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Monday 20 June 2016
Ship Owner, Operator and Engineers Found Guilty of Violating Pollution Laws, Falsifying Records and Scheming to DefraudRead the Press Release
The companies that own and operate a Greek shipping vessel and two engineers from the ship were convicted today in U.S. District Court in Seattle of 12 felony counts related to their dumping of oily waste at sea, announced U.S. Attorney Annette L. Hayes. The ship operator, ANGELAKOS (HELLAS) S.A., the ship owner, GALLIA GRAECA SHIPPING LTD, the Chief Engineer, KONSTANTINOS CHRYSOVERGIS and Second Engineer, TRYFON ANGELOU were found guilty of violating the Act to Prevent Pollution from Ships, Falsification of Records in a Federal Investigation, and engaging in a Scheme to Defraud the United States. The jury deliberated for three days following an eight-day jury trial. U.S. District Judge John C. Coughenour scheduled sentencing for September 16, 2016.
According to records filed in the case and testimony at trial, a cargo ship named the M/V Gallia Graeca travelled from China to Seattle in October 2015. During the voyage, a pollution-control device known as an oil water separator was inoperable. On October 16, 26 and 27, 2015, the defendants bypassed safeguards that prevent the discharge of oily water and discharged overboard approximately 5,000 gallons of oily bilge water. The defendants concealed these incidents from the Coast Guard by making false statements to inspectors, and making false statements and omissions in the ship’s oil record book. When Coast Guard inspectors asked the engineers to operate the oil water separator during the inspection, the engineers did so in such a way that the equipment appeared to be working properly even though it was not.
When Coast Guard inspectors examined the oil water separator they found its filters were clogged with oil and found oil residue in the overboard discharge piping. Records indicated the oil water separator had not been serviced for months prior to the voyage from China. According to the official oil record book presented to the Coast Guard, bilge water had not been discharged during the voyage to Seattle. However, the Coast Guard investigation discovered evidence that oily water had been discharged into the sea three times on its voyage from China.
Calling it “a voyage of deception and pollution,” prosecutors argued that the engineers tried to hide the pollution from the Coast Guard to avoid having the ship detained in Seattle. Keeping the ship on schedule was a benefit to the owners and operators who had a contract to move $25 million in goods out of Seattle. Shipping company executives had been in contact with the engineers about how they should present the log book for the Coast Guard inspection.
Falsification of Records in a Federal Investigation is punishable by up to 20 years in prison. Violating the Act to Prevent Pollution from Ships is punishable by up to six years of imprisonment. Scheming to Defraud the United States is punishable by up to five years in prison. Each count of conviction is also punishable by a $500,000 fine against each corporation, and $250,000 against each individual defendant.
The case is being prosecuted by Assistant United States Attorneys Seth Wilkinson and Matthew Diggs and by Special Assistant Attorney Stephen Bor. Mr. Bor is an attorney with the United States Coast Guard specially appointed to prosecute criminal cases in federal court.
The case is being investigated by the U.S. Coast Guard and the Environmental Protection Agency Criminal Investigation Division.
Senior NYPD Officials and Others Charged with Federal Public Corruption OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and William J. Bratton, Commissioner of the New York City Police Department (“NYPD”), announced today that Deputy Chief MICHAEL HARRINGTON, Deputy Inspector JAMES GRANT, and Sergeant DAVID VILLANUEVA of the NYPD were arrested this morning, along with a Brooklyn-based man, JEREMY REICHBERG, on bribery charges. HARRINGTON, GRANT, and REICHBERG were charged in Manhattan federal court with conspiring to commit honest services wire fraud for a bribery scheme involving the receipt of tens of thousands of dollars in meals, trips, home renovations, and other benefits in exchange for an array of official NYPD actions, including private police escorts, ticket fixing, and assistance in settling private disputes. VILLANUEVA, formerly a supervisor in the NYPD’s gun licensing division, was charged in Manhattan federal court with bribery offenses in connection with his receipt of cash bribes to expedite and approve gun licenses. In addition, the guilty plea of Police Officer RICHARD OCHETAL, who formerly worked in the gun licensing division, was unsealed today. OCHETAL pled guilty to accepting bribes in exchange for the approval of gun license applications, and is cooperating with the Government in the investigation.
Manhattan U.S. Attorney Preet Bharara said: “The alleged conduct violates the basic principle that public servants are to serve the public, not help themselves to cash and benefits just for doing their jobs. Jeremy Reichberg allegedly showered senior police officials, Commanding Officers Michael Harrington and James Grant, with bribes, and in exchange, got ‘cops on call,’ a private police force for themselves and their friends. As alleged, Sergeant David Villanueva and Officer Richard Ochetal in the NYPD’s gun licensing division were also on the take, issuing gun licenses in exchange for cash, liquor, and limo rides. It is heartbreaking to see police officers who have taken the oath to serve and protect allegedly bring dishonor to an institution and profession deserving of the greatest honor. I thank the FBI for their work on this important investigation and the NYPD for its commitment and courage to police itself.”
FBI Assistant Director-in-Charge Diego Rodriquez said: “The abuses of power alleged in this case are not victimless crimes. The victims are the citizens of New York, who rely on officers to fulfill their sworn duty. The victims are the upstanding police officers who do everything in their power to uphold the law and protect the public. The victims are public trust and confidence in law enforcement, both critical to ensuring public safety. The FBI, along with our partners, will continue to root out this kind of decay at every level in order to protect our citizens from the devastating consequences of corruption that undermines safety, and erodes the trust between law enforcement and the public.”
NYPD Commissioner William J. Bratton said: “These charges and today's arrests are a culmination of the joint investigative efforts of the NYPD's Internal Affairs Bureau along with the FBI and the US Attorney’s Office for the Southern District of New York. During the past three years, NYPD Internal Affairs and FBI investigators worked diligently in pursuing leads into alleged corrupt activity involving uniformed members of this department. Two separate investigations, by the NYPD and the FBI, merged seamlessly and resulted in today’s arrests of four members of the department as well as another individual. This investigation is not over and we will continue to work together with our law enforcement partners to go where the facts of these cases lead us.”
According to the allegations in the Complaint against GRANT, HARRINGTON, and REICHBERG; the Indictment against VILLANUEVA and Brooklyn-based gun license “expeditor” ALEX LICHTENSTEIN, a/k/a “SHAYA,” who had been previously charged; and the Information to which OCHETAL pled guilty, all unsealed today in Manhattan federal court[1]:
United States v. GRANT, HARRINGTON, and REICHBERG
For several years from approximately 2012 through 2015, REICHBERG, who described himself as a “community liaison” for the NYPD, along with another individual who had pled guilty and is now cooperating with the Government (“CW-1”), engineered a scheme to provide lavish benefits to high-ranking members of the NYPD, including GRANT and HARRINGTON, so as to be able to call upon those members for police-related assistance for themselves and their communities over time. GRANT and HARRINGTON, for their part, accepted numerous benefits and, in return, took several official police actions for REICHBERG and CW-1. GRANT was, throughout this time period, a high-ranking police official and commanding officer of a precinct in Brooklyn, before becoming a Deputy Inspector and the Commanding Officer of the 19th Precinct on the Upper East Side of Manhattan. HARRINGTON was an Inspector in Brooklyn North and, beginning around November 2013, the Executive Officer in the NYPD Chief of Department’s Office, which is responsible for overseeing all of the NYPD’s uniformed operations.
As alleged in the Complaint, among the benefits accepted by GRANT were a private jet trip to Las Vegas for the Super Bowl, costing $57,000 for the plane alone; a two-night stay in a hotel in Rome, worth more than $1,000; contracting work on his home worth approximately $12,000; and jewelry. Among the benefits accepted by HARRINGTON were private security work worth tens of thousands of dollars for a company he unofficially helped manage; hotel rooms for a trip to Chicago for his family worth in excess of $6,000; and thousands of dollars in dinners.
GRANT and HARRINGTON helped REICHBERG and CW-1 with numerous police-related requests. For example, both performed and arranged for police-related escorts for REICHBERG, CW-1, and their associates, at REICHBERG and/or CW-1’s request. Both diverted police resources to investigate private, civil matters. Both assisted with VIP access to parades and other New York City events. GRANT provided cards that enabled REICHBERG, CW-1, and their associates to avoid tickets when pulled over by police. GRANT also helped REICHBERG obtain a gun license from the NYPD, and attempted to help CW-1 obtain a gun license from the NYPD. HARRINGTON sent police resources to religious sites upon request.
REICHBERG and CW-1’s influence in certain spheres of the NYPD was, at a certain point, so significant as to have people believing that they had a say in promotions. REICHBERG and CW-1, for example, advocated for GRANT to become the Commanding Officer of the 19th Precinct, which GRANT ultimately did, and which led to them being permitted to make the call informing him of the news. REICHBERG also advocated for HARRINGTON to become a senior police official in Brooklyn after HARRINGTON left the Chief of Department’s office, which was unsuccessful. A judicially authorized wiretap on REICHBERG’s phone in early 2015 revealed numerous conversations in which REICHBERG was dispensing advice on promotions to members of the NYPD and taking steps to facilitate promotions.
United States v. VILLANUEVA and LICHTENSTEIN; United States v. OCHETAL
VILLANUEVA was, for many years, a Sergeant assigned to the NYPD’s Licensing Division, which is responsible for reviewing all applications for gun licenses submitted by residents of New York City. The Licensing Division receives approximately 5,000 applications for gun licenses per year. Licensing Division personnel review those applications both for disqualifying characteristics, such as prior felony convictions, and for other characteristics that lead to discretionary denials.
From at least 2012 through 2016, VILLLANUEVA was given cash bribes and other benefits by LICHTENSTEIN, who ran a business charging clients thousands of dollars to expedite their gun license applications. LICHTENSTEIN used some of the money paid by his clients to pay VILLANUEVA for his work in expediting and approving the applications for LICHTENSTEIN’s clients. OCHETAL, a Police Officer who worked under VILLANUEVA, did first-level reviews of many of these applications and was instructed to approve them. OCHETAL was compensated in the form of some of the cash that LICHTENSTEIN gave to VILLANUEVA.
In reviewing and approving applications for LICHTENSTEIN’s clients, VILLANUEVA and OCHETAL omitted some of the required checks, such as criminal history checks, and in other instances ran checks only after they approved licenses. They also approved applications despite red flags that, had they not been bribed, may have led those applications to be rejected. For example, they approved applications of individuals with prior arrests and previous allegations of domestic violence. In addition, VILLANUEVA and OCHETAL approved applications for licenses to carry firearms, which require certain business-related justifications, in scenarios were there was no real business justification for the request. A review of the applications of LICHTENSTEIN’s clients reveals that VILLANUEVA and OCHETAL were able to secure licenses for those clients often within weeks, whereas the process normally takes months to, in some instances, over a year. VILLANUEVA and OCHETAL did this for LICHTENSTEIN’s clients because of the cash payments coming from LICHTENSTEIN, as well as other benefits, such as limousine rides, bottles of liquor, and a wine tour.
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GRANT, 43, of Staten Island, New York, HARRINGTON, 50, of the Staten Island, New York, and REICHBERG, 42, of Brooklyn, New York, have been charged with one count of conspiracy to commit honest services wire fraud, which carries a maximum term of 20 years in prison. VILLANUEVA, 42, of Valley Stream, New York, was charged with one count of bribery, which carries a maximum term of 10 years in prison, and one count of conspiracy to commit bribery, which carries a maximum term of five years in prison. LICHTENSTEIN, 44, of Pomona, New York, is charged with two counts of bribery, each of which carries a maximum term of 10 years in prison, and one count of conspiracy to commit bribery, which carries a maximum term of five years in prison. OCHETAL, 37, previously pled guilty to one count of bribery, which carries a maximum term of 10 years in prison, and one count of conspiracy to commit bribery, which carries a maximum term of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the investigative work of the FBI, the NYPD Internal Affairs Bureau, and the Internal Revenue Service’s Criminal Investigations Division, and noted that the investigation is continuing.
These cases are being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Martin Bell, Russell Capone, and Kan M. Nawaday are in charge of the prosecution.
