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9 August 2016
Two Individuals Inidicted on Tax and Mortgage Fraud OffensesRead the Press Release
DALLAS — Special Agents with Internal Revenue Service (IRS) Criminal Investigation and the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) arrested Chukwuma Jonas Osuagwu, 43, of Dallas, late Friday, August 5, 2016, on various tax and mortgage fraud offenses, announced U.S. Attorney John Parker of the Northern District of Texas.
Osuagwu appeared before U.S. Magistrate Judge Paul D. Stickney yesterday and was detained pending trial because of an immigration hold.
Osuagwu is charged along with codefendant, James W. Mitchell, 34, of Boston, in a 12-count indictment, unsealed this afternoon, with tax and mortgage fraud offenses. Each is charged with one count of conspiracy to commit bank fraud, and Osuagwu is charged with five, and Mitchell with two, substantive counts of bank fraud. Osuagwu is also charged with five counts of subscribing to a false and fraudulent individual income tax return and one count of corruptly endeavoring to obstruct and impede the due administration of IRS laws.
The indictment alleges that starting as early as September 2006 and continuing for more than a year, Osuagwu engaged in a series of fraudulent real estate transactions in which he either personally purchased or sold to one or more straw purchasers or co-conspirators, including Mitchell, three residential condominium units on Hood Street in Dallas. Osuagwu was able to personally purchase, or assist others in purchasing multiple residential condominium units only by submitting, or causing to be submitted on behalf of others, false, fraudulent and fictitious statements, documents and representations, such as false bank statements, employment letters, false IRS W-2 statements or false paystubs indicating the purchaser worked for Osuagwu’s company, Inforation, Inc., to cause one or more financial institutions, including Bank of America, J.P. Morgan Chase Bank and Wells Fargo Bank, to issue a mortgage loan they otherwise would not have issued.
The indictment further alleges that during the July through November 2007 timeframe, Osuagwu and Mitchell together conspired to commit bank fraud in connection with mortgage loans on two of the condominium units.
Further, the indictment alleges that from September 2006 through April 2012, Osuagwu earned income through the purchase, sale and rental of multiple residential condominium units that he did not accurately disclose to the IRS on his tax returns. He also allegedly filed amended tax returns falsely reporting two dependents and claiming status as the Head of Household to maximize a fraudulent income tax return. Osuagwu, in fact, had no dependents and was ineligible to file as head of household.
The indictment further alleges that from approximately June 20, 2011, and continuing to approximately January 24, 2013, Osuagwu corruptly endeavored to obstruct and impede the due administration of the internal revenue laws by providing false, fictitious, and fraudulent documents and information to IRS employees.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. However, if convicted, each count of bank fraud and the conspiracy to commit bank fraud count carry a maximum statutory penalty of 30 years in federal prison and a $1 million fine. Each of the tax offenses, upon conviction, carry a maximum statutory penalty of three years in federal prison and a $250,000 fine. Restitution may also be ordered. The indictment also includes a forfeiture allegation that would require the defendants, upon conviction, to forfeit any property that constitutes or was derived from proceeds traceable to the offense.
IRS Criminal Investigation and the FHFA-OIG led the investigation; Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) assisted.
Assistant U.S. Attorney J. Nicholas Bunch is in charge of the prosecution.
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Tucson Alien Smugglers Sentenced to PrisonRead the Press Release
TUCSON, Ariz. – Yesterday, William Ken Huebbe, 31, of Tucson, Ariz., was sentenced by U.S. District Judge Jennifer G. Zipps to 11 years in prison. Huebbe had previously pleaded guilty to transportation of illegal aliens resulting in death. His co-defendant, Robert Evan Butcher Jr., 26, also of Tucson, Ariz. was previously sentenced to 48 months in prison.
On Jan. 8, 2015, Huebbe was driving a car on a two-lane road outside Three Points, Arizona. He and a co-defendant, Robert Evan Butcher Jr., were smuggling two unauthorized aliens towards Tucson. Huebbe panicked when he recognized an unmarked Border Patrol unit and fled at an extremely high rate of speed. Huebbe recklessly swerved into oncoming rush hour traffic and collided head-on with another motorist. The passenger in the other car, an 80-year-old woman, was killed instantly. The victim’s daughter, who was the driver, sustained massive injuries but survived after first responders extracted her. The co-defendant and the aliens also sustained serious injuries. Huebbe fled into the desert on a broken foot and was captured by Border Patrol agents shortly afterwards.
The investigation in this case was conducted by Homeland Security Investigations, Border Patrol and the Pima County Sheriff’s Office. The prosecution was handled by Josh A.C. Ackerman, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-15-230
RELEASE NUMBER: 2016-062_Huebbe
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Tuba City Man Sentenced to Nearly 20 Years in Federal Prison for Abusive Sexual Contact of a MinorRead the Press Release
PHOENIX - Yesterday, Rodney Begay, of Tuba City, Ariz., a member of the Navajo Indian Nation, was sentenced by U.S. District Judge John J. Tuchi to 235 months in prison, followed by a lifetime term of supervised release. Begay had previously pleaded guilty to abusive sexual contact of a minor.
The case involved the sexual abuse of 3 different girls, from 2005 to 2012, two also members of the Navajo Indian Nation-one non-native, occurring on the Navajo Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Department of Law Enforcement. The prosecution was handled by Sharon K. Sexton, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-08175-JJT
RELEASE NUMBER: 2016-060_Begay
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Texas Man Sentenced to 300 Months in Prison for Sexual Abuse of Orphans While Working in MalawiRead the Press Release
A former general manager at an orphanage in Malawi was sentenced today to 25 years in prison for one count of engaging in illicit sexual conduct in a foreign place, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Richard L. Durbin Jr. of the Western District of Texas.
