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17 August 2016
River Ridge Man Pleads Guilty to Child Pornography ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CRAIG QUINTAL, age 41, of River Ridge, pled guilty today to crimes involving the sexual exploitation of children.
According to court records, beginning at an unknown time to on or about July 15, 2015, QUINTAL knowingly accessed child pornography with the intent to view images depicting the sexual victimization of minors. QUINTAL accessed visual depictions of minors under the age of twelve years-old engaging in sexually explicit conduct.
Sentencing by U.S. District Judge Ivan L.R. Lemelle is scheduled for November 16, 2016. QUINTAL faces a penalty of up to twenty years imprisonment, followed by up to a lifetime term of supervised release, and a $250,000.00 fine.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
U.S. Attorney Polite praised the work of the U. S. Department of Homeland Security, Homeland Security Investigations and the Louisiana Attorney General’s Office, High Tech Crime Unit in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U. S. Attorney Brian M. Klebba.
Redmond Regional Medical Center Agrees to Resolve Alleged Violations of the Americans with Disabilities ActRead the Press Release
ATLANTA - The U.S. Attorney’s Office for the Northern District of Georgia has reached a settlement agreement with Redmond Regional Medical Center (Redmond), a health care provider located in Rome, Georgia, to resolve an investigation into allegations that it violated Title III of the Americans with Disabilities Act (ADA) by failing to ensure effective communication with individuals who are deaf and hard of hearing.
“Medical providers have an obligation under the ADA to provide effective communication to the deaf or hard of hearing,” said U.S. Attorney John Horn. “Failure to provide effective communication could create a terrifying experience for the patient and compromised medical care.”
The U.S. Attorney’s Office initiated an investigation after receiving complaints alleging that Redmond failed to provide appropriate auxiliary aids and services when necessary to ensure effective communication. The complainants, who are all deaf or hard of hearing and rely on American Sign Language as their primary means of communication, were either patients or the primary caregivers of patients at Redmond. Two of the complainants are a deaf mother and daughter who went to the Redmond ER when the daughter developed a rash on her leg. They allege she was treated without effective communication and then discharged. Two days later, they returned to the Redmond ER after her symptoms worsened. The daughter was diagnosed with a staph infection and had to undergo a surgical procedure with a four-day stay at the hospital. During this procedure and stay, they allege that they requested but were denied interpretive services. The third complainant is a deaf woman who made three separate visits to the Redmond ER, and alleged that on each visit she requested, but was denied interpretive services.
Under the settlement agreement, Redmond agreed to ensure effective communication to patients who are deaf or hard of hearing. Among other things, Redmond has agreed to provide mandatory in-service training to all its personnel and provide reports to the United States Attorney’s Office regarding its compliance with the settlement agreement. The training will address the needs of deaf or hard-of-hearing patients and companions. Redmond also agreed to pay $50,000 to the complainants.
The ADA prohibits discrimination against individuals with disabilities by health care professionals. Under the ADA, health care providers are required to provide effective communication to individuals who are deaf or hard of hearing. When complex, lengthy communication is involved, the ADA generally requires health care professionals to provide qualified sign language interpreters for the person who is deaf or hard of hearing.
This agreement is part of the Department of Justice’s Barrier-Free Health Care Initiative, which is a partnership of the Civil Rights Division and U.S. Attorneys’ offices across the nation, to target enforcement efforts on a critical area for individuals with disabilities. The initiative, launched on the 22nd anniversary of the ADA in July 2012, includes the participation of more than 40 U.S. Attorneys’ offices, including the U.S. Attorney’s Office for the Northern District of Georgia. Information about the initiative can be found at www.ada.gov/usao-agreements.htm.
Assistant United States Attorney Emily Shingler and Assistant United States Attorney Aileen Bell Hughes are representing the United States in this matter.
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 home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Pittsburgh Man Sentenced to 10 Years in Prison for Possessing Stolen FirearmRead the Press Release
PITTSBURGH - A Pittsburgh resident has been sentenced in federal court to 120 months imprisonment, followed by three years supervised release, on his conviction of Possession of a Stolen Firearm, United States Attorney David J. Hickton announced today.
United States District Judge Gustave Diamond imposed the sentence on Michael Giles, age 38, of Pittsburgh, Pennsylvania.
According to information presented to the Court, on or about Nov. 29, 2013, Giles was found to be in possession of a stolen 9 millimeter pistol. Federal law prohibits an individual from possessing a stolen firearm.
Assistant United States Attorney Cindy K. Chung prosecuted this case on behalf of the government.
U.S. Attorney David Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Police Department for conducting the investigation that led to the successful prosecution of Michael Giles.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crimes.
Phoenix Man Sentenced to 60 months Incarceration on Cocaine ChargesRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on August 15, 2016, Koleh B. Wilson (age: 37) of Phoenix, Arizona, (formerly of Milwaukee and Sheboygan Counties) appeared in federal court in Green Bay and was sentenced to 60 months in federal prison for his involvement in a conspiracy to distribute cocaine in Manitowoc County.
In pronouncing sentence, Chief United States District Court Judge William C. Griesbach noted the serious nature of Wilson’s crime and its ramifications for the Manitowoc community. The judge condemned Wilson’s prior record which included convictions in state court for possession of illegal narcotics. He concluded that Wilson was deserving of a substantial prison sentence. Following his release from prison, Wilson will serve 8 years on federal supervised release.
The case was investigated by the United States Drug Enforcement Administration, the Manitowoc County Sheriff’s Office, the Manitowoc Area MEG Unit, with assistance from the United States Marshal’s Service. The case was prosecuted by Assistant United States Attorney Daniel R. Humble.
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Ohio inmate sentenced to federal prison for running multi-state drug distribution network from inside prisonRead the Press Release
The leader of a multi-state conspiracy that distributed heroin, cocaine and methamphetamine while he was an inmate inside an Ohio prison was sentenced to more than six years in prison, law enforcement officials said.
Fernando Auces, 52, was sentenced to 78 months in prison by U.S. District Judge James Gwin.
Auces, while an inmate at Allen Correctional Institute in Lima, Ohio, controlled a multi-state drug operation by communicating through a contraband cell phone with others outside the prison to arrange the delivery and sale of heroin, cocaine and methamphetamine, according to court documents.
Between 2010 and 2014, Auces and others arranged for deliveries of large amounts of heroin to Ohio from suppliers in Indiana and Texas. Auces recruited friends and relatives to receive and distribute the heroin, cocaine and methamphetamine to Cleveland, Toledo and elsewhere, according to court documents.
Auces, as part of the conspiracy, agreed with an inmate at the Southern Ohio Correctional Facility in Lucasville, Ohio, to share customers and drug suppliers. Auces arranged for Alexander Gonzales to distribute drugs to various locations throughout Ohio, including Cleveland, Akron/Canton, Dayton and Cincinnati, according to court documents.
“This defendant added more time onto his sentence, and the drug ring he ran from prison has been disrupted,” said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
“Refuge from law enforcement can't be found behind a prison wall,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office. “The Northern Ohio Law Enforcement Task Force will continue to bring to justice drug dealers that distribute pois0n to our streets, no matter where they reside."
“Our collective enforcement efforts in this investigation have effectively shut down an operation that allegedly funneled copious amounts of illegal drugs into the community," Marlon Miller, Special Agent in Charge of HSI Detroit, which covers Michigan and Ohio. "This sentence is the culmination of an extensive multi-agency approach to combating drug trafficking organizations."
This case is being prosecuted by Assistant U.S. Attorneys Vasile C. Katsaros and Christian H. Stickan following an investigation by the Northern Ohio Law Enforcement Task Force. The NOLETF is a task force comprised of investigators from the Federal Bureau of Investigation, Cleveland Division of Police, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Cuyahoga County Sheriff’s Office, Ohio Bureau of Criminal Investigation and the police departments of Cleveland Heights, Euclid, Lakewood, the Regional Transit Authority, Westlake and Shaker Heights. The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area initiatives, which supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug trafficking in Ohio.
Ohio Credit Union President Sentenced to Prison for EmbezzlementRead the Press Release
PITTSBURGH - Charles Robert Poore has been sentenced in federal court to 24 months imprisonment, followed by five years supervised release, on his conviction of embezzlement by an officer of a credit institution. Poore was also ordered to pay $251,438.08 in restitution, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentence on Charles Robert Poore, age 46, of Pittsburgh, Pa.
According to information presented to the court, from September 2011 continuing to July 2014, Poore, while serving as President of Toledo Metro Federal Credit Union (hereinafter “TMFCU”), willfully misapplied, embezzled, abstracted, and purloined the sum of approximately $233,933.02. This case was transferred to the Western District of Pennsylvania from the Northern District of Ohio. The defendant formerly resided in the Northern District of Ohio and the crime was commissioned there.
Assistant United States Attorney Cindy K. Chung prosecuted this case on behalf of the government.
U.S. Attorney David Hickton commended the Federal Bureau of Investigation for conducting the investigation that led to the successful prosecution of Charles Robert Poore.
Northern California Restaurant Owner Pleads Guilty to Obstructing the Internal Revenue Laws and Harboring Illegal Aliens for ProfitRead the Press Release
A Ukiah, California, restaurateur pleaded guilty today before U.S. District Judge Edward M. Chen for the Northern District of California to corruptly endeavoring to obstruct the due administration of the internal revenue laws and to harboring illegal aliens for profit, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, U.S. Attorney Brian J. Stretch of the Northern District of California, Special Agent in Charge Ryan Spradlin of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Special Agent in Charge Michael T. Batdorf of the Internal Revenue Service’s Criminal Investigation (IRS-CI).
Yaowapha Ritdet, 56, admitted that she knowingly hired Thai nationals who were illegally present in the United States to work at her restaurants, Ruen Tong Thai Cuisine and Walter Café, both located in Ukiah.
Ritdet further admitted that she underpaid employees and instructed them not to speak to anyone about their immigration status. Ritdet also admitted that she willfully filed false individual income tax returns for tax years 2007 through 2011, failing to disclose gross receipts, sales and income received from her two restaurants, as well as rental income and a foreign bank account and failed to accurately report employment taxes owed for her restaurant employees, who were paid in cash.
Ritdet is scheduled to be sentenced on Feb. 22, 2017.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Brian J. Stretch commended special agents of IRS-CI and HSI, who investigated the case; the U.S. Department of Labor, Wage and Hour Division, which identified the underpayment of wages and overtime; and Trial Attorney Charles A. O’Reilly of the Tax Division and Assistant U.S. Attorney Jose A. Olivera, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Northern California Restaurant Owner Pleads Guilty to Obstructing the Internal Revenue Laws and Harboring Illegal Aliens for ProfitRead the Press Release
WASHINGTON – A Ukiah restaurateur pleaded guilty today to corruptly endeavoring to obstruct the due administration of the internal revenue laws and to harboring illegal aliens for profit, announced U.S. Attorney Brian J. Stretch, Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, Special Agent in Charge Ryan Spradlin of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and Special Agent in Charge Michael T. Batdorf of the Internal Revenue Service’s Criminal Investigation (IRS-CI).
