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25 August 2016
New York man pleads guilty to possessing counterfeit credit, debit cardsRead the Press Release
WHEELING, WEST VIRGINIA – Scott Garcia, 21, of New York, pled guilty to possessing multiple counterfeit credit and debit cards in federal court today, United States Attorney William J. Ihlenfeld, II, announced.
Garcia pled guilty to one count of “Fraud Related to Access Devices.” He admitted to possessing fifteen or more counterfeit devices, to wit: fraudulently produced Western Union netSpend, MasterCard debit cards, gift cards fraudulently obtained from various retail merchants, and stolen credit card numbers in Ohio County, WV.
He faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The United States Secret Service and the Ohio County Sheriff’s Office investigated.
U.S. Magistrate Judge James E. Seibert presided.
New Haven Man Who Shot Victim in the Face During Robbery Attempt Sentenced to 10 Years in PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that HARRY ANDERSON, also known as “Ace,” 23, of New Haven, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 120 months of imprisonment, followed by five years of supervised release, for using a firearm during a violent robbery attempt.
This matter stems from an investigation into a criminal enterprise known as the Red Side Guerilla Brims (“RSGB”), a sect of the Bloods street gang that operated in New Haven from 2011 through 2015, which was engaged in narcotics trafficking and related acts of violence, including murder, attempted murder, assaults and armed robberies.
According to court documents and statements made in court, on October 21, 2011, ANDERSON ordered a quantity of crack cocaine from Marquise Moore, whom he knew to be a drug dealer. ANDERSON claims his objective in ordering the crack cocaine was not to purchase it, but to rob Moore of the drugs and any cash he had on him at the time. When ANDERSON met Moore, he pulled out a .22 caliber handgun and shot him in the face. ANDERSON fled before completing the robbery.
ANDERSON was incarcerated in state custody on November 29, 2011, for an unrelated armed robbery offense. He was transferred into federal custody on May 29, 2015. On March 9, 2016, he pleaded guilty one count of discharging a firearm in furtherance of a crime of violence.
This investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New Haven Police Department, the Connecticut Department of Correction, the Connecticut State Police, the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency and the Hamden Police Department. The New Haven State’s Attorney’s Office also provided critical assistance in the investigation.
An instrumental component of the investigation has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.
This matter is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Robert M. Spector and Peter D. Markle. A related case in the District of Maine is being prosecuted by Assistant U.S. Attorney Joel Casey.
New Hampshire Man Pleads Guilty to Computer Hacking and “Sextortion” Scheme Involving Multiple Female VictimsRead the Press Release
A New Hampshire man pleaded guilty today to remotely hacking into the online accounts of almost a dozen female victims and sending them threatening online communications, in some instances containing sexually explicit photos, in order to force the victims to send him sexually explicit photos of themselves.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Emily Rice of the District of New Hampshire and Resident Agent in Charge Holly Fraumeni of the U.S. Secret Service’s Manchester, New Hampshire, Field Office made the announcement.
Ryan J. Vallee, 22, formerly of Belmont and Franklin, New Hampshire, pleaded guilty to a 31-count superseding indictment charging him with 13 counts of making interstate threats, one count of computer hacking to steal information, eight counts of computer hacking to extort, eight counts of aggravated identity theft and one count of cyberstalking. On March 16, 2016, while Vallee was awaiting trial, he was re-arrested on new criminal charges and has remained in custody since then. He is scheduled to be sentenced on Dec. 1, 2016, in the U.S. District Court for the District of New Hampshire
According to admissions made in connection with his plea, from 2011 through March 2016, Vallee, using various aliases that included “Seth Williams” and “James McRow,” engaged in a computer hacking and “sextortion” campaign designed to force numerous victims to provide him with sexually explicit photographs of themselves and others.
Vallee admitted that he employed a variety of techniques to force his victims to cede to his “sextortionate” demands. For example, according to the plea agreement, he repeatedly hacked into and took control over the victims’ online accounts, including their email, Facebook and Instagram accounts. Once he had control of these accounts, Vallee locked the victims out of their own accounts and, in some cases, defaced the contents of the accounts, he admitted. According to the plea, in at least one instance, Vallee hacked into a victim’s Amazon.com account, which stored her payment information and shipping address, then ordered items of a sexual nature and had them shipped to the victim’s home. Vallee also admitted that in some instances, he obtained sexually explicit photos of the victims and their friends and distributed them to the victims, their friends and their family members. With at least one victim, Vallee created a Facebook page using an account name that was virtually identical to the victim’s real Facebook account name, with one letter misspelled, he admitted. He then posted sexually explicit photos of the victim on this fake Facebook page and issued “friend requests” to the victim, her friends and her family members, according to the plea agreement.
Vallee admitted that he repeatedly sent threatening electronic communications to his victims, usually by using spoofing or anonymizing text message services, in which he threatened his victims that unless they gave him sexually explicit photographs of themselves, he would continue with the above-described conduct. According to the admissions in the plea agreement, when most of the victims refused to comply with Vallee’s demands and begged him to leave them alone, Vallee responded with threats to inflict additional harm.
The U.S. Secret Service investigated the case with substantial assistance from the Belmont Police Department. Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Arnold H. Huftalen of the District of New Hampshire are prosecuting the case.
Victims of “sextortion” schemes such as this often may be hesitant to come forward. The Justice Department encourages individuals who may be the victims of similar schemes to contact their local law enforcement agencies to report this conduct.
Naples Man Pleads Guilty to $2.2 Million Online Fraud SchemeRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces that Jeffrey Ihm (49, Naples) today pleaded guilty to 14 counts of wire fraud and 5 counts of aggravated identity theft. Each wire fraud count carries a maximum penalty of 20 years in federal prison and each aggravated identity theft conviction is punishable by a term of two years’ imprisonment, consecutive to the sentence imposed for the wire fraud convictions. The indictment also notifies Ihm that the United States intends to forfeit $315,000 in fraud proceeds previously seized from a Suncoast Credit Union checking account and a house located in Naples, which are alleged to be traceable proceeds of the offense. The United States is also seeking a money judgment in the amount of $2,234,681, representing the proceeds Ihm is alleged to have received as a result of the fraud scheme.
According to court documents, between February 2013 and July 2014, Ihm assumed the identities of and posed as executives of a number of companies, including Roper Industries, Inc., Kinetic Technologies, LLC, CSX Corporation, and Convergence Consulting Group, Inc. He then generated false and fraudulent emails and other documents in the names of the companies’ executives in order to defraud financial institutions, causing them to transfer to him $2,234,681 to which he was not entitled. Ihm used the monies to purchase real property and for other personal enrichment.
This case was investigated by the Fort Myers Office of the United States Secret Service and the Jacksonville Office of the Federal Bureau of Investigation, with assistance from the Economic Crimes Unit of the Collier County Sherriff’s Office. It is being prosecuted by Assistant United States Attorneys David G. Lazarus and Dale R. Campion.
Miami Doctor Pleads Guilty to Pharmaceutical Fraud and Money LaunderingRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DR. RAFAEL PRATS, age 62, a resident of Miami, Florida pled guilty yesterday to a twelve-count Indictment charging him with conspiracy to commit theft of medical products, conspiracy to commit wire fraud, and conspiracy to commit money laundering.
According to court documents, beginning sometime prior to December 2012, PRATS and others conspired to use Marea Distributors and Logistics, LLC of Louisiana, and Marea Distributors, LLC of Florida to fraudulently re-sell diverted pharmaceuticals. Working together, the defendants would collect dispensed drugs of known and unknown origin, counterfeit drugs, expired drugs, and drugs not authorized for resale and then fraudulently reintroduce them into the pre-retail, wholesale market for eventual sale under false pretenses to pharmacies and end users. According to court documents PRATS served as a broker in obtaining the diverted pharmaceuticals from various sources.
Among other things, the defendants would create and scan fraudulent invoices and send them from Marea Distributors in Florida to Marea Distributors & Logistics in Louisiana by email. In Louisiana, Marea Distributors & Logistics would then send the fraudulent invoices by email from Louisiana to wherever the diverted pharmaceuticals were shipped. When necessary, Marea Distributors & Logistics in Louisiana would create invoices for the products and email them to customers who were making purchases.
During the course of the conspiracy, the defendants opened or caused to be opened bank accounts in the names of various entities, including Marea Distributors & Logistics and Marea Distributors. The defendants used those accounts to deposit the proceeds obtained from the sale of diverted pharmaceuticals and then to further distribute those proceeds to bank accounts controlled by them.
PRATS faces a possible penalty of up to 15 years in prison for Count 1, Conspiracy to Commit Theft of Medical Products, and a fine of up to $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to any person. For Counts 2 through 11, Conspiracy to Commit Wire Fraud, Wire Fraud, Aiding and Abetting, PRATS faces up to 20 years in prison and a fine of up to $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to any person. For Count 12, Conspiracy to Commit Money Laundering, PRATS faces up to 20 years in prison and a fine of up to $500,000 or the greater of twice the gross gain to the defendant or twice the gross loss to any person. He also faces up to three years of supervised release and a mandatory $100.00 special assessment fee for each count. U.S. District Judge Martin L.C. Feldman set sentencing for December 14. 2016.
U.S. Attorney Polite praised the work of the United States Drug Enforcement Administration, Internal Revenue Service, Food and Drug Administration, and the Miami Dade Police Department in investigating this matter. Assistant United States Attorneys Theodore R. Carter, III, and David Haller are in charge of the prosecution.
Mexican citizen sentenced to 10 years in prison for liquid meth possession and distribution conspiracyRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced that a Mexican citizen was sentenced Monday to 120 months in prison for conspiring to transport and distribute methamphetamine.
Eduardo Guerrero, 24, of Ciudad Juarez, Mexico, was sentenced by U.S. District Judge Robert G. James on one count of conspiracy to possess with intent to distribute methamphetamine. He was also sentenced to five years of supervised release. According to the April 14, 2016 guilty plea, Louisiana State Police troopers conducted a traffic stop on a pickup truck traveling eastbound on Interstate 20 in Ouachita Parish in March of 2015. After a search of the vehicle, two gas tanks were found on the vehicle, one of which contained 16 gallons of liquid methamphetamine or 28.8 kilograms of pure methamphetamine. Neither the driver nor the passenger owned the vehicle. Guerrero was the registered owner of the vehicle. The methamphetamine was transported from El Paso, Texas, and was intended for Atlanta, Georgia. State police arrested Guerrero in the New Orleans area while he traveled to retrieve the truck and methamphetamine.
The DEA, Department of Homeland Security, and Louisiana State Police, Troop F, conducted the investigation. Assistant U.S. Attorneys Allison D. Bushnell and Michael O’Mara prosecuted the case.