Gerald Campbell, 66, of Odessa, Texas, pleaded guilty on May 18, 2016. Senior U.S. District Judge Robert A. Junell of the Western District of Texas presided over the sentencing and also ordered Campbell to serve a lifetime term of supervised release and to pay $40,000 in restitution.
According to admissions made in connection with his plea agreement, Campbell engaged in sexual acts with eight minors, all of whom were orphans living at the Victory Christian Children’s Home in Malawi between 1997 and 2009. Campbell admitted that he used his position as orphanage manager, with access to better accommodations and amenities, such as hot water, to lure the minor victims, one of whom was suffering from the effects of HIV, into his house and sexually abuse them. In addition, Campbell admitted that he knew that what he was doing was wrong and that he thought nobody would believe the minors if they reported the abuse. Furthermore, Campbell admitted that he sent money to some of the minors in an attempt to keep them from reporting the abuse to authorities.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations investigated the case with assistance from the Texas Department of Public Safety’s Criminal Investigations Division. Trial Attorneys Leslie Fisher and Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Brandi Young of the Western District of Texas prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Texas Man Guilty of Defrauding Area LenderRead 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 Bradley K. Boyd, 44, of Rhome, TX, pleaded guilty to wire fraud, before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 20 years in prison, and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Boyd owned and operated a construction business in the Dallas, Texas, area. The defendant entered into a factoring arrangement with a Rochester-area lender. The arrangement called for the lender to provide Boyd’s business with immediate cash in exchange for invoices owed to Boyd’s business. From March 2011 to July 2011, the defendant prepared approximately $1,200,000 in fraudulent invoices, and submitted them to the lender. Based upon the fraudulent invoices, the lender provided Boyd’s business with approximately $830,000 in cash.
The plea is the result of an investigation by Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen and Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.Sentencing is scheduled for November 15, 2016, at 8:30 a.m. before Judge Wolford.
Tennessee Man Sentenced to 48 Months in Prison for Romney Tax Return Fraud and Extortion SchemeRead the Press Release
A Franklin, Tennessee, man was sentenced late yesterday to 48 months in prison for engaging in an extortion and wire fraud scheme involving former presidential candidate Mitt Romney’s tax returns.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Jack Smith of the Middle District of Tennessee and Special Agent in Charge Todd Hudson of the U.S. Secret Service’s Nashville Field Office made the announcement.
Michael Mancil Brown, 37, was found guilty at trial on May 12, 2016 of six counts of wire fraud and six counts of using facilities of interstate commerce to commit extortion. U.S. District Judge Billy Roy Wilson of the Eastern District of Arkansas, sitting by designation in the Middle District of Tennessee, imposed the sentence and also ordered Brown to pay $201,836 in restitution to PricewaterhouseCoopers LLP.
According to testimony at trial, evidence recovered from a computer seized from Brown’s residence in 2012 implicated Brown in a scheme to defraud Romney, the accounting firm of PricewaterhouseCoopers and others by falsely claiming that he had gained access to the PricewaterhouseCoopers internal computer network and had stolen tax documents for Romney and his wife, Ann D. Romney, for tax years prior to 2010.
In August 2012, a letter delivered to the offices of PricewaterhouseCoopers in Franklin demanded that $1 million worth of the digital currency Bitcoin be deposited to a specific Bitcoin account to prevent the release of the purportedly stolen Romney tax returns, according to trial evidence. The letter invited interested parties who wanted the allegedly stolen Romney tax documents to be released to contribute $1 million to another Bitcoin account. As part of the scheme, similar letters were delivered to the offices of the Democratic and Republican parties in Franklin and similar statements were posted to Pastebin.com.
The U.S. Secret Service’s Nashville Field Office investigated the case with assistance from the FBI’s Nashville Division. Senior Counsel Anthony V. Teelucksingh of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Byron Jones of the Middle District of Tennessee prosecuted the case.
Springfield Latin Kings Leader Sentenced for Heroin DistributionRead the Press Release
BOSTON – The former “Inca” of the Springfield Latin Kings gang was sentenced today in U.S. District Court in Springfield for distributing heroin.
Jose Cartagena, 38, of Springfield, Mass., was sentenced by U.S. District Court Judge Mark G. Mastroianni to 20 months in prison and three years of supervised release. In May 2016, Cartagena pleaded guilty to distributing heroin.
In October 2014, an investigation was initiated in an effort to disrupt and dismantle the Latin Kings’ criminal activity in Springfield and Holyoke. According to court documents, members and associates of the Latin Kings were engaged in the distribution of narcotics, particularly heroin. Furthermore, disputes with rival gangs over criminal activity and drug turf were on the rise and resulted in serious crimes of violence, including armed assaults with firearms and murder. The investigation led to the arrest of 12 alleged Latin Kings members in connection with drug and firearms offenses in November 2015.
As alleged in court documents, Cartagena held the position of “Inca,” or chief, of the Springfield chapter of the Latin Kings gang at the time of his arrest on Nov. 9, 2015. Cartagena admitted to distributing 300 bags of heroin in Springfield on July 31, 2015.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Katharine A. Wagner of Ortiz’s Springfield Branch Office.
Southern California Man Pleads Guilty to Owning Fake Law Firms That Promised to Help Struggling HomeownersRead the Press Release
More Than 1,500 Victims Defrauded Out of $9 Million
The Department of Justice announced that an Orange County, California, man pleaded guilty in U.S. District Court in Santa Ana, California, for his role as the owner and operator of a multi-million dollar fraudulent mortgage modification scheme that posed as a successful law firm to defraud struggling homeowners.