Yaowapha Ritdet, 54, admitted that she knowingly hired Thai nationals who were illegally present in the United States to work at her restaurants, Ruen Tong Thai Cuisine and Walter Café, both located in Ukiah. Ritdet further admitted that she underpaid employees and instructed them not to speak to anyone about their immigration status. Ritdet also admitted that she willfully filed false individual income tax returns for tax years 2007 through 2011, failing to disclose gross receipts, sales and income received from their two restaurants, as well as rental income and a foreign bank account and failed to accurately report employment taxes owed for her restaurant employees, who were paid in cash.The guilty plea was accepted by U.S. District Judge Edward M. Chen. The maximum statutory penalty for a violation of 26 U.S.C. § 7212 is three years’ imprisonment and $250,000 or twice the gross gain or loss resulting from the criminal activity. The maximum statutory penalty for a violation of 8 U. S. C. § 1324(a)(1) is 10 years’ imprisonment and $250,000, or twice the gain or loss resulting from the criminal activity. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Ritdet is scheduled to be sentenced by Judge Chen on Feb. 22, 2017.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Brian J. Stretch commended special agents of IRS-CI and HSI, who investigated the case; the U.S. Department of Labor, Wage and Hour Division, which identified the underpayment of wages and overtime; and Trial Attorney Charles A. O’Reilly of the Tax Division and Assistant U.S. Attorney Jose A. Olivera, who are prosecuting the case.New Orleans Man Sentenced in Heroin ConspiracyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KENNETH MIXON, age 33, of New Orleans, was sentenced today after having previously pled guilty to one count of conspiring to distribute heroin. According to court documents, between July 2014 and July 2015, MIXON conspired with co-defendants LEROY SMITH and JAMIE JONES to distribute heroin in the New Orleans area. SMITH and JONES have both pled guilty and are awaiting sentencing on November 2, 2016 and September 2, 2016, respectively.
U.S. District Judge Ivan L.R. Lemelle sentenced MIXON to 34 months of incarceration, to be followed by 3 years of supervised release.
U.S. Attorney Polite praised the work of Drug Enforcement Administration, United States Customs and Border Protection, United States Postal Service, Louisiana State Police, New Orleans Police Department, Jefferson Parish Sheriff Office, St. Bernard Parish Sheriff Office, St. Charles Parish Sheriff Office, and Kenner Police Department in investigating this matter. Assistant United States Attorneys Brandon S. Long and Nicholas D. Moses were in charge of the prosecution.
New Orleans Man Pleads Guilty to BP FraudRead the Press Release
The U.S. Attorney’s Office for the Eastern District of Louisiana announced that GRAEGG L. HOLMES, age 43, of New Orleans, pled guilty today to a one-count Indictment charging him with wire fraud related to the 2010 British Petroleum Oil Spill. According to court documents, HOLMES admitted that he filed a fraudulent application for relief relating to the April 20, 2010 explosion and fire, which occurred on the Deepwater Horizon, an oil rig in the Gulf of Mexico where BP had been drilling a well. In reality, HOLMES admitted that he worked at Abide Home Care from approximately 2001 through 2014. HOLMES used false documentation related to a non-existent catering business that he claimed lost money because of the Deepwater Horizon Disaster. The loss from the fraudulent claims HOLMES submitted and received totals $33,900.
On August 4, 2016, HOLMES was ordered detained pending trial by U.S. Magistrate Judge Janis van Meerveld after his arrest for home invasion in Orleans Parish. Following his guilty plea, HOLMES remains detained and faces a possible maximum sentence of ten years, three years of supervised release, a fine of $250,000 or twice the gross gain or loss caused by the offense, forfeiture, and restitution to the GCCF. U.S. District Judge Sarah S. Vance set sentencing for December 14, 2016.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
The U.S. Attorney’s Office praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorneys Patrice Harris Sullivan and Hayden Brockett were in charge of the prosecution.
Miami Woman Used Counterfeit Credit Cards at Western Pennsylvania Outlet MallsRead the Press Release
PITTSBURGH - A resident of the state of Florida has pleaded guilty in federal court to a charge of conspiracy, United States Attorney David J. Hickton announced today.
Jeisy Camejo-Escandell, 30, of Miami, Fla., pleaded guilty yesterday to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that Camejo-Escandell and her conspirator Gean Carlos Del Valle-Barquin arrived in Pittsburgh on June 25, 2015, for the purpose of using counterfeit credit cards to make purchases of merchandise at the outlet stores in Washington and Grove City on June 26, 2015.
The Judge scheduled sentencing for Dec. 6, 2016. The law provides for a maximum total sentence of not more than 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Western Pennsylvania Financial Crimes Task Force (WPFCTF) conducted the investigation that led to the successful prosecution of Del Valle Barquin and Camejo Escandell. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security/Homeland Security Investigations, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Mexican National Pleads Guilty to Selling False Social Security CardsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that VIDAL OROSCO-BARRIOS, age 29, pled guilty today to a four-count Indictment charging him with transferring false Social Security Cards in violation of Title 18, United States Code, Section 1028(a)(2).
According court records, OROSCO-BARRIOS sold counterfeit Social Security Cards to confidential informants working with the Department of Homeland Security on four separate occasions.
OROSCO-BARRIOS faces a maximum term of imprisonment of fifteen years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment. U.S. District Judge Martin L.C. Feldman set sentencing on
U.S. Attorney Polite praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Massachusetts Man Indicted on Child Exploitation ChargesRead the Press Release
ALBANY, NEW YORK – David Rancourt, age 56, of Palmer, Massachusetts, was indicted today for attempting to coerce and entice a minor into sexual activity, after he posted an online advertisement soliciting sexual encounters and travelled to Colonie, New York, to meet what he believed to be a 14-year-old boy in order to engage in sexual activities. Rancourt is also charged with having distributed, received, and possessed child pornography.
The announcement was made by U.S. Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.
On April 9, 2016, Rancourt was charged by complaint with attempted coercion and enticement of a minor. He was detained on that charge and has remained in custody ever ince.
If convicted, he faces at least 10 years and up to life in prison on the attempted coercion and enticement charge, and at least 5 years and up to 20 years in prison on the charges of receipt and distribution of child pornography. He also faces a term of post-imprisonment supervised release of at least 5 years and up to life, a fine of up to $250,000, and mandatory registration as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
This case is being investigated by the Federal Bureau of Investigation and the Colonie Police Department, and is being prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/
Managing Director of Investment Bank Found Guilty of Insider Trading ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that SEAN STEWART, a former Managing Director at an investment advisory firm headquartered in Manhattan, was found guilty of providing inside information to trade and cause another to trade in the securities of five different health care companies, the acquisitions of which were announced between 2011 and 2014. He was convicted after trial before U.S. District Judge Laura Taylor Swain.
Manhattan U.S. Attorney Preet Bharara said: “Another insider trading defendant stands convicted after trial by jury. Time and time again, Sean Stewart took his clients’ most sensitive corporate secrets and fed them to his father on a silver platter for quick and illegal profits. Insider trading rigs the securities markets in favor of cheaters, and we will continue to investigate and prosecute this crime aggressively.”
According to the allegations contained in the Indictment as well as the evidence presented during trial:
In early 2011, SEAN STEWART, who at the time held the position of Vice President in the Healthcare Investment Banking Group of a global bank headquartered in Manhattan (“Investment Bank A”), began tipping his father, Robert Stewart, with material nonpublic information about upcoming mergers and acquisitions, including with the names of the companies that were acquisition targets, both when the target was an Investment Bank A client and when the bank represented the acquirer, as well as with information that indicated the likely timing of an upcoming deal.
The first of these deals involved the acquisition of Kendle International Inc. by INC Research, LLC, which was announced publicly on May 4, 2011. SEAN STEWART worked on the deal, representing Kendle. Robert Stewart made about $7,900 in profits on purchases of Kendle stock executed in February and March of 2011. When questioned by the Securities and Exchange Commission about his Kendle trades in May 2013, Robert Stewart reported that he used the proceeds of those trades to pay expenses related to SEAN STEWART’s June 2011 wedding.
The second deal about which SEAN STEWART tipped Robert Stewart was the acquisition of Kinetic Concepts, Inc. (“KCI”) by Apax Partners, announced on July 13, 2011. Although Robert Stewart purchased some stock in KCI based on SEAN STEWART’s tip, he sold that stock before the acquisition was announced, around the same time that SEAN STEWART learned the Financial Industry Regulatory Authority (“FINRA”) was conducting an inquiry into Robert Stewart’s Kendle trading.
Also around this time, in the spring of 2011, Robert Stewart expressed a concern to co-conspirator Richard Cunniffe that Robert Stewart was “too close to the source” to be trading in KCI stock his own account, and asked Cunniffe to make purchases of KCI call options for Robert Stewart in Cunniffe’s brokerage account. Cunniffe agreed to do so, and also mirrored for his own benefit the KCI trades that Robert Stewart was directing.
In connection with the FINRA inquiry, FINRA prepared a list of persons and entities that had traded in advance of the Kendle deal. The list included Robert Stewart’s name. When Investment Bank-A asked SEAN STEWART whether he knew anyone on the list, he initially denied recognizing the name of his father; later, when confronted by lawyers from Investment Bank-A, SEAN STEWART acknowledged that his father was on the list but told a series of lies designed to make it seem as if Robert Stewart had independently decided to invest in Kendle. SEAN STEWART told these lies one day after meeting with his father to apprise his father of the FINRA inquiry and to get their stories straight.
When the KCI/Apax Partners deal was announced, Robert Stewart and Cunniffe reaped profits totaling approximately $107,790. At around this time, Robert Stewart told Cunniffe that the source of the KCI tip and the earlier Kendle tip had been Robert’s son. Later, around the spring of 2012, Robert Stewart clarified for Cunniffe that the son in question was SEAN STEWART, who worked on the “sell side” on Wall Street.
In October 2011, SEAN STEWART left Investment Bank A. A few months later, he joined an investment banking advisory firm headquartered in Manhattan (“Investment Bank B”) as a Managing Director.
During SEAN STEWART’s tenure with Investment Bank B, based on tips concerning nonpublic acquisition-related information supplied by SEAN STEWART, Robert Stewart had Cunniffe conduct options trading in advance of the public announcements of three more deals: (1) the acquisition of Gen-Probe Inc. by Hologic, Inc., announced on April 30, 2012; (2) the acquisition, by tender offer, of Lincare Holdings Inc. by Linde AG, announced on July 1, 2012; and (3) the acquisition of CareFusion Corp. by Becton, Dickinson & Co. (“Becton”), announced on October 5, 2014. Investment Bank B represented Hologic in connection with its acquisition of Gen-Probe; Linde in connection with its acquisition of Lincare; and CareFusion in connection with its acquisition by Becton. The profits that Robert Stewart and Cunniffe reaped from illegal insider trading in advance of the announcements of these three deals totaled over $1 million.
During the course of the scheme, SEAN STEWART because aware that his father was having financial problems. Rather than loan his father money, SEAN STEWART gave his father stock tips, the proceeds of which Robert Stewart used to benefit himself and his son.
In March and April of 2015, Cunniffe, who was then cooperating with the Government, recorded meetings he had with Robert Stewart. During one such meeting, Robert Stewart accepted a payment of $2,500 cash from Cunniffe, which was the balance of the proceeds owed to Robert Stewart for profitable trading executed in Cunniffe’s account in advance of the CareFusion acquisition announcement. Also during this meeting, Robert Stewart admitted that SEAN STEWART once chastised him for failing to make use of a tip, saying, “I can’t believe I handed you this on a silver platter and you didn’t invest in it.”