Mescalero Apache Man Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Matthew Joel Torres, 27, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., pled guilty yesterday in federal court in Las Cruces, N.M., to an assault charge under a plea agreement with the U.S. Attorney’s Office.
Torres was arrested on April 18, 2016, on a criminal complaint charging him with assaulting a Mescalero Apache man on June 13, 2015, by stabbing him twice in the stomach. The assault occurred on the Mescalero Apache Indian Reservation in Otero County, N.M.
Torres pled guilty yesterday to a felony information charging him with assault with a dangerous weapon. In entering the guilty plea, Torres admitted that on June 13, 2015, he assaulted the victim by stabbing him in the abdomen twice with a knife with intent to cause bodily harm.
At sentencing, Torres faces a maximum penalty of ten years in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
Memphis Couple Collectively Sentenced to More Than 30 Years for Robbing Multiple BusinessesRead the Press Release
Memphis, TN – A couple has been collectively sentenced to more than 390 months in federal prison for robbing multiple businesses throughout Memphis. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentences today.
According to information presented in court, between May and June 2015, Julius Knight, 33; and Deidra Mason, 25; both of Memphis; participated in the armed robbery of multiple Family Dollar Stores, a Subway, Papa John’s, and Dollar General. Knight robbed two additional restaurants independently.
During the robberies, Knight would enter the businesses with a weapon and demand employees to remove money from the cash registers. In some of the robberies, Knight used various methods to disguise his identity, including wearing a red wig, skull cap, or baseball cap, as well as pantyhose over his face. Mason, his girlfriend at the time, served as his getaway driver.
Law enforcement discovered that the description of the person who robbed the aforementioned businesses were similar. Furthermore, a blue Ford Taurus was identified as the getaway car used in the robberies of a Family Dollar, Subway and Papa John’s.
On June 1, 2015, officers stopped a blue Ford Taurus that matched the description of the reported getaway vehicle. Mason was driving the car. After officers discovered her driver’s license was suspended, they arrested her. They later discovered Mason served as the getaway driver in the series of robberies.
Following Mason’s arrest, Knight executed two business robberies barefaced. On June 3, 2015, Knight robbed a Church’s Chicken on Chelsea Avenue. Five days later, he robbed another Church’s on Thomas Avenue. When officers responded to the June 8th robbery, Church’s employees informed them that Knight approached one of the employees from behind as they worked the drive-through window. He demanded money from the register before jumping over the counter and fleeing. There were customers at the drive-through window when the robbery took place who were able to see Knight’s face and weapon. Fingerprints were lifted from the store that matched Knight’s, and he was later located and arrested.
In April 2016, Mason pleaded guilty before U.S. District Judge Sheryl H. Lipman to six counts of aiding and abetting Knight during the robbery of a business engaged in interstate commerce.
In May 2016, Knight pleaded guilty before Judge Lipman to six counts of aiding and abetting Mason in the robbery of a business engaged in interstate commerce; one count of using a firearm during the robbery of a business engaged in interstate commerce; and two counts of robbing a business engaged in interstate commerce.
On Tuesday, August 2, Judge Lipman sentenced Mason to 63 months in federal prison.
On Thursday, August 25, Judge Lipman sentenced Knight to 336 months in federal prison.
This case was investigated by the FBI’s Safe Streets Task Force and the Memphis Police Department.
Assistant U.S. Attorneys Lorraine Craig and Dean DeCandia prosecuted this case on the government’s behalf.
Media Advisory: Fort Dodge Hosts Hate Crimes/Bias Incident ForumRead the Press Release
CEDAR RAPIDS, IA – The United States Attorney’s Office for the Northern District of Iowa is joining with the FBI, DOJ’s Community Relations Service, Webster County Attorney and Sheriff’s Offices, Fort Dodge Police Department, and the Fort Dodge Human Rights Commission to host a forum designed to identify and address key issues related to hate crime reporting, investigation, prosecution and prevention. The forum is designed to build collaboration among key partners in an effort to prevent and respond to bias incidents and hate crimes.
U.S. Attorney Kevin W. Techau will be present and joined by Darryck Dean, a DOJ Conciliation Specialist with the Community Relations Service located in Kansas City. Mr. Dean was actively involved in community conciliation efforts following the incidents in Ferguson, Mo. A flyer announcing the forum is attached.
Event Details
When: Tuesday, August 30, 2016
Where: Iowa Central Community College, Bio-Health Science Building Auditorium, One Triton Circle, Fort Dodge, IA 50501
Time: Starts at 6:00 p.m., ends at 8:00 p.m.
This is a “pen and pad” opportunity for the press. Photography permitted. A press release will be provided and interview opportunities will be available.
Follow us on Twitter @USAO_NDIA.
Maryland Man Allegedly Used the Internet to Entice Minor Victims to Engage in Sexually Explicit Activity in Order to Produce Child PornographyRead the Press Release
Greenbelt, Maryland – A federal grand jury charged Roy David Evans, Jr., age 31, of Essex, Maryland, for sexual exploitation of a minor to produce child pornography, coercion and enticement of a minor to engage in sexually explicit conduct; and for receipt and possession of child pornography. The indictment was returned on August 22, 2016, and unsealed on August 24, 2016.
Evans had an initial appearance in U.S. District Court in Greenbelt on August 23, 2016, and was ordered to be detained following a detention hearing on August 24, 2016.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief J. Thomas Manger of the Montgomery County Police Department.
According to the six count indictment, and information presented at today’s detention hearing, Evans posted advertisements on Craigslist for young girls to contact him via email or via Kik, a messaging application where users can text, livecam, and send digital images and videos to one another. Evans’ Kik username was “roddanger86.” The indictment alleges that Evans enticed and coerced a minor victim to engage in sexually explicit conduct in order to produce images of that conduct. Further, the indictment alleges that Evans then received videos of the victim engaged in sexually explicitly conduct via the internet.
Evans’ alleged victims ranged from ages 14 years old to 16 years old. According to evidence presented in court, multiple victims, at the request of Evans and sometimes on their own, sent videos and images of sexually explicit conduct to Evans via Kik. Evans also allegedly offered to pay cash to the victims in exchange for sexual activities. At least one victim, a 14-year-old female, engaged in sexual intercourse and other sexual activities with Evans on at least three occasions.
Based on their investigation, law enforcement believes there may be additional victims. Anyone with information is asked to call HSI's tip line at 866-DHS-2ICE (1-866-347-2423), which is staffed around the clock by investigators.
Evans faces a mandatory minimum of 15 years and a maximum of 30 years in prison for production of child pornography; a mandatory minimum of 10 years and a maximum of life in prison for coercion and enticement of a minor; a mandatory minimum of five years and a maximum of 20 years in prison for receipt of child pornography; and a maximum of 10 years in prison for possession of child pornography. For each count, Evans faces up to lifetime supervised release following his imprisonment.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
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 HSI Baltimore, and the Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kelly O'Connell Hayes, who is prosecuting the federal case.
Marianne Matchette IndictedRead the Press Release
FORT WAYNE –United States Attorney David A. Capp announced that a federal grand jury in Fort Wayne returned a 15 count indictment against Marianne Matchette, 50, of Roanoke, Indiana for access device fraud, aggravated identity theft, wire fraud and mail fraud.
According to the indictment, Matchette allegedly used a number of company accounts that she was given access to as an employee for personal benefit. The government will be seeking forfeiture of $156,776.11 in United States Currency which is the alleged amount of proceeds obtained as a result of the offenses related to the Indictment.
This case was investigated by the Allen County Sheriff’s Department, Federal Bureau of Investigation and Indiana State Police. This case is being prosecuted by Assistant United States Attorneys Tina Nommay and Stacey Speith.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
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Lynn Man Pleads Guilty to Stealing Veterans BenefitsRead the Press Release
BOSTON – A Lynn man pleaded guilty today in U.S. District Court in Boston to stealing nearly $80,000 in veterans benefits.
John Ladd, 73, pleaded guilty today to theft of public money. U.S. District Court Senior Judge Douglas P. Woodlock scheduled sentencing for Dec. 5, 2016.
In 2009, Ladd’s neighbor was receiving monthly veterans benefits when she died; however, the U.S. Department of Veterans Affairs was not properly notified of the death, so it continued to deposit her benefits each month into her bank account. Ladd had been assisting his neighbor before her death, and this enabled him to access her checkbook. Although Ladd was not entitled to his neighbor’s veterans benefits, he routinely wrote checks to himself from his neighbor’s account after her death, forging her signature on each check. Ladd then deposited the checks into his own bank accounts. Ladd ultimately wrote himself 70 checks totaling $79,958.
The charge of theft of public money provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Jeffrey Hughes, Special Agent in Charge, Department of Veterans Affairs, Office of the Inspector General, Northeast Field Office made the announcement today. The case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Long Beach Man Pleads Guilty in $3 Million Foreclosure Rescue ScamRead the Press Release
LOS ANGELES – A Long Beach man has pleaded guilty to a federal fraud charge related to a long-running mortgage rescue scheme that involved nearly $3 million in illegal fees charged to distressed homeowners and about 200 fraudulent bankruptcy petitions.
Karl Robinson, 52, pleaded guilty Tuesday to one count of bankruptcy fraud before United States District Judge Manuel Real.
Robinson operated the foreclosure rescue scheme from 2008 until 2013 under his own name and other names, including “Stay In Your Home Today,” “21st Century Development” and “Genesis Ventures Corporation.” The businesses provided illegal foreclosure- and eviction-delay services to homeowners who had defaulted on their mortgages. The purpose of the scheme was to obtain money from distressed homeowners, and in exchange Robinson was able to hinder, delay and obstruct lawful foreclosure and eviction actions against property owners who had defaulted on their mortgages.
As part of the scheme, Robinson filed bogus grant deeds in county records offices and other fake documents in formal eviction proceedings to make it appear that fictional people held interests in distressed properties. He then fraudulently filed bankruptcy petitions in the names of the fictional people to trigger an “automatic stay” in the bankruptcy cases. The filing of a bankruptcy petition has the effect of suspending all creditor actions, including foreclosure proceedings commenced by mortgage lenders and eviction actions commenced by purchasers of foreclosed properties.
“This defendant filed scores of fraudulent bankruptcy actions – sometimes on multiple occasions in relation to a single property,” said United States Attorney Eileen M. Decker. “He took advantage of distressed homeowners by stealing identities and lying to them about what he could do for their properties as long as they continued to pay his fees.”
Robinson admitted that as part of his scheme he obtained nearly $3 million from distressed homeowners and filed more than 200 fake bankruptcies.
“Mr. Robinson used his position as a pastor gain the trust of distressed homeowners, only to lure them with false hope while he worked the system to get rich,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI and our partners with the FHFA-OIG and the U.S Attorney's Office will continue to combat schemes targeting vulnerable homeowners.”
