Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
21 August 2016
U.S. Attorney Damon P. Martinez Pays Tribute to Hatch Police Officer Jose ChavezRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez paid tribute to Officer Jose Ismael Chavez of the Hatch Police Department this afternoon during the Officer’s public funeral service at the Pan American Center of New Mexico State University in Las Cruces, N.M. The U.S. Attorney’s remarks are set forth below.
“This afternoon, I have the privilege and honor of representing the federal law enforcement community during this solemn event.
“In these modern times, with all the stresses and complexities of life that pull us apart as a community, we know that there are certain truths that continue to bind us together. The police officer is a constant stabilizing force in our society who was present at the creation of our great nation and who continues to represent that part of our community that maintains law and order.
“In New Mexico, our local, county, state, tribal and federal law enforcement officers comprise one team. In New Mexico, we support our law enforcement officers, and this outpouring today is an example of our support. One officer killed in the line of duty us one officer too many, and we, as a community, must support a culture in which violence against law enforcement officers is unacceptable.
“Today, we offer our deepest condolences to the family of Officer Jose Chavez and pay tribute to his life. In wearing the badge, Officer Chavez stood for justice. In wearing the badge, Officer Chavez was dedicated to something greater than himself. In wearing the badge, Officer Chavez was a deeply heroic person who placed himself between good and evil.
“But Officer Chavez was not solely defined by his job. Officer Chavez was also a member of our community. He was also a son, a devoted partner, and a loving father. And he was a person who lived by integrity, and to whom we owe a great debt. A debt which can only be repaid by ensuring that his family and his daughters know the full support of the community; that the family and daughters of this fallen hero are never forgotten; and that the cause for which he sacrificed his life – the safety of the community – remains a top priority.
“At this time, I would like to read one of the two letters that U.S. Attorney General Loretta Lynch has sent to Officer Chavez’s family.”
USAG Letter Officer Chavez
20 August 2016
District Man Sentenced to over Ten Years in Prison for Beating Two Men at Rooming HouseRead the Press Release
WASHINGTON – Deonta J. Simms, 34, of Clinton, Md., has been sentenced to over 10 years in prison on charges of assault with significant bodily injury and simple assault for an attack of two men that took place in June 2014 after an argument at a rooming house in Northwest Washington, U.S. Attorney Channing D. Phillips announced.
Simms was found guilty by a jury in June 2016, following a trial in the Superior Court of the District of Columbia. He was sentenced on Aug. 19, 2016, by the Honorable Florence Pan. Following completion of his prison term, he will be placed on three years of supervised release.
According to the government’s evidence, in the early morning hours of June 6, 2014, Simms, who had been visiting and consuming alcohol with residents of a rooming house in the 700 block of Lamont Street, NW, became involved in an altercation with two of the home’s occupants, each of which were men who were approximately 60 years old. The argument turned physical and Simms struck one of the men in the head while inside the house. The argument migrated outside the house and Simms took the second victim down to the ground, where Simms then struck the man in the face multiple times with his fists, and repeatedly kicked the man in the head while he lay on the ground defenseless.
While the first victim suffered minimal injuries, the second victim suffered multiple lacerations and contusions to his face. He required emergency brain surgery to treat a blood clot, and still suffers some cognitive impairment.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Jennifer Clark; Paralegal Specialists Chae Vang and Donville Drummond; Criminal Investigator Mark Fitzgerald; and Assistant U.S. Attorneys C.B. Buente and Stephen Rickard. Finally, he expressed appreciation for the work of Assistant U.S. Attorney Veronica Jennings, who secured the indictment and tried the case, and Assistant U.S. Attorney Marco Palmieri, who also worked on the case and handled the sentencing hearing.
District Man Pleads Guilty to Shooting in Southeast Washington That Wounded 7-Year-Old GirlRead the Press Release
WASHINGTON – Michael Wiggins, 27, of Washington, D.C., has pled guilty to charges in a shooting last spring that injured a 7-year-old bystander, announced U.S. Attorney Channing D. Phillips and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Wiggins pled guilty on Aug. 19, 2016, in the Superior Court of the District of Columbia, to one count of aggravated assault while armed and one count of possession of a firearm during a crime of violence. The plea, which is contingent upon the Court’s approval, calls for a seven-year prison term. The Honorable Zoe Bush scheduled sentencing for Sept. 15, 2016.
In his plea, Wiggins admitted that on April 8, 2016, at about 9:30 p.m., he was in the 2900 block of Knox Place SE, and had been fighting with his cousin. As his cousin was leaving Knox Place by car, Wiggins fired four shots at the vehicle, shattering its back windshield. Meanwhile, the victim, a 7-year-old girl, was arriving home with her family after an outing to Chuck E. Cheese. One of the shots hit her in the chest and she fell to the ground. The victim was immediately transported to Children’s National Medical Center and is expected to make a full recovery. MPD officers were swift to identify Wiggins as the shooter and he was arrested on April 11, 2016. Wiggins admitted that he was shooting at his cousin that night.
In announcing the plea, U.S. Attorney Phillips and Chief Lanier commended the work of those who investigated the case from the Metropolitan Police Department. They also acknowledged the work of those handling the case at the U.S. Attorney’s Office, including Paralegal Specialist Antoinette Sakamsa, Victim/Witness Advocate Jennifer Allen, and Assistant U.S. Attorney Margaret E. Barr, who is prosecuting the matter.
19 August 2016
U.S. Servicemember Who Took Illegal Photos Inside Nuclear Sub, Impeded Investigation, Sentenced to PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Assistant Attorney General for National Security John P. Carlin announced that KRISTIAN SAUCIER, 29, of Arlington, Vt., was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 12 months of imprisonment, followed by three years of supervised release, for illegally retaining photos taken inside a nuclear submarine and impeding the investigation of the matter. While on supervised release, SAUCIER must spend six months in home confinement with electronic monitoring, and perform 100 hours of community service.
According to court documents and statements made in court, from September 2007 to March 2012, SAUCIER served as a machinist’s mate aboard the USS Alexandria, which is a U.S. Navy Los Angeles-class nuclear attack submarine based at the Naval Submarine Base New London in Groton, Conn. On at least three separate dates in 2009, SAUCIER used the camera on his personal cellphone to take photographs of classified spaces, instruments and equipment of the USS Alexandria, documenting the major technical components of the submarine’s propulsion system.
On January 19, 2009, at approximately 4:00 a.m., SAUCIER took two photos, one of the auxiliary steam plant panel and the other of the reactor compartment viewed through a portal. On March 22, 2009, at approximately 1:30 a.m., SAUCIER took two photos that, when placed side by side, provided a panoramic array of the Maneuvering Compartment, the room from which the propulsion system of the boat is operated. On July 15, 2009, at 12:47 p.m., SAUCIER took two photos documenting the reactor head configuration of the nuclear reactor and a view of the reactor compartment from within that compartment.
SAUCIER had a Secret clearance and knew that the photos depicted classified material and that he was not authorized to take them. He retained these photographs and failed to deliver them to any officer or employee of the U.S. entitled to receive it.
The investigation began in March 2012 when SAUCIER’s cellphone was found at a waste transfer station in Hampton, Conn. SAUCIER was interviewed by the Federal Bureau of Investigation and Naval Criminal Investigative Service in July 2012 and confronted with the classified images from his phone. Following that interview and in an effort to impede the federal investigation, SAUCIER returned to his home and immediately destroyed a laptop computer, a personal camera and the camera’s memory card. Pieces of a laptop computer were subsequently found in the woods on a property in Connecticut owned by a member of SAUCIER’s family.
SAUCIER was arrested on May 28, 2015. On May 27, 2016, he pleaded guilty to one count of unauthorized possession and retention of national defense information.
SAUCIER, who is released on bond, was ordered to report to prison on October 12, 2016.
SAUCIER is currently enlisted in the U.S. Navy as a Petty Officer First Class assigned to the Naval Support Activity Base, Saratoga Springs, N.Y. He is awaiting an administrative separation board proceeding.
This matter was investigated by the Federal Bureau of Investigation and the Naval Criminal Investigative Service. The case was prosecuted by Assistant U.S. Attorneys Vanessa Richards and Jacabed Rodriguez-Coss, and Trial Attorney Will Mackie from the Justice Department’s National Security Division, with the assistance of the U.S. Attorney’s Office for the Northern District of New York.
Two Massachusetts Men Sentenced for Fentanyl Distribution ConspiracyRead the Press Release
CONCORD, N.H. – Israel Garcia, 56, of Lawrence, Massachusetts and Maximo Brito-Tejeda, 36, a citizen of the Dominican Republic most recently residing in Lawrence, Massachusetts, were sentenced in United States District Court for the District of New Hampshire after pleading guilty to five counts of distribution of fentanyl and one count of conspiracy to distribute fentanyl, announced United States Attorney Emily Gray Rice. United States District Judge Paul J. Barbadoro sentenced Garcia to 78 months in federal prison followed by a term of supervised release of four years and Brito-Tejeda to 88 months in federal prison followed by a term of supervised release of four years.
According to court documents, during a law enforcement investigation, officers received information from a cooperating source indicating that Garcia and an individual later identified as Brito-Tejeda were actively involved in the distribution of drugs in and around the Massachusetts and Southern New Hampshire areas. As part of the investigation, law enforcement officers used the cooperating individual and an undercover officer to make controlled purchases of fentanyl from Garcia and Brito-Tejeda on five occasions in August and September, 2015. On each occasion, Garcia and Brito-Tejeda met the cooperating individual and/or the undercover officer and sold them approximately ten grams of fentanyl.
On September 25, 2015, officers approached Garcia and Brito-Tejeda in an attempt to arrest them. Garcia fled but was apprehended within seconds and Brito-Tejeda locked himself in his car, emptied bags containing fentanyl onto the floor mat, and poured his drink over the drugs. He also attempted to swallow plastic bags containing additional quantities of fentanyl. That same day, the Drug Enforcement Administration executed a search warrant at the residence occupied by Brito-Tejeda where Garcia and Brito-Tejeda stored and packaged drugs. A scale, packaging materials, and an additional quantity of fentanyl were recovered at this residence.
“Prosecuting those individuals who illegally introduce narcotic drugs into our communities is a priority of my office,” stated United States Attorney Emily Gray Rice. “Fentanyl, in particular, is an incredibly dangerous substance responsible for many overdose deaths in New Hampshire. We will continue to work tirelessly to prosecute those who seek to profit from the sale of this dangerous drug.”
“Opiate abuse is at epidemic levels in New Hampshire and throughout New England,” said DEA Special Agent in Charge Michael J. Ferguson. “Fentanyl is causing overdose deaths across the Granite State, and DEA is committed to aggressively pursue trafficking organizations or individuals who are coming from out of state to distribute fentanyl to areas of New Hampshire in order to profit and destroy people’s lives, and wreak havoc in our communities. This investigation demonstrates the strength and continued commitment of our local, state and federal law enforcement partners."
According to statistics maintained by the State of New Hampshire, over half of the drug overdose deaths in New Hampshire in 2015 were related to fentanyl. Because a single gram of heroin or fentanyl can be used to create multiple individual dosage units that can be sold “on the street,” the quantity of fentanyl involved in this case could have generated many individual doses of fentanyl, each of which had the potential to cause a fatal overdose.
The case was investigated by the Drug Enforcement Administration and was prosecuted by Assistant United States Attorneys Seth Aframe and Georgiana L. Konesky.
###
Three Defendants Plead Guilty in Identity Theft Tax Fraud SchemesRead the Press Release
SAN JUAN, P.R. – Defendants Gabriel Aquino-Camilo and Pedro J. Esteves-Rosa and defendant Samer Suboh-Kased plead guilty before United States District Judge Juan M. Pérez-Giménez to twenty counts, ten counts, and five counts, respectively, of theft of government property, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
From December 2011 through May 2012, Aquino-Camilo gave Esteves-Rosa twenty (20) U.S. treasury checks totaling $138,912.43 that were fraudulently obtained by filing false tax returns with the Internal Revenue Service (IRS) using stolen identities of residents of Puerto Rico. Esteves-Rosa successfully deposited the checks into two business bank accounts that he controlled. The treasury checks were endorsed with the victims’ signatures, but each victim denied filing the tax return and endorsing the check.
From September through October 2012, defendant Suboh-Kased also received treasury checks that were fraudulently obtained by filing fraudulent tax returns with the IRS. He deposited these checks into his business bank accounts, without the authorization of the individuals whose names were on the checks, and then Suboh-Kased withdrew the money in cash. Suboh-Kased received a percentage for each check he deposited and another individual kept the remaining amount.
The cases were investigated by the Internal Revenue Service, Criminal Investigation (IRS-CI) and prosecuted by Assistant United States Attorney Nicholas W. Cannon. Esteves-Rosa and Suboh-Kased are scheduled to be sentenced on November 29, 2016. Aquino-Camilo is scheduled to be sentenced on December 15, 2016.
Tennessee Business Owner Sentenced to Prison for Failing to Pay More Than $8 Million in Employment TaxesRead the Press Release
Spent $6.2 million on Personal Expenses from Business Accounts while Failing to Pay U.S. Treasury
A Germantown, Tennessee, resident and business owner was sentenced today to one year in prison and ordered to pay more than $10 million in restitution for failing to pay over employment taxes to the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and U.S. Attorney Edward L. Stanton III of the Western District of Tennessee.
