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15 August 2016
UPS Employee Charged in Puerto Rico-Based Cocaine Distribution SchemeRead the Press Release
BOSTON – A UPS employee was charged in U.S. District Court in Boston in connection with shipping cocaine from Puerto Rico to Massachusetts.
Jorge Carrasquillo-Ortiz, 41, of Toa Baja, Puerto Rico, was charged in a criminal complaint unsealed today with attempted possession with intent to distribute and attempted distribution of 500 grams or more of cocaine. On Aug. 11, 2016, Carrasquillo-Ortiz was arrested in Puerto Rico and was detained following an initial appearance in the District of Puerto Rico.
According to court documents, in March 2016, Carrasquillo-Ortiz was working at United Parcel Service (UPS) in Puerto Rico. On multiple occasions, Carrasquillo-Ortiz accepted large amounts of cash in exchange for arranging for boxes containing multiple kilograms of cocaine to bypass security and be loaded directly onto the plane to Massachusetts.
In June 2016, a cooperating witness made numerous recorded calls to Carrasquillo-Ortiz to arrange for the shipment of six kilograms of cocaine from Puerto Rico to Massachusetts. An undercover officer in Puerto Rico then provided Carrasquillo-Ortiz with a box that contained six kilograms of “sham” cocaine. Carrasquillo-Ortiz allegedly shipped this box to Massachusetts, where it was seized by investigators.
The charging statute provides for a sentence of no greater than 40 years in prison, a minimum of four years and no greater than a lifetime of supervised release and a fine of up to $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; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. This case was jointly investigated with the DEA’s Caribbean Division. The case is being prosecuted by Assistant U.S. Attorney Eric Rosen of Ortiz’s Narcotics and Money Laundering Unit.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Summary of the Justice Forum in DetroitRead the Press Release
***Photos Below***
In the wake of the recent tragedies in Baton Rouge, Louisiana; Dallas; and St. Paul, Minnesota, Attorney General Loretta E. Lynch convened the first in a series of regional Justice Forums on Aug. 3, 2016, at Wayne State University in Detroit, with regional stakeholders from the law enforcement, youth, faith, non-profit and civil rights communities. The Attorney General, along with other department officials, hosted the Justice Forum to create a working group setting for local community leaders, youth advocates, law enforcement, and state and local officials to critically examine police-community issues in their respective cities and regions and seek solutions together. Attorney General Lynch was also joined by U.S. Attorney Barbara McQuade of the Eastern District of Michigan, U.S. Attorney Patrick Miles of the Western District of Michigan, Assistant Attorney General Karol Mason of the Office of Justice Programs, head of the Civil Rights Division Vanita Gupta, Director Ron Davis of the Office of Community Oriented Policing Services (COPS Office), and Director Paul Monteiro of the Community Relations Service (CRS).
“Law enforcement agencies cannot provide effective policing without the trust of the communities they serve,” said U.S. Attorney McQuade. “The Justice Forum in Detroit gave stakeholders a chance to hear different perspectives, explain the challenges they face, and gain a deeper understanding for how police and community can work together to improve public safety and advance the cause of justice.”
During the working meeting, community members and stakeholders proposed ideas related to training and education, officer safety and wellness, community engagement, positive police-community encounters, diversity, data collection, crisis response, resources, transparency and officer accountability. Many of the ideas focused on strengthening the community from the ground up by building stronger ties between law enforcement and the community – including training for officers and the public on mental health, wellness, and implicit bias; promoting diversity in police departments to reflect their communities; better funding for public education; devoting more resources to community policing efforts; and engaging media to capture positive examples of police-community interactions.
In addition to the various policy ideas raised at the Detroit Justice Forum, below are a few examples demonstrating specific ways in which the local Detroit, Flint and Dearborn communities are working collaboratively to strengthen police-community relations and engagement.
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Establish and support groups like ALPACT (Advocates and Leaders for Police and Community Trust), which bring together police and community stakeholders on regular basis to discuss police and community relations, promote community trust, and reduce tension. ALPACT has met on a regular basis for 15 years, and has provided a forum to discuss police-related shootings and other issues that test police and community relationships. The ongoing relationships between ALPACT members provide a trusting environment where tensions can be voiced and diffused.
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For youth, create programs like the Michigan State Police Youth Leadership Academy, where young people can be exposed to careers in law enforcement and get to know police officers at a personal level as mentors.
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Create more law enforcement-cultural awareness groups, similar to BRIDGES (Building Respect in Diverse Groups to Enhance Sensitivity), which is a partnership between law enforcement agencies and leaders in the Arab and Muslim American communities in the metro-Detroit region. BRIDGES meets quarterly to provide a forum to address issues of mutual concern and to foster better understanding on topics ranging from cultural sensitivity to hate crimes; from police and community relations to law enforcement policies and procedures.
The Justice Forum series will continue over the next several months in cities across the nation. And in the coming months, the Department of Justice will release a Justice Forum After-Action Report outlining the specific recommendations presented at the regional working group discussions. The After-Action Report will provide a rubric for other communities across the country that are seeking ways to help build sustained positive engagement between community members, law enforcement, elected officials and other local stakeholders.
Copied below is a list of invited organizations and speakers that presented at the Justice Forum in Detroit.
Speakers:
Attorney General Loretta E. Lynch
U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan
Congressman John Conyers Jr. of the 13th District of Michigan
Detroit Mayor Mike Duggan
Detroit Police Chief James Craig
Dearborn Chief Ronald Haddad
Flint Police Chief Tim Johnson
Presentation Leaders:
Rev. Wendell Anthony, Detroit NAACP
Prosecutor Kym Worthy, Wayne County
Community leader Eva Garza DeWaelsche, SER Metro
Darnell Blackburn, Michigan Commission on Law Enforcement Standards
Marcell Payton, NSO Youth Initiative and MBK-Detroit
Invited Organizations:
Michigan Commission on Law Enforcement Standards
Michigan Association Chiefs of Police
Skillman Foundation, My Brother’s Keeper Detroit
American-Arab Anti-Discrimination Committee (ADC)
NAACP Detroit
New Starlight Baptist Church
Arab American Civil Rights League
Black Lives Matter
Grosse Pointe NAACP
DLIVE Program
Anti-Defamation League
Hudson-Webber Foundation
LGBT Detroit
Greater Grace Temple
Downtown Detroit Partnership
Neighborhood Services Organization
Wayne State University Center for Peace, Conflict Studies
Detroit Hispanic Development Corp.
Michigan Roundtable Diversity/Inclusion
Congress of Communities
New Detroit
Macomb NAACP
Black Family Development
National Action Network
2nd Ebenezer Church
American Civil Liberties Union
Sinai Hospital Trauma Intervention
Equality Michigan
High School and College Students
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Seven Defendants Sentenced in Extensive Drug Trafficking and Identity Theft SchemesRead the Press Release
Seven defendants were sentenced for their participation in extensive identity theft and drug trafficking schemes.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Juan J. Perez, Director, Miami-Dade Police Department, and Dexter M. Williams, Chief, Miramar Police Department, made the announcement.
On August 12, 2016, Eddie Elistin, a/k/a “Horse,” a/k/a “Edith Elistin,” was sentenced to 72 months in prison, to be followed by three years of supervised release. On July 28, 2016, Michael Descolline, a/k/a “Fat Mike,” was sentenced to 30 months in prison, to be followed by three years of supervised release. On July 14, 2016, Odenia Samson, a/k/a “Pimp,” was sentenced to 122 months in prison, to be followed by five years of supervised release. On May 31, 2016, Ensi Prudent, a/k/a “Chuck,” was sentenced to 66 months in prison, to be followed by three years of supervised release. On May 16, 2016, Saintana Daniel was sentenced to 15 months in prison, to be followed by three years of supervised release. On July 14, 2016, Ingrinesia Mathis, a/k/a “Bri,” was sentenced to a year and a day in prison, to be followed by three years of supervised release.
Defendant Samson previously pled guilty to conspiring to possess cocaine and Ethylone with the intent to distribute, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and (b)(1)(C); possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i); and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
Defendant Prudent previously pled guilty to possession of cocaine with the intent to distribute, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and (b)(l)(C); and possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(l)(A)(i). Defendant Daniel previously pled guilty to conspiring to possess with the intent to distribute cocaine, in violation of Title 21, United States Code, Sections 846(a)(1) and 841(b)(1)(C). Defendants Elistin, Descolline, and Mathis pled guilty to conspiring to possess fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(b)(2). Elistin and Descolline also previously pled guilty to one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, Samson sold narcotics to Prudent and Daniel, and Prudent also sold narcotics to other individuals for Samson. Samson and Prudent each possessed a firearm in furtherance of their drug trafficking crimes.
Court documents further indicate that during the execution of search warrants, law enforcement agents discovered more than 3,000 individual victims’ personal identification information (PII) including names, dates of birth, and Social Security numbers, at residences were Samson, Mathis, Elistin, and Descolline lived. Law enforcement agents also intercepted calls where Elistin and Samson discussed using the PII of victims and incarcerated individuals to receive fraudulent tax refunds.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, Miami-Dade Police Department, and Miramar Police Department. The case is being prosecuted by Assistant United States Attorney Jamie R. Garman.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Second Trafficker Convicted of Distributing Dangerous Counterfeit Viagra and CialisRead the Press Release
HOUSTON – A 47-year-old Pennsylvania man has entered a guilty plea to charges related to a conspiracy to traffic in counterfeit Viagra and Cialis and for smuggling, trafficking and introducing the misbranded prescription drugs into interstate commerce, announced U.S. Attorney Kenneth Magidson along with Acting Special Agent in Charge Charles L. Grinstead of the Food and Drug Administration - Office of Criminal Investigations (FDA-OCI) and Acting Special Agent in Charge Sean McElroy of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
“The FDA regulates pharmaceuticals in the legitimate medical products supply chain to ensure that U.S. consumers have access to safe and effective medications,” said Grinstead. “Those who attempt to circumvent FDA’s regulation place the public’s health at risk. We will continue to defend the consumer’s right to medications that are safe, effective and properly labeled, rather than false, potentially harmful substitutes.”
Victor Lamar Coates, of Philadelphia, Pennsylvania, pleaded guilty to conspiring with convicted co-conspirator Martez Gurley, 41, of Napa, California, to traffic in counterfeit and misbranded Viagra and Cialis, and introducing those drugs in interstate commerce. Both drugs are prescription medications. Coates admitted to illegally distributing at least 10,288 counterfeit and misbranded tablets, including tablets he illegally imported directly from China. FDA, Eli Lilly and Company and Pfizer Inc. conducted testing on the counterfeit tablets which revealed the tablets did not contain the ingredients listed on the labeling. Some of the Viagra tablets contained the compound 2-MBT, an ingredient not part of authentic Viagra.
U.S. District Judge David Hittner accepted the plea today and set sentencing for Nov. 8, 2016. Gurley was convicted in June 2015 for his role in the conspiracy and is scheduling for sentencing Nov. 22, 2016.
Each faces up to five years in prison for the conspiracy and for introducing misbranded drugs into interstate commerce as well as up to three years for introducing misbranded drugs into commerce. FDA-OCI and HSI conducted the investigation. Assistant U.S. Attorney Julie Redlinger is prosecuting the case.
San Benito Man Arrested for Posing as LVNRead the Press Release
McALLEN, Texas ‐ A San Benito man falsely holding himself out as a Licensed Vocational Nurse (LVN) has been charged and arrested for aggravated identity theft and making false statements, announced U.S. Attorney Kenneth Magidson.
Juan Manuel Perez, 35, turned himself in to authorities today. He is expected to make his initial appearance before U.S. Magistrate Judge U.S. Magistrate Judge Dorina Ramos at 10:00 a.m. tomorrow.
According to charges, Perez obtained employment with Cleveland Health Care LLC in McAllen in January 2015, falsely claiming to be an LVN. Perez presented a license number, but it allegedly belonged to another individual of the same name. Perez is not licensed by the Texas Board of Nursing and is not a LVN, according to the criminal complaint.
The charges allege that Perez posed as an LVN, conducted patient home visits and provided medical services from January 2015 through July 2016 while employed with Cleveland Health Care.
The criminal complaint further alleges Perez had utilized the stolen identification to gain employment with various other area health care institutions including Harlingen Medical Center and Valley Baptist Medical Center.
If convicted of making false statements relating to health care matters, Perez faces up to five years in federal prison and a possible $250,000 maximum fine. The aggravated identity theft charge carries a mandatory two‐year additional prison term, upon conviction, which must be served consecutive to any other prison sentence.
The Department of Health and Human Services‐Office of Inspector General, FBI and Health and Human Services Commission conducted the investigation. Assistant U.S. Attorneys Andrew Swartz and Michael Day are prosecuting the case.
A criminal complaint is an accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Roaming Shores man sentenced to 21 years in prison for drug and firearms crimesRead the Press Release
A Roaming Shores man was sentenced to more than 21 years in prison for federal drug and firearm crimes, law enforcement officials said.
James E. Brooks, 41, was previously found guilty in U.S. District Court on six counts, including distribution of heroin and crack cocaine, possession a firearm during a drug trafficking crime and being a felon in possession of firearms and ammunition.
Brooks still has charges pending in state court related to the death of Alesha Bell.
Brooks distributed crack cocaine and heroin in August 2015, and possessed a firearm during those crimes, according to court documents.
On August 20, 2015, Brooks possessed a Walther, model P22, .22 Caliber Pistol; a Winchester, model 50, 12 gauge shotgun; and a Winchester, model 120, 12 gauge shotgun, despite previous felony convictions including drug abuse, burglary, aggravated robbery with a firearm specification, felonious assault, escape, and felonious assault with a firearm specification, all in the Trumbull County Court of Common Pleas, according to court documents.
“This defendant has spent most of his adult life terrorizing people,” U.S. Attorney Carole Rendon said. “This long prison sentence is appropriate given this defendant’s actions.”
“I would like to recognize the dedicated work of the TAG Task Force, the Ashtabula County Sheriff’s Office, and the Ashtabula County Prosecutor’s Office,” Acting ATF Special Agent in Charge Brad Earman said. “Cooperation with our law enforcement partners multiplies our efforts to remove violent criminals from the streets and make our communities safer.”