As a result of today’s guilty plea, Robinson faces a statutory maximum sentence of five years in federal prison when he is sentenced by Judge Real on November 28.
The criminal case against Robinson is the result of an investigation by the Federal Bureau of Investigation and the Federal Housing Finance Agency, Office of the Inspector General (FHFA-OIG).
“Karl Robinson engaged in a complicated fraud scheme that preyed on others misfortune to line his own pockets,” stated FHFA-OIG’s Special Agent in Charge Leslie Demarco. “Today’s guilty plea is the first step toward taking responsibility for his criminal activity.”
The case against Robinson was prosecuted by Special Assistant United States Attorney Kerry L. Quinn of the Major Frauds Section.
Londonderry Man Pleads Guilty to Federal Drug and Firearm ChargesRead the Press Release
CONCORD, NEW HAMPSHIRE: Christopher DeCoste, 20, of Londonderry, New Hampshire, pleading guilty in the United States District Court for the District of New Hampshire to federal charges of possessing over 400 grams of fentanyl with intent to distribute and being a felon in possession of a firearm, announced United States Attorney Emily Gray Rice.
According to court documents and statements at the plea hearing, on April 14, 2016, the law enforcement officers executed a search warrant at the defendant’s residence in Londonderry, New Hampshire to search for evidence of the defendant’s drug trafficking activity. During the search, approximately 800 grams of fentanyl were recovered, as well as $42,850 in United States currency. Officers also found a .22 Walther handgun with a magazine and two rounds of ammunition hidden in a wall. DeCoste later admitted that he intended to sell the drugs that were seized and that he had the gun for protection in case he was robbed.
United States District Judge Joseph DiClerico scheduled sentencing for November 30, 2016.
According to statistics maintained by the State of New Hampshire, over half of the drug overdose deaths in New Hampshire in 2015 were related to fentanyl. Because a single gram of heroin or fentanyl can be used to create multiple individual dosage units that can be sold “on the street,” the quantity of fentanyl involved in this case could have generated a large number of individual doses of fentanyl, each of which had the potential to cause a fatal overdose.
Multiple departments and agencies were involved in the investigation and prosecution, including the Manchester, New Hampshire Police Department, the United States Drug Enforcement Administration, and the Londonderry Police Department.
The case was prosecuted by Assistant United States Attorney Seth R. Aframe.
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Little Rock Woman Pleads Guilty to Conspiracy in Scheme to Steal Feeding Program FundsRead the Press Release
LITTLE ROCK---Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Maria Carmen Nelson, 50, of Little Rock, pled guilty to Count I of the Indictment charging her with conspiring to commit wire fraud. The charge relates to a conspiracy to fraudulently obtain United States Department of Agriculture (USDA) program funds intended to feed children in low income areas during the school year.
Today's plea hearing took place in Little Rock before United States District Judge J. Leon Holmes. Judge Holmes will sentence Nelson at a later date.
On October 7, 2015, a Federal Grand Jury indicted Nelson on charges of wire fraud as part of a scheme to fraudulently obtain USDA program funds. The USDA funds the Child and Adult Care Feeding Program, which includes an at-risk after school component. In Arkansas, the feeding programs are administered by the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. Once approved, they can provide meals as part of the feeding program and be reimbursed based on the number of eligible meals they serve.
According to facts read at the plea hearing, Nelson operated as a sponsor for a feeding program through an organization called "Securing Our Future" between approximately March 2012 and March 2015 with approved Sites in Little Rock and Malvern, Arkansas. Nelson was recruited to participate by a DHS employee who worked in the section that oversaw the feeding programs. Nelson and the DHS employee both had an understanding it would be a fraudulent scheme, with each taking a portion of the proceeds. As part of the scheme, the number of children who were fed at Nelson’s sites would be inflated. Out of the money Nelson received as a result of the inflated claims, Nelson would pay cash back to the DHS employee.
Nelson received a total of approximately $575,917.76 from the feeding program in payment for fraudulent claims. Out of this money deposited into her account, Nelson withdrew sums of cash and paid that to the DHS employee. The DHS employee is no longer employed at DHS.
The statutory penalty for conspiracy to commit wire fraud is not more than 20 years’ imprisonment, not more than a $250,000 fine, or both, and not more than 3 years supervised release.
The investigation is ongoing and is being conducted by the USDA-Office of Inspector General, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigations, and United States Marshals service. If you are aware of any fraudulent activity regarding these feeding programs, please email that information to [email protected].
Lawrence Police Officer Indicted on Attempted Extortion ChargesRead the Press Release
Boston – A 16-year veteran officer of the Lawrence Police Department was indicted today in connection with attempting to use his position as a police officer to extort cocaine from a drug trafficker.
John R. Desantis, Jr., 44, of Methuen, was indicted on one count of extortion and attempted extortion under color of official right and through the use of threatened force and fear.
According to court documents, Desantis had been purchasing small amounts of cocaine once or twice a week from a drug trafficker for 10-12 months without identifying himself as a police officer. On May 16, 2016, during a drug transaction at his home, Desantis displayed his gun and badge, seized the cocaine and threatened to arrest the drug trafficker if he did not continue to supply him with drugs. Desantis thereafter allegedly continued to communicate with the drug trafficker through text messages, telling him, “you will not be arrested at all if you do as I tell you to.”
The charging statute provides a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Lawrence Police Chief James Fitzpatrick, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney S. Theodore Merritt of Ortiz’s Public Corruption Unit.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Lake Charles woman sentenced to 15 months in prison for stealing more than $230,000 from employerRead the Press Release
LAKE CHARLES – United States Attorney Stephanie A. Finley announced today that a Lake Charles woman was sentenced to 15 months in prison for stealing more than $230,000 from her employer’s bank account.
Melissa D. Crookshank, 33, of Lake Charles, was sentenced by U.S. District Judge Patricia Minaldi on one count of wire fraud. She was also sentenced to three years of supervised release and ordered to pay $235,155.79 restitution. According to the May 19, 2016 guilty plea, Crookshank, who worked as a bookkeeper for a Hackberry, La., company, stole $235,155.79 from her employer starting in 2009 and continuing until January of 2015. Crookshank issued checks to herself during that time without authorization from the company owners, which she deposited into her own bank accounts for personal use.
The U.S. Secret Service and the Calcasieu Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney David C. Joseph prosecuted the case.
Kerrville Man Sentenced to Federal Prison for Receipt of Child PornographyRead the Press Release
In San Antonio today, 28-year-old Samuel Eugene Baker of Kerrville, TX, was sentenced to 150 months in federal prison for receipt of child pornography announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.
On October 22, 2014, FBI agents executed a search warrant at the defendant’s residence and seized multiple home computers and related media. A forensics examination on the seized items revealed the presence of approximately 90 videos and 2,700 images depicting child pornography.
Baker has remained in custody since being arrested following the search warrant. On March 23, 2016, Baker pleaded guilty to one count of receipt of child pornography.
This case was investigated by the FBI’s San Antonio Child Exploitation Task Force. Assistant United States Attorney Tracy Thompson prosecuted this case on behalf of the Government.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html.
Justice Department Warns Employers Not to Discriminate Against Salvadoran Workers with Temporary Protected Status in Newly-Released VideoRead the Press Release
The Justice Department today announced the launch of an updated educational video reminding employers that Salvadorans with Temporary Protected Status (TPS) may continue working beyond the Sept. 9, 2016, expiration date of their employment authorization documents. The Justice Department also cautions employers that requesting additional work-authorization documents from these workers may violate anti-discrimination law.
The video – released by the Civil Rights Division’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) – explains that the Department of Homeland Security (DHS) automatically extended the validity of employment authorization documents for Salvadorans with TPS until March 9, 2017. Requesting additional work-authorization documents from these workers may violate the anti-discrimination provision of the Immigration and Nationality Act (INA). This law prohibits employers from making additional and unauthorized documentary demands because of an employee’s citizenship, immigration status or national origin when verifying or re-verifying an employee’s employment eligibility.
The updated video can be viewed here.
“This video provides employers with a clear reminder and practical guidance to ensure that they comply with federal law when verifying the employment eligibility of Salvadoran workers with Temporary Protected Status,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Justice Department is firmly committed to protecting the rights of all work-authorized immigrants and ensuring that employers do not engage in unlawful discrimination.”
TPS is a temporary immigration benefit that allows qualified individuals who are in the United States to stay and work for a limited period of time. A foreign country is designated for TPS due to conditions in the country that temporarily prevent the country’s nationals from returning safely, such as ongoing armed conflict, environmental disasters or other extraordinary and temporary conditions in the designated country. Individuals with TPS can obtain employment authorization documents to work legally in the United States.
OSC is responsible for enforcing the anti-discrimination provision of the INA. Among other things, this law prohibits citizenship, immigration status and national origin discrimination in hiring, firing and recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired), call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired), sign up for a free webinar, email [email protected], or visit OSC’s website at www.justice.gov/crt/about/osc.
Justice Department Releases New Training Video for Law Enforcement on Interacting with Transgender CommunityRead the Press Release
The Justice Department’s Community Relations Service (CRS) today released a new training video for law enforcement which provides information, tools and techniques to help ensure that interactions with members of the transgender community are respectful, professional and safe for all involved.
The training uses three non-emergency and non-crisis situations to discuss ways for police officers to effectively and politely interact with transgender individuals. In promoting best practices, the video defines three important terms: assigned sex, sexual orientation and gender identity. As the training outlines, understanding the terminology and the major issues facing the transgender community can help rebuild trust and ensure that encounters are safe for all parties. The video also emphasizes the importance of distinguishing between a threat and a stereotype, and notes that individuals who feel disrespected are less likely to have faith in or cooperate with law enforcement.
“Transgender Americans, like all Americans, deserve to be treated with courtesy and respect by law enforcement officers,” said Acting Director Paul Monteiro of CRS. “The information provided in this video will help strengthen the relationship between police and the transgender community, allowing for more effective investigations and safer encounters for officers and citizens alike.”
The training stresses that officers should keep their questions relevant to the contact and remain courteous throughout the encounter. In one of the examples, the video demonstrates an officer laughing and using an inappropriate pronoun to address a transgender individual who appears to be the victim of a crime and the officer’s partner pulls him aside to correct his behavior. Afterwards, the offending officer apologizes for his prior conduct and approaches the rest of the interview with the necessary respect and professionalism. This illustration not only highlights how officers should act with members of the transgender community, but also addresses the need for officers to say something to their peers when they see problematic behavior.
CRS was established under Title X of the Civil Rights Act of 1964 to resolve “disputes, disagreements or difficulties relating to discriminatory practices based on race, color or national origin.” It is not an investigatory or prosecutorial agency, and it does not have any law enforcement authority. Rather, CRS works with all parties, including state and local governments, private and public organizations, civil rights groups and local community leaders to uncover the underlying interests of all of those involved in the conflict and facilitate solutions to the community's challenges. In addition, CRS assists communities in developing local mechanisms and community capacity to prevent tension and violent hate crimes from occurring in the future. CRS works in all 50 states and the U.S. territories, and in communities large and small, rural, urban and suburban.