The charges contained in the Complaint and the Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the texts of the Complaint and the Indictment and the descriptions of the Complaint and the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Schenectady Man Sentenced to 30 Months for Selling Crack CocaineRead the Press Release
ALBANY, NEW YORK – Robert “Poobar” Daniels, age 43, of Schenectady, New York, was sentenced on June 15 to serve 30 months of imprisonment, to be followed by three years of supervised release, for distributing crack cocaine.
The announcement was made by United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.
Daniels, as part of his guilty plea, admitted that he sold crack cocaine directly, and oversaw the distribution of crack cocaine by another individual.The case was investigated by the Federal Bureau of Investigation, the New York State Police, and the Schenectady Police Department, in connection with the FBI-led Capital District Safe Streets Gang Task Force. The case was prosecuted by Assistant United States Attorney Wayne A. Myers.
Richmond Man Sentenced to 20 Years for Sex with MinorRead the Press Release
RICHMOND, Va. – Stephen T. Callis, 47, of Richmond, was sentenced today to 20 years in prison for enticement of a minor, and sex trafficking of children. Callis was also ordered to serve five years of supervised release and to register as a sex offender upon release from prison.
Callis pleaded guilty on March 3. According to a statement of facts filed with the plea agreement, Callis admitted that he posed online via KIK Messenger as a 15-year-old girl, “Kayla,” in order to initiate communication with the juvenile victim. Posing as “Kayla” on KIK Messenger, Callis discussed engaging in prostitution with older men with the juvenile victim, and said that “Kayla” would introduce the juvenile to older men for the purpose of prostitution. Callis then used the “Kayla” persona to introduce the juvenile to “Mark,” another alias Callis used online.
According to court documents, Callis and the juvenile then engaged in sexual conversations via KIK Messenger. The juvenile and Callis arranged to meet for the first time in approximately November 2014. Callis rented a hotel room for their first meeting and paid the juvenile $60 for sexual services. Callis and the juvenile engaged in sex acts in a hotel room approximately seven times, and Callis paid the juvenile for sexual acts on approximately five of those occasions. Callis was aware that the juvenile was a minor, and he picked the juvenile up from high school several times. Throughout this time, Callis and the juvenile continued to engage in sexual conversations via KIK Messenger, and the juvenile sent Callis naked pictures via KIK Messenger.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Division, made the announcement after sentencing by U.S. District Judge John A. Gibney. Assistant U.S. Attorney Heather L. Hart prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-003.
R.I. Businessman Pleads Guilty to Running International Scheme to Label and Sell Misbranded DrugsRead the Press Release
PROVIDENCE, R.I. – Arif Diwan, 60, owner of Lifescreen LLC, a Cranston, R.I., based company that labeled, advertised, and sold drugs and pharmaceutical products under the brand name “LifeLogic,” pleaded guilty in federal court in Providence today to conspiring with others to purchase drugs manufactured in India and other countries, repackaging and relabeling them making it appear that they were manufactured in the United States and Europe, and had been approved by the United States Food and Drug Administration (FDA), and then reselling them.
According to court documents, between 2012 and 2015, Diwan received and filled numerous orders for high-cost pharmaceutical products, including a number of products used in the treatment of cancer. Diwan admitted that he rebranded and relabeled drugs manufactured in India, including adding bogus FDA codes and markings to make it appear that the drugs had been manufactured in the United States or Europe and were approved for sale by the FDA. The drugs were shipped by Diwan to customers in numerous countries. Diwan did not sell misbranded and mislabeled drugs in the United States.
Diwan’s guilty plea before U.S. District Court Chief Judge William E. Smith to conspiracy to engage in false labeling of pre-retail medical products, money laundering and immigration fraud is announced by United States Attorney Peter F. Neronha and George M. Karavetsos, Director of FDA’s Office of Criminal Investigations (FDA OCI).
“FDA is recognized around the globe for ensuring that drugs are safe and effective. Criminal rings that falsify drugs’ origins to give the appearance of FDA approval put the public’s health at risk,” said George M. Karavetsos, Director of FDA’s Office of Criminal Investigations. “We will investigate and bring to justice those who compromise the security of the pharmaceutical supply chain wherever they may be.”
According to court records, an investigation by FDA OCI and the United States Attorney’s Office for the District of Rhode Island determined that Diwan ordered large quantities of drugs manufactured by Sara International, a drug manufacturing company located in India, and had the drugs transported to the home of a co-conspirator in Belgium. Once in Belgium, the co-conspirator, Bart DeRidder, affixed fraudulent labels designed by and manufactured at the direction of Arif Diwan onto the products. The labels indicated that the drugs were manufactured by LifeLogic at a facility in Puerto Rico. The packaging also contained bogus FDA codes and markings to make it appear as if the drugs had received FDA approval. No such facility exists in Puerto Rico. Bart DeRidder has been charged by Belgian authorities in connection with this matter and is facing criminal prosecution in Belgium.
Additionally, the investigation revealed that Arif Diwan created and provided fraudulent Certificates of Origin, attesting to the country of origin of the drugs, and fraudulent Certificates of Analysis, falsely attesting to the purity, strength, manufacture dates and expiration dates of the drugs. The certificates are heavily relied upon in the pharmaceutical industry and by Government entities to ensure the safety and efficacy of the products.
In addition, the investigation revealed that Diwan illegally transferred funds out of the United States to promote his illegal activity, including a January 2014 sale of the drug Caelyx to a purchaser in the United Arab Emirates.
In a related matter, in May 2012, Diwan filed a petition with the United States Citizen and Immigrations Services seeking permission for an Egyptian national to obtain a work visa, to allow the individual to enter the United States for the purpose of employment with Lifescreen. Diwan claimed that the person would be employed as a manager at a Lifescreen biopharmaceutical plant in Puerto Rico. The petition was approved and the person entered the United States in November 2012. Lifescreen did not, at any time, have or operate a biopharmaceutical plant in Puerto Rico. The investigation determined that Arif Diwan fraudulently submitted the immigration petition in exchange for payments made to him by the Egyptian national’s brother, a business associate of Diwan.
Arif Diwan is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on September 16, 2016.
The case is being prosecuted by Assistant U.S. Attorneys Lee H. Vilker and Zachary A. Cunha.
United States Attorney Peter F. Neronha and George M. Karavetsos, Director of FDA’s Office of Criminal Investigations, thank the United States Department of State, Internal Revenue Service Criminal Investigation, Interpol, Europol and the Belgian Federal Judicial Police for their cooperation and efforts during this investigation.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Previously Convicted Sex Offender Arraigned on Superseding Indictment Alleging Federal Child Exploitation ChargesRead the Press Release
ALBUQUERQUE – Donald Alvin Tolbert, 47, of Albuquerque, N.M., was arraigned this morning in federal court on a 14-count superseding indictment alleging child pornography offenses, announced U.S. Attorney Damon P. Martinez and Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso.
Tolbert entered a plea of not guilty to the superseding indictment during his arraignment hearing. He remains in federal custody pending trial, which currently is scheduled for Sept. 19, 2016.
Tolbert was arrested on Nov. 21, 2014, on a two-count indictment charging him with receiving child pornography from June 1, 2012 through Sept. 20, 2012, and possessing a computer that contained child pornography on Sept. 20, 2012. The original indictment alleged that Tolbert committed the two crimes in Bernalillo County, N.M.
The superseding indictment, which was filed on June 14, 2016, adds 12 new charges against Tolbert. Count 1 of the superseding indictment alleges that Tolbert used advertisements to offer to exchange, receive and distribute child pornography with others between Jan. 2012 and Sept. 2012, and Count 14 alleges that Tolbert committed the crime alleged in Count 1 during a time when he was required to register as a sex offender. Tolbert allegedly committed the two crimes in Bernalillo County. If convicted on Count 1, Tolbert faces a statutory mandatory sentence of life imprisonment because of his prior conviction on two counts of criminal sexual contact with a minor in the Second Judicial District Court of New Mexico in 2006. If convicted on Count 14, Tolbert faces a statutory mandatory minimum of ten years of imprisonment, which must be served consecutive to any sentence imposed on the other charges.
The superseding indictment also includes seven counts alleging that Tolbert received child pornography between Aug. 2012 and Sept. 2012; three counts alleging that he distributed child pornography between July 2012 and Sept. 2012; and two counts alleging that he possessed computers containing child pornography in Sept. 2012. The superseding indictment alleges that Tolbert committed the crimes in Bernalillo County. If convicted on these charges, Tolbert faces the following penalties: a statutory mandatory minimum of 15 years and a maximum of 40 years on each of the seven receipt charges and the two distribution charges, and a statutory mandatory minimum of ten years and a maximum of 20 years on each of the two possession charges.
Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of HSI. Assistant U.S. Attorneys Kristopher N. Houghton and Alexander M. Uballez are prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’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 via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also is being prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, N.M., under this initiative.
Press Conference Advisory, Monday, June 20, 2016, at 12:00 p.m.Read the Press Release
There will be a press conference today at 12:00 p.m. to announce charges against several New York City Police Department officers and others for public corruption offenses. Relevant charging documents are attached.
WHO:
Preet Bharara, United States Attorney for the Southern District of New York
Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation
William J. Bratton, Commissioner of the New York City Police Department
WHEN:
Monday, June 20, 2016 at 12:00 p.m.
WHERE:
U.S. Attorney’s Office, Southern District of New York
1 St. Andrew’s Plaza
New York, NY 10007
CONTACT:
James Margolin, Dawn Dearden, Nicholas Biase
(212) 637-2600
NOTE:
Please arrive early to permit clearance through security. Please silence all cell phones, PDAs, and pagers before start of press conference.
Physician’s Office Manager and Husband Sentenced to Imprisonment for Fraudulent Diversion of OxydodoneRead the Press Release
HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the former office manager to a York physician and her husband were sentenced in U.S. District Court in Harrisburg for conspiring to obtain and distribute up to 20,000 units of oxycodone through fraud and forgery.
According to United States Attorney Peter Smith, Amy Schneider, 31, was sentenced to serve 30 months in federal prison incarceration. District Court Judge Sylvia H. Rambo also sentenced Joseph Schneider, 31, to 46 months’ imprisonment. Both defendants also were sentenced to three-year terms of supervised release following their incarceration, and payment of $800 fines.
In addition to conspiracy and distribution of oxycodone, Amy Schneider pleaded guilty in January 2016 to illegally using a Drug Enforcement registration to obtain a controlled substance. Joseph Schneider pleaded guilty to acquiring a prescription by fraud or forgery as well as conspiracy and distribution of oxycodone. The two were held responsible for between 10,000 and 20,000 tablets of oxycodone.
Amy Schneider was the officer manager for a York physician. She was permitted to use pre-signed prescription forms each week. The forms, intended to be used to write prescriptions for refills for patients, were fraudulently used to obtain oxycodone for the couple. Amy Schneider wrote prescriptions for Joseph Schneider. He took the prescriptions to pharmacies to be filled. Most of the oxycodone was consumed by the couple; some of the tablets were distributed to others.
The conspiracy began in approximately January 2014 and continued until at least May 2015.
The case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Christy H. Fawcett.
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Perry County Man Sentenced for Methamphetamine OffenseRead the Press Release
On June 15, 2016, Nicholas C.J. Draege, 25, of DuQuoin, was sentenced for a methamphetamine offense, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
Draege, who had previously pled guilty to one count of conspiracy to distribute methamphetamine, was sentenced to 96 months in federal prison, to be followed by 3 years’ supervised release, and fined $300.00. Evidence at the plea and sentencing hearings established that Draege was involved with others in the manufacture and distribution of methamphetamine. Draege provided pseudoephedrine pills to others to use to manufacture methamphetamine. At sentencing, the judge found that Draege was responsible for the possession of 57.12 grams of pseudoephedrine. The offense occurred between 2013 and June 2015, in Perry, Jackson, and Randolph Counties. The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Perry County Drug Task Force, Percy Police Department, Steeleville Police Department, Mascoutah Police Department, Illinois State Police Methamphetamine Response Team, DuQuoin Police Department, Pinckneyville Police Department, and Drug Enforcement Administration. The Randolph and Perry County State’s Attorney’s Offices also assisted in the investigation.
Organizer of $9 Million Scam Sentenced to 8 Years in Federal Prison in Scheme to Provide Hospice to Patients who were not Terminally IllRead the Press Release
LOS ANGELES – A Placentia woman was sentenced today to 96 months in federal prison related to her operation of a hospice that submitted more than $9 million in fraudulent bills to Medicare and Medi-Cal for purportedly providing end-of-life care to patients who were not actually dying.