“I very much appreciate the cooperative partnership that exists between my office and the US Attorney’s Office, along with the various state and federal law enforcement agencies,” said Ashtabula County Prosecutor Nicholas M. Iarocci. “This case is a perfect example of such partnership, as the charges were divided and coordinated in such a way so as to maximize the amount of incarceration which Mr. Brooks could receive. A number of serious charges remain pending in the Ashtabula County Common Pleas Court against Mr. Brooks involving the death of Alesha Bell, including involuntary manslaughter, human trafficking, kidnapping, tampering with evidence, compelling prostitution and gross abuse of corpse, along with several drug possession charges.”
This case is being prosecuted by Assistant U.S. Attorney Jason M. Katz following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ashtabula County Sheriff’s Office, the Warren Police Department, the Ohio State Highway Patrol, Ohio BCI&I and the TAG Law Enforcement Task Force.
Registered Sex Offender Sentenced for Sexual Exploitation of a TeenRead the Press Release
BOSTON – A registered sex offender was sentenced today in U.S. District Court in Springfield in connection with persuading a 16-year-old boy to travel to New York to engage in sexual activity.
Ronald S. Brown, 53, of Williamstown, Mass., was sentenced by U.S. District Court Judge Mark G. Mastroianni to 15 years in prison and 10 years of supervised release. In November 2015, he pleaded guilty to one count of interstate travel with intent to engage in illicit sexual conduct with a minor and one count of possession of material involving the sexual exploitation of minors.
Brown, a registered sex offender based upon a prior conviction for a sexual assault of a 14 year-old, engaged in thousands of online interactions with a 16-year-old boy between Dec. 27, 2012 and Jan. 19, 2013, to persuade him to run away from his Midwestern home to engage in sexual activity. On Jan. 7, 2013, Brown sent the boy a one-way ticket to fly to Newark International Airport in New Jersey, and on Jan. 19, 2013, Brown picked the boy up at the Newark airport, and then transported him to New York to engage in sex. On three separate dates, Brown also sexually exploited the teenager by producing visual images of the minor engaging in lewd and lascivious conduct.
The boy was recovered in New York after his mother alerted police that her son was missing and believed to be meeting with Brown. During an interview on Jan. 20, 2013, Brown falsely told a federal agent that he believed the child to be 18 years old.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. The case was investigated with assistance from the Massachusetts State Police, the Williamstown Police Department and the New York State Police. It was prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Portland Man Sentenced to 14 Years for Robbing Five Financial InstitutionsRead the Press Release
Contact: James W. Chapman, Jr.
Assistant United States Attorney
Tel. (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II, announced that Jimmy Odong, 26, of Portland was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to 14 years in prison for robbing three credit unions and two banks in 2015. He was also order to pay $26,790 in restitution. The charges arose from the robberies of University Credit Union in Portland on May 14, 2015; TruChoice Federal Credit Union in Portland on May 26, 2015; CPort Credit Union and Bank of America, both in Portland, on June 19, 2015; and Key Bank in Freeport, Maine, on July 17, 2015.
In the robberies, Odong was captured on bank security cameras wearing a hat or wig that partially disguised his appearance, he demanded cash from tellers, and he brandished what appeared to be a gray or black semiautomatic handgun. Odong has been in custody since July 23, 2015, when the FBI and Portland Police arrested him in Portland for the Key Bank robbery after a partial palm print of Odong was recovered from a stolen vehicle he used in the robbery.
Before imposing sentence, Chief Judge Torresen stated that bank robberies such as the ones committed by Odong are extremely serious offenses, especially when a weapon is brandished. She stated that the tellers and the customers often suffer emotional trauma that continues well beyond the date of the crime. Judge Torresen also told Odong that his crimes affected the entire banking industry in this area because no bank felt safe.
The investigation was conducted by Federal Bureau of Investigation (“FBI”); the Freeport, Portland and Brunswick Police Departments; the Maine State Police; and the Southern Maine Gang Task Force comprised of agents and officers from the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Drug Enforcement Administration; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Portland, South Portland, Lewiston and Biddeford Police Departments. U.S. Attorney Delahanty praised the cooperation among these law enforcement agencies noting that “these bank robberies were quickly solved because local, state, and federal law enforcement agencies worked closely together.”
Oak Brook Doctor Sentenced to Two Years in Prison in Connection with Kickback Scheme at Sacred Heart HospitalRead the Press Release
CHICAGO — A federal judge sentenced an Oak Brook doctor to two years in prison for illegally receiving benefits in exchange for referring elderly patients to Sacred Heart Hospital on Chicago’s West Side.
DR. VENKATESWARA R. “V.R.” KUCHIPUDI was convicted in March on one count of conspiracy to defraud the United States, and nine counts of illegally soliciting or receiving benefits in return for referrals of patients covered under a federal health care program.
U.S. District Judge Matthew F. Kennelly imposed the sentence Friday in federal court in Chicago.
“Medical professionals of every kind must know that patient need should be the only factor influencing decisions concerning patient care,” Assistant U.S. Attorney Joel M. Hammerman argued in the government’s sentencing memorandum. “Patients are not commodities to be bartered or monetized.”
Dr. Kuchipudi, 69, was one of ten defendants convicted in the multi-year investigation of the now-shuttered hospital at 3240 W. Franklin Blvd. in Chicago. From 2001 through April 2013, Sacred Heart executives conspired to pay kickbacks and bribes to physicians to induce them to refer patients for services that would be reimbursed by Medicare and Medicaid. The scheme earned Sacred Heart millions of dollars in reimbursements from Medicare and Medicaid.
The prior convictions include EDWARD NOVAK, the hospital’s owner and chief executive officer; ROY PAYAWAL, the chief financial officer; CLARENCE NAGELVOORT and ANTHONY J. PUORRO, chief operating officers; and four other physicians. Sacred Heart closed in 2013 in the aftermath of a federal law enforcement search of the hospital and the arrests of principal executives and Dr. Kuchipudi.
The investigation was carried out by the Medicare Fraud Strike Force, which is part of the Health Care Fraud Prevention & Enforcement Action Team, a joint initiative between the U.S. Justice Department and the U.S. Department of Health and Human Services to prevent fraud and to enforce anti-fraud laws around the country. Dozens of defendants have been charged in numerous fraud cases since the strike force began operating in Chicago in 2011.
Evidence at Dr. Kuchipudi’s five-week trial revealed that he was one of Sacred Heart’s most prolific sources of patient referrals. In exchange for his referrals, Sacred Heart provided Dr. Kuchipudi with free labor in the form of a physician, physician assistants and nurse practitioners. The free labor was provided not only inside Sacred Heart but also in Chicago-area nursing homes where many of Dr. Kuchipudi’s patients resided. Sacred Heart allowed Dr. Kuchipudi to bill Medicare and Medicaid for the services of the physician assistants and nurse practitioners as if he employed them himself.
The conviction was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Lamont Pugh III, Special Agent-in-Charge of the Chicago Region of the U.S. Department of Health and Human Services Office of Inspector General; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government is represented by Mr. Hammerman and Assistant U.S. Attorneys Diane MacArthur, Kelly Greening and Brian Wallach.
North Park Gang Member Sentenced to 11 years in Prison for His Leadership Role in a Racketeering Conspiracy Involving Sex Trafficking and ProstitutionRead the Press Release
NEWS RELEASE SUMMARY – August 15, 2016
Assistant U.S. Attorneys Alessandra P. Serano (619) 546-8104 or Joseph J.M. Orabona (619) 546-7951
SAN DIEGO, CA – A member of the Black Mob/Skanless Enterprise, which consisted of two North Park-based criminal street gangs, was sentenced to 11 years in prison today for his leadership role in a racketeering enterprise involving sex trafficking of minors and adults as well as assault and robbery.
Aaron Dwayne Pittman, aka “Q-Tip” or “Lil’ Q-Tip,” acting as a pimp, supervised, managed, and maintained adult females as they engaged in prostitution in San Diego, Phoenix, Orlando, Honolulu, and other cities throughout the United States. He was sentenced on the charge of RICO conspiracy before U.S. District Court Judge John A. Houston.
As detailed in his plea agreement, Pittman, a member of the Black Mob criminal street gang, conspired with other members of the Black Mob/Skanless Enterprise from at least the late 1990s through December 2013 to engage in a pattern of racketeering activities, including sex trafficking, robbery, and assault, in San Diego County and elsewhere in the United States. In carrying out the conspiracy, Pittman purchased flights, posted online ads, and promoted prostitution of females working for him – which Pittman referred to as “Team Tip.” As part of the conspiracy, Pittman admitted he robbed one of his prostitutes and forcefully assaulted another individual outside of a night club in San Diego. Pittman also admitted that the Black Mob/Skanless Enterprise enriched its members through recruiting and maintaining minor and adult females to work as prostitutes.
In imposing the 11-year sentence, Judge Houston stated that Pittman’s conduct was “not victimless criminal activity.” Judge Houston also noted that Pittman made a “lavish living out of pimping” and that Pittman had “little regard for the women who [he] controlled.” In addition to sentencing Pittman to 11 years in prison, Judge Houston also ordered the forfeiture of several vehicles, computers, other electronic devices, and pimp-related paraphernalia (i.e., ornate cups known as “pimp cups” which are commonly possessed by pimps as symbols of their status). Following his release from prison, Pittman will be placed on three years of supervised release.
“Sex trafficking is a crime that has long-lasting and devastating effects on the women and girls who are controlled by pimps like Mr. Pittman,” said U.S. Attorney Laura Duffy. “The 11-year sentence imposed for one of the leaders of the Black Mob criminal street gang demonstrates the seriousness of this crime and will hopefully deter other criminal street gangs from engaging in such activity.”
“This sentence sends a message that lives are not to be bought and sold,” said FBI Special Agent in Charge Eric S. Birnbaum. “The FBI, along with our partners, work tirelessly to rescue those forced into this modern day slavery and hold accountable those who wish to profit from the abuse of others. If you have information about human trafficking, we urge you to contact the Child Exploitation Task Force/San Diego FBI at 858-320-1800; or the National Human Trafficking Resource Center at 1-888-373-7888.”
The federal racketeering statute known as “RICO” historically has been used to prosecute mobsters and organized crime, but federal prosecutors have been using the statute on street gangs in recent years because the gangs are increasingly acting as organized criminal enterprises especially in sex trafficking and prostitution.
This case was the result of the collaborative work by the Federal Bureau of Investigation’s Child Exploitation Task Force and the San Diego Police Department.
DEFENDANT Criminal Case No. 13CR4510-JAH
Aaron Dwayne Pittman (1) Age: 34 San Diego, CA
aka “Q-Tip,” “Lil’ Q-Tip”
SUMMARY OF CHARGES THAT DEFENDANT VEGA PLEADED GUILTY TO:
Count 1 – Title 18, United States Code, Section 1962(d) B Conspiracy to Conduct Enterprise Affairs Through a Pattern of Racketeering Activity
Maximum penalties: 20 years in prison, $250,000 fine, 3 years of supervised release.
INVESTIGATING AGENCIES
Federal Bureau of Investigation
San Diego Police Department
Nitro meth dealer pleads guilty to Federal drug crimeRead the Press Release
CHARLESTON, W.Va. – A Nitro man pleaded guilty today to a federal methamphetamine charge, announced United States Attorney Carol Casto. Shawn Keathley, 26, entered his guilty plea to distribution of methamphetamine.
Keathley admitted that on March 20, 2014, he sold methamphetamine to a confidential informant working with the Metropolitan Drug Enforcement Network Team. The drug deal took place in the parking lot of a restaurant in Cross Lanes. Keathley further admitted to having distributed methamphetamine for approximately five months in the Nitro area.
Keathley faces up to 20 years in federal prison when he is sentenced on November 30, 2016.
The Metropolitan Drug Enforcement Network Team, the Kanawha County Sheriff’s Department, and the West Virginia State Police conducted the investigation. Assistant United States Attorney John J. Frail is responsible for the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Milwaukie Man Sentenced to Prison for Stealing from his Disabled CousinRead the Press Release
PORTLAND, Ore. – The former legal guardian for his cognitively disabled cousin, was sentenced to 30 months’ imprisonment for stealing more than $570,000 in annuity payments that were intended for the cousin’s care. Michael R. Braun, 68, was sentenced by U.S. District Court Judge Anna Brown on Monday for his commission of wire fraud that was ongoing for more than 22 years. Braun was also ordered to pay $573,604 restitution and serve a three-year term of supervised release.
According to court records, prior to 1984, Braun’s cognitively-disabled cousin, A.M., was residing with his parents in California. A.M.’s father was a retired Navy commander, and had purchased an annuity through the Defense Finance and Accounting Services (DFAS) on behalf of A.M. in the event of the father’s death. In 1984, when A.M. was 22 years-old, both of A.M.’s parents died within a few months of each other. Braun, then 37 years old, was appointed as the legal guardian of A.M., and brought A.M. to Oregon. As A.M.’s legal guardian, Braun became the recipient of the DFAS annuity payments on A.M.’s behalf, and was required to use the payments for A.M.’s care, and to notify DFAS if he was no longer A.M.’s guardian.
Shortly after bringing A.M. to Oregon in 1984, defendant placed A.M. in the Fairview Training Center, and defendant thereafter had limited contact with him. Social service notes from 1984 state that "The Brauns are [A.M.’s] only family and are very concerned and active people." Case-worker notes in 1989 state that Braun had not been very involved with A.M.
In 1990, Braun was discharged as A.M.’s guardian by the Circuit Court of Washington County; however, Braun failed to notify DFAS that he had been removed as A.M.’s legal guardian. Between January 1990 and February 2013, Braun submitted a Certificate of Eligibility to DFAS each year certifying he was A.M.’s legal guardian, when in fact he knew he was not and knew he was not using the annuity payments for A.M.’s care. Additionally, in 1998, Braun directed DFAS to deposit A.M.’s annuity payments directly into Braun’s bank account. As a result of Braun’s repeated false statements and concealments, DFAS continued to deposit A.M.’s annuity payments each month into Braun’s own bank account, with the payments ranging from $1,500 to $2,700.