Jacksonville Man Indicted for Using Minors to Produce Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces today the return of an indictment charging Thomas Leslie Carr (48, Jacksonville) with two counts of producing child pornography. If convicted, he faces a mandatory minimum penalty 15 years, up to 30 years, in federal prison on each charge. Carr was arrested at his home today by federal agents. His arraignment and detention hearing are scheduled for August 30, 2016, at 10:00 a.m.
This case was investigated by the Lakeland Police Department, the Florida Department of Law Enforcement, the Jacksonville Sheriff’s Office, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Tampa and Jacksonville offices. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case 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 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.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
Irondequoit Man Sentenced in “Sextortion” CaseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Jose Alvarado, 29, of Irondequoit, NY, who was convicted of receipt of child pornography was sentenced to 72 months in prison and 15 years supervised release by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney John J. Field, who handled the case, stated that Alvarado, then 26 years old, used his iPhone and other digital devices to coerce and entice a 15 year old female that he knew into having sex with him on multiple occasions. The defendant convinced his victim to take graphic photos of herself and send them to him using a texting application. Alvarado then sought to the control the girl through “sextortion” – that is, by threatening to expose the sexually-explicit pictures of her – and other means.
The sentencing is the result of an investigation by the Federal Bureau of Investigation’s Child Exploitation Task Force, under the direction of Special Agent in Adam S. Cohen, the Irondequoit Police Department, under the direction of Chief Richard V. Tantalo, and the New York State Police, Troop E, under the direction of Major Craig Hanesworth. The task force includes the Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement-Homeland Security Investigations.
Houston Man Pleads Guilty to Heroin TraffickingRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LARRY DUPOR, age 44, a resident of Houston, pled guilty today to one count of conspiracy to distribute one kilogram or more of heroin and one count of attempt to distribute 100 grams or more heroin.
According to court records, law enforcement officers found four packages of heroin weighing one kilogram in total during a traffic stop of a Fiat on Interstate-10 East in Calcasieu Parish. The driver admitted that she had been paid $1,000 in cash to drive the heroin from LARRY DUPOR in Houston to LEJEUNE HARRIS at a car wash in New Orleans East. The driver stated that she had made similar trips before to deliver heroin between DUPOR and HARRIS, and she agreed to assist law enforcement by following through with a delivery of ‘sham’ heroin to HARRIS. The driver was instructed by DUPOR to deliver three of the four heroin packages to HARRIS, and she proceeded to the car wash in New Orleans East under law enforcement surveillance with three ‘sham’ packages. There she was met by HARRIS, who took the ‘sham’ packages weighing approximately 750 kilograms in total and then handed the driver $2,000 in cash. HARRIS entered the car wash office, and surveillance agents then entered the scene and detained HARRIS. Agents obtained a search warrant for the car wash office and recovered an additional 479 grams of heroin hidden in an area where the three packages of ‘sham’ heroin were also found.
HARRIS pled guilty to similar charges two weeks ago, and both DUPOR and HARRIS are now scheduled to be sentenced by U.S. District Judge Jane Triche Milazzo on November 10, 2016. DUPOR faces a term of imprisonment of at least 10 years and up to life for the conspiracy charge, and HARRIS faces a mandatory minimum of 20 years due to a prior felony drug conviction.
U.S. Attorney Polite praised the work of the Homeland Security Investigations in investigating this matter. Assistant United States Attorney Michael B. Redmann is in charge of the prosecution.
Guatemalan Man Sentenced for Illegal Reentry After DeportationRead the Press Release
CONCORD, NEW HAMPSHIRE – United States Attorney Emily Gray Rice announced today that Mario Enrique Lopez, of Guatemala, was sentenced today after pleading guilty to illegally reentering the United States after having been previously deported.
Lopez was identified during a traffic stop in Greenland, New Hampshire on June 14, 2016. A Deportation Officer later determined that he was citizen of Guatemala who previously had been deported from the United States. Lopez, who was arrested on July 7, 2016, and has been in custody since that time, was sentenced to time served. He faces likely deportation.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement and prosecuted by Assistant U.S. Attorney Alfred Rubega.
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Guatemalan Drug Trafficker Sentenced for Using U.S. Registered Aircraft to Transport Thousands of Kilograms of CocaineRead the Press Release
RICHMOND, Va. – Fernando Josue Chang-Monroy, 37, of Guatemala City, Guatemala, was sentenced today to 262 months in prison for his in role in an international drug trafficking conspiracy involving the use of United States registered aircraft purchased in the Eastern District of Virginia to transport 2,000 kilograms of cocaine in Central and South America.
Chang-Monroy pleaded guilty on March 3. According to a statement of facts filed with the plea agreement, Chang-Monroy admitted to his role in the conspiracy to purchase two United States registered aircraft in the Eastern District of Virginia, for the purpose of transporting large amounts of cocaine from clandestine airstrips in Venezuela to clandestine airstrips in Honduras. Also as part of the conspiracy, Chang-Monroy arranged with the Venezuelan military for the safe passage of the drug trafficking aircraft through Venezuelan air space.
The first aircraft purchased by Chang-Monroy, a Beechcraft King Air C90 (“King Air C90”), was sold to a known Honduran drug trafficking organization in exchange for a percentage from the sale of the cocaine that was successfully transported on the aircraft and later distributed. On or about October 27, 2013, the King Air C90 flew to Apure, Venezuela, where 1,000 kilograms of cocaine was loaded onto the aircraft and then successfully transported to Limon, Honduras. The second aircraft purchased by Chang-Monroy, a Beechcraft King Air E90 (“King Air E90”), was sold to a Colombian drug trafficking organization in exchange for U.S. currency. In order to prepare the King Air E90 for its illegal activities, Chang-Monroy arranged for multiple test flights to ensure its airworthiness, painted the aircraft to conceal its identity, and selected pilots to operate the aircraft during its trip to transport the cocaine. On or about March 2, 2014, the King Air E90 flew to Apure, Venezuela, and was loaded with 1,000 kilograms of cocaine. Prior to departure, upon seeing Venezuelan military aircraft overhead, the King Air E90 pilot refused to take off. Due to this delay, the cocaine was off-loaded from the King Air E90 and the Venezuelan military aircraft destroyed the King Air E90. On September 10, 2015, Chang-Monroy was arrested in Guatemala City, Guatemala, and extradited to the United States on December 1, 2015.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; Thomas M. Jankowski, Special Agent in Charge of IRS-Criminal Investigation’s (IRS-CI) Washington D.C. Field Office; Colonel David R. Hines, Hanover County Sheriff; and Colonel Thierry Dupuis, Chief of Chesterfield County Police, made the announcement after sentencing by U.S. District Judge Henry E. Hudson. Assistant U.S. Attorneys Erik S. Siebert, Dominick S. Gerace, David J. Harbach, and Peter S. Duffey prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-75.
Greenville, Texas Man Sentenced to 130 Months in Federal Prison for Role in Methamphetamine Trafficking ConspiracyRead the Press Release
DALLAS — Eduardo Borrego, a/k/a “Jesus Eduardo Borrego,” 30, of Greenville, Texas, was sentenced yesterday by U.S. District Judge Ed Kinkeade to 130 months in federal prison following his guilty plea in March 2016 to a superseding information charging one count of conspiracy to possess with intent to distribute 50 grams or more of methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Two other defendants charged in the case, Borrego’s wife, Dayany Garcia, 27, and Pedro Santillano, 39, have also pleaded guilty. Both lived in Greenville at the time of the offense. Garcia pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute methamphetamine. She faces a maximum statutory penalty of 20 years in federal prison and a $1 million fine. Santillano pleaded guilty to one count of possession of 50 grams or more of methamphetamine with intent to distribute. He faces a statutory penalty of not less than five or more than 40 years in federal prison and a $4 million fine. Garcia is scheduled to be sentenced in September and Santillano in October.
According to documents filed in the case, from approximately May 1, 2014 through September 2015, Borrego conspired with others, including Garcia, to possess with the intent to distribute 50 grams of more of methamphetamine. Agents documented over 20 separate deliveries of methamphetamine from July 2014 to September of 2015 during the investigation of this case. On one occasion, in late July 2014, Borrego sold another individual one pound of methamphetamine for $11,000. Garcia assisted Borrego in this transaction by driving him to where he needed to go to complete the transaction and serving as a lookout for law enforcement. On another occasion in early September 2014, Borrego sold an individual one pound of methamphetamine, and again, Garcia drove him and acted as a lookout for law enforcement. Borrego and Garcia shared in any profits he made from the distribution of methamphetamine. Agents documented over 20 separate deliveries of methamphetamine from July 2014 to September of 2015 during the investigation of this case.
Borrego has also been ordered to forfeit five firearms that were seized during the investigation of this case.
Santillano has admitted that on September 10, 2015, he possessed with intent to distribute at least 50 grams of methamphetamine.
The Federal Bureau of Investigation, Greenville Police Department, Hunt County Sheriff’s Office, Plano Police Department, Denton Police Department, Texas Department of Public Safety, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney George Leal is in charge of the prosecution.
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Government Contractor to Pay $142,500 to Settle Civil Fraud Allegations Resulting from its Disclosure of ConductRead the Press Release
NORFOLK, Va. – Fairbanks Morse Engine (FME), located in Norfolk, has agreed to pay $142,500 to settle civil fraud allegations that their employees engaged in labor mischarging.
The allegations involved FME overcharging the Navy on a subcontract for engine repairs on the USS Ashland. FME had two subcontracts to perform work on the Ashland, a firm-fixed price subcontract and a time-and-materials subcontract. Supervisory hours were charged to the time-and-materials subcontract that should have already been included under the separate, firm-fixed-price subcontract. Along with taking corrective action once the conduct was revealed and repaying the overcharges, FME submitted a disclosure to the Department of Defense Office of Inspector General under the Contractor Business Ethics Compliance Program and Disclosure Rule, also known as the Federal Acquisition Regulations Mandatory Disclosure Rule. FME has now agreed to pay an additional $142,500 to settle alleged False Claims Act violations resulting from the disclosed conduct.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia, Naval Criminal Investigative Service, and the Defense Criminal Investigative Service with assistance from the Defense Contract Audit Agency.
The matter was investigated by Assistant U.S. Attorney Clare P. Wuerker. The civil claims settled by this False Claims Act agreement are allegations only; there has been no determination of civil liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Gonic Woman Pleads Guilty to Misprision of A Felony in Connection with Drug Distribution Causing DeathRead the Press Release
CONCORD – United States Attorney, Emily Gray Rice announced today that Jazzmyn Rood, 42, of Gonic, New Hampshire, pleaded guilty to misprision of a felony in connection with the distribution of a controlled substance resulting in death of Evangelique Tarmey.
