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Thursday 30 June 2016
Federal Court Permanently Shuts Down South Florida Tax Return PreparerRead the Press Release
A federal court in Fort Lauderdale, Florida, has permanently barred a Broward County man from preparing federal tax returns for others, the Justice Department announced today.
The United States filed a civil complaint against Eli St. Phard of Oakland Park, Florida, in April. The complaint alleged that he prepared income tax returns that fraudulently understated his customers’ tax liabilities by falsely claiming deductions for business expenses his customers never incurred; fraudulently overstating his customers’ claims for refunds by falsely claiming education or fuel tax credits to which his customers were not entitled; or both. According to the complaint, the Internal Revenue Service (IRS) audited 340 of the returns St. Phard prepared and found that St. Phard understated the tax owed on all but five of the 340 returns—a total of more than $1.8 million in understatements. As a result of St. Phard’s fraudulent activities, many of his customers are now liable for significant tax deficiencies, penalties and interest, the complaint alleged.
In addition to barring St. Phard from preparing federal tax returns, the court ordered St. Phard to give the United States a list of his customers. St. Phard consented to entry of the order by the U.S. District Court for the Southern District of Florida. St. Phard admitted, for purposes of this case, that he had engaged in conduct subject to penalty under the federal tax laws, but he did not admit to civil or criminal wrongdoing or to the specific allegations in the complaint.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
El Dorado County Health Care Provider Agrees to Pay $5.5m to Resolve False Claims Act AllegationsRead the Press Release
SACRAMENTO, Calif. — Acting U.S. Attorney Phillip A. Talbert announced today that El Dorado County based Marshall Medical Center (MMC) will pay the United States and the State of California $5.5 million to settle allegations that MMC; Marshall Foundation for Community Health; El Dorado Hematology & Medical Oncology II, Inc.; Lin H. Soe, M.D.; and Tsuong Tsai, M.D., violated the federal False Claims Act and the State of California’s version of the False Claims Act. The federal lawsuit, filed by whistleblower Colleen Herren, contends that MMC and the other defendants defrauded Medicare, Tricare and Medicaid by a variety of billing improprieties.
The settlement resolves the allegations that the defendants submitted false Medicare and Medi-Cal bills. The complaint alleged that the defendants performed chemotherapy infusions without having a physician present as required. One of the oncologists referred cancer patients from the oncology clinic to the hospital for blood transfusions and improperly billed Medicare for observation codes that require visits by the doctor in conjunction with the transfusions and no doctor visited. The clinic’s oncology nurses used single dose vials on two subsequent patients and billed Medicare and Medicaid for two dosages. In the settlement, the defendants do not admit liability for the alleged false conduct.
Ms. Herren filed her lawsuit on behalf of the United States and State of California in January 2012, and she alleged that she was fired from her job as an oncology nurse in the clinic when she apprised management of the defendants’ billing practices. Ms. Herren's employment claims were not included in the settlement and have since been separately resolved and dismissed. She will receive a 26 percent share of the $5.5 million per the whistleblower provisions of the False Claims Act.
“Health care related fraud investigations are one of my District’s top priorities. My office works closely with our federal and state partners to ensure that patients receive proper medical care with drug regimens that are safe and properly administered, and to ensure that our publicly funded health care insurers reimburse practitioners only for approved services and medicines,” stated Acting U.S. Attorney Talbert.
This case was investigated by the United States Office of Inspector General of the U.S. Department of Health and Human Services, the Defense Criminal Investigative Service Office of Inspector General, and the California Department of Justice, Office of the Attorney General, Bureau of Medi-Cal Fraud and Elder Abuse. Assistant U.S. Attorneys Kelli L. Taylor and Kurt A. Didier handled the case.
El Departamento de Justicia Colabora con la República de El Salvador para Combatir la Discriminación en el EmpleoRead the Press Release
WASHINGTON – El Departamento de Justicia y la República de El Salvador establecieron hoy una asociación formal para proteger a trabajadores de la discriminación por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen. La Secretaria de Justicia Auxiliar Adjunta Principal, Vanita Gupta, Directora de la División de Derechos Civiles del Departamento de Justicia y la embajadora salvadoreña, Claudia Canjura De Centeno, firmaron un memorando de entendimiento (MOU, por sus siglas en inglés) entre la embajada y sus consulados y la Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas con la Inmigración (OSC, por sus singlas en inglés), que pertenece a la División.
Como parte del MOU, la OSC y el gobierno salvadoreño se comprometen a colaborar para educar a los trabajadores acerca de sus derechos y brindarles los recursos necesarios para proteger tales derechos. Asimismo, el MOU promueve la capacitación para empleadores en cuanto a sus obligaciones al amparo de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés), que prohíbe la discriminación en el empleo por motivos de ciudadanía, estatus migratorio o nacionalidad de origen. En concreto, el MOU dispone que:
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La OSC capacitará al personal consular salvadoreño en lo que se refiere a la disposición de la INA, participará en eventos organizados por los consulados salvadoreños para educar a los trabajadores y empleadores y distribuirá materiales educativos a la embajada y sus consulados.
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La embajada establecerá un sistema para referir denuncias de discriminación recibidas en la embajada y sus consulados a la OSC.
“Damos la bienvenida a este socio nuevo que ayudará a la División de Derechos Civiles a combatir la discriminación ilícita en contra de empleados que trabajan en los Estados Unidos y sinceramente apreciamos la oportunidad de alcanzar esta meta tan importante,” declaró la Secretaria de Justicia Auxiliar Adjunta Principal, Vanita Gupta. “Esperamos que la formalización de nuestra asociación con El Salvador mande un mensaje claro a los trabajadores de nuestras ganas de ayudarlos.”
El acuerdo de hoy resulta particularmente útil por el gran número de nacionales salvadoreños con el estatus de protección temporal (TPS, por sus siglas en inglés), los cuales son elegibles para vivir y trabajar en los Estados Unidos pero quienes a veces son discriminados por sus empleadores, ya sea por motivos de su estatus migratorio o por su nacionalidad de origen. El TPS es un estatus migratorio temporal que se extiende a nacionales elegibles de un país designado para el TPS al amparo de la INA. Durante el período de duración del TPS, los beneficiarios del TPS cuentan con autorización para trabajar en los Estados Unidos.
La OSC es responsable de aplicar la disposición antidiscriminatoria de la INA. Entre otras cosas, esta ley prohíbe la discriminación por motivos de estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; la discriminación en el proceso de verificación de la elegibilidad de empleo; las represalias y la intimidación. Además de sus esfuerzos por aplicar la ley, la OSC se dedica a educar al público en cuanto a los derechos y las responsabilidades al amparo de la disposición antidiscriminatoria de la INA. Si desea más información sobre la OSC, vaya a www.justice.gov/crt/about/osc.
Para más información sobre protecciones contra la discriminación en el empleo en virtud de las leyes migratorias, llame a la línea directa de la OSC para trabajadores al 1‑800‑255-7688 (1‑800-237-2515, TTY para personas con discapacidades auditivas); llame a la línea directa de la OSC para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); matricúlese para un seminario en línea gratuito en www.justice.gov/crt/about/osc/webinars.php; mande un correo electrónico a [email protected] o visite la página web de la OSC en www.justice.gov/crt/about/osc.
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Dunkirk Man Pleads Guilty in Major Cocaine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Angel Pierluissi pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, cocaine, before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
“This conviction demonstrates that illegal drugs are not confined to a single area of the country,” said U.S. Attorney Hochul. “At the same time, thanks to our invaluable partnerships with all levels of law enforcement, extraordinary successes in our fight against the scourge of these poisons are also possible.”
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that Pierluissi was a member of a drug trafficking organization led by co-defendants Rafael Burgos and David Jesus Pagan. The organization operated between 2013 and June 10, 2015. During that time, members distributed multiple kilograms of cocaine throughout the Dunkirk area.
Pierluissi was arrested in June of 2015 along with Burgos, Javier Pagan, Jr., David Jesus Pagan, Samuel Hernandez III, and Alvin Torres. Search warrants were executed at the time of the arrests at six properties which resulted in the recovery of more than seven kilograms of cocaine (the largest seizure ever in the City of Dunkirk) and approximately $175,000 in cash as well as an AR-15 assault rifle with a 30 round magazine. During a search of Burgos’ residence, officers discovered a secret room with a money counting machine.
All defendants have been convicted except for David Jesus Pagan and Angel Pierluissi. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Office, the Dunkirk Police Department, under the direction of Chief David C. Ortolano, the Chautauqua County Sheriff’s Office, under the direction of Sheriff Joseph A. Gerace, the Cattaraugus County Sheriff’s Office, under the direction of Sheriff Timothy S. Whitcomb, and the Chautauqua County District Attorney’s Office, under the direction of Patrick Swanson.
Sentencing will scheduled at a later date.
District Man Sentenced to Prison for Possession of Firearm in Southeast WashingtonRead the Press Release
WASHINGTON – Dustin Evans, 30, of Washington, D.C., was sentenced yesterday to a 62- month prison term for unlawful possession of a firearm, U.S. Attorney Channing D. Phillips announced.
Evans pled guilty on April 19, 2016, in the United States District Court for District of Columbia, to the charge of unlawful possession of a firearm after being convicted of a crime punishable by more than one year of imprisonment. The Honorable John D. Bates sentenced Evans on June 29, 2016, to a total of 62 months in prison, followed by three years of supervised release.
According to the government’s evidence, on October 31, 2015, at approximately 7:00 p.m., members of the Metropolitan Police Department received information that a black male wearing a dark-colored jumpsuit with tennis shoes and dreadlocks, was pointing a firearm at an unknown person in front of 2307 Good Hope Court, Southeast, in the District of Columbia. Several officers observed Evans, who matched the lookout description, in front of 2307 Good Hope Court, Southeast. The officers approached Evans, who fled the area, and when the officers followed Evans, an officer observed Evans throw a firearm to the ground. The recovered firearm was determined to be a Glock 17, 9mm, semi-automatic firearm, and contained 17 rounds of ammunition. Evans was detained, and law enforcement subsequently determined that Evans had been previously convicted of an offense that was punishable by more than one year of imprisonment.
In announcing the sentence, U.S. Attorney Phillips commended the work of the officers, and others who worked on the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, Including Assistant U.S. Attorney Vivien Cockburn, who investigated and prosecuted the case.
District Man Found Guilty of Shooting in Northeast WashingtonRead the Press Release
WASHINGTON – Jason Edwards, 32, of Washington, D.C., was found guilty on Wednesday of five felony charges stemming from an incident last Halloween in Northeast Washington in which he shot a man, U.S. Attorney Channing D. Phillips announced today.
On June 29, 2016, Edwards was found guilty by a jury of the Superior Court of the District of Columbia of one count of assault with intent to kill while armed, one count of assault with significant bodily injury while armed, two counts of possession of a firearm during a crime of violence, and one count of unlawful possession of a firearm. The Honorable Anita Josey-Herring presided over the trial. Sentencing is scheduled for August 30, 2016.