Between January 1990 and December 2012, Braun received $573,604 in annuity payments which he converted to his own use.
A.M. has resided in residential facilities for the past 30 years with only Social Security benefits as income.
According to court records, A.M.’s current guardian was alerted to the fraud when A.M. received a notice from the Internal Revenue Service advising A.M. that taxes were owed on A.M.’s income. After further inquiry, the guardian learned of the substantial annuity payments that A.M. had not received and notified police.
Braun pleaded guilty to the theft in March and argued for a probationary sentence with home detention.
In its court filings, the government argued for a prison sentence, stating that Braun’s criminal conduct was ongoing for more than 22 years, and that since his guardianship of A.M. was terminated in 1990, he had stolen his cousin’s benefits more than 250 times as he repeatedly converted A.M.’s funds to his own use each month. The government further argued that Braun had taken advantage of his cousin’s vulnerability and inability to communicate while betraying the trust of his cousin, uncle, and DFAS.
The government further stated "one of a parent’s greatest fears is whether a surviving child will be properly cared for in the event of the parent’s death. Defendant’s uncle took great measures to ensure that his son – who would require life-long care – had sufficient funds and a trusted family member to care for him. In return, defendant abandoned his cousin financially as well as emotionally, at a time when A.M. had no other family to care for him."
During the sentencing proceedings, the court heard from A.M.’s current Guardian Care Manager who stated he was saddened by the many missed possibilities for A.M. because of his limited resources, and questioned the quality of life A.M. could have had if he had received the funds that were intended for his special needs.
While imposing the sentence, Judge Brown described the repetitive nature of the offense and stated that she had "not seen anything comparable" to Braun’s fraud during her years as a judge and seeing many fraudulent schemes. Judge Brown also stated that the extraordinary breach of trust warranted a prison sentence, and that a probationary sentence would not reflect the seriousness of the offense.
The case was investigated by the Washington County Sheriff’s Office, and prosecuted by Special Assistant United States Attorney Helen Cooper as part of a partnership venture between the Seattle Region, SSA Office of the General Counsel and the U.S. Attorney’s Office in Portland, Oregon.
Miami-Dade Resident Convicted of Illegally Possessing Ammunition After Shooting at the Liberty Square Housing ComplexRead the Press Release
A Miami-Dade resident was convicted by a jury in federal court for being a felon in possession of ammunition, after he shot an AK-47 firearm in the Liberty Square Housing Complex.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Division, and Rodolfo Llanes, Chief, City of Miami Police Department (MPD), made the announcement.
Willie Wilcher, 35, of Miami, was convicted after a three-day trial for being a felon in possession of ammunition and is scheduled to be sentenced before U.S. District Judge Donald M. Middlebrooks on October 11, 2016.
According to evidence presented at trial, on the afternoon of December 29, 2015, Wilcher walked into a convenience store in Liberty City with an AK-47 and was caught on video threatening to kill other individuals. Wilcher then left the store, got into his car, and drove across the street to the Liberty Square Housing Complex and immediately began shooting the firearm. Two nearby officers heard the gunshots and rushed to the scene, where law enforcement recovered multiple types of ammunition, including six 7.62 x 39 mm (AK47) shell casings in the road, and Wilcher’s car, which had crashed after knocking down a cement electrical pole. Officers also observed several bullet holes in the passenger side door and rear window of Wicher’s car, consistent with shots being fired from inside the vehicle. Fortunately, no one was injured during the shooting.
A subsequent investigation revealed that, when Wilcher exited his vehicle and fled the scene, he left behind a rental receipt in his sister’s name, a parcel addressed to him, his iPhone with his fingerprint, and his fingerprints on the driver’s side door of the car. He also left behind eleven 7.62 x 39 mm (AK47) shell casings in the vehicle. Wilcher was previously convicted of a felony and was not legally permitted to possess the recovered ammunition.
Mr. Ferrer commended the investigative efforts of the FBI and MPD. Mr. Ferrer also thanked the Miami Dade Police Department for their assistance in this matter. This case is being prosecuted by Assistant U.S. Attorneys Miesha Shonta Darrough and Jonathan Kent Osborne.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Man Pleads Guilty to Fraud Charges for Role in $4.2 Million Home Health Care SchemeRead the Press Release
A Miami man pleaded guilty today to charges related to his role in a $4.2 million home health care fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) Miami Regional Office made the announcement.
Ramon Collado Gonzalez, 56, pleaded guilty to one count of conspiracy to defraud the United States and make false statements in connection with a federal health care benefit program before U.S. District Judge Joan A. Lenard of the Southern District of Florida. Sentencing has been scheduled for Oct. 24, 2016.
As part of his guilty plea, Collado Gonzalez admitted that in approximately March 2014, he was recruited by Mildrey Gonzalez and Milka Alfaro, the owners of Golden Home Health Care Inc. (Golden), a home health care agency in Miami, to falsely and fraudulently represent himself to be Golden’s owner. Collado Gonzalez further admitted that in return for hiding Mildrey Gonzalez’s and Alfaro’s ownership interests, he received a monthly payment and periodic bonuses from them, despite the fact that he did not do any actual work for Golden. Instead, he simply signed Medicare applications and other documents for the purpose of facilitating submission of claims to Medicare and concealing Mildrey Gonzalez’s and Alfaro’s ownership interests, he admitted.
According to admissions made as part of the defendant’s plea, Golden received approximately $4.2 million from Medicare as a result of false and fraudulent claims submitted during the time Collado Gonzalez served as its nominee owner.
In June 2016, Mildrey Gonzalez and Alfaro were separately charged in an indictment with conspiracy to commit health care fraud, health care fraud, conspiracy to defraud the United States and pay health care kickbacks, conspiracy to commit money laundering and money laundering, among other charges.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Fraud Section Trial Attorneys L. Rush Atkinson and Lisa H. Miller are prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,900 defendants who have collectively billed the Medicare program for more than $10 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Massac County Man Sentenced for Methamphetamine OffenseRead the Press Release
On August 10, 2016, Brandon L. Watson, a/k/a "Dubb," 29, of Metropolis, was sentenced for his involvement in a methamphetamine offense, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Watson, who had previously pled guilty to a one-count superseding indictment charging conspiracy to distribute more than 50 grams of methamphetamine, was sentenced to 151 months’ imprisonment, 4 years’ supervised release, and was fined $200.00. The offense occurred between May 2015 and October 26, 2015, in Williamson and Massac Counties. Evidence at the plea and sentencing hearings established that Watson was involved with co-defendant Gary Skinner and others in distributing methamphetamine, in the form of "ice." Ice is methamphetamine which has a purity level of at least 80%. Skinner, who was residing in St. Louis, was delivering multi-ounce amounts of ice to Watson for distribution in the Metropolis area. On October 26, 2015, Skinner’s vehicle was stopped on I-57 in Williamson County for a traffic violation. During a vehicle search, officers located over 200 grams of ice, which Skinner was going to deliver to Watson. Later laboratory analysis confirmed that the ice had purity levels between 98% - 100%. At sentencing, the district court determined that Watson was responsible for the distribution of more than 907 grams of ice. Skinner has pled guilty to his role in the methamphetamine conspiracy and is currently being held without bond pending an August 24, 2016, sentencing hearing.
The investigation was conducted by the Southern Illinois Enforcement Group, Illinois State Police, and Drug Enforcement Administration. The Massac County States Attorney’s Office also assisted in the investigation.
Mammoth Lakes Doctor Pleads Guilty to Removing Archeological ResourcesRead the Press Release
FRESNO, Calif. — Jonathan Cornelius Bourne, 59, of Mammoth Lakes, pleaded guilty today to unauthorized transportation of archeological resources and unauthorized excavation, removal, damage, or defacement of archeological resources, Acting U.S. Attorney Phillip A. Talbert announced.
On September 17, 2015, a federal grand jury returned an indictment against Bourne, charging him with violations of the Archeological Resources Protection Act. Bourne had been collecting artifacts and archeological resources since 1994. He documented each item and has voluntarily turned over to the government an estimated 20,000 archeological items that he had collected from public lands. Bourne has agreed to pay $249,372 in restitution to the United States.
According to the plea agreement, on October 14, 2010, Bourne altered a small prehistoric site, cremation site, and burial cairns in the Humboldt-Toiyabe National Forest in Nevada. He removed glass trade beads and transported them to his home in Mammoth. On January 10, 2011, Bourne altered a large prehistoric site in Death Valley National Park and removed a tool made from a bighorn sheep horn and three incised stone tablets, which were found in Bourne’s home.
This case is the product of an investigation by the United States Forest Service, the National Park Service, and the Bureau of Land Management. Assistant United States Attorney Laurel J. Montoya is prosecuting the case.
Bourne is scheduled to be sentenced on November 7, 2016, by U.S. District Court Judge Lawrence J. O’Neill. Bourne faces a maximum statutory penalty of two years in prison and a $20,000 fine for each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Justice Department Settles Immigration-Related Discrimination Claim Against San Diego Staffing CompanyRead the Press Release
The Justice Department reached an agreement today with TEG Staffing Inc., also known as Eastridge Workforce Solutions, a temporary staffing agency headquartered in San Diego, to resolve allegations that their Mira Mesa, California, office discriminated against work-authorized non-U.S. citizens in violation of the Immigration and Nationality Act (INA).
The department’s investigation found that from at least March 2014 until at least September 2015, Eastridge had a pattern or practice of requesting specific immigration documents from non-U.S. citizens for the Form I-9 and E-Verify processes. In contrast, Eastridge allowed U.S. citizens to present whichever valid documents they wanted to present to prove their work authorization. Under the INA, all workers, including non-U.S. citizens, must be allowed to choose whichever valid documentation they would like to present from the Lists of Acceptable Documents to prove their work authorization, such as a driver’s license and unrestricted Social Security card. It is unlawful for an employer to limit employees’ choice of documentation because of their citizenship or immigration status.
Under the terms of the settlement agreement, Eastridge will pay $175,000 in civil penalties, and among other provisions, will undergo department monitoring and review of its processes for verifying the work authorization of newly hired employees.
“Staffing agencies and employers must comply with federal law to ensure they don’t discriminate against lawful, authorized U.S. workers,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department's Civil Rights Division. “Workers who get a job through a staffing agency should not confront unfair and unlawful barriers to joining the workforce and contributing to our economy.”
The Civil Rights Division’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. The law prohibits, among other things, citizenship, immigration status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices in employment eligibility verification; retaliation and intimidation.
This matter was handled by Equal Opportunity Specialists Tran-Chau Le and Abigail Olson, and Senior Trial Attorney Liza Zamd of the OSC.
To learn more about the protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php; email [email protected] or visit OSC’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they have been subjected to different documentary requirements based on their citizenship, immigration status or national origin; or discrimination based on their citizenship, immigration status or national origin in hiring, firing or recruitment or referral, should contact OSC’s worker hotline for assistance.
Eastridge Settlement
Justice Department Files Lawsuit Against United Airlines for Violating Employment Rights of U.S. Air Force ReservistRead the Press Release
WASHINGTON – The Justice Department filed a complaint today alleging that United Airlines Inc. violated the employment rights of U.S. Air Force Reservist Lieutenant Colonel Daniel Fandrei under the Uniformed Services Employment and Reemployment Rights Act (USERRA).
According to the complaint, United violated USERRA by denying Fandrei employment benefits during his military leave that it grants to other employees for similar types of leave. Specifically, the complaint alleges that United failed to credit Fandrei with sick leave for his active duty deployment in 2012 and 2013. During that time, Fandrei was mobilized as a KC-10 pilot in Southwest Asia. Fandrei served his country as part of the Air Force from 1990 until 2016.
“Individuals who serve bravely in our armed forces should be treated fairly by their employers while they are actively deployed,” said Principal Deputy Associate Attorney General Bill Baer. “Through the department’s newly-created Servicemembers and Veterans Initiative, we will continue to build on our strong ties with federal partners and continue using every tool at our disposal to protect the rights of the men and women who serve in our armed forces.”
“USERRA ensures that servicemembers like Lt. Col. Fandrei who answer our nation’s call to duty don’t return to civilian life and find their employment benefits denied and their civil rights violated,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Department of Justice will continue to vigorously enforce the law to safeguard the rights of those who defend our country and protect our freedom.”
“Lt. Col. Fandrei has made many sacrifices to serve our nation honorably, including spending months away from his job and family,” said U.S. Attorney Zachary T. Fardon of the Northern District of Illinois. “When our servicemembers are deployed in the service of our country, they are entitled to retain their civilian employment and benefits, and to the protections of federal law that prevent them from being subject to discrimination based upon their military obligations.”
The lawsuit filed by the United States seeks damages equal to the amount of Fandrei’s lost benefits caused by United’s failure to comply with USERRA. It also seeks an order requiring United to comply with all provisions of USERRA.
USERRA protects the rights of uniformed servicemembers to retain their civilian employment prior to, during and following absences due to military service obligations, and provides that servicemembers shall not be discriminated against because of their military obligations. Under USERRA, the department has authority to represent a servicemember if the department is satisfied that the servicemember is entitled to the rights or benefits being sought.
Fandrei initially filed a complaint with the Department of Labor’s Veterans’ Employment and Training Service, which investigated this matter and, after resolution failed, referred it to the Justice Department’s Civil Rights Division. This lawsuit followed as a collaborative initiative between the Civil Rights Division and the U.S. Attorney’s Office of the Northern District of Illinois. The Justice Department has prioritized the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the department’s websites at www.usdoj.gov/crt/emp and www.servicemembers.gov, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.
Complaint
Justice Department Files Lawsuit Against United Airlines for Violating Employment Rights of U.S. Air Force ReservistRead the Press Release
The Justice Department filed a complaint today alleging that United Airlines Inc. violated the employment rights of U.S. Air Force Reservist Lieutenant Colonel Daniel Fandrei under the Uniformed Services Employment and Reemployment Rights Act (USERRA).