According to documents that were filed in United States District Court and statements in the plea proceeding, the defendant was staying at the Riviera Motel with her boyfriend Mark Ross and Tarmey in October 2015. On October 16, 2015 Ross traveled with Tarmey and another individual to Lawrence, Massachusetts in order to obtain a quantity of heroin. Ross returned to the Riviera Motel and injected Rood with the drug and then injected himself with the drug. Ross provided a quantity of the drug to Tarmey and told Rood he had done so. The following morning, Tarmey was found dead in the motel room. The New Hampshire Medical Examiner later found that Ms. Tarmey died of acute fentanyl intoxication.
The Rochester Police responded to the motel on the morning of October 17, 2015. Rood was interviewed by the police and denied that Ross or she had used any controlled substance the evening before.
United States District Judge Paul Barbadoro scheduled the defendant’s sentencing for December 1, 2016.
New Hampshire has the third-highest rate of per capita drug overdose deaths in the United States. More than half of the drug overdose deaths in New Hampshire in 2015 were the result of fentanyl, either alone or in combination with other drugs.
United States Attorney Rice said, “I want to thank the Rochester Police Department and the Drug Enforcement Administration for their work on this case. Fighting the opioid epidemic is a multi-pronged, team effort. One facet of our attack is to prosecute those who are criminally responsible for causing drug overdoses. We will continue to work with law enforcement agencies to identify and prosecute the individuals who distribute drugs that cause overdose deaths. Any drug distribution has the potential to be deadly, regardless of the quantity of drugs involved. When a drug distribution causes an overdose death, my office will seek to hold the distributor accountable.”
In April 2016, the United States Attorney’s Office and the New Hampshire Attorney General’s Office announced the formation of an inter-office team of prosecutors who will work together to prosecute individuals who cause opiate overdoses in New Hampshire. This prosecution, initiated before the creation of the joint team, is an example of the type of case that will be generated by the team.
The case was investigated by the Rochester Police Department and the Drug Enforcement Administration assisted in the investigation. The case was prosecuted by Assistant United States Attorney Don Feith.
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Georgia Man Indicted for Bank Fraud and Aggravated I.D. TheftRead the Press Release
BIRMINGHAM – A federal grand jury on Wednesday indicted a Georgia man in connection with a counterfeit check and stolen identity scheme in north Alabama in late 2014, announced U.S. Attorney Joyce White Vance and U.S. Postal Inspector Frank Dyer.
A four-count indictment filed in U.S. District Court charges CAMERON MICHAEL MORAN, 29, of Rome, Ga., with two counts each of bank fraud and aggravated identity theft.
According to the indictment, Moran was aided by others not named in the indictment in a scheme to defraud BBVA Compass Bank of more than $18,000. Moran would obtain a stolen business check or a counterfeit check, forge the original check-maker’s signature on the counterfeit check and/or change the name of the payee on the stolen check, according to the charges. He then cashed those checks for his personal use.
Between Nov. 25 and 26, 2014, Moran cashed a $9,673 counterfeit check bearing a forged signature and drawn on the account of Transportation Services Inc. at a BBVA Compass Bank in Huntsville, the indictment charges. Moran also cashed a second counterfeit check on the Transportation Services account, in the amount of $8,946 and bearing a forged signature, at a BBVA Compass Bank in Madison, according to the indictment.
Moran is charged with aggravated identity theft on each check transaction for forging the name and using the associated account numbers of a Transportation Services employee as part of the charged bank fraud.
The maximum penalty for bank fraud is 30 years in prison and a $1 million fine. Aggravated identity theft carries a minimum two-year prison sentence that must be served after completion of any sentence imposed for the underlying crime, and a maximum $250,000 fine.
The U.S. Postal Inspection Service investigated the case, which Assistant U.S. Attorney David H. Estes is prosecuting.
An indictment contains only charges. A defendant is considered innocent unless and until proven guilty.
Former Ochsner Clinic Credit Union Manager SentencedRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JACQUELINE RAY, 60, of Biloxi, Mississippi, was sentenced yesterday after previously pleading guilty to a one-count Bill of Information charging her with stealing over $1 million from Ochsner Clinic Federal Credit Union in connection with bank larceny during her employment.
U.S. District Judge Susie Morgan sentenced RAY to six months incarceration, two and a half years supervised release, with a special condition of six months of home detention with electronic monitoring after her release from prison. RAY was ordered to pay restitution in the amount of $1,000,000 to the CUMIS Insurance Society, the entity which insured Ochsner Clinic Credit Union and $452,752.27 to the National Credit Union Association, the entity which covered the uninsured portion of the funds RAY stole. She was also ordered to pay a $100 special assessment. The Court waived the fine.
According to the documents filed in court, RAY was employed by Ochsner Clinic Federal Credit Union (OCFCU), as the credit union manager and had been employed at OCFCU for nearly thirty years. From 2007 to 2013, RAY stole $1.45 million by creating numerous fictitious loans on the books of OCFCU. RAY created approximately 149 fictitious loans.
No loan documentation existed on any of the fictitious loans. RAY controlled the day to day operation of OCFCU. These fictitious accounts were all coded in the OCFCU data processing system so that no statement of account would be generated, thus hiding RAY’S fraudulent scheme.
The proceeds from the fictitious loan would be stolen from the OCFCU in the form of a check drawn on the OCFCU and deposited in accounts controlled by RAY, or converted to cash. RAY also made false deposits into a local bank to make it appear that she had money in accounts she controlled, when she really did not. RAY would steal cash from these falsely inflated accounts.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the National Credit Union Administration in investigating this matter. Assistant United States Attorney Carter K. D. Guice, Jr. of the Fraud Unit was in charge of the prosecution.
Former Newtown Police Sergeant Sentenced to Prison for Manufacturing and Distributing SteroidsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that STEVEN SANTUCCI, 40, of Waterbury, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 16 months of imprisonment, followed by two years of supervised release, for manufacturing and distributing steroids. Judge Chatigny also ordered SANTUCCI to serve six months of home confinement and perform 120 hours of community service while on supervised release, and pay a $5,000 fine.
According to court documents and statements made in court, a long-term investigation led by the Federal Bureau of Investigation, Drug Enforcement Administration and Homeland Security Investigations revealed that SANTUCCI, a former Newtown Police sergeant, and others were receiving shipments of steroid ingredients from China and manufacturing and distributing wholesale quantities of steroids. The investigation also revealed that certain members of the conspiracy were distributing prescription pills, including oxycodone, as well as cocaine.
SANTUCCI used more than $120,000 in proceeds from the sale of anabolic steroids to wire payments to foreign sellers of ingredients to make liquid anabolic steroids, and to purchase drug packaging materials from domestic companies. Also, between April 2011 and November 2014, SANTUCCI charged more than $300,000 on two personal credit credits, including more than $100,000 to pay for various luxury vacations.
SANTUCCI was arrested on April 29, 2015. On December 9, 2015, he pleaded guilty to one count of conspiracy to distribute anabolic steroids and one count of conspiracy to launder monetary instruments.
SANTUCCI, who is released on a $100,000 bond, was ordered to report to prison on October 10.
This matter is being investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, Homeland Security Investigations, with the assistance of the U.S. Marshals Service, U.S. Postal Inspection Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Robert M. Spector.
Former Employee Sentenced for $130,000 Bank Theft SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former employee of Community National Bank in Aurora, Mo., was sentenced in federal court today for a $130,000 bank embezzlement scheme.
Jo Ann Nickell, 46, of Aurora, was sentenced by U.S. District Judge Stephen R. Bough to 18 months in federal prison without parole. The court also ordered Nickell to pay $130,268 in restitution to Community National Bank and its insurance company. Nickell must self-surrender on Oct. 3, 2016, to begin serving her sentence.
Nickell, who pleaded guilty on Oct. 27, 2015, was employed by Community National Bank as a customer service representative and back-up teller from Aug. 17, 2009, to July 19, 2013. Her thefts began nine months after being hired and continued for about three years.
According to court documents, Nickell stole money from the accounts of seven victims, ranging in age from 65 to 91, some of whom suffered from illnesses such as cancer and early dementia, and one who was in a nursing home. Nickell stole thousands of dollars from each of her victims, with individual thefts up to $14,400. Nickell concealed her thefts by having some bank statements come to the bank rather than being mailed to the customers.
The bank reimbursed all of the funds that were stolen from the victims of Nickell’s embezzlement scheme.
One of the victims told bank employees that his wife recently died at a nursing home, and he was going into the nursing home that week. Nickell stole funds from his account the very next day, according to court documents. Another customer, who was dying of cancer, purchased two Certificate of Deposits for $100,000 to leave for his children. Nickell stole one of those CD’s in the amount of $46,445.
A 72-year-old bank customer, who has a feeding tube due to surgery complications, said that Nickell was paying him “special savings interest” and that she kept his monthly statements so that no one else would know how much money he had. Nickell, who did not have the administrative power to change interest rates, was not in fact paying him a special interest rate. He referred to a small notebook where Nickell had written down his balance and interest, but those amounts were incorrect. Nickell had actually stolen $25,100 from his account.
Nickell’s embezzlement was discovered when she stole $8,000 from the savings account of an 87-year-old customer, who noticed the withdrawal on her statement and notified the bank. Nickell had attempted to change the customer’s account so that monthly bank statements came to the bank rather than being mailed to her residence, but didn’t do it correctly, so the customer did receive the statement in the mail.
As a result of Nickell’s criminal actions, Community National Bank and the Federal Deposit Insurance Corporation experienced a total loss of $130,268.
This case was prosecuted by Assistant U.S. Attorneys Abram McGull II and Nhan Nguyen. It was investigated by the Aurora, Mo., Police Department and the U.S. Secret Service.
Former DOJ Employee Sentenced to Seven Years in Federal Prison for Traveling to Engage in Sex with a MinorRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced James Cicala, age 55, of Columbia, Maryland today to seven years in prison, followed by 15 years of supervised release, for interstate travel with intent to engage in a sexual act with a minor. Judge Hollander also ordered that upon his release from prison Cicala 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).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Worcester County Sheriff Reggie T. Mason, Sr.; and Special Agent in Charge Michael Tompkins, Washington Field Office, U.S. Department of Justice Office of the Inspector General.