Bryan D’Antonio, 50, of Brea, California, pleaded guilty before U.S. District Court Judge David O. Carter for the Central District of California to one count of conspiracy to commit mail and wire fraud for his role as owner and operator of Rodis Law Group (RLG) and America’s Law Group (ALG). His sentencing is on Jan. 30, 2017.
“At the height of the mortgage crisis, this defendant, a convicted felon who was prohibited from any business engaged in telemarketing, created two fake law firms that promised struggling homeowners assistance saving their homes and modifying their mortgages,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Despite the many promises, these were telemarketing sales operations that took homeowners’ money and provided no meaningful assistance.”
“D’Antonio preyed on vulnerable victims – struggling homeowners,” said U.S. Attorney Eileen M. Decker of the Central District of California. “Pretending to offer legal assistance to their victims, D’Antonio and his cohorts actually offered nothing but false hopes and empty promises. Now, he will be held accountable in federal court for the damage he has caused so many victims.”
D’Antonio was previously convicted of mail and wire fraud and sentenced to four years in federal prison for his participation in a medical billing scheme. He was also subject to a permanent injunction prohibiting him from having any involvement with any business that engaged in telemarketing or misrepresented the services it would provide. As part of his plea hearing today, D’Antonio admitted that he started RLG while he was still on supervised release from his prior conviction. In violation of D’Antonio’s permanent injunction, RLG and ALG sold their services through an extensive telemarketing operation and employees routinely misrepresented the services RLG and ALG would provide.
D’Antonio admitted that, between October 2008 and June 2009, he participated in a scheme with Ronald Rodis, Charles Wayne Farris and others to induce homeowners to pay between $3,500 and $5,500 for the services of RLG and its successor entity, ALG. RLG and ALG advertised on radio stations nationwide, urging struggling homeowners to call a toll-free number and stated that the companies consisted of “a team of experienced attorneys” who were “highly skilled in negotiating lower interest rates and even lowering your principal balance.” In fact, RLG and ALG were telemarketing operations that never had teams of experienced attorneys. During much of the scheme, Ronald Rodis was the only attorney at RLG.
RLG and ALG telemarketers working for D’Antonio made numerous misrepresentations regarding the companies’ ability to negotiate loan modifications from the homeowners’ mortgage lenders. For example, the telemarketers stated that RLG and ALG had been in business for 11 years when in fact the company had only opened in October 2008. They falsely stated that RLG and ALG routinely obtained positive results for homeowners, including lower monthly payments, reductions in principal balance and lower interest rates. In fact, positive results were rarely achieved for any RLG or ALG clients. Telemarketers also falsely reiterated that homeowners would have a team of attorneys and real estate professionals assigned to their case. The telemarketers did not disclose to homeowners that RLG and ALG were owned and operated by Bryan D’Antonio, a convicted felon who was prohibited from engaging in telemarketing
In a plea agreement filed in federal court, D’Antonio admitted that the RLG and ALG schemes fraudulently obtained approximately $9 million from more than 1,500 victims.
D’Antonio’s co-defendants, Charles Wayne Farris and Ronald Rodis, both previously pleaded guilty to one count of conspiracy to commit mail and wire fraud.
This case was investigated by the FBI and is being prosecuted by Trial Attorney John W. Burke of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Joseph T. McNally of the Central District of California.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Central District of California, visit its website at https://www.justice.gov/usao-cdca.
Smoke Signal Man Sentenced to 24 Years for Aggravated Sexual Abuse of a MinorRead the Press Release
PHOENIX – On Aug. 8, 2016, Michael K. Judy, 62, of Smoke Signal, Ariz., was sentenced by U.S. District Judge Steven P. Logan to 24 years in federal prison, followed by five years of supervised release. Judy had previously pleaded guilty to one count of aggravated sexual abuse of a minor.
According to the plea agreement, on or between April 18, 2001, and April 17, 2003, Judy, an enrolled member of the Navajo Nation, knowingly engaged in a sexual act with the female victim, who was eight or nine years old at the time. In 2014, the victim, now an adult, along with five others, also members of the Navajo Nation, reported multiple instances of sexual abuse on the Navajo Reservation by Judy during their childhoods. In total, the reported abuse spanned nearly three decades.
The investigation in this case was conducted by the Navajo Nation Department of Public Safety and Federal Bureau of Investigation. The prosecution was handled by Christina Covault, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-15-8060
RELEASE NUMBER: 2016-061_Judy
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Seventeen federally indicted in Evansville drug caseRead the Press Release
Alleged to have trafficked large quantities of methamphetamine into Southern Indiana
PRESS RELEASE
Indianapolis B United States Attorney Josh J. Minkler, announced three indictments of 17 methamphetamine and firearms traffickers, which was unsealed today in U.S. District Court in Evansville. Law enforcement officers from the region participated in the execution of arrest and search warrants related to the investigation on persons and residences in the Evansville, Indiana, and elsewhere.
The indictments were the result of an investigation by the Evansville Office of the Drug Enforcement Administration, Evansville Vanderburgh County Drug Task Force, Evansville Police Department, Vanderburgh County Sheriff’s Department, Warrick County Sheriff’s Department, Indiana State Police, United States Marshals Service, Bureau of Alcohol Tobacco, Firearms and Explosives, Federal Bureau of Investigation and other federal, state and local law enforcement agencies.
“Drug dealing and the violence that is associated with it, will not be tolerated,” said Minkler. “Helping to maintain the safety of our communities and reducing violent crime is, and will remain a top priority of my office.”
From January 2016, through July 2016, leaders of various drug trafficking organizations obtained large quantities of methamphetamine, then redistribute to lower level dealers to be sold in the Evansville area. In most cases, the methamphetamine would be “fronted” to dealers on consignment, receiving payment after the sale to other dealers. Defendants used cell phones to communicate with one another, often times using code and text messages to discuss matters relative to their drug trafficking operation.