“Payment of employment taxes is not optional,” said Principal Deputy Assistant Attorney General Ciraolo. “Nor are such withholdings an interest-free source of money to be tapped to make payments on lavish personal expenses. The sentence that Mr. Thornton received today reflects not just the harm that his actions caused to the U.S. Treasury but also the financial risks he placed on his employees by deliberately not filing their W-2 forms with Social Security on a timely basis.”
According to court documents, Larry Thornton, 67, was the majority owner, president and chief executive officer (CEO) of Software Earnings, Inc. (SEI), a Memphis company that produced and installed check processing. Thornton was also the 100 percent owner, CEO and president of First Touch Payment Solutions, LLC (First Touch), a Memphis company that provided merchant services for credit card processing. Thornton, as CEO and president of SEI and First Touch, had ultimate and final decision-making authority regarding SEI’s and First Touch’s business activities and had authority to exercise significant control over SEI’s financial affairs. Thornton admitted that he was responsible for collecting, accounting for, and paying over to the IRS federal income taxes and Federal Insurance Contributions Act (FICA) taxes that were withheld from the wages of SEI and First Touch’s employees.
Beginning in the second quarter of 2007, Thornton caused SEI to stop paying over the taxes required to be withheld from SEI’s employees’ paychecks and caused SEI to stop timely filing Employer’s Quarterly Federal Tax Returns, Forms 941, with the IRS. Beginning in the first quarter of 2010, Thornton caused First Touch to stop paying over the taxes required to be withheld from First Touch’s employees’ paychecks and caused First Touch to fail to timely file Forms 941 with the IRS. Between 2007 and 2011, Thornton collected more than $6.8 million in employment taxes from SEI and First Touch employees’ paychecks, but failed to pay those collected taxes over to the IRS. Thornton also failed to pay his companies’ matching share of FICA taxes during those years. During that time period, two of Thornton’s full-time accountants – both of whom were certified public accountants (CPAs) – warned Thornton about his failure to pay over employment taxes. Both CPAs resigned their positions due to Thornton’s unwillingness to comply with his employment tax obligations.
During the same years in which Thornton failed to comply with his employment tax obligations, Thornton spent more than $6.2 million from the business bank accounts on personal expenses, including house and condominium payments; vehicle, yacht and motorcycle loan payments; personal travel; and start-up funding for his wife’s beauty boutique. According to court documents, Thornton also failed to file personal and corporate income tax returns. As part of the guilty plea, Thornton admitted that his illegal conduct caused a tax loss of more than $8.9 million to the IRS.
“Larry Thornton’s efforts to conceal from IRS millions of dollars generated by his businesses afforded him a plush lifestyle for several years,” said U.S. Attorney Stanton. “But his illegal and illicit acts also have earned him a stint in federal prison and a multimillion-dollar restitution fee. We will continue to work with our law enforcement partners to pursue and bring to justice anyone who violates the nation’s tax laws.”
“Employment tax evasion results in the loss of tax revenue to the U.S. government and the loss of future social security or Medicare benefits for the employees,” said Special Agent in Charge Tracey D. Montaño of IRS Criminal Investigation (CI). “Failure to pay over withheld taxes is a serious offense. Corporate executives like Mr. Thornton have a responsibility to withhold income taxes for their employees and then remit those taxes to the IRS. IRS Criminal Investigation will vigorously pursue anyone who collects these taxes and uses the funds for their own personal gain.”
In addition to the prison term, Thornton was ordered to serve two years of supervised release. Thornton was also ordered to pay restitution in the amount of $10,822,728.99 to the IRS.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Stanton commended special agents of IRS–CI, who investigated the case and Assistant U.S. Attorney Damon Griffin of the Western District of Tennessee and Trial Attorney Robert J. Boudreau of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its employment tax enforcement efforts may be found on the division’s website.
Telephone Scammers Continue to Target Idaho Residents Callers Claiming to be a Deputy U.S. Marshal Falsely Threaten with Federal Arrest WarrantRead the Press Release
BOISE – The United States Attorney’s Office and the United States Marshals Service are advising Idaho residents to be aware of telephone calls threatening individuals of a pending arrest warrant for not responding to federal jury summonses. Calls have been reported in the Boise and Coeur d’Alene areas.
It was recently reported that Idaho residents have received phone calls from a person from the following number 208-391-5870 claiming to be a Deputy U.S. Marshal demanding that citizens post bond for failing to appear for a federal jury summons. This is not a valid phone number of the U.S. Marshals Service.
Because the telephone calls are continuing to occur, the United States Attorney wants the public to be aware of these scam calls. Officers do not notify people of arrest warrants by phone. A valid arrest warrant would be served in person by a Deputy U.S. Marshal or other law enforcement officer. Persons receiving such a telephone call are cautioned not to provide any information and to notify the U.S. Marshals Service immediately.
“I urge everyone who receives this type of phone call to be very skeptical, or better yet, simply hang up the phone,” said Brian T. Underwood, United States Marshal for the District of Idaho. “This is not a typical way that the U.S. Marshals resolve warrant related matters.”
It is a crime for an individual to falsely represent himself or herself as a federal official or Deputy United States Marshal. Accordingly, this scam and any similar fraudulent conduct will be investigated by the U.S. Marshals Service, in partnership with the FBI.
Surgoinsville Resident Sentenced to Thirty Years in Federal Prison for Drug Trafficking, Firearm and Witness IntimidationRead the Press Release
GREENEVILLE, Tenn. – On Aug. 19, 2016, Gregory Harold Moore (Moore), 47, of Surgoinsville, Tenn., was sentenced by the Honorable R. Leon Jordan, U.S. District Court Judge, to serve 360 months in federal prison following his convictions for conspiracies to distribute methamphetamine, hydrocodone, oxycodone and oxymorphone, as well as conspiracy to threaten bodily injury to a person in retaliation for suspected cooperation with law enforcement and engaging in intimidating and threatening conduct with the intent to influence or prevent testimony in an official proceeding and possession of a firearm in furtherance of a drug trafficking offense.
According to his plea agreement on file with U.S. District Court, Moore admitted that between May 2015 and August 2015 he sold an approximate total of two ounces of methamphetamine, spread out over four separate occasions, to an individual working with law enforcement. In August 2015, Moore told this individual that he could provide him/her with three ounces of methamphetamine the next time they met (and currently had two ounces of methamphetamine). A federal search warrant was executed at Moore’s Surgoinsville residence during which law enforcement agents found approximately 48 firearms, over $24,000.00 in cash, approximately 190 hydrocodone pills and a silencer. Moore was arrested and taken to jail on the same day.
While incarcerated on these charges, Moore engaged in a significant number of telephone calls, which were recorded on the jail system. During these recorded phone calls, he directed others, including co-defendants, Pamela Moore, 47, of Surgoinsville, Tenn., David Allen Davis, 47, of Church Hill, Tenn., and Kathy Denice Jones, 50, also of Church Hill, Tenn., to collect pain pills and methamphetamine that were not located during the search of his residence in order to hide them from the police and be sold to raise profit and/or to collect other drug debts for Moore while he was in jail. Additionally, Moore told his wife, Pamela Moore to spread the word as to the identity of the person he believed was working with law enforcement and get another co-defendant Donnie Dwayne Wallen, 38, of Church Hill, Tenn., to cause bodily injury to that person for cooperating against Moore. In particular, Moore wanted Wallen to “beat his brains out,” and “beat the brakes off” the individual because he/she was a “narc” and a “snitch.”
During another recorded jail call between Moore and Jones, Moore estimated that there was over $30,000 worth of pills hidden at his residence. He told Jones that the police only found a little over $20,000 in cash during the search because he had invested the rest in drugs. Law enforcement agents returned to Moore’s residence and continued their search, locating 355 oxymorphone pills, 357 oxycodone pills and 7.4 ounces of methamphetamine which had been hidden by Moore. In a subsequent recorded meeting, Davis told Pamela Moore that the value of all of the drugs seized by the police was likely at least $50,000.
Davis, Jones and Wallen all met at Jones’ residence in Church Hill to discuss Moore’s directions. During the meeting, Jones stated that Wallen was “prepared to go ahead and beat the h*** out of the guy, you know leave him for dead” but just wanted to make sure it was the right person. Wallen stated that he was going to collect $1,000.00 for Moore from the source and that if he/she didn’t pay, he would break his/her legs. Wallen stated that he couldn’t “beat the h***” out of the individual and then expect him to pay the $1,000.00, unless he/she had it on them and he could just take it, “and most people don’t carry $1,000.00 on them unless they are Greg Moore.” Wallen and Jones were previously sentenced to 66 months and 41 months respectively for their roles in the relevant conspiracies. Both Pamela Moore and Davis have sentencing hearings scheduled in U.S. District Court within the next few months.
U.S. Attorney Nancy Stallard Harr stated, “The safety and security of witnesses involved in the criminal cases is paramount. There are few cases that this office takes more seriously than witness intimidation or retaliation as such crimes tear at the very fabric of the criminal justice system. We believe that this sentence on Gregory Harold Moore illustrates these intimidation type tactics simply cannot be tolerated in the criminal justice system.” U.S. Attorney Harr added, “These law enforcement agencies worked closely together to halt the destruction of lives in Hawkins County from illegal drug use and addiction directly attributable to violent drug dealers such as Moore.”
Law enforcement agencies participating in the investigation included the Federal Bureau of Investigation Morristown Rocky Top Task Force, Third District Judicial Drug Task Force, Hawkins County Sheriff’s Office, Hamblen County Sheriff’s Office, and Appalachian High Intensity Drug Task Force. Assistant U.S. Attorney Wayne Taylor represented the United States.
###
State Prison Inmate in Tax Fraud Ring Sentenced to 18 Months in Federal PrisonRead the Press Release
SACRAMENTO, Calif. — Daniel Allen Coats, 34, of Turlock, was sentenced today by United States District Judge Garland E. Burrell Jr. to one and a half years in prison and ordered to pay $8,938 in restitution for his role in a conspiracy to defraud the United States by filing false claims for federal tax refunds, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, beginning in 2011, Coats and three fellow inmates in the California Correctional Center in Susanville obtained the personal identification information of other inmates and provided it to co-defendants outside the prison. The co‑defendants then used that information to prepare and file false income tax returns with the Internal Revenue Service, claiming refunds to which the inmates were not entitled. Coats also filed three false tax returns in his own name.
In all, the conspiracy resulted in at least 247 false claims for income tax returns in the tax years 2008 through 2011. Although the IRS stopped some of these refunds, approximately 138 fraudulent refunds totaling approximately $219,984 were issued.
“Prison refund fraud schemes are a priority for Special Agents at IRS Criminal Investigation,” said Cindy S. Chen, Acting Special Agent in Charge, IRS Criminal Investigation. “Today’s sentence of Daniel Coats is an example of our hard work in combating tax fraud and assuring to the public that those who commit tax fraud are prosecuted to the fullest extent.”
This case was the product of an investigation by the IRS, Criminal Investigation, the Federal Bureau of Investigation, and the Investigative Services Unit at the California Correctional Center. Assistant United States Attorney Amy Schuller Hitchcock prosecuted the case.
On July 8, 2015, co-defendant Edwin Ludwig IV was sentenced to seven years in prison for his role in the scheme. On July 29, 2016, Judy Ruth Mullin was sentenced to 21 months in prison for her participation. One other defendant has pleaded guilty and is set for sentencing later this month. The charges against the remaining three co-defendants are pending. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
South Bend Man Sentenced to 97 Months' ImprisonmentRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Alexander Newman, 26, of South Bend, Indiana was sentenced on August 18, 2016, before Judge Jon E. DeGuilio, for manufacturing methamphetamine and possession of destructive devices (bombs).
Newman was sentenced to 97 months’ imprisonment and 2 years of supervised release.
According to documents filed in this case, Newman was arrested on February 29, 2016 on outstanding warrants and was found to be in possession of materials used to manufacture methamphetamine. Newman was also in possession of three destructive devices in his home in South Bend, Indiana.
This case was prosecuted as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Frank E. Schaffer.
# # #
Sex Offender Sentenced for Fraudulent StatementsRead the Press Release
United States Attorney Deborah R. Gilg announced that Robert Brooks Tipton, Jr., 38, formerly of Broken Bow, Nebraska, was sentenced today in Lincoln, Nebraska, to 2 years in prison by United States District Judge John M. Gerrard, for making false statements or representations to an agency of the United States. After his release from prison, Tipton will serve 3 years of supervised release and still be required to register as a sex offender.
On February 18, 2014, Tipton and his girlfriend applied for public housing through the Broken Bow Housing Authority (BBHA) in Broken Bow, Nebraska. Tipton was listed as another adult household member living in the assisted housing unit. On page 5 of the BBHA application, the question “Have you or anyone in your household ever been convicted of any crime other than traffic violations?” was presented The question was answered by checking “No.” In fact, defendant had been convicted of felony Sexual Assault of a Child in Garfield County, Colorado, on or about August 9, 2001, a fact which excluded him from obtaining public housing at BBHA. Defendant signed the BBHA application on February 18, 2014 below the statement “I do swear and attest that all of the information above about me is true and correct.” The BHHA administers a subsidized housing complex in Broken Bow, Nebraska, for the Department of Housing and Urban Development (HUD), an agency and department of the United States. HUD regulations forbid any sex offender convicted of a felony sex offense from living in public housing.