Priscilla Villabroza, 70, was sentenced by United States District Judge S. James Otero, who characterized the defendant’s conduct as “callous” and “despicable.” In addition to the eight-year prison term, Judge Otero ordered the defendant to pay $7,433,329 in restitution.
Villabroza is one of 10 defendants who were charged in relation to a fraud scheme run out of the Covina-based California Hospice Care, which Villabroza purchased in late 2007 while under investigation in a prior health care fraud case.
Between March 2009 and June 2013, California Hospice submitted nearly $9 million in fraudulent bills to Medicare and Medi-Cal for hospice-related services, and the public health programs paid nearly $7.5 million.
“This scheme is one of many that has victimized taxpayers who fund public healthcare programs,” said United States Attorney Eileen M. Decker. “This scheme also victimized patients who were needlessly put into hospice and had changes made to their treatment for non-medical reasons. As this case clearly demonstrates, healthcare fraud is not a victimless crime.”
All 10 defendants charged in relation to the California Hospice scheme have pleaded guilty to healthcare fraud charges or were convicted at trial. One of the defendants was accepted into a diversion program.
Following a two-week trial that ended last month, Sri Wijegoonaratna, known as Dr. J., 61, of Anaheim, and Boyao Huang, 43, of Pasadena were found guilty of federal health care fraud charges for falsely certifying that Medicare patients were terminally ill, and therefore qualified for hospice care, when the vast majority of them were not actually dying. Judge Otero is scheduled to sentence defendants Wijegoonaratna and Huang on August 15.
As part of the California Hospice fraud scheme, Villabroza secretly purchased and managed the company, while representing that her daughter, who was also charged in the case, was the true owner. The scheme involved illegal payments to “marketers” or “cappers” for referrals of Medicare and Medi-Cal beneficiaries, false and fraudulent documentation by nurses and false certifications by doctors that the beneficiaries were terminally ill and therefore entitled to hospice benefits – even though the vast majority of them were not terminally ill. Participants in the scheme also fraudulently altered medical records in response to Medicare audits to make the beneficiaries appear sicker than they were in an attempt to deceive the auditors into believing that the beneficiaries were entitled to benefits.
In the prior case, Villabroza was convicted for her role in a scheme that defrauded the Medi-Cal program by fraudulently billing for in-home care provided to disabled patients. She was sentenced in that case to 4½ years in federal prison.
The investigation into California Hospice was conducted by the United States Department of Health and Human Services, Office of Inspector General; the Federal Bureau of Investigation; the California Bureau of Medi-Cal Fraud & Elder Abuse; and IRS Criminal Investigation.
This case is being prosecuted by Assistant United States Attorney Steven Arkow of the Major Frauds Section and Assistant United States Attorney Leon W. Weidman, Special Assistant to the United States Attorney.
Monroe County Tobacco Store Owner Pleads Guilty to Wire Fraud Conspiracy and Aggravated Identity TheftRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that that Rehan A. Merchant, age 39, pleaded guilty to an Information that charged him with conspiring to commit wire fraud, and with aggravated identity theft. Merchant previously was indicted by a federal grand jury on November 10, 2015, and has remained in federal custody since his arrest.
According to United States Attorney Peter Smith, Merchant was the owner and operator of the Cigar and Tobacco Outlet in Tannersville, Pennsylvania. The superseding information charges Merchant with conspiring with unindicted co-conspirators, from in or about September 2014 through September 2015, to use and attempt to use counterfeit and stolen credit and debit cards to make fraudulent purchases at the Cigar and Tobacco Outlet. Merchant and his co-conspirators also allegedly forged the names of cardholders on the associated credit and debit card receipts.
The investigation was conducted by special agents with Homeland Security Investigations and detectives from the Monroe County District Attorney’s Office. The case is being prosecuted by Assistant United States Attorney Phillip J. Caraballo.
Indictments and informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the wire fraud charge is 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. The aggravated identity theft charge carries a mandatory two-year term of imprisonment, to run consecutive to any other term of imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Milton Man Sentenced to 10 Years on Drug and Weapons ConvictionsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Christopher Pappano, age 55, of Milton, Vermont, was sentenced to 10 years in federal prison on drug and weapons charges by U.S. District Court Judge Geoffrey Crawford in U.S. District Court in Rutland on June 8, 2016. Judge Crawford also ordered Pappano to serve a five-year term of supervised release after completing his 10-year jail term.
On January 20, 2016, Pappano pleaded guilty to three federal felonies: conspiring to distribute cocaine; possessing nine stolen firearms; and possessing a handgun as a convicted felon. He has been in the custody of the U.S. Marshal’s Service since his arrest on December 30, 2014. According to court documents, Pappano was the President of “The Brotherhood,” a small motorcycle club that he formed in the summer of 2014. In late 2014, Pappano assaulted several associates, and members of The Brotherhood committed two residential burglaries and three robberies of convenience stores. Pappano reportedly is a member of the Aryan Brotherhood, a white supremacist organization. In resolving his federal charges, Pappano also pleaded guilty to two State of Vermont felony offenses: assault and grand larceny.
The case was investigated by the St. Albans Barracks of the Vermont State Police, the Bureau of Alcohol, Tobacco and Firearms, and the Milton Police Department. Pappano was represented by attorney Robert Katims. The United States was represented by Assistant U.S. Attorney Bill Darrow.
Mexican National Sentenced to 20 Years in Prison for Sex Trafficking of a MinorRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, announce that Timoteo Reyes-Perez, 35, of Mexico, was sentenced by U.S. District Judge Kenneth A. Marra to 20 years in prison.
Reyes-Perez previously pled guilty to sex trafficking of a minor, in violation of Title 18, United States Code, Sections 1591(a)(1) and (b)(2). Reyes-Perez, who was originally charged by authorities in 2008, was a fugitive until last year, when he was extradited to the United States from Mexico.
According to court documents, Reyes-Perez met and married his victim in Mexico when she was 14 years old. Soon after, Reyes-Perez smuggled her across the border into the United States and proceeded to transport her to New York, Atlanta, and finally, the Southern District of Florida. Reyes-Perez prostituted the victim at brothels in multiple locations, including West Palm Beach. At times, she was forced to have sex with up to 30 men per night. Reyes-Perez kept the proceeds of her prostitution. At sentencing, the victim spoke about how Reyes-Perez had forced her into prostitution against her will, using physical and sexual violence to ensure her compliance. She also spoke about the lasting emotional and psychological damage she sustained.
Five other defendants who were also charged in the same indictment pled guilty to sex trafficking of a minor and were sentenced in 2009 to terms of imprisonment ranging from 60 to 160 months.
Mr. Ferrer commended the investigative efforts of ICE-HSI. The case was prosecuted by Assistant U.S. Attorney Olivia S. Choe.
Human trafficking must stop. To report suspected human trafficking occurring in South Florida, please call the National Human Trafficking Resource Center Hotline at 1-888-373-7888.
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.
Mescalero Apache Man Pleads Guilty to Federal Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Daniel Pete Valdez, 44, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., pleaded guilty today in federal court in Las Cruces, N.M., to a sexual abuse charge.
Valdez was arrested on Aug. 25, 2015, on a criminal complaint charging him with sexually assaulting a woman on June 20, 2014, on the Mescalero Apache Indian Reservation in Otero County., N.M. Valdez was subsequently indicted on Jan. 20, 2016, on a sexual abuse charge.
According to court documents, Valdez engaged in a sexual act with the victim while she was unconscious and physically incapable of declining participation in or communicating unwillingness to engage in the sexual act.
Valdez pled guilty today without the benefit of a plea agreement. At sentencing, Valdez faces a maximum penalty of life in federal prison. Valdez remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
Maryland man sentenced for heroin distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – John Sanders, 25, of Williamsport, Maryland, was sentenced to 120 months in prison today for distribution of heroin, United States Attorney William J. Ihlenfeld, II, announced.
Sanders sold heroin in June 2014 near Martinsburg, West Virginia that led to the death of a 29- year-old Hagerstown, Maryland man. He pled guilty in November 2015 to a criminal Information charging him with one count of “Aiding and Abetting the Distribution of Heroin.”
Assistant U.S. Attorney Paul T. Camilletti prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Maryland Man Sentenced to More Than Eight Years in Prison for Scheme to Obtain More Than $7 Million in Fraudulent Tax RefundsRead the Press Release
Caused 14 False Tax Returns to be Filed in Just Six Months Claiming $7,753,940 in Refunds
A College Park, Maryland, man was sentenced to 97 months in prison today following his conviction in November 2015 by a federal jury on one count of conspiring to defraud the United States and six counts of filing false income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Rod J. Rosenstein of the District of Maryland and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service-Criminal Investigation’s (IRS-CI) Washington, D.C. Field Office.
According to the evidence presented at trial, between March and June 2009, Charles W. Parker Jr., 49, recruited clients for co-conspirator Penny Jones, 65, formerly of Rigby, Idaho. Jones, a tax return preparer in Idaho, prepared tax returns falsely reporting the amount of taxes withheld and purportedly paid to the IRS. Parker collected financial information from clients and provided it to Jones for the preparation of the false tax returns. Parker paid Jones to prepare false tax returns for Parker and others. Parker mailed the false tax returns to the IRS for the years 2005 to 2008, claiming large tax refunds to which the clients were not entitled. Parker caused the filing of 14 false tax returns in just a six month period that fraudulently claimed $7,753,940 in tax refunds.
In addition to the prison term, U.S. District Judge Roger W. Titus for the District of Maryland ordered Parker to serve three years of supervised release and pay restitution to the IRS in the amount of $2,007,568. In 2013, Jones was sentenced to 144 months in prison for her role in the scheme.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Rosenstein thanked special agents of IRS-CI, who investigated the case and Assistant U.S. Attorney Leah Jo Bressack of the District of Maryland and Trial Attorney Erin Pulice 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.
Martinsburg woman sentenced for mail fraudRead the Press Release
MARTINSBURG, WEST VIRGINIA – Debra M. Moses, 47, of Martinsburg, West Virginia, was sentenced today to 24 months in prison for mail fraud, United States Attorney William J. Ihlenfeld, II, announced.
Moses, a legal assistant at Cassell and Prinz, PLLC, devised a scheme to defraud her employer of attorney fees paid by the United States Social Security Administration by endorsing U.S. Treasury checks payable to “John M. Cassell Attorney” and mailing them to Baltimore, MD for deposit into her personal checking account. Over a nearly seven year period, Moses deposited in excess of $300,000 into her checking account.
Moses pled guilty in March 2016 to one count of “Mail Fraud.”
Assistant U.S. Attorney Paul T. Camilletti prosecuted the case on behalf of the government. The United States Secret Service and the United States Social Security Administration investigated.
Chief U.S. District Judge Gina M. Groh presided.
Maine Man Sentenced to Five Years for Conspiracy to Traffic Oxycodone and CocaineRead the Press Release
Contact: Daniel J. Perry
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Anthony Lacomb, 30, of Biddeford, Maine, was sentenced in U.S. District Court by Chief Judge Nancy Torresen to five years in prison to be followed by three years of supervised release for conspiracy to distribute oxycodone and cocaine. Lacomb pleaded guilty on February 24, 2016.
According to court records, Lacomb was a manager of a group of people who imported oxycodone and cocaine from Rhode Island to Maine in 2014 and 2015. In April 2015, Lacomb was arrested in Scarborough when an undercover agent ordered cocaine and oxycodone from him. When Lacomb and another conspirator arrived to conduct the transaction, they were arrested and about an ounce of cocaine and 35 oxycodone pills were seized.
This case results from a joint investigation conducted by the U.S. Drug Enforcement Administration and Scarborough Police Department.
Kankakee Latin Kings Leader, Members Face Charges in Federal CourtRead the Press Release
Urbana, Ill. - Five Kankakee area men identified as local leaders and members of the Latin Kings and a girlfriend of one of the men are scheduled for trial in August 2016, on federal charges, after making their respective initial appearances in Urbana, Ill., before U.S. District Judge Colin S. Bruce. A federal grand jury returned three indictments earlier in June 2016, but the charges had remained sealed pending their arrests and court appearances.