According to the complaint, United violated USERRA by denying Fandrei employment benefits during his military leave that it grants to other employees for similar types of leave. Specifically, the complaint alleges that United failed to credit Fandrei with sick leave for his active duty deployment in 2012 and 2013. During that time, Fandrei was mobilized as a KC-10 pilot in Southwest Asia. Fandrei served his country as part of the Air Force from 1990 until 2016.
“Individuals who serve bravely in our armed forces should be treated fairly by their employers while they are actively deployed,” said Principal Deputy Associate Attorney General Bill Baer. “Through the department’s newly-created Servicemembers and Veterans Initiative, we will continue to build on our strong ties with federal partners and continue using every tool at our disposal to protect the rights of the men and women who serve in our armed forces.”
“USERRA ensures that servicemembers like Lt. Col. Fandrei who answer our nation’s call to duty don’t return to civilian life and find their employment benefits denied and their civil rights violated,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Department of Justice will continue to vigorously enforce the law to safeguard the rights of those who defend our country and protect our freedom.”
“Lt. Col. Fandrei has made many sacrifices to serve our nation honorably, including spending months away from his job and family,” said U.S. Attorney Zachary T. Fardon of the Northern District of Illinois. “When our servicemembers are deployed in the service of our country, they are entitled to retain their civilian employment and benefits, and to the protections of federal law that prevent them from being subject to discrimination based upon their military obligations.”
The lawsuit filed by the United States seeks damages equal to the amount of Fandrei’s lost benefits caused by United’s failure to comply with USERRA. It also seeks an order requiring United to comply with all provisions of USERRA.
USERRA protects the rights of uniformed servicemembers to retain their civilian employment prior to, during and following absences due to military service obligations, and provides that servicemembers shall not be discriminated against because of their military obligations. Under USERRA, the department has authority to represent a servicemember if the department is satisfied that the servicemember is entitled to the rights or benefits being sought.
Fandrei initially filed a complaint with the Department of Labor’s Veterans’ Employment and Training Service, which investigated this matter and, after resolution failed, referred it to the Justice Department’s Civil Rights Division. This lawsuit followed as a collaborative initiative between the Civil Rights Division and the U.S. Attorney’s Office of the Northern District of Illinois. The Justice Department has prioritized the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the department’s websites at www.usdoj.gov/crt/emp and www.servicemembers.gov, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.
United Airlines Complaint
Jeffrey E. Thompson Sentenced for Conspiring to Violate District of Columbia Campaign Finance LawRead the Press Release
WASHINGTON - Jeffrey E. Thompson was sentenced today to three months of incarceration, to be followed by 90 days of home confinement, for his involvement in a scheme in which he and his companies secretly channeled about $3.3 million in illegal contributions to at least 28 political candidates and their campaigns.
The sentencing was announced by U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI Washington Field Office’s Criminal Division, and Thomas Jankowski, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI).
Thompson, 61, of Washington, D.C., pled guilty on March 10, 2014, in the U.S. District Court for the District of Columbia, to two felony charges. One was a federal offense: conspiring to violate federal campaign finance laws and to submit false filings to the Internal Revenue Service. The other was a District of Columbia offense: conspiring to violate District of Columbia campaign finance laws by defrauding the District of Columbia’s Office of Campaign Finance.
The plea agreement, which was contingent upon the Court’s approval, called for the Court to dismiss the federal charge against Thompson at sentencing on the condition that he cooperate with a broader investigation into illegal campaign spending. The plea agreement limited the period of incarceration for the federal charge to a period of up to 18 months of incarceration. Because Thompson complied with his obligations under the plea agreement, the charge was dismissed today by the Honorable Colleen Kollar-Kotelly.
The plea agreement limited the period of incarceration for the remaining District of Columbia offense to a maximum of six months of incarceration. In addition to periods of incarceration and home confinement, Judge Kollar-Kotelly ordered Thompson to pay the maximum $10,000 fine allowed by the District of Columbia offense. Also, following his prison time, he will be placed on three years of supervised release.
At sentencing today, the government noted that Thompson’s cooperation exposed a longstanding culture of corrupt spending in District of Columbia campaigns.
Thompson is the former chairman, chief executive officer, and majority owner of Thompson, Cobb, Bazilio and Associates (TCBA), a corporation that provided accounting, management, consulting, and tax services. He also is the former chairman, chief executive officer, and owner of D.C. Healthcare Systems, Inc. (DCHSI), an investment holding and for-profit corporation. In his guilty plea, he admitted using funds from those corporations to secretly finance campaign contributions and activities from at least 2006 until 2012.
TCBA received millions of dollars under contracts with District of Columbia and federal government entities. DCHSI owned D.C. Chartered Health Plan, Inc. (Chartered), a corporation that contracted with the District of Columbia government to provide managed care services to a substantial number of District of Columbia residents. Chartered’s contract with the District of Columbia, paid primarily by the federal government, totaled about $300 million each year.
According to a statement of offense submitted at the time of Thompson’s guilty plea, Thompson secretly provided more than $1,445,000 for off-the-books, or “shadow campaigns,” on behalf of seven candidates seeking office in the District of Columbia from 2006 to 2011. The largest such amount was over $653,000 to pay for campaign activities of a candidate in the 2010 mayoral race. He also secretly spent more than $130,000 for a voter registration drive on behalf of one candidate and agreed to pay another candidate $200,000 - along with other benefits - to withdraw from the 2006 mayoral race. Thompson also entered into a $150,000 consulting agreement with the competing candidate on behalf of TCBA. Also, according to the statement of offense, between 2006 and 2011, Thompson utilized at least 75 conduits to make contributions to at least 15 mayoral and D.C. Council candidates in excess of $500,000.
From February 2008 through May 2008, according to the statement of offense, Thompson secretly channeled about $608,750 to fund a shadow campaign for a candidate running for President of the United States. Thompson also secretly provided $50,000 to help a civic organization pay for a lawsuit in Texas challenging the two-step voting process in that state, in which voters were allowed to vote twice, once in a primary and once in a caucus. He also provided $150,000 for a political demonstration organized by the civic organization in Washington, D.C. The funds for the lawsuit and the demonstration were to assist the campaign of the preferred presidential candidate. Also, between 2006 and 2012, Thompson utilized at least 32 conduits to make contributions to at least 13 federal candidates and a political action committee of at least $250,000.
In addition, after the federal investigation into campaign finance irregularities began in 2011, Thompson engaged in various efforts to obstruct the investigation.
Thompson is among 14 people who pled guilty to charges in a broader investigation related to federal and local political campaigns. He is among six defendants who pled guilty to offenses directly involving or connected to the 2010 District of Columbia mayoral election.
In announcing the sentence, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Special Agent in Charge Jankowski commended the work of those who investigated the case for the FBI and IRS-CI. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Ellen Chubin Epstein and Lionel André, Criminal Investigators Mark Crawford and Melissa Matthews, and Paralegal Specialists Tasha Harris and Corinne Kleinman. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Michael K. Atkinson and Special Assistant U.S. Attorney Jonathan P. Hooks, who represented the government at sentencing.
Internet Scammer Convicted of Telemarketing Fraud and Obstruction of JusticeRead the Press Release
SAVANNAH, GA: On August 12, 2016, after a week-long trial before U.S. District Court Judge William T. Moore, Jr., a federal jury convicted conman Stacy Paul Waddell, 44, of wire fraud, sale of counterfeit coins, and tampering with official proceedings.
According to the evidence presented at trial, Waddell and others acting at his direction littered the internet with advertisements offering to sell gold and silver coins at deeply discounted prices. Waddell received responses from dozens of people throughout the United States and abroad. Waddell then lied about availability of the coins and falsely promised quick delivery times to get customers to wire transfer money into bank accounts controlled by Waddell. After those payments were received, Waddell pocketed his victims’ funds and used them to gamble at casinos and purchase expensive clothes and other accessories. Waddell further lied to his victims when they would ask about the status of their unfulfilled coin orders. Additionally, Waddell knowingly sold counterfeit gold coins to at least one of his victims and then attempted to destroy those coins after a federal grand jury indicted him for selling fake gold. According to a forensic analysis, Waddell bilked his victims out of no less than $600,000 between 2013 and 2015.
Waddell is a serial scam artist whose criminal history in the Savannah area — much of which involves offenses of deceit and deception — stretches back to the late 1980s. In 1991, Waddell checks totaling nearly $5,000 on a closed account. In 1992, he staged multiple car accidents and falsely reported his car to have been stolen in order to obtain approximately $36,000 through fraudulent insurance claims. On more than a dozen occasions in 1993, Waddell forged checks totaling more than $7,300. In 1995, Waddell shoplifted electronic equipment, stole a U-Haul truck, and fled to Nevada before the U.S. Marshals Service located him eight months later. While serving his prison sentence for theft of the U-Haul vehicle, Waddell prepared and submitted false tax returns to the IRS using the names and personal identification information of other inmates. For that conduct, Waddell was convicted in 2004 of making false claims to a federal agency. Following his release from prison, Waddell quickly violated the terms of his supervision, and the court imposed a maximum sentence. The gold and silver coin scheme that led to his most recent conviction was launched shortly after Waddell regained his liberty in 2011.
On each of the four telemarketing-related wire fraud counts, Waddell faces a term of imprisonment of up to 25 years, a fine of up to $250,000, and three years of supervised release. He also faces 20 years in prison for obstructing justice and 15 years of imprisonment for selling counterfeit coins. There is no parole in the federal system.
United States Attorney Edward J. Tarver stated, “For more than two decades, Stacy Waddell preyed on hardworking, innocent people in the Southern District of Georgia and in other judicial jurisdictions. Through his latest scam, Waddell used the internet and fake coins to steal hundreds of thousands of dollars, much of which he spent on himself and lost gambling at various casinos. Predators like Waddell should be taken off of the streets. The Department of Justice and this U.S. Attorney’s Office will continue its work with our federal and state law enforcement partners to ensure that happens.”
The United States Secret Service and United States Postal Inspection Service investigated the case with assistance from the Pooler Police Department and Armstrong State University Police Department Cyber Forensics Division. Assistant United States Attorneys Brian T. Rafferty and Theodore S. Hertzberg prosecuted the case and represented the United States at trial. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Georgia man sentenced to Federal prison for methamphetamine traffickingRead the Press Release
CHARLESTON, W.Va. – A Georgia man who was caught with methamphetamine and a stolen pistol in a Summersville hotel was sentenced today to two years and eight months in federal prison, announced United States Attorney Carol Casto. Daniel Branden O’Dell, 34, previously pleaded guilty to possession with intent to distribute methamphetamine.
On October 30, 2015, a Nicholas County Deputy Sheriff responded to a disabled vehicle call on U.S. Route 19. The vehicle, a 2015 BMW, had been reported stolen from Atlanta and was unoccupied when the officer arrived. After a brief investigation, officers learned that O’Dell had wrecked the vehicle and gotten a ride to a hotel in Summersville. When police arrested O’Dell at his hotel room, they found methamphetamine and a loaded .45 caliber pistol that had been stolen in Cobb County, Georgia. O’Dell admitted to transporting the methamphetamine from Georgia to sell in Pennsylvania. He also admitted to being a felon and told police he had purchased the stolen firearm in Georgia. O’Dell has a lengthy criminal history that includes numerous theft and drug-related felony convictions.
This case was investigated by the Nicholas County Sheriff’s Department and the Summersville Police Department. Assistant United States Attorney Joshua Hanks is in charge of the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
This case was brought as part of Project Safe Neighborhoods, a nationwide commitment to reduce gun crime in the United States by working with existing local programs targeting gun violence. This case was also prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Former Oregon State Police Forensic Scientist Pleads Guilty to Stealing Controlled Substances by Fraud and DeceptionRead the Press Release
PORTLAND, Ore – U. S. Attorney Billy J. Williams, Deschutes County District Attorney John Hummel and the Oregon District Attorneys Association, announced that former Oregon State Police Forensic Scientist Nika Larsen, 36, of Bend, Oregon, pleaded guilty today in federal court, to using her position as a Forensic Scientist to steal controlled substances from evidence items submitted by law enforcement agencies to the Oregon State Police Crime Lab for analysis and testing. Facts of the crime are set forth in court documents filed today. This prosecution resolves any potential state charges stemming from this criminal conduct.
Larsen appeared in court today and, pursuant to a plea agreement, pleaded guilty to two counts of obtaining a controlled substance by misrepresentation, fraud and deception. U. S. District Judge Anna J. Brown presided over Larsen’s guilty plea and will sentence her on December 12, 2016 at 2:00 p.m. The parties are jointly recommending the Judge impose a 36-month term of incarceration followed by a term of supervised release with conditions, including community service.
The case was investigated by the Oregon State Police and the Oregon Department of Justice, Criminal Justice Division. Assistant U.S. Attorney Pamala R. Holsinger and Special Assistant U.S. Attorney Stephen H. Gunnels (Deschutes County District Attorney’s Office) are prosecuting the case. Multnomah County Chief Deputy District Attorney Donald N. Rees served as a Special Deputy District Attorney for Umatilla County during the case and also represented the Oregon District Attorneys Association.
Former IRS Employee Sentenced to over a Year in Prison for Filing Multiple Fraudulent Tax ReturnsRead the Press Release
FRESNO, Calif. — U.S. District Judge Dale A. Drozd sentenced Kimberly English, 53, of Fresno, today to 15 months in prison and ordered her to pay $33,780 in restitution to the IRS for filing a fraudulent tax return by an employee of the United States and making an opportunity for a person to defraud the United States, Acting United States Attorney Phillip A. Talbert announced.
According to court documents and evidence at trial, English was an employee of the IRS in Fresno when she prepared and filed her own fraudulent tax returns for tax years 2011 and 2012. She also prepared and filed tax returns for others, including her daughter and her daughter’s boyfriend for the same tax years. The returns identified in court included fraudulent claims for false deductions and credits, such as the number of dependents and eligibility for the child tax credit. The false returns allowed English and other taxpayers to obtain undue tax refunds or improperly reduce their tax liabilities.