According to the government’s evidence, on October 31, 2015, Edwards arranged to purchase marijuana from the victim, his former coworker. The two men communicated via text message to set up the meeting. Edwards had the victim meet him in the 3100 block of Channing Street, NE. Instead of purchasing marijuana, Edwards—who was wearing a Batman costume—took out a gun and shot the victim in the upper chest. As the victim ran away, Edwards chased him down the street and fired six additional shots, one of which struck the victim in his leg. Fortunately, neither gunshot wound was fatal. The victim was able to identify Edwards by first name within minutes of police arriving on the scene. During its investigation, the government obtained cell site data from Edwards’ phone that placed him in an area consistent with where the shooting took place.
In announcing the verdict, U.S. Attorney Channing D. Phillips praised the work of those who worked on the case from the Metropolitan Police Department, the Department of Forensic Sciences, and the FBI. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Jennifer Clark; Litigation Technology Specialists Anisha Bhatia and Aneela Bhatia; and Paralegal Specialist Donville Drummond. Finally, he commended the work of Assistant U.S. Attorneys Kondi Kleinman and Laura Crane, who investigated and prosecuted the case.
Defendant Scheduled for Second Gang Trial Pleads Guilty to Racketeering Conspiracy and MurderRead the Press Release
COLUMBUS, Ohio – Lance Green, 36, formerly of Columbus, pleaded guilty in U.S. District Court today to one count of racketeering conspiracy and two counts of murder in aid of racketeering. Green was scheduled to stand trial on July 11 in the second of three trials involving the organized criminal enterprise known as the Short North Posse.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Brad Earman, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Franklin County Prosecutor Ron O’Brien and Columbus Police Chief Kim Jacobs announced the plea entered into today before U.S. District Judge Algenon L. Marbley.
A total of 20 individuals were indicted in the racketeering case with charges that included murders, attempted murders, drug trafficking, weapons offenses, witness tampering, extortion and robbery.
A United States District Court jury convicted five co-defendants of racketeering and murder earlier this month. After a two-month trial, the group of defendants was convicted on all counts, which accounted for 10 of 14 previously unsolved murders.
A third trial is currently scheduled to begin on September 26 for the remaining defendants.
Racketeering conspiracy is a crime punishable by up to life in prison. Murder in aid of racketeering also carries a mandatory sentence of life in prison.
Acting U.S. Attorney Glassman commended the two-year long investigation by federal, state and local law enforcement agencies, including the FBI, DEA, ATF, Columbus Police, Franklin County Sheriff Zach Scott’s Office, Franklin County Prosecutor Ron O’Brien’s Office, Fairfield County Prosecutor Gregg Marx, Licking County Prosecutor Kenneth Oswalt, Muskingum County Prosecutor D. Michael Haddox, Ross County Prosecutor Matthew S. Schmidt, law enforcement leaders from those counties, officials of the Ohio Department of Rehabilitation and Correction, as well as Assistant U.S. Attorneys David DeVillers, Kevin Kelley and Brian Martinez, and Special Assistant U.S. Attorney Jimmy Lowe of Franklin County Prosecutor O’Brien’s Office, who are prosecuting the case.
Cullman County Man Sentenced to 45 Years for Third Child Exploitation ConvictionRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Cullman County man to 45 years in prison for receiving and possessing child pornography after two previous child sexual abuse convictions, announced U.S. Attorney Joyce White Vance and Homeland Security Investigations, New Orleans Field Office, Special Agent in Charge Raymond R. Parmer Jr.
JAMES KEITH STEWART, 36, who is currently serving a 15-year state sentence on a 2013 conviction of sexually molesting a boy under age 12 at a public swimming area in Chilton County, pleaded guilty in federal court in March to receiving and possessing child pornography. U.S. District Judge Madeline H. Haikala sentenced him on those charges and ordered the federal sentence to be served concurrently with Stewart’s state sentence.
Along with Stewart’s 2013 conviction of sexual abuse of a child, he was convicted by court martial in 2003 for indecent acts upon a child.
Between August 2010 and February 2012, Stewart amassed a collection of thousands of images of child pornography, including sadistic and masochistic images of the rape of toddlers, and was trading the child pornography over the internet, according to court records.
The government recommended a 45-year prison sentence for Stewart and argued that lengthy incarceration is the only way to ensure that Stewart does not harm more children.
HSI investigated the case, which Assistant U.S. Attorney Erica Barnes prosecuted.
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Crossville Man Sentenced to 47 Years in Prison for Horrific Assault and Kidnapping During Violent Crime OrdealRead the Press Release
Douglas M. Davis, 46, of Crossville, Tenn., was sentenced today in U.S. District Court to 47 years in prison, for crimes committed in October 2014 during a two-day violent crime spree, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
Davis pleaded guilty in January 2016 to kidnapping; transportation of a stolen vehicle in interstate commerce; being a convicted felon in possession of a firearm and using a firearm during a crime of violence.
During the January plea hearing before Chief U.S. District Judge Kevin H. Sharp, Davis admitted that on October 2, 2014, he was visiting two friends at a house in Crossville, Tenn., when he produced a semi-automatic handgun and forced the female friend to restrain the male friend with duct tape. After securing the man’s hands and feet, Davis forced the woman to help drag the man into the bathroom, where he was left bound and secured. Davis admitted that he then forced the woman to engage in various sex acts and then beat her and raped her.
After raping the woman, Davis admitted that he took $50 from the man’s wallet and assaulted him and left him duct taped in the bathroom. Davis then forced the woman into the man’s car and subsequently drove to a remote location in Hardin County, Kentucky, where he abandoned the stolen car. Davis then forced the victim into a wooded area and raped her repeatedly. Davis raped the victim again in Bullitt County, Kentucky and again at an unknown location.
On October 4, 2014, law enforcement officers located Davis and the female victim hiding behind a trash dumpster at a Pilot gas station in Lebanon Junction, Kentucky. At the time of his arrest, Davis was in possession of a loaded .25 caliber semi-automatic handgun. Davis told law enforcement officers that he had been in love with the victim since he first met her and that he had planned on releasing her and committing suicide.
Davis had previously been convicted of felony burglary in the State of Florida.
In sentencing Davis, Chief Judge Sharp characterized Davis as a predator and noted that the sentence the Court imposed needed to reflect the seriousness of the crimes and also serve as a deterrent.
This case was investigated by the FBI; the Cumberland County Sheriff’s Department; the Kentucky State Police; the Hardin County, Kentucky Sheriff’s Department; and the Bullitt County, Kentucky Sheriff’s Department. Assistant United States Attorney Lynne T. Ingram prosecuted the case.
Colorado Man Sentenced for Aiding and Abetting the Operation of an Unregistered AircraftRead the Press Release
Gilbert Wayne Wiles, Jr., 38, of Denver, Colorado, was sentenced by Federal District Court Judge Alan B. Johnson on June 24, 2016, for aiding and abetting the operation of an unregistered aircraft. Niles received 36 months of supervised probation and was ordered to pay a $100.00 special assessment and a $1000.00 fine. This case was investigated by the U.S. Department of Transportation Office of Inspector General and the U.S. Department of Homeland Security Immigration and Customs Enforcement.
Cleveland man charged with distributing fentanyl, heroin and cocaineRead the Press Release
A Cleveland man was charged with conspiracy to distribute fentanyl, heroin and cocaine, law enforcement officials said.
Roland M. Smith, 42, was charged via criminal information with one count of conspiring to distribute at least 40 grams of fentanyl, 100 grams of heroin and 500 grams of cocaine.
The charges seek to forfeit a Kal-Tech .22 pistol and various sizes of ammunition seized on April 27, 2016.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Pinjuh following an investigation by the Northern Ohio Law Enforcement Task Force.
If convicted, the court will determine the defendants’ sentence after a review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
A charge 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.
Clermont County Man Sentenced to 85 Years for Producing, Receiving, Possessing Child Pornography, Obscene Images of Child Sexual AbuseRead the Press Release
CINCINNATI –David Guy, 61, of New Richmond, Ohio was sentenced to 1,020 months in prison for producing, receiving and possessing child pornography and obscene images of child sexual abuse. He was also sentenced to 20 years of supervised release.
A United States District Court jury convicted Guy in April of 11 counts of obscene visual representations of the sexual abuse of children, one count of attempted production of child pornography, three counts of receipt of child pornography and one count of possession of child pornography.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Clermont County Sheriff Tim Rodenberg and other members of the Regional Electronic Computer Investigations Task Force including Hamilton County Sheriff Jim Neil and Cincinnati Police Chief Eliot Isaac, announced the sentence handed down today by U.S. District Judge Susan J. Dlott.
Guy used Photoshop to create hundreds of visual depictions using 11 different minor victims by placing the children’s faces into images of very graphic adult and child pornography. In addition, Guy attempted to produce child pornography when he took a photo of one minor, posing the child on her hands and knees and exposing her bottom.
A search of computers seized from Guy’s residence revealed the extent of his child pornography collection. Guy’s images included depictions of the sexual bondage of children less than five years of age, bestiality, lascivious exhibition, among many other graphic and violent images.
According to court testimony, Guy claimed that the over 25,000 images of child pornography he received and possessed were inspiration for his art. He claimed, through counsel, that the hundreds of images of graphic child pornography he Photoshopped were merely art.
Guy also claimed that the government was to blame for attempting to censor his work, which was rebutted by Assistant U.S. Attorney Timothy D. Oakley during rebuttal.
The jury convicted Guy with the 16 counts he was charged with after less than an hour of deliberation.
“David Guy sought to escape responsibility for his horrific crimes against children by characterizing as ‘art’ the images of children that he produced,” Acting U.S. Attorney Glassman said. “It is not art. It is the opposite of art. It is a horrible crime -- one that David Guy committed over and over, without remorse. Although the harm from Guy's crimes can never be undone, at least the community will be from safe from him committing any more for the next 85 years.”
Glassman commended the cooperative investigation by agents and officers of the Clermont County Sheriff’s Office, the Regional Electronic Computer Investigations Task Force, which is comprised of officers from the Hamilton County Sheriff’s Office and the Cincinnati Police Department, as well as Assistant U.S. Attorneys Christy L. Muncy and Timothy D. Oakley, who prosecuted the case.
Chesterfield Woman Indicted on Fraud ChargesRead the Press Release
RICHMOND, Va. – Pamela Minor-Chiles, 47, of Chesterfield, was indicted by a federal grand jury on June 21 on 27 counts of bank fraud. The indictment was unsealed today.
According to the indictment, Minor-Chiles, the office manager of the Central Virginia OB/GYN Associates (CVOG), misappropriated approximately $210,000 from the practice from 2007 until 2012. The scheme involved Minor-Chiles writing approximately 133 checks on the CVOG operating account at SunTrust Bank and fraudulently depositing them into her personal accounts at the Bank of America from 2007 to 2012. The indictment also alleges that Minor-Chiles concealed the misappropriations by (1) putting fraudulent entries on the check stubs to make it appear that the misappropriated checks were written to outside vendors for legitimate expenses of the practice, and (2) then submitting the fraudulent check stubs to the outside accountants.