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SEAN STEWART, 35, of New York, New York, was convicted of one count of conspiracy to commit securities fraud and fraud in connection with a tender offer, one count of conspiracy to commit wire fraud, six counts of securities fraud, and one count of fraud in connection with a tender offer. The securities fraud, tender offer fraud, and wire fraud conspiracy charges each carries a maximum prison term of 20 years. The charge of conspiracy to commit securities fraud and tender offer fraud carries a maximum prison term of five years. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Robert Stewart pled guilty on August 12, 2015, to one count of conspiracy to commit securities fraud and fraud in connection with a tender offer and was sentenced to four years’ probation, with the first year to be served in home detention, and $150,000 in forfeiture.
Richard Cunniffe pled guilty on May 12, 2015, to one count of conspiracy to commit securities fraud and fraud in connection with a tender offer, one count of conspiracy to commit wire fraud, three counts of securities fraud, and one count of fraud in connection with a tender offer.
Mr. Bharara praised the investigative work of the FBI and also thanked the Securities and Exchange Commission.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Sarah E. McCallum and Brooke E. Cucinella are in charge of the prosecution.
Loomis Man Sentenced to 10 Months in Prison for Submitting Fraudulent Tax ReturnsRead the Press Release
SACRAMENTO, Calif. — Slavic Khudoy, 37, of Loomis, was sentenced today by U.S. District Court Judge Kimberly J. Mueller to 10 months in prison for a fraudulent tax refund scheme, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, between 2010 and 2012, Khudoy and Clint D. Bonderer, 38, of Stockton, submitted income tax returns to the IRS for others that contained false information about the taxpayers’ income, filing status, and address, and fraudulently claimed credits that the taxpayers were not entitled to receive. Bonderer and Khudoy submitted 842 fraudulent tax returns, requesting more than $600,000 in refunds in the names of other people. In most cases, they kept the refunds for themselves. Khudoy pleaded guilty on April 13, 2016.
On March 10, 2016, Bonderer was sentenced to three years in prison for conspiring to submit false claims.
This case was the product of an investigation by the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorney Matthew G. Morris prosecuted the case.
Leominster Restaurant Owner Sentenced for Restaurant ArsonRead the Press Release
BOSTON – The owner of the West End Diner in Leominster was sentenced today in U.S. District Court in Worcester in connection with setting fire to his restaurant in order to collect the insurance proceeds.
Jeffrey Cordio, 51, of Leominster, Mass. was sentenced by U.S. District Court Judge Timothy S. Hillman to four years in prison and three years of supervised release. In March 2016, Cordio pleaded guilty to an Information charging him with one count of conspiracy to use fire to commit mail fraud.
In January 2006, Cordio and his wife purchased the West End Diner at 270 West Street in Leominster. Due to significant financial distress and a desire to relocate to Florida, Cordio and an accomplice set fire to the diner and fled the scene during the afternoon of Nov. 13, 2013. The Leominster Fire Department responded to the alarm and was able to largely contain the blaze to the basement of the building. The following day, Cordio initiated an insurance claim with Norfolk & Dedham Mutual Fire Insurance Company; however, the claim was ultimately denied after investigators determined that the fire was intentionally set.
Cordio’s accomplice previously pleaded guilty in state court to accessory before the fact.
United States Attorney Carmen M. Ortiz; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Leominster Police Chief Michael Goldman, made the announcement today. The Massachusetts State Police Fire and Explosive Investigation Section, the Leominster Fire Department and the Worcester County District Attorney’s Office also assisted with the investigation. The case was prosecuted by Assistant U.S. Attorney Greg A. Friedholm of Ortiz’s Worcester Branch Office.
Leader of Cheko’s Crew/7th Street Gang Sentenced on Rico Charge for His Role in Four Murders and Seven Attempted MurdersRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Buffalo, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Efrain Hildalgo, AKA Cheko, 30, of Buffalo, NY, who was convicted of Racketeering Influenced Corrupt Organizations (RICO) conspiracy and discharging a firearm in furtherance of a violent crime, was sentenced to 330 months in prison by U.S. District Judge Richard J. Arcara.
“This case serves as a textbook example of how federal resources can remove entire gangs from a community,” said U.S. Attorney Hochul. “At the same time, this prosecution shows that once criminals are removed from our streets, a community can heal and thrive. Both the public – and any remaining criminals – can rest assured that we will not rest until all violent predators are brought to justice.”
Assistant U.S. Attorney Joseph M. Tripi, who handled the case, stated that the defendant was a member of the Cheko’s Crew/7th Street Gang which was responsible for multiple acts of violence and the distribution of illegal narcotics on the West Side of Buffalo between 2000 and 2012. The narcotics included heroin, crack cocaine, cocaine, and marijuana.
The defendant admitted his role in the murders of four people including:
• November 11, 2004 murder of Nelson and Miguel Camacho in their Niagara Street residence. Josue Ortiz served 10 years in state prison for these murders. His conviction was vacated by an Erie County Court judge based on the findings of this federal investigation.
• August 11, 2009 murder of 10th St. Gang associate Eric Morrow.
• June 5, 2010 murder of Virgil Page on 19th Street.Hildalgo also participated in seven attempted murders including rival gang members Desmond Ford, Darnell McIntosh, Edwin Rivera and Saul Santana.
A total of 18 defendants have been charged and convicted in this case.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen, the New York State Police, under the direction of Major Steven Nigrelli, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid.
Lawrence Elementary Teacher Assistant Indicted for Opioid DistributionRead the Press Release
BOSTON – A 4th grade classroom assistant at a Lawrence public school was indicted today in connection with an undercover operation involving the distribution of kilogram-quantities of cocaine and thousands of oxycodone pills.
Reynaldo Sanchez, 26, of Lawrence, was indicted on attempted possession with intent to distribute oxycodone and possession with intent to distribute cocaine. In March 2016, Sanchez was arrested and charged in a criminal complaint.
According to court documents, in August 2015, federal agents began investigating Sanchez for his involvement in a narcotics and money laundering organization operating in the Boston area. During the investigation, Sanchez arranged to purchase from undercover federal agents 10 – 15 kilograms of cocaine for a price of $33,000 per kilogram. The complaint further alleges that between March 29, 2016, and March 31, 2016, Sanchez sought to purchase what he believed were 11,000 oxycodone pills for $13 per pill from an undercover agent posing as a drug courier. At the time of his arrest, Sanchez was carrying a duffle bag containing $48,000. After executing a search warrant at Sanchez’s residence, agents recovered approximately 2.6 kilograms of cocaine.
The charge of attempted possession with intent to distribute oxycodone provides for a sentence of no greater than 20 years in prison, a lifetime of supervised release and a fine of $1 million. The charge of possession with intent to distribute cocaine provides for a sentence of no greater than 40 years in prison, a lifetime of supervised release and a fine of $5 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations, Boston Field Office; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. Assistance was also provided by the Middlesex County District Attorney’s Office, Massachusetts Bay Transportation Authority Police and the Lawrence, Franklin, Wareham and Dartmouth Police Departments. The case is being prosecuted by Assistant U.S. Attorney Carlos A. López of Ortiz’s Narcotics and Money Laundering Unit.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Laplace Man Sentenced for Conspiracy to Commit Wire Fraud in Aftermath of BP Oil SpillRead the Press Release
The U.S. Attorney’s Office for the Eastern District of Louisiana announced that MICHEGEL BUTLER, age 41, a resident of LaPlace, Louisiana, was sentenced today after previously pleading guilty to a conspiracy to defraud the Gulf Coast Claims Facility (“GCCF”) in the aftermath of the BP oil spill.
U.S. District Judge Sarah S. Vance sentenced BUTLER to 12 months and one day incarceration and ordered restitution in the amount of $65,300, to be paid jointly and severally with his co-defendant.
According to court documents, beginning in or about September 2010, BUTLER and his co-defendant, recruited claimants, requested their personal information and submitted or caused to be submitted fraudulent GCCF claim forms generated online and transmitted to the GCCF. The claim forms falsely stated that the claimants worked as non-owner captain/deckhands on a shrimp boat in Venice, Louisiana and suffered economic loss. Based on the fraudulent documentation, the GCCF issued approximately $65,300 to undeserving individuals. BUTLER and his co-defendant shared in the claims proceeds.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (“NCDF”), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected], or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
The U.S. Attorney’s Office praised the work of the U.S. Postal Inspection Service and the U.S. Secret Service in investigating this matter. Assistant U.S. Attorney Julia K. Evans was in charge of this prosecution.
Lake Charles prisoner pleads guilty to escaping from custody after not reporting to halfway houseRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced that a Lake Charles man in federal prison custody pleaded guilty last week to federal escape charges after failing to report to a halfway house according to terms of home confinement.
Shaun Daigle, 37, of Lake Charles, pleaded guilty Friday before U.S. Magistrate Judge Kathleen Kay to one count of escape from extended custody. The plea will become final when accepted by U.S. District Judge Patricia Minaldi. According to the guilty plea, Daigle was serving a period of home confinement in Lake Charles after being released by the Forrest City Federal Correction Institution in Arkansas. As part of the terms of his home confinement, he was required to report to the halfway house any time they requested. He was also required to remain in home confinement as ordered by the Bureau of Prisons. On May 7, 2016, Daigle was ordered to return to the CINC II Halfway House in Lake Charles and did not show up. He was found on May 8, 2016 in Westlake, La., and was arrested.
Daigle faces up to five years in prison, three years of supervised release and a $250,000 fine. A sentencing date of November 10, 2016 was set.
The U.S. Marshals Service, U.S. Bureau of Prisons and the Westlake Police Department investigated the case. Assistant U.S. Attorney John Luke Walker is prosecuting the case.
Kenner Tax Preparer Sentenced for Lying on Tax Returns and Failing to Declare More Than $300,000 in IncomeRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CHRISTIE ROBINSON, 41, of Laplace, who previously pled guilty to a four-count Indictment charging her with false statements on tax returns.
U.S. District Judge Ivan L.R. Lemelle sentenced ROBINSON to five years’ probation and ordered to pay restitution of $104,481to the Internal Revenue Service.
According to court documents, ROBINSON, is the owner and operator of a tax return preparation business in Kenner called CRR Services, LLC. ROBINSON received fees charged for the preparation of individuals' tax returns. ROBINSON failed to include all of the substantial fees she received for income tax return preparation. In 2007, she declared $80,000 in fees and failed to disclose $195,000; in 2009, she disclosed $100,000 but failed to include an extra $28,000; in 2010, she declared $76,500 but failed to declare $82,000; and, in 2011 she declared $175,000 but excluded $8,000. The total for the four years 2007, 2009, 2010, 2011 totals over $300,000.
U.S. Attorney Polite praised the work of the Internal Revenue Service, Criminal Investigation Division in investigating this matter. Assistant United States Attorney Carter K. D. Guice, Jr. of the Fraud Unit is in charge of the prosecution.
Jury Convicts Marion Man on Child Sexual Exploitation ChargesRead the Press Release
A man who sexually exploited a child, distributed child pornography, and received child pornography was convicted by a jury on Thursday, August 11, 2016, after a four-day trial in federal court in Cedar Rapids.