During the course of the investigation, over twenty-three (23) pounds of methamphetamine, approximately ten (10) pounds of marijuana, several thousand pills of ecstasy, eleven (11) firearms and tens of thousands of dollars in United States Currency were seized by law enforcement.
The indictments charge seventeen individuals as follows:
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Tavares Clay, 34, Las Vegas, Nevada
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Michael Lockridge, 30, Evansville, Indiana
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Cederick Baker, 40, Evansville, Indiana
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Joshua Wilson, 24, Evansville, Indiana
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Kenneth Ware Jr., 30, Evansville, Indiana
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Lamario Denton, 29, Evansville, Indiana
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Brandi Addison, 31, Evansville, Indiana
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Jayshon Clay, 21, San Bernardino, California
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Rick Davis, 28, Ingelwood, California
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Artisha Howard, 35, Los Angeles, California
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Terrance Walker, 40, Evansville, Indiana
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Adrian Davison, 42, Evansville, Indiana
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Rashad Robinson, 40, Evansville, Indiana
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Joshua Jacobs, 29, Evansville, Indiana
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Tanner McCoy, 36, Evansville, Indiana
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James Mitchell, 36, Evansville, Indiana
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Eugene Maxwell, 26, Evansville, Indiana
The Indictments charge fifteen (15) of the defendants with conspiracy to distribute and possession with the intent to distribute 500 grams or more of methamphetamine. Two (2) of the defendants, Mitchell and Maxwell, are charged with being felons in possession of firearms.
“Drug traffickers make our neighborhoods less safe,” said DEA Assistant Special in Charge Greg Westfall. “DEA is an enforcement agency and we along with our law enforcement partners, target violent criminals - the ones who bring drugs to your local schools and neighborhoods.”
"This is an example of how the partnership between our office and the U.S. Attorney's Office enhances the protection of citizens in Vanderburgh County and in the Southern District of Indiana," said Vanderburgh County Prosecuting Attorney Nicholas Hermann. "I would like to thank the officers and deputies whose dedication and hard work led to these indictments."
In addition to the seventeen (17) defendants facing federal charges, fifty-two (52) individuals have been charged, by the Vanderburgh County Prosecutor’s Office, with drug charges and other violations relating to this investigation.
According to Assistant United States Attorney Lauren Wheatley who is prosecuting this case for the government, most of the defendants face sentences of 10 years to life, if convicted.
An indictment is only a charge and not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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Sebring Mother and Son Plead Guilty to Conspiring to Import EcstasyRead the Press Release
Yesterday, a mother and her son pled guilty to conspiring to import Ecstasy from the Netherlands.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.
Annalisa Anfuso Patterson, 56, and her son, Jake Elwyn Patterson, 19, both from Sebring, pled guilty to conspiracy to import a controlled substance 3,4-methylenedioxy-methamphetamine (MDMA), also known as “Ecstasy,” in violation of Title 21, United States Code, Section 963; and attempted possession with intent to distribute a controlled substance- 3,4-methylenedioxy-methamphetamine (MDMA), also known as “Ecstasy” in violation of Title 21, United States Code, Section 846 and Title 18, United States Code, Section 2. Each offense carries a maximum statutory penalty of 20 years in prison. The defendants are scheduled to be sentenced on November 14, 2016 at 2:00 p.m., before U.S. District Judge Jose E. Martinez in Fort Pierce.
According to the court record, including the stipulated factual proffer, U.S. Customs and Border Protection (CBP) Officers in Miami identified, searched and detained two U.S. Postal Service (USPS) parcels, destined for Highlands County. The parcels were found to contain approximately 525 tablets of 3,4-methylenedioxy-methamphetamine (MDMA), also known as “Ecstasy,” a schedule I controlled substance. On May 17, 2016, HSI agents, with the assistance of United States Postal Inspectors, conducted a controlled delivery of one of the parcels to Sebring, Florida. Annalisa Patterson accepted and opened the parcel. Law enforcement then executed a search warrant at the residence and observed, next to the opened parcel, a laptop computer with images of MDMA on the screen.
The record indicates that the defendants used Bitcoins to place orders for MDMA through internet websites, the “dark web,” from the Netherlands. Jake Patterson used a test kit to ensure that the substances they had purchased were in fact Ecstasy. The defendants supplied other individuals with Ecstasy, from their Sebring residence.
Mr. Ferrer commended the investigative efforts of ICE-HSI, CBP, and USPIS. This case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
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.
Sea Cliff Man Indicted for Scheme to Defraud More Than $1 Million from Elderly Woman’s EstateRead the Press Release
A four-count indictment was unsealed today in the United States District Court for the Eastern District of New York charging the defendant John Derounian with mail fraud, wire fraud, and aggravated identity theft in connection with a scheme to defraud the estate of an elderly victim of more than $1.2 million. The indictment was returned under seal by a federal grand jury sitting in Central Islip, New York, on July 26, 2016.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Philip Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division.
“Driven by greed, the defendant allegedly went to great lengths to perpetrate his fraudulent scheme to steal an elderly woman’s entire life-savings. Such conduct cannot, and will not, be allowed to go unpunished,” stated United States Attorney Capers. “This Office and the United States Postal Inspection Service are committed to protecting members of our community from fraudsters, especially those who target the elderly.” Mr. Capers extended his appreciation to Morgan Stanley for its invaluable cooperation during the investigation.
“To devise a scheme to steal from the deceased is despicably morbid. Mr. Derounian’s alleged crimes are unconscionable. Postal Inspectors have no tolerance for anyone who preys on innocent victims, either dead or alive, and will spare no resources to ensure those who commit these crimes are brought to justice,” stated Postal Inspector-in-Charge Bartlett.