James Atwood, 31, of Bourbonnais, Ill., Jessie Dorsett, 22, and Jovan Saulsberry, both of Kankakee, Ill., are charged in one indictment with conspiracy to distribute cocaine from Nov. 5, 2014 to Feb. 3, 2015, and with distribution of cocaine. If convicted, both offenses carry statutory penalties of up to 20 years in prison; if a defendant has a prior felony drug conviction, the statutory penalty increases to up to 30 years in prison.
In a separate indictment, Jesse Guardiola, 43, of the 2200 block of E 3100 North Road, Martinton, Ill., is charged with five counts of possession of a firearm by a felon. The indictment alleges that Guardiola possessed firearms on five occasions in 2014 and 2015. Guardiola’s girlfriend, Heather Grad, 30, of the 300 block of E. Court St., Kankakee, Ill., is charged with Guardiola in count two of the indictment, with possession of a firearm by a felon on Feb. 11, 2015.
A third indictment charges Santos Salgado, 30, of the 800 block of E. Station, Kankakee, Ill., with two counts of possession of a firearm by a felon in 2016 and 2014.
If convicted, possession of a firearm by a felon carries a statutory penalty of up to 10 years in prison.
Atwood, Saulsberry, Guardiola, and Salgado remain in the custody of the U.S. Marshals Service. Dorsett is already in the custody of the Illinois Department of Corrections on unrelated charges. Grad has been released on bond. Trial for the defendants in each case is scheduled on Aug. 16, 2016.
The charges are the result of ongoing investigations related to violent crime in the Kankakee area by the Kankakee Area Project Safe Neighborhoods Task Force; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Kankakee Police Department; Kankakee Area Metropolitan Enforcement Group; Kankakee County Sheriff’s Office; Illinois State Police; and Kankakee County Corrections. The cases are being prosecuted by Assistant U.S. Attorney Bryan Freres in cooperation with the Kankakee County State’s Attorney’s Office.
Members of the public are reminded that an indictment is merely an accusation; the defendants are presumed innocent unless proven guilty.
Justice Department Settles Immigration-Related Discrimination Claims Against 121 Residency Programs and American Association of Colleges of Podiatric MedicineRead the Press Release
The Justice Department announced today that it has reached agreements with 121 podiatry residency programs and the American Association of Colleges of Podiatric Medicine (AACPM) to resolve claims that they discriminated against work-authorized non-U.S. citizens in violation of the Immigration and Nationality Act (INA).
The department’s investigations found that between 2013 and 2015, the programs and AACPM created and published discriminatory postings for podiatry residents through AACPM’s online podiatry residency application and matching service. Specifically, the department determined that hundreds of job postings limited podiatry residency positions to U.S. citizens even though there was no legal authorization for the citizenship requirement. Several work-authorized non-U.S. citizens stated that they were discouraged or deterred from applying to residency programs because of the citizenship requirements, and the department concluded that two lawful permanent residents were denied consideration for positions because of unlawful citizenship requirements.
Under the settlement agreements, the programs are required to remove citizenship requirements from podiatry residency postings except where required by law, train staff involved in the advertising and hiring of podiatric residents and ensure that future residency postings are reviewed by staff trained in equal employment opportunity laws or by legal counsel. Some of the settlements also require the programs to pay a civil penalty, amounting to total civil penalties from the programs of $141,500.
The settlement with AACPM requires it to pay $65,000 in civil penalties, train its staff on the anti-discrimination provision of the INA and ensure that all participating programs receive such training before they may use AACPM’s online system to advertise residency positions. The settlement also requires AACPM to refund the fees that the charging party paid to use AACPM’s residency application and matching system.
“Immigrants authorized to work in our country should never face unlawful discriminatory barriers to employment,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Across the industry, these settlements will ensure that qualified medical students have equal opportunities to join podiatric residency programs and provide healthcare services to our communities.”
The INA’s anti-discrimination provision prohibits employers from discriminating in hiring, firing and recruiting or referring for a fee based on a person’s citizenship, immigration status or national origin. Employers may not limit job opportunities to U.S. citizens unless employers have a legal basis to do so, such as a law, regulation or government contract that imposes citizenship requirements on the position. Similarly, recruiters and referrers for a fee may not impose barriers to obtaining employment based on an individual’s citizenship, immigration status or national origin. This means, for instance, that unless a legal exception applies, they may not advertise jobs as available only to U.S. citizens because doing so excludes other work-authorized individuals, such as U.S. nationals, lawful permanent residents (often referred to as green card holders), asylees and refugees.
The department began its investigations of the programs and AACPM in 2015 after receiving a charge against AACPM from a podiatry medical student with lawful permanent residence. The charge alleged that AACPM published a series of podiatry residency job announcements that unlawfully restricted positions to U.S. citizens through AACPM’s online application service. The charge further claimed that AACPM used its online service to collect citizenship status information from residency applicants and share that information with residency programs.
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship status and national origin discrimination in hiring, firing, recruitment or referral for a fee; document abuse; retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar 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 were subjected to discrimination based on their citizenship status, immigration status or national origin in hiring, firing, recruitment or referral; or different documentary requirements based on their citizenship status, immigration status or national origin should contact the worker hotline above for assistance.
Podiatry Settlement - AACPM
Podiatry Settlement Category 1
Podiatry Settlement Category 2
Podiatry Settlement - Genesys Regional Medical Center
Podiatry Settlement - Northwest Medical Center
Justice Department Finds that Nevada Discriminates Against Inmates with HIV and Inmates with Other DisabilitiesRead the Press Release
The Justice Department issued a letter of findings today concluding that the Nevada Department of Corrections’ (NDOC) policies and practices for housing and employing inmates with disabilities violate the Americans with Disabilities Act (ADA). Following a comprehensive ADA compliance review, the department found that NDOC’s discriminatory practices have resulted in the illegal segregation and stigmatization of inmates with HIV and the incarceration of inmates with disabilities for longer periods, in more restrictive settings, than inmates without disabilities.
The department’s letter makes three principal findings. First, NDOC segregates inmates with HIV through a policy prohibiting the housing of inmates with HIV in the same cells as inmates who do not have HIV. Second, NDOC denies inmates with HIV equal employment opportunities. Third, NDOC denies inmates with various disabilities, including those with mobility disabilities, HIV or certain other medical or mental health conditions, equal opportunities to benefit from the programs offered at two of NDOC’s lowest-custody facilities –its conservation camps and transitional-housing facilities.
The department found that these discriminatory practices have the following effects:
- NDOC’s segregation of inmates with HIV stigmatizes them while indiscriminately disclosing their confidential HIV status to NDOC employees and inmates. This segregation policy is without any legitimate health justification, as leading public health and correctional authorities, including the National Commission on Correctional Health Care, oppose the routine segregation of inmates with HIV as medically unnecessary.
- Inmates who work in NDOC prisons, and those who are housed in conservation camps or transitional-housing facilities, can earn “work credits” to reduce the lengths of their sentences. By denying inmates with HIV equal employment opportunities, and by denying inmates with disabilities equal opportunities to benefit from the services, programs and activities available to inmates at conservation camps and transitional-housing facilities, NDOC deprives inmates with disabilities of equal opportunities to engage in productive activities and to accelerate their NDOC release dates.
- By denying inmates with disabilities equal opportunities to obtain placement at its lower-custody and lower-security facilities, NDOC confines them in more restrictive settings than they otherwise would be housed.
“The ADA’s promises of non-discriminatory treatment and equal opportunity apply to all people with disabilities, including inmates at correctional facilities,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “No inmate should have to stay in segregated housing because of a HIV diagnosis or serve a longer sentence because of a disability. Real and lasting reform in Nevada will require not only systemic changes to its policies, practices and procedures, but also a commitment to address unfounded stereotypes, fears and assumptions about individuals with disabilities.”
The department commends Nevada for its cooperation with this ADA compliance review and will continue to work closely with NDOC and Nevada’s Office of the Attorney General to resolve the department’s findings expeditiously and under mutually-agreeable terms.
To read the full findings letter, please visit www.ada.gov. For more information about the ADA, call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
Nevada Department of Corrections
Justice Department Closes Investigation into the Death of Kendrick JohnsonRead the Press Release
The Department of Justice announced today that the independent federal investigation into the 2013 death of 17-year-old Kendrick Johnson in Valdosta, Georgia, found insufficient evidence to support federal criminal charges.
Officials from the U.S. Attorney’s Office for the Northern District of Ohio, Middle District of Georgia, and District of Columbia met today with members of Kendrick Johnson’s family to inform them of the findings and the conclusion of the investigation.
Kendrick Johnson’s body was found in a rolled-up gym mat inside Lowndes High School on January 11, 2013. Nearly four months later, on May 2, 2013, the GBI Medical Examiner issued her autopsy report, concluding that Kendrick died from “positional asphyxia” – essentially, that he became entrapped upside-down in the rolled-up mat and had suffocated. The Medical Examiner ruled Kendrick’s death an accident. Shortly thereafter, the Lowndes County Sheriff’s Office closed its investigation.
On June 15, 2013, at his family’s request, Kendrick Johnson’s body was exhumed and Dr. William Anderson conducted a second autopsy. Two months later, Dr. Anderson determined the cause of death was blunt force trauma to the right side of Kendrick’s neck, near the jaw, and the manner of death was not an accident. He found hemorrhages to the jaw line area not detected during the GBI autopsy.
On October 31, 2013, the U.S. Attorney’s Office for the Middle District of Georgia announced its investigation to determine whether Kendrick Johnson’s death involved violations of federal criminal statutes including, but not limited to, federal criminal civil rights statutes codified at 18 U.S.C. Sections 241, civil rights conspiracy, and 245, interference with federally-protected rights.
Lawyers and investigators from the Department of Justice, the United States Marshal’s Service, and the Metropolitan Police Department for the District of Columbia, conducted a thorough and comprehensive investigation of the events surrounding Kendrick’s death. The investigation included, among other things, interviewing nearly 100 people; reviewing tens of thousands of emails and text messages; reviewing surveillance videos from Lowndes High School; and analyzing other available information regarding the events of January 10-11, 2013. The investigative team also consulted with an independent Department of Defense medical examiner and hired another independent medical examiner/forensic pathologist who reviewed relevant medical records and both autopsy reports.
In order to establish a federal criminal civil rights violation in this case, the government would have to prove beyond a reasonable doubt not only that someone killed Kendrick Johnson, but that the killing was motivated by racial animus. This legal standard – proving beyond a reasonable doubt that an act was committed, identifying who committed the specific act, and proving why they committed the act – is a high threshold to meet.
After extensive investigation into this tragic event, federal investigators determined that there is insufficient evidence to prove beyond a reasonable doubt that someone or some group of people willfully violated Kendrick Johnson’s civil rights or committed any other prosecutable federal crime. Accordingly, the investigation into this incident has been closed without the filing of federal criminal charges.
“The Department of Justice, in particular the lawyers and investigators who have worked tirelessly on this investigation, express their most sincere condolences to Kendrick Johnson’s parents, family, and friends,” said Acting United States Attorney Carole Rendon. “We cannot imagine the pain of their loss, or the depths of their sorrow. We regret that we were unable to provide them with more definitive answers about Kendrick’s tragic death.”
Joint Statement from Justice Department and FBI Regarding Transcript Related to the Orlando Terror AttackRead the Press Release
The Department of Justice and the Federal Bureau of Investigation (FBI) issued the following statement regarding the FBI's release of the transcript related to the Orlando shooting:
“The purpose of releasing the partial transcript of the shooter's interaction with 911 operators was to provide transparency, while remaining sensitive to the interests of the surviving victims, their families, and the integrity of the ongoing investigation. We also did not want to provide the killer or terrorist organizations with a publicity platform for hateful propaganda. Unfortunately, the unreleased portions of the transcript that named the terrorist organizations and leaders have caused an unnecessary distraction from the hard work that the FBI and our law enforcement partners have been doing to investigate this heinous crime. As much of this information had been previously reported, we have re-issued the complete transcript to include these references in order to provide the highest level of transparency possible under the circumstances.”
