to View and Transporting Child PornographyRead the Press Release
LUBBOCK, Texas — Nicholas Daniel Glass, 34, of San Angelo, Texas, was sentenced on Friday by Senior U.S. District Sam R. Cummings to 293 months in federal prison, following his guilty plea in March 2016 to an information charging him with one count of accessing with intent to view child pornography, and one count of transportation of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas. Glass had been in federal custody since February 2016.
According to documents filed in his case, Glass used his cellular telephone and a laptop computer to possess and access images of one or more minors engaged in sexually explicit conduct. In or about July 2015 Glass sent images to persons on the Internet depicting a minor engaged in sexually explicit conduct. He also requested and received an image of child pornography from another Internet user in the course of his communications.
This year marks the 10th anniversary of the Project Safe Childhood (PSC) initiative. PSC is a department initiative launched in May 2006 to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Since FY 2011, the Department of Justice has filed 20,260 PSC cases against 19,111 defendants. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the San Angelo Police Department, and the Tom Green County District Attorney’s Office investigated the case. Assistant U.S. Attorney Myria Boehm was in charge of the prosecution.
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Salem Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
ROANOKE, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today the sentencing of a Salem, Virginia man who was previously convicted of failing to registering as convicted sex offender.
Anthony Dean Iafornaro, 58, of Salem, Virginia, pled guilty today in March to one count of failing to register as a previously convicted sex offender. Today in the United States District Court for the Western District of Virginia in Roanoke, Iafornaro was sentenced to 24 months in federal prison and five years of supervised release thereafter.
“The Sex Offender Registration and Notification Act is a tool used by law enforcement and the community to keep track of those individuals who have previously broken the law,” United States Attorney John P. Fishwick Jr. said today. “When these individual, like Mr. Iafornaro, break the law again by failing to register, as they are required to, under SORNA, they must be held accountable.”
According to evidence presented at previous hearings by Assistant United States Attorney Charlene R. Day, Iafornaro was convicted of attempting to kidnap a minor in the State of Montana in February 2005. Upon his release, he relocated to the Commonwealth of Virginia and was required, by the Sex Offender Registration and Notification Act, to register as a previously convicted sex offender. While Iafornaro did register under SORNA when first arriving in Virginia, he failed to keep his registration up-to-date after acknowledging his requirements to do so.
The investigation of the case was conducted by the U.S. Marshals Service and the Virginia State Police. Assistant United States Attorney Charlene R. Day prosecuted the case for the United States.
Real Estate Agent Pleads Guilty in Mortgage Fraud SchemeRead the Press Release
Baltimore, Maryland – Real estate agent Christopher A. Kwegan, age 59, of Randallstown, Maryland pleaded guilty today to charges arising from the fraudulent purchase of a Baltimore City property using fraudulent loan documentation and a straw purchaser.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Cary A. Rubenstein of the U.S. Department of Housing and Urban Development Office of Inspector General; and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
According to his guilty plea, in the summer of 2008, Kwegan learned that Mr. K.D. was trying to sell a row house he owned in Baltimore City on Washington Boulevard. Mr. K.D. had purchased the property 10 years earlier for $11,500. Kwegan told Mr. K.D. that he could sell it for $75,000. Mr. K.D. was dubious, but agreed to sell it for that price.
Rather than trying to sell the property at the actual market price, Kwegan requested assistence from accountant Cecil Chester and real estate agent/consultant Michael Camphor, who were already operating a mortgage fraud scheme. Kwegan arranged to use the personal identifiers of an individual recruited by Chester – Ms. D.B. – to buy the property as a straw purchaser. A “straw purchaser” is an individual whose name and personal identifiers are used by fraudsters to acquire the property, but who does not contribute his or her own funds to the purchase and who has no intention of actually residing in the property.
Ms. D.B., who lived in Queens, New York, was inexperienced with residential real estate transactions and with the Baltimore real estate market. To encourage Ms. D.B. to buy the property, Chester promised her that she would need to put up little if any money to cover the down payment and closing costs on this property. Ms. D.B. lacked the necessary assets to pay for the down payments and closing costs on the property out of her own resources, or the income to keep up the mortgage payments on the house after the transaction closed, as Kwegan and Chester knew.
Kwegan and Chester set the price not at $75,000, but at $250,000. Chester provided a mortgage loan broker located in Towson with a false loan application and fraudulent supporting documents which inaccurately represented that Ms. D.B. worked for a fictitious company that Chester had created, and which falsely inflated her annual income. Chester also falsely represented that Ms. D.B. lived in Baltimore City, and the amount of assets she had in a bank account.