This case was investigated by the Department of Housing and Urban Development and the United States Marshals Service.
Serial Convenience Store Armed Robber Sentenced to 46 YearsRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell yesterday sentenced Joshua Anthony Rivera (29, Orlando) to 46 years in federal prison for interfering with interstate commerce by robbery, brandishing a short-barreled shotgun in the course of committing those robberies, and possessing a firearm as a convicted felon.
Rivera was found guilty by a jury on March 10, 2016.
According to evidence presented at trial, between June 7 and June 17, 2015, Rivera robbed three convenience stores and a grocery store using a short-barreled shotgun. During the trial, victims of those robberies testified about their terrifying experiences, including one father whose young daughter had been with him during the robbery. In addition, surveillance videos revealed that the robber had worn some of the same articles of clothing during multiple robberies, particularly the same pair of athletic shoes. Trial evidence also showed that Rivera had used the same short-barreled shotgun during each robbery, and also had used the same Ford Expedition during at least two of the robberies.
When law enforcement officers arrested Rivera at his hotel, shortly after the last robbery, they found articles of clothing, the short-barreled shotgun, the Ford Expedition, and several other items matching those used during the robberies.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Hillsborough County Sheriff’s Office, the Plant City Police Department, the Manatee County Sheriff’s Office, and the Pasco County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Shauna S. Hale and Taylor G. Stout.
Riverside Police Officer Honored for Law Enforcement, Volunteer WorkRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that K9 Officer Andrew Marr of the Riverside, Mo., Police Department has received the 2016 Enoch B. Morelock Award.
The Enoch B. Morelock Award is an annual recognition of outstanding moral character, service to law enforcement and service to the community. Marr was honored on Thursday, Aug. 18, 2016, during the 14th Annual LECC Training Seminar in Springfield, Mo. The prestigious law enforcement award, presented annually by the U.S. Attorney’s Office Law Enforcement Coordinating Committee, is named in honor of Sullivan County Sheriff Enoch B. Morelock, who was the first recorded line of duty death in the Western District of Missouri on Dec. 19, 1847.
Marr was recognized for his life-saving actions and display of compassion that occurred on May 23, 2016. Shortly after 10 p.m., Marr (newly appointed K9 officer) arrived to back up another officer who had stopped behind what appeared to be a stalled vehicle on the I-635 bridge over the Missouri River. They encountered a man standing between the vehicle and the concrete barrier wall. Marr arrived and, as the senior officer working with two younger officers, took control and began talking to the man in hopes of persuading him to get off the wall. Marr assured the man he would get help.
With radio chatter about getting rescue boats in the water, the man began to lean forward and push off the wall. Marr grabbed him and pulled him back over the wall. With the help of other officers, Marr was able to place the man in handcuffs for his safety.
Marr placed his arm around the man and began to ask him what was wrong. Marr continued to sit with the man and comfort him, patting him on the shoulder and talking with him until EMS arrived.
In addition to his police work, Marr is a volunteer firefighter with the West Platte Fire Department, responding to fire and emergency calls on his off time to help protect his community.
His compassion doesn't stop there; since 2011 Marr has been a member of the Missouri Law Enforcement Funeral Assistance Team. After the loss of good friend and co-worker, Officer Jeff Taylor, Marr decided he wanted to join the team and give back to other agencies and families who suffer through a line of duty death. Marr has been co-chair of the Funeral Team’s annual fundraiser motorcycle ride for the past three years, which is the main source of funding for the team’s activities.
Enoch B. Morelock Award
Sullivan County Sheriff Enoch B. Morelock was the first recorded line of duty death in the Western District of Missouri on Dec. 19, 1847, in Sullivan County. Sheriff Morelock was shot and killed during a court‑ordered sale of the accused=s property. The accused killer, Patrick McIntry, was charged with 1st Degree Murder but was later acquitted. Within a year Mr. McIntry was found shot to death on the banks of a local river.
The annual Enoch B. Morelock Award recognizes individuals with outstanding moral character, service to law enforcement and to the community outside of law enforcement. Recipients may include officers from local police departments, sheriffs= offices, state agencies, or federal agencies as well as investigators from prosecutors= offices.
Riverside Man Sentenced for Possessing Child PornographyRead the Press Release
DAYTON – Frederick McAdoo, 57, of Riverside, Ohio was sentenced in U.S. District Court today to 30 months in prison for possessing more than 100 video files and more than 350 images of child pornography depicting victims as young as five years old.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division announced the sentence handed down today by U.S. District Judge Thomas M. Rose.
According to court documents, McAdoo accumulated and shared the digital images and videos for nine years, beginning in 2005. FBI agents patrolling the Internet in 2014 found the images in a file-sharing website and tracked them to McAdoo’s residence.
Investigators seized 11 hard drives, four computers, and more than 200 pieces of digital storage media during the investigation.
McAdoo will be notified when he is to surrender to the U.S. Bureau of Prisons to begin serving his sentence. After completing his time in prison, McAdoo will remain under court supervision for five years. While under court supervision, he must register as a sex offender anywhere that he lives, works or goes to school. Monitoring software will be installed on all of his computers. His computer use will be restricted and he must disclose any contact he has with minors.
McAdoo pleaded guilty on May 13, 2016 to one count of possession of child pornography.
Acting U.S. Attorney Glassman commended the cooperative investigation by the FBI and the Ohio Internet Crimes Against Children Task Force, as well as Assistant United States Attorney Alex R. Sistla, who is representing the United States in this case.
Randolph County Man Sentenced for Methamphetamine OffenseRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that Christopher L. Dallas, 36, of Chester, was sentenced for a methamphetamine offense.
Dallas, who had previously pled guilty to a one-count indictment charging conspiracy to distribute methamphetamine, was sentenced to 120 months in prison, to be followed by three years supervised release. Dallas was also fined $200.00. Evidence at the plea and sentencing hearings established that Dallas was involved with others in the distribution of methamphetamine in the form of "ice." Ice is methamphetamine which has a purity level of at least 80%. At sentencing, the District Court found Dallas was responsible for the distribution of 115 grams of ice. The offense occurred between 2014 and June 2015 in Perry and Randolph Counties.
The investigation was conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Perry County Drug Task Force, Percy Police Department, Steeleville Police Department, Illinois State Police Methamphetamine Response Team, DuQuoin Police Department, Pinckneyville Police Department, and Drug Enforcement Administration. The Randolph and Perry County States Attorney’s Offices also assisted in the investigation.
President of Kansas Ladder Company Pleads Guilty to Bribery at Tinker Air Force BaseRead the Press Release
Oklahoma City, Oklahoma – JEFFREY A. GREEN, 46, of Bartlesville, Oklahoma, pled guilty today to offering a bribe to a public official at Tinker Air Force Base, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
Green is the president and chief executive officer of LockNClimb, LLC ("LockNClimb"), with headquarters in Independence, Kansas. LockNClimb manufactures and sells specialty ladder systems. On July 7, 2016, Green was charged in a one-count Information with offering a bribe to a public official at Tinker Air Force Base ("Tinker"). The information alleged that, on May 10, 2016, Green provided United States currency to a public official at Tinker in exchange for that official’s purchase of ladders for the United States Air Force from LockNClimb.
At this morning’s plea hearing, Green admitted that he had contact from January through May of 2016 with a public official at Tinker and sold ladders to the official on three occasions. Green met with the official on May 10, 2016, at a restaurant in Oklahoma City, and gave the official approximately $280 in cash in exchange for the Air Force’s recent purchase of ladders from LockNClimb. Green further admitted that the cash payment was based on a percentage of LockNClimb’s recent ladder sale to Tinker, and that he had agreed with the Tinker official for LockNClimb to pay the official cash on the side for each ladder that the Air Force purchased from LockNClimb.
At sentencing, Green faces up to 15 years in prison and a fine of $250,000. United States District Judge Timothy D. DeGiusti will sentence Green in approximately 90 days. This charge is the result of an investigation conducted by the U.S. Air Force Office of Special Investigations, Federal Bureau of Investigation, and Defense Criminal Investigative Service. The case is being prosecuted by Assistant U.S. Attorney Chris M. Stephens.
Reference is made to court filings for further information.
Pharmacy Owner and Medical Doctor Charged in an Internet Scheme to Dispense Medications to Customers Without Valid PrescriptionsRead the Press Release
Customers received prescription drugs based solely on completion of online medical questionnaires
Sales exceeded $4 million
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr. this week charged several defendants and businesses, all tied to a multi-million-dollar internet scheme to dispense medications to customers without a valid prescription, with ten criminal charges. The indicted charges include an internet pharmacy conspiracy, conspiracy to distribute misbranded drugs, distributing misbranded drugs, mail fraud conspiracy, wire fraud conspiracy, health care fraud, engaging in the unlicensed wholesale distribution of prescription drugs, aggravated identity theft, conspiracy to commit money laundering, and obstruction of a criminal investigation.
Those charged were: Philip E Michael II of Alum Creek, West Virginia, and his business MEDS 2 GO, Inc. later known as MEDS 2 GO Express Pharmacy, Inc.; physician Euton Laing, of Piscataway, New Jersey, who is licensed to practice medicine in New Jersey, and was employed by RX Limited – a website selling prescription drugs over the internet; Mark Reinhard of Cross Lanes, West Virginia, who is charged with being an unlicensed wholesale distributor of prescription drugs; and Joetta Kuhn (of no familial relation to U.S. Attorney John Kuhn) of Louisville, Kentucky, who is charged with obstructing a criminal investigation.
According to the indictment, beginning in June of 2009 and continuing until at least April of 2012, defendant Philip Michael caused prescription drugs to be provided to customers of the website RX Limited. Specifically, through Aracoma Pharmacy and MEDS 2 GO Pharmacy, Michael filled and shipped various prescription drug orders to customers, for RX Limited and other internet websites, located across the United States and in the Western District of Kentucky, who did not have a valid prescription. These prescription drug orders were shipped to various states, which by law, required a valid prescription, prior to the drugs being dispensed. Customers would receive a prescription without ever seeing or speaking with a physician or medical practitioner, rendering the prescription invalid. Rather, customers would merely choose which prescription drug he or she wanted and complete an online medical questionnaire. The website operator would then send the completed online medical questionnaire by electronic means to an issuing doctor, including Eutan Laing, John Burlington, Edward Kaplan, and others known and unknown by the Grand Jury. (Physicians Burlington and Kaplan have pleaded guilty to charges in the Southern District of New York.) The drug would be prescribed without verifying the customers’ medical complaint, having an adequate patient history, performing a mental or physical exam, using appropriate diagnostic or laboratory testing, and providing a means to monitor the customer’s response to the medication. Then the invalid prescription would be filled by MEDS 2 Go or Aracoma, and shipped to customers across the United States.
During the course of the Internet Pharmacy Scheme, bank accounts controlled by Michael allegedly received approximately $4,000,000 from website operators, and others known and unknown to the Grand Jury. Physicians Laing, J.N.B., E.S.K., and others, were allegedly paid by website operators via wire transfers in excess of $800,000.
Further, MEDS 2 GO is charged with distributing misbranded drugs as the medications were not safe for use except under the supervision of a practitioner licensed by law to administer the drugs. Dispensing of Soma - a muscle relaxant, Ultram – a painkiller, and Fioricet – a treatment for tension headaches without a valid prescription caused the drugs to become misbranded.
Additionally, Michael is charged with defrauding a health care benefit program by submitting a fraudulent claim for payment to Humana Insurance Company for dispensing medication to P.R. which was never dispensed.
Also, Michael is charged with aggravated identity theft for using the name, date of birth and other identifying information for P.R. and the name and NPI number of A.S., a physician, to submit a fraudulent claim for payment.
In addition, proceeds from alleged criminal activities are subject to forfeiture to the United States. This includes, but is not limited to, an annuity and life insurance policy, vehicles associated with defendants Philip Michael and Meds 2 Go (2011 Jeep Grand Cherokee, 2011 Cadillac Escalade, 2008 Toyota Sequoia, and 2007 Chevy Corvette), a money judgement not less than 4 million dollars.
In the event of a conviction, the potential penalties range from 2 years to 20 years in prison for each specific count, a $250,000 fine for each count, and supervised release for a period of three years. The aggravated identity theft charge carries a minimum penalty of 2 years.
The case is being prosecuted by Assistant United States Attorney Lettricea Jefferson-Webb, and it results from an investigation conducted by the U. S. Food and Drug Administration, Office of Criminal Investigations, the Kentucky State Police and the West Virginia State Police.
***
The charge of a person by Federal Indictment is an accusation only and that person is presumed innocent until and unless proven guilty
Pasadena Doctor Sentenced to 4 Years in Prison for Falsely Certifying Patients Were Terminally Ill as Part of Healthcare Fraud SchemeRead the Press Release
LOS ANGELES – A doctor from Pasadena who falsely certified that at least 79 Medicare and Medi-Cal patients were qualified for hospice care because they were terminally ill – when, in fact, the vast majority of them were not dying – has been sentenced to four years in federal prison.
Boyao Huang, 43, was sentenced on Monday by United States District Judge S. James Otero. In addition to the prison term, Judge Otero ordered Huang to pay $1,344,204 in restitution.