Transcript of Orlando Police Department 911 Calls, June 12, 2016
2:35 a.m.: Shooter contacted a 911 operator from inside Pulse. The call lasted approximately 50 seconds, the details of which are set out below:
(OD) Orlando Police Dispatcher
(OM) Omar Mateen
OD: Emergency 911, this is being recorded.
OM: In the name of God the Merciful, the beneficent [Arabic]
OD: What?
OM: Praise be to God, and prayers as well as peace be upon the prophet of God [Arabic]. I wanna let you know, I’m in Orlando and I did the shootings.
OD: What’s your name?
OM: My name is I pledge of allegiance to Abu Bakr al-Baghdadi of the Islamic State.
OD: Ok, What’s your name?
OM: I pledge allegiance to Abu Bakr al-Baghdadi may God protect him [Arabic], on behalf of the Islamic State.
OD: Alright, where are you at?
OM: In Orlando.
OD: Where in Orlando?
[End of call.]
Individual Arrested for Malicious Use of ExplosivesRead the Press Release
SAN JUAN, P.R. – United States Magistrate Judge Silvia Carreño-Coll authorized a criminal complaint charging Noel D. Cruz-Torres (“Cruz-Torres”) with malicious use of explosives. Cruz-Torres was arrested after throwing Molotov cocktails at the DuPont Pioneer building in Salinas, PR, and at PRPD officers who detained him, announced United States Attorney Rosa Emilia Rodríguez-Vélez. The FBI is in charge of the investigation with the collaboration of the Puerto Rico Police Department.
According to the information contained in the criminal complaint and affidavit, on June 18, 2016, at approximately 3:30 am, someone called 911 to report an explosion near DuPont Pioneer. When police and firefighters arrived, they saw a vehicle burning nearby. A security guard reported that an individual was throwing Molotov cocktails at the building. The officers walked around the building and saw Cruz-Torres wearing a black t-shirt wrapped around his face and carrying a black backpack. While police pursued Cruz-Torres, he threw various Molotov cocktails at the officers. He also threw another lit Molotov at the fire truck.
Cruz-Torres had a flag with the words “LEVANTATE BORICUA Q HA LLEGADO EL MOMENTO DE DEFENDER NTRA PATRIA: VIVA P.R. Libre” (sic) (as translated in the criminal complaint, “Rise up Puerto Rican, the moment to defend our fatherland has arrived: long live free Puerto Rico.”)
DuPont Pioneer is an agricultural business that conducts crop-genetic research and development. It imports seed from Iowa for research purposes.
The case is being prosecuted by Assistant United States Attorney Alexander Alum. If convicted defendant faces a minimum penalty of five years and up to 20 years in prision. A criminal complaint contains only charges and is not evidence of guilt. A defendant is presumed to be innocent unless and until proven guilty.
Huntington heroin dealer pleads guilty to Federal drug crimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pleaded guilty today to a federal heroin crime, announced Acting United States Attorney Carol Casto. Lamont Walter Haywood, 38, entered his guilty plea to distribution of heroin.
Haywood admitted that on January 22, 2015, he sold heroin to a confidential informant working with the Huntington FBI Drug Task Force. The drug deal took place at Star Communications, located on 8th Avenue in Huntington.
Haywood faces up to 20 years in federal prison when he is sentenced on September 19, 2016.
The Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney Gregory McVey is responsible for the prosecution. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
This prosecution is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
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Houston Resident Guilty of Federal Drug Trafficking Following $1.2 Million Dollar Cash SeizureRead the Press Release
Nahum Shibeshi, 28, of Houston, Texas, pleaded guilty on June 16, 2016, in US District Court to conspiracy to distribute cocaine and interstate travel in support of racketeering activities, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
On February 18, 2016, a federal grand jury handed down an indictment alleging that eight Houston residents participated in a conspiracy to distribute more than 5 kilograms of cocaine into the Southern District of Illinois. In addition to the drug crimes, the indictment seeks forfeiture of $1,212,934 in US Currency that was seized on December 2 and 3rd of 2015, along with jewelry appraised at $72,000. As part of his plea, Shibeshi agreed to forfeit any interest he has in any of the property that was seized.
As charged in this case, conspiracy to distribute cocaine is punishable by not less than 10 years’ imprisonment up to life, a $10,000,000 fine, and not less than 5 years supervised release. Interstate travel in support of racketeering activities is punishable by not more than 5 years’ imprisonment, a $250,000 fine and not more than three years supervised release. However, the United States Sentencing Guidelines must be applied to the case and considered by the Court during sentencing. Shibeshi is scheduled to be sentenced on October 14, 2016. The remaining seven defendants are scheduled for trial on August 15, 2016.
The investigation is being conducted by agents from the Drug Enforcement Administration as part of the OCDETF program. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
An indictment is a formal charge against a defendant. Under the law, the remaining co-defendants are presumed to be innocent of a charge until proved guilty beyond a reasonable doubt.
Granite Bay Property Investor Indicted for Mail and Wire FraudRead the Press Release
SACRAMENTO, Calif. — A federal grand jury has returned a 16-count indictment against John Stuart Hill, 32, of Granite Bay, charging him with wire fraud and mail fraud, Acting United States Attorney Phillip A. Talbert announced.
Hill was indicted on April 28, 2016, and the indictment had been sealed until today, when he was arraigned by United States Magistrate Judge Edmund F. Brennan. The defendant entered a not guilty plea.
According to court documents, between August 9, 2011, and April 2013, Hill, acting under the business name Granite Bay Investment Partners (GBIP), solicited and received money from investors who intended that their money would be used to purchase, rehabilitate, and resell residential property in the Sacramento area. In reality, the indictment alleges that Hill used the money for his own personal expenses, made false accounting entries on statements he sent to his investors, and misrepresented the purchase and resale prices of the properties in question. In some cases, the properties that Hill alleged his investors to be rehabilitating had never been purchased by Hill or GBIP. In other cases, multiple investors were told that they were partners on the same property in order to increase the amount invested to far above the purchase and rehabilitation costs. According to court documents, Hill received at least $1.9 million from investors, only $600,000 of which was ever returned, leaving at least $1.3 million unaccounted for.
Hill was ordered detained pending trial. His next court appearance is scheduled for August 18, 2016, before United States District Judge Morrison C. England Jr.
This case was the product of an investigation by the United States Secret Service. Assistant United States Attorney Matthew G. Morris is prosecuting the case.
If convicted, Hill faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Gloversville Accounting Firm Employees Sentenced for Tax FraudRead the Press Release
ALBANY, NEW YORK – Three people were sentenced last week for conspiring to defraud the United States and filing fraudulent tax returns.
The announcement was made by United States Attorney Richard S. Hartunian and Shantelle P. Kitchen, Special Agent in Charge of IRS-Criminal Investigation’s New York Field Office.
Carmen Gentile, age 54, of Amsterdam, New York, was sentenced on June 13 to a five-year term of probation, fined $10,000, and ordered to pay restitution to the United States. Angela Witzke, age 40, of Amsterdam, New York, and a certified public accountant, was sentenced on June 13 to a three-year term of probation for her role in the scheme. Michelle Lennon, age 43, of Gloversville, New York, was sentenced on June 16 to a one-year term of probation. Senior U.S. District Judge Gary L. Sharpe presided over the case.
All three defendants worked at Complete Financial Accounting Services in Gloversville, which Gentile owned and operated. As part of their guilty pleas, Gentile, Witzke, and Lennon each admitted that they worked together to prepare, and submit to the IRS, dozens of tax returns for clients that omitted income and claimed inflated charitable contributions, expenses, and losses. They admitted filing these returns despite knowing they contained false statements concerning their clients’ income, expenses and losses.
This case was investigated by IRS-Criminal Investigation’s New York Field Office and was prosecuted by Assistant United States Attorney Wayne A. Myers.
Former medical practice manager pleads guilty to obtaining prescription opioids by fraudRead the Press Release
CHARLESTON, W.Va. – A Nicholas County woman who issued herself prescriptions without authorization from a doctor pleaded guilty today, announced Acting United States Attorney Carol Casto. Cary Lynn Eades, 47, of Mount Nebo, entered her guilty plea to obtaining the prescription opioid pain medication tramadol by fraud.
On numerous occasions between January 2012 and March 2015, Eades took advantage of her position as a medical practice manager to issue herself prescriptions for tramadol using the names and DEA registration numbers of doctors for whom she worked. Eades filled prescriptions at pharmacies in Nicholas, Fayette, and Kanawha counties. The Central West Virginia Drug Task Force became involved in February 2015 when one of the medical practices reported suspicious prescriptions being issued to Eades.
Eades was indicted in Fayette and Nicholas counties in 2015 on more than 30 felony counts of obtaining a prescription by fraud. Her guilty plea in federal court reflects a consolidation of those charges as well as potential charges in Kanawha County.
Eades faces up to four years in federal prison when she is sentenced on September 26, 2016.
This case was investigated by the Central West Virginia Drug Task Force. Assistant United States Attorney Joshua Hanks is in charge of the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
This prosecution is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
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Former Suffolk University Employee Pleads Guilty to Stealing over $40,000 in Student Loans by Changing GradesRead the Press Release
BOSTON – A Suffolk University employee pleaded guilty today in U.S. District Court in Boston in connection with fraudulently obtaining over $40,000 in federal student loan funds by falsifying her own records to make it appear that she was a Suffolk University graduate student when in fact she was not.
Ashley Ciampa, 28, of Medford, pleaded guilty today to student loan fraud. U.S. District Court Judge F. Dennis Saylor, IV scheduled sentencing for Oct. 5, 2016.
In 2009, Ciampa began working in the Registrar’s Office at Suffolk University. In 2013, she enrolled in Suffolk’s MBA program free of charge as an employee. In a first-semester business ethics class, Ciampa failed to attend class or complete the required coursework, but instead used her computer access in the Registrar’s Office to assign herself an “A” for the course. In subsequent semesters, she repeatedly assigned herself passing grades for classes she never attended. By maintaining the appearance that she was a graduate student, she was able to borrow $47,453 in federal student loans beginning in 2014, which she spent for vacations and other personal expenses.
The charge of student loan fraud provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $20,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Brian Hickey, Special Agent in Charge of the U.S. Department of Education, Office of Inspector General, Region I and II, made the announcement today. The case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Former State Representative Admits to Mortgage Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that VICTOR CUEVAS, 52, of Bristol, waived his right to indictment and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to conspiring with others to commit bank fraud in connection with his home mortgage loan applications.
According to court documents and statements made in court, in the summer of 2013, CUEVAS, a City of Waterbury employee and, at that time, the state representative for the 75th District, wanted to purchase a residence in Bristol with a Federal Housing Administration (“FHA”) loan.
The U.S. Department of Housing and Urban Development provides mortgage insurance on loans made through its FHA program and mortgages offered through the program are subject to certain restrictions, including restrictions on the funds that may be used to purchase properties.
CUEVAS, with the assistance of others, represented to the mortgage bank that he was using gifted funds to purchase the property when, in fact, the money was not gifted but was instead loaned to CUEVAS for the purpose of purchasing the property.
Specifically, CUEVAS first represented to the mortgage bank that an individual who he identified as his nephew but, in fact, was a subordinate employee from the City of Waterbury, was providing him with cash to purchase the property as a gift. When the mortgage lender asked for the “nephew’s” bank account statements to prove that he had the money to gift to CUEVAS, CUEVAS withdrew the mortgage application. A few weeks later, CUEVAS had a different Waterbury employee, who CUEVAS identified as his “cousin,” “gift” him the $7,000. Both individuals signed a HUD statement under oath that the funds were, indeed, a “gift” and that no repayment of the monies was expected. However, as soon as the mortgage closed, CUEVAS re-paid the employee the $7,000.
CUEVAS pleaded guilty to one count of conspiracy to commit bank fraud, which carries a maximum term of imprisonment of five years. Judge Meyer scheduled sentencing for September 21, 2016.
CUEVAS resigned from the Connecticut General Assembly in March 2016.
This matter is being investigated by the Connecticut Public Corruption Task Force, notably the U.S. Department of Housing and Urban Development – Office of Inspector General, and the Federal Bureau of Investigation. The Task Force also includes members from the U.S. Department of Health and Human Services – Office of Inspector General, U.S. Postal Inspection Service and Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Sarah Karwan.
Citizens are encouraged to report corruption to the Connecticut Public Corruption Task Force by calling 203-238-0505.