As detailed in the initial complaint, prior court proceedings, and the indictment unsealed today, Derounian is charged for his role in a scheme to steal the entire estate of a woman, who is identified in the indictment as Jane Doe. On November 12, 2015, Derounian claimed to have found the body of Jane Doe, Derounian’s tenant, at her Sea Cliff home. Subsequent to Jane Doe’s death, Derounian is alleged to have placed a series of telephone calls and sent emails to Morgan Stanley in an effort to drain Jane Doe’s financial accounts of over $200,000.
Further, in an effort to perpetuate the fraud, Derounian created a forged will naming himself as the executor and sole beneficiary, aside from a comparatively small charitable donation, of Jane Doe’s estate. Derounian allegedly then used the authority of the forged will to cremate the body of Jane Doe and sell her real property for over $1 million, which he transferred into bank accounts he controlled. As a result of the investigation to date, funds totaling over $1.2 million have been seized from Derounian, and the indictment seeks forfeiture of those funds.
The defendant, who was previously arrested on a complaint and detained, is scheduled to be arraigned this morning before United States District Judge Joan M. Azrack at the federal courthouse in Central Islip.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Long Island Criminal and Civil Sections. Assistant United States Attorneys Mark E. Misorek and Robert W. Schumacher are in charge of the prosecution.
The Defendant:
JOHN DEROUNIAN
Age: 51
Sea Cliff, New YorkE.D.N.Y. Docket No. 16-412 (JMA)
Rockford Man Pleads Guilty to Embezzling More Than $250,000 from UnionRead the Press Release
ROCKFORD — A Rockford resident pleaded guilty before U.S. District Judge Philip G. Reinhard today to embezzling from a labor organization.
DAVID FLEURY, 49, pleaded guilty to an information charging him with embezzling more than $250,000 from Local 6 of the International Union of Bricklayers and Allied Craftworkers.
According to the written plea agreement, between January 2011 and May 2015, Fleury was President of Local 6 and managed the daily operation of the union local. Although paid a salary in the form of weekly electronic deposits into his bank account, Fleury admitted in the plea agreement that he caused an additional 153 salary checks and electronic deposits totaling $284,286 to be paid to him. Fleury also admitted to making $6,132 in unauthorized purchases on Local 6’s credit card, embezzling $4,585 in cash dues paid by Local 6 members, and failing to turn over additional reimbursement amounts related to his use of Local 6’s credit card for travel expenses. In the plea agreement, Fleury stated that he used the embezzled funds to pay for personal expenses, gambling at casinos, and vacations. Fleury also admitted to approving and signing false reports with the United States Department of Labor.
Fleury faces a maximum sentence of five years’ imprisonment, a fine of up to $250,000, or twice the gross gain or gross loss resulting from the offense, whichever is greater, supervised release of up to three years, and probation of one to five years. The judge must also order Fleury to pay full restitution to Local 6. Sentencing for Fleury is set for Dec. 15, 2016, at 9:00 a.m.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Purcell, District Director of the Chicago office of the United States Department of Labor – Office of Labor-Management Standards.
The government is represented by Assistant U.S. Attorney John G. McKenzie.
Plea Agreement
Rochester Man Pleads Guilty to Bank FraudRead 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 Henry Joseph Williams, 50, of Rochester, NY, pleaded guilty to bank fraud before Chief U.S. District Judge Frank P. Geraci. The charge carries a maximum penalty of 30 years in prison, and a $1,000,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Williams opened accounts at two area banks. Between May 2015 and August 2015, the defendant used his ATM cards to incur approximately $8,100 in charges which he then fraudulently disputed by falsely claiming that his ATM cards had been stolen. At the time of the offense, Williams was on federal supervised release for a 2012 wire fraud conviction.
The plea is the result of an investigation by United States Postal Service Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski, and the United States Probation Department, under the direction of Anthony San Giacomo.
Sentencing is scheduled for November 8, 2016, at 3:30 p.m. before Judge Geraci.
Resident of Manchester Sentenced to 71 Months for Bank RobberyRead the Press Release
CONCORD, N.H. – Ronald Alan Cook, a 45-year-old resident of Manchester, has been sentenced to 71 months in prison for robbing the Bank of New Hampshire at 705 Hooksett Road in Manchester on November 10, 2015, announced United States Attorney Emily Gray Rice.
To commit the offense, Cook entered the bank and handed a note to a bank teller that stated, “I have a gun!! Give me all the 100, 50, 20 and 10 now and fast.” Cook also told the teller, “This is serious give me all your money 50, 100, 20s.” The teller removed money from her teller drawer and gave it to Cook, who then ran from the bank. A description of the bank robber was broadcast to Manchester police officers. An officer saw Cook riding a bicycle near the bank and detained him because he matched the description of the bank robber. While being questioned by this police officer, Cook admitted that he robbed the bank.
Cook was sentenced by United States District Court Judge Steven McAuliffe.
The case was investigated by the Manchester Police Department and the Federal Bureau of Investigation. It was prosecuted by AUSA Robert M. Kinsella.
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Priest Pleads Guilty to Tax EvasionRead the Press Release
Stole Money from Parishioners and Lied to Return Preparer
A priest for the Roman Catholic Diocese of San Jose pleaded guilty today to four counts of tax evasion, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, U.S. Attorney Brian J. Stretch for the Northern District of California and Special Agent in Charge Michael T. Batdorf for the Internal Revenue Service’s Criminal Investigation (IRS-CI).
Father Hien Minh Nguyen, 56, admitted that over a period of four years, he stole money his parishioners donated to the Diocese and willfully evaded paying income taxes on the money he misappropriated each year from 2008 through 2011. He admitted that he deposited this money into his personal bank account, did not disclose this income to his return preparer, did not keep records of the donations he stole, and filed false income tax returns which did not report this money.