Bryan King, age 46, from Marion, Iowa, was convicted of one count of sexual exploitation of a child, one count of distribution of child pornography, and one count of receipt of child pornography. The verdict was returned following over an hour of jury deliberations.
The evidence at trial showed that, in October 2014, King persuaded and attempted to persuade, induce, and entice a 15-year-old child to produce an image depicting sexually explicit conduct. The evidence also showed that King distributed this image and an image of another child to another person.
Sentencing before United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. King remains in custody of the United States Marshal pending sentencing. King faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 70 years’ imprisonment, a $750,000 fine, a $300 special assessment, and supervised release for 5 years to life following any imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the Douglas County, Nebraska, Sheriff’s Office, and the Federal Bureau of Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 15-87.
Jonesboro-Area Drug Trafficking Leader Sentenced to 25 Years in Federal PrisonRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, along with Matthew Barden, Assistant Special Agent in Charge of the Drug Enforcement Administration (DEA), announced today that Joseph Farrell, 39, of Jonesboro, the leader of a multistate drug-trafficking organization, was sentenced to 25 years in prison for conspiracy to distribute methamphetamine.
United States District Court Judge D.P. Marshall, Jr., sentenced Farrell to 300 months in federal prison, to be followed by five years of supervised release, for his role in helping distribute more than 100 pounds of methamphetamine in and around the Jonesboro area. On Wednesday Judge Marshall also sentenced Jesus Cisneros, 46, of San Jose, Calif., to 188 months in prison and five years of supervised release for his role in the conspiracy. Cisneros was one of Farrell’s main sources of methamphetamine.
"Mr. Farrell led a sophisticated, widespread drug organization that put dozens of pounds of methamphetamine into our local communities, enough to poison entire towns," Thyer said. "These defendants today received significant sentences for significant crimes. This office is committed to stopping large-scale drug traffickers and protecting our communities from these criminals."
The indictment charging Farrell and Cisneros, along with 20 other co-conspirators, was handed down by a federal grand jury on October 8, 2014. The investigation that led to the indictment included multiple undercover operations and numerous other law enforcement actions. During the investigation the DEA seized approximately 96 pounds of methamphetamine, which had an estimated street value of more than $1.9 million. Information gathered during the investigation indicated this organization distributed more than 100 pounds of methamphetamine.
Farrell was dealing methamphetamine primarily in the Jonesboro area, selling between 5 and 15 pounds of meth per week. Farrell had sources of supply for methamphetamine in both Blytheville and San Jose, California, and he occasionally received shipments of methamphetamine and marijuana from his source in California through FedEx.
"The combined law enforcement actions that came to bear over the course of this investigation was not by accident, but the result of a strategic and coordinated effort to combat the large-scale methamphetamine trafficking organization managed by Joseph Ferrell," Barden said. "With Ferrell’s 25-year federal prison sentence, this should be a message to those who want to sell drugs—we are going to catch you and put you in prison for a long time if you distribute this poison in our communities. The DEA and all of our law enforcement partners will continue to aggressively investigate, disrupt, and dismantle ruthless criminal organizations involved in drug trafficking and the associated criminal networks that partner with them."
To date, 19 of the original 22 defendants have pleaded guilty. Two defendants have been dismissed from the indictment, and one—Vidal Almonte-Cervantes—is still a wanted fugitive.
The investigation was conducted by the DEA, with assistance from multiple law enforcement agencies, including the Jonesboro Police Department, the Craighead County Sheriff’s Office, Arkansas State Police, and United States Marshal Service. The case is being prosecuted by Assistant United States Attorney Benecia Moore.
Jamaican National Sentenced on Firearm, Illegal Re-entry ChargesRead the Press Release
PROVIDENCE, R.I. - Marlon A. Straw, 45, of Hyde Park, Mass., a Jamaican national, was sentenced on Tuesday to 46 months in federal prison for being a felon in possession of a firearm and illegal re-entry into the United States, announced United States Attorney Peter F. Neronha and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered the defendant to serve three years supervised release upon completion of his prison term. The defendant is subject to deportation proceedings following completion of his term of incarceration.
Straw pleaded guilty on May 23, 2016, as charged in an indictment returned in May 2015, with one count each of felon in possession of a firearm and illegal re-entry.
According to information presented to the court, on March 31, 2015, a car driven by the defendant’s wife was stopped by Rhode Island State Police on Route 95 in Exeter for speeding. During the traffic stop, Marlon Straw, who was not carrying any personal identifying information, provided troopers with multiple names, none of which were his true identity. Straw was detained and brought to the State Police Hope Valley barracks where troopers learned his true identity through a check of his fingerprints. While in custody, troopers discovered a loaded .45 caliber pistol containing hollow point bullets tucked into the defendant’s long underwear and sock.
According to information presented to the court, a criminal background check conducted by the Rhode Island State Police revealed that Straw had previously been convicted of a felony crime punishable by imprisonment of a term exceeding one year. U.S. Immigration and Customs Enforcement records showed that Straw was previously removed from the United States and was deported to Jamaica on August 29, 2013.
The case was prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
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Jim Martin (401) 709-5357
email: [email protected]
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Individual Sentenced to 87 Months in Prison for Conspiracy to Deprive A Person of Civil RightsRead the Press Release
SAN JUAN, P.R. –Francisco Martínez-Mercado was sentenced to 87 months in prison and three years of supervised release for conspiracy to deprive a person of civil rights, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Defendant was found guilty to the charge on February 26, 2016.
The evidence presented at trial showed beyond a reasonable doubt that the defendant, a sworn police officer and federal task force officer planned and executed a violation of civil rights by conducting an illegal search and seizure of an apartment where he knew there were drugs and money. The defendant came up with a plan, sought out the necessary personnel, including two other corrupt police officers and a marked patrol car. Witnesses testified that they were hired by the defendant to sit in a marked patrol car outside of a condominium in Isla Verde while two thugs broke into said apartment.
During the course of the trial, the government presented overwhelming evidence that showed that the defendant used his knowledge and contacts as a police officer in order to plan and execute the illegal search and seizure object of the indictment. Had the defendant not been a police officer, he certainly would not have had access to other corrupt officers who in turn had access to the patrol car and radio that were used on his behalf.
“The evidence showed that defendant used his law enforcement knowledge to do the opposite of what he was supposed to do with the trust that was placed in him,” said Rosa E. Rodíguez-Vélez. “The defendant abused his position of trust and used his contacts in the police to commit the offense.”
The case was prosecuted by Assistant United States Attorneys Teresa Zapata-Valladares y Mariana Bauzá.
Homedale Man Sentenced to 40 Months in Federal PrisonRead the Press Release
BOISE – Danny Mercado, 28, of Homedale, Idaho, was sentenced yesterday to 40 months in prison for unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Mercado to serve three years of supervised release following his release from prison. Mercado pleaded guilty on March 22, 2016.
According to information presented in court, Idaho State Police officers received information that Mercado was in possession of a firearm. On May 21, 2015, police officers and Idaho Department of Probation and Parole officers went to Mercado’s residence because another resident of the home was on probation. During a check at the residence, police officers saw a handgun in Mercado’s bedroom. After obtaining a warrant to search the residence, officers seized the loaded handgun that was identified as a Taurus .45 pistol. The pistol had an obliterated serial number. Officers also found additional items including Mercado’s wallet, scales, baggies, surveillance cameras, and items indicative of methamphetamine manufacturing.
In determining his sentence, Judge Lodge found that Mercado possessed the .45 pistol in connection with the felony crime of manufacturing methamphetamine. Judge Lodge also found that Mercado’s prior conviction for attempted strangulation in 2006 was a crime of violence. Mercado was also previously convicted of kidnapping in 2006. Mercado was prohibited from possessing firearm because of those prior felony convictions.
The case was investigated by the Idaho State Police, Idaho Department of Probation and Parole, and the Homedale Police Department.
Heir Location Services Company and Co-Owner Charged with Customer Allocation SchemeRead the Press Release
A Salt Lake City-based heir location services provider and its co-owner have been indicted for participating in a conspiracy to allocate customers with another heir location firm, the Department of Justice announced today.
According to the one-count felony indictment filed today in the U.S. District Court for the District of Utah, Kemp & Associates Inc. and its co-owner and vice president, Daniel J. Mannix, conspired with a competitor to suppress and eliminate competition by agreeing to allocate customers of heir location services sold in the United States between 1999 and 2014.
Heir location firms identify people who may be entitled to an inheritance from the estate of someone who died without a will. The heir location firms then enter into agreements with those people to help secure their inheritances in exchange for a fee.
“For over a decade, the defendants schemed to line their pockets at the expense of beneficiaries,” said Acting Assistant Attorney General Renata Hesse of the Justice Department’s Antitrust Division. “These charges underscore the division’s commitment to hold heir location services executives and their companies accountable for cheating heirs whose relatives died without a will.”
With today’s charges, three executives and two companies have been charged as a result of the ongoing federal antitrust investigation into customer allocation, price fixing, bid rigging and other anticompetitive conduct in the heir location services industry, which is being conducted by the Antitrust Division’s Chicago Office and the FBI’s Salt Lake City Division, with assistance from the U.S. Attorney’s Office of the District of Utah and the U.S. Attorney’s Office of the Northern District of Illinois.
Anyone with information concerning the focus of this investigation should contact the Antitrust Division’s Chicago Office at 312-984-7200, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Salt Lake City office at 801-579-1400.
Kemp & Mannix Indictment
Grand Prairie Man Who Unlawfully Sold Firearms on Internet Sentenced to 63 Months in Federal PrisonRead the Press Release
DALLAS — A Grand Prairie, Texas, man who unlawfully sold firearms on the Internet, has been sentenced by U.S. District Judge Sam A. Lindsay to 63 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Robert Confalone, 33, pleaded guilty in February 2016 to one count of being an unlawful user of a controlled substance in possession of a firearm. He admitted that prior to and through October 26, 2015, he used the Internet to market and attempt to sell firearms using the website “Instagram.” He was not a licensed firearms dealer.
When special agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) executed a search warrant at his residence on October 26, 2015, they located approximately 40 firearms, along with ammunition. Agents also found a personal use amount of marijuana in Confalone’s vehicle that Confalone admitted he used regularly while he possessed the firearms.
Confalone was taken into custody to begin serving his sentence at the end of Monday’s sentencing hearing.
ATF and the Grand Prairie Police Department investigated the case. Assistant U.S. Attorney Mark Penley was in charge of the prosecution.
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Fourth Suboxone Doctor and Office Manager Indicted for Illegally Selling Prescriptions of Suboxone and KlonopinRead the Press Release
PHILADELPHIA – An indictment was filed today charging a doctor and his office manager in a scheme to sell commonly abused prescription drugs in exchange for cash payments. Charged in the conspiracy are: Dr. Clarence Verdell, 66, of Voorhees, NJ and Rochelle Williams-Morrow, 37, of Philadelphia, PA. The indictment includes charges of conspiracy to distribute controlled substances, distribution of controlled substances, health care fraud, and money laundering and was announced by United States Attorney Zane David Memeger, Drug Enforcement Administration Special Agent-in-Charge Gary Tuggle, and Special Agent-in-Charge Nick DiGuilio with Health and Human Services Office of Inspector General.