“When IRS employees file fraudulent tax returns, the public’s confidence in the IRS is eroded. This unethical and criminal behavior by an IRS employee with knowledge of the system will never be tolerated and will be investigated and prosecuted to the fullest extent of the law,” stated Special Agent in Charge Rod Ammari of the Treasury Inspector General for Tax Administration.
Judge Drozd ordered English to begin serving her sentence on September 21, 2016.
This case was the product of an investigation by the Treasury Inspector General for Tax Administration and the Tax Division of the Department of Justice. Assistant United States Attorneys Patrick R. Delahunty and Angela L. Scott prosecuted the case.
Former Canton resident sentenced to 13 years in prison for tax fraudRead the Press Release
Two people were sentenced to prison for their roles operating a $4.8 million fraud conspiracy involving nearly 1,000 people who resided in Northeast Ohio, said U.S. Attorney Carole S. Rendon and Kathy Enstrom, IRS-Criminal Investigation Special Agent in Charge.
Allen D. Miles, 58, of Little Rock, Arkansas, formerly of Canton, was sentenced to more than 13 years in prison. He previously was found guilty of multiple counts, including conspiracy to commit wire fraud and aggravated identity theft.
Zinara M. Highsmith, 37, of Fayetteville, Georgia, was sentenced to 42 months in prison. She previously pleaded guilty to one count of conspiracy to commit wire fraud and one count of wire fraud.
“These defendants’ preyed on faith – people’s faith in their ministers and faith in their government,” Rendon said. “These defendants betrayed that faith to get rich and now will be held accountable.”
“Today’s sentencings should send a clear message to would-be criminals -- you will be caught and you will be punished,” Enstrom said. “Identity theft is a contemptible modern-day scourge and we will continue to pursue criminals who prey on innocent victims.”
Highsmith filed approximately 2,750 false tax returns containing false refund claims of more than $4.8 million. Approximately 964 false claims were made on behalf of people living in Northeast Ohio, according to court documents.
Highsmith formed the Atlanta-based tax-preparation business WE XL LLC in 2010. From March 2011 through July 2011, Highsmith partnered with Miles in a scheme to file false tax returns. Miles’ role was to recruit and obtain personal identification information from claimants and to provide that information to Highsmith, who was responsible for the preparation of the false returns. Miles did this in large part by inducing other ministers and church leaders in various states, including Ohio, to solicit members of their congregations to apply for benefits under the so-called government stimulus program, according to court documents.
Some of the claimants were residents of Northeast Ohio who provided their personal identification information to a pastor in Canton and to a relative of the Canton pastor. They, in turn, forwarded the information to Miles, according to court documents.
As instructed by Miles, the claimants were told they could receive their “stimulus” payment by direct deposit or on a debit card. Miles told pastors to request a $50 “donation” from each claimant, according to court documents.
Miles forwarded the claimants’ personal identification information to Highsmith to use in preparing false tax returns. Highsmith never had any contact with a claimant or any of the other pastors used by Miles to recruit or enlist claimants, according to court documents.
Highsmith instructed associates, including Ve Sayavong, of Jonesboro, Georgia, how to prepare false income tax returns using Turbo Tax software, which they did by reporting false occupations and wage income, and by falsely claiming a variety of tax credits, including the AOC Education Credit, the Making Work Pay Credit and the Earned Income Credit, according to the court documents.
All of the returns requested that $125 be deposited into a bank account controlled by Miles and $275 be deposited into a bank account controlled by Highsmith, according to the information.
Based on the false claims, the IRS issued refunds totaling more than $3.9 million, with more than $500,000 from those refunds going to bank accounts controlled by Highsmith, according to court documents.
Sayavong was previously sentenced to nearly three years in prison.
This case is being prosecuted by Assistant U.S. Attorneys Michael L. Collyer and Carmen Henderson following an investigation by the Internal Revenue Service.
Five Individuals Have Been Sentenced to Federal Prison on Drug Charges in Spirit Lake ConspiracyRead the Press Release
FARGO - US Attorney Christopher C. Myers announced that on August 8, 2016, Winterhawk Leonard Oldrock, 37, Fort Totten, ND, was sentenced before US District Judge Ralph R. Erickson to serve 7 years in prison for Conspiracy to Possess with Intent to Distribute and Distribution of a Controlled Substance. Judge Erickson also sentenced Oldrock to serve 3 years of supervised release and to pay a $100 special assessment to the Crime Victims’ Fund.
Oldrock and four other defendants have been convicted for conspiring to distribute methamphetamine in Devils Lake ND, as well as within the Spirit Lake Reservation. The following individuals have previously been sentenced for their involvement in this conspiracy:
• Nestor Lopez Jr., 26, Devils Lake, 10 ½ years
• Theresa Rose Lopez, 29, Devils Lake, 4 years
• Janet Joyce Oldrock, 34, Fort Totten, 7 years
• Fernando Lopez, 19, Devils Lake, 3 years
U.S. Attorney Myers stated "this case is a great example of state, local, and federal agencies working together to address a problem that continues to carry a devastating impact on the families and communities in this state, including those of the Spirit Lake Nation. Hopefully this sends a message that serious consequences await those who chose to foster this devastation."
This case was investigated by the Bureau of Indian Affairs-Fort Totten, the Lake Region Narcotics Task Force, and the North Dakota Bureau of Criminal Investigation.
Assistant US Attorney Brett Shasky prosecuted the case.
Final Defendant in RICO Indictment Targeting East Coast Crips Street Gang Pleads Guilty to Federal RICO and Narcotics OffensesRead the Press Release
LOS ANGELES – The 16th and final defendant in a racketeering indictment that targeted the East Coast Crips (ECC) street gang, which claims a large swath of territory in South Los Angeles, pleaded guilty today in United States District Court to federal charges.
Gregory Sutton Jr., 40, of South Los Angeles, pleaded guilty to conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act (RICO), conspiracy to distribute marijuana and being a felon in possession of a firearm. As a result of the guilty pleas, Sutton, who was an associate of the gang, faces a statutory maximum sentence of 35 years in federal prison when he is sentenced by United States District Judge Beverly Reid O’Connell on November 7.
Previously in this case, 15 other ECC members and associates have pleaded guilty, with most of them admitting to being part of the RICO conspiracy. The ECC indictment was the third in a series of racketeering indictments brought by federal grand juries following investigations by the FBI into the criminal activities of Blood and Crips gangs that claim territories in Los Angeles
“Criminal street gangs make their livelihood by distributing narcotics and preying on the people that live in the neighborhoods they claim as territory,” said United States Attorney Eileen M. Decker. “Today’s guilty plea marks the end of one phase of the prosecution of the East Coast Crips, but my office will continue to bring cases like this one seeking to cripple street gangs operating in our community.”
The ECC racketeering indictment arises out of an investigation that started in March 2011 when the FBI and the Los Angeles Police Department (LAPD) began looking into the racketeering activities of the gang, which claims a large swath of South Los Angeles running from 1st Street to 190th Street, between the 110 Freeway and Central Avenue. The ECC gang is believed to have approximately 850 members and is comprised of multiple “sets.” According to various court documents, members of the gang engage in a variety of violent crimes, home invasion robberies, firearms violations and the sale of narcotics, including crack cocaine and marijuana. According to court documents, members of the gang routinely engage in the distribution of crack cocaine near elementary schools.
“The successful outcome of this case is the result of a strong partnership among federal and local law enforcement officials and prosecutors utilizing a variety of statutes including RICO,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI will continue to work with local police to identify gangs whose members terrorize their communities with violence and intimidation to further their criminal enterprise.”
Previously in this case, Rashaad Howard, a senior member of the ECC and the lead defendant in the indictment, pleaded guilty to conspiring to violate RICO and possession with the intent to distribute crack cocaine. Howard, 38, of South Los Angeles, was sentenced earlier this year to five years in prison by Judge O’Connell.
Many of the other 14 defendants in the indictment who have pleaded guilty have been sentenced to prison terms of as long as 80 months. In addition to Sutton, three other defendants are pending sentencing.
The case against ECC is being prosecuted by Assistant United States Attorney Reema El-Amamy of the Organized Crime Drug Enforcement Task Force.
Federal Court in South Carolina Orders Robert S. Leben and Amy L. Leben to Pay over $10 Million in Restitution and Penalties in CFTC Anti-Fraud Enforcement ActionRead the Press Release
Contact Person: Dennis Holden (202) 418-5088 & Steven Adamske (202) 418-5080
In a Parallel Criminal Action, Robert Leben Was Sentenced to 40 Months in Prison
Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) today announced that Chief Judge Terry L. Wooten of the U.S. District Court for the District of South Carolina entered a summary judgment Order against Defendants Robert S. Leben and Amy L. Leben of Columbia, South Carolina, in a CFTC enforcement action charging the Lebens with misappropriating pool participant funds and failing to register as commodity pool operators (see CFTC Press Release 6881-14). In addition, the CFTC Complaint charged Robert Leben with issuing false statements and fraudulently soliciting pool participants by guaranteeing returns and the safety of each pool participant’s principal investment. The Complaint also charged Amy Leben with improperly accepting and commingling pool participant funds.
The Court’s Order requires the Lebens to pay restitution to victims in the amount of $2,551,596, disgorgement in the amount of $109,787, and a civil monetary penalty in the amount of $7,654,788. The Order further imposes permanent trading and registration bans and prohibits the Lebens from violating the anti-fraud and registration provisions of the Commodity Exchange Act and CFTC Regulations, as charged.
The CFTC’s Complaint had alleged that between August 2008 and March 12, 2014, the Lebens, by and through the commodity pool Structured Finance Group Corporation (SFG), fraudulently solicited and accepted at least $3.2 million from at least 12 members of the general public to trade commodity futures contracts through a pool; that the Lebens traded only a portion of the pool participant funds in futures accounts in the name of Amy Leben, as well as in the name of the pool; and that they sustained net losses for the majority of the period. The Court’s Order finds that the Lebens misappropriated at least $2 million of the pool participant investor funds for their personal use, while representing to investors that the money would be used by SFG to purchase U.S. Treasury debt obligations and commodities. According to the Court Order, the Lebens used the misappropriated funds to purchase a house, vacations, a pool, an irrigation system, a car, cosmetic surgery, as well as to provide funds to family members and to pay everyday living expenses.
The CFTC cautions that Orders requiring repayment of funds to victims may not result in the recovery of any money lost because the wrongdoers may not have sufficient funds or assets. The CFTC will continue to fight vigorously for the protection of customers and to ensure the wrongdoers are held accountable.
Robert Leben Indicted on Criminal Charges, Ordered to Pay Restitution to Victims, and Sentenced to Prison
On December 16, 2014, Robert Leben was indicted on criminal charges arising from the same fraudulent conduct that was the subject of the CFTC’s action (see United States v. Robert S. Leben, No. 3:14-cr-858 (D.S.C.)). On October 8, 2015, Robert Leben pled guilty and on April 14, 2016, was sentenced to 40 months in prison and ordered to pay restitution to victims of the fraud.
The CFTC appreciates the cooperation of the South Carolina Attorney General’s Office and the Office of the U.S. Attorney for the District of South Carolina in this matter.
The CFTC Division of Enforcement staff members responsible for this case are Amanda Burks, Michael Loconte, Erica Bodin, Elizabeth Davis, and Rick Glaser.
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CFTC’s Commodity Pool Fraud Advisory
The CFTC has issued several customer protection Fraud Advisories that provide the warning signs of fraud, including the Commodity Pool Fraud Advisory, which warns customers about a type of fraud that involves individuals and firms, often unregistered, offering investments in commodity pools.
Customers can report suspicious activities or information, such as possible violations of commodity trading laws, to the CFTC Division of Enforcement via a Toll-Free Hotline 866-FON-CFTC (866-366-2382) or file a tip or complaint online.
Employee of a Silver Spring Non-Profit Sentenced to over 2 Years in Federal Prison for Stealing over $270,000Read the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Monica Kendrick, age 47, of Walkersville, Maryland, today to 27 months in federal prison, followed by three years of supervised release, for wire fraud arising from a scheme in which she embezzled money from her employer. Judge Chuang also ordered Kendrick pay restitution of $271,921.06, the total amount of loss resulting from the scheme.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Ebert of the United States Secret Service - Washington Field Office; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to her plea agreement, In May 2014, Kendrick was hired as the office and finance administrator for a non-profit organization located in Silver Spring, Maryland, which acted as a trade association for the herbal products industry. Almost immediately after being hired, Kendrick began stealing money from the company. From May 2014 to November 2015, Kendrick wrote over 80 unauthorized checks from the company and deposited the fraudulent checks into a bank account. She then withdrew the illicit proceeds from the account.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Leah Jo Bressack, who prosecuted the case.
District Man Sentenced to 20 Years to Life in Prison for 1997 Murder of Woman in Northwest WashingtonRead the Press Release
WASHINGTON – John F. General, 52, formerly of Washington, D.C., was sentenced today to 20 years to life in prison for the 1997 murder of a woman at an apartment building in Northwest Washington, announced U.S. Attorney Channing D. Phillips and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
General was found guilty by a jury in December 2014, following a trial in the Superior Court of the District of Columbia, of second-degree murder. He was sentenced by the Honorable Lynn Leibovitz.
According to the government’s evidence, on the morning of Nov. 26, 1997, the partially clothed body of the victim, Deborah McKinney, was discovered in a stairwell of an apartment building in the 900 block of M Street NW. The District of Columbia’s Office of the Chief Medical Examiner determined that Ms. McKinney, 38, was killed by means of asphyxiation.
Although there were no eyewitnesses to this murder, the government’s evidence showed that Ms. McKinney encountered the defendant and that a violent encounter ensued. Based on the evidence, General pressed his hand or other body part over Ms. McKinney’s mouth and applied life-taking pressure to her mouth, chest and neck. During this assault, she fought to save her life. In doing so, she injured General, causing him to bleed on her shirt. However, she was no match for the defendant, and he killed her by cutting off the air she needed to live.