Father Nguyen also pleaded not guilty to bank fraud charges. Those charges are still pending.
“Father Nguyen stole money from his parishioners and filed false returns with the IRS to evade his income tax obligations,” said Principal Deputy Assistant Attorney General Ciraolo. “The department remains committed to holding all criminal tax offenders accountable for their illegal conduct, regardless of their profession. No one is above the law.”
Sentencing on the tax evasion convictions has not been scheduled. Father Nguyen faces a statutory maximum sentence of five years in prison and monetary penalties for each tax evasion conviction. Father Nguyen’s next scheduled appearance is a status conference on the bank fraud charges currently scheduled for Aug. 23. An indictment is merely an allegation and a defendant is presumed innocent until and unless proven guilty in court. Father Nguyen pleaded guilty to the tax evasion charges. He has not pleaded guilty to bank fraud charges and remains presumed innocent of those charges.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Brian J. Stretch commended special agents of the IRS-CI, who investigated the case and Trial Attorney Gregory Bernstein of the Tax Division and Assistant U.S. Attorney Thomas Moore of the Northern District of California, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
PG&E Found Guilty of Obstruction of an Agency Proceeding and Multiple Violations of the Natural Gas Pipeline Safety ActRead the Press Release
SAN FRANCISCO—A federal jury found Pacific Gas and Electric Company (“PG&E”) guilty today of multiple willful violations of the Natural Gas Pipeline Safety Act of 1968 (“PSA”) and obstructing an agency proceeding, announced U.S. Attorney Brian J. Stretch, California Attorney General Kamala D. Harris, San Mateo County District Attorney Stephen M. Wagstaffe, U.S. Department of Transportation Office of Inspector General Special Agent in Charge William Swallow, FBI Special Agent in Charge John F. Bennett, and San Bruno Police Chief Ed Barberini. The PSA violations were uncovered in the course of an investigation initiated after the fatal San Bruno natural gas pipeline explosion in 2010. The obstruction charge was added later after investigators discovered PG&E attempted to mislead the National Transportation Safety Board (NTSB) during its investigation.
The verdict follows a 5 ½ week trial before the Honorable Thelton E. Henderson, U.S. District Judge. The PSA-related charges stem from PG&E’s record keeping and pipeline “integrity management” practices. The evidence at trial demonstrated that PG&E willfully failed to address recordkeeping deficiencies concerning its larger natural gas pipelines knowing that their records were inaccurate or incomplete. The evidence further demonstrated that PG&E willfully failed to identify threats to its larger natural gas pipelines and to take appropriate actions to investigate the seriousness of threats to pipelines when they were identified. In addition, PG&E willfully failed to adequately prioritize as high risk, and properly assess, threatened pipelines after they were over-pressurized, as required by the PSA and its regulations. On April 1, 2014, a federal grand jury for the Northern District of California returned an indictment charging PG&E with multiple pipeline violations. In finding PG&E guilty, the jury concluded the company knowingly and willfully violated the PSA and its regulations between 2007 and 2010. The jury found PG&E guilty of 5 out of the 11 separate violations of the PSA charged.
The charge of obstructing an agency proceeding was included in a superseding indictment filed July 29, 2014. The charge centers around PG&E’s use of a letter in an attempt to mislead the NTSB during an investigation. The NTSB began its investigation immediately after the deadly San Bruno explosion. During the course of the NTSB’s investigation, PG&E provided a version of a policy outlining the way in which PG&E addressed manufacturing threats on its pipelines. In accordance with this policy, PG&E did not prioritize as high-risk, and properly assess, many of its oldest natural gas pipelines, which ran through urban and residential areas. Although PG&E was operating under the policy from 2009 through April 5, 2011, the company submitted a letter to the NTSB attempting to withdraw the document. According to PG&E’s letter, the policy was produced in error and was an unapproved draft. In finding PG&E guilty of obstructing an agency proceeding, the jury concluded PG&E intentionally and corruptly tried to influence, obstruct or impede the NTSB investigation, in violation of 18 United States Code Section 1505.
U.S. Attorney Brian J. Stretch provided the following statement:
On occasion an event occurs that is sufficiently devastating that a public account must be made, either through an admission of wrongdoing and acceptance of responsibility, or through the judgment of the people acting through a jury. Such an event was the explosion in San Bruno on September 9, 2010, and the physical and emotional injuries suffered by so many that terrible day.
In the aftermath of the explosion, our office, along with the District Attorney of San Mateo and the California Attorney General’s Office, charted a course to examine whether PG&E had complied with the federal regulations designed to keep people safe, or willfully disregarded those regulations. To honor the memory of those who perished in the explosion required nothing less. The jury has determined that PG&E management chose willfully not to follow certain of those regulations.
This verdict in no way diminishes or calls into question the hard, honest work done by PG&E’s employees in the field, as they labor tirelessly day and night to provide us with light and heat. It is a reflection only of the choices and priorities set at the top.
PG&E provides gas and electricity to the citizens of Northern California and must adhere to certain safety requirements and financial limitations. We hope that the verdict today insures that PG&E’s management will adhere faithfully to this compact in the future.
I want to thank the many prosecutors and team members whose singular focus and dedication was nothing short of heroic. The Assistant United States Attorneys who tried the case to the jury -- Hallie Hoffman, Jeff Schenk, and Hartley West – represented the Department of Justice with highest degree of professionalism.
Our office was teamed up with the California Attorney General’s Office, the San Mateo County District Attorney’s Office, and the San Bruno Police Department. This was a shared responsibility and we are deeply appreciative of their commitment to joining us in the pursuit of justice.