The indictment alleges that Dr. Verdell formerly worked for Dr. Alan Summers who was also recently indicted for illegally selling prescriptions. After working for Dr. Summers for approximately six months, Dr. Verdell opened his own clinic in Philadelphia and followed Dr. Summers’s illegal practices of selling prescriptions for cash. Dr. Verdell attempted to market his clinic to Dr. Summers’s patients by promising them more drugs for less money. Dr. Verdell also did not require his patients to attend any form of counseling for their substance abuse issues. Dr. Verdell sold prescriptions for Suboxone and Klonopin in exchange for cash payments. Suboxone is a brand name for a drug used to treat opiate addiction. Dr. Verdell did not conduct medical examinations or mental health examinations as required by law in order to legally prescribe these controlled substances. Dr. Verdell also assisted his customers in obtaining health insurance benefits for these illegally prescribed controlled substances by providing false information to health insurance companies so that his customers could fill the prescriptions using their health insurance. Many of the customers who frequented this clinic were, in fact, drug dealers or drug addicts who sold the prescribed medications. In addition, Dr. Verdell provided prescription pads to his office manager, Rochelle Williams-Morrow, to use to provide prescriptions to cash paying customers when Dr. Verdell was not present in the office. During the duration of the conspiracy, Dr. Verdell illegally sold over $1 million worth of controlled substances.
“We have a public health crisis in this county involving prescription drug abuse that is exacerbated by doctors like these defendants,” said Memeger. “Every doctor who abandons his or her ethics to engage in the prescription-for-pay culture is breaking the law. They need to ask themselves whether it is worth the money to put people in danger, to risk the loss of their medical licenses, and to lose their freedom. Our office will continue to investigate and prosecute those individuals whose unscrupulous and illegal conduct contributes to this deadly epidemic.”
“These doctors capitalized on the addiction epidemic that is typically responsible for numerous deaths across our region,” said Tuggle. “The DEA will remain vigilant in pursuing investigations in an effort to combat this serious public health crisis.”
“It is a vicious cycle when doctors we trust to treat addiction actually fuel the epidemic for profit,” said DiGiulio. “In this case it is alleged that the defendants were: selling prescriptions for dangerous controlled substances; pretending to follow established standards of care to treat addicts; and then fraudulently causing government health care programs to pay for the unnecessary prescriptions. We will continue to work with our partners to dismantle dangerous pill mills, to protect government funds, and to keep the public safe.”
If convicted of all charges, each defendant faces a possible prison term, fines, restitution, special assessments, and a term of supervised release.
The case was investigated by the Drug Enforcement Administration, the Department of Health and Human Services Office of the Inspector General, and the Internal Revenue Service Criminal Investigations, with assistance from the Philadelphia Police Department and the Pennsylvania Bureau of Narcotics Investigations. It is being prosecuted by Assistant United States Attorney Robert Livermore.
Fort Myers Urologist Agrees to Pay $250,000 for Ordering Unnecessary Medical TestsRead the Press Release
Fort Myers, FL – United States Attorney A. Lee Bentley, III announces that Robert A. Scappa, D.O. has agreed to pay $250,000 to the government to resolve allegations that he violated the False Claims Act by causing claims to be submitted to federal health care programs for laboratory tests that were not medically necessary.
During the relevant time period, Scappa was a urologist practicing as part of Scappa Urology, which was a division of 21st Century Oncology, LLC. 21st Century is a nationwide provider of integrated cancer care services that is headquartered in Fort Myers. As part of its business, 21st Century employs and affiliates with physicians in specialty fields such as radiation oncology, medical oncology, and urology.
The settlement announced today resolves allegations that Scappa caused to be submitted claims to Medicare and Tricare for fluorescence in situ hybridization, or “FISH,” tests that were not medically necessary. FISH tests are laboratory tests performed on urine that can detect genetic abnormalities associated with bladder cancer. Medicare does not consider a FISH test reasonable or necessary unless it’s used to monitor for tumor reoccurrence in a patient previously diagnosed with bladder cancer or unless, after performing a full urologic workup, the physician has reason to suspect that a patient with hematuria (i.e., blood in the urine) may have bladder cancer.
In January 2009, Scappa began referring all of the FISH testing ordered by him to a laboratory owned and operated by 21st Century. He was paid bonuses by the company based, in part, on the number of FISH tests he referred to 21st Century laboratory. The settlement is based on Scappa’s ability to pay.
The allegations that doctors affiliated with 21st Century were ordering unnecessary FISH tests were originally brought in a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The whistleblower, a former medical assistant who worked for David Spellberg, M.D. at Naples Urology Associates, which was also a division of 21st Century Oncology, will receive $37,500 as her share of this recovery. This amount is in addition to a $3.2 million share she will receive as the result of the $19.75 million settlement previously reached with 21st Century Oncology.
“In fighting health care fraud, it is important that individual physicians, as well as their employers, be held accountable,” stated U.S. Attorney Bentley. “Doctors should not be able to escape personal liability for health care fraud.”
"This settlement is yet another example of the continuing commitment of the Defense Criminal Investigative Service (DCIS) and its law enforcement partners to protect the integrity of the Department of Defense (DoD) health care program," said Special Agent in Charge John F. Khin, Southeast Field Office. "As one of our top priorities, DCIS aggressively investigates health care fraud that harms the DoD, to ensure the best use of precious taxpayer dollars needed to provide critical care for our Warfighters, their family members, and military retirees."
“Tests ordered to increase profits rather than improve the healthcare of patients are an attack on Medicare and the American taxpayer,” said Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General. “This settlement demonstrates that such practices have consequences.”
The investigation was handled by Trial Attorney Arthur Di Dio from the Civil Division’s Commercial Litigation Branch and Assistant U.S. Attorney Kyle S. Cohen from the Fort Myers Division of the U.S. Attorney’s Office for the Middle District of Florida, with assistance from DCIS, FBI, and the Department of Health and Human Services Office of Inspector General.
This civil settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $30 billion through False Claims Act cases, with more than $18.3 billion of that amount recovered in cases involving fraud against federal health care programs.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
The lawsuit is captioned United States, State of Florida, ex rel. Mariela Barnes v. Dr. David Spellberg, 21st Century Oncology and Naples Urology Associates, Civil Action No. 2:13-cv-228-FtM-38DNF (M.D. Fla.).
Former Vice President of Wholesale Tool Company Sentenced to 63 Months in Prison for Role in $9 Million Bank Fraud SchemeRead the Press Release
The former vice president of a California wholesale tool company was sentenced to 63 months in prison today for his role in a scheme to defraud East West Bank that resulted in losses of over $9 million.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Eileen M. Decker of the Central District of California, Assistant Director in Charge Deidre Fike of the FBI’s Los Angeles Division, Acting Special Agent in Charge Anthony J. Orlando of Internal Revenue Service-Criminal Investigation’s (IRS-CI) Los Angeles Field Office and Special Inspector General Christy Goldsmith Romero of the Troubled Asset Relief Program (SIGTARP) made the announcement.
Chung Yu Yeung, aka Louis Yeung, 39, of San Dimas, California, was sentenced by U.S. District Judge Christina A. Snyder of the Central District of California. Judge Snyder also ordered Yeung to pay $9,618,908.34 in restitution and to forfeit a San Dimas property that was purchased with proceeds of the scheme. On March 30, 2016, Yeung pleaded guilty to one count of conspiracy to commit bank fraud and four counts of bank fraud.
As part of his guilty plea, Yeung, a former vice president of Eastern Tools & Equipment Inc. (Eastern Tools) of Ontario, California, admitted that he and his co-conspirators defrauded East West Bank by making material misrepresentations about Eastern Tools’ accounts receivable and its financial statements to obtain and maintain a loan with the bank. The conspirators created numerous shell corporations to act as purported suppliers and retailers doing business with Eastern Tools, when, in reality, these shell corporations were entirely under the control of Yeung and existed for the sole purpose of creating the illusion of such business, he admitted. Yeung also admitted that the fictitious companies allowed Yeung and other conspirators to falsely inflate Eastern Tools’ accounts receivable and financial statements in representations to East West Bank.
Yeung admitted that in order to further the scheme, he and others opened post office boxes, phone accounts and email accounts purportedly associated with the shell retail companies, and provided information about them to East West Bank auditors, to promote the illusion that these shell customers were independent entities.
Eastern Tools defaulted on the loan after East West Bank discovered the fraud, causing more than $9 million in losses to the bank, Yeung admitted.
The FBI, IRS-CI and SIGTARP investigated the case. Senior Litigation Counsel David A. Bybee of the Criminal Division’s Fraud Section prosecuted the case.
Former Vice President of Inland Empire Tool Company Sentenced to 63 Months in Prison for Role in $9 Million Bank Fraud SchemeRead the Press Release
LOS ANGELES – The former vice president of an Ontario-based wholesale tool company was sentenced today to 63 months in federal prison for his role in a scheme to defraud East West Bank that resulted in more than $9 million in losses.
Chung Yu Yeung (also known as Louis Yeung), 39, of San Dimas, was sentenced this afternoon by United States District Judge Christina A. Snyder. In addition to the prison term, Judge Snyder ordered Yeung to pay $9,618,908 in restitution and to forfeit a property in San Dimas that was purchased with proceeds of the scheme.
The sentencing of Yeung was announced today by Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, United States Attorney Eileen M. Decker, Assistant Director in Charge Deidre Fike of the FBI’s Los Angeles Division, Acting Special Agent in Charge Anthony J. Orlando of Internal Revenue Service-Criminal Investigation’s (IRS-CI) Los Angeles Field Office and Special Inspector General Christy Goldsmith Romero of the Troubled Asset Relief Program (SIGTARP).
Yeung pleaded guilty on March 30 to one count of conspiracy to commit bank fraud and four counts of bank fraud. Yeung, a former vice president of Eastern Tools and Equipment, Inc. (Eastern Tools), admitted that he and his co-conspirators defrauded East West Bank by making material misrepresentations about Eastern Tools’ accounts receivable and its financial statements to obtain and maintain a loan with the bank. The conspirators created numerous shell corporations to act as purported suppliers and retailers doing business with Eastern Tools, when, in reality, these shell corporations were entirely under the control of Yeung and existed for the sole purpose of creating the illusion of such business, he admitted. Yeung also admitted that the fictitious companies allowed Yeung and other conspirators to falsely inflate Eastern Tools’ accounts receivable and financial statements in representations to East West Bank.
Yeung admitted that in order to further the scheme, he and others opened post office boxes, phone accounts and email accounts purportedly associated with the shell retail companies, and provided information about them to East West Bank auditors, to promote the illusion that these shell customers were independent entities.
Eastern Tools defaulted on the loan after East West Bank discovered the fraud, causing more than $9 million in losses to the bank.
“Yeung created companies and profits that were nothing but illusions, tricking a bank into loaning him millions of dollars,” said United States Attorney Eileen M. Decker. “This was a sophisticated crime that caused substantial losses, warranting the punishment imposed by the Court today.”
“Today, Yeung was held accountable for his illegal actions involving a massive loan fraud scheme that generated millions of dollars through the use of corporations that existed on paper only,” said Acting Special Agent in Charge Anthony J. Orlando of IRS Criminal Investigation. “The audacity of this scheme was truly astounding and illustrates the lengths to which fraudsters will go to game the financial system for personal gain. IRS Criminal Investigation is proud to work with our law enforcement partners by lending our financial expertise in these complex investigations.”