On each count of bank fraud, Minor-Chiles faces a maximum penalty of 30 years in prison if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Minor-Chiles had her initial appearance today before Magistrate Judge Roderick Young, who released her on bond. Minor-Chiles will have her arraignment before the Honorable Hannah Lauck on July 8.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Douglas F. Mease, Special Agent in Charge of the U.S. Secret Service’s Richmond Field Office, made the announcement after the return of the indictment. Assistant U.S. Attorney David T. Maguire is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-CR-083.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
CVS to Pay $3.5 Million to Resolve Allegations that Pharmacists Filled Fake PrescriptionsRead the Press Release
BOSTON – In one of the largest settlements to date involving federal allegations of prescription drug diversion in Massachusetts, CVS Pharmacy, Inc., has agreed to pay $3.5 million to resolve allegations that 50 of its stores violated the Controlled Substances Act by filling forged prescriptions for controlled substances – mostly addictive painkillers – more than 500 times between 2011 and 2014. In addition, CVS has entered into a three-year compliance agreement with the Drug Enforcement Administration (DEA) that requires CVS to maintain and enhance programs it has developed in recent years for detecting and preventing diversion of controlled substances.
“Pharmacies have a legal responsibility to ensure that controlled substances are dispensed only pursuant to valid prescriptions,” said United States Attorney Carmen M. Ortiz. “When pharmacies ignore red flags that a prescription is fraudulent, they miss a critical opportunity to prevent prescription drugs from entering the stream of illegal opiates on the black market. Diverted painkillers are contributing to the devastating opioid epidemic in our Commonwealth. Although CVS is currently undertaking corrective steps to curb the tide of diversion, this settlement pushes CVS to go further and holds the company accountable for its past conduct.”
“DEA registrants like CVS have a corresponding responsibility to dispense controlled substances in accordance with the Controlled Substance Act. When pharmacies fail to adhere to these responsibilities, it allows for the diversion of prescription pain medication, which contributes to the widespread abuse of opiates, is the gateway to heroin addiction, and is devastating our communities,” said DEA Special Agent in Charge Michael J. Ferguson. “Our obligation is to improve public safety and public health, and we are committed to working with our law enforcement and regulatory partners to ensure that these rules and regulations are followed.”
This settlement resolves two investigations of CVS stores initiated by the DEA after it received an increased number of calls reporting forged oxycodone prescriptions. In the first investigation, the DEA identified forged prescriptions filled 403 times at 40 CVS stores in Massachusetts and New Hampshire. In the second investigation, the DEA identified 120 forged prescriptions filled at 10 CVS stores in and around Boston. The DEA estimated the street value of the diverted pills to be over $1 million.
The forged prescriptions traced back to just a few individuals. One of the forgers, P.R., signed a dentist’s name on 56 of 59 oxycodone prescriptions that P.R. was then able to get filled at five CVS locations. CVS pharmacists filled these prescriptions even though CVS banned P.R. in 2011 and its computer system contained notes warning that P.R. had tried to fill forged prescriptions in the past. P.R. managed to circumvent the ban by opening a new patient profile using her own Arizona driver’s license number but with a different last name. The government alleged that CVS should have known that the new profile was really P.R.’s, and that the quantities and frequency of P.R.’s oxycodone prescriptions were excessive, especially coming from a dentist. Moreover, the government alleged, even if CVS had believed the prescriptions to be real, there were red flags that P.R. was “doctor shopping,” including the fact that P.R. presented oxycodone prescriptions from two different providers during a single week at one CVS store.
Another forger, E.M., signed a dentist’s name on 131 prescriptions for hydrocodone – another highly addictive opioid – and then had them filled at eight CVS stores. One of those stores, in South Dennis, Mass., filled 29 forged prescriptions for E.M. in just six months. Those 29 prescriptions totaled 1,290 pills of hydrocodone, or seven pills a day. At a different CVS store, E.M. was able to fill 28 prescriptions that she had forged for herself and three other alleged patients even though the prescriptions were identical except for the patient name and even though E.M. presented some of the prescriptions just days apart. CVS also filled 107 prescriptions that bore the dentist’s Massachusetts address, even though, by then, the dentist had closed her Massachusetts practice and moved to Maine. CVS pharmacists could have discovered that the address on these prescriptions was no longer valid had they called the phone number on the prescriptions or checked the DEA’s website.
Yet another forger, E.D., was able to fill fake prescriptions for hydrocodone and methadone over 200 times at CVS stores. CVS filled the prescriptions, on which E.D. had forged the name of an emergency room physician who according to the prescriptions worked at Brigham & Women’s Hospital in Boston, even though: (a) the physician did not work at Brigham & Women’s Hospital; (b) the prescriptions were issued more often and for larger pill quantities than is normal for prescriptions issued by an ER physician; and (c) 21 of the prescriptions, which were presented and picked up by E.D., a man, purported to be for female patients (and all were filled by the same CVS pharmacy).
Under DEA regulations, pharmacists dispensing the drugs have a responsibility to ensure that he/she is filling only valid prescriptions written for a legitimate medical purpose by a practitioner acting in the usual course of his/her professional practice. Fulfilling this responsibility requires identifying and resolving red flags that, individually or collectively, indicate that a prescription may be forged or otherwise invalid.
This case was brought as part of the federal response to New England’s opioid crisis. Prescription opioids are habit-forming drugs that lead to the use of other addictive drugs such a heroin. Overdoses from both prescription drugs and heroin have climbed substantially in recent years.
U.S. Attorney Ortiz and DEA SAC Ferguson made the announcement today. The case was handled by Assistant U.S. Attorneys Giselle J. Joffre and Deana K. El-Mallawany of Ortiz’s Civil Division.
Buffalo Man Arrested on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Jason Yelder, 33, of Buffalo, NY, was arrested and charged by criminal complaint with possession with intent to distribute five grams or more of methamphetamine. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years and a $5,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that according to the complaint, on March 30, 2016, the defendant was pulled over by Hamburg Police on Old Lakeshore Road after moving from a lane unsafely. A DMV check revealed that Yelder’s driver’s license had been suspended four times on four different dates. As a result, the defendant was arrested and taken into custody.
A subsequent search of Yelder’s vehicle, a Dodge Ram Pickup, uncovered a large amount of cash, the defendant’s passport, a digital scale, methamphetamine packaged for sale, drug packaging, needles, suspected HGH samples, hard drives, prescription pills and a small amount of powdered crack cocaine.
The complaint is the culmination of an investigation by the Hamburg Police Department, under the direction of Chief Gregory Wickett and the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. hunt, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Broadview Heights man sentenced to prison to stealing $3.3 million from school districtRead the Press Release
A Broadview Heights man was sentenced today to 30 months in prison for his role in the theft of more than $3.3 million from the Cuyahoga Heights School District, law enforcement officials said.
Dominick Palazzo, 42, pleaded guilty earlier this year to one count of conspiracy to commit mail fraud and one count of conspiracy to commit money laundering. His brother, Joseph M. Palazzo, was the Information Technology director of the Cuyahoga Heights School District. The Palazzos, along with David Donadeo and Dennis Boyles, conspired together to defraud the school district through dozens of fraudulent billings submitted to the Cuyahoga Heighs School District by sham companies that Dominick Palazzo, Donadeo and Boyles controlled, according to court documents.
The thefts occurred over a period of four years. The U.S. District Judge Benita Y. Pearson sentenced Dominick Palazzo to 30 months in prison, and ordered him to pay $3,333,448 in restitution to the Cuyahoga Heights School District. Judge Pearson also ordered the forfeiture of $43,409.53 that law enforcement previously seized from bank accounts that Dominick Palazzo controlled or that Palazzo otherwise paid over voluntarily to the government toward this debt.
“This defendant, along with his brother and friends, stole millions of dollars from the children and taxpayers in Cuyahoga Falls,” said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio. “Their lengthy prison sentences appropriately reflect the severity of their offenses.”
“This investigation uncovered a multi-million-dollar embezzlement scheme laced with a web of financial lies that left a local school district in financial peril,” said Kathy A. Enstrom, Special Agent in Charge, IRS-Criminal Investigation, Cincinnati Field Office.
“Dominick Palazzo violated the trust that the citizens and students of Cuyahoga Heights had placed in him by funding his personal account with their tax dollars,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “The investigators are to be commended for uncovering this enormous fraud.”
Joseph Palazzo was employed as the Information Technology director of the Cuyahoga Heights School District until February 2011. He was responsible for managing the district’s IT Department, which included purchasing hardware and software and making other IT expenditures to benefit the district and its students, according to court documents.
Joseph Palazzo devised a scheme to divert millions of dollars of district funds to his personal use and the personal use of others. This scheme involved Joseph Palazzo submitting to the district for payment false invoices that purported to be for IT-related goods and services purchased from legitimate companies by the district’s IT Department to benefit the district. He represented that the invoices he submitted were legitimate, and he approved the false invoices himself or forged the signature of another in the approval section, according to the information.
However, these invoices were for services never performed, fictitious software and hardware, and software and hardware never received or already purchased by the district from another source. The companies named on the invoices did not supply such goods to or perform such services for the district and were nothing more than “shells,” according to court documents.
Joseph Palazzo’s actions caused the district to issue checks to these shell vendor corporations, which were established and owned by Dominick Palazzo, Boyles and Donadeo. The shell vendor corporation owners kept approximately half of the stolen money themselves and funneled the remainder of the money back to Joseph Palazzo for his personal use, according to court documents.
These shell companies included Laptops and More, Inc., and Impact Global, LLC, which were established by Dominick Palazzo.
The district sustained a total loss of at least $3,333,448, as a result of the fraudulent scheme according to the information.
Joseph Palazzo was previously found guilty and is currently serving a sentence of more than 11 years in prison. Boyles was sentenced to more than two years in prison and Donadeo’s case is pending.
This case was prosecuted by Assistant United States Attorney Rebecca Lutzko following an investigation by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation.
Bridgeport Man Pleads Guilty to Federal Gun ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that GEORGE SANCHEZ, also known as “Little G,” 22, of Bridgeport, pleaded guilty yesterday in Bridgeport federal court to one count of possession of a firearm with an obliterated serial number.
According to court documents and statements made in court, on November 28, 2015, a Bridgeport Police Officer performing an inventory search of a vehicle that SANCHEZ had been driving found a loaded .40 caliber semi-automatic pistol, a neoprene face mask and approximately 44 bags of heroin. Part of the handgun’s serial number had been scratched off.
SANCHEZ has been detained since his arrest on January 6, 2016. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on September 28, 2016, in Hartford. The offense carries a maximum term of imprisonment of five years.
This matter was investigated by the Bridgeport Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the FBI’s Bridgeport Safe Streets Task Force. The case is being prosecuted by Assistant U.S. Attorney Alina P. Reynolds.
Blair County Man Sentenced to 2 Years Prison for Tax EvasionRead the Press Release
JOHNSTOWN, Pa. - A resident of Hollidaysburg, Pa., has been sentenced in federal court to 24 months in prison, three years’ supervised release and ordered to pay restitution to the Internal Revenue Service in the amount of $1,590,605, on his conviction of income tax evasion, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on James C. Faith.
According to information presented to the court, Faith filed an individual income tax return for the calendar year 2009, whereby he failed to report $1,785,036 in taxable income, resulting in an underpayment of $632,237 in income tax owed to the United States.