In addition, the Federal Bureau of Investigation and the U.S. Department of Transportation Office of Inspector General were relentless in their pursuit of facts.
Finally, the City of San Bruno is a strong community with deep civic pride. It has steadfastly supported this prosecution and advocated for reform. Today’s verdict is an important step toward achieving the lasting change that San Bruno so very much deserves.
“We are very pleased with the verdict and commend the jury for their hard work and thoughtful deliberation,” said California Attorney General Kamala D. Harris. “The California Department of Justice is proud to have worked with the U.S. Attorney’s Office and various federal and state partners to investigate and ultimately prosecute this important case.”
“We are grateful to the US Attorney’s Office for outstanding work with the support of San Bruno Police Department and our office,” said San Mateo County District Attorney Stephen M. Wagstaffe. “Justice was done today and PG&E was properly convicted of multiple felonies insuring justice for our community.”
“These guilty verdicts against PG&E are a sobering reminder to those entrusted with ensuring public safety that we have a solemn obligation to place that safety foremost in our actions,” said William Swallow, regional Special Agent-in-Charge, USDOT OIG. “We appreciate the committed efforts of everybody who helped achieve this result, including our law enforcement peers and prosecutorial colleagues. DOT OIG remains committed to working with them to prosecute to the fullest extent of the law those who endanger public safety. On behalf of the Inspector General, I offer our deepest condolences to the family and friends of those who perished in the San Bruno explosion.”
“The San Bruno Police Department is extremely proud of the complex investigative work that led to a conviction in this case,” said San Bruno Police Chief Ed Barberini. “We are very grateful to the United States Attorney’s Office and all of the partners that contributed to a successful conclusion to this case.”
The maximum statutory penalty for each count for a corporation is $500,000. Judge Henderson has scheduled post-trial motions to be heard on October 11, 2016.
The prosecution is the result of an investigation conducted by the U.S. Attorney’s Office for the Northern District of California, the California Attorney General’s Office, the San Mateo County District Attorney’s Office, the United States Department of Transportation Office of Inspector General, the FBI, the Pipeline and Hazardous Material Safety Administration, and the City of San Bruno Police Department.
Orange County Man Pleads Guilty to Owning Fake Law Firms that Falsely Promised to Help Struggling HomeownersRead the Press Release
SANTA ANA, California – A Brea man pleaded guilty this morning to federal charges related to his role as the owner and operator of a multi-million dollar fraudulent mortgage modification scheme that posed as a successful law firm to defraud struggling homeowners.
Bryan D’Antonio, 50, pleaded guilty to one count of conspiracy to commit mail and wire fraud for his role as owner and operator of Rodis Law Group (RLG) and America’s Law Group (ALG).
D’Antonio pleaded guilty before United States District Judge David O. Carter, who is scheduled to sentence the defendant on January 30, 2017.
“D’Antonio preyed on vulnerable victims – struggling homeowners,” said United States Attorney Eileen M. Decker. “Pretending to offer legal assistance to their victims, D’Antonio and his cohorts actually offered nothing but false hopes and empty promises. Now, he will be held accountable in federal court for the damage he has caused so many victims.”
D’Antonio admitted that, between October 2008 and June 2009, he participated in a scheme that induced homeowners to pay as much as $5,500 for the services of RLG and its successor entity, ALG. RLG and ALG advertised on radio stations across the country and urging struggling homeowners to call a toll-free number. The companies purportedly consisted of “a team of experienced attorneys” who were “highly skilled in negotiating lower interest rates and even lowering your principal balance.”
In fact, RLG and ALG were telemarketing operations that never had teams of experienced attorneys. During much of the scheme, one man – co-defendant Ronald Rodis – was the only attorney at RLG.
In a plea agreement filed in federal court, D’Antonio admitted that the RLG and ALG schemes fraudulently obtained approximately $9 million from more than 1,500 victims.
“At the height of the mortgage crisis, this defendant, a convicted felon who was prohibited from any business engaged in telemarketing, created two fake law firms that promised struggling homeowners assistance saving their homes and modifying their mortgages,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Despite the many promises, these were telemarketing sales operations that took homeowners’ money and provided no meaningful assistance.”
D’Antonio was previously convicted of mail and wire fraud and sentenced to four years in federal prison for his participation in a medical billing scheme. He was also subject to a permanent injunction prohibiting him from having any involvement with any business that engaged in telemarketing or misrepresented the services it would provide. In conjunction with his guilty plea today, D’Antonio admitted that he started RLG while he was still on supervised release from his prior conviction. In violation of D’Antonio’s permanent injunction, RLG and ALG sold their services through an extensive telemarketing operation and employees routinely misrepresented the services RLG and ALG would provide. The telemarketers did not disclose to homeowners that RLG and ALG were owned and operated by D’Antonio, who was prohibited from engaging in telemarketing
RLG and ALG telemarketers working for D’Antonio made numerous misrepresentations regarding the companies’ ability to negotiate loan modifications from the homeowners’ mortgage lenders. For example, the telemarketers stated that RLG and ALG had been in business for 11 years when in fact the company had only opened in October 2008. They falsely stated that RLG and ALG routinely obtained positive results for homeowners, including lower monthly payments, reductions in principal balance and lower interest rates. In fact, positive results were rarely achieved for any RLG or ALG clients. Telemarketers also falsely reiterated that homeowners would have a team of attorneys and real estate professionals assigned to their case.
D’Antonio’s co-defendants, Charles Wayne Farris and Ronald Rodis, both previously pleaded guilty to one count of conspiracy to commit mail and wire fraud.
This case was investigated by the FBI. The case is being prosecuted by Assistant U.S. Attorney Joseph T. McNally and Trial Attorney John W. Burke of the Civil Division’s Consumer Protection Branch.