Yeung’s co-defendant, Guo Xiang Fan, who was the owner and president of Eastern Tools, is a fugitive.
The FBI, IRS-CI and SIGTARP investigated the case. Senior Litigation Counsel David A. Bybee of the Criminal Division’s Fraud Section prosecuted the case.
Former St. Charles District Attorney Harry Morel Sentenced to 3 Years Imprisonment for Obstruction of JusticeRead the Press Release
U.S. Attorney Kenneth A. Polite announced today HARRY J. MOREL, JR., age 73, was sentenced today after previously pleading guilty to obstruction of justice in violation of Title 18, United States Code, Section 1512(d)(1).
U.S. District Judge Kurt D. Engelhardt sentenced MOREL to 3 years imprisonment, a $20,000 fine, 1 year of supervised release and a $100 special assessment.
According to court records, MOREL served as the elected prosecutor of St. Charles Parish, Louisiana from on or about January 1, 1979 until May 31, 2012. Thereafter, he became an Assistant District Attorney in the Office of the District Attorney for St. Charles Parish and remained in that position until January 11, 2013. MOREL resided in, and his office was located in, St. Charles Parish, Louisiana, in the Eastern District of Louisiana.
As District Attorney and as an Assistant District Attorney for St. Charles Parish, MOREL was responsible for prosecuting individuals charged with criminal and traffic offenses against the State of Louisiana. As the District Attorney, MOREL had the authority and discretion to, among other things, make bail recommendations, make sentence recommendations and bring dismiss, forego or reduce charges.
MOREL freely admitted that he is guilty of Obstruction of Justice in that he harassed Individual "A" and attempted to prevent and dissuade Individual "A" from attending or testifying in an official proceeding, i.e., the federal grand jury, by telling Individual "A" to "get rid of” and to "destroy" the evidence of a meeting they had and to deny the inappropriate nature of the meeting to law enforcement officials. Furthermore, based on Individual "A"'s representations, MOREL believed there would be a federal Grand Jury investigation, and as a result asked her to conceal information that would have likely led to her being a witness before that body.
MOREL also admitted that on other occasions, between 2007 and 2009, he solicited sex from other individuals who were defendants or who had family members who were defendants in the St. Charles Parish criminal justice system. While soliciting sex from these individuals, MOREL likewise used the office of the District Attorney to provide benefits to these other individuals, including falsifying community service reports.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the St. Charles Parish Sheriff’s Office in investigating this matter. Assistant U.S. Attorneys James Baehr and Mark Miller were in charge of the prosecution.
Former Postal Worker Sentenced for Theft of MailRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ANISHA GALLIN, age 27, of Riverdale, Georgia, was sentenced today after previously pleading guilty to theft of mail.
U.S. District Judge Sarah S. Vance sentenced GALLIN to 2 year of probation and $60 in victim restitution.
According to Court records, on or about July 18, 2014, GALLIN, a United States Postal carrier, removed at least $60 in cash from greeting cards while on her postal route.
U.S. Attorney Polite praised the work of the U.S. Postal Service, Office of Inspector General for investigating this matter. Assistant U.S. Attorney G. Dall Kammer was in charge of the prosecution.
Former Insurance Agency Owner Sentenced to over Two Years for Defrauding Clients Out of More Than $500,000Read the Press Release
TULSA, Okla.–Gary Edward Hibbing, a former insurance agent and owner of Grand Lake Investments and Insurance in Grove, Oklahoma, was sentenced to serve 27 months in prison for implementing a fraudulent scheme that caused his clients to lose $505,126, announced United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma. In addition to the prison sentence, United States District Chief Judge Gregory K. Frizzell ordered Hibbing to pay $505,126 in restitution.
Hibbing, 53, of Chino, California, was indicted on August 12, 2015, and he pleaded guilty to two counts of wire fraud and two counts of unlawful monetary transactions on April 4, 2016.
Hibbing defrauded his victims through a scheme called “twisting”— an insurance industry term that refers to the fraudulent practice by an insurance agent of convincing a client to surrender an existing annuity in exchange for a new one. There is usually a penalty for early termination of an annuity and the client often loses money while the agent makes money on a new commission.
In addition, Hibbing lied to clients to convince them to surrender their existing annuities and immediately purchase new ones. He intentionally failed to disclose early termination penalties. He also provided false information to insurance companies to facilitate his twisting scheme.
The case was investigated by the Internal Revenue Service-Criminal Investigation and the Oklahoma Insurance Department’s Anti-Fraud Unit. The case was prosecuted by Assistant United States Attorneys Kevin C. Leitch, Clemon D. Ashley, and Catherine Depew.
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Five Members and Associates of New Jersey Grape Street Crips Indicted for Drug Trafficking, Firearms PossessionRead the Press Release
NEWARK, N.J. – Five Newark men associated with the New Jersey set of the Grape Street Crips were charged today in three separate indictments with drug distribution and firearms offenses, U.S. Attorney Paul J. Fishman announced.
Marvin Eure, a/k/a “Man Man,” 22, is charged in a two-count indictment with heroin distribution and possessing firearms as a previously convicted felon. Louis Coston, a/k/a “Real Rell,” 26, is charged in a separate two-count indictment with conspiracy to distribute one kilogram or more of heroin and one count of heroin possession with intent to distribute.
Ahmad Mann, a/k/a “P.O.,” a/k/a “P-Easy,” 37, Milton Latham, a/k/a “Murder,” 42, and Vincent J. Carter, a/k/a “Vince,” a/k/a “Vin,” 61, are charged in a third indictment with conspiracy to distribute 100 grams or more of heroin. In addition, Latham is charged with unlawful possession of a firearm as a previously convicted felon, and Mann is charged with three counts of heroin possession with intent to distribute.
According to the indictments:
The New Jersey Grape Street Crips controlled drug trafficking and other criminal activities in various areas of Newark. Coston and Ahmed Singleton, 26, a/k/a “Gangsta-Mu,” a/k/a “Mooshie,” both members of the New Jersey Grape Street Crips, allegedly sold prolific quantities of heroin to both Newark residents and out-of-town customers. Mann, Latham, and Carter allegedly worked together to distribute brick quantities of heroin in and around the Pennington Court, Hyatt Court, and Riverview public housing complexes in Newark, New Jersey.
Eure was a long-time member of the New Jersey Grape Street Crips who, after a violent dispute with the group’s leadership, formed a rival gang with various associates. In August 2012, Eure allegedly sold a Remington Arms 870 Magnum shotgun and a 7.62 caliber SKS rifle to a confidential informant working with the FBI. On Oct. 24, 2014, Eure also distributed heroin at the Kemsco Village housing complex in Newark.
To date, 37 members and associates of the New Jersey Grape Street Crips have pleaded guilty to drug trafficking, firearms and other charges. The leadership and senior members of the gang are awaiting trial on a racketeering indictment that includes four murders, three attempted murders, and numerous other crimes.
Eure faces a potential sentence of 10 years in prison for the firearms charge and a potential sentence of 20 years in prison for heroin distribution. Coston faces a mandatory minimum term of 10 years in prison and a potential maximum of life in prison for the heroin conspiracy charge, as well as a potential 20-year sentence for the heroin distribution charge.
Mann, Latham, and Carter face a mandatory minimum term of five years in prison for the heroin distribution charge. Mann faces a 20-year sentence for each of the three heroin distribution counts. Latham faces a 10-years sentence for the firearms charge.
Eure, Coston, Mann, and Latham remain in custody. Carter is out on bail.
U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski, and special agents of the FBI, under the direction of Acting Special Agent in Charge Timothy Gallagher, for the investigation leading to the charges. U.S. Attorney Fishman also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, police officers and detectives of the Newark Department of Public Safety, under the direction of Director Anthony A. Ambrose, and the Essex County Sheriff’s Office, under the direction of Armando B. Fontoura, for their work on the investigation.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry A. Kamar of the OCDETF/Narcotics Unit of the Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
The charges and allegations contained in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Federal inmate pleads guilty to possessing weapon in prisonRead the Press Release
BECKLEY, W.Va. – An inmate at the Federal Correctional Institution at Beckley pleaded guilty today to possessing a weapon in prison, announced United States Attorney Carol Casto. Larry Antoine Smith, 49, entered his guilty plea to possession of a weapon by an inmate of the institution. Smith admitted that on September 28, 2015, he possessed a combination lock attached to a belt. The weapon was discovered when a prison staff member observed Smith swinging the belt. Smith further admitted that he attached the lock to the belt with the intention of using it as a weapon.
Smith faces up to five years in federal prison when he is sentenced on November 30, 2016.
This case was investigated by the Federal Bureau of Prisons. Assistant United States Attorney John File is handling the prosecution. The plea hearing was held before United States District Judge Irene C. Berger.
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Federal Jury Finds “Worst of Worst” Offender from Albuquerque Guilty on Carjacking and Firearms ChargesRead the Press Release
ALBUQUERQUE – A federal jury sitting in Albuquerque, N.M., returned a verdict late yesterday afternoon finding Samuel Silva, 40, guilty on carjacking and firearms charges arising from a one-day crime spree in April 2014, following a two-day trial. Another federal jury previously convicted Silva on an armed career criminal charge in July 2016.
Yesterday’s verdict was announced U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Gorden E. Eden, Jr., of the Albuquerque Police Department (APD).
In announcing the verdict, U.S. Attorney Martinez commended the ATF agents, APD officers and prosecutors responsible for ensuring that Silva will likely spend the rest of his life behind bars where he can never again terrorize innocent residents of our community. The U.S Attorney added, “This is what the federal ‘worst of the worst’ anti-violence initiative is all about – making New Mexicans safer by removing violent, repeat offenders from our communities for as long as possible.”
“This is an example of how our criminal justice system can work at its best,” said 2nd Judicial District Attorney Brandenburg. “When law enforcement agencies collaborate like this, everyone benefits.”
ATF Special Agent in Charge Atteberry said, “Anytime we can take a career criminal off the streets, we are a much safer community. Silva will have a long time to reflect on his actions while he is locked up in a federal prison. We will continue to aggressively pursue and prosecute in federal court these violent career offenders.”
“The Albuquerque Police Department is committed to ensuring that career criminals are not welcome in our city, and we will exhaust every resource to protect and serve our citizens,” said APD Police Chief Eden. “Working in concert with our ‘worst of the worst’ partners guarantees repeat offenders cannot continue to victimize innocent people.”Silva was charged on Dec. 3, 2014, in a six-count indictment with attempted carjacking, brandishing a firearm in furtherance of a crime of violence, carjacking, discharging a firearm in furtherance of a crime of violence, and two counts of being a felon in possession of a firearm and ammunition. The indictment charged Silva with committing the first five offenses on April 23, 2014, and the sixth offense on July 1, 2014, in Bernalillo County, N.M.
According to the indictment, in April and July of 2014, Silva was prohibited from possessing firearms or ammunition because he previously had been convicted of numerous felony offenses. His prior felony convictions include auto burglary, unlawful taking of a vehicle, aggravated battery on a peace officer, attempted murder with a firearms enhancement, shooting at a motor vehicle, unlawful possession of a firearm, kidnapping with a firearms enhancement, and aggravated assault with a deadly weapon.
Silva was arrested on Dec. 18, 2014, after he was transferred to federal custody from state custody where he was detained on related state charges. The state charges subsequently were dismissed in favor of federal prosecution.