At the conclusion of a two-week trial in May, Huang was found guilty of four counts of health care fraud for participating in a scheme related to the Covina-based California Hospice Care (CHC). Between March 2009 and June 2013, CHC submitted approximately $8.8 million in fraudulent bills to Medicare and Medi-Cal for hospice-related services, and the public health programs paid nearly $7.4 million to CHC.
A second doctor who was convicted at trial – Sri Wijegoonaratna, known as Dr. J., 61, of Anaheim, who was found guilty of seven counts of health care fraud – is scheduled to be sentenced by Judge Otero on February 13, 2017.
“This scheme preyed upon dozens of patients and their families who were led to believe that their worst nightmare had come true – that they had life-ending illnesses,” said United States Attorney Eileen M. Decker. “Criminals such as the defendants in this case who steal from taxpayers by defrauding the Medicare system and who victimize vulnerable individuals like medical patients deserve significant prison sentences.”
In addition to the two doctors, eight other defendants were charged in the scheme and have pleaded guilty to health care fraud charges. Those other defendants include a Placentia woman who purchased CHC in 2007 and operated the facility after being charged and incarcerated in another health care fraud scheme. Priscilla Villabroza, 70, who pleaded guilty in December 2015 to one count of health care fraud, was sentenced in June to eight years in federal prison.
As part of the CHC fraud scheme, Villabroza and her daughter – who was the nominal owner while Villabroza was in custody – paid patient recruiters known as “marketers” or “cappers” to bring in Medicare and Medi-Cal beneficiaries. CHC nurses performed “assessments” to determine whether the beneficiaries were terminally ill and, regardless of the outcome, Wijegoonaratna and Huang certified that the beneficiaries were terminally ill – even though the vast majority of them were not dying. CHC personnel altered medical records in response to Medicare audits to make the beneficiaries appear sicker.
By the time the scheme was shut down in June 2013, Medicare and Medi-Cal had paid millions of dollars for medically unnecessary hospice-related services.
The investigation into California Hospice was conducted by the United States Department of Health and Human Services, Office of Inspector General; the Federal Bureau of Investigation; the California Bureau of Medi-Cal Fraud & Elder Abuse; and IRS Criminal Investigation.
This case is being prosecuted by Assistant United States Attorney Steven M. Arkow of the Major Frauds Section and Assistant United States Attorney Leon W. Weidman, Special Counsel to the United States Attorney.
Owner of Rainbow Center for Children Pleads to Defrauding TennCare of More Than $300,000Read the Press Release
Memphis, TN – The owner of a grief counseling and psychotherapy services provider has pleaded guilty to defrauding TennCare of more than $300,000. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty plea today.
According to information presented in court, Vicky Fox, 53, of Memphis, Tennessee, owned and operated the Rainbow Center for Children and Adolescents. The establishment provided grief counseling and psychotherapy services to children and families in the Memphis area.
The Rainbow Center contracted with TennCare, the Tennessee-based program of Medicaid, from 2008 through 2013 and 2015. Under the contract, the Rainbow Center employed Licensed Clinical Social Workers (LCSWs) to provide counseling services. One of the LCSWs, Lillie Hughey, worked for the establishment until January 2012. After Hughey left the Rainbow Center, Fox used her former employee’s provider number and information to bill TennCare for counseling services that were never provided.
In August 2014, the Tennessee Bureau of Investigation (TBI) received a referral from the Bureau of TennCare, Program Integrity Unit (PIU) regarding a fraud investigation involving the Rainbow Center. The investigation revealed that Fox’s fraudulent claims scheme defrauded TennCare of more than $300,000.
On Friday, August 19, Fox pleaded guilty before U.S. District Judge John T. Fowlkes Jr. to one count of health care fraud.
Fox is scheduled to be sentenced onNovember 18, 2016. She faces up to 10 years in federal prison and a fine of up to $250,000.
This case is being investigated by TBI and the Bureau of TennCare.
Assistant U.S. Attorney Damon Keith Griffin is prosecuting this case on the government’s behalf.
North Miami Resident Pleads Guilty to Possessing 2,875 Stolen IdentitiesRead the Press Release
A North Miami resident pled guilty to possessing 2,875 stolen identities.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General (DOL-OIG), and William Hernandez, Chief, North Miami Beach Police Department (NMBPD), made the announcement.
Camelin Junior Desrosiers, 28, pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). Sentencing is scheduled for October 25, 2016 before U.S. District Court Judge Darrin P. Gayles. At sentencing, Desrosiers faces a statutory maximum of ten years’ imprisonment for the access device charge, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.
According to court documents, on February 25, 2015, law enforcement initiated a traffic stop on a rental car leased by Desrosiers. The defendant, the driver, and a passenger were ordered to exit the vehicle. Because the vehicle contained after-market tinted windows, and because the tinted windows violated the rental car contract, law enforcement initiated a tow of the vehicle to return it to the rental car company.
An inventory search of the car was conducted prior to it being towed. In the trunk of the car, law enforcement found a laptop computer owned by Desrosiers. A forensic analysis of the computer revealed 2,875 pieces of personal identifying information (PII), including names, dates of birth and social security numbers.
Law enforcement spoke with one individual whose name, date of birth, and social security number were in the computer, and confirmed that he/she did not authorize Desrosiers to be in possession of the PII. Desrosiers knew that the names, dates of birth, and social security numbers belonged to real persons.
Mr. Ferrer commended the investigative efforts of IRS-CI, DOL-OIG, and the NMBPD. The case is being prosecuted by Assistant U.S. Attorney Joshua S. Rothstein.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
North Carolina Man Sentenced to 14 Years in Federal Prison for Providing Silicone Buttocks Injections Resulting in the Death of a ClientRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Vinnie Lysander Taylor, a/k/a “T,” age 44, of Wilmington, North Carolina, Pennsylvania and Georgia, today to 14 years in federal prison, followed by three years of supervised release, for receiving and selling industrial grade silicone, but representing to customers that it was medical grade silicone. A client died as a result of receiving such injections.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Prince George’s County State’s Attorney Angela D. Alsobrooks; Special Agent in Charge Mark S. McCormack of the U.S. Food & Drug Administration, Office of Criminal Investigations’ Metro Washington Field Office; Chief Hank Stawinski of the Prince George’s County Police Department; and Chief J. Thomas Manger of the Montgomery County Police Department.
“FDA regulates medical devices to protect the public from potentially dangerous complications and side effects. Industrial-grade silicone that is injected into individuals’ bodies can cause serious bodily injury or death,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations’ Metro Washington Field Office. “FDA’s OCI will continue to work with our law enforcement partners to bring to justice those who offer such dangerous products to the public.”
Taylor admitted that from at least 2008 through December 16, 2014, he administered silicone injections into the buttocks of customers who wanted larger or fuller buttocks. Taylor, who was not a licensed medical practitioner, falsely represented to customers and victims to whom he administered liquid silicone injections that the procedure was safe and that he used medical grade silicone, when in fact the silicone was not medical grade silicone. Taylor administered the injections in hotel rooms in Prince George’s County, Maryland, St. Louis, Missouri, Arlington, Virginia, and elsewhere. Taylor charged between $800 and $1000 for the initial injections and between $350 and $800 for subsequent injections. When used in this fashion, liquid silicone is a medical device subject to regulation by the FDA.
In Maryland, between at least 2012 and December 2014, Taylor administered silicone injections to more than 10 individuals, representing to each victim that he used medical grade silicone and that it was safe. In fact, Taylor did not use medical grade silicone, but used polydimethylsiloxane, a common silicone product used in commercial applications such as foods, lubricating oils, sealants and shampoos.
On March 20, 2014, Taylor injected silicone into the buttocks of a victim. After the victim left the hotel she began having breathing difficulties. On March 22, 2014, the victim checked herself into the hospital and two days later, she died. An autopsy determined that the cause of death was acute and chronic respiratory failure due to a foreign substance causing a pulmonary embolization. The medical examiner ruled the manner of death to be a homicide. A clear viscous fluid removed from the victim’s buttocks during the autopsy was determined to be polydimethylsiloxane.
According his plea agreement, from approximately 2008 through December 2, 2014, Taylor purchased 152 gallons of food grade liquid silicone. Taylor stored the liquid silicone in plastic bottles that were not labeled nor approved by the FDA for that purpose. Therefore, the liquid silicone was adulterated and misbranded. The 152 gallons of silicone equates to 3,196 sessions. At $500 per treatment, Taylor’s mid-range fee, proceeds from the illegal injections total at least $1,598,000.
As part of his plea agreement, Taylor has agreed to plead guilty to a criminal information filed in Prince George’s County Circuit Court, admitting that his conduct resulted in the death of the victim in March 2014. In exchange, the Prince George’s County State’s Attorney’s Office dismissed first degree murder charges which were pending against Taylor.
Taylor remains detained.
United States Attorney Rod J. Rosenstein praised the FDA Office of Criminal Investigations’ Metro Washington Field Office, the Prince George’s County Police Department, Montgomery County Police Department, and the Prince George’s County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorney Deborah A. Johnston and William D. Moomau, who prosecuted the case.
Nebraska Resident Sentenced to Ten Years in Prison for Possession of Methamphetamine with Intent to Distribute and Possession of a Firearm by a Convicted FelonRead the Press Release
Council Bluffs, IA - On August 18, 2016, Tyler Jon Cross, a 25 year old resident of Lincoln, Nebraska, was sentenced by United States Senior District Court Judge Robert Pratt, to 120 months in prison for Possession of Methamphetamine with Intent to Distribute and Possession of a Firearm by a Felon announced United States Attorney Kevin E. VanderSchel. Judge Pratt also ordered Johnson to serve a term of 5 years of supervised release upon release from prison, and to pay a $100 special assessment.
The conviction resulted from an investigation conducted by the Iowa State Patrol which began on June 20, 2015 when Iowa State Patrol Troopers attempted to stop two motorcycles that were not displaying registration. A pursuit occurred along Interstate 80, with Cross operating his motorcycle in excess of 100 mph and driving into oncoming traffic. The pursuit ended after Cross left the interstate and traveled along two-lane roads in rural Pottawattamie and Shelby Counties, with Cross eventually losing control of his motorcycle leading to his arrest. In a backpack carried by Cross was discovered over one-half pound of methamphetamine and a loaded nine-millimeter handgun.
The case was investigated by the Iowa State Patrol, Shelby County Sheriff’s Office, Pottawattamie County Sheriff’s Office, and the Iowa Division of Narcotic Enforcement, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Mexican National Sentenced to 10 Years in Federal Prison for Trying to Smuggle 20 Pounds of Cociane into CanadaRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that that Hever Guzman Guerrero, a citizen of Mexico, age 28, was sentenced after having previously plead guilty to possession with the intent to distribute 5 kilograms or more of cocaine, a ten-year mandatory minimum federal offense. United States District Judge Rosanna Malouf Peterson sentenced Guzman Guerrero to a 10 year term of imprisonment, to be followed by a 5-year term of court supervision upon his deportation when released from federal prison, thereby prohibiting him from returning to the United States.
According to the information disclosed during court proceedings, Guzman Guerrero was under investigation by Homeland Security Investigations and Border Patrol in Wenatchee Washington for his involvement in cross-border drug smuggling activities. On September 2, 2015, he was caught near Oroville, Washington attempting to cross the U.S. / Canadian on foot. After hiding from law enforcement officers for over three hours in rugged terrain, Guzman Guerrero was located and in possession of a backpack containing over 20 pounds of cocaine. The approximate value of the drugs was well over $250,000. Although Guzman Guerrero was eligible for relief from the mandatory ten-year term of imprisonment, the Court found that he failed to be truthful with both the Court and law enforcement authorities and, therefore, the Court denied any such relief.
Michael C. Ormsby said, “This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF program provides supplemental federal funding to the federal and state agencies involved in the investigation of drug-related crimes. I commend the Homeland Security Investigation and Border Patrol agents in the Spokane and Seattle Divisions who diligently worked this OCDETF case. Protecting the integrity of the United States’ borders is of utmost importance to the United States Attorney’s Office in the Eastern District of Washington.”
The investigation was conducted by the Homeland Security Investigation and Border Patrol agents in the Spokane and Seattle Divisions. This case was prosecuted by Stephanie Van Marter, an Assistant U.S. Attorney for the Eastern District of Washington.
Mexican Man Pleads Guilty to Illegally Reentering the United States After Having Been Previously DeportedRead the Press Release
CONCORD, NEW HAMPSHIRE –United States Attorney Emily Gray Rice announced today that Angel Mata, of Mexico, has pleaded guilty to illegally reentering the United States after having been deported previously.
Mata pleaded guilty before United States District Court Judge Paul Barbadoro to an indictment that had been returned by a federal grand jury on June 15, 2016.
According to court filings and statements in Court, a Deportation Officer developed information indicating that Angel Mata, a Mexican national, was present in the United States after having been deported on two previous occasions. On June 15, 2016, Deportation Officers approached the defendant who confirmed that his name was Angel Mata and that he was illegally present in the United States without any immigration documents. His identity later was confirmed through fingerprint information.
Mata will be sentenced at 10:00 AM on November 28, 2016, and will be deported after serving his sentence.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement. Assistant U.S. Attorney Alfred Rubega is prosecuting this case.