According to his plea agreement, Cicala was a career employee at the U.S. Department of Justice, providing information technology support. Cicala owned a beach house in Fenwick Island, Delaware. From March 2015 through at least July 21, 2015, Cicala placed multiple ads in the Delaware, Maryland and District of Columbia editions of an online marketplace, seeking females to engage in “daddy-daughter” relationships. On July 21, 2015, an undercover detective with the Worcester County Sheriff’s Office who was investigating child solicitation on the internet responded to Cicala’s ad entitled “Daddy’s Little Girl.” The undercover detective identified himself as “Sydney,” a 15 year old female, and Cicala identified himself as a male in his late 40’s.
Cicala and the undercover detective posing as “Syndey” exchanged messages for several weeks, eventually agreeing to meet to engage in sexually explicit conduct. On August 1, 2015, Cicala traveled from his beach house in Delaware to Berlin, Maryland, to meet “Sydney,” who did not show up, later claiming that she was unable to get away. The texting continued and Cicala again made arrangements to meet Sydney on August 15, 2015, in Berlin.
Virtually all of the conversations Cicala had with the undercover officer occurred using Cicala’s DOJ-issued phone or work computer, sometimes during work hours. Cicala frequently attempted to engage “Sydney” in sexually explicit chat, instructing her to delete the message, and sent Sydney nude and partially nude photos of himself. However, throughout the text message exchanges “Sydney” refused to send sexually explicit photos or engage in sexually explicit chat.
On August 15, 2015, Cicala traveled from his beach house in Delaware to Berlin, Maryland, to engage in sexual activity with “Sydney,” whom he believed to be a 15 year old girl. He was arrested as he arrived at the meeting place. He had his DOJ issued cell phone, which he had used for sending and receiving the texts with “Sydney.” In his SUV was bedding, pillows, a giftwrapped box with earrings Cicala had promised to bring “Sydney,” and cell phone batteries for the phone “Sydney” told him she used. On August 17, 2015, Cicala was placed on administrative leave by the Department of Justice and is no longer employed by the agency.
At today’s hearing, Judge Hollander also signed a preliminary order of forfeiture for the vehicle in which Cicala traveled to have sex with the 15 year old, and its contents, including gifts he had purchased for the girl he thought he was meeting. As part of his supervised release Judge Hollander ordered that Cicala have no access to the internet of any kind, including mobile devices, without approval from U.S. Probation and that he must participate in a sex offender treatment program as directed.
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 HSI Baltimore, Worcester County Sheriff’s Office and DOJ Office of the Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine, who prosecuted the case.
Former Crystal City Councilman Pleads Guilty to Role in Bribery and Kickback SchemeRead the Press Release
In Del Rio this afternoon, former Crystal City Councilman Gilbert Urrabazo pleaded guilty to a federal charge in connection with a bribery and kickback scheme involving city contracts announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Appearing before United States District Judge Alia Moses, Urrabazo, age 45, pleaded guilty to one count of federal programs bribery. By pleading guilty, Urrabazo admittedly used his official position in April 2015 to enrich himself by accepting a cash bribe from a person seeking to do business in Crystal City. As a result of his guilty plea, Urrabazo faces up to ten years in federal prison; a fine of up to $250,000; a $2,000 monetary judgment; and, forfeiture of approximately $1,000 in U.S. currency seized by authorities during this investigation. Urrabazo remains on bond pending sentencing which has yet to be scheduled.
Urrabazo is the fourth defendant to enter a guilty plea in this case. Former Mayo Pro-Tem Rogelio Mata, former City Councilman Roel Mata and businessman Ngoc Tri Nguyen have admitted their roles in the bribery and kickback scheme. All four defendants face up to ten years in federal prison.
Former City Attorney and City Manager William James Jonas, age 54, and former Crystal City Mayor Ricardo Lopez, age 40, remains under a superseding indictment charged with conspiracy to commit bribery. In addition, Jonas is charged with four bribery-related counts and ten wire fraud-related counts; Lopez, two bribery-related and four wire-fraud related charges. Upon conviction, Jonas and Lopez face up to five years in federal prison for the conspiracy to commit bribery charge, up to ten years in federal prison for each bribery related charge, and up to 20 years in federal prison for each wire fraud related charge. Both are out on bond at this time awaiting trial scheduled for November 15, 2016, in Del Rio before United States District Judge Alia Moses.
This ongoing joint investigation is being conducted by the FBI and the San Antonio Police Department with assistance from the Texas Department of Public Safety Criminal Investigative Division and the Texas Rangers. Individuals who have first-hand information about corruption, fraud, or bribery related to Crystal City are urged to contact the FBI at (210) 225-6741.
Assistant United States Attorneys Jay Hulings and William R. Harris are prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. Jonas and Lopez are presumed innocent until proven guilty in a court of law.
Former Contracting Officer Fined for Violating the Trade Secrets ActRead the Press Release
CORPUS CHRISTI, Texas – A former Corpus Christi contracting officer with the U.S. Army has admitted to violating The Trade Secrets Act, announced U.S. Attorney Kenneth Magidson.
The Trade Secrets Act prohibits an officer or employee of the United States from publishing, divulging, disclosing or making known in any manner or to any extent not authorized by law any information coming to them in the course of their employment or official duties.
Evangelina Prado, 60, was a contracting officer with the U.S. Army at the Corpus Christi Army Depot (CCAD). While performing her duties as a contracting officer, Prado disclosed procurement sensitive information dealing with contract bids for work that was to be performed at CCAD. The information was disclosed prior to the close of the bidding process and was not authorized by law.
Prado pleaded guilty today before U.S. Magistrate B. Janice Ellington. Following the plea, the court ordered she pay a $1,000 fine and serve two years of probation.
The U.S. Army Criminal Investigation Command—Major Procurement Fraud Unit conducted the investigation. Assistant U.S. Attorney Hugo R. Martinez prosecuted the case.
Federal and State Officials Invite Public to Attend Anti-Heroin EventRead the Press Release
Baltimore – A premier screening of a new documentary titled "Chasing the Dragon, The Life of an Opiate Addict," on Thursday, August 25, 2016 at 6:00 p.m. at the Community College of Baltimore County, Center for the Arts Building, 800 Rolling Road in Catonsville, Maryland.
The screening is sponsored by The Federal Bureau of Investigation (FBI) Baltimore Field Office, the Drug Enforcement Administration - Baltimore District Office, the U.S. Attorney's Office, Maryland Attorney General's Office and the Governor’s Office of Crime Control and Prevention.
“Attend the screening and watch the movie if you want to understand the heroin crisis and the extraordinary danger it poses,” said FBI Special Agent in Charge Kevin Perkins. “We need to prevent people from getting addicted to oxycodone and heroin, because treatment and prosecution cannot solve the problem.”
“As law enforcement has worked hard to address the prescription drug abuse epidemic, heroin has made a resurgence,” said DEA Special Agent in Charge Karl Colder. “We are at a critical point and need the support of our nation’s educators.”
The film was produced by the FBI and Drug Enforcement Administration (DEA) to educate high school students and young adults about the dangers of prescription drug and opioid abuse, and the tragic consequences of addiction. The multi-agency goal is to promote the film to local educators and professionals who work with young people and encourage them to consider incorporating the film into their drug awareness program or curriculum. THE EVENT IS OPEN TO THE MEDIA AND THE PUBLIC, so please share this information.
You can preview the two-minute trailer on YouTube at https://www.youtube.com/watch?v=yJQwfAQRRAE. Also, here is a link to more information about documentary and the overall effort of the FBI and DEA to raise awareness about the national epidemic of heroin and prescription drug abuse: https://www.fbi.gov/news/pressrel/press-releases/fbi-dea-release-documentary-film-addressing-heroin-prescription-drug-abuse.
Opening remarks will be provided by Dr. Sandra Kurtinitis, President, Community College of Baltimore County, Catonsville; Rod J. Rosenstein, United States Attorney for the District of Maryland; Special Agent in Charge Kevin Perkins, FBI Baltimore; Assistant Special Agent in Charge Don A Hibbert, DEA Baltimore; Brian Frosh, Maryland Attorney General; and Boyd Rutherford, Lieutenant Governor of Maryland.
The film screening will be followed by a panel discussion that will include representatives from law enforcement, health care, mental health, and recovery specialists. FBI Public Affairs Advisor Michael Kulstad will moderate the panel discussion. Kulstad was a part of the FBI team that produced the video and has become a passionate advocate of promoting awareness and prevention nationwide.
The crisis involving prescription drug and opioid abuse is unlike any we have ever seen. Statistics show that deaths from opioid overdoses are one of the leading causes of accidental death in our country. In June of 2010, the CDC announced that 1 in 5 high school students had abused a prescription drug.
For more information, contact Dave Fitz at (410)277-6689 or Marcia Murphy at (410) 209-4854.
Federal Jury Convicts Birmingham Man of Preparing False Tax Returns and Witness TamperingRead the Press Release
BIRMINGHAM – A federal jury on Wednesday convicted a Birmingham man for assisting in the preparation of false income tax returns and tampering with a witness who the IRS contacted to question about returns he had prepared, announced U.S. Attorney Joyce White Vance and Internal Revenue Service Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot.
Following a three-day trial before U.S. District Judge Abdul K. Kallon, the jury convicted DONALD E. STEELE, 41, on five counts of assisting in the preparation of a false federal income tax return in 2010 or 2011, and on one count of witness tampering in 2011. At the time, Steele operated Max Tax, a Birmingham tax return preparation business owned by his wife.
According to evidence at trial, Steele made false claims and fabricated tax deductions on federal tax returns for three different taxpayers.
Multiple taxpayer witnesses testified that they were not given a copy of their tax return when they were prepared. When investigators later presented them their returns, they saw fraudulent claims that included false filing status, false dependents, false itemized expenses including medical and dental deductions and charitable contributions, false business expenses and deductions, and false disability claims and education expenses and credits.
The jury found Steele guilty of tampering with a witness for whom he had prepared a fraudulent 2010 return. The woman testified that she tried unsuccessfully many times to get a copy of her return from Steele, but once the investigation began, he showed up at her workplace and handed her a $200 check, which she considered a bribe not to talk to the IRS.
The maximum penalty for aiding in the preparation of a false federal income tax return is three years in prison and a $250,000 fine. The maximum penalty for witness tampering is 20 years in prison and a $250,000 fine.
IRS-CI investigated the case, which Assistant U.S. Attorneys J. Patton Meadows and Manu Balanchandran are prosecuting.
Evanston Man Sentenced to Eight Years in Prison for Distributing Marijuana and Laundering the Proceeds Through Luxury Auto PurchasesRead the Press Release
CHICAGO — The leader of a drug trafficking organization was sentenced today to eight years in prison for distributing more than 1,000 kilograms of marijuana and laundering the proceeds through luxury auto purchases and high-end property leases.