Former Employee of Contract Postal Unit Sentenced to Probation for Destroying U.S. MailRead the Press Release
ALBUQUERQUE – Monique N. Padilla, 29, of Rio Rancho, N.M., was sentenced today in federal court in Albuquerque, N.M., to two years of probation for her conviction on an opening and destruction of mail charge.
Padilla was charged in a misdemeanor information filed on Feb. 17, 2016, with unlawfully opening and destroying mail not directed to her. At the time she committed the crime, Padilla was employed by a contract postal unit in Rio Rancho.
On Feb. 23, 2016, Padilla pled guilty to the information and admitted that on Dec. 15, 2015, she intentionally opened other people’s mail.
This case was investigated by the U.S. Postal Service Office of Inspector General. Assistant U.S. Attorney Edward Han prosecuted the case.
Former Bakersfield Police Detective Pleads Guilty to Drug TraffickingRead the Press Release
FRESNO, Calif. — Patrick Mara, 36, of Bakersfield, a former detective with the Bakersfield Police Department (BPD), pleaded guilty today to conspiracy to distribute and possess with the intent to distribute methamphetamine, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, between June 14, 2012, and October 2013, Mara was assigned to the Southern Tri-County Task Force of the Central Valley High Intensity Drug Trafficking Area (HIDTA). He abused his position of trust and authority by conspiring with his partner, Damacio Diaz, to seize narcotics in the course of their official duties and intentionally fail to submit the seized narcotics to the BPD evidence room. Instead, on multiple occasions, Mara and Diaz retained possession of seized narcotics for their own unlawful personal gain, purpose and sale. Mara admits that he and Diaz unlawfully seized and maintained possession of approximately 20 pounds of methamphetamine.
According to the plea agreement, Mara will forfeit $80,000 obtained from this criminal conduct. On May 31, 2016, Damacio Diaz pleaded guilty to related charges.
“Mara took advantage of the trust placed in law enforcement officers for his personal gain. In so doing, he undermined the public trust and he betrayed the honest, hard-working officers who risk their lives daily to protect our community. Moreover, he put those officers — and the public — in danger. Misconduct by police officers will not be tolerated, which has been the message expressed by BPD Chief Greg Williamson from the inception of this investigation,” Acting U.S. Attorney Talbert said. “I would like to personally thank Chief Williamson and his Department for their invaluable assistance with this investigation. Chief Williamson devoted resources to work hand-in-hand with the FBI, the DEA and our Office throughout this investigation in a sincere effort to root out corruption.”
Acting U.S. Attorney Talbert went on to say: “While our investigation is continuing and it is premature to say more at this time, I can say that the allegation recently made to the media that there is widespread corruption within BPD is one that our investigation has not substantiated.”
“Patrick Mara took an oath to serve and protect the public, yet he chose to participate in criminal conduct to serve his own interests for profit. This type of behavior from a law enforcement officer is unacceptable. Those who commit such crimes are not worthy to wear the badge and serve their communities,” stated DEA Special Agent in Charge John J. Martin. “DEA will continue to work with our law enforcement counterparts to weed out officers who abuse their position.”
Assistant Bakersfield Police Chief Lyle Martin stated: “The Bakersfield Police Department is dedicated to building and maintaining community trust by holding its employees accountable for their actions. We will continue to work with our local, state and federal partners through the conclusion of this investigation.”
This case is the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, and the Bakersfield Police Department. Assistant United States Attorneys Brian K. Delaney and Angela Scott are prosecuting the case.
Mara faces a maximum statutory penalty of life in prison and a $10 million fine. 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.
Florida Man Pleads Guilty to Scheming to Collect Compensation for Active-Duty Military Members Who Suffer Foreclosure LossesRead the Press Release
WASHINGTON – David Bernier, 52, of Fort Lauderdale, Fla., pled guilty today to a federal charge stemming from a scheme in which he forged military records and made false statements in an attempt to collect over $700,000 under a federal law meant to protect active duty military members from suffering losses through mortgage foreclosures.
The guilty plea was announced by Channing D. Phillips, U.S. Attorney for the District of Columbia, Michael E. Horowitz, Inspector General for the Department of Justice, and James Springs, Inspector General for the National Archives and Records Administration.
Bernier pled guilty in the U.S. District Court for the District of Columbia to a charge of making a false statement. The charge carries a statutory maximum of five years in prison and potential financial penalties. Under federal sentencing guidelines, he faces a likely range of 24 to 30 months in prison and a potential fine of $10,000 to $95,000. The Honorable Colleen Kollar-Kotelly scheduled sentencing for Oct. 4, 2016.
The scheme involved Bernier’s claims that he was entitled to protection under the Servicemembers Civil Relief Act, a law that provides protections for military members as they enter active duty. Among other things, the law prohibits non-judicial foreclosures against service members who are in military service or within the applicable post-service period, as long as they originated their mortgages before their period of military service began.
In 2012, the United States settled two lawsuits against financial institutions accused of improperly foreclosing on mortgages of active duty military service personnel. The court agreements led to the creation of settlement funds out of which payments would be made to qualified individuals whose homes had been wrongfully foreclosed upon.
Bernier filed two such claims in 2014, involving foreclosures that took place in 2008 and 2009 of two condominiums he owned in Fort Lauderdale. In both claims, Bernier stated that the properties were foreclosed upon while he was on active duty in the U.S. Air Force in Iraq. He also provided documentation claiming he had received the Defense Meritorious Service Medal and Citation for conduct in Iraq from July 2008 to March 2010. Under the settlement agreements, if the claims were valid, Bernier could have received a total of $730,000.
However, the financial institutions were unable to substantiate Bernier’s claims, leading him to submit follow-up documents and make statements attesting to his service. In fact, an investigation determined that the documents Bernier had submitted were forgeries. At the time that Bernier supposedly was in Iraq, he was in fact working in the state of Washington. No money was paid to Bernier, whose actions became the subject of a criminal investigation.
In announcing the plea, U.S. Attorney Phillips, Inspector General Horowitz, and Inspector General Springs commended those who investigated the case from the Offices of Inspector General for the Department of Justice and the National Archives and Records Administration. They also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Document Management Analyst John Lowell, and Assistant U.S. Attorney Peter C. Lallas, who is prosecuting the matter.
Elder Justice Task Force Launched and World Elder Abuse Awareness Day RecognizedRead the Press Release
CEDAR RAPIDS, IA – Nursing facilities and other institutions do not always provide the care and dignity that elderly residents deserve, and millions of elderly Americans suffer each year from other forms of abuse, neglect, or exploitation. Facility and institutional failures to provide the care the government pays for results in the waste of government resources and potentially lethal consequences to beneficiaries. Speaking only of the financial impact of elder abuse, it is estimated that elderly Americans lose an estimated $2.6 billion or more annually due to financial abuse or exploitation. It occurs in every demographic, and it can happen to anyone.
With this backdrop, the United States Attorney’s Office for the Northern District of Iowa was selected as one of 10 nationwide districts to form an Elder Justice Task Force (http://go.usa.gov/cSngj). The task force is being assembled to foster a collaborative working relationship among all levels of government officials, advocacy groups for the elderly and the disabled, and others charged with the care and protection for these vulnerable groups. The goals include ensuring the integrity of all government expenditures by eliminating fraud, waste, and abuse in health programs, and protecting some of the state’s most vulnerable citizens from harm, whether it occurs in nursing homes or other institutions or involves financial fraud schemes.
Earlier today, United States Attorney Kevin W. Techau discussed the goals of the task force during a press conference held at the Oakhill Jackson Community Church in Cedar Rapids. The church serves as a Senior Center during the week.
Techau stated, “It is most appropriate that last Thursday World Elder Abuse Awareness Day was celebrated globally, and that I am now able to announce that the Elder Justice Task Force will have its first meeting June 27th. The charge of the task force is simple—protect the state’s most vulnerable citizens by making certain that those charged with serving them provide the care to which they are entitled and to hold accountable those who seek to financially exploit them.”
Techau noted that the office has rededicated its efforts and resources to investigate and hold accountable those who have been involved in activities incompatible with ensuring that the state’s more vulnerable citizens are treated with dignity and respect. A health care fraud auditor and paralegal have joined the office and are working closely with an Assistant United States Attorney and health care fraud paralegal. Bolstering the commitment to hold accountable those who take action inconsistent with recognized rules, regulations and criminal laws has paid dividends.
Last year the office held accountable a national home health care agency for not following the rules when making claims for payment. The rules of both Medicare and the state of Iowa’s Medicaid program required an independent physician to certify that home healthcare services were medically necessary and to order the specific type and amount of healthcare services to be provided by the home health agency. Additionally, Medicare and Iowa Medicaid rules required these independent physicians to perform an in-person “face-to-face” assessment of each patient before the home health agency could bill the government for any home healthcare services. The home health care agency ignored these rules and by doing so violated the False Claims Act. A settlement was reached resolving allegations that for the five year period beginning 2009 the company billed the government for services provided to Medicare and Medicaid patients in Iowa without documenting compliance with these requirements. The company agreed to pay $5.6 million to the United States and the State of Iowa to resolve the allegations.
More recently the office indicted a woman who prayed on an out of state elderly couple. This mail fraud scheme involved the defendant making false representations and promises to an elderly woman claiming she had won a lottery, sweepstakes, or otherwise was entitled to large sums of money. The victim was told the winnings or funds could be claimed only if she would first mail the defendant money for purported taxes, fees, or similar alleged prerequisites for payment. In truth, no such winnings existed and the telephone calls were designed only to permanently deprive the victim and her husband, a resident of a long-term care facility with dementia, of their money. Like many senior citizens in the United States, the couple received unsolicited telephone calls; they even changed their telephone number to avoid unsolicited calls, but such calls nonetheless resumed after they changed their phone number. The defendant has recently pled to two counts of mail fraud and one count of using a fictitious name in that fraud. A sentencing date has not yet been set.
World Elder Abuse Awareness Day was launched on June 15, 2006, by the International Network for the Prevention of Elder Abuse and the World Health Organization at the United Nations. It is celebrated annually on or around June 15th. Its purpose is to provide an opportunity for communities around the world to promote a better understanding of abuse and neglect of older persons by raising awareness of the cultural, social, economic and demographic processes affecting elder abuse and neglect.
The United States Attorney’s Office celebrates this day and is committed to being vigilant each and every day to ensure our senior citizens are treated with the dignity and respect they so deeply deserve.
To learn more about the Department of Justice’s Elder Justice Initiative, visit: https://www.justice.gov/elderjustice/
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Downsville man sentenced to 46 months in prison for possessing firearms, ammunition after being convicted of a felonyRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced today that a Downsville man was sentenced to 46 months in prison for possessing firearms, ammunition and an unregistered silencer after he was previously convicted of a felony.
William David Futch, 44, of Downsville, La., was sentenced by U.S. District Judge Robert G. James on one count of possession of firearms and ammunition by a convicted felon and one count of possession of an unregistered firearm silencer. He was also sentenced to three years of supervised release and ordered to forfeit the silencer, firearms and ammunition seized during the investigation. According to the February 9, 2016 guilty plea, Ouachita Parish Sheriff’s deputies responded to a complaint on April 11, 2014 that Futch was at his home firing shots. During this investigation, Futch was found in possession of a .45/.410 revolver, a 12 gauge shotgun, .a 22 caliber rifle with scope, a .22 caliber stainless rifle, a .22 caliber rifle with scope and bipod, a third .22 caliber rifle, a .223 caliber rifle, a 9 mm handgun, a .40 caliber handgun, ammunition and a firearm silencer. He was previously convicted of a felony on three separate occasions.
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm and to promote firearm safety.
The ATF and the Ouachita Parish Sheriff’s Department conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted the case.
District Man Sentenced to Five Years in Prison for Possession of Crack CocaineRead the Press Release
WASHINGTON – Javar Harris, 37, of Washington, D.C., has been sentenced to five years in prison on a federal charge of possession with intent to distribute cocaine, U.S. Attorney Channing D. Phillips announced today.
Harris pled guilty in March 2016 in the U.S. District Court for the District of Columbia. He was sentenced on June 17, 2016, by the Honorable Ketanji Brown Jackson. Upon completion of his prison term, Harris will be placed on four years of supervised release.