###
Methamphetamine Conspirator Pleads GuiltyRead the Press Release
ABINGDON, VIRGINIA – Another member of the of a conspiracy that trafficked large quantities of methamphetamine from Atlanta to Southwest Virginia, pled guilty today in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr. announced.
Steven Roger Bryant, 42, pled guilty today in District Court to one count of conspiring to distribute methamphetamine.
“We will continue to devote as many resources as possible to slow the trend of methamphetamine trafficking into Southwest Virginia,” United States Attorney Fishwick said today. “Methamphetamine is a drug that destroys lives and communities and must be stopped.”
According to evidence presented at previous hearings by Assistant United States Attorney Zachary T. Lee, Bryant was part of a methamphetamine conspiracy that transported and distributed multiple pounds of crystal methamphetamine between Atlanta, Georgia, Northeast Tennessee and Southwest Virginia.
The investigation of the case was conducted by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bristol, Virginia Police Department, the Bristol, Tennessee Police Department, the Abingdon Police Department and the Washington County Sheriff’s Office. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Media Advisory: University of Northern Iowa Hosts Hate Crimes/Bias Incident ForumRead the Press Release
CEDAR RAPIDS, IA – The United States Attorney’s Office for the Northern District of Iowa is joining with the FBI, DOJ’s Community Relations Service, Black Hawk County Attorney and Sheriff’s Offices, Waterloo Police Department, Waterloo’s Human Rights Commission, and the Cedar Falls Police Department to host a forum designed to identify and address key issues related to hate crime reporting, investigation, prosecution and prevention. The forum is designed to build collaboration among key partners in an effort to prevent and respond to bias incidents and hate crimes.
U.S. Attorney Kevin W. Techau will be present and joined by Darryck Dean, a DOJ Conciliation Specialist with the Community Relations Service located in Kansas City. Mr. Dean was actively involved in community conciliation efforts following the incidents in Ferguson, Mo. A flyer announcing the forum is attached.
Event Details
When: Tuesday, August 23, 2016
Where: University of Northern Iowa – Center for Urban Education
800 Sycamore, Waterloo, Iowa 50703
Time: Starts at 6:00 p.m., ends at 8:00 p.m.
This is a “pen and pad” opportunity for the press. Photography permitted. A press release will be provided and interview opportunities will be available.
Follow us on Twitter @USAO_NDIA.
Manhattan U.S. Attorney Announces Another Arrest for May 2015 Gunpoint Robbery of Watch Store in Midtown ManhattanRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Charlie Patterson, the Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives (“ATF”), and William Bratton, the Police Commissioner of the City of New York (“NYPD”), announced the arrest of CHRISTOPHER MULLIGAN on charges of robbery conspiracy, robbery, and a firearms offense. MULLIGAN was arrested yesterday in Stockton, California, and will be presented later today in U.S. District Court for the Eastern District of California.
One other defendant, Omar Rawlins, was arrested on May 12, 2015, the day of the robbery, in connection with the same charges, contained in a Complaint. Rawlins’s case was assigned to the Honorable Kimba M. Wood, United States District Judge for the Southern District of New York, and he pled guilty to participating in a conspiracy to rob the Tourneau Watch Store. Rawlins’s sentencing remains pending.
Manhattan U.S. Attorney Preet Bharara said: “In broad daylight in Midtown Manhattan, Mulligan and his co-conspirators allegedly carried out a gunpoint robbery of a Madison Avenue watch store, stealing not just Rolex watches worth more than $700,000, but robbing New York City residents of their sense of security. Thanks to good old-fashioned police work by the ATF and the NYPD, Mulligan has joined his alleged co-conspirator Omar Rawlins in facing federal criminal charges.”
ATF Acting Special Agent in Charge Charlie Patterson said: “This arrest is the culmination of the diligent investigative work of the ATF Special Agents and NYPD Detectives assigned to the ATF SPARTA Task Force, which investigates armed commercial robberies throughout New York City. The arrest of Mr. Mulligan should serve as a warning to those out there engaged in these violent crimes that we will bring the full force of the federal justice system to bear against you. While it may seem that you can receive a quick payday by committing an armed robbery, the price you will pay is a lengthy prison sentence in a federal penitentiary. ATF would like to extend our gratitude to the NYPD and the United States Attorney’s Office for their continued partnership in combatting violent crime in New York City.”
NYPD Commissioner William J. Bratton said: “This violent crime at a Midtown watch store took 60 seconds to commit, but after being indicted and apprehended in California, the defendant’s time on the lam has run out and he’s facing decades in prison if convicted. I want to thank the investigators from the Southern District, the ATF and the NYPD who worked on this investigation and tracked the defendant to Pennsylvania and then cross-country.”
According to the allegations contained in the Indictment charging MULLIGAN, the Complaint[1] charging Rawlins, and other documents in the public record, and statements made in court:
On May 12, 2015, MULLIGAN, Rawlins, and a third individual committed a gunpoint robbery of the Tourneau Watch Store (“Tourneau”) in Midtown Manhattan. At the time of the robbery, all three men were dressed in suits and fedoras. After entering Tourneau, one of the men produced a gun and fired a round into the floor. The bullet fragmented, and a customer was hit with a bullet fragment, receiving a minor laceration. The two other robbers hit one of the glass display cases with hammers. The display case shattered, and the two robbers began removing watches from the display case. A Tourneau employee stuck his head out through a door behind the display case. The robber with the gun fired a shot in the direction of the employee, who was not hit. After approximately one minute, all three robbers exited Tourneau and began running. They were pursued by NYPD officers, who caught up to and arrested Rawlins. When Rawlins was arrested, he was carrying, among other things, five watches, a hammer, two pairs of gloves, a yellow hard hat, and a yellow safety vest. Surveillance footage captured some of MULLIGAN, Rawlins, and the third robber’s activities as they executed the robbery. In total, the crew obtained approximately 20 Rolex watches, worth approximately $730,000.
* * *
MULLIGAN, 22, of Brooklyn, is charged with one count of robbery conspiracy, which carries a maximum sentence of 20 years in prison; one count of robbery, which carries a maximum sentence of 20 years in prison; and one count of use of a firearm, which carries a maximum sentence of life in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Bharara praised the investigative work of the ATF and the NYPD, and in particular, the ATF Strategic Pattern Armed Robbery and Technical Apprehensions (“SPARTA”) Task Force. Mr. Bharara also thanked the United States Marshals Service and the United States Attorney’s Office for the Eastern District of California for their assistance in the arrest and apprehension of MULLIGAN.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Jessica Lonergan and Christopher J. Clore are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the texts of the Indictment and the Complaint and the descriptions of the Indictment and Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Male and Female Child Pornography Production Team Sentenced to a Total of 100 Years in Federal PrisonRead the Press Release
DENVER – Acting U.S. Attorney Bob Troyer and Acting FBI Special Agent in Charge Calvin Shivers announce that U.S. District Court Judge William J. Martinez sentenced Matthew Scott Holt, age 35, to serve 660 months (55 years) and sentenced his co-defendant Jordain Larsen, age 27, to 540 months (45 years). Both defendants were ordered to serve a term of supervised release for the remainder of their lives once released. Each defendant pleaded guilty to three counts of production of child pornography involving three minor victims.
Holt and Larsen were first charged in May of 2015. Larsen pled guilty to three counts of the production of child pornography on January 8, 2016. She was sentenced on April 20, 2016. Holt pled guilty to three counts of the production of child pornography on February 23, 2016, and was sentenced August 17, 2016.
According to court documents, Westminster Police Department executed a search warrant on a residence in Westminster, Colorado after an undercover officer with the Larimer County Sheriff's Office had downloaded an image of child pornography from the residence that showed a woman sexually abusing a very young child. In the days following, WPD found images and videos on Holt’s cell phone showing him sexual abusing a child under the age of two. WPD contacted the FBI. A search of computers seized at the residence revealed that Holt and Larsen produced a total of approximately 600 child pornography images and videos of three children to whom they had access. Two of the children were under the age of two and the third was under the age of nine. The images and videos show either Larsen or Holt molesting the children, or they display the children in a sexually explicit way. Eight of the videos were created when Larsen sexually abused one of the children via the online video platform Skype while video conferencing with Holt. Holt watched and recorded the sessions on his cell phone. Larsen and Holt created other sexually explicit images of the children and sent them to each other. They produced others when engaging in sexual activity with the children while together. Holt also sexually exploited one of the children while on Skype with another unidentified person. On one of Holt’s computer, FBI found approximately 20,000 images of child pornography and four different peer-to-peer trading software programs. FBI also found on Holt’s computer a peer-to-peer profile seeking a “pedo mom” with children between the ages of 2-10 who was willing to Skype.
The Holt and Larsen case was investigated by the Federal Bureau of Investigation (FBI), the Westminster Police Department, and the Larimer County Sheriff's Office.
The defendants were prosecuted by Assistant U.S. Attorney Judith Smith, Chief of the Special Prosecutions Section of the U.S. Attorney’s Office Criminal Division.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Long Island Man Pleads Guilty to Foreign Currency Fraud SchemeRead the Press Release
CENTRAL ISLIP, NY – Earlier today, Daniel Winston LaMarco pleaded guilty to a felony information charging him with wire fraud and commodities fraud causing losses of more than $862,000 to 13 investors. Today’s plea took place before United States Magistrate Judge Gary R. Brown at the United States Courthouse in Central Islip, New York. When sentenced, the defendant faces a maximum sentence of 30 years’ imprisonment.
Today’s guilty plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York.
“LaMarco misled investors regarding his investment performance on a monthly basis for years and encouraged them to invest their money in risky and volatile markets,” stated United States Attorney Capers. “The message of this prosecution is clear – if you defraud investors for personal gain you will be investigated and prosecuted to the full extent of the law.” Mr. Capers thanked the criminal investigators in the United States Attorney’s Office for their excellent work on this investigation.
Beginning in or about January 2011, LaMarco began to solicit investors to fund a commodity pool he ran which invested in the Foreign Exchange Market. LaMarco made false claims regarding his investment performance, and touted the safety of his investment strategy. Among his victims, LaMarco encouraged two individuals to invest proceeds from a home equity loan with him. As part of his fraud scheme, LaMarco sent false monthly statements to investors representing that their investments were growing, inducing new investments from the investors, and discouraging them from withdrawing their investments with him. The monthly statements claimed the investments had more than doubled in value and were worth as much as $1,796,126.22. In truth, LaMarco had lost almost all of the investors’ money, which totaled more than $862,000, in the Foreign Exchange Market.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Christopher A. Ott and Mark Bini are in charge of the prosecution.
This prosecution was the result of efforts by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, visit http://www.StopFraud.gov.
The Defendant:
DANIEL WINSTON LAMARCO
Age: 51
Huntington, New YorkE.D.N.Y. Docket No. 16-CR-433 (ADS)
Local Chemical Engineer Must Pay Approximately $4 Million in Restitution for Unlawfully Possessing Trade SecretsRead the Press Release
DALLAS — A Ph.D. chemical engineer from Sunnyvale, Texas, Dr. Mattias Tezock, 53, who admitted unlawfully possessing trade secrets from his former employer, Voltaix LLC, has been ordered by Chief U.S. District Judge Barbara M. G. Lynn to pay approximately $4 million in restitution to this former employer as part of the five-year term of probation that resulted from his pleas of guilty in this case. The trade secrets at issue concerned the manufacture, synthesis, and purification of germane gas, a specialty chemical used in the semiconductor and solar energy industries. Today’s announcement was made by U.S. Attorney John Parker of the Northern District of Texas.
In August 2015, Tezock pleaded guilty to four counts of unlawful possession of a trade secret. The facts supporting the guilty pleas established that from mid-April 2004 through September 2005, Tezock was employed as a chemical engineer at Voltaix, LLC, a multinational corporation headquartered in North Branch, New Jersey. Over approximately 25 years and at great expense, Voltaix developed a specific, industry-leading and exacting secret and confidential scientific method to make and purify germane gas to specifications required by its customers. Tezock further admitted that Voltaix took reasonable measure to keep this information secret and confidential and that Voltaix derived economic value from it not being known to, or readily ascertainable through proper means, by the public. As part of his employment at Voltaix, Tezock agreed to and signed non-compete and employee confidentiality forms that prohibited him from improper disclosures of Voltaix’s confidential, proprietary, and trade secret information.
Voltaix terminated Tezock’s employment in September 2005. Thereafter, Tezock moved to Texas where he established Metaloid Precursors, Inc., a company based in Terrell, Texas, that manufactured, produced, purified, and sold the specialty gas, germane. Almost immediately upon his termination from Voltaix, Tezock began taking steps to misappropriate Voltaix’s confidential, proprietary, and trade secret recipe and process for manufacturing and purifying germane gas and later attempting to steal business from Voltaix by actively soliciting at least one of Voltaix’s customers.
During subsequent civil litigation brought by Voltaix, Tezock took steps to hide his possession of trade secret information by deleting files or manipulating computer evidence in order to prevent Voltaix from learning the scope and magnitude of his breach. Tezock also provided false testimony under oath in a deposition during the civil litigation.