JONATHAN TANKSON, 32, of Evanston, coordinated bulk shipments of marijuana from large-scale growers in California. Between December 2010 and December 2013, Tankson flew to California at least twice per month, typically bringing with him on the plane $400,000 to $500,000 in cash. He often purchased 100 to 200 pounds of marijuana at a time, with the drugs being shipped on vans and tractor trailers to stash houses in Chicago. One of the stash houses was located in the Lincoln Park neighborhood of Chicago, while another was set up in a penthouse apartment in the city’s River West neighborhood.
Tankson pleaded guilty in June to one count of conspiracy to possess a controlled substance with the intent to deliver, and one count of conspiracy to commit money laundering. U.S. District Judge Matthew F. Kennelly imposed the 96-month sentence in federal court in Chicago.
“The seriousness of defendant’s drug trafficking and money laundering crimes cannot be overstated,” Assistant U.S. Attorney Kartik K. Raman argued in the government’s sentencing memorandum. “For several years, defendant plagued the community by directly purchasing wholesale quantities of marijuana from growers in California, in order to sell the drug on the streets for profit.”
According to a written plea agreement, Tankson used drug proceeds to purchase several luxury automobiles through straw purchasers. Between June 2011 and December 2013, Tankson orchestrated the purchases of a Porsche Cayenne sport utility vehicle for $140,000, a Mercedes-Benz S63 sedan for $108,000, of which $75,000 was paid in cash after trading in another Mercedes, an Audi A8 sedan for $80,000, and several other expensive vehicles. Tankson acknowledged in the plea agreement that the auto transactions were intended to conceal the source of the drug proceeds.
Tankson was arrested in December 2013. During a search of his Lincoln Park stash house, law enforcement discovered more than $1 million in cash, approximately 75 kilograms of cannabis stuffed into numerous plastic bags, five suitcases filled with cannabis, 20 rounds of 9mm ammunition, and two 9mm pistol magazines, according to a criminal complaint filed in the case.
Investigators thereafter began an extensive money laundering investigation that led to the convictions of two Chicago residents. SONGHANE TRAORE orchestrated the straw purchases of Tankson’s vehicles, while JEROME B. MARSHALL helped Tankson fraudulently lease the Lincoln Park home. Judge Kennelly will sentence Traore on Sept. 8, 2016, and Marshall on Sept. 15, 2016.
Tankson’s sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Jeffery Magee, Special Agent in Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; James D. Robnett, Special Agent-in-Charge of the Chicago Office of the Internal Revenue Service Criminal Investigation Division; and Eddie T. Johnson, Chicago Police Superintendent.
The government is represented by Mr. Raman.
Elyria man indicted for selling fentanyl that caused fatal overdoseRead the Press Release
A nine-count federal indictment was filed charging an Elyria man with selling heroin and fentanyl, including a dose of fentanyl that caused the fatal overdose of a Lorain County man, law enforcement officials said.
David Andrew Hollis, 27, sold heroin or fentanyl several times between October 2015 and March 2016. He sold fentanyl on Feb. 21 to a man who fatally overdosed in Lorain County, according to the indictment.
“We will continue to hold drug dealers who sell heroin and fentanyl accountable for the deaths and misery they cause,” said U.S. Attorney Carole S. Rendon. “It will take aggressive enforcement, combined with prevention efforts and making treatment available to those who want help, to turn the tide on the opioid epidemic.”
"We are committed to aggressively pursue heroin and fentanyl traffickers and organizations that are creating the drug epidemic that our communities face every day," Lorain County Sheriff Phil R. Stammitti said.
The U.S. Attorney's Office has filed 15 indictments related to sales of heroin or fentanly that directly resulted in deaths since the beginning of last year.
This case is being prosecuted by Assistant U.S. Attorneys Marisa Darden and Robert Corts following an investigation by the Lorain County Drug Task Force.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
El Salvador citizen sentenced to 12 months in prison for smuggling illegal aliens for profitRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that a citizen of El Salvador was sentenced to 12 months in prison for transporting illegal immigrants for his own profit.
Raul Alexander Soriano, 29, of San Salvador, El Salvador, was sentenced by U.S. District Judge Patricia Minaldi on one count of transporting illegal aliens. According to the April 20, 2016 guilty plea, U.S. Border Patrol agents stopped Soriano’s vehicle on December 22, 2015, near Lake Charles. Four passengers were found in the vehicle with Soriano, and each admitted to being in the United States illegally. The passengers had paid Soriano to be transported to other areas of the United States as part of a human smuggling operation.
United States Border Patrol and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney David C. Joseph prosecuted the case.
Eagle Pass Texas Mexican Mafia Leader Faces up to Life Imprisonment after Pleading Guilty to Federal R.I.C.O. ChargeRead the Press Release
In Del Rio, 36-year-old Eagle Pass Texas Mexican Mafia (TMM) leader Jesus Lopez (aka “Worst Ever”) faces up to life in federal prison after pleading guilty today to conspiring to violate the Racketeering Influenced Corrupt Organization (RICO) statute to include acts of murder, extortion and drug trafficking. That announcement was made today by United States Attorney Richard Durbin, Jr.; Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division; Texas Department of Public Safety Director Steve McCraw; Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division; Homeland Security Investigations Special Agent in Charge Shane Folden; and, Chief Patrol Agent Rodolfo Karisch, U.S. Border Patrol, Del Rio Sector.
According to court records, under the direction of Lopez, fellow TMM member and co-defendant Anselmo Flores, age 28 formerly of Eagle Pass, stabbed and murdered Eagle Pass resident Angel Cantu on January 22, 2011. In an effort to deflect law enforcement attention away from the criminal enterprise, Lopez provided money to Flores following the murder so that Flores could flee the area. Furthermore, at the time of Cantu’s murder, fellow TMM member and co-defendant, 37-year-old Francisco Hernandez of Eagle Pass, assaulted an individual with a dangerous weapon.
Court records also reflect that in December 2010, Lopez ordered Flores, Hernandez and others to retrieve and destroy firearms, which they did, that were used during the attempted murder of an individual who provided information about the TMM to law enforcement. Since 2009, Lopez admitted to distributing narcotics and extorting other cocaine distributors in Eagle Pass in furtherance of the TMM criminal enterprise.
Lopez, Flores and Hernandez are among 16 TMM members or associates to enter a guilty plea resulting from this investigation. No sentencing date has been scheduled for Lopez.
This investigation was conducted by the FBI, Texas Rangers, Texas Department of Public Safety Criminal Investigation Division, Drug Enforcement Administration, Homeland Security Investigations (HSI) and the United States Border Patrol.
Court Approves U.S. Department of Justice and U.S. Army Corps of Engineers Settlement of Clean Water Act Violations by the Bear’s Club Founding Partners, LtdRead the Press Release
Yesterday, U.S. District Judge William P. Dimitrouleas of the U.S. District Court for the Southern District of Florida approved a consent decree that resolves alleged violations of the Clean Water Act by The Bear’s Club Founding Partners Ltd., several of its officers and related entities. The complaint was brought in 2015 by the U.S. Attorney’s Office for the Southern District of Florida, on behalf of the U.S. Army Corps of Engineers (Corps), Jacksonville District.
The Clean Water Act requires any person who plans to fill federally protected wetlands to receive a permit from the Corps. A permit issued to The Bear’s Club Founding Partners Ltd., in 1999 authorized it to fill certain wetlands on its property in Jupiter, Florida, for the purpose of building a residential golf community. As a condition of the permit, the Bear’s Club was required to preserve certain wetlands on its property in their natural state. The complaint alleged that the Bear’s Club violated the conditions of its permit by filling nearly an acre of wetlands which were required to remain intact. The Bear’s Club’s apparent purpose for filling the wetlands was to make its golf course more easily playable by weaker golfers.
Under the consent decree, the defendants are required to pay a civil penalty of $400,000. In addition, to offset the environmental impact of their activity, The Bear’s Club had previously contributed additional sums toward the enhancement of seven acres of wetlands in the Grassy Waters Preserve in West Palm Beach.
“When wetlands are filled in violation of the Clean Water Act, the loss is felt not only today, but by all generations to come,” said U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida. “The substantial penalty obtained in this case sends a message to anyone who fails to abide by our nation’s environmental laws that they will be held accountable for their non-compliance.”
Compliance and enforcement is an important component of the Corps’ Regulatory program. The Corps’ Jacksonville district has an ongoing compliance inspection program throughout Florida, Puerto Rico and the U.S. Virgin Islands. Corps’ surveillance and monitoring activities are often aided by state and federal agencies, groups and individuals, who report suspected violations. To address violations, the Corps is authorized to prescribe corrective action, impose fines and/or prescribe removal of the offending fill, work or structure.
“The penalty in this case furthers the Army's mission to administer and enforce section 404 of the Clean Water Act by encouraging compliance with permits and the regulatory process,” said Colonel Jason A. Kirk, commander for the Jacksonville district.
For more information on Jacksonville district and the Corps’ Regulatory program, visit: www.saj.usace.army.mil/.
This case is being handled by Assistant U.S. Attorney Carlos Raurell for the Southern District of Florida and Andrew J. Doyle of the Environmental Defense Section of the Environment and Natural Resources Division of the U.S. Department of Justice.
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.
Couple Pleads Guilty to $20 Million Visa Fraud Involving Indian WorkersRead the Press Release
ALEXANDRIA, Va. – Raju Kosuri, 44, and Smriti Jharia, 45, a married couple from Ashburn, pleaded guilty today to charges of conspiracy to defraud the United States and visa fraud, among other charges.
Kosuri and Jharia were indicted on April 27. According to the statement of facts filed with the plea agreement, Kosuri, Jharia, and their co-conspirators fraudulently applied for more than 900 illegal immigration benefits under the H-1B visa program. Since 2008, and at much greater scale since 2011, Kosuri has built a staffing business that amounts to a visa-for-sale system, in violation of federal law. Kosuri and Jharia also admitted to defrauding the Small Business Administration in connection with a scheme to obtain HUBZone certification for a business named EcomNets Federal Solutions. Kosuri agreed to forfeit proceeds of his fraud schemes in the amount of $20,900,000.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington; Bill A. Miller, Director of Diplomatic Security Service (DSS), U.S. Department of State; and Robin Blake, Special Agent in Charge, U.S. Department of Labor (DOL), Office of Inspector General; and Kimberly Zanotti, Washington Field Office Director, U.S. Citizenship and Immigration Services (USCIS), made the announcement after the pleas were accepted by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorneys Paul K. Nitze and Angela Fiorentino-Rios are prosecuting the case.
The case was investigated by HSI, DSS, DOL-OIG, and USCIS. Assistance was provided by the Virginia Office of the State Inspector General, the U.S. Postal Inspection Service, the U.S. Postal Service Office of Inspector General, the Loudoun County Sheriff’s Office, and the Fairfax County Police Department.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-CR-43.