According to the government’s evidence, on the evening of July 2, 2015, law enforcement officers performed a traffic stop of Harris’s vehicle in the 1600 block of Oates Street NE. Harris was consuming an alcoholic beverage in a plastic cup and had a bottle of tequila in his possession. When exiting the vehicle, Harris had an odor consistent with an alcoholic beverage. Located in the center console glove compartment of the vehicle — between the passenger seat and the driver’s seat — was 116.8 grams of crack cocaine. At the time of his arrest, Harris had been twice convicted of distribution related cocaine convictions in the Superior Court of the District of Columbia.
In announcing the sentence, U.S. Attorney Phillips commended the work of the Narcotics and Special Investigations Unit of the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Candace Battle, and Assistant U.S. Attorney Christopher Macchiaroli, of the Violent Crimes and Narcotics Trafficking Section, who prosecuted the matter.
Dallas Man Sentenced to 20 Years in Federal Prison on Child Porn ConvictionRead the Press Release
DALLAS — Richard Grayson, 46, of Dallas, was sentenced on Friday by U.S. District Judge Sidney A. Fitzwater to 240 months in federal prison, following his guilty plea in February 2016 to one count of transporting and shipping child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, between approximately November 30 and December 8, 2014, Grayson used the Internet and file-sharing software to share and transmit image and video files depicting minors engaged in sexually explicit conduct.
Grayson was present when a federal search warrant was executed at his residence on February 26, 2015. A forensic analysis of electronic media seized from the residence revealed more than 42 videos and 7800 images of child pornography on Grayson’s computer and other media. Some of those images and videos he collected depicted sadistic and/or violent content, and some of the files depicted infants and toddlers
This year marks the 10th anniversary of the Project Safe Childhood (PSC) initiative. PSC is a department initiative launched in May 2006 to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Since FY 2011, the Department of Justice has filed 20,260 PSC cases against 19,111 defendants. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Sherman Police Department investigated the case. Assistant U.S. Attorney Camille Sparks was in charge of the prosecution.
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DEA Arrests Three Arizona Residents and Seizes Nine Pounds of Methamphetamine and 1.73 Pounds of Heroin During June 17, 2016 Interdiction Investigations at Greyhound Bus StationRead the Press Release
ALBUQUERQUE – DEA agents arrested three Arizona residents and seized a total of nine pounds of methamphetamine and 1.73 pounds of heroin during interdiction investigations at the Greyhound Bus Station in Albuquerque, N.M., on June 17, 2016. The three arrestees made their initial appearances in federal court this morning on separate criminal complaints. They remain in custody pending preliminary hearings and detention hearings, which are scheduled for tomorrow.
Antonio Manuel Hernandez, 26, of Phoenix, Ariz., was arrested after DEA agents allegedly found him in possession of 2.55 gross kilograms (5.6 pounds) of methamphetamine. According to the criminal complaint, Hernandez had bundles containing methamphetamine strapped around his abdomen that were concealed by his clothing. If convicted of the charge in the complaint, Hernandez faces a statutory mandatory minimum of ten years and a maximum of life in prison. Hernandez is being prosecuted by Assistant U.S. Attorney Samuel Hurtado.
Toni Baldonado, 23, of Tucson, Ariz., was arrested after DEA agents allegedly found her in possession of 1.55 gross kilograms (3.4 pounds) of methamphetamine. The criminal complaint against Baldonado alleges that the drugs were concealed in the lining of Baldonado’s purse. If convicted of the charge in the complaint, Baldonado faces a statutory mandatory minimum of ten years and a maximum of life in prison. Baldonado is being prosecuted by Assistant U.S. Attorney Paul H. Spiers.
The criminal complaint against Johnathan Jacob Rios, 28, of Phoenix, Ariz., alleges that he was arrested after DEA agents found that he had concealed 788 gross grams (1.73 pounds) of heroin inside his jeans. If convicted, Rios faces a statutory mandatory minimum of five years and a maximum of 40 years in prison. Rios is being prosecuted by Assistant U.S. Attorney Presiliano A. Torrez.
Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The three cases were investigated by the DEA office in Albuquerque. The case against Rios is being prosecuted as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC) and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Cross Lanes carjacker pleads guilty to multiple Federal charges following crime spreeRead the Press Release
CHARLESTON, W.Va. – A Cross Lanes man pleaded guilty today to carjacking and a drug crime, announced Acting United States Attorney Carol Casto. David Allen Young, 24, entered his guilty plea to two counts of carjacking and one count of conspiracy to distribute methamphetamine.
Young admitted that from summer 2014 through January 2016, he was part of a large-scale methamphetamine trafficking network. During that time period, he received at least 40 pounds of crystal methamphetamine from his sources and distributed it to individuals in and around Kanawha County.
Young further admitted that on January 24, 2016, he stole a Ford Expedition in Putnam County and fired a shot at an occupied vehicle in St. Albans. Later that same day, Young approached a Ford Edge SUV on foot near the intersection of Big Tyler Road and Waycross Drive in Cross Lanes. Young pointed a 9 mm handgun at a man occupying the SUV and ordered him to get out of the vehicle. The man complied and Young got into the Ford Edge and drove away. Young drove until he approached a Chevrolet S-10 truck in Cross Lanes occupied by another man and his juvenile son. Young pointed the same handgun at those individuals and ordered them out of the truck. Young then got into the truck and drove to the Dalewood Trailer Park in Cross Lanes. He shot through the glass door of a residence in the trailer park and stole a television, which he intended to trade for drugs. Young was arrested on January 26, 2016.
Young faces up to 50 years in federal prison when he is sentenced on October 5, 2016. The investigation into the drug conspiracy was handled by the FBI and the Charleston Police Department’s Special Enforcement Unit. The carjackings were investigated by the Kanawha County Sherriff’s Department. Assistant United States Attorney Haley Bunn is in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
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 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. This case was also brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Convicted Felon Sentenced in Federal Court for Illegal Gun PossessionRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Rondall Hall, 24, of Mobile, Alabama, was sentenced in federal court for his illegal possession of a firearm. Hall had been previously convicted of Robbery 3rd in Mobile County Circuit Court in May of 2015, and was arrested in possession of a firearm in September of 2015. Hall entered a guilty plea to the federal charge of felon in possession of a firearm in February of 2016.
United States District Court Judge William H. Steele imposed a sentence of 57 months imprisonment and ordered that Hall serve a three-year term of supervised release when he is discharged from prison. The judge found that Hall could not pay a fine, but he ordered the imposition of $100 as a special mandatory assessment.
The case was investigated by the Mobile Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
College Park Man Sentenced to over Eight Years in Federal Prison in Scheme to Obtain more than $7 Million in Fraudulent Tax RefundsRead the Press Release
Greenbelt, Maryland –U.S. District Judge Roger W. Titus sentenced Charles W. Parker, Jr., age 49, of College Park, Maryland, today to 97 months in prison, followed by three years of supervised release, for conspiring to file false federal income tax returns and six counts of filing false tax returns. A federal jury convicted Parker on November 10, 2015. Judge Titus also entered an order requiring Parker to forfeit and pay restitution of $2,007,568.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General Caroline D. Ciraolo, of the Justice Department’s Tax Division; and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation (IRS-CI), Washington, D.C. Field Office.
According to evidence presented during the five day trial, from March to June 2009, Parker recruited clients for co-conspirator Penny Jones. Jones, a resident of Idaho, was a tax return preparer who prepared tax returns falsely reporting the amount of taxes withheld and purportedly paid to the IRS. Parker collected financial information from clients and provided the information to Jones for the preparation of the false tax returns. Parker paid Jones to prepare false tax returns for Parker and others. Parker mailed the false tax returns to the IRS for tax years 2005 to 2008, claiming large tax refunds to which the taxpayers were not entitled. In a six month period, Parker caused the filing of 14 false tax returns that fraudulently claimed $7,753,940 in tax refunds.
Parker and his co-conspirators caused the IRS to issue two fraudulent tax refunds totaling $2,007,568. In 2013, Jones was sentenced to 12 years in prison for her role in a scheme to help individuals obtain fraudulent tax refunds from the IRS.
United States Attorney Rod J. Rosenstein praised the Tax Division and IRS-Criminal Investigation for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Leah Jo Bressack and Trial Attorney Erin Pulice of the Department of Justice Tax Division, who prosecuted the case.
Carbondale Man Sentenced on Crack Cocaine OffenseRead the Press Release
On June 15, 2016, Roderick L. McClain, a/k/a "Big Bama," 31, of Carbondale, IL, was sentenced for a crack cocaine offense, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
McClain, who had previously pled guilty to a one-count superseding indictment charging conspiracy to distribute 28 grams or more of crack cocaine, was sentenced to 84 months in federal prison, to be followed by 4 years’ supervised release, and fined $300.00. The offense occurred between October 2014 and July 2015, in Williamson and Jackson Counties. Evidence at the plea and sentencing hearings established that McClain was involved with co-defendant Keenon Farr and others in the distribution of crack cocaine in the Marion and Carbondale areas. During the investigation, McClain sold crack cocaine to a confidential source working for law enforcement. At sentencing, the judge found that McClain was responsible for the distribution of 210.04 grams of crack cocaine and 9.91 grams of cocaine. McClain was on parole from the Illinois Department of Corrections for a felony weapons offense during his involvement in the crack cocaine conspiracy. Three co-defendants have previously been sentenced for their role in the crack cocaine conspiracy. One co-defendant has pled not guilty and is awaiting trial.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group, Drug Enforcement Administration, Jackson County Sheriff’s Office, and Carbondale Police Department. The Williamson and Jackson County State’s Attorney’s Offices also assisted in the investigation.
California Man Sentenced for Heroin OffenseRead the Press Release
On June 16, 2016, Conrad Valdez, Jr., 46, of Selma, California, was sentenced for a heroin offense, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
Valdez, who had previously pled guilty to a one count indictment charging possession with intent to distribute more than 1 kilogram of heroin, was sentenced to 144 months in federal prison, to be followed by 5 years’ supervised release, and fined $400.00. Evidence at the plea and sentencing hearings established that, during a September 27, 2015, traffic stop in Effingham County, officers located approximately 17 kilograms of heroin in Valdez’s truck. Valdez was transporting the heroin from California to Joliet. The investigation established that Valdez had made previous trips for the purpose of transporting drugs and U.S. currency from the distribution of drugs. At sentencing, the judge determined that Valdez was responsible for transporting 17 kilograms of heroin, 33 kilograms of cocaine, and 20 kilograms of methamphetamine.
The investigation was conducted by the Drug Enforcement Administration, Central Illinois Enforcement Group, and Illinois State Police. The Effingham County State’s Attorney’s Office assisted in the investigation.
Buffalo Man Sentenced for Money Laundering ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Justin Stevens, 32, of Buffalo, NY, who was convicted of money laundering conspiracy, was sentenced to 12 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Frank T. Pimentel, who handled the case, stated that between January 2014 and September 30, 2014, the defendant obtained marijuana via commercial shipments from co-conspirator, James Parish, of Carlsbad, California. In turn, Stevens deposited $38,100 in marijuana proceeds into Parish’s bank account in Buffalo. The defendant also provided $10,000 in proceeds from marijuana distribution to co-conspirator Benjamin Golembiewski to be forwarded on to Parish.
Parish was convicted and sentenced to 120 months in prison.
Today’s sentencing is the result of an investigation on the part of the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division, and the Niagara Frontier Transportation Authority Police, under the direction of Chief George W. Gast.
Bernalillo County Resident Pleads Guilty to Violating Federal Narcotics and Firearms LawsRead the Press Release
ALBUQUERQUE – Hugo Escarcega-Quinones, 30, a resident of Bernalillo County, N.M., pled guilty today in federal court in Albuquerque, N.M., to violating the federal narcotics trafficking and firearms laws. Under the terms of his plea agreement, Escarcega-Quinones will be sentenced to ten years in federal prison followed by a term of supervised release to be determined by the court.