As part of the plea agreement resolving the criminal charges, Tezock agreed to take steps to terminate his business and destroy the germane processing plant. Among other things, immediately upon entering the guilty plea, Tezock immediately was required to cease and desist accepting, soliciting, receiving, or entering into new orders, soliciting business, or engaging in any manufacturing or refining work at Metaloid Precursors. Tezock further surrendered the keys to the Metaloid Precursors building and later worked to dismantle, destroy, and remove all hardware, chemicals, and equipment used in the manufacturing and synthesis of germane and related gases.
As part of his punishment, Chief Judge Lynn accepted the parties’ plea agreement which included a five-year term of probation with a prohibition that during the term of probation, Tezock was not permitted to work in any capacity with germane gas or other specialty chemicals. Tezock was further prohibited from disclosing to any person or entity in any manner any proprietary, confidential, or trade secret information of Voltaix.
The case was investigated by the FBI. Assistant U.S. Attorneys J. Nicholas Bunch and Paul Yanowitch prosecuted.
# # #
Lehigh Acres Convicted Felon Pleads Guilty to Gun and Drug CrimesRead the Press Release
Fort Myers, FL – United States Attorney A. Lee Bentley, III announces that James Thomas Bissell (32, Lehigh Acres) today pleaded guilty to possession with the intent to distribute cocaine, heroin, hydrocodone, marijuana, alprazolam and morphine, and possession of firearms as a convicted felon. The drug offenses are each punishable by a maximum penalty of 20 years in federal prison and the firearms offense is punishable by a maximum penalty of 10 years’ imprisonment.
According to the plea agreement, on October 23, 2015, Bissell sold cocaine and heroin to an undercover Lee County Sheriff’s detective at the defendant’s home in Lehigh Acres. On December 3, 2015, the Lee County Sheriff’s Office executed a search warrant at Bissell’s residence and recovered six types of controlled substances that he was holding for distribution, along with 34 firearms and cash. As a convicted felon, Bissell was prohibited from possessing the firearms, two of which had been previously reported stolen.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney David G. Lazarus.
Kansas Resident Sentenced to over Five Years in Prison for Transporting a Person with Intent to Engage in ProstitutionRead the Press Release
Council Bluffs, IA - On August 18, 2016, Jason Gregory Johnson, a 22-year old resident of Overland Park, Kansas, was sentenced by United States Senior District Court Judge Robert Pratt, to 63 months in prison for transporting a person with the intent to engage in prostitution announced United States Attorney Kevin E. VanderSchel. Judge Pratt also ordered Johnson to serve a term of 10 years of supervised release upon release from prison, and to pay a $100 special assessment.
The conviction resulted from an investigation that began on January 27, 2016, when the Omaha, Nebraska, Police Department was notified of a minor female being in the Omaha area committing acts of prostitution. On January 28, 2016, Omaha police along with the Federal Bureau of Investigation made contact with the female and learned that she had engaged in acts of prostitution in Kansas, Nebraska and Iowa. Johnson was identified as the person who was providing transportation to the minor between the three states in exchange for a portion of the profits earned by the minor.
The investigation was conducted by the Omaha Police Department, Council Bluffs Police Department and Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Indianapolis man found guilty in federal court on drug, firearm and money laundering chargesRead the Press Release
Indianapolis - United States Attorney Josh J. Minkler, announced today the guilty verdict of an Indianapolis man on six counts related to armed drug dealing and money laundering. Daniel L. Stewart 33, was found guilty after a five day jury trial before U.S. District Judge William T. Lawrence.
“Much of the violence in Indianapolis is the result of armed drug dealing,” said Minkler. “Those who commit crimes using firearms and illegally possess them will face the harshest penalties available in federal court.”
Indianapolis Metropolitan Police officers stopped Stewart for a traffic violation on the City’s Northside in January, 2015. As a result of that stop, officers recovered a loaded 9mm handgun as well as heroin, methamphetamine and cocaine. Officers obtained a search warrant for Stewart’s apartment near Eagle Creek and recovered a kilogram (over 2 pounds) of heroin, two kilograms of cocaine, five firearms and over $487,000 in cash. The money was bundled in $1,000 and $10,000 increments in various locations at the apartment.
Stewart is not legally permitted to carry a firearm because he has four prior felony convictions for drug crimes dating back to 2002.
“I applaud the efforts of the US Attorney’s Office and our detectives on the successful prosecution of Mr. Stewart,” said IMPD Chief Troy Riggs. “Arresting and prosecuting armed narcotics traffickers continues to be a priority to the Indianapolis Metropolitan Police Department. We will continue our efforts target violent offenders terrorizing our community.”
“IRS Criminal Investigation, along with our federal, state and local partners, will continue to investigate and prosecute Mr. Stewart and other offenders to keep the communities in which we live a safer place,” said IRS Criminal Investigation Special Agent in Charge James Robnett. “IRS CI has the financial investigators and expertise that is critical to locating and following the money which is a key component of the Stewart conviction and keeping violence off our streets.”
This case was investigated by Internal Revenue Service and Indianapolis Metropolitan Police Department.
According to Assistant United States Attorneys Michelle P. Brady and Peter Blackett, who prosecuted this case for the government, Stewart faces a mandatory minimum sentence of life without parole at sentencing.
Stewart remains in the custody of the US Marshal Service. No sentencing date has been set.
Greenville Man Pleads Guilty and Nine Others Sentenced in Access Device Fraud ConspiracyRead the Press Release
Contact Person: Jeanne Howard (864) 282-2100
Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Dalvin Michael Davenport, Jr., age 23, of Greenville, South Carolina, pled guilty yesterday in federal court in Anderson, to conspiracy to commit access device fraud and money laundering, violations of Title 18, United States Code, Section 1029 and 1956. United States District Judge Timothy M. Cain, of Anderson accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Davenport, along with other members of the conspiracy, recruited cashiers at various businesses to credit funds onto Green Dot, Visa and other prepaid cards without receiving payment. Immediately after obtaining the prepaid cards, members of the conspiracy activated and depleted the cards of the fraudulently loaded funds. In total, the conspiracy resulted in a loss of over $264,000.00, to several businesses in South Carolina and Georgia.
Other members of the conspiracy who previously entered guilty pleas and have been sentenced include the following: Vincenzo Mikkel Byers, age 26, of Greenville, South Carolina, sentenced to 36 months imprisonment; Cierra Andreous James, age 24, of Greenville, South Carolina, sentenced to 30 months imprisonment; Brandon Christopher Davis, age 26, of Simpsonville, South Carolina, sentenced to 30 months imprisonment; Tony Christopher Robinson, age 24, of Fountain Inn, South Carolina, sentenced to 18 months imprisonment; Davario Rashad Clinkscale, age 23, of Greenville, South Carolina, sentenced to 30 months imprisonment; Eric Ross Wilson, age 26, of Greenville, South Carolina, sentenced to 30 months imprisonment; Terrance Justin Davis, age 27, of Mauldin, South Carolina, sentenced to 21 months imprisonment; Quentin Nathaniel McClinton, age 25, of Greenville, South Carolina, sentenced to time served; and, Adam Isaiah Posley, age 21, of Greenville, South Carolina, sentenced to 3 years’ probation.
The case was investigated by agents of the FBI Upstate Gang Task Force and the U. S. Treasury Department, IRS Criminal Investigation Division. Assistant United States Attorney Jeanne Howard of the Greenville office handled the case.
#####
Georgia Real Estate Investor Pleads Guilty to Bid Rigging at Public Home Foreclosure AuctionsRead the Press Release
A Georgia real estate investor pleaded guilty today for his role in bid-rigging and bank fraud conspiracies in connection with public real estate foreclosure auctions in Georgia, the Justice Department announced today.
Otto Gogolin admitted that he agreed not to bid against other real estate investors at certain public real estate foreclosure auctions in an effort to subvert the competitive process. Additionally, according to court documents, Gogolin and his co-conspirators defrauded banks that owned the mortgage notes. Gogolin admitted to participating in the conspiracy in Forsyth County, Georgia, from July 2008 to December 2011.
According to court documents filed in this case in the U.S. District Court for the Northern District of Georgia, the conspirators artificially suppressed the prices of properties sold at certain public real estate foreclosure auctions by agreeing not to outbid one another and then made and received payoffs to each other. Among other methods, the conspirators allegedly held secret “second auctions” of properties they had obtained through rigged bids and then divided the auction proceeds 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.
Including the charges filed against Gogolin, 23 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, 21 of whom have either pleaded guilty or agreed to plead guilty. In addition to the cases filed in Georgia, the Antitrust Division has recently filed similar cases in Alabama, North Carolina and California. More than 100 defendants in total have been indicted or have pleaded guilty for rigging foreclosure auctions and lining their own pockets at the expense of banks and homeowners going through foreclosures.
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 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.
Gogolin Information
Former Navy Employee and Defense Contractor Plead Guilty to Engaging in Kickback SchemeRead the Press Release
NEWS RELEASE SUMMARY – August 19, 2016
Assistant U.S. Attorneys Rebecca S. Kanter (619-546-7304) and Andrew Galvin (619-546-9721)
SAN DIEGO – A former Navy Facilities Engineering Command (“NAVFAC”) civilian employee and a defense contractor pleaded guilty yesterday to charges relating to their conspiracy to defraud the Navy by filing false claims related to government contracts. Bentley faces a maximum sentence of ten years in prison, while Cioe faces a maximum of five years.
Joseph Bentley, who was previously a civilian employee at NAVFAC Southwest, supervised crews that did roofing, welding, paving, fencing and other types of construction repair, and maintenance work for the Navy and U.S. Marine Corps. As part of his job duties, he was responsible for requesting and/or authorizing the purchase of materials, supplies and labor from local suppliers and contractors. One of the individuals he arranged for the Navy to contract with was Eugene Cioe, the owner of Alcem Fencing Company, which operated out of National City, California until May 2013, and the owner of Cioe Fencing Consultant and Material Sales after May 2013.
As detailed in Cioe’s plea agreement, Bentley and Cioe agreed that Bentley would recommend, authorize or otherwise arrange for Defendant to receive orders for purchases from the Navy in exchange for Cioe providing Bentley with a kickback – money in payment for codefendant Bentley’s assistance in directing business to Defendant. For example, as Cioe admitted to Magistrate Judge Jan Adler in court today, in June 2011, Bentley arranged for Alcem to receive over $7,000 for a job on Building 322 on Naval Base San Diego (“NBSD”) through a Napa Auto Parts purchase in exchange for a $1,500 payment to codefendant Bentley from Defendant’s company. After billing the Navy and receiving $7,151.64 in government funds for materials for Building 322 on NBSD, Cioe paid Bentley $1,500. In February 2013, codefendant Bentley arranged for Alcem to receive another job with the Navy in exchange for an illegal payment from Defendant to codefendant Bentley, specifically, Alcem cashier’s check number 664152 on February 12, 2013 for $5,000.
Both defendants admitted that the conduct continued into the following year, when Cioe presented false claims to the United States Navy for core-drilling work that was in fact performed by NAVFAC employees. Specifically, between May 14 and June 4, 2014, Bentley arranged for Cioe to receive two orders for material, labor and equipment to drill 48 holes and set fencing posts at the Naval Base Coronado (“NBC”). Cioe then invoiced the Navy $4,764 for the core-drilling project, and was paid by the Navy for the work. Both defendants admitted in court today that they knew that in truth, neither Cioe nor anyone working for Cioe Material Sales actually performed the work reflected on the invoices in exchange for the $4,764 in total payments; in fact, the work was performed by NAVFAC employees.
In addition to the false claims admitted to by both defendants, Bentley further admitted to using the Navy to purchase $3,545 in roofing materials, falsely claiming that they were for a roofing project on Building 618 on NBC, which Bentley then stole to install on his personal residence in Imperial Beach. Then, after Bentley became aware of the government’s investigation, he asked a co-conspirator who had installed the roof to give the investigators false information about the roofing order. Specifically, he told his co-conspirator to falsely tell the investigating agents that his (Bentley’s) father was still alive when the roof was installed and asked the co-conspirator to backdate a receipt for the demolition of the old roof by approximately six months. Both of these lies would have had the effect of creating false evidence that the roof was actually installed long before the ABC order for the NBC project, thus, providing Bentley a possible defense to the charge that the roofing materials on his father’s house were the same materials paid for by the Navy in January 2013.
U.S. Attorney Laura Duffy commented, “Our office will continue to prosecute government insiders and military contractors who abuse and corrupt the procurement process to line their own pockets. This case is an excellent example of the continued success our federal law enforcement agencies have had in rooting out corruption through their cooperative joint investigations.”
FBI Special Agent in Charge Eric S. Birnbaum stated, “The FBI will continue to work with our law enforcement partners to root out corrupt individuals who use their government positions and associations with the government for personal gain.”
The FBI encourages the public to report allegations of public corruption to the FBI public corruption hotline at telephone number (877) NO-BRIBE (662-7423).”
Bentley and Cioe will be sentenced by United States District Judge Jeffrey T. Miller on December 2, 2016 at 9:00 a.m.
DEFENDANTS
Case Number: 15CR0195-JM
Joseph H. Bentley
Age: 55
Imperial Beach, California
Eugene Cioe
Age: 59
El Cajon, California
CHARGES
Bentley: Counts 3 & 4: False, Fictitious and Fraudulent Claims (18 U.S.C. § 287). Count 5: Theft of Public Property (18 U.S.C. § 641)
Cioe: Count 1: Conspiracy to Make False, Fictitious and Fraudulent Claims (18 U.S.C. § 371).