Assistant United States Attorney John J. Valkovci, Jr. prosecuted this case on behalf of the government.
Mr. Hickton commended the Internal Revenue Service/Criminal Investigation for the successful prosecution of Faith.
Beckley drug dealer sentenced for distributing pain pillsRead the Press Release
BECKLEY, W.Va. – A Beckley man was sentenced today to a year in federal prison for a drug crime, announced Acting United States Attorney Carol Casto. David Pfost, 31, previously pleaded guilty to distribution of oxycodone.
Pfost admitted that on February 11, 2015, he distributed oxycodone to a confidential informant working with law enforcement. The drug deal took place on Washington Street in Beckley.
The Beckley/Raleigh County Drug and Violent Crime Unit conducted the investigation. United States District Judge Irene C. Berger imposed the sentence.
This prosecution was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Austin Culinary School Agrees to Monitoring and Penalties to Resolve Allegations of Disability Discrimination in Civil Settlement with the United StatesRead the Press Release
The Natural Epicurean Academy of Culinary Arts, a culinary school in Austin, Texas, has agreed to settle charges of disability discrimination brought by the United States Department of Justice, announced United States Attorney Richard L. Durbin, Jr. this afternoon.
The settlement resolves allegations that the school violated the Americans with Disabilities Act of 1990 (ADA). Under the ADA, businesses generally must provide aids such as sign-language interpreters when necessary to communicate with individuals who are deaf or hard of hearing.
The Department of Justice opened its investigation into the Academy based on a complaint from Heather Suhr, who had applied to the Academy’s professional chef training program. After Ms. Suhr informed the Academy that she is deaf and that she expected to need a sign language interpreter, the Academy denied her admission. When Ms. Suhr asked the Academy to reconsider, the Academy required her to visit from out of state and declined to provide a sign-language interpreter during her visit, so that Ms. Suhr had to arrange her own interpreter. Ms. Suhr tried to discuss with the Academy what sort of communication aids might work for her, but as the Department of Justice’s investigation determined, the Academy did not respond adequately to Ms. Suhr’s efforts. After over seven months of trying to work with the Academy, Ms. Suhr finally withdrew her application. Based on its investigation, the Department of Justice determined that the Academy had discriminated against Ms. Suhr in violation of the ADA.
Under the settlement announced today, the Academy agreed to implement a new nondiscrimination policy and to monitoring by the United States Attorney’s Office for the Western District of Texas. The Academy also agreed to pay Ms. Suhr $8,000 and to pay the United States a civil penalty of $1,000. In return, the United States and Ms. Suhr agreed not to file suit against the Academy.
To file a complaint that a business has violated the ADA, go to https://www.ada.gov/filing_complaint.htm or fax a copy of the complaint to (202) 307-1197.
Assistant United States Attorney Zachary Richter handled this matter for the United States Attorney’s Office for the Western District of Texas.
Austell, GA Man Pleads Guilty to Possession of Counterfeit ObligationRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that MARQUE DESHARD THOMAS, age 40, of Austell, Georgia, pled guilty to POSSESSION OF A COUNTERFEIT OBLIGATION OF THE UNITED STATES, in violation of Title 18, United States Code, Sections 472 and 2.
The charge arose from an investigation by the Davis Police Department, the Oklahoma Highway Patrol and the United States Secret Service. The defendant was indicted in April, 2016.
The Indictment alleged that on or about February 28, 2016, in the Eastern District of Oklahoma, the defendant did with intent to defraud, possess counterfeit obligations and securities of the United States, which he knew to be falsely made, forged and counterfeited.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshals Service pending sentencing.
The statutory range of punishment is not more than 20 years imprisonment, up to a $250,000 fine or both.
Assistant United States Attorney Christopher Wilson represented the United States.
Attorney General Lynch and Facebook to Host Community Policing Town Hall in Los AngelesRead the Press Release
*******MEDIA ADVISORY*******
Attorney General Loretta E. Lynch and Facebook will hold a Community Policing Town Hall on Facebook Live at Facebook’s Playa Vista Campus, today, THURSDAY, JUNE 30, 2016, at 11:30 a.m. PT/2:30 p.m. ET. The town hall will be moderated by actor Michael B. Jordan, star of Creed and Fruitvale Station, with participation from actress Yara Shahidi, star of ABC’s Blackish. The town hall discussion will be live-streamed on the official Facebook Live page and the Justice Department’s social media platforms.
“One of my top priorities as Attorney General is strengthening relationships between law enforcement officers and the communities we serve and protect,” said Attorney General Lynch. “We are here on this stop of the Community Policing Tour to show how social media can be used as a vital tool to provide both transparency and opportunity for meaningful interactions into law enforcement thought and policy.”
This conversation style town hall marks the last official stop on the Attorney General’s 12-city Community Policing Tour and will highlight the social media and technology pillar of the President’s Task Force on 21st Century Policing final report. The town hall audience will consist of local high school juniors, seniors, college students and LAPD “cadets” – young people who volunteer to work at the LAPD – and 15 officers from the Hollenbeck Police Activities League and LA Sheriff Department.
Attorney General Loretta E. Lynch will travel to Aspen, Colorado, on FRIDAY, JULY 1, 2016, to participate in a moderated arm chair conversation on 21st Century Policing, Civil Rights and Criminal Justice Reform with Jonathan Capehart of the Washington Post at the 2016 Aspen Ideas Festival.
FACEBOOK TOWN HALL
WHO: Attorney General Loretta E. Lynch
Michael B. Jordan
Yara Shahidi
WHEN: THURSDAY, JUNE 30, 2016
11:30 a.m. PDT
WHERE: Facebook Playa Vista Campus
12025 Waterfront Dr.
Los Angeles, CA 90094
POOLED PRESS: Network Pool KABC-ABC Affiliate
LIVE STREAMED ON: https://www.facebook.com/DOJ.
NOTE: Press inquiries regarding logistics should be directed to [email protected].
Background on the Community Policing Tour:
Including Los Angeles, the Attorney General visited six jurisdictions around the country during this second phase of the tour that have excelled in each of the six pillars discussed in the President’s Task Force on 21st Century Policing final report: (1) Building Trust and Legitimacy; (2) Policy and Oversight; (3) Technology and Social Media; (4) Community Policing and Crime Reduction; (5) Officer Training and Education; and (6) Officer Safety and Wellness. The trip to Los Angeles highlighted Pillar 3 – Technology and Social Media. Attorney General Lynch launched the tour in February in Miami Dade County, Florida, and she visited Portland, Oregon, in March as well as Indianapolis, Indiana, in April. The Attorney General visited Phoenix on Tuesday and is concluding the second phase of the tour with this last stop in Los Angeles.
COMMUNITY POLICING TOUR
- Pillar 1 – Miami/Doral, Florida – Building Trust and Legitimacy
- Pillar 2 – Fayetteville, North Carolina – Policy and Overnight
- Pillar 3 – Los Angeles, California – Technology and Social Media
- Pillar 4 – Portland, Oregon – Community Policing and Crime Reduction
- Pillar 5 – Phoenix, Arizona – Training and Education
- Pillar 6 – Indianapolis, Indiana – Officer Safety and Wellness
More information on the #CommunityPolicing tour is available at the following page: http://www.justice.gov/ag/community-policing-tour.
The Attorney General’s national Community Policing Tour builds on President Obama’s commitment to engage with law enforcement and other members of the community to implement key recommendations from the President’s Task Force on 21st Century Policing final report. The first phase of the tour launched on May 19, 2015, in Cincinnati, Ohio, and also included visits to Birmingham, Alabama; Pittsburgh, Pennsylvania; East Haven, Connecticut; Seattle, Washington; and Richmond, California.
Arizona Man Pleads Guilty to Methamphetamine Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – James Thomas Vance, 47, of Phoenix, Ariz., pled guilty this morning in federal court in Albuquerque, N.M., to a methamphetamine trafficking charge.
Vance was arrested in Sept. 2015, and charged by criminal complaint with possession of methamphetamine with intent to distribute after Homeland Security Investigations (HSI) agents discovered 969.16 grams of methamphetamine in Vance’s vehicle during a routine traffic stop.
Vance was subsequently indicted on Oct. 7, 2015, and charged with possession of methamphetamine with intent to distribute on Sept. 18, 2015, in Bernalillo County, N.M.
During today’s proceedings, Vance pled guilty to the indictment. In entering the guilty plea, Vance admitted that on Sept. 18, 2015, when he was stopped on Interstate 40 for a traffic violation, he consented to have the officers search his vehicle. The officers subsequently located 10.77 grams of methamphetamine in the driver’s door and approximately 958.39 grams of methamphetamine in the vehicle’s trunk. Vance further admitted that he was driving from Phoenix to Bernalillo, N.M., and planned deliver the methamphetamine to other individuals.
At sentencing, Vance faces a statutory mandatory minimum of ten years and a maximum of life in federal prison. Vance remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of HSI and the Bernalillo County Sheriff’s Office and is being prosecuted by Assistant U.S. Attorney Jacob Wishard.
Arizona Man Pleads Guilty to Federal Heroin Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Rodolfo Rene Ley, 25, of Phoenix, Ariz., pled guilty this morning in federal court in Albuquerque, N.M., to trafficking heroin in New Mexico.
Ley was arrested at the Amtrak Train Station in Albuquerque on May 13, 2016, after the DEA found approximately one kilogram of heroin in three clear plastic wrapped bundles under Ley’s clothing during an interdiction investigation.
Ley was subsequently indicted on May 25, 2016, and charged with possession of heroin with intent to distribute on May 13, 2016, in Bernalillo County, N.M. During today’s proceedings, Ley pled guilty to the indictment. In his plea agreement, Ley admitted that he voluntarily consented to have a DEA agent search him at the Amtrak Train Station in Albuquerque on May 13, 2016. During the search, the agent discovered oblong bundles containing heroin in Ley’s jeans.
At sentencing, Ley faces a statutory mandatory minimum of five years and a maximum of 40 years in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA. Assistant U.S. Attorney Eva Fontanez is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative.
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Anchorage Man Sentenced to 46 Months in Prison for Role in Drug Trafficking and Money Laundering ConspiracyRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Billy Ray Lang, Jr. 29, of Anchorage, was sentenced by U.S. District Judge Sharon L. Gleason to serve 46 months in prison for his role in a drug trafficking and money laundering conspiracy, followed by five years of supervised release.
Lang, Jr.'s role in the conspiracy was to purchase heroin in California and ship it to his co-conspirators in Alaska. Co-conspirators would send Lang, Jr. money orders and cash via the U.S. Postal Office, as well as make deposits into his bank account. Lang, Jr. would use this money to pay for additional narcotics in California. The money orders and bank deposits were used to conceal the proceeds of the sale of the narcotics in Alaska.
Lang, Jr.'s co-conspirators Billy Ray Lang, Sr., 62, and Tynisha Jean Merriouns, 34, were previously sentenced for their roles in this conspiracy. In November 2015, Billy Ray Lang, Sr. was sentenced to seven years in prison and Tynisha Merriouns was sentenced to four years in prison. They were also required to forfeit $40,000 in cash and Postal Money orders seized by investigators during a search of their home.