Based upon these false representations, a bank wired $242,500 to finance the purchase of the property, at the settlement on September 30, 2008. As the purchaser, Ms. D.B. was required to provide $9,391.53 to cover the down payment and her share of the closing costs. Because she lacked the necessary funds, Kwegan used his own funds to obtain a cashier’s check for that amount, which was tendered to the settlement company on her behalf.
After the settlement, just $15,773.65 was disbursed to Mr. K.D., the seller of the property. In contrast, $145,000 was wired to an entity identified as “CAK,” which were Kwegan’s initials. These funds were transferred into Kwegan’s bank account. Kwegan then wrote a check to Chester for $35,000.
No payments were made on the mortgage. The property went into foreclosure and remains unsold at this time, resulting in a loss of between $150,000 and $235,000.
Kwegan faces a maximum sentence of 30 years in prison and a $250,000 fine for conspiring to commit wire and mail fraud, and for wire fraud. U.S. District Judge James K. Bredar has scheduled sentencing for November 4, 2016 at 10:00 a.m.
Cecil Sylvester Chester, age 69, of Mitchellville, Maryland previously pleaded guilty to the same charges arising from the fraudulent purchase of seven properties in Baltimore, resulting in losses of over $1.7 million. Michael Gerard Camphor, age 60, of Baltimore, previously pleaded guilty to charges arising from the fraudulent purchase of four properties in Baltimore resulting in losses of over $736,000. Judge Bredar scheduled Camphor and Chester’s sentencings for August 26 and October 4, 2016, respectively.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available at http://www.justice.gov/usao-md/financial-fraud-and-identity-theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI , HUD OIG - Office of Investigations and the U.S. Secret Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Jefferson M. Gray and Evan T. Shea, who are prosecuting the case.
Raleigh men sentenced for conspiracy to provide material support to terroristRead the Press Release
NEW BERN – The United States Attorney’s Office announced that today in federal court, United States District Judge Louise W. Flanagan sentenced AVIN MARSALIS BROWN, 23, of Raleigh and AKBA JIHAD JORDAN, 23, also of Raleigh. BROWN was sentenced to 92 months imprisonment, followed by 5 years of supervised release, and JORDAN was sentenced to 108 months imprisonment, followed by 5 years of supervised release.
BROWN and JORDAN were arrested and charged in a criminal complaint on March 19, 2014. A Grand Jury Indictment was filed on April 1, 2014, charging them with conspiracy to provide material support for terrorism. BROWN pled guilty to the charge on August 12, 2014, and JORDAN pled guilty on October 16, 2014.
Beginning in 2013, BROWN and JORDAN had numerous conversations in which they discussed their desire to travel to either Syria or Yemen to engage in violent jihad and fight the “kuffar” (non-Muslims).
JORDAN emphasized the need to be physically fit and to train with firearms so they could fight overseas. JORDAN discussed the weapons that he had in his possession, including an AK-47, and how to use those weapons in fighting the kuffar. To this end, JORDAN conducted physical training and firearm and tactics training with BROWN.
BROWN and JORDAN also discussed the need to obtain passports to travel overseas for purposes of violent jihad. JORDAN commented on several occasions that he wanted to go to Syria because he believed the caliphate may start there and he wanted to be a part of that. BROWN stated he would like to go to Syria or Yemen.
In December of 2013, in a meeting at JORDAN's apartment, JORDAN brought out an AK-47 and a vest which contained several loaded magazines. He additionally displayed a Mini l4 assault rifle, more ammunition, and a sword. JORDAN showed BROWN how to break down the AK-47 and explained the capabilities of the weapons.
Throughout early 2014, BROWN and JORDAN continued discussing fighting in overseas locations and the best routes of travel to those locations which most frequently included Syria and Yemen. In January of 2014, BROWN stated that he had received his United States passport. JORDAN stated he was still trying to secure the funds for his passport, and he scheduled an appointment at a local United States Post Office for March 21, 2014.
In February of 2014, BROWN and JORDAN discussed how using the cover of a charity would make it easier to get into Syria. They also discussed persons who have been arrested traveling overseas to fight and talked about countermeasures to defeat criminal charges.
On March 19, 2014, BROWN traveled to Raleigh Durham International Airport and was arrested without incident. Upon being arrested, BROWN gave a statement acknowledging that he had purchased a ticket to fly to Istanbul, Turkey, with the intention of traveling to Syria to fight. On March 19, 2014, agents also arrested Jordan in Raleigh, N.C.
Investigation of this case was conducted by the FBI’s Raleigh-Durham Joint Terrorism Task Force, which includes participation by the following agencies: Federal Bureau of Investigation, Department of Homeland Security-Homeland Security Investigation, Raleigh Police Department, Durham Police Department, Cary Police Department, NC State Bureau of Investigation, and the NC State Highway Patrol. Assistant United States Attorneys Eric D. Goulian and Jason M. Kellhofer prosecuted the case for the government.