MAXIMUM PENALTIES
False, Fictitious and Fraudulent Claims (18 U.S.C. § 287) – maximum 5 years’ prison, $250,000 fine, $100 mandatory special assessment, 3 years’ supervised release
Conspiracy to Make False, Fictitious and Fraudulent Claims (18 U.S.C. § 371) – maximum 5 years’ prison, $250,000 fine, $100 mandatory special assessment, 3 years’ supervised release
Theft of Public Property (18 U.S.C. § 641) – maximum 10 years’ prison, $250,000 fine, $100 mandatory special assessment, 3 years’ supervised release
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Federal Bureau of Investigation
Internal Revenue Service, Criminal Investigations
Naval Criminal Investigative Service
Former Manager of Louisville Medical Office Sentenced to 20 Months in Prison for Health Care Fraud and Identity TheftRead the Press Release
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr. today announced the sentencing of a former medical office manager to 20 months in prison, on Wednesday, August 19, 2016, by Senior District Judge Thomas B. Russell, for committing health care fraud and aggravated identity theft.Kelly Lenning, age 45, of Jefferson County, Kentucky, pleaded guilty to all charges in a six count federal indictment, on March 28, 2016. Lenning admitted to scheming to defraud a health care benefit program, in connection with the delivery of and payment for health care benefits, items, and services, and three counts of aggravated identity theft in relation to the health care fraud offenses.
Specifically, from May of 2013 through August of 2013, while manager of Injury Rehab Specialists of Lou., PLLC a medical practice that treated motor-vehicle-accident patients, Lenning unlawfully used former employees’ (nurse practitioners) DEA numbers to order controlled substance prescriptions, namely Hydrocodone, and directed two individuals to fill the Hydrocodone prescriptions.
The individuals provided the filled Hydrocodone prescriptions to Lenning, for her own personal use, while she knew the individuals used Humana insurance, to pay for the unlawful prescriptions.
Additionally, during the same time period, Lenning admits to using the identification of another person, namely the DEA numbers of two nurse practitioners, without lawful authority. Lenning admitted that she did not have the authority or permission of the nurse practitioners to use their DEA numbers to order narcotics.
This case is being prosecuted by Assistant United States Attorneys Joseph Ansari and Lettricea Jefferson-Webb and was investigated by the Federal Bureau of Investigation (FBI) and Louisville Metro Police Department.
Former Louisville Business Owner Charged with Failure to File Income Tax Returns and Tax EvasionRead the Press Release
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr. today announced the indictment this week, of former Louisville business owner Lawrence P. Tatem, for willful failure to file federal income tax returns during a four-year period and evasion of payment of taxes, penalties, and assessments totaling $533,498 from a two-year period.
According to the indictment, Tatem, 50, willfully attempted to evade and defeat the payment of a large part of the federal income tax, penalties, and interest due by him to the United States of America, for the calendar years 2002 through 2004, totaling approximately $533,498, by concealing his assets; by changing the names and locations of his rehabilitation businesses; by placing his businesses in the names of nominees J.S., D.R., and M.Z.; by closing bank accounts at Republic Bank after the Internal Revenue Service attempted to levy funds from the accounts, and opening new bank accounts at Chase Bank under different names; and by operating in cash without keeping proper records of cash transactions.
Further, Tatem is charged with willful failure to file federal income tax returns for calendar years 2010 to 2013. Specifically, during the calendar year 2010, Tatem received gross income of approximately $252,860 and failed to file a federal tax return by April 15, 2011. During calendar year 2011, Tatem received gross income of approximately $45,353 and failed to file a federal tax return by April 15, 2012. During calendar year 2012, Tatem received gross income of approximately $199,067 and failed to file a federal income tax return by April 15, 2013. During the calendar year 2013, Tatem received gross income of approximately $120,994 and failed to file a federal income tax return by April 15, 2014.
If convicted at trial, Tatem could be sentenced to no more than nine years in prison, fined up to $225,000, and serve up to three years of supervised release.
This case is being prosecuted by Assistant United States Attorney Amanda Gregory and is being investigated by the Internal Revenue Service Criminal Investigation Division. tatem_lawerence_charged_8-18-16.pdf
***
The charge of a person by Federal Indictment is an accusation only and that person is presumed innocent until and unless proven guilty
Former Licensed Physician Pleads Guilty to Defrauding Medicare of More Than $1 MillionRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that John Peter Christensen (64, West Palm Beach) has pleaded guilty to conspiracy to commit healthcare fraud. He faces a maximum penalty of five years in federal prison. A sentencing date has been set for November 21, 2016.
According to the plea agreement, Christensen was a licensed medical doctor in the State of Florida who practiced medicine in Palm Beach County and elsewhere in Florida. Christensen was also an enrolled Medicare provider and had a provider identification number that allowed him to submit reimbursement claims to Medicare for services that he provided to Medicare eligible patients. At some point between 2006 and 2011, Christensen authorized a chiropractor who operated a clinic in Volusia County, Florida, to use his name and Medicare provider number to submit false and fraudulent reimbursement claims to Medicare. As a result, Christensen caused over $1 million in loss to the Medicare program. Christensen used some of this fraudulently obtained money for personal expenditures, including an investment in a company and a payment towards the purchase of a Mercedes Benz vehicle.
This case was investigated by the Federal Bureau of Investigation, the Food and Drug Administration, Office of Criminal Investigations, and the U.S. Department of Health and Human Services - Office of the Inspector General. It is being prosecuted by Assistant United States Attorneys Andrew C. Searle and Shawn P. Napier.
Former Letter Carrier Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that George Steven Gray, 27, of Daphne, Alabama, was sentenced in federal court on August 18, 2016, for discarding mail he was supposed to deliver. Court documents reflect that batches of undelivered and unopened mail were recovered from a dumpster and a recycling bin in Fairhope during late November and early December of 2015. An investigation conducted by the United States Postal Service Office of Inspector General revealed that Gray, a letter carrier delivering mail in the Fairhope area, had discarded undelivered mail on two occasions during that time frame. The discarded mail was recovered and delivered.
Gray pled guilty to one count of discarding mail in March of 2016. United States District Court Judge William H. Steele pronounced the sentence, ordering the Gray serve a probationary term of two years. Gray will pay a $100 special mandatory assessment but no fine was imposed.
The case was investigated by the United States Postal Service Office of Inspector General. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Former Fresno Business CFO Found Guilty of Embezzlement and Money LaunderingRead the Press Release
FRESNO, Calif. — After a four-day trial, a federal jury found Anthony Lester, 52, of Fresno, guilty today of two counts of mail fraud and five counts of money laundering in connection with his embezzlement of $300,000 from a Fresno business, Acting U.S. Attorney Phillip A. Talbert announced.
According to evidence at trial, between August 2010 and January 2012, Lester embezzled and stole money from his former employer. While an employee at Century Builders and Highlands Energy Services (the Companies) he held supervising positions in the accounting department, including Chief Financial Officer. In those capacities, Lester had responsibilities regarding management of the Companies’ finances and financial transactions and had access to and control over some of the Companies’ checking accounts and credit cards. Lester used this access to defraud the Companies.
According to court documents, Lester transferred money from one of the Companies’ checking accounts into what purported to be the Companies’ PayPal account. Then he transferred the money to one of his own personal PayPal accounts. Additionally, he transferred money from two of the Companies’ credit cards to his personal PayPal account. Thereafter, he attempted launder the proceeds of his fraudulent scheme and conceal his embezzlement by transferring money from his personal PayPal account to his personal bank accounts. None of these transactions were authorized by the Companies, and none were for legitimate business purposes of the Companies. In total, Lester embezzled approximately $300,000 from his former employer.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Fresno Police Department. Assistant United States Attorneys Patrick R. Delahunty and Patrick J. Suter are prosecuting the case.
“Financial crimes like this don’t just line the pockets of ethically challenged businessmen, they also pose a threat to the continuing growth and vitality of our economy,” said Acting U.S. Attorney Talbert. “We are particularly grateful for the tenacious work of our law enforcement partners in Homeland Security Investigations and the Fresno Police Department in cutting through the defendant’s elaborate efforts to conceal this complex white collar fraud.”
“The greed of lawbreakers like this can negatively impact many people and cause local businesses to suffer unrecoverable losses of money, jobs and more,” said Ryan L. Spradlin, special agent in charge of HSI San Francisco. “HSI will continue to work closely with our law enforcement partners in targeting these devious criminals.”
Lester is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on November 14, 2016. Lester faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for mail fraud and a maximum penalty of 20 years in prison and a $500,000 fine for money laundering (or twice the value of the property involved, whichever is greater). The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former El Dorado Hills Man Sentenced for Scheme that Misappropriated Millions of Dollars of Workers’ Compensation FundsRead the Press Release
SACRAMENTO, Calif. — Gregory J. Chmielewski, 46, of West Bend, Wisconsin, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to three years and five months in prison for mail fraud in connection with his misappropriation of funds from his insurance business into his own personal accounts for his personal use, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, between September 2003 and September 2007, Chmielewski defrauded his clients and their employees in a workers’ compensation coverage scheme. During this time period, Chmielewski set up a professional employer organization called Independent Management Resources (IMR), later operating under the name Management Resources Group (MRG), which he operated from Healdsburg until relocating to Roseville in 2006.
He solicited an Indian tribe to partner with him to provide employee insurance coverage and other employee services at a reduced cost. Chmielewski marketed the insurance coverage to California employers as a low-cost alternative to workers’ compensation coverage, and he claimed that it was modeled after the California workers’ compensation statutes except that claims were made and adjudicated under the Tribe’s sovereign system. Because of the low rates, Chmielewski was successful in obtaining employers as clients.
Chmielewski diverted and misappropriated millions of dollars from MRG accounts for his personal use. He caused over $7.3 million to be paid out of MRG’s accounts to other unrelated companies that he controlled. Eventually, the company experienced serious cash flow problems and was forced to cease operations, leaving approximately 117 injured workers with approximately $1.8 million in unpaid claims.
Acting U.S. Attorney Talbert stated: “Many of the victims harmed in this scheme were companies in California’s construction industry, whose employees worked as roofers, general laborers, and other jobs where injuries can occur. The defendant’s actions left many injured workers without the benefits they expected and deserved. Our office is committed to prosecuting large-scale schemes such as this that hurt employers and workers alike.”
“While Chmielewski lined his pockets with the money he stole from California employers, he left injured workers without the workers’ compensation benefits and medical treatment they needed and deserved,” said Insurance Commissioner Dave Jones. “Thanks to the hard work of our investigators at the Department of Insurance and our law enforcement partners in the U.S. Attorney’s Office, Chmielewski’s crimes were exposed, and he has been brought to justice.”
“The license to operate a business is not a license to steal from those whom you are hired to protect,” said Cindy S. Chen, Acting Special Agent in Charge, IRS Criminal Investigation. “The misconduct of Chmielewski harmed those that needed his help during a time they were very vulnerable. Today’s sentence demonstrates IRS Criminal Investigation’s determination to combat financial fraud in all types of schemes.”
San Francisco Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated, “Postal Inspectors worked closely with the U.S. Attorney’s Office and our partners in law enforcement on this investigation and will continue to vigorously protect the public against complex fraud schemes and the criminal misuse of the U.S. Mail.”
This case was the product of an investigation by the United States Postal Inspection Service; the Internal Revenue Service, Criminal Investigation; and the California Department of Insurance. Assistant U.S. Attorneys Heiko P. Coppola and André Espinosa prosecuted the case.
Former Belleville Resident Pleads Guilty to Receipt of Child Pornography and Possession of Prepubescent Child PornographyRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that Eric M. Swancutt, 38, formerly of Belleville, IL, pled guilty to a three-count Superseding Indictment charging him with two counts of Receipt of Child Pornography (Counts 1 and 2) and one count of Possession of Prepubescent Child Pornography (Count 3). On Counts 1 and 2, Swancutt faces a term of imprisonment of not less than five (5) but not more than twenty (20) years, a fine up to $250,000, and a term of supervised release of five (5) years to life. On Count 3, Swancutt faces a term of imprisonment of not more than twenty (20) years, a fine up to $250,000, and a term of supervised release of five (5) years to life. Swancutt has been detained since his arraignment on June 24, 2016. His sentencing date is January 27, 2017, in East St. Louis, Illinois.
A forensic review of a laptop computer seized from Swancutt’s residence discovered images and/or video files of child pornography, many of which were of prepubescent children. Swancutt provided a voluntary statement in which he admitted accessing and viewing child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation
and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case was investigated by the Belleville Police Department and the FBI’s Springfield Child Exploitation Task Force. The case is assigned to Assistant United States Attorney Angela Scott.
Five Indiana/Kentucky/Ohio Regional Council of Carpenters Union Members ChargedRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David A. Capp, announced that five members of the Indiana/Kentucky/Ohio Regional Council of Carpenters were each charged by Information with one count of health care theft.