U.S. Attorney Loeffler commends the Anchorage Police Department, the Drug Enforcement Administration, and the Internal Revenue Service Criminal Investigations for the successful investigation and prosecution of this case.
Alien Found in Oswego County Sentenced for Illegally Re-entering United StatesRead the Press Release
SYRACUSE, NEW YORK – Jesus Alberto Medina-Montes, age 24, a citizen of Mexico, was sentenced today to a term of time served after being convicted of illegally re-entering the United States.
The announcement was made by United States Attorney Richard S. Hartunian and U.S. Border Patrol Chief Patrol Agent John C. Pfeifer.
Medina-Montes was arrested on April 8, 2016 after being found in Parish, New York. He pled guilty on June 17, 2016 to the charge of illegal re-entry of a removed alien. As part of his plea, he admitted that after being removed from the United States in 2010, he unlawfully came back into the country. Medina-Montes, who served about 3 months in jail on this conviction, will likely be placed into removal proceedings and returned to Mexico.
This case was investigated by the U.S. Border Patrol and prosecuted by Assistant U.S. Attorney Robert S. Levine.
Alameda County Resident Charged with Wire Fraud, Mail Fraud, and Interstate Transportation of Stolen PropertyRead the Press Release
SAN JOSE –Ferdinand Pasion Arafiles, AKA Dennis Arafiles, appeared in court today and was arraigned on charges he defrauded a Bay Area manufacturer and seller of networking equipment and services, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The appearance follows an indictment handed down by a federal grand jury on June 23, 2016, and unsealed earlier today.
Arafiles, 49, of Alameda County, was an employee of a Bay Area public school district. According to the indictment, beginning in October of 2009, more than four years after Arafiles ceased to be an employee of the school district, he began taking advantage of the relationship between the district and a leading networking equipment and services corporation. Specifically, Arafiles is accused of manipulating the company’s warranty contract and service program for the district in order to receive, and then sell, replacement computer parts to which he was not entitled.
According to the indictment, Arafiles’s used fictitious names or stolen identities to create multiple bogus user accounts purporting to be a legitimate user of the school district account. Arafiles allegedly used these accounts to submit fraudulent warranty and service contract claims to the networking equipment and services corporation. The fraudulent claims allegedly resulted in delivery of replacement parts from the networking equipment and services corporation to addresses designated by Arafiles. Further, after Arafiles received the replacement computer parts to which he was not entitled, he allegedly sold at least some of those replacement parts to customers and, in the process, obtained money for his personal use and gain. The indictment charges Arafiles with five counts each of wire fraud, in violation of 18 U.S.C. § 1343; interstate transportation of stolen property, in violation of 18 U.S.C. § 2314; and mail fraud, in violation of 18 U.S.C. § 1341.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted of violating 18 U.S.C. §§ 1341 or 1343, the defendant faces a maximum sentence, per count, of 20 years’ imprisonment and a fine of $250,000 plus restitution, if appropriate. If convicted of violating 18 U.S.C. § 2314, the defendant faces a maximum sentence, per count, of 10 years’ imprisonment, a fine of $250,000, plus restitution, if appropriate. Additional fines and a term of supervised release also may be imposed, however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Arafiles currently is in custody and he is scheduled to appear in court for a detention hearing on Tuesday, July 5, 2016, before Nathaniel Cousins, U.S. Magistrate Judge.
Assistant U.S. Attorney Timothy Lucey is prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation by the FBI.
Wednesday 29 June 2016
Washington County Man Admits Receiving Child PornographyRead the Press Release
PITTSBURGH - A former resident of Washington County, Pennsylvania, pleaded guilty in federal court to a charge of receipt of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Michael G. Williams, 48, of Eighty Four, Pennsylvania, pleaded guilty yesterday before Senior United States District Judge Gustave Diamond.
In connection with the guilty plea, from on or about June 18, 2015, and continuing thereafter to on or about June 25, 2015, Williams knowingly received visual depictions, namely, videos and images in computer graphics and digital files, the production of which involved the use of a minor engaging in sexually explicit conduct.
United States District Judge Gustave Diamond scheduled sentencing for Oct. 18, 2016 at 11:00 a.m. The law provides for a maximum total sentence of 30 years in prison, a fine of $500,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Office of the Pennsylvania Attorney General and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Williams.
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.
Warren man sentenced to nearly four years in prison for bank fraudRead the Press Release
A man from Warren, Ohio, was sentenced to 45 months in prison for defrauding banks out of approximately $2.5 million through fraudulent short sales of gas stations in the Youngstown area and by other means, law enforcement officials said.
Shaukat Sindhu, 56, previously pleaded guilty to two counts of conspiracy to commit bank fraud, one count of corrupt interference with the administration of the Internal Revenue Service, and one count of marriage fraud.
“This defendant acted like the rules did not apply to him,” Acting U.S. Attorney Carole Rendon said. “He engaged in multiple fraud schemes, using his friends and family members without regard to the consequences. This sentence should send a message that fraud and deceit will be punished in the Northern District of Ohio.”
“Attempting to skirt your income tax obligations by using multiple Social Security numbers, dealing in cash, and concealing income and assets in the names of nominees is a recipe for criminal prosecution,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
"Sindhu engaged in numerous illegal financial transactions in an effort to enrich himself. He will be residing in a prison cell instead of his fraudulently obtained 13 bedroom home. The FBI, along with our partners, will continue to root out fraudsters and hold them accountable for their deceitful actions," said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Sindhu owned several gas stations and other commercial property, but failed to make mortgage payments on these properties. Sindhu and others defrauded First Midwest and Consumers National banks by making false and misleading representations about ownership of the properties between 2008 and 2014, using a false identity, and creating a fictional Middle Easter investor that Sindhu used to create the illusion there was an independent buyer for the properties at a significant discount. Tahir Iqbal of Crown Point, Indiana, acted as a straw buyer for Sindhu in a short sale, enriching Sindhu by reducing or eliminating the principle owned on the properties, according to court documents. Iqbal was sentenced to 12 months and 1 day for his role in the bank fraud conspiracy.
Iqbal also served as a straw buyer for Sindhu for a 16,800-square foot, nine-bedroom, 13-bathroom home in Oak Brook, Illinois. That home was forfeited as part of the plea agreement.
This case was prosecuted by Assistant U.S. Attorneys Chelsea Rice, Adam Hollingsworth and James Morford following an investigation by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigations and U.S. Immigrations and Customs Enforcement.
Warren County, Kentucky, Sales Administrator for Heathco Corporation Charged with Mail Fraud, Identity Theft and Tax FraudRead the Press Release
Received nearly $309,000 in kickbacks from $2,696,400 in fraudulent advertisement sales
BOWLING GREEN, Ky. – A sales administrator for HeathCo LLC, appeared before United States Magistrate Judge H. Brent Brennenstuhl today, charged by federal indictment with mail fraud, identity theft and tax fraud after receiving $308,954.42 in kickbacks from $2,696,400 in fraudulent advertisement sales, announced United States Attorney John E. Kuhn, Jr.
Annette Thomas, 42, of Warren County, Kentucky, was charged in a 15 count indictment with ten counts of mail fraud, three counts of identity theft, and two counts of filing false tax returns with the Internal Revenue Service, while employed at HealthCo., located in Bowling Green.
Between October of 1999, and February of 2012, Thomas served as a Sales Analyst Supervisor with administrative responsibilities for budget and expense matters within the retail sales department. HealthCo markets HeathZenith lighting products that are sold at large retail stores.
According to the indictment, Thomas used forged signatures of her supervisor to authorize payments to Professional Sport Publications (PSP), and an associated entertainment company, Adventure Entertainment Promotions (AEP), for unwanted and unnecessary advertisements in sports publications around the United States. Thomas typically authorized payment to PSP in the amount of $15,000 per advertisement and in return for advertisements, PSP allocated approximately 20% of the value of the advertisement in merchandising credits. Merchandising credits consisted of gift cards, sports tickets, concert tickets, airline tickets, and hotel and resort reservations.
In executing the scheme, Thomas used the United States Mail and other common carriers to mail payments for the unauthorized advertisements and received merchandising credits for HealthCo, that were diverted by Thomas for her own personal benefit. Further, as part of the scheme, Thomas is charged with forging the signature of a supervisor for payment of advertisements for the World Series, the Sugar Bowl, and the Liberty Bowl.
Also, Thomas is charged with failing to report approximately $30,578 in other income on a U.S. Individual Tax Return, for calendar year 2010 and failing to report approximately $39,665 of other income on a U.S. Individual Tax Return for calendar year 2011.
If convicted of the charges, Thomas could be sentenced to no more than 20 years for each count of mail fraud, two years for each count of aggravated identity theft, and three years for each count of filing a false tax return. Thomas could be fined $250,000 for each charge.
This case is being prosecuted by Assistant United States Attorney Joshua Judd and is being investigated by the United States Postal Inspection Service and Internal Revenue Service (IRS) Criminal Investigation division.
The charge of a person by Grand Jury Indictment is an accusation only and that person is presumed innocent until and unless proven guilty.
Vinton Man Sentenced on Sex Trafficking ChargesRead the Press Release
ROANOKE, VIRGINIA – A 26-year-old, Vinton, Virginia resident, who was convicted of federal sex trafficking charges following a jury trial in October 2015, was sentenced yesterday in the United States District Court for the Western District of Virginia in Roanoke, United States Attorney John P. Fishwick Jr. announced today.
Terrell Banker, 26, of Vinton, Va., was convicted by a jury of one count of conspiring to engage in the sex trafficking of a minor, one count of engaging in the sex trafficking of a minor and one count of persuading or enticing a minor to engage in prostitution. Yesterday in District Court, Banker was sentenced to 156 months in federal prison. A co-defendant, Laura Cook, previously pled guilty to conspiracy to engage in the sex trafficking of a minor and was sentenced to 58 months in prison earlier this year.
“Sex trafficking is an international crisis that not only impacts men and women overseas but, tragically, is rooted in cities and towns all across our country,” United States Attorney John P. Fishwick Jr. said today. “This case was particularly tragic because it involved the trafficking of a minor, a girl of just seventeen at the time of the incident. It is encouraging, however, that law enforcement helped identify the trafficking behavior and put an early end to what could have been a very long and painful run of abuse by these two defendants.”
“Human trafficking is one of the most heinous crimes we investigate. Victims are often vulnerable, and their traffickers prey on those vulnerabilities, trapping them in a cycle they can’t break free from. No person – especially a minor – should have to endure this treatment,” said Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. “Today’s sentence marks a win for law enforcement. One more trafficker is off the streets and will have to face the consequences of his actions behind bars.”
According to evidence presented at Banker’s trial and Cook’s guilty plea hearing, Victim One was a 17-year-old resident of Salem, Virginia who began socializing with Cook via the Internet in February 2015. At the insistence of Cook, Victim One stayed at Cook’s home, partied with Cook and took illegal drugs with Cook. At some point in February 2015, Cook introduced Victim One to Banker, who provided various illegal drugs to Cook, and others, including marijuana, methamphetamine and cocaine. Cook asked Banker to provide Victim One with methamphetamine. On at least one occasion, Banker took payment for the drugs he provided in the form of sex with Victim One.