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News releases are available on the U. S. Attorney’s webpage at www.usdoj.gov/usao/nce within 48 hours of release.
Puerto Rico Man Sentenced to 18 Months in Prison for Bribing Public OfficialRead the Press Release
St. Thomas, USVI – District Court Judge Curtis V. Gomez sentenced today Miguel Rodriguez-Ramirez, 45, of Puerto Rico, to 18 months’ imprisonment and three years of supervised release for bribery of a public official, United States Attorney Ronald W. Sharpe announced. Judge Gomez ordered Rodriguez-Ramirez to pay a $100 special assessment, perform 300 hours of community service, and forfeit the $12,080.00 used to bribe the public official.
On February 12, 2016, Rodriguez-Ramirez pleaded guilty to bribery of a public official. According to the plea agreement filed with the court, between July 2015 and December 2015, Rodriquez-Ramirez bribed a public official by paying that public official to smuggle illegal aliens into the United States. Rodriquez-Ramirez paid the public official a total of $12,080 to shepherd the illegal aliens through customs at the Cyril E. King Airport.
The case was investigated by U.S. Customs and Border Protection Office of Internal Affairs and the U.S. Immigration and Customs Enforcement Office of Professional Responsibility. The case was prosecuted by Assistant U.S. Attorney Sigrid Tejo-Sprotte.
Postal Employee Sentenced to Probation, Fined for Stealing Cash from MailRead the Press Release
JOHNSTOWN, Pa. - A resident of Summerhill, Pa., has been sentenced in federal court in Johnstown to three years’ probation and ordered to pay a fine in the amount of $1,000 on her conviction of theft of mail by a postal employee, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Kelly Gruss, 37, of Summerhill, Pa.
According to information presented to the court, on September 22, 2014, Gruss stole $10, and on September 25, 2014, she stole $20 from greeting cards sent via U.S. mail.
Assistant United States Attorney John J. Valkovci, Jr. prosecuted this case on behalf of the government.
Mr. Hickton commended the Office of Inspector General of the United States Postal Service for the investigation leading to the successful prosecution of Gruss.
Pittsburgh Man Sentenced to Prison for Role in Cocaine Trafficking SchemeRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 24 months’ imprisonment on his conviction of conspiracy to distribute cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Keith Beck, 24, of Pittsburgh, Pa.
According to information presented to the Court, in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Keith Beck was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Prior to imposing sentence, Judge Hornak stated that the sentence was sufficient but not greater than necessary to fulfill the purposes of sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Beck.
Philadelphia Man Pleads Guilty to KidnappingRead the Press Release
Nathaniel Rodriguez, 41, of Philadelphia, PA pled guilty today to two counts of kidnapping, announced United States Attorney Zane David Memeger. On November 6, 2015, Rodriquez forced victim #1 to accompany him to several ATM machines on South Street in Philadelphia, and to take money from one machine. On November 11, 2015, Rodriguez forced victim #2 to drive him from Center City to ATM machines near Aramingo Avenue and I-95, and attempted to take money from those machines. Rodriguez forced victim #2 to buy him cigarettes before fleeing with the victim’s car and cell phone.
The defendant faces a maximum possible sentence of life imprisonment.
The case was investigated by the Federal Bureau of Investigations and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Arlene Fisk.
North Shore Ophthalmologist Agrees to Pay $55,000 to Resolve False Medicare Billing AllegationsRead the Press Release
BOSTON – United States Attorney Carmen M. Ortiz announced today that Martin E. Cutler, M.D., an ophthalmologist with offices in Woburn and Gloucester, and his company, Martin E. Cutler, M.D., P.C., have agreed to pay $55,000 to resolve allegations that they submitted false claims to Medicare. Specifically, the government alleged that, between January 2010 and December 2014, Dr. Cutler and his practice falsely billed Medicare for ophthalmic diagnostic imaging when there was no underlying diagnosis to justify the imaging. They also allegedly falsely billed Medicare for office visits where a prior claim for the same visit had been denied and the new claim was not supported by Dr. Cutler’s documentation.
“This settlement is part of the government’s ongoing efforts to fight Medicare fraud, whether the defendant is a large pharmaceutical company or an individual physician practice,” said U.S. Attorney Ortiz. “Physicians have an obligation to bill only for medically reasonable and necessary services.”
“Our agency will continue to aggressively investigate health care providers that bilk Medicare for unnecessary services just to boost profits,” said Special Agent in Charge Phillip Coyne, U.S. Department of Health and Human Services Office of Inspector General. "And we will not tolerate greed, which can undermine medical decision-making and the public's trust in the health profession."