In June 2016, the court ordered separate trials for Silva on the carjacking and firearms offenses he committed on April 23, 2014, and the firearms offense he committed on July 1, 2014.
Silva’s first trial on Count 6 of the indictment began the morning of July 11, 2016, and concluded that that afternoon when the jury returned a guilty verdict. The evidence at trial established that when APD officers arrested Silva on July 1, 2014, he was in possession of a semi-automatic pistol loaded with nine rounds of .40 caliber ammunition. At sentencing on that conviction, Silva faces an enhanced sentence of a statutory mandatory minimum of 15 years and a maximum of life in prison for this conviction because of his status as an armed career criminal.
Silva’s second trial on the remaining five counts of the indictment began on Aug. 15, 2016, and concluded late yesterday afternoon when the jury returned a guilty verdict on all five counts. The evidence at trial established that on April 23, 2014, Silva forced his way into a home in southwest Albuquerque, where he brandished a .45 caliber pistol at the victim and demanded items of value including the keys to the car parked in the homeowner’s (Victim 1) driveway. Silva fled the scene after he bound Victim 1 with electrical cords torn from various appliances in Victim 1’s home. Victim 1 was able to free herself and call for help from a neighbor’s house.
After fleeing from Victim 1’s home, Silva ran approximately one block where he attempted to enter a second residence. When the homeowner (Victim 2) refused and attempted to retrieve his own handgun, Silva shot the locked storm door, breaking the bottom pane of glass and crawled through the glass, cutting himself in the process. Before Victim 2 could retrieve his own firearm, Silva confronted him and demanded the keys to the pickup truck in Victim 2’s driveway. Before Victim 2 could comply with Silva’s demand, Silva shot Victim 2 through the lower left leg. Silva then dragged Victim 2 to the kitchen where he took the keys to the truck. Silva fled Victim 2’s home in the truck, which he abandoned at a third home about a mile away. Forensic scientists were able to identify Silva by blood he left at Victim 2’s home and in the truck.
The jury deliberated for approximately 30 minutes before returning the guilty verdict.
At sentencing, Silva faces a statutory maximum penalty of 15 years in prison on the attempted carjacking charge; a statutory maximum penalty of 25 years in prison on the carjacking charge; and a penalty of a statutory mandatory minimum of 15 years and a maximum of life in prison for being an armed career criminal. Additionally, Silva faces a statutory mandatory minimum of 32 years in prison, which must be served consecutive to any sentence imposed on the other charges, for brandishing and discharging firearms during the attempted carjacking and carjacking. In sum, Silva faces a statutory mandatory minimum term of 47 years to a lifetime of imprisonment for his conviction on Counts 1 through 5 of the indictment.
The case was investigated by ATF in Albuquerque and APD with assistance from the 2nd Judicial District Attorney’s Office.
Assistant U.S. Attorneys Jacob A. Wishard and Edward Han are prosecuting the case as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat and violent offenders, primarily based on their prior convictions, from counties with the highest violent crime rates under this initiative.
Enfield Woman Sentenced to 21 Months in Federal Prison for Embezzling from Credit UnionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PAMELA MALLORY, 43, of Enfield, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 21 months of imprisonment, followed by five years of supervised release, for embezzling more than $840,000 from her employer, 360 Federal Credit Union.
According to court documents and statements made in court, MALLORY was employed as the lending manager of Windsor Locks-based 360 Federal Credit Union. In her position, MALLORY had access to loan files and authorized loans, including home equity lines of credit (“HELOCs”). From 2009 through 2016, MALLORY opened five different HELOCs in the name of a credit union member and increased the credit limit of those HELOCs on at least 15 occasions, all without the knowledge or consent of the credit union member. Initially, MALLORY perpetrated this scheme by opening subsequent HELOCs to pay off earlier, smaller HELOCs. Later in the scheme, rather than opening new HELOCs, she simply increased the credit limits on two of the fraudulent HELOCs to support her spending.
In order to evade detection, MALLORY made minimum, interest-only payments on the HELOCs from her own checking account.
When 360 Federal Credit Union discovered the scheme in January 2016, the credit union member’s property, which is worth less than $150,000, supported two HELOCs, each with credit limits of $417,000, that MALLORY had fully drawn down.
In total, MALLORY stole approximately $840,378.28 from 360 Federal Credit Union and used the proceeds of the scheme to pay her own creditors. Judge Chatigny ordered MALLORY to make full restitution.
On May 12, 2016, MALLORY pleaded guilty to one count of embezzlement by a credit union employee.
MALLORY, who is released on bond, was ordered to report to prison on September 28, 2016.
This matter was investigated by Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Employee of the Luzerne County Correctional Facility Charged with Extortion and Tampering with A WitnessRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that an employee of the Luzerne County Correctional Facility has been charged in a Criminal Information with violations of federal law.
According to United States Attorney Peter Smith, John Stachokus, age 41, of Plains Township, has been charged in a Criminal Information filed today in the United States District Court in Scranton, with extortion and tampering with a witness. It is alleged that the witness tampering charge is the result of Stachokus’ attempt to persuade a Government witness to offer false statements to federal law enforcement agents when asked about an investigation involving the extortion.
The Criminal Information further alleges that while acting in his official capacity as a corrections officer at the Luzerne County Correctional Facility, Stachokus extorted money and other items of value from work release inmates in exchange for affording them special privileges and unauthorized furloughs. It is alleged that in addition to cash, one particular inmate also purchased cocaine for Stachokus in exchange for special favors. Stachokus allegedly engaged in such conduct beginning in November 2013 through February 2016.
The Criminal Information was filed pursuant to a plea agreement with Stachokus. The plea agreement is subject to approval by the court. No date has been scheduled as yet for the entry of Stachokus’ guilty plea.
The charges are the result of an investigation conducted by the Federal Bureau of Investigation. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute for the extortion charge is 20 years’ imprisonment. The witness tampering charge also carries a maximum term of 20 years’ imprisonment. Each charge carries a fine of $250,000 and a term of supervised release following any period of incarceration. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Dominican Man Pleads Guilty to Drug Trafficking and Money LaunderingRead the Press Release
BOSTON – A Dominican man residing in Lawrence pleaded guilty yesterday in U.S. District Court in Boston in connection with a heroin, cocaine and fentanyl trafficking organization with ties to Mexico.
Gilberto Alicea, 31, of Bani, Dominican Republic and Lawrence, pleaded guilty to one count of conspiracy to distribute heroin, cocaine and fentanyl and one count of conspiracy to launder monetary instruments. In July 2015, Alicea was arrested and charged.
At the time of Alicea’s arrest, he was helping to count over $500,000 in cash that was going to be transported by a co-conspirator to the Mexican border for payment of nine kilograms of fentanyl . The fentanyl was seized while en route from California to Lawrence, where it was destined for the drug trafficking organization led by Alicea’s co-defendant, Jerri Martinez-Tejeda. On at least five occasions, Alicea deposited $8,000 in proceeds from the drug trafficking operations to help launder the profits. Alicea was also involved in the preparation, packaging and delivery of drugs.
In June 2016, Martinez-Tejeda pleaded guilty to the same charges. Co-defendants Yoelly Carmenatty, Lily Solis and Michael Bate have also pleaded guilty and are scheduled to be sentenced in the fall of 2016 with the exception of Solis, who was previously sentenced to 33 months in prison.
The narcotics charge provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of $1 million. The money laundering charge provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $500,000 or twice the value of the gross gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Lawrence Police Chief James X. Fitzpatrick, made the announcement. The case is being prosecuted by Assistant U.S. Attorney Thomas E. Kanwit of Ortiz’s Narcotics and Money Laundering Unit.
Doctors and Medical Facilities in Lehigh Valley Pay $690,441 to Resolve Healthcare Fraud AllegationsRead the Press Release
PHILADELPHIA – Dr. Yasin Khan, Dr. Elizabeth Khan, Dr. Dong Ko, Westfield Hospital and affiliated entities including a related pain clinic, Lehigh Valley Pain Management, have agreed to pay $690,441 to the federal government to resolve allegations that they violated the False Claims Act by submitting false health care billings to the Medicare, Federal Employees Health Benefits, and United States Department of Labor-Office of Workers’ Compensation programs.
The settlement resolves allegations in a complaint filed in federal court in the Eastern District of Pennsylvania by a whistleblower under the qui tam provisions of the False Claims Act. The qui tam provisions allow private citizens to bring civil actions on behalf of the United States and share in any recovery. The whistleblower, Margaret Reynard, will receive approximately $124,000 of the recovery.
In the qui tam complaint, the whistleblower alleged that the defendants submitted claims to the federal government to receive reimbursement for services performed by non-physicians as “incident to” the services of supervising physicians when, in fact, supervising physicians were away from the office or otherwise incapable of supervising. Billing services as “incident to” a physician’s supervision commands a higher reimbursement rate than billing those same services without physician supervision. Because physicians were not available to provide the supervision that the government programs required, the whistleblower alleged that defendants’ “incident to” billing was improper and resulted in false claims during the period from July 1, 2007 through December 31, 2013. There has been no determination of civil liability. The settled civil claims are allegations only.
As part of the settlement agreement, the defendants also agreed that, for the next thirty months, they will not submit claims to federal payors for any services performed by non-physician providers under the rate that applies for services rendered “incident to” the services of a physician, regardless of whether or not the claims could be billed properly in that manner.
This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General, the U.S. Office of Personnel Management Office of the Inspector General, the U.S. Postal Service Office of the Inspector General, and the U.S. Department of Labor Office of the Inspector General. It was handled by Assistant United States Attorneys Gregory B. David and Michael S. Macko.
District Man Indicted for First-Degree Sexual Abuse and Other Charges in 2001 and 2002 AttacksRead the Press Release
WASHINGTON - Chelo Gwathmey, 38, of Washington D.C., was indicted today on charges stemming from armed rapes of two women in 2001 and 2002, announced U.S. Attorney Channing D. Phillips and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Gwathmey was indicted by a grand jury in the Superior Court of the District of Columbia on charges of first-degree sexual abuse while armed with aggravating circumstances, and related offenses. Gwathmey was arrested on Aug. 15, 2016, and has been in custody while awaiting further court proceedings. He will be arraigned on a date to be scheduled by the Court. The charges of first-degree sexual abuse while armed with aggravating circumstances carry a statutory maximum penalty of life in prison.
The indictment followed an investigation by the U.S. Attorney’s Office and the Metropolitan Police Department into two separate sexual assaults that occurred in 2001 and 2002. The first victim was walking home alone in the early morning hours of Aug. 26, 2001, in the vicinity of 9th and Upshur Streets NW, when she was accosted by a man wielding a knife. The man forced her inside of his vehicle and raped her. The second victim was raped at gunpoint in the early morning hours of Aug. 27, 2002, inside a vehicle in an alleyway adjacent to the unit block of Van Buren Street NW.
Forensic analysis of the sex kits collected following the two assaults revealed that the same unknown male DNA profile was found on the biological material in both cases. In the summer of 2016, detectives with the Metropolitan Police Department’s Sexual Assault Unit developed the defendant as a suspect in these assaults and obtained a warrant to collect a DNA sample from him. Forensic analysis revealed that Gwathmey’s DNA profile matched the unknown male DNA profile found in the sex kits collected following both assaults.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the indictment, U.S. Attorney Phillips and Chief Lanier commended the work of those who are investigating the case from the Metropolitan Police Department. They also acknowledged the efforts of those handling the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Veronica Vaughan, Paralegal Specialist D’Yvonne Key, and Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation. Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Amy Zubrensky and Jason Park, who are prosecuting the matter.