In March 2015, Victim One ran away from home and was harbored by Cook. After discussing Victim One’s situation with Banker, Cook and Banker decided that Victim One would be prostituted as a way to earn money. Near the end of March 2015, Banker arranged a prostitution encounter for Victim One, transported her to take part in the commercial sex act and took payment from the “John.” Victim One was hungry, had no money and no other means to support herself and therefore, reluctantly, engaged in the commercial sex act at the direction of Banker and Cook.
The investigation of the case was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Federal Bureau of Investigation, the Roanoke City Police Department and the Pittsylvania County Sheriff’s Office. Assistant United States Attorneys Anthony P. Giorno and Laura D. Rottenborn prosecuted the case for the United States.
VIP Ambulance Owner Pleads Guilty to False StatementsRead the Press Release
PHILADELPHIA – Bassem Kuran, 23, of Philadelphia, PA, pleaded guilty on June 28, 2016 to criminal Information charging him with false statements in a health care matter, announced United States Attorney Zane David Memeger. The defendant faces a maximum possible sentence of 5 years in prison, three years of supervised release, a $250,000 fine, and a $100 special assessment. U.S. District Court Judge Gerald J. Pappert scheduled a sentencing hearing for September 30, 2016.
Kuran was the owner and President of VIP Ambulance, a company that provided ambulance services to Medicare beneficiaries seeking dialysis services. Kuran admitted to completing documentation for ambulance runs that did not occur, including documentation for patients who were no longer receiving dialysis or who actually took public transportation to the dialysis clinic. Kuran submitted bills to Medicare for these purported transports, which Medicare paid, and he personally provided copies of the false documentation supporting those bills to Medicare’s auditors in an attempt to justify the fraudulent bills that VIP had submitted.
As a result of the defendant’s false statements, the Medicare program paid more than $66,000 in inappropriate bills.
The case was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of the Inspector General, and the U.S. Department of Labor Office of the Inspector General. It is being prosecuted by Assistant United States Attorneys Mary E. Crawley and Paul W. Kaufman.
Upstate New York Couple Indicted in Tax Fraud SchemeRead the Press Release
A federal grand jury yesterday returned a four count indictment in the Western District of New York charging two business owners with conspiracy to defraud the United States and filing a false tax return, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney William J. Hochul Jr for the Western District of New York.
According to the indictment, Lizhong “Tony” Shen and Xiaojie “Lucy” Shun, jointly operated BTL International Company Ltd., a tour and travel service company located in Niagara Falls, New York, between April 2004 and November 2009. The defendants were married at the time but, in 2009, they separated and Shen stopped working for BTL International. In January 2011, Shun ceased operation of BTL International and began operating another tour and travel service company, Niagara Falls Universal Inc.
For the tax years 2008 and 2009, Shen and Shun failed to properly report income generated by BTL International to the IRS on both corporate and personal tax returns. Both defendants also signed their 2009 personal tax return knowing the return included incorrect information. Shen and Shun reported income in the amount of $22,880 but it is alleged they knowingly received a significantly higher income.
In addition, Shun is charged with corruptly endeavoring to obstruct the due administration of the internal revenue laws. The indictment charges that, from April 2010 through April 2013, Shun provided inaccurate information to the accounting firm preparing the 2011 tax return for Niagara Falls Universal, the 2010 and 2011 personal tax returns for the couple and the 2012 tax return for herself.
The defendants face a maximum prison term of five years on the charge of conspiracy to defraud the United States and three years for each charge of filing a false return. Shun faces an additional three year term in prison for the charge of corruptly endeavoring to obstruct the due administration of the internal revenue laws. Both defendants also face a term of supervised release and monetary penalties.
An indictment merely alleges that crimes have been committed. Defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Hochul commended special agents of the IRS- Criminal Investigation Division, under the direction of Special Agent in Charge Shantelle P. Kitchen, who are investigating the case, and Assistant U.S. Attorney Trini E. Ross and Thomas F. Koelbl of the Tax Division, who are prosecuting the case.
United States Attorney, Boys and Girls Club, HIDTA, Ripken Foundation Announce Badges for Baseball in Roanoke ValleyRead the Press Release
ROANOKE, VIRGINIA – In cooperation with officials from the Washington/Baltimore HIDTA, the Cal Ripken Senior Foundation [CRSF] and the Boys and Girls Club of Southwest Virginia, United States Attorney John P. Fishwick Jr. announced today the launching of Badges for Baseball in the Roanoke Valley.
“This program is about more than just baseball, it’s about building trust between our community and law enforcement,” United States Attorney Fishwick said today. “If we can strengthen the relationship the community has with law enforcement, through mentorship, through relationship building and use baseball as a conduit to strengthen that trust, it’s a huge first step in the right direction for Roanoke.”
Badges for Baseball is a juvenile crime prevention program created by the Cal Ripken Sr. Foundation in partnership with the United States Department of Justice. The program’s goals are to pair police and children together to play and learn.
“We want to build relationships with the community but also teach the fundamental lessons of the program, including respect, teamwork and communication,” United States Attorney Fishwick added. “We are very excited to partner with the Cal Ripken Sr. Foundation, the Washington/Baltimore HIDTA and the Boys and Girls Club to bring such a wonderful opportunity to so many deserving children in Roanoke.”
Badges for Baseball is a nationwide initiative run by the Cal Ripken Sr. Foundation in 177 communities in 18 states, including communities in Virginia such as Fredericksburg, Newport News and Richmond. The program has impacted more than 25,500 youth with the help of 1,365 law enforcement officers and professional youth mentors.
U.S. Attorney’s Office Reaches Agreement with Mclean Hospital to Resolve Disability Access IssuesRead the Press Release
BOSTON – The U.S. Attorney’s Office has reached an agreement with The McLean Hospital in resolve accessibility issues in McLean’s Gunderson Residence program. The agreement comes after the U.S Attorney’s Office received a complaint alleging that McLean Hospital turned away prospective patients in wheelchairs because it could not accommodate them at the Gunderson Residence.
“I want to commend McLean Hospital for its eagerness to make the Gunderson Residence accessible to those with mobility-related disabilities,” said United States Attorney Carmen M. Ortiz. “The Hospital’s cooperation demonstrates how much society can achieve when it prioritizes giving disabled individuals full access to all services, including medical care.”
Under the terms of the settlement, McLean will bring the Gunderson Residence’s common areas into compliance with the 2010 ADA Standards for Accessible Design. Additionally, McLean agrees to provide alternative equivalent housing arrangements to patients who qualify for the Gunderson Residence but who are unable to use stairs because of a mobility-related disability. McLean will also train its staff in these new policies.
As soon as it became aware of the complaint, McLean Hospital worked with the U.S. Attorney’s Office to resolve its disability access issue.
The ADA requires places of public accommodation, including hospitals, to provide individuals with disabilities equal access to facilities. More information on the ADA is available at www.ADA.gov.
This case was handled by Special Assistant U.S. Attorney Gregory Dorchak of Ortiz’s Civil Rights Unit.
Two Ordered to Federal Prison for Bank Fraud Scheme at Zapata National BankRead the Press Release
LAREDO, Texas - Petra Del Bosque and Anita Arredondo, both 55 and from Zapata, have been sentenced following their convictions related to a long-running bank fraud scheme targeting Zapata National Bank (ZNB), announced United States Attorney Kenneth Magidson. Arredondo and Del Bosque pleaded guilty in February and January 2015, respectively.
Today, U.S. District Judge Marina Garcia Marmolejo handed both women a 36-month prison sentence, each to be followed by five years of supervised release. The court also ordered they owe restitution in the amount of $615,681.15.
Judge Marmolejo found that neither defendant had been truthful with the court in accounting for the whereabouts of the remainder of the stolen money. Arredondo and Del Bosque had returned some money at the time of their arrests and later submitted expenditure reports to the court purporting to show how they had spent the remaining funds. However, Judge Marmolejo did not find their reports credible and there is nearly $200,000 in unaccounted for stolen funds.
Del Bosque is a former employee of Zapata National Bank (ZNB), while Arredondo worked for a Zapata-based construction company as a clerk in the accounts payable department and had responsibility for issuing company checks.
For two years, Arredondo issued numerous false company checks made payable to contractors who had not performed the work that was the alleged basis for the checks.
Arredondo admitted to endorsing the false checks by forging the signatures of the contractors and then delivering the checks to Del Bosque at ZNB. Del Bosque led ZNB bank tellers to believe she was cashing the checks on behalf of the contractors who were unable to come to the bank themselves and that she would deliver the funds from the cashed checks. However, she actually pocketed the money and split the proceeds of the fraud with Arredondo.
Both have admitted that the loss as a result of the scheme totals more than $800,000.
Both were previously ordered into custody where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI investigated. Assistant U.S. Attorney (AUSA) Robert S. Johnson and former AUSA Sanjeev Bhasker prosecuted the case.
Two Georgia Real Estate Investors Plead Guilty to Bid Rigging and Fraud at Public Home Foreclosure AuctionsRead the Press Release
Two Georgia real estate investors pleaded guilty today for their roles in bid-rigging and fraud conspiracies committed at public real estate foreclosure auctions in Georgia, the Department of Justice announced today.
Michael Stock and Jon Stovall Jr. each admitted that they agreed with other real estate investors to refrain from bidding against one another at public real estate foreclosure auctions in exchange for payoffs. Stock admitted to participating in the conspiracy in Fulton and DeKalb counties from as early as August 2009 until at least November 2011, and Stovall admitted to participating in Fulton County from as early as October 2008 until at least January 2012. Additionally, Stock and Stovall admitted to conspiring to use the mail to carry out a scheme to defraud homeowners and mortgage holders.
According to court documents filed today in the U.S. District Court for the Northern District of Georgia, the conspirators agreed not to compete against each other at public real estate foreclosure auctions, artificially suppressed the prices of properties sold at these auctions, and made and received payoffs from each other. As a result, the conspirators seized money that otherwise would have gone to pay off the mortgage and other secured debt holders, and, in some cases, to the previous owner of the foreclosed home.
“These defendants conspired to take money that rightfully belonged to homeowners and lenders,” said Principal Deputy Assistant Attorney General Renata Hesse, head of the Justice Department’s Antitrust Division. “Those homeowners and lenders have a right to expect that the properties will be sold in free and competitive auctions. The Antitrust Division will continue to partner with our colleagues at the FBI to aggressively pursue conduct designed to disrupt that process.”
“Foreclosure auction fraud in Georgia remains a focus for the FBI investigators and federal prosecutors within the Antitrust Division of the U.S. Department of Justice. By the very nature of this criminal act, the bank, and more importantly, the home owner in financial distress, are the victims that these federal laws were created to protect. The FBI will continue to provide investigative assets toward these matters in order to keep the level playing field that the law intended regarding these auctions.”
Including the individuals pleading today, 20 defendants have been charged in connection with the department’s ongoing investigation into bid rigging and fraudulent schemes involving real estate foreclosure auctions in the Atlanta area. Eighteen of those have either pleaded guilty or agreed to plead guilty.