General was identified as a suspect in January 2010 through the Combined DNA Index System (CODIS), a web of state and national databases containing DNA profiles from convicted offenders and crime scenes that is used as an investigative tool. General’s DNA was in the system as a result of an earlier conviction in a case in the District of Columbia. DNA testing confirmed that his blood and semen were on the scene of Ms. McKinney’s attack. He was arrested in May of 2010.
“This cold case was revived when a DNA hit connected John General to the long-ago murder,” said U.S. Attorney Phillips. “This prosecution shows the power of DNA and other forensic evidence to secure justice even after many years have passed.”
“It is our hope that this sentencing brings some sort of closure to the victim's family and friends after so many years,” said Chief Lanier.
In announcing the sentence, U.S. Attorney Phillips and Chief Lanier commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the District of Columbia’s Office of the Chief Medical Examiner and the District of Columbia Department of Forensic Services. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including former Assistant U.S. Attorney Amanda Haines; Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Litigation Technology Specialist Leif Hickling; Paralegal Specialists Sandra Lane, Mia Beamon, Jason Manuel and Benjamin Kagan-Guthrie, and Victim/Witness Security Specialists David Foster and Katina Adams.
Finally, they commended the work of Assistant U.S. Attorneys Sharon Donovan and Adrienne Dedjinou, who prosecuted the case.
Derek Galanis Pleads Guilty in Manhattan Federal Court to Securities FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that DEREK GALANIS pled guilty today to manipulating the market for Gerova Financial Group, Ltd. (“Gerova”), a publicly traded company listed on the New York Stock Exchange, and to defrauding the shareholders of that company. GALANIS pled guilty to conspiracy to commit securities fraud and securities fraud before U.S. Magistrate Judge Kevin Nathaniel Fox.
U.S. Attorney Preet Bharara said: “As he admitted in his guilty plea today, Derek Galanis conspired to have Gerova issue more than $70 million worth of shares for no legitimate business purpose and to hide Jason Galanis’s control of those shares. Galanis and his co-conspirators then artificially manipulated Gerova’s stock price so that they could secretly cash out for massive profits. Derek Galanis is the fourth person to plead guilty in this stock fraud scheme that left many victim investors holding worthless shares.”
According to the allegations contained in the Indictment filed against DEREK GALANIS and his co-conspirators, and statements made in related court filings and proceedings[1]:
The Gerova Scheme
From 2009 to 2011, DEREK GALANIS, along with his co-conspirators Jason Galanis, John Galanis, Jared Galanis, Gary Hirst, Ymer Shahini, and Gavin Hamels, engaged in a scheme to defraud the shareholders of Gerova, and the investing public, by effecting securities transactions in Gerova stock for the purpose of conferring millions of dollars of undisclosed remuneration on the co-conspirators, without adequate disclosure of Jason Galanis’s role in directing the transactions or the benefits received by Jason Galanis and his co-conspirators.
As a part of the scheme to defraud, Jason Galanis obtained sufficient control over Gerova so as to be able to cause Gerova to enter into transactions of his design, and for his benefit, including the issuance of Gerova stock. Jason Galanis obtained this control without causing himself to be identified as an officer or director of Gerova in order to appear to abide by an SEC-imposed bar that forbade him from holding such positions at publicly traded companies. Among other means and methods, Jason Galanis, with the assistance of Hirst, caused over five million shares of Gerova stock, which represented nearly half the company’s public float and which were intended for Jason Galanis’s ultimate benefit, to be issued to and held in the name of Ymer Shahini, who knowingly served as a foreign nominee for Jason Galanis. DEREK GALANIS, a longstanding friend of Shahini’s, recruited Shahini to the scheme, telling Shahini in an email, “All we need is a foreign national we trust which is where you come in my friend.” DEREK GALANIS, Jason Galanis, John Galanis, Jared Galanis, Hirst, and Shahini understood that the purpose of the stock grant to Shahini was to disguise Jason Galanis’s ownership interest in the stock, and to evade the SEC’s regulations for issuing unregistered shares of stock.
At the same time, and as a further part of the scheme to defraud, John Galanis and Jared Galanis, with DEREK GALANIS’s knowledge, opened and managed brokerage accounts in the name of Shahini (the “Shahini Accounts”), effected the sale of Gerova stock from the Shahini Accounts through manipulative trading, and received and concealed the proceeds, knowing that this activity was designed to conceal from the investing public Jason Galanis’s ownership of and control over the Gerova stock. In total, DEREK GALANIS and his co-conspirators sold nearly $20 million worth of Gerova shares from the Shahini Accounts for their own benefit.
In contrast, unsuspecting Gerova shareholders were left with a worthless investment. More specifically, in March 2011 the New York Stock Exchange (“NYSE”) halted trading of Gerova and in April 2011 Gerova asked the NYSE to delist its securities. By November 2, 2011, Gerova’s stock price had bottomed out at $0.00 per share.
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DEREK GALANIS, 44, pled guilty to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense; and one count of securities fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $5,000,000 or twice the gross gain or loss from the offense.
Jason Galanis, 46, pled guilty on July 21, 2016, to two counts of conspiracy to commit securities fraud, each carrying a maximum sentence of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense; one count of securities fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $5,000,000 or twice the gross gain or loss from the offense; and one count of investment adviser fraud, which carries a maximum sentence of five years in prison and a maximum fine of $10,000 or twice the gross gain or loss from the offense.
John Galanis, 73, pled guilty on July 20, 2016, to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense; and one count of securities fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $5,000,000 or twice the gross gain or loss from the offense.
Gavin Hamels, 40, pled guilty on March 22, 2016, to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense; one count of securities fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $5,000,000 or twice the gross gain or loss from the offense; and one count of investment adviser fraud, which carries a maximum sentence of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentences for the defendants will be determined by the judge.
Trial against defendants Gary Hirst and Jared Galanis is scheduled for September 12, 2016, on charges of conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, and wire fraud, and with regard to Jared Galanis, on charges of investment adviser fraud and misprision of a felony. Defendant Ymer Shahini remains a fugitive. The allegations contained in the Indictment as to those defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Mr. Bharara praised the work of the U.S. Postal Inspection Service and the Federal Bureau of Investigation, and thanked the SEC.
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 Brian Blais, Aimee Hector, and Rebecca Mermelstein are in charge of the prosecution.
[1] As for the defendants who have not pled guilty (Gary Hirst, Jared Galanis, and Ymer Shahini), the charges described herein constitute only allegations.
Derby Man Sentenced to Prison for Distributing Prescription Narcotics, Cocaine and SteroidsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that FRANK PECORA, 55, of Derby, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 37 months of imprisonment, followed by three years of supervised release, for distributing prescription narcotics, cocaine and steroids.
According to court documents and statements made in court, a long-term investigation led by the Federal Bureau of Investigation, Drug Enforcement Administration and Homeland Security Investigations revealed that Steven Santucci, a former Newtown Police sergeant, and others were receiving shipments of steroid ingredients from China and manufacturing and distributing wholesale quantities of steroids. The investigation also revealed that, in addition to steroids, PECORA and others were distributing prescription pills and cocaine.
PECORA was arrested on April 29, 2015. On May 1, 2015, investigators searched his residence and seized numerous prescription narcotic pills, steroids, 350 grams of cocaine, two .308 caliber rifles and two 12 gauge shotguns.
On January 25, 2016, PECORA, a previously convicted felon, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute oxycodone. In pleading guilty, also admitted that he unlawfully possessed firearms.
PECORA has been detained since his arrest.
On December 9, 2015, Santucci pleaded guilty steroid distribution and money laundering offenses. He awaits sentencing.
This matter is being investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, Homeland Security Investigations, with the assistance of the U.S. Marshals Service, U.S. Postal Inspection Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Robert M. Spector.
Dearborn Man Pleads Guilty to Lying About Travel to Fight for HezballahRead the Press Release
A Dearborn, Michigan, man pleaded guilty to making false statements to federal agents involving terrorism, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Mohammad Hassan Hamdan, 24, admitted at his plea hearing before U.S. District Judge Gerald E. Rosen that he knowingly lied to federal agents when he was arrested, prior to boarding his flight, at Detroit Metropolitan Airport on March 16, 2014. Hamdan told federal agents that he was going to Lebanon “to get his teeth fixed.” Hamdan also admitted that he had told an FBI confidential source that he was going to Lebanon to join Hezbollah, a designated foreign terrorist organization, so that he could fight with Hezbollah in Syria.
Evidence presented at a hearing revealed that prior to leaving to go to Lebanon, Hamdan had packed up all his possessions, gave his car to a family member and sold his house.
“It is illegal to lie to federal agents because false statements undermine their ability to investigate crime,” McQuade said. “Here, Mr. Hamdan lied to cover up his intent to travel overseas to fight with Hezballah, a group that have been designated by the U.S. government as a terrorist organization.”
“This case highlights the significance of the investigative work being done by the FBI’s Joint Terrorism Task Force in Detroit,” stated David P. Gelios, Special Agent in Charge of the FBI Detroit Field Office. “As evidenced by his own admissions, Mohammad Hassan Hamdan took steps to travel to Lebanon to join the fight on behalf of Hezbollah in Syria. This investigation demonstrates the real threat of individuals residing in the United States who want to travel to Syria to fight on behalf of Hezbollah, a designated terrorist organization and threat to our national security.”
Hamdan is scheduled to be sentenced on November 14, 2016 at 2:00 p.m.
The case was investigated by special agents from the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Ronald Waterstreet.
Cookson Man Pleads Guilty to Firearm Possession, Possession in Furtherance of Drug Trafficking CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that LEON RICHARD AUTRY, age 42, of Cookson, Oklahoma, pled guilty to POSSESSION OF A FIREARM IN FURTHERANCE OF A DRUG TRAFFICKING CRIME, in violation of Title 18, United States Code, Section 924(c)(1)(A), punishable by not less than 5 years imprisonment, up to a $250,000.00 fine or both and FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, up to $250,000.00 fine or both.
The Indictment filed April, 2016, alleges that on or about March 2, 2016, in the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, firearms, which had been shipped and transported in interstate commerce and did possess those firearms in furtherance of Possession with Intent to Distribute Methamphetamine, a drug trafficking crime for which he may be prosecuted in a court of the United States.
The charges arose from an investigation by the Cherokee County Sheriff’s Office, the Tahlequah Police Department and the Bureau of Alcohol, Tobacco and Firearms.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant will remain in the custody of the United States Marshals Service pending sentencing.
Assistant United States Attorney Kristin Harrington represented the United States.
Colorado Man Sentenced for Production of Child Pornography Including Sexual Exploitation of an InfantRead the Press Release
DENVER – Jamie Sailas, age 31, of Metro Denver, was sentenced today by U.S. District Court Judge William J. Martinez to serve 258 months (over 21 years), followed by 30 years of supervised release for the production of child pornography, Acting U.S. Attorney Bob Troyer and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Special Agent in Charge David Thompson announced. Sailas, who is in custody, was remanded at the conclusion of the sentencing hearing.
According to the stipulated facts contained in the defendant’s plea agreement, Sailas came to law enforcement attention when an HSI agent working in Washington, DC conducted a proactive undercover investigation upon an Internet website that hosted chat rooms. Users of these chat rooms have the ability to upload content to the chat room in the form of pictures and video. While conducting the investigation, the HSI agent came across a link to a video that depicted an adult male engaging in intercourse with a minor female. The investigation led the agent to specific subscriber information which had been submitted to the National Center for Missing and Exploited Children (NCMEC) by the Internet Service Provider. The link was associated with an online storage account that belonged to Jamie Sailas, who at the time resided in Brighton, Colorado. There were nearly 2,900 uploaded file names associated with Sailas’s online storage account, consistent with file names of videos containing child pornography. An email account associated with the online storage account was also determined to belong to Sailas.
During the investigation, the local HSI agent learned that two additional NCMEC reports had been generated regarding Sailas, one which involved the email address associated with the online storage account. A legal search of the defendant’s email account reflected that Sailas used the account to send or receive approximately 5500 images and 240 videos of child pornography. The material included minors as young as infants, with a large majority of content depicting prepubescent minor females. It was ultimately determined that in addition to living in Brighton, the defendant worked at Game Trader in Brighton. Search warrants were executed for Sailas’s home, workplace, and vehicle in November 2014. Numerous electronic devices belonging to Sailas were recovered during the execution of the search warrants. During the forensic examination of the electronic devices recovered during the search warrants, numerous images and videos depicting child pornography were recovered, including an image of child pornography that was recovered from one of Sailas’s cell phones. The image of child pornography depicted his penis in the mouth of an approximately 4-week-old infant. The image was taken by Sailas. The defendant had access to the infant because he was a friend of the child’s mother.
“This defendant’s crimes were as heinous as they get,” said Acting U.S. Attorney Bob Troyer. “This substantial sentence in federal prison is just and proper.”
“The potential sentences for predators who produce child pornography are appropriately the most severe of any child exploitation crime,” said David A. Thompson, special agent in charge of HSI Denver. “Our special agents conducted an especially thorough investigation to ensure that this predator who would sexually molest a 4-week-old infant would be locked away from free society for a long time.”
Jamie Sailas was investigated by HSI with assistance from the Brighton Police Department. He was prosecuted by Assistant U.S. Attorney Alecia Riewerts.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Collin County Man Sentenced for Disabled Vet Related FraudRead the Press Release
SHERMAN, Texas – A 45-year-old Frisco, Texas man has been sentenced to federal prison for disabled veteran related fraud in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Sean Page was found guilty by a jury on Feb. 12, 2016, of theft of government property and two counts of aggravated identity theft. Page was sentenced to 69 months in federal prison on Aug. 11, 2016 by U.S. District Judge Marcia A. Crone.
According to information presented in court, Page fraudulently obtained 14 federal service contracts by utilizing the stolen name and social security number of a service disabled veteran to create a fraudulent Service Disabled Veteran Owned Small Businesses (SDVOSB) for the purpose of soliciting and obtaining these service contracts. The Department of Veteran’s Affairs and the Department of the Army funds federal contracting programs for SDVOSB. The program provides exclusive business opportunities for veterans who were and are disabled as a result of their military service and sacrifices while serving in the United States Armed Forces.