Department of Justice Launches Comprehensive Assessment of the Commerce City Police DepartmentRead the Press Release
DENVER, Colo. – The Department of Justice, Office of Community Oriented Policing Services (COPS Office) today announced the launch of an independent and comprehensive review of the Commerce City Police Department. This review, also known as Collaborative Reform Initiative for Technical Assistance (CRI-TA), comes at the request of Commerce City officials and the police department in response to serious internal challenges and concerns pertaining to officer misconduct.
Chief Noble Wray, head of the COPS Office Policing Practices and Accountability Initiative and Acting U.S. Attorney for the District of Colorado Bob Troyer joined Commerce City Mayor Pro Tem René Bullock and Interim Police Chief Lowell Richardson to announce the launch of the collaborative reform process.
“I commend Commerce City for requesting and welcoming this type of candid assessment,” said COPS Office Director Ronald Davis. “I am confident that the process can dramatically improve the internal operations of the department and the quality of service the department provides to the community.”
“A top priority of this office is to develop and maintain strong relationships between the community and law enforcement,” said Acting U.S. Attorney Bob Troyer. “Commerce City leaders are walking that walk by asking for this collaboration with the COPS Office, and that alone is a great step forward.”
CRI-TA serves as an independent and objective process to help transform law enforcement agencies through the analysis of policies, practices, training, tactics, and accountability methods. Using subject matter experts, the COPS Office provides technical assistance based on extensive research and analysis to help enhance and improve an agency’s operating systems and professional culture.
Once the initial assessment phase of the process is completed, the COPS Office will release a report detailing the findings of the assessment, along with specific recommendations to achieve best practices in 21st century policing. During the subsequent 18-months, the COPS Office will continue to work with the police department to help implement the recommendations and will release a progress report and final report.
Commerce City is the 13th city to enter into the collaborative reform process.
The COPS Office, headed by Director Ronald Davis, is a federal agency responsible for advancing community policing nationwide. Since 1995, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of more than 127,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
Defendant Sentenced to 6 Months for Oil TheftRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces today that Mark Wayne Bush, 51, of Gilbertown, Alabama, was sentenced today to 6 months of imprisonment by Senior U.S. District Judge Callie V. S. Granade for conspiring to transport stolen oil from Clarke County, Alabama to Mississippi. The judge ordered that Bush undergo 3 years of supervised release upon completing his term of imprisonment, pay $198,270 in restitution to Pruet Oil Company, undergo credit restrictions, and pay a $100 mandatory special assessment.
Bush and co-defendants Oliver Leggett Jr. and Earnest Ronald Hays were indicted by a federal grand jury in December 2015 for their scheme to steal oil from oil fields in Clarke County, transport the oil to Heidelberg, Mississippi, and sell it to third parties, all for personal financial gain. From before 2006 to 2015, Bush was an oil pumper working as a contractor for Pruet Oil, a company with oil fields in Clarke County. During the conspiracy, Leggett was a truck driver responsible for transporting sludge and waste oil, and Hays headed Hays Petroleum, an oil company in Heidelberg, Mississippi. Bush, Leggett, and Hays stole crude oil from Pruet Oil. Bush and Leggett communicated about the best times to steal crude oil, which tanks to use to take the oil, and how many barrels to load out of each tank. Relying on Bush’s information, Leggett went to Pruet Oil at various times, loaded stolen crude oil into his truck, and transported it to Hays, who paid Leggett for delivered stolen oil. Leggett, in turn, paid Bush a portion of the stolen oil proceeds.
On May 19, 2016, Bush pled guilty to one count of conspiring to transport stolen oil in interstate commerce. Leggett and Hays have also pled guilty to the conspiracy. Leggett’s sentencing date is August 22, 2016. Hays’s sentencing date is December 1, 2016.
The case was investigated by the Clarke County Sheriff’s Department, the Federal Bureau of Investigation, and the Internal Revenue Service, Criminal Investigation. The case was prosecuted by Assistant United States Attorneys Sinan Kalayoglu and Gregory Bordenkircher.
Defendant Sentenced to 15 Months for BP FraudRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces today that Catrina Jefferson, 38, of Irvington, Alabama, was sentenced today to 15 months of imprisonment by Senior U.S. District Judge Callie V. S. Granade for conspiring to commit wire fraud and mail fraud. The judge ordered that Jefferson undergo 3 years of supervised release upon completing her term of imprisonment, pay $155,700 in restitution to the Gulf Coast Claims Facility (GCCF), undergo substance abuse and mental health treatment, face credit restrictions, and pay a $100 mandatory special assessment.
Jefferson was indicted by a federal grand jury in November 2015 for seeking personal financial gain by defrauding British Petroleum and the GCCF through the preparation and filing of false GCCF Claim Forms and supporting documents. As part of the scheme, Jefferson used the social security numbers and other personal identifiers of several individuals. She sent the GCCF false documents, such as pay stubs, Form W-2s, employment verification letters, and tax returns. Jefferson used a tax preparation business called Jefferson Tax Services in furtherance of the scheme. She arranged to directly receive payments from the GCCF. She unlawfully endorsed GCCF checks and deposited money into bank accounts under her control. On May 19, 2016, Jefferson pled guilty to one count of conspiring to commit wire fraud and mail fraud.
The case was investigated by the Internal Revenue Service, Criminal Investigation. The case was prosecuted by Assistant United States Attorney Sinan Kalayoglu.
Controller Embezzled Money at Direction of Person He Met through Online Dating SiteRead the Press Release
PITTSBURGH - A former Pennsylvania resident who now lives in Mississippi pleaded guilty in federal court to a charge of wire fraud, United States Attorney David J. Hickton announced today.
Jeffrey A. Plimpton, 59, formerly of Harrison City, Pa., pled guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that from on or about April 8, 2014, and continuing thereafter to on or about Dec. 22, 2015, Plimpton, while serving as the Controller, embezzled over $1.4 million from Alpha Aromatics and Pestco Professional Services. Plimpton wire transferred approximately $1,386,376.04 out of the company’s bank account at the direction of a person he met through an online dating website. For example, at this person’s direction, Plimpton wire transferred $119,780 from the company’s bank account in Pennsylvania to a United Overseas Bank account in Malaysia.
Judge Fischer scheduled sentencing for Dec. 15, 2016, at 11:30 a.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court released the defendant on bond.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Plimpton.
Connecticut Man Sentenced for Drug Possession After High-Speed PursuitRead the Press Release
BOSTON – A Connecticut man was sentenced today in U.S. District Court in Springfield in connection with heroin and cocaine distribution.
Tyvonne Gooden, 25, of Manchester, Conn. was sentenced today by U.S. District Judge Mark G. Mastroianni to 46 months in prison and three years of supervised release. In February 2016, he pleaded guilty to possession with intent to distribute heroin and cocaine.
On March 20, 2014, Gooden was in possession of 190 bags of heroin and two bags of cocaine after he was caught in Greenfield, Mass. by law enforcement officers following an hours-long chase. The chase began when Gooden sped away from a Massachusetts State Trooper after being pulled over on the highway for a traffic violation.
United States Attorney Carmen M. Ortiz and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Deepika Bains Shukla of Ortiz’s Springfield Branch Office.
Columbus Gang Members Pleads Guilty to Rackteering, Takes Responsibility for 2 MurdersRead the Press Release
COLUMBUS, Ohio – Lance Reynolds, 33, of Columbus, Ohio pleaded guilty in U.S. District Court to one count of racketeering conspiracy in connection with a case involving the organized criminal enterprise known as the Short North Posse.
As part of his plea, he took responsibility for two previously unsolved murders: the deaths of Quincy Battle on March 24, 2010 in Columbus and Shane McCuen on March 11, 2008 in Zanesville.
Reynolds was originally one of three defendants scheduled for a third trial in this case, which is to begin on September 26. DeShawn Smith and Johnathan Holt remain scheduled for trial.
Reynolds’ plea contains a recommended sentencing range of 30 to 35 years in prison.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Brad Earman, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Franklin County Prosecutor Ron O’Brien and Columbus Police Chief Kim Jacobs announced the plea entered into today before U.S. District Judge Algenon L. Marbley.
A total of 20 individuals were indicted in the racketeering case with charges that included murders, attempted murders, drug trafficking, weapons offenses, witness tampering, extortion and robbery.
A United States District Court jury convicted five co-defendants of racketeering and murder in June. After a two-month trial, the group of defendants was convicted on all counts, which accounted for 10 of 14 previously unsolved murders. Defendants previously scheduled for a second trial have pleaded guilty to racketeering charges.
Acting U.S. Attorney Glassman commended the two-year long investigation by federal, state and local law enforcement agencies, including the FBI, DEA, ATF, Columbus Police, Franklin County Sheriff Zach Scott’s Office, Franklin County Prosecutor Ron O’Brien’s Office, Fairfield County Prosecutor Gregg Marx, Licking County Prosecutor Kenneth Oswalt, Muskingum County Prosecutor D. Michael Haddox, Ross County Prosecutor Matthew S. Schmidt, law enforcement leaders from those counties, officials of the Ohio Department of Rehabilitation and Correction, as well as Assistant U.S. Attorneys David DeVillers, Kevin Kelley and Brian Martinez, and Special Assistant U.S. Attorney Jimmy Lowe of Franklin County Prosecutor O’Brien’s Office, who are prosecuting the case.
Co-owner of Chicago Medical Transport Company Sentenced for Fraudulent Billing SchemeRead the Press Release
Springfield, Ill. – A Chicago woman who previously pled guilty to her role in a scheme to overbill Illinois’ Medicaid program has been sentenced. On Aug. 15, 2016, U.S. District Judge Sue E. Myerscough ordered Tina Kimbrough, 44, of Berwyn, Ill., to serve 30 months in federal prison. Kimbrough and Gregory D. Toran, 67, of Hazel Crest, Ill., owned IBT Transportation, LLC., a non-emergency medical transport company, during the period of the fraud conspiracy, from December 2005 to June 2011.
Toran was convicted of the conspiracy and seven counts of mail fraud following a bench trial before Judge Myerscough, who rendered her guilty verdicts in late July 2016. Kimbrough was also ordered to pay $4 million in restitution, due jointly and severally with Toran, who is scheduled to be sentenced on Nov. 14, 2016. Kimbrough is to self-report as directed by the federal Bureau of Prisons to begin serving her prison term.
In June 2015, Kimbrough pled guilty to participating in the conspiracy with Toran, as well as one count of mail fraud and one count of making false statements. As a result of the scheme, IBT fraudulently overbilled the state’s Medicaid program by an estimated $4.7 million for services not rendered, not rendered to the extent claimed, and for mileage well in excess of miles actually driven.
The charges were investigated by the Illinois State Police, Medicaid Fraud Unit; the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations; the Federal Bureau of Investigation; and the U.S. Postal Inspection Service. In addition, the Illinois Department of Health and Family Services, which administers the Medicaid program for the state of Illinois, assisted in the investigation. Assistant U.S. Attorneys Gregory K. Harris and Timothy A. Bass are prosecuting the case.