Corning Business Owner Pleads Guilty to Fraud ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that the former owner and CEO of Cornerstone Homes, David Fleet, 52, of Corning, NY, pleaded guilty to mail fraud, before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Fleet owned a real estate business from 1997 to 2014 that ultimately came to be known as Cornerstone Homes. Cornerstone’s business involved the purchase, renovation and resale or renting of distressed homes.
In order to acquire the distressed homes, Fleet sold debentures to private investors promising annual rates of return of 8%-10%. Fleet thereafter caused Cornerstone to borrow approximately $25,000,000 from various banks, and to pledge the houses that had been acquired with private investor money as security for the bank loans.
By March 2010, Fleet knew that Cornerstone’s operating income was insufficient to pay its debt service to the banks and the private investors. The defendant also lost more than $2,000,000 in risky options trades. However, Fleet continued to solicit additional private investments without disclosing Cornerstone’s true financial picture, including the fact that he had more than $2,000,000 of Cornerstone’s capital. In March 2010, Fleet raised approximately $84,000 from approximately 13 investors based upon statements and representations that were materially misleading.
The plea is the result of/culmination of an investigation by Inspectors of the United States Postal Inspection Service, acting under the direction of Inspector-In-Charge, Boston Division, Shelly Binkowski, the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, and the Internal Revenue Service, Criminal Investigations, under the direction of Shantelle Kitchen.
Sentencing is scheduled for November 29, 2016 at 3:00 p.m. before Judge Wolford.
Columbia Man Indicted for Investment FraudRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Columbia, Mo., man has been indicted by a federal grand jury for an investment fraud scheme.
Billings Chapman, 77, of Columbia, was charged in a six-count indictment returned under seal by a federal grand jury in Jefferson City, Mo., on Wednesday, Aug. 24, 2016. That indictment was unsealed and made public today upon Chapman’s arrest and initial court appearance.
Chapman owned an interest in CheckmarcUSA, LLC, a company formed to provide bad check collection services to banks. He also owned Federal Financial Services, LLC (FFS), which he used to solicit investors.
The federal indictment alleges that Chapman engaged in a scheme from May 26, 2011, to April 30, 2014, to defraud investors by making materially false representations and using investment funds for his own personal benefit.
Chapman falsely told investors that he held a doctorate in economics and that he had taught economics at a university, the indictment says. He allegedly guaranteed monthly payments to investors and guaranteed a 20 percent rate of return that would be paid monthly or quarterly. Chapman allegedly misrepresented to investors his financial condition and the financial condition of FFS, claiming that large numbers of banks had signed up for CheckmarcUSA’s services and that FFS was accruing substantial income as a result.
According to the indictment, Chapman did not tell investors that he had been barred from engaging in the securities industry in 1970 by the National Association of Securities Dealers, or that he had been issued cease and desist orders in 1991 and in 2004 from the Missouri Commissioner of Securities for engaging in fraudulent or illegal practices in the securities business. Chapman, who was not registered to sell securities in Missouri, allegedly used investor money for his own personal gain and to make payments to prior investors.
The federal indictment charges Chapman with three counts of mail fraud and two counts of wire fraud. Chapman is also charged with one count of money laundering, related to the transfer of $100,000 that was allegedly derived by fraud.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the FBI.
Cleveland man pleads guilty to distributing crack cocaine on Wheeling IslandRead the Press Release
WHEELING, WEST VIRGINIA – Anton Demetrius Matthews, 32, of Cleveland, Ohio, pled guilty to crack cocaine distribution in federal court today, United States Attorney William J. Ihlenfeld, II, announced.
Matthews pled guilty to one count of “Distribution of Cocaine Base Within 1,000 Feet of a Protected Location.” He admitted to selling crack cocaine on Wheeling Island near Madison Elementary School. He faces up to forty years in prison and a fine of up to $2,000,000. 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 David J. Perri prosecuted the case on behalf of the government. The Ohio Valley Drug & Violent Crime Task Force investigated.
U.S. Magistrate Judge James E. Seibert presided.
Canonsburg Woman Embezzled from Employer to Get Money for GamblingRead the Press Release
PITTSBURGH - A Washington County resident pleaded guilty in federal court to charges of mail fraud, United States Attorney David J. Hickton announced today.
Teri L. Zemencik, 50, of Canonsburg, Pa., pleaded guilty to four counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Zemencik defrauded her employer, IGS Industries, Inc., by embezzling in excess of $494,000 over a time frame of more than five years. During the period from December 2009 through March 2015, Zemencik, who was the Payroll Supervisor and Accounting Clerk for IGS Industries, issued approximately 145 checks from the company’s account by falsely entering information into the company’s accounting system to make it appear that the checks had been issued to legitimate vendors. The investigation revealed that the majority of the embezzled funds were used to repay cash advances charged to Zemencik’s personal credit cards. The investigation further revealed that Zemencik used the cash she obtained from the cash advances to gamble at local casinos.
Judge Cercone scheduled sentencing for Jan. 5, 2017, at 10:30 a.m. The law provides for a total sentence of 80 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and the Chartiers Township Police Department conducted the investigation that led to the prosecution of Teri L. Zemencik.
Binghamton Man Sentenced for Sex Trafficking and Prostitution of A ChildRead the Press Release
BINGHAMTON, NEW YORK – Alphonso Dennis, 34, of Binghamton, New York, was sentenced to serve fifteen years in prison in connection with his convictions for sex trafficking of a child (four counts) and prostitution of a child (2 counts).
The announcement was made by United States Attorney Richard S. Hartunian, Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation, and New York State Police Superintendent George P. Beach, II.
In addition to being sentenced to fifteen years in federal prison, Dennis is also required to serve a twenty-year term of supervised release following his release from custody and must register as a sex offender.
As part of his guilty plea, Alphonso Dennis admitted that from August 2014 to November 2014, in Broome County, New York, Dennis hosted two minors, ages 14 and 15, at his apartment who met with men for the purpose of engaging in sex acts for money. Dennis, who was aware of their ages, also arranged for the two minors to be transported to various locations for the purpose of having them engage in commercial sex acts. Using a cell phone, Dennis took photos of the minors in sexually provocative poses that he posted on an Internet advertising site. Dennis directed the minors how much money to charge for sex and required them to give him 50% of the money that they received.
The prosecution stems from an investigation into a child prostitution ring conducted by the Federal Bureau of Investigation, the New York State Police, and the Town of Vestal Police Department.
The case was prosecuted by Assistant U.S. Attorney Miroslav Lovric.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Big Freedia Sentenced for Section 8 FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that FREDDIE ROSS, JR., age 38, of New Orleans, who performs under the stage name Big Freedia, was sentenced today after previously pleading guilty to theft of government funds.
U.S. District Judge Lance M. Africk sentenced ROSS to three years’ probation, including 100 hours of unpaid community service. Additionally, ROSS was ordered to pay $34,849 in restitution to the Housing Authority - New Orleans (HANO) and fined $35,000.
According to court documents, the United States Department of Housing and Urban Development, a department of the United States, provided federal funds to local public housing authorities to assist low income citizens with private market rental payments, including utility payments, through a tenant-based voucher program known as the Housing Choice Voucher Program, or “Section 8” Program. The Section 8 program was created to subsidize the rents of the very poor, the elderly, and the disabled by allowing families to choose privately owned rental housing and subsidizing the majority of the fair market rent. Program participants paid part of their rents—an amount equal to thirty percent of the household's income—and the federal government directly pays the landlords the remainder. The eligibility for Section 8 benefits and the amount of the voucher subsidy were determined by, among other things, the household income of the applicant and the number of people in the household. In New Orleans, this amounted to not more than $21,700 per year.
ROSS first applied for Section 8 benefits in March 2009. He listed his monthly income as between $100 and $1,000, and he disclosed no additional assets on his application. As a result of these representations, ROSS was accepted into the program and began receiving approximately $521 per month for his rental of a residence in New Orleans.
Thereafter, ROSS submitted recertification documents to HANO on a yearly basis through 2014. HANO relied on ROSS’S representations in the documents to determine whether he continued to qualify for Section 8 benefits. In his yearly recertification forms, ROSS falsely listed his annual income to be as follows: $0 (2011), $14,400 (2012), $12,000, plus a one-time $2,000 gift from his father (2013), and $12,000 (2014). ROSS also listed his assets to be as follows: $0 (2011), $100 (2012), $165 (2013), $250 (2014).
In fact, ROSS derived considerable income through his entertainment and music businesses, including payments for performing concerts, starring in television programs, royalties, and the sale of merchandise bearing his likeness. ROSS failed to disclose this income to HANO, as well as the existence of multiple bank accounts under his name and the name of his several corporate entities. ROSS’S statements about the amount of his assets constituted material misrepresentations upon which HANO representatives relied to determine his eligibility to receive Section 8 benefits. ROSS’S true income, had he reported it accurately, would have disqualified him from receiving Section 8 benefits in each year between 2010 and 2014. In total, as a result of the false representations ROSS made to HANO, he fraudulently received the benefit of Section 8 funds to rent the residences in New Orleans totaling approximately $34,849.00 between about January 2010 and November 2014.
U.S. Attorney Polite praised the work of the United States Department of Housing and Urban Development – Office of the Inspector General and the Federal Bureau of Investigation, with assistance from the Housing Authority of New Orleans, as well as Josephine Beninati, CPA, CFE, who was responsible for identifying the true sources and amount of ROSS’S income. Assistant United States Attorneys Jordan Ginsberg and Maria Carboni were in charge of the prosecution.
Bernalillo County Man Pleads Guilty to Failing to Update his Sex Offender RegistrationRead the Press Release
ALBUQUERQUE – Bruce Hayes Bell, 65, of Albuquerque, N.M., pled guilty this morning in federal court to violating the Sex Offender Registration and Notification Act (SORNA). Under the terms of his plea agreement, Bell will be sentenced to a year and a day in prison followed by not less than three years of supervised release. Bell will be required to register as a sex offender after completing his prison sentence.
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations.
Bell was arrested on Dec. 9, 2015, on a criminal complaint charging him with violating SORNA by failing to update his sex offender registration. According to the complaint, Bell was required to register as a sex offender because of his prior convictions for sexual assault on a child on June 6, 2011 and Nov. 10, 2010 in Colorado and criminal sexual penetration on Feb. 1, 2012 in Bernalillo County, N.M.
Bell was subsequently indicted on the same charge on Dec. 17, 2015. According to the indictment, Bell failed to update his registration between Oct. 21, 2015 and Dec. 2, 2015, in Bernalillo County, N.M.
During today’s proceedings, Bell pled guilty to the indictment. In entering the guilty plea, Bell admitted that he was a sex offender and failed to update his sex offender registration as required by SORNA. Bell remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the U.S. Marshals Service and the Bernalillo County Sheriff’s Office. Assistant U.S. Attorney Elaine Y. Ramirez is prosecuting the case.