The contracts were valued at $2,722,870. Of this amount, Page submitted fraudulent invoices and was paid $1,270,304. Page was indicted by a federal grand jury on Dec. 9, 2015.
James Warner, Office of Inspector General, Special Agent in Charge, South Central Field Office stated, “We are pleased that the investigation resulted in the conviction of a person who abused federal government contracting set-asides for service-disabled veteran owned businesses. Fraudulently using another veteran’s status, in this case the Defendant’s disabled father’s veteran status, to obtain disabled veteran set-aside contracts hurts all veterans with legitimate businesses who wish to properly obtain these contracts.” General Carol Fortine Ochoa stated, “We will continue to work to uncover fraud schemes such as this on behalf of American taxpayers and legitimate veterans who own small businesses.”
“Protecting Service Disabled Veteran Small Business Programs, which are funded by American taxpayers, and intended to benefit veterans with service disabled injuries incurred as a result of their sacrifices for this country, from those who commit fraudulent acts to steal from the program is and will remain a top priority for our office,” said U.S. Attorney Bales. “Those who steal and attempt to steal monies from these programs will be vigorously prosecuted.”
This case was investigated by the Department of Veterans Affairs, Office of the Inspector General, the Army Criminal Investigation Command, Major Procurement Fraud Unit, the General Services Administration, Office of Inspector General, the Social Security Administration, Office of the Inspector General, the Defense Criminal Investigative Service, and the Small Business Administration, Office of the Inspector General. The case was prosecuted by the U.S. Attorney’s Office, Eastern District of Texas.
Chicago Native Sentenced for Possessing Fraudulent Credit CardsRead the Press Release
United States Attorney Deborah R. Gilg announced that on August 11, 2016, Senior United States District Judge Richard G. Kopf sentenced Aisha Morgan to 3 years’ probation, and ordered her to pay $13,928.28 in restitution. Morgan must also complete 20 hours of community service.
A car driven and occupied by Aisha Morgan and Cornesha Kelly was stopped by law enforcement in Lancaster County, Nebraska, on March 28, 2015. In their car was found 346 counterfeit/unauthorized access devices and 258 gift cards from Walmart, Walgreens, and Dollar General. The 346 unauthorized access devices were encoded with stolen credit card information from 91 different financial institutions in many states and 13 foreign countries.
Subsequent investigation found that Aisha Morgan and Cornesha Kelly possessed and used counterfeit/unauthorized access devices on March 26, 2015, in Omaha, Blair, Papillion, LaVista, Bellevue, and Fremont Nebraska. Then on March 27, 2015, in Fremont, Lincoln, Crete, Seward, York, and Grand Island Nebraska. Finally, on March 28, 2015, in Grand Island, Hastings, Aurora, and York Nebraska, before being stopped in Lancaster County, Nebraska headed back east. During the three-day span in Nebraska they attempted to pass cards on 123 occasions at Walmart, Walgreens and Dollar General, 75 were successful at 40 different locations resulting in 240 purchases totaling $15,886.74 (mostly gift cards).
This case was investigated by the Lincoln Police Department.
Chicago Man Sentenced to Eleven Years in Federal Prison for Robbing Six Stores and Two Banks on North SideRead the Press Release
CHICAGO — A federal judge sentenced a Chicago man to eleven years in prison for robbing six stores and two banks on the city’s North Side.
BLAKE FISHER-BRUNER, 32, robbed the same bank twice, bringing his total number of robberies to nine. Four of the heists occurred in the Wicker Park neighborhood.
Fisher-Bruner showed a gun to store employees or bank tellers in several of the robberies. During the armed robbery of the Chicago Teacher store at 1855 N. Milwaukee Ave. in Chicago on May 27, 2014 – Fisher-Bruner ordered a cashier and a customer to the floor at gunpoint before stealing cash, a children’s book and a marker. In another of the robberies – of North Community Bank at 1555 N. Damen Ave. in Chicago on June 23, 2014 – Fisher-Bruner threatened to shoot the tellers if they did not comply with his demands. Fisher-Bruner was arrested by Chicago Police on July 6, 2014, while sitting in a vehicle with a loaded firearm in his pocket.
Fisher-Bruner pleaded guilty in March to three counts of bank robbery and one count of brandishing a firearm during a crime of violence. U.S. District Judge John Z. Lee imposed the 132-month sentence Friday in federal court in Chicago.
“The defendant committed very serious, violent acts,” Assistant U.S. Attorney Christopher V. Parente argued in the government’s sentencing memorandum. “Robberies of any kind, but especially armed robberies, are very serious crimes that terrorize the victims who are standing at the other end of the defendant’s firearm.”
According to his plea agreement, Fisher-Bruner served as a lookout in the first robbery while his girlfriend robbed the North Community Bank branch on April 18, 2014. The girlfriend, NAKESHA SCOTT, 24, of Joliet, was previously convicted in the case. Scott pleaded guilty to one count of bank robbery and was sentenced last year to 30 months in prison.
The other robberies committed by Fisher-Bruner include:
May 15, 2014: North Community Bank, 1600 W. Chicago Ave. in Chicago.
May 30, 2014: Ember Smoke Shop store, 2827 W. Belden Ave., in Chicago.
June 8, 2014: 7-Eleven store, 1658 N. Milwaukee Ave., in Chicago.
June 8, 2014: Egor’s Dungeon store, 900 W. Belmont Ave., in Chicago.
June 14, 2014: MS News store, 2445 N. Clark St., in Chicago.
June 21, 2014: Dude I Forgot store, 1400 N. Milwaukee Ave., in Chicago
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Chicago Police Department provided valuable assistance.
Centralia Resident Pleads Guilty to Felon in Possession of A Firearm in Connection with A Drug Trafficking OffenseRead the Press Release
Brandon Hoskins, 32, of Centralia, Illinois, pleaded guilty on August 11, 2016, in US District Court to possession of a firearm in connection with a drug trafficking offense, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Brandon Hoskins faces a minimum sentence of 5 years in prison for this offense.
Hoskins was investigated following the November 29, 2014, burglary of Buchheit’s of Centralia. In that burglary, forty (40) firearms and more than a thousand rounds of ammunition were stolen. Dakota Moss, also of Centralia, was sentenced to 248 months imprisonment on September 11, 2015, for committing that burglary.
Court records established that two of the guns stolen during the Buchheit’s burglary were eventually transferred to Brandon Hoskins. When agents went to Hoskins’ home on December 5, 2014, to search for the stolen firearms, they discovered a separate Glock pistol in his bedroom, along with an amount of heroin, a drug log book and drug packaging materials. Hoskins admitted that he kept that firearm as protection related to his drug dealing. The two stolen firearms were eventually recovered by law enforcement officials.
Hoskins will be sentenced on December 13, 2016.
Three other defendants charged in connection with the Buchheit’s burglary are scheduled for trial on November 28, 2016. Under the law, those defendants are presumed to be innocent until proven guilty beyond a reasonable doubt.
The investigation is being conducted by agents from the Bureau of Alcohol, Tobacco and Explosives, the Centralia Police Department, along with the Clinton County States Attorney’s office. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Cape Girardeau County Man Sentenced on Federal Charges Involving Food Stamp FraudRead the Press Release
Cape Girardeau, MO – The co-owner of B & H Convenience was sentenced to twenty-one months imprisonment on charges of misusing the Supplemental Nutrition Assistance Program (SNAP), formerly known as the food stamp program. Patrick Buck admitted with his plea last May that he illegally redeemed up to $550,000 in SNAP benefits between January 2010 and March 2014. Buck was ordered to pay $550,000 in restitution to the United States Department of Agriculture (USDA), which administers this program nationwide.
According to court documents, the Missouri Department of Social Services, Family Support Division (FSD) issues Electronic Benefits Transfer Cards (EBT), for the SNAP. Authorized grocery retailers can only accept and redeem SNAP benefits for the sale of eligible food items. They are not permitted to exchange or redeem SNAP benefits for cash or other ineligible items such as household goods, alcoholic beverages, tobacco products, cellular telephones or other non-food items, or on credit.
Patrick Buck, Cape Girardeau, MO, pled guilty in May to four felony counts of unauthorized use of SNAP benefits. He appeared today in Cape Girardeau for sentencing before United States District Judge Ronnie L. White.
This case was investigated by the United States Department of Agriculture, Office of Inspector General-Investigations, Sikeston Department of Public Safety. Assistant United States Attorney Anthony L. Franks handled the case for the U.S. Attorney’s Office.
Canadian Man Pleads Guilty to Drug Charges Following Extradition to United States in Case Involving Largest Seizure of Cocaine in District HistoryRead 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 Alvin Randhawa, 35, of British Columbia, Canada, pleaded guilty to conspiracy to export from the United States into Canada five kilograms or more of cocaine, before U.S. Magistrate judge Leslie G. Foschio. The charge carries a mandatory minimum sentence of 10 years in prison, a maximum of life, and a $10,000,000 fine.
“This case represents a success against another major international narcotics trafficking organization – this time operating in Canada,” said U.S. Attorney Hochul. “We will continue to work with all of our law enforcement partners to protect the threat posed by these dangerous substances.”
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that between July 2010 and May 2011, Randhawa conspired with others to smuggle cocaine into Canada from the United States via several international bridges including ones in the Buffalo-Niagara region. Investigators believe that this organization trafficked approximately 2,000 kilograms of cocaine (approximately $80,000,000 in value) during the course of the conspiracy.Randhawa was indicted along with Gursharan Singh and Harinder Dhaliwal. Singh has been convicted. Charges are pending against Dhaliwal. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Also charged in the conspiracy were Ravinder Arora, Michael Bagri and Parminder Sidhu. All three defendants have been convicted.
Today’s plea is the result of an investigation by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, Officers from the United States Customs and Border Protection, under the direction of Rose Hilmey, Acting Director of Field Operations, the Peel Regional Police Department, under the direction of Chief Jennifer Evans, the Canada Border Services Agency, under the direction of Rick Comerford, Regional Director General, Southern Ontario Region and the Toronto Police, under the direction of Chief William Blair.
Sentencing will be scheduled at a later date before Senior U.S. District Judge William M. Skretny.
Bluefield man pleads guilty to sending threatening letters to former U.S. Attorney and Bluefield MayorRead the Press Release
CHARLESTON, W.Va. – A Bluefield man who mailed letters threatening to kill the former United States Attorney for the Southern District of West Virginia and the mayor of Bluefield pleaded guilty on Friday in federal court in Abingdon, Virginia, announced United States Attorney Carol Casto and United States Attorney for the Western District of Virginia John P. Fishwick, Jr. Kenneth Robert Godsey, 35, pleaded guilty to two counts of mailing a threatening communication.
In May 2015, Godsey sent a threatening letter from the Southwest Valley Regional Jail in Tazewell, Virginia, to then-United States Attorney Booth Goodwin at the Charleston office. Godsey’s letter to former U.S. Attorney Goodwin included numerous references to murder. In July 2015, Godsey sent another threatening letter from the jail to Bluefield Mayor Tom Cole. Godsey stated in the letter that he would kill the mayor and have others kill citizens of Bluefield. Pursuant to the plea agreement and pending approval by the United States District Court for the Western District of Virginia, Godsey faces between five and 10 years in federal prison when he is sentenced on October 24, 2016.
“Law enforcement and public officials should be able to go to work and go home to their families without threats from criminals,” said United States Attorney Casto. “This prosecution recognizes the importance of taking this criminal behavior seriously and should serve as a significant warning to those who make these threats to law enforcement, public officials, and their families. I want to the thank all of the investigating agencies and the U.S. Attorney’s Office for the Western District of Virginia for helping to stop these threats and working to make law enforcement and public service safer for everyone.”
“Making threats to the safety of others, including public officials and those in law enforcement, is a serious matter that will be treated as such,” said United States Attorney Fishwick “Those who threaten the lives of others will be held accountable for their actions, as was the case here.”
The FBI, the United States Postal Inspection Service, the Tazewell County, Virginia, Sheriff’s Office, and the West Virginia State Police conducted the investigation.
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12 August 2016
“Santa Claus” Sentenced for Distributing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 38-year-old Corpus Christi man who worked as a Santa Claus impersonator for 15 years has been ordered to prison for distribution of child pornography, announced U.S. Attorney Kenneth Magidson. Reynaldo Ramirez pleaded guilty in May 2016.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced Ramirez to 235 months in federal prison to be immediately followed by 20 years of supervised release. He must also register as a sex offender.
At today’s hearing, the court heard testimony from an HSI agent who described the videos and images of child pornography Ramirez possessed, many of which depicted the sexual exploitation of infants, bondage and bestiality. The agent also testified that Ramirez had admitted to sexually assaulting a five-year-old child. The child’s mother also addressed the court and described the danger Ramirez posed to children.
The case against Ramirez began after a detective with the Corpus Christi Police Department (CCPD) was able to successfully download various files containing child pornography from an IP address that was associated with Ramirez. As a result, Homeland Security Investigations was contacted to assist in the investigation (HSI).
In December 2015, authorities executed a search warrant at Ramirez’s residence, at which time they seized several digital devices and discovered a Santa Claus costume. Upon questioning, Ramirez stated he had performed as Santa Claus for the past 15 years throughout the South Texas area. Agents also discovered several gifts addressed to children.
Ramirez admitted he had been viewing child pornography for approximately six years. He told authorities he had downloaded more than 1,000 images of child pornography ranging in ages from toddlers to pre-teens.
Ramirez was arrested on the federal charges in December 2015 and has been in custody since that time where he will remain pending his transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
CCPD - Internet Crimes Against Children Task Force and HSI conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, 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."
Woburn Company and President Agree to Pay $2.25 Million to Resolve Allegations of Grant FraudRead the Press Release
BOSTON – Agiltron, Inc., a Woburn research and development company financed largely by federal government funding, and its President, Jing Zhao, have agreed to pay $2.25 million to resolve allegations that they violated the False Claims Act by seeking disbursements from federal agencies for falsified labor costs in order to maximize charges to grants and contracts awarded by federal agencies.