The settlement resolves allegations filed by a whistleblower, Brian Sachs. See United States, et al., ex rel. Brian D. Sachs v. Martin E. Cutler, M.D., and Martin E. Cutler, M.D., P.C., d/b/a Cutler Eye & Skin Center, No. 14-11879-IT (D. Mass.). The False Claims Act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. Under the terms of the settlement agreement, the federal government will pay the whistleblower $11,000 from the settlement amount.
U.S. Attorney Ortiz and HHS OIG SAC Coyne made the announcement today. It was handled by Assistant U.S. Attorneys Rayford Farquhar and Gregg Shapiro of Ortiz’s Civil Division.
Matthew Melvin of Shelburne, VT Indicted for Identity Theft and Related ChargesRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Matthew S. Melvin, age 34, from Shelburne, Vermont, has been arrested and indicted on identity theft and related charges. Melvin made his initial appearance in federal court on June 30, 2016 for his arraignment on the ten-count indictment. Magistrate Judge John M. Conroy ordered Melvin released on various conditions of pre-trial release.
As charged in the indictment, from approximately 2008 through 2013, Melvin devised a scheme to defraud multiple companies around the nation by means of fraudulent pretenses and aggravated identity theft. As part of the scheme, Melvin applied for jobs to multiple companies using stolen or assumed identities, and Melvin convinced these companies to mail or wire him money in the names of the stolen or assumed identities. Melvin had the fraudulently-obtained proceeds from his scheme deposited into his personal bank accounts, and Melvin subsequently transferred those funds between his bank accounts. The indictment charges Melvin with three counts of mail fraud, three counts of wire fraud, three counts of identity theft, and one count of money laundering.
The charges against Melvin are merely accusations and Melvin is presumed innocent until proven guilty. If convicted, Melvin’s sentence will be advised by the federal sentencing guidelines.
The case against Melvin is being investigated by the Internal Revenue Service, with assistance from the United States Secret Service.
The United States is represented in this case by Assistant United States Attorney Kunal Pasricha. Melvin is represented by Assistant Federal Defender Elizabeth K. Quinn.
Marion County man sentenced for wire fraudRead the Press Release
WHEELING, WEST VIRGINIA – Devin Wright, 25, of Fairmont, West Virginia, was sentenced to eight months in prison for participating in a wire fraud conspiracy, United States Attorney William J. Ihlenfeld, II, announced.
Wright conspired with another individual at Express Towing, a towing company in Wetzel County, where they would rent trucks from national rental companies and then would stage false accidents involving the rented trucks. Instead of calling the national rental companies and arranging for their preferred and approved towing companies to tow the damaged vehicles, they allegedly towed the trucks or had the customers return the trucks to Express Towing and then would demand payment of towing fees before they would return the truck to the rental companies. He pled guilty in May 2016 to one count of “Conspiracy to Commit Wire Fraud.”
Assistant U.S. Attorney Robert H. McWilliams prosecuted the case on behalf of the government. The Federal Bureau of Investigation investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Marion County man sentenced for cocaine distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Bennie Kyle, 61, of Fairmont, West Virginia, was sentenced to 27 months in prison for distributing cocaine near Fairmont State University, United States Attorney William J. Ihlenfeld, II, announced.
Kyle sold cocaine in June 2015 in Marion County, WV near Fairmont State University. He pled guilty in March 2016 to one count of “Distribution of Cocaine Base within 1,000 Feet of a Protected Location.”
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Three Rivers Drug Task Force investigated.
U.S. District Irene M. Keeley presided.
Man Pleads Guilty to Manchester Bank RobberyRead the Press Release
CONCORD, N.H. – Ricardo Mejia, 25, a resident of Manchester, New Hampshire, pleaded guilty in the United States District Court to robbing a Manchester branch of the Northway Savings Bank.
According to documents filed in connection with Mejia’s plea, on September 19, 2015, Mejia entered a branch of the bank at 29 Cilley Road, Manchester N.H., wearing a dreadlock-style wig. Approaching the teller counter, Mejia reportedly instructed the teller to “[G]ive me all 100’s, 50’s, 20’s. I have a gun. Don’t give me any tainted money or I’ll come back and shoot you.” (Mejia did not display a gun.) The teller handed over cash in the requested denominations, and Mejia fled with the cash.
The court will determine Mejia’s sentence after it reviews a presentence investigation report prepared by the United States Probation & Pretrial Services Office. He will be sentenced on October 13, 2016. Mejia has been in custody since his arrest on related state charges and will remain in custody pending sentencing.
This case was investigated by the Manchester Police Department with the assistance of the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Bill Morse.
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