According to the documents filed in this case, members of the Indiana/Kentucky/Ohio Regional Council of Carpenters illegally gained assets from the Indiana/Kentucky/Ohio Regional Council of Carpenters Welfare Fund, a union health care benefit program. The defendants requested reimbursement of medical expenses by submitting to the carpenter’s welfare fund a fraudulent claim form and a copy of an un-negotiated personal check for reimbursement. These documents gave the appearance that the defendants had paid a reimbursable health care expense. Claims were processed from the union welfare fund reimbursing the defendants for these health care expenses that were never actually incurred. Those who have been charged are as follows:
-
Bradley Crostreet, 45, of Valparaiso, Indiana amount reimbursed $10,310.83
-
Dennis Gardner, 52, of LaPorte, Indiana amount reimbursed $15,000
-
Robert Gutierrez, 38, of Hammond, Indiana amount reimbursed $19,771
-
Aaron Vaughan, 35, of Lake Station, Indiana amount reimbursed $13,000
-
Joshua Westfall, 38, of LaPorte, Indiana amount reimbursed $ 6,380
This case was investigated by the United States Department of Labor, Office of the Inspector General and the Employee Benefits Security Administration. As the investigation continues, we hope to charge others and issue a future press release. This case was handled by Assistant United States Attorney Gary T. Bell.
The United States Attorney's Office emphasized that an Information is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines. # # #
-
Federal, State Settlement with Haverhill will Address Pollution of Merrimack RiverRead the Press Release
BOSTON – The City of Haverhill entered into a Consent Decree today with federal and state enforcement authorities agreeing to pay a $125,000 civil penalty and to take critical remedial measures to address pollution the City discharged into the Merrimack and Little Rivers.
The Consent Decree is the result of an enforcement action brought by the U.S. Department of Justice, on behalf of the U.S. Environmental Protection Agency (EPA), and the Massachusetts Attorney General’s Office, on behalf of the Massachusetts Department of Environmental Protection (MassDEP). The complaints filed simultaneously with the Consent Decree allege that Haverhill discharged pollutants into its storm water drainage system in violation of its permits and failed to properly operate and maintain its sewer system and treatment plant.
“By entering into this Consent Decree, Haverhill will take the steps necessary to prevent pollutants from entering the Merrimack River and its tributaries,” said United States Attorney Carmen M. Ortiz. “Haverhill is required to eliminate the flow of pollutants which will result in cleaner discharges and a healthier environmental for all.”
“We are pleased that, through this settlement, steps will be taken to better protect to the Merrimack and Little Rivers,” said Massachusetts Attorney General Maura Healey. “We will continue to work together at all levels of government to protect our natural resources and our residents.”
“This settlement ensures that Haverhill will continue the important work to eliminate unauthorized discharges of pollutants to the Merrimack River. This is a necessary step toward opening this valuable resource to more recreational use by people who live in the area,” said Curt Spalding, Regional Administrator of EPA’s New England office.
“The commitments made in this consent decree will result in significant water quality improvements in the Merrimack River watershed,” said MassDEP Commissioner Martin Suuberg. “Massachusetts is committed to improving water quality and will continue to work with cities and towns on this important issue.”
The complaints allege that from as early as 2008, Haverhill discharged pollutants from its combined sewer system on 190 occasions during dry and wet weather. The City continues to discharge untreated storm water containing sewage and other pollutants from its storm water and its combined sewer systems into these waters.
The Consent Decree requires the City to undertake a comprehensive inspection of its outfalls during the dry and wet weather and submit a report to the EPA of its combined sewer system and storm water outfalls. It requires the City to continue with electronic monitoring of its combined sewer outfalls for a one year, as well as to maintain electronic monitoring permanently on some of the more problematic outfalls. When pollutants are found, the City must eliminate the flows conveying the pollutants. In addition, the City must take action to control runoff from land redevelopment projects.
The Consent Decree also assesses a $125,000 civil penalty against the City for its Clean Water Act violations. Haverhill is subject to vigorous reporting requirements to ensure compliance with the terms of the Consent Decree. If it fails to comply, it may be subject to additional penalties as high as $2,500 per each day of violation.
Preventing pollutants from contaminating surface waters of the United States is one of the EPA’s National Enforcement Initiatives. Municipal wastewater presents significant health threats to those using contaminated waters for recreational use.
The Consent Decree is subject to a 30-day public comment period and approval by the federal court. Once it is published in the Federal Register, a copy of the Consent Decree will be available on the Justice Department website at http://www.justice.gov/enrd/Consent_Decrees.html.
U.S. Attorney Ortiz, Attorney General Healey, EPA Regional Administrator Spalding, and Department of Environmental Protection Commissioner Suuberg, made the announcement today. The case is being handled by Assistant U.S. Attorney Susan M. Poswistilo of Ortiz’s Civil Division and Assistant Attorney General Andrew Goldberg of Healey’s Environmental Protection Division.
Federal Law Enforcement Leaders to Hold Community Open House August 23 at Old Town PavilionRead the Press Release
POCATELLO – U.S. Marshal Brian Underwood and U.S. Attorney Wendy Olson will hold a community open house meeting Tuesday, August 23, at the Old Town Pavilion in Pocatello. Underwood and Olson will be at the Old Town Pavilion, 420 N. Main, from 5 – 6 p.m. to meet and visit with persons interested in learning more about federal law enforcement in Idaho.
“We will be available for any question, concern or issue community members would like to talk about,” said Olson. “Frankly, we simply want members of the public, whom we serve, to have a chance to personally visit with their federal law enforcement leaders in Idaho. We recognize that it is not always practical for people to come to our offices.”
“Confidence in government and the enforcement of law is achieved by providing true justice and being sincere in our working relationships with all people,” said Underwood. “In Idaho, the work of our local law enforcement is really amazing to see – and we are proud to work with such great professionals and police leadership. Like our local law enforcement partners, we want to ensure that we are doing our part in community policing and relationship building.”
Underwood and Olson were both appointed to their positions in 2010 by the President. They serve the entire state of Idaho, which is a single federal judicial district. Underwood and Olson also are both graduates of Pocatello High School.
Federal Court Orders Florida Tax Return Preparer to Stop Preparing Federal Tax Returns for OthersRead the Press Release
Return Preparer Allegedly Claimed Fraudulent Education and Fuel Credits
Today a federal court in Miami, Florida, permanently enjoined Rose M. Chazulle and her company, RMC Professional Services Corporation, from preparing federal tax returns for others. The defendants agreed to the civil injunction orders entered against them. In addition to barring the defendants from preparing, filing, or assisting in the preparation or filing of federal tax returns and amended returns, the court ordered the defendants to deliver a copy of the injunction to all of their customers since Jan. 1, 2010.
According to the complaint, the defendants prepared federal income tax returns for customers that falsely claimed:
- Refundable credits, including American Opportunity Tax Credit and Lifetime Learning Credit for customers who did not incur educational costs and otherwise did not qualify for these credits;
- Fuel tax credits for customers who had no businesses of any kind, even though the credit can only be taken when fuel is used for certain business purposes or to operate a school bus;
- Fabricated business losses, claimed on Schedule C, Profit or Loss from Business, even though the customers did not have a business; and
- Wages described as household help income in order to falsely claim an Earned Income Tax Credit or to create a larger refund than the customer otherwise would have been able to claim.
Return preparer fraud is one of the Internal Revenue Service’s (IRS) 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.
Ex-Auburn, Georgia, Police Officer Pleads Guilty to Extortion and Drug Trafficking ChargesRead the Press Release
ATLANTA - Charles F. Hubbard has pleaded guilty to extortion and drug trafficking conspiracy charges. The defendant was an officer with the Auburn, Georgia, Police Department who used his law enforcement position and his patrol car to intercept and steal drugs and money.
“Hubbard assisted drug traffickers for his own financial gain,” said U. S. Attorney John Horn. “He used his position as a police officer to perpetrate his scheme while betraying his community and the honest law enforcement officers who serve honorably every day.”
“It is deeply disappointing when an officer betrays his oath.” said Jack Killorin, Director of the Atlanta-Carolinas High Intensity Drug Trafficking Area. “What should be heartening to the community is that a task force of Federal, State and local police responded by upholding theirs.”
According to U.S. Attorney Horn, the charges and other information presented in court: Hubbard, while an officer with the Auburn Police Department, conspired with at least five other people to steal money and transport drugs. For example, in January 2015, one of Hubbard’s conspirators ordered six kilograms of cocaine. Hubbard used his Auburn police vehicle to intercept the drugs. Afterward, federal court authorized wiretaps exposed Hubbard agreeing to conduct a traffic stop on an individual carrying drugs in exchange for a $5,000 payment.
Then, on April 4, 2016, wearing clothing identifying himself as a police officer, and using his official police vehicle, Hubbard seized the confidential source's money. Hubbard provided the confidential source with a receipt purporting to be from the “East Metro Drug Task Force,” a non-existent entity, so that the seizure would look official. Hubbard then released the confidential source and met with two conspirators to split the money. Hubbard was taken into custody and, upon searching his vehicle, law enforcement officers found additional unused blank property sheets in the name of the non-existent East Metro Task Force that Hubbard had manufactured.
Sentencing for Charles F. Hubbard, 51, of Loganville, Georgia, is scheduled for November 7, 2016, before U.S. District Judge Leigh Martin May.
This case is being investigated by the Drug Enforcement Administration, the Atlanta-Carolinas HIDTA, and the Georgia State Patrol.
Assistant United States Attorneys Elizabeth M. Hathaway and Vivek Kothari are prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Enforcer for Atlantic City “Dirty Block” Gang Sentenced to Life in Prison for Role in Heroin Trafficking ConspiracyRead the Press Release
CAMDEN, N.J. – An Atlantic City, New Jersey, man who was an enforcer and street level dealer for a gang that used threats, intimidation and violence to maintain control of the illegal drug trade in Atlantic City was sentenced today to life in prison, U.S. Attorney Paul J. Fishman announced.
Malik Derry, a/k/a “Lik,” 25, was previously convicted of conspiracy to distribute one kilogram or more of heroin, possessing and discharging firearms in furtherance of the conspiracy and using a communications device in furtherance of a drug trafficking crime. He was convicted after a six-week trial before U.S. District Judge Noel L. Hillman, who imposed the sentence today in Camden federal court.
According to documents filed in this case and the evidence presented at trial:
Malik Derry was an enforcer and a street level seller for “Dirty Block,” a/k/a “Crime Fam,” “3.6.6.12,” or “3.6,”, which was led by his brother Mykal Derry, a/k/a “Koose,” 36, of Atlantic City. The gang used force, gun violence and intimidation to control the lucrative drug trafficking area of the Stanley Holmes public housing complex, Brown’s Park and the surrounding area.
The evidence at trial showed that Malik Derry, Mykal Derry, enforcer Shaamel Spencer, 32, of Atlantic City, and other members of the gang routinely carried loaded handguns and engaged in at least eight drug related shootings between October 2010 and February 2013, including the shooting of a teenager on April 17, 2011, which left the teenager paralyzed.
Additional testimony established that Mykal Derry and Malik Derry planned and carried out the shooting murder of a rival drug dealer in Atlantic City on the evening of Feb. 10, 2013. Mykal Derry told members of his gang that he wanted them to “put him down” (referring to an order to shoot the rival dealer) when they saw him. Malik Derry shot the victim in the head from close range while riding a bicycle past him as the victim stood in front of an Atlantic City restaurant.
The murder weapon, a stolen .380 caliber semi-automatic handgun, was later recovered from the drop ceiling in an apartment located on Green Street in Atlantic City, which, at the time, was shared by Mykal Derry and his girlfriend, Kimberly Spellman, 34, of Egg Harbor Township, New Jersey. Atlantic City police detectives also found 18 “bricks” of heroin (approximately 900 individual packets of heroin) and drug packaging materials inside the apartment.
The evidence presented by the government at trial consisted of recordings of hundreds of telephone calls and text messages between Mykal Derry, Malik Derry, and over 19 other members of the gang, physical evidence including the recovery of twenty firearms, ballistics evidence from shooting scenes, crime scene evidence from eight different shooting scenes in Atlantic City, recovery of substantial quantities of heroin and drug packaging materials, approximately $40,000 in drug proceeds, the testimony of dozens of FBI agents and Atlantic City police detectives, ballistics experts, a narcotics expert, and two cooperating witnesses who had previously pleaded guilty to federal drug trafficking offenses.
In addition to the prison term, Judge Hillman sentenced Malik Derry to serve a term of 10 years of supervised release.
Mykal Derry was sentenced on Jan. 7, 2016 to life in prison. He was previously convicted at trial of conspiracy to distribute one kilogram or more of heroin, distributing heroin, maintaining a place for the purposes of storing and distributing heroin, possessing, brandishing and discharging firearms in furtherance of the drug conspiracy and using a communications device in furtherance of a drug trafficking crime.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher; the Atlantic County Prosecutor’s Office, under the direction of Acting Prosecutor Diane M. Ruberton; the Atlantic City Police Department, under the direction of Chief Henry White; and the South Jersey Safe Streets Violent Incident and Gang (Safe Streets) Task Force, with the investigation leading to today’s sentencing.
He also thanked the N.J. State Police; the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Northfield Police Department; the Vineland Police Department; the Brigantine Police Department; and the Millville Police Department.
The government is represented by Assistant U.S. Attorneys Patrick Askin and Justin Danilewitz of the U.S. Attorney’s Office in Camden and Special Assistant U.S. Attorney Edmund Mallqui-Burgos of the Atlantic County Prosecutor’s Office.
Defense counsel: Joshua Markowitz Esq., Lawrenceville, New Jersey.