“When the government awards precious funding to foster innovation, it expects and requires grant recipients to use the money appropriately,” said United States Attorney Carmen M. Ortiz. “It is unlawful and unfair to other deserving grant applicants for companies to submit falsified information to take advantage of government funding.”
As alleged in the settlement agreement, from 2009 to 2012, Agiltron received funds under 15 grants and contracts awarded through the federal Small Business Innovation (SBIR) and Small Business Technology Transfer (STTR) programs, which are intended to provide opportunities for small businesses to develop products that they can ultimately commercialize. The government alleges that Agiltron and Zhao engaged in a scheme in which they directed and allowed employees to charge labor hours to the awards, even when those hours did not correspond with the employees’ actual time and effort. They also directed and allowed employees to alter their completed timesheets, with the goal of maximizing charges to each grant or contract. The government further alleges that Agiltron and Zhao directed and allowed employees to discard or destroy documents instructing them on how many hours to charge or change on their timesheets.
The government’s investigation of Agiltron originated when the Offices of Inspector General of multiple agencies participating in the SBIR and STTR programs, including the National Science Foundation, Department of Defense, Department of Homeland Security, Department of Energy, and National Aeronautics and Space Administration, learned of allegations that Agiltron was improperly billing time and effort to SBIR/STTR grants and contracts. In 2013, the Department of the Air Force suspended Agiltron and Zhao, as well as Agiltron’s related companies, from government contracting, in part because of suspected improper billing. In reaching an administrative agreement with the Air Force to terminate the suspension, Agiltron implemented a number of remedial measures to correct its accounting practices and internal controls. The settlement agreement resolves multiple federal agencies’ claims for civil damages arising from allegations of fraudulent time-and-effort billing to SBIR/STTR grants and contracts.
“Fraudulently certifying efforts to obtain funds intended to support innovative research under the SBIR/STTR programs is unacceptable. I commend the U.S. Attorney’s Office and the investigative teams for their sustained and vigorous effort in reaching this settlement agreement,” said Allison Lerner, Inspector General of the National Science Foundation.
“This agreement demonstrates the continuing efforts of the Defense Criminal Investigative Service and our law enforcement partners to investigate fraud, waste and abuse within the SBIR/STTR program,” said Craig W. Rupert, Special Agent in Charge, Office of the Inspector General, U.S. Department of Defense, Defense Criminal Investigative Service, Northeast Field Office. “Consistent with our mission to ‘Protect America’s Warfighters,’ DCIS is dedicated to ensuring the integrity of the DoD procurement process.”
“I commend the outstanding investigative efforts of the investigative team and the work of USAO for the District of Massachusetts in reaching this agreement,” said Michael W. Sonntag, Special Agent in Charge of NASA, Office of Inspector General, Office of Investigations. “The NASA Office of Inspector General is committed to ensuring aggressive oversight of taxpayer funds used for scientific research by NASA contractors.”
U.S. Attorney Ortiz, NSF Inspector General Lerner, DoD-OIG-DCIS Special Agent in Charge Craig W. Rupert, and NASA-OIG Special Agent in Charge Sonntag, made the announcement today. The matter was handled by Assistant U.S. Attorneys Deana El-Mallawany and Michelle Leung of Ortiz’s Civil Division.
West Virginia Man Pleads Guilty to Mailing Threating Letters to the Former United States Attorney for the Southern District of West Virginia and Mayor of BluefieldRead the Press Release
ABINGDON, VIRGINIA – A West Virginia, man pled guilty today to federal charges after admitting to sending letters threatening to murder the former United States Attorney for the Southern District of West Virginia and kill the mayor of Bluefield, West Virginia, announced United States Attorney John P. Fishwick Jr.
Kenneth Robert Godsey, 35, of Bluefield, West Virginia, pled guilty today in the United States District Court for the Western District of Virginia in Abingdon to two counts of mailing a threatening communication. Pending approval by the District Court, the parties have agreed to a stipulated sentence of between 5 to 10 years’ federal imprisonment.
“Making threats to the safety of others, including public officials and those in law enforcement, is a serious matter that will be treated as such,” United States Attorney Fishwick said today. “Those who threaten the lives of others will be held accountable for their actions, as was the case here.”
According to evidence presented in District Court by Special Assistant U.S. Attorney Kevin Jayne, in May 2015, Mr. Godsey sent a threatening letter from the Southwest Valley Regional Jail in Tazewell, Virginia to Booth Goodwin at his office in Charleston, West Virginia. At the time, Mr. Goodwin was the United States Attorney for the Southern District of West Virginia, the chief federal law enforcement officer for that district. Mr. Goodwin received Mr. Godsey’s letter, which included numerous murder and sexual references. In July 2015, Mr. Godsey sent a threatening letter from the Southwest Valley Regional Jail in Tazewell, Virginia to the Mayor of Bluefield, West Virginia, Thomas Cole. Mr. Cole received Mr. Godsey’s letter, which stated Mr. Godsey would have others “kill” citizens of Bluefield and Mr. Godsey would personally “kill” Mr. Cole in a violent way. In both instances, local and federal law enforcement responded to Mr. Godsey’s threatening letters.
The investigation of the case was conducted by the Federal Bureau of Investigation; United States Postal Inspection Service; Tazewell County, Virginia Sheriff’s Office; and Bluefield, West Virginia Police Department. Special Assistant United States Attorney Kevin Jayne prosecuted the case for the United States.
Two Michigan Residents Sentenced to Federal Prison for Sex Trafficking of MinorsRead the Press Release
In Austin today, 30-year-old Deqwon Saquod Lewis and 24-year old Starisha Shontel Moore, both of Flint, Michigan, were sentenced to 300 months and 235 months in federal prison, respectively, for sex trafficking of minors announced United States Attorney Richard L. Durbin, Jr., and Steven McCraw, Director of the Texas Department of Public Safety.
In addition to the prison terms, United States District Judge Sam Sparks ordered that both defendants be placed on supervised release for a period of five years after completing their prison terms and register as a sex offender.
On May 27, 2016, a federal jury found Lewis and Moore each guilty of two felony counts of sex trafficking of two minor females under the age of 18 years. The jury also determined that both Lewis and Moore were also each guilty of a third count of knowingly transporting one of the minor girls from the State of Texas to the State of Michigan, with the intent to engage the minor in prostitution.
Trial testimony revealed that during the months of June through August of 2015, in Austin and elsewhere, the defendants created and posted online “escort” advertisements that resulted in the sexual exploitation of the minors via commercial sex acts. In August of 2015, the defendants transported one of the minors, who had recently turned 15 years old, from Texas to Flint and Detroit, Michigan for the purpose of sexually exploiting her.
“Crimes against children – especially sex trafficking of minors – are some of the most difficult cases we work; that said, we are pleased to have been part of this important investigation because we helped rescue children and took two dangerous criminals off the street,” said DPS Director Steven McCraw. “The teamwork among federal, state and local law enforcement agencies in these types of investigations is crucial to combatting crime, pursuing suspects and protecting victims – and we are grateful those important partnerships.”
This case was investigated by the Human Trafficking Unit of the Texas Department of Public Safety. Assistant
United States Attorneys Grant Sparks and Ashley Hoff prosecuted this case on behalf of the Government.
Two Kentucky Men Sentenced to Prison for Stolen Identity Refund FraudRead the Press Release
Two Kentucky men were sentenced to between five and more than six years in prison today after pleading guilty in April and May to conspiring to defraud the United States, wire fraud, and aggravated identity theft, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Kerry B. Harvey of the Eastern District of Kentucky.
Billy Ray Hamilton and Brian Hamilton were sentenced to serve 60 months and 82 months in prison, respectively. According to court documents, during the years 2011 and 2012, the Hamiltons conspired with others at the Bailey Switch Pawn Shop in Knox County, Kentucky, to submit false income tax returns to fraudulently obtain tax refunds. The Hamiltons prepared and electronically submitted to the Internal Revenue Service (IRS) numerous false federal tax returns. In some cases, they used the identification information of customers of the Bailey Switch Pawn Shop, without their knowledge or consent. In other cases, they obtained taxpayers’ information through a co-conspirator.
“Stolen identity refund fraud damages not just the US taxpayer, but also the individuals whose identities are stolen, privacy invaded, and lives turned upside down,” stated Principal Deputy Assistant Attorney General Ciraolo. “The Department will continue to prosecute offenders such as Billy Ray Hamilton and Brian Hamilton, while at the same time working with the IRS to prevent these crimes from occurring in the first place, by supplying the IRS with real time information on how fraudsters are operating, thereby enhancing the IRS’s capacity to spot phony returns when they are filed and prevent fraudulent refunds from ever being issued.”
“The sentences handed down today highlight the seriousness of the defendants’ conduct,” said Special Agent in Charge Tracey D. Montaño of IRS’s Criminal Investigation (CI) Nashville Field Office. “We will remain vigilant in identifying and investigating those who seek to defraud the American taxpayers by stealing identities and filing false tax returns.”
In addition to the prison terms, U.S. District Judge Amul R. Thapar of the Eastern District of Kentucky ordered Billy Ray Hamilton to serve three years of supervised release and pay restitution to the IRS in the amount of $272,808.98. Judge Thapar ordered Brian Hamilton to serve three years of supervised release and pay restitution to the IRS in the amount of $221,728.74.
On July 12, co-conspirator Patsy Carnes was sentenced to 22 months in prison, and co-conspirator Diana Hill was sentenced to 16 months in prison, for their roles in the scheme.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Harvey commended special agents of IRS – CI, who investigated the case, and Assistant U.S. Attorney Neeraj Gupta of the Eastern District of Kentucky and Trial Attorney Abigail Burger Chingos of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Texas Man Charged with Running Fraudulent Investment CompaniesRead the Press Release
WASHINGTON – A Texas man was charged with fraud and obstruction of justice in an indictment unsealed today involving two investment companies that allegedly defrauded investors resulting in losses of approximately $900,000.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John R. Parker of the Northern District of Texas and Special Agent in Charge Thomas M. Class Sr. of the FBI’s Dallas Office made the announcement.
Stanley Jonathan Fortenberry, 50, of San Angelo, was charged with three counts of mail fraud, two counts of wire fraud and one count of obstructing an official proceeding. Fortenberry was arrested this morning and made his initial appearance in court this afternoon.
According to the indictment, from 2013 to 2014, Fortenberry ran Wattenberg Energy Partners, which raised funds for oil and gas drilling projects in northern Colorado. Fortenberry allegedly set up the company in his son’s name because Texas and Pennsylvania state securities regulators had previously ordered Fortenberry to not sell unregistered securities in oil drilling projects. The indictment alleges that Fortenberry used a network of salespeople to call and solicit individuals to invest in drilling projects. Rather than designate investors’ funds for drilling projects as promised, the indictment alleges that Fortenberry spent the vast majority of the funds on himself and the company’s fundraising operation. The indictment also alleges that in order to make Wattenberg more appealing to investors, Fortenberry misled investors into believing that Wattenberg had substantive control over the drilling projects when, in reality, Wattenberg was merely a fundraising operation that passed along funds to other companies that actually had control.
From 2010 to 2012, Fortenberry also allegedly ran a separate fraudulent scheme conducted through Premier Investment Fund. According to the indictment, through Premier, Fortenberry raised funds from investors for social media projects run by another company connected to the country music industry. The indictment alleges that Fortenberry misrepresented to investors the profitability of the company and how he would be compensated. The company earned no profits and Fortenberry spent approximately half of the funds raised on himself, according to the indictment.
In total, the indictment alleges that Fortenberry defrauded investors out of approximately $900,000 through both companies.
In October 2014, Fortenberry allegedly gave false and misleading testimony in an administrative proceeding before the U.S. Securities and Exchange Commission (SEC), which was investigating Fortenberry at the time for misusing funds that investors had entrusted to Premier.
The charges in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Dallas Office investigated the case. Trial Attorney William E. Johnston of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Sean Long of the Northern District of Texas are prosecuting the case. The SEC has provided assistance in this matter.
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Tax Fraud IndictmentRead the Press Release
Contact Person: Nancy Wicker (803) 929-3000
Greenville, South Carolina --- Myron Anvil McCall is charged in a twenty-seven count Indictment with making and presenting claims for false tax refunds, a violation of Title 18, United States Code, Section 287.
Beth Drake, Acting U.S. Attorney for the District of South Carolina, made the announcement after the Defendant was indicted.
The maximum penalty McCall could receive if convicted is five years imprisonment. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing is determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The Defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The case was investigated by agents of the Internal Revenue Service, and is assigned to Assistant United States Attorney Max Cauthen of the Greenville office for prosecution.
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Stockton Man Pleads Guilty to Drug, Fraud, Identity Theft, and Firearms OffensesRead the Press Release
SACRAMENTO, Calif. — Dennis Joseph Machado, 44, of Stockton, pleaded guilty today to numerous federal felony offenses arising out of illicit conduct in Sutter, Sacramento, and San Joaquin Counties, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Machado and co-defendant Breneth L. Chase, 44, also of Stockton, obtained U.S. mail and postal keys stolen during burglaries of post offices in Sutter and Sacramento Counties. They used stolen U.S. Mail to manufacture checks and government identifications to cash phony checks, apply for lines of credit, and make purchases at local department stores at the expense of local banks and credit unions. Machado admitted that he possessed over five different manufactured identifications and that he possessed stolen personal and financial information for numerous residents of Sutter, San Joaquin, and Sacramento Counties. In addition, Machado pleaded guilty to possessing methamphetamine for purposes of distribution and unlawful possession of ammunition.
This case is the product of an investigation of the United States Postal Inspection Service, the Sutter County Sheriff's Office, the Stockton Police Department, and the Sutter Creek Police Department, with assistance from the Sacramento County Sheriff's Office. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.
On December 2, 2015, Chase was sentenced to four years and nine months in prison. Machado is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on October 20, 2016. Machado faces a minimum of five years in prison for illicit drug distribution, up to 10 years in prison for his unlawful ammunition possession, up to 30 years for his bank fraud conviction, and up to 15 additional years for the false documents conviction. Machado will receive two additional consecutive years in prison for aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.