Escarcega-Quinones was arrested in Feb. 2016, on a criminal complaint charging him with heroin and methamphetamine trafficking charges and with carrying a firearm in relation to a drug trafficking crime. According to the complaint, Bernalillo County Sheriff’s Office (BCSO) deputies arrested Escarcega-Quinones on Feb. 23, 2016, on outstanding felony arrest warrants. During a search incident to arrest, the deputies found Escarcega-Quinones in possession of approximately 58 grams of heroin, 17 grams of methamphetamine, $1,400.00, a firearm and ammunition. The complaint alleged that Escarcega-Quinones committed the three crimes in Bernalillo County, N.M. Escarcega-Quinones subsequently was indicted on the same three crimes on March 23, 2016.
During today’s proceedings, Escarcega-Quinones pled guilty to Counts 2 and 3 of the indictment charging him with using and carrying a firearm in relation to a drug trafficking crime and possession of methamphetamine with intent to distribute. Escarcega-Quinones remains in federal custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the BCSO. Assistant U.S. Attorney Eva Fontanez is prosecuting the case.
Baltimore Man Sentenced to 21 Years for Heroin Trafficking Resulting in Central Pennsylvania Man’s DeathRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Eugene Stallings, Jr., age 28, of Baltimore was sentenced today to 252 months (21 years) imprisonment by Chief U.S. District Court Judge Christopher C. Conner in Harrisburg. This sentence follows Stallings’ February 5, 2016 conviction for heroin trafficking that resulted in the death of 21 year old Kyle Golter that occurred in February 2014.
According to United States Attorney Peter Smith, on February 5, 2016, a Harrisburg jury returned a guilty verdict to all five counts on the Superseding Indictment relating to Stallings after less than 2 hours of deliberation. Eugene Stallings, Jr., aka Bruno, sold heroin to Ashley Gries, Danny Forrester, Gabriel Stouffer, and Michael DeCarlo between October 2013 and April 2014. Gries, Forrester and Stouffer traveled from the Shippensburg, PA area to purchase heroin from Stallings in Baltimore, and then engaged in heroin trafficking in Franklin and Cumberland Counties. Heroin obtained from Stallings by the co-defendants led to the death of Golter in Shippensburg on February 7, 2014.
A federal conviction for drug trafficking that results in death carries an enhanced penalty requiring a mandatory minimum 20 years’ imprisonment. Gries, Forrester, Stouffer and DeCarlo have pleaded guilty for their roles in the drug trafficking organization.
This case was investigated by the Drug Enforcement Administration, the Pennsylvania State Police, the Shippensburg Police Department, and the Cumberland County Drug Task Force. The case is being prosecuted by Assistant United States Attorneys Meredith A. Taylor and Scott Ford.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Baltimore Man Pleads Guilty in Two Murder for Hire SchemesRead the Press Release
Baltimore, Maryland – Tavon Slowe, age 24, of Baltimore, Maryland, pleaded guilty today to charges arising from two murder for hire contracts.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, in March of 2012, a fight occurred near West Paterson Park Avenue and Chase Street. One of the participants was Gregory Parker. A few days later, an individual was given a “contract” to kill Gregory Parker. The individual arranged with Slowe to kill Gregory Parker for $5,000.
On March 16, 2012, the individual called Slowe on a cell phone and the two met in person, along with another person. The individual told Slowe where the victim could be found and that the victim was wearing a blue floppy hat. The two agreed that Slowe was to use his own gun, but that the individual would replace it after Parker had been killed.
Within about an hour after the meeting, Gregory Parker was shot multiple times with a .9mm semi-automatic pistol on East Chase Street in Baltimore City. Fourteen shell casings were found at the scene. Parker was wearing a blue floppy hat. Video surveillance depicts the shooter running from the murder scene and getting into a car driven by Slowe.
In March 2013, at the direction of the FBI, the individual called Slowe from a jail phone and told Slowe that he had been sentenced to a lengthy incarceration period after being set up by a person he had known since he was four years old. Slowe agreed to commit a murder for money. Slowe requested two guns to commit the murder. The individual told Slowe that another person would meet with Slowe to provide the money and guns.
On April 26, 2013, at the FBI’s direction, an undercover officer met with Slowe, and Slowe agreed to meet her again at a later date to receive the handguns and money. Slowe was upset that he was not getting the handguns that day and would only be paid $3,000 up front, arguing that it is usually $5,000.
On April 29th, the individual spoke with Slowe and worked out details concerning the murder for hire. Slowe stated that if the intended victim was not alone, Slowe would kill the other person as well. Slowe also expressed concerns over the undercover officer because he did not know her.
On April 30, an arrest operation was planned in which the undercover officer was going to meet with Slowe and provide him the guns that he requested for the murder-for-hire. Slowe did not show up for this meeting.
On August 8, 2013 Baltimore Police arrested Slowe on drug and gun charges, and Slowe was detained.
On February 4, 2014, at the direction of the FBI, the individual called Slowe’s half-brother to hire him for the same murder. The individual had previously used the brother, in addition to Slowe, for murder-for-hire contracts in Baltimore. The brother accepted this contract from the individual. Later that same day, the brother received a recorded jail call from Slowe in which the brother explained that he received a call from the individual and that he was going to meet the individual’s girl that day. Slowe cautioned his brother about the possibility of the “girl” being a police officer or “one of them.” Additionally, Slowe admitted to taking the contract to kill, but that he did not show up on April 30, 2013 because he believed the “girl” was a police officer.
Slowe and the government have agreed that if the Court accepts the plea agreement, Slowe will be sentenced to 10 years in prison for the use of interstate commerce to facilitate the commission of a murder for hire, which will be served concurrently to a sentence of between 23 and 27 years in prison for conspiracy to use interstate commerce to facilitate the commission of a murder for hire that resulted in death. Chief U.S. District Judge Catherine C. Blake has scheduled sentencing for August 10, 2016 at 9:30 a.m.
Co-defendant Davon Sanford, a/k/a “Chronic,” age 33, of Baltimore, was indicted on the same charges. His initial appearance and arraignment are scheduled for July 1, 2016.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore Police Department, Safe Streets Task Force and Baltimore State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James G. Warwick and Joshua T. Ferrentino, who are prosecuting the case.
Avon Property Developer Sentenced for Exposing Workers to Asbestos During Removal OperationsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Anastasios “Taso” Kolokouris, 32, of Avon, NY, who was convicted of violating the Clean Air Act asbestos work practice standards involving asbestos removal and disturbance, was sentenced to two years probation, 150 hours of community service, and fined $15,000 by Chief U.S. District Judge Frank P. Geraci. The defendant must also pay restitution to the victims in the case.
Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that the defendant was one of the owners of a warehouse located at 920 Exchange Street in Rochester. Acting on a complaint, an inspector from the New York State Department of Labor, Asbestos Control Bureau visited the Exchange Street warehouse on December 13, 2011. Upon arrival, the inspector observed people, including a 16 year old child, working in a large dumpster next to a loading dock. The inspector observed large quantities of white fibrous material, later confirmed to be asbestos, in and around the dumpster. He also noted that the people working in the dumpster did not have proper personal protective equipment, and that there was no asbestos warning signs on the dumpster.
The warehouse at 920 Exchange Street sits directly adjacent to residential homes on both the Exchange Street and Violetta Street sides, and there is a school bus stop directly outside its main gate.
When the Asbestos Control Bureau inspector made contact with the workers, they called Kolokouris to tell him about the inspection. However, the defendant told the workers not to speak with the inspector, and instead directed them to leave the area and lock the gate, which they did. While on site, however, the inspector took samples of the white fibrous material from in and around the dumpster. A lab later confirmed these samples to contain high levels of friable asbestos.
Criminal investigators from the United States Environmental Protection Agency (EPA) and the New York Department of Environmental Conservation (DEC) were notified and responded to secure the scene. A federal search warrant was obtained and federal and state agents entered the property wearing full containment suits. When agents entered the warehouse, they discovered over 90 bags of dry, friable asbestos inside the loading dock area. Agents also discovered evidence of unlawful abatement inside the warehouse involving asbestos contamination of more than 150,000 square feet. Agents took multiple samples from in and around the warehouse. These samples were analyzed by a lab, and they all tested positive for high levels of asbestos. Additional evidence located inside the warehouse connected Kolokouris to the illegal asbestos activities.
During the investigation, workers were interviewed and indicated that they knew Kolokouris from other odd jobs he had hired them to perform at other properties he is connected to. They reported that the defendant told them that he would pay cash to remove asbestos from the dumpster outside the warehouse because the container company would not remove the dumpster while it was full of asbestos. None of the workers that Kolokouris used were certified or trained to work with asbestos. They also confirmed that one of the workers was only 16 years old; and that Kolokouris had picked the child and his mother up from home and drove them to Rochester where he paid them to remove asbestos from the dumpster. Kolokouris never provided any of the workers with proper masks, protective suits, or other personal protective equipment. Instead Kolokouris only gave them simple dust masks.
In 1971, The United States Environmental Protection Agency designated asbestos as a hazardous air pollutant. There is well established scientific data documenting the harmful effects of asbestos. Exposure to asbestos can cause a debilitating lung disease called asbestosis; a rare cancer of the chest and abdominal lining called mesothelioma; and cancers of the lung, esophagus, stomach, colon, and other organs. Congress has found independently that "medical science has not established any minimum level of exposure to asbestos fibers which is considered safe to individuals exposed to fibers.”
Today’s sentencing is the culmination of an investigation on the part of Special Agents of the U.S. Environmental Protection Agency - Criminal Investigation Division, under the direction of Special Agent-In-Charge Vernesa Jones-Allen, Investigators of the New York State Department of Environmental Conservation Police, BECI, under the direction of Captain John Burke, the New York State Department of Labor, Asbestos Control Bureau, under the direction of Eileen Franco, and Officers from the City of Rochester Police Department, under the direction of Chief Michael Ciminelli.
Atlanta Man Sentenced for Fraud Scheme That Used Homeless to Cash Counterfeit ChecksRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Atlanta, Ga., man was sentenced in federal court today for leading a bank fraud conspiracy that used homeless men to cash counterfeit payroll checks at banks in the Kansas City area.
Norman Weaver, 51, of Atlanta, was sentenced by U.S. Chief District Judge Greg Kays to eight years in federal prison without parole. The court also ordered Weaver to pay $57,772 in restitution.
On Oct. 20, 2015, Weaver pleaded guilty to participating in a conspiracy to commit bank fraud from Dec. 21, 2012, to Feb. 1, 2013.
According to court documents, Weaver created and led a crime wave throughout several states. Weaver led a conspiracy to steal business mail then use banking information from that stolen mail to counterfeit checks on business accounts. Conspirators recruited homeless men to pass the counterfeit checks to banks. The scheme was very successful for approximately 10 years, which led to the formation of several “crews” originating from Atlanta.
Weaver led one of the longest-lasting and most prolific of the crews. More than $400,000 in counterfeit checks was passed in the Kansas City area over the course of a few months in late 2012 and early 2013. Nationwide, more than $8 million in counterfeit checks was passed by various crews traveling across the country.
Once the counterfeit checks were made, Weaver passed them to the handlers, who then passed them to the homeless persons to cash at local banks. Once checks were successfully passed, Weaver got the money and distributed it as the leader. Investigation revealed an intended loss of $106,341 attributable to Weaver, which included an actual loss of $57,772.
In addition to Weaver, 10 co-defendants from the Atlanta area pleaded guilty to their roles in this conspiracy. Markus Allen Bryant, 34, Gary Merritt, 56, Anthony Bernard Lowe, 54, Preston Tyrone West, 57, Derrick Nate Andrews, 25, Howard Youngblood, 42, and Michael Lee McWilliams, 54, worked for Weaver and recruited more than 75 homeless people to use their own identification to cash the checks. Calvin Almond, 49, assisted others in the scheme and acted as a personal driver for Weaver. Truly Bernard Matthews, 50, assisted in the printing of counterfeit payroll checks. Ariel Weaver Morris, 43, provided check stock to the conspirators to make the counterfeit checks.
Matthews was sentenced to 10 years and four months in federal prison. Bryant and Merritt were each sentenced to five years in federal prison. Lowe was sentenced to four years and four months in federal prison. Almond was sentenced to two years and 11 months in prison. Howard Youngblood, Michael McWilliams and Derrick Andrews were each sentence to time served. Morris is scheduled to be sentenced on Wednesday, June 22, 2016.
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the U.S. Postal Inspection Service, the Kansas City, Mo., Police Department, the Leawood, Kan., Police Department and the Atlanta, Ga., Police Department.