These charges have been filed as a result of the ongoing investigation being conducted by the Antitrust Division’s Washington Criminal II Section, the FBI’s Atlanta Division and the U.S. Attorney’s Office of the Northern District of Georgia, in connection with the president’s Financial Fraud Enforcement Task Force. The president established the task force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information about the task force, please visit www.StopFraud.gov. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Washington Criminal II Section of the Antitrust Division at 202-598-4000, call the Antitrust Division’s Citizen Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.
Tax Fraudster Sentenced to PrisonRead the Press Release
PHILADELPHIA – Today, defendant Ronald Allen, 61, of Lansdale, was sentenced to 18 months imprisonment, which he was ordered by U.S. District Court Judge Paul S. Diamond to start serving immediately, and further ordered to pay a $120,000 fine.
The defendant pleaded guilty to an Information charging one count of subscribing a false income tax return. The evidence showed that for the years 2008 through 2012, the gross receipts that the defendant reported in his corporate income tax returns were understated by the following amounts: $150,000, $150,000, $256,248, $351,416, and $307,666. During those same years, the defendant understated the net profits that he reported in his individual returns by precisely the same amounts. Between the years 2008 and 2012, the defendant saved approximately $248,328 in unpaid taxes and collected approximately $36,863 in undeserved tax refunds.
The case was investigated by the IRS-Criminal Investigations, and is being prosecuted by Assistant United States Attorney Kevin Brenner.
St. James Resident Pleads Guilty to Felony Violation for Selling Migratory BirdsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ROYLEY A. FOLSE, JR., age 69, a resident of St. James Parish, pled guilty yesterday to a felony violation for selling migratory game birds.
According to court documents, from June 2010 to December 2011, FOSLE illegally bartered and sold for cash four yellow-crowned night herons and sixty-two white ibis, which are migratory birds protected under the Migratory Bird Treaty Act (MBTA).
FOLSE faces a maximum term of imprisonment of two years, a maximum fine of $2,000, and a maximum term of supervised release of one year. U.S. District Judge Stanwood Duval set sentencing for October 5, 2016.
U.S. Attorney Polite praised the work of the Louisiana Department of Wildlife and Fisheries and the United States Fish and Wildlife Service in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Siouxland Tri-State Gathering Brings Together Three U.S. Attorneys and Area Law EnforcementRead the Press Release
SIOUX CITY, IA – Today the United States Attorneys for the Northern District of Iowa and the Districts of Nebraska and South Dakota met in Sioux City with 60 federal, state and local law enforcement partners with the goal of strengthening relationships among the offices and to develop a greater awareness of the dynamics and challenges facing the tri-state region now and into the future. This is a first of a kind executive meeting joining the three offices with fellow law enforcement partners.
The meeting was held at the 185th Air Refueling Wing located at the Sioux Gateway Airport. The Wing Commander, Colonel Larry Christensen, welcomed the attendees and provided them with a detailed briefing of the unit’s worldwide mission.
A recent successful prosecution involving multiple jurisdictions presented a good example of the importance of having pre-existing, effective collaborative relationships among federal, state and local law enforcement partners. Assistant U.S. Attorney Forde Fairchild led a panel discussion touching on the jurisdictional issues during the prosecution of Jamal Dean and his brother. The brothers conspired to rob two local drug dealers both living in Iowa. They had traveled from Nebraska to Sioux City and back to rob the drug dealers at gun point.
Evidence at Jamal Dean’s sentencing hearing revealed that while an Iowa arrest warrant was pending, he was a passenger in a car that was stopped by a Sioux City police officer. Dean exited the vehicle and began firing a number of rounds at the officer, one of which struck him in the head. After this shooting, Dean fled but was captured in Texas traveling south just 70 miles from the Mexican border. Evidence at sentencing also revealed Dean had also assaulted a woman and shot two other men, before shooting the officer. Dean was sentenced to life in prison.
Joining in the panel discussion were representatives from the Sioux City Police Department, Woodbury County Attorney and Sheriff’s Office and the United States Marshal Service. The panel emphasized the need to have pre-existing, effective working relationships across federal, state and local law enforcement before a serious incident occurs, and stressed the need for information sharing among all partners, at all levels.
U.S. Attorney for the Northern District of Iowa Kevin W. Techau reinforced his mantra as it related to the Dean prosecution noting, “We work best—federal, state and local law enforcement—when we work together.”
United States Attorney for the District of South Dakota Randolph J. Seiler stated following the meeting, “Successful prosecutions are the result of working shoulder to shoulder with our law enforcement partners. Cooperation and collaboration between federal, state, local, and tribal law enforcement are critical elements in our efforts to deliver justice.”
United States Attorney for the District of Nebraska Deborah R. Gilg agreed stressing the importance of interagency cooperation.
The daylong meeting included a round table discussion on drug trafficking, guns and violent crimes, cybercrime/national security, and human trafficking. Representatives from the Drug Enforcement Administration, Federal Bureau of Investigation, and Homeland Security Investigations were joined during the roundtable by state and local task force members. Criminal trending was discussed and jurisdictional issues were clarified. The day ended with a presentation on global narcoterrorism and the threat to the United States by the Executive Director of the High Intensity Drug Trafficking Area (HIDTA) located in Kansas City.
At the end of the day, the three United States Attorneys thanked the participants for joining the meeting noting that they believed the goal of strengthening inter-agency relationships and developing a greater awareness of the challenges facing the tri-state region were achieved. Future meeting of the partners will be planned.
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Serial Armed Robber Sentenced to 26 Years in Federal PrisonRead the Press Release
DALLAS — A Dallas man, Jerry Ware, who admitted that he and his accomplice, Kevin Howard, committed the armed robberies of five 7-Eleven/RaceTrac stores in Dallas in October 2014, was sentenced today by U.S. District Judge Ed Kinkeade to serve 312 months (26 years) in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Ware, 27, pleaded guilty in July 2015 to two counts of using, carrying, brandishing and discharging a firearm during or in relation to a crime of violence. Co-defendant Howard, 23, also of Dallas, pleaded guilty in April 2016 to one count of the same offense. In Howard’s plea agreement, the parties agree that the appropriate term of imprisonment in his case is 300 months, if the Court accepts the plea agreement. His sentencing is set for October 5, 2016.
According to documents filed in the case, the two committed five armed robberies in Dallas on October 24, 2014, and into the early morning hours of October 25, 2014, at the following locations:
October 24, 2014, 11:51 p.m. 7-Eleven store 2223 S. Beckley
October 25, 2014, 12:10 a.m. RaceTrac store 8124 Forest Lane
October 25, 2014, 12:35 a.m. 7-Eleven store 9320 Skillman
October 25, 2014, 12:50 a.m. 7-Eleven store 10340 Forest Lane
October 25, 2014, 1:20 a.m. 7-Eleven store 14801 Coit Road
All of these five robberies were committed in essentially the same manner, including Ware’s use and brandishing of the silver loaded firearm to threaten and force the store clerks to comply with his demands, while Howard stayed in the car as the getaway driver.
Howard also admitted that after this robbery spree, on October 28, 2014, he, on his own, committed the armed robbery of a 7-Eleven store at 10340 Forest Lane – the same store he and Ware robbed on October 25, 2014. Howard entered the store, brandished a loaded firearm, and demanded the cash-register money from the clerk. Minutes after the robbery, officers with the Dallas Police Department identified and arrested him. Inside the car, pursuant to a search warrant, law enforcement found the clothing Howard used in the robbery and the firearm, a loaded, chrome-colored Jimenez Arms, Model JA Nine, 9mm pistol.
The case was investigated by the Federal Bureau of Investigation and the Dallas Police Department. Deputy Criminal Chief Assistant U.S. Attorney Lisa J. Dunn is prosecuting the case.
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Second City Official Charged in Music Festival ExtortionRead the Press Release
BOSTON - The City of Boston’s Chief of Staff of Intergovernmental Affairs, Timothy Sullivan, was arrested this morning after a federal grand jury indicted him in connection with the extortion of a music festival production company operating on City Hall Plaza.
Sullivan, 36, of Dorchester, was indicted in a two-count federal indictment charging him with conspiracy to extort a company and extortion of that company. In May 2016, Kenneth Brissette, 52, of Boston was indicted on extortion of the same company.
Brissette was indicted for extorting a company which had already contracted with a non-union company to provide workers for a September 2014 music festival. It is alleged that between July and September 2014, while the company was awaiting the issuance of certain permits and approvals required for its music festival, Brissette and Sullivan repeatedly advised the company that it would need to hire members of Local 11 to work at the music festival. Local 11 had attempted to obtain work from the company since March 2013. The company told Brissette and Sullivan that it had already entered into a contract with a non-union company and hired all of its labor. Nevertheless, Brissette and Sullivan allegedly insisted that half of the company’s labor force consist of union members, although they ultimately agreed that eight members of Local 11 would suffice. As a result of these City officials’ demands three days before the music festival the company entered into a contract with Local 11 for eight additional laborers and one foreman. Shortly thereafter, the City of Boston issued the necessary permits.
Today’s indictment is a superseding indictment, which added two counts against Sullivan and one more count against Brissette.
The charge of extortion provides a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. The charge of conspiracy to extort 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; Jonathan Mellone, Special Agent in Charge of the New York Region of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigation; and Nikitas Splagounias, Special Agent in Charge of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigation, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Laura J. Kaplan and Kristina Barclay of Ortiz’s Criminal Division.
The details contained in the Indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
San Juan County Residents Facing Federal Health Care Fraud ChargesRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez and Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso announced the filing of health care fraud charges against two San Juan County residents.
Cory Werito, 32, of Farmington, N.M., and Rosita Toledo, 46, of Kirtland, N.M., are charged in a ten-count indictment that was filed on June 15, 2016. Werito and Toledo were arrested on June 28, 2016, by Deputy U.S. Marshals and made their initial appearances on the indictment in federal court in Farmington yesterday afternoon. Both remain in custody pending arraignment and detention hearings, which are scheduled for June 30, 2016, in federal court in Albuquerque, N.M.
The indictment includes nine health care fraud charges against Werito and Toledo and one aggravated currency structuring charge against Werito only. The health care fraud charges stem from the defendants’ role in creating and operating a medical transportation company, CW Transport, a New Mexico company located in Farmington that provided non-emergency medical transportation to Arizona Medicaid recipients. The indictment alleges that over the course of two years between 2011 and 2013, CW Transport collected more than $1.9 million in Medicaid reimbursements from an Arizona-based Medicaid agency by submitting more than 18,000 claims for reimbursement, the vast majority of which were wholly or substantially false and fraudulent.
Count 10 of the indictment, the aggravated currency structuring charge, alleges that Werito conducted financial transactions involving the proceeds of the health care fraud in a manner that avoided the filing of Currency Transaction Reports (CTRs). CTRs are reports which must be filed by financial institutions on transactions involving more than $10,000 during any business day and are used by law enforcement authorities to undercover a broad range of illegal activities including money laundering. According to the indictment, from Aug. 2011 to July 2013, Werito conducted at least 200 cash withdrawals, each for several thousands of dollars but less than $10,000 and totaling at least $800,000, to avoid the filing of CTRs.
The indictment includes forfeiture provisions seeking an order requiring Werito and Toledo to forfeit to the United States at least $1,959,405, the proceeds allegedly derived from the health care fraud alleged in Counts 1 through 9 of the indictment.
If convicted, Werito and Toledo face up to ten years of imprisonment on each of the ten counts of the indictment. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The Albuquerque office of HSI investigated the case with assistance from the FBI, U.S. Marshals Service, San Juan County Sheriff’s Office, the Arizona Health Care Cost Containment System and New Mexico Office of the Attorney General. Assistant U.S. Attorney Jeremy Peña is prosecuting the case.
Werito Toledo Indictment
Roswell Man Sentenced to Prison for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – James Hill, 34, of Roswell, N.M., was sentenced today in federal court in Las Cruces, N.M., to 46 months in prison followed by three years of supervised release for his methamphetamine trafficking conviction. Hill also was ordered to forfeit $5,100.00 to the United States.
Hill was arrested in Sept. 2015, on a criminal complaint charging him with possession of methamphetamine with intent to distribute from Sept. 3 through 10, 2015, in Chaves County, N.M. According to the complaint, on Sept. 3, 2015 and Sept, 10, 2015, Hill sold a total of 191 grams of methamphetamine to undercover law enforcement agents during two separate transactions.
Hill was subsequently indicted on Dec. 17, 2015, and charged with distribution of methamphetamine on Sept. 3, 2015 and Sept. 10, 2015. The indictment included forfeiture provisions requiring Hill to forfeit the proceeds of his criminal conduct to the United States.
On Feb. 19, 2016, Hill pled guilty to the indictment and admitted that he sold methamphetamine to an undercover law enforcement agent in the following quantities: approximately 83.9 grams on Sept. 3, 2015, and approximately 103.9 grams on Sept. 10, 2015.
This case was investigated by the Las Cruces office of the DEA and the New Mexico State Police. Assistant U.S. Attorney Randy M. Castellano prosecuted the case.
Rochester Man Sentenced for Bank RobberyRead 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 Maximilion Broadnax, 31, of Rochester, NY, who was convicted of robbing the Chase Bank at 900 Dewey Avenue in Rochester, was sentenced to eight years in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Charles E. Moynihan, who handled the prosecution of the case, stated that on May 22, 2015, Broadnax’s co-defendant, Tiffany Hogan, entered the Chase Bank just after it opened and passed the bank teller a note drafted by Broadnax. The note demanded money and stated that nobody would be hurt if the teller complied. After receiving a specific amount of United States currency, Hogan left the bank and got into a white minivan in which Broadnax was waiting and the two drove away from the location.
Hogan and Broadnax were arrested later that same day at 17 Second Street in Rochester by members of the Rochester Police Department who were looking for Broadnax in connection with his involvement in stolen vehicles. While taking Broadnax into custody, officers saw that Broadnax’s pants fell down and a large amount of United States currency fell out.
Tiffany Hogan was also convicted of bank robbery and sentenced to 96 months in prison.
Today’s sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent in Charge, as well as the Town of Greece Police Department, under the direction of Chief Patrick Phelan, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Robinson Resident Sentenced on Methamphetamine Related ChargesRead the Press Release
A Robinson, Illinois, man was recently sentenced to federal prison on methamphetamine related charges, James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today.
On June 27, 2016, Michael L. Goff, 36, of Robinson, Illinois, was sentenced to 168 months in federal prison, to be followed by five years of supervised release after imprisonment. Goff had previously pleaded guilty to three counts in a federal indictment.
Count 1 charged that from May 2015 to September 1, 2015, in Crawford and Richland Counties, the state of Indiana, and elsewhere, Goff conspired to knowingly and intentionally distribute methamphetamine. The total amount involved in the conspiracy was fifty (50) grams or more of methamphetamine (Ice). Count 2 charged that from August 30, 2015 to September 1, 2015, in Crawford County, Goff knowingly and intentionally possessed with the intent to distribute five (5) grams or more of methamphetamine (Ice). Count 3 charges that on August 31, 2015, in Richland County, Goff knowingly and intentionally possessed with the intent to distribute methamphetamine.
The investigation in this case was conducted by the Robinson, Illinois, Police Department, the Crawford County Sheriff’s Office, and the Richland County Sheriff’s Office. The Crawford County State’s Attorney’s Office also assisted in the investigation of this case.
The case is being handled by Assistant United States Attorney George Norwood.
Resident of Montana and Nevada Charged in Stolen Identity Tax Fraud SchemeRead the Press Release
A federal grand jury in the District of Montana returned an indictment on May 18, which was unsealed yesterday, charging a resident of Montana and Nevada with one count of corrupt interference with the internal revenue laws, 10 counts of theft of government money and six counts of aggravated identity theft, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Michael W. Cotter of the District of Montana.
According to the indictment, from approximately April 2010 through at least September 2014, Steven D. Pjevach, filed false and fraudulent income tax returns using names and social security numbers that he obtained by posting false help-wanted advertisements on Craigslist. As part of his scheme, Pjevach opened and caused to be opened bank accounts in other individuals’ names to receive the fraudulently obtained tax refunds. Pjevach provided false information to these individuals about the reason why he was using their bank accounts and advised one of these individuals to disregard bank correspondence that advised this individual that his bank account was being used to obtain tax refunds.
If convicted, Pjevach faces a statutory maximum sentence of three years in prison on the charge of corrupt interference with the internal revenue laws, 10 years in prison for each count of theft of government money and a mandatory sentence of two years in prison for each count of aggravated identity theft, which will be in addition to any other term of imprisonment he receives. He also faces supervised release, a fine and restitution.
An indictment merely alleges that crimes have been committed. Defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Cotter commended special agents of Internal Revenue Service-Criminal Investigation, who investigated the case and Trial Attorney John T. Mulcahy of the Tax Division and Assistant U.S. Attorney Chad C. Spraker of the District of Montana, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Raytown Man Indicted for Stealing $86,000 from Two ChurchesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Raytown, Mo., man who worked or volunteered at two area churches was indicted by a federal grand jury today for embezzling more than $86,000 from those parishes.
David Townley, 59, of Raytown, was charged in a 14-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, June 28, 2016. That indictment was unsealed and made public today upon Townley’s arrest and initial court appearance.
Nativity of Mary
The federal indictment alleges that Townley engaged in a scheme to defraud Nativity of Mary church and school in Independence, Mo., from 2007 through 2013.
Townley was employed by the Nativity of Mary church and school as the business manager from December 2006 through June 2013. Townley handled the payroll and had access to both cash and check collections/donations, and school tuition payments. From 2011 through 2013, Townley allegedly skimmed money from cash tuition payments made by parents. Townley allegedly wrote unauthorized checks, including payroll checks, to himself from the account at Nativity of Mary.
Townley is charged with three counts of wire fraud related to this embezzlement scheme.
Sacred Heart of Guadalupe
The federal indictment alleges that Townley stole $47,705 from Sacred Heart of Guadalupe church in Kansas City, Mo., in a fraud scheme that lasted from 2006 through 2013.
Townley was a volunteer at Sacred Heart of Guadalupe from 2002 through 2013. Townley was in charge of paying the church’s bills, making quick book entries, reporting to the financial committee and filing the church’s tax returns. From 2006 through 2013, Townley allegedly negotiated unauthorized checks payable to himself and checks payable to other entities. These checks, totaling approximately $47,705, were deposited into Townley’s personal bank account.
Townley is charged with three counts of mail fraud related to this embezzlement scheme.
Tax Evasion
The indictment charges Townley with eight counts of tax evasion. According to the indictment, Townley evaded paying federal income taxes from 2006 through 2013.
During those years, according to the indictment, Townley had taxable income that ranged from $54,633 to $115,721. Townley allegedly attempted to conceal his true sources of income at Nativity of Mary and Sacred Heart of Guadalupe.
The indictment also contains a forfeiture allegation, which would require Townley to forfeit to the government any property derived from the proceeds of the alleged violations, including $86,297.
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 Paul S. Becker. It was investigated by the U.S. Secret Service and IRS-Criminal Investigation.
Prior Felon from Carlsbad Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Travis Hayslip, 36, of Carlsbad, N.M., pled guilty today in federal court in Las Cruces, N.M., to violating the federal firearms laws under a plea agreement in which he admitted igniting the fire that destroyed the Quality Inn Hotel in Carlsbad on March 9, 2016. Under the terms of his plea agreement, Hayslip will be sentenced to 30 months in federal prison followed by three years of supervised release. Hayslip will also be required to pay $2.4 million in restitution to Choice Hotels for the damage he caused to the hotel.
Hayslip was arrested on March 31, 2016, by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) on a federal arson charge. According to the criminal complaint, on March 9, 2016, a fire was ignited and caused an estimated $2 million in damages to the Quality Inn, a hotel that was under construction at 4106 National Parks Highway in Carlsbad in Eddy County, N.M. The complaint alleges that Hayslip walked through a part of the hotel that was under construction and lit a piece of debris with a lighter. Hayslip was subsequently indicted on April 26, 2016, on the same charge.
During today’s proceedings, Hayslip pled guilty to a felony information charging him with being a felon in possession of a firearm. In entering the guilty plea, Hayslip admitted that on March 16, 2016, in Eddy County, he possessed a firearm despite his prior felony conviction for theft in Arizona. Hayslip also acknowledged that he was responsible for the arson that occurred on March 9, 2016, at Choice Hotels in Carlsbad, and is therefore liable for $2.4 million in restitution for the damage caused by the fire.
Hayslip remains in federal custody pending a sentencing hearing which has yet to be scheduled.
Special Agents from the Las Cruces office and the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives and members of ATF’s National Response Team worked jointly with the Carlsbad Fire Department, the Carlsbad Police Department, the Pecos Valley Drug Task Force, the Office of New Mexico Fire Marshal, the Office of the New Mexico State Fire Investigator, and Gilbert Police Department K9 Handler, to follow leads, investigate the fire scene, interview witnesses and suspects, and analyze available surveillance footage. Assistant U.S. Attorneys Marisa Lizarraga and John Balla of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case.
Philadelphia Man Charged with Importing GBL from ChinaRead the Press Release
PHILADELPHIA - Anthony Guerriero, 41, of Philadelphia, Pennsylvania, was charged by indictment today with one count of importation of a controlled substance analogue, and one count of importation of a List I chemical, announced United States Attorney Zane David Memeger. According to the indictment, Guerriero illegally imported 8.16 liters of gamma-hydroxybutyric acid (“GBL”), a controlled substance analogue and an illegal List I chemical, into the United States from China
If convicted of all charges, Guerriero faces a maximum statutory sentence of 40 years in prison, a possible fine, a special assessment of $200, and three years of supervised release.
The case was investigated by Immigration and Customs Enforcement Homeland Security Investigations (“HSI”), U.S. Customs and Border Protection, and members of HSI’s Philadelphia Border Enforcement Security Task Force, including the Pennsylvania Attorney General’s Office’s Bureau of Narcotics Investigations, the Delaware County Criminal Investigations Division, and ICE’s Enforcement and Removal Operations. The case is being prosecuted by Assistant United States Attorney James A. Petkun.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.