Norwich Resident Admits Role in Insurance Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that FRANDY DUGUE, also known as “Jimmy,” 39, of Norwich, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of wire fraud stemming from his involvement in an insurance fraud scheme.
According to court documents and statements made in court, between April 2011 and February 2014, DUGUE and others conspired to stage approximately 50 car crashes in eastern Connecticut for the purpose of defrauding automobile insurance companies and enriching themselves. A high percentage of these planned crashes were single-vehicle accidents on remote roads where there were no witnesses other than the occupants of the crashed vehicle. After each staged accident, the defendants filed fraudulent property damage and bodily injury claims with various automobile insurance companies. They then collected payouts on the fraudulent claims from the victim insurance companies. These payouts typically ranged from about $10,000 to about $30,000 per accident.
In pleading guilty, DUGUE admitted his personal involvement in a staged automobile crash in Killingly on December 14, 2013.
DUGUE were arrested on May 20 and is released on bond. He is a citizen of Haiti and a lawful permanent resident of the U.S.
Judge Meyer scheduled sentencing for November 1, 2016, at which time DUGUE faces a maximum term of imprisonment of 20 years.
This matter is being investigated by the Federal Bureau of Investigation, the Norwich Police Department and the National Insurance Crime Bureau, with the assistance of the Mohegan Tribal Police Department. The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Northampton Man Sentenced for Cocaine ConspiracyRead the Press Release
GREENVILLE – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today, Senior United States District Judge Malcolm J. Howard, sentenced ANTHONY TYRONE MOODY, 45, of Seaboard, North Carolina, to 84 months in prison and 5 years of supervised release for conspiracy to distribute and possess with the intent to distribute 5 kilograms or more of cocaine. MOODY previously pled guilty to this charge on August 10, 2015.
On September 10, 2014, the Greenville Regional Drug Task Force and North Carolina State Bureau of Investigation arrested MOODY when MOODY was delivering 8 ounces of cocaine to a cooperating witness. The investigation revealed that MOODY was responsible for distributing 45 kilograms of cocaine since the early 2000’s.
The investigation of this case was conducted by the Greenville Regional Drug Task Force and the North Carolina State Bureau of Investigation. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
Minnesota Man Sentenced to Federal Prison for MethamphetaminesRead the Press Release
FARGO - US Attorney Christopher C. Myers announced that on August 9, 2016, Kee Thao, of Minneapolis, Minn., was sentenced before US District Judge Ralph R. Erickson to serve 20 years in federal prison for Possession with Intent to Distribute a Controlled Substance. Following his incarceration, Judge Erickson ordered that Thao serve 30 years of supervised release due to his violent criminal history involving women and pay a $100 special assessment to the Crime Victims’ Fund.
This case came to the attention of law enforcement officers after a woman who accompanied Thao from the Minneapolis area to Fargo sought the assistance of law enforcement. During the investigation of this domestic dispute, the Fargo Police Department searched Thao’s vehicle, which contained approximately 10 ounces of methamphetamine.
This case was investigated by the Department of Homeland Security - Homeland Security Investigations and the Fargo Police Department.
Assistant US Attorney Jennifer Puhl prosecuted the case.
Mexican Man Sentenced After Pleading Guilty to Illegally Re-Entering the United States After Previous DeportationsRead the Press Release
CONCORD, NEW HAMPSHIRE – United States Attorney Emily Gray Rice announced today that Ricardo Silva-Hernandez, of Mexico, was sentenced to a time-served sentence after pleading guilty, on April 20, 2016, to illegally re-entering the United States after having been previously deported.
Silva-Hernandez was arrested by the Hooksett Police Department on February 24, 2016, after the police responded to a burglar alarm at Silva-Hernandez’s place of employment. When an officer asked Silva-Hernandez for identification, he produced a Mexican identification card.
Further questioning by the police led to Silva-Hernandez’s admission that he was illegally in the United States and had re-entered the United States after being deported.
The Hooksett Police sought the assistance of officers from Immigration and Customs Enforcement – Enforcement and Removal (ICE-ERO) in positively identifying Silva-Hernandez. Fingerprints taken from Silva-Hernandez were compared to fingerprints on file with the Department of Homeland Security and the Federal Bureau of Investigation. That comparison definitively proved that Silva-Hernandez had been previously deported in 1997 and again in 2009.
Silva-Hernandez will now be deported.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement and the Hooksett Police Department. Assistant U.S. Attorney Alfred Rubega prosecuted this case.
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Member of Cherry Hill Group Sentenced to 24 Years in Prison for Racketeering ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Elijah Sykes-Bey, a/k/a LaLa, age 22, of Baltimore, today to 24 years in prison, followed by five years of supervised release, for conspiracy to participate in a racketeering enterprise in connection with his gang activities as a member of the UDH organization, which operates in the Cherry Hill section of Baltimore.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn Mosby.
According to his plea agreement, from at least 2007 to 2013, the UDH organization operated in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.” UDH members and associates have been in a long-running dispute with members of an organization known as “Coppin Court” that is involved in criminal activity in the part of Cherry Hill known as “Down the Hill,” or “Down da Hill,” (DDH), and since at least January 2011, have been in a dispute with members of “Little Spelman,” another organization that is involved in criminal activity in the DDH section of Cherry Hill. UDH members and associates used violence and intimidation to protect themselves, the organization, and their control of the drug trade in part of Cherry Hill.
In addition to selling drugs, UDH members have also committed murders, attempted murders, assaults, carjackings, and robberies. Beginning in 2004, UDH members committed six murders of rival gang members and/or drug dealers, and shot nine other individuals. In addition, the members of UDH committed street and bank robberies in order to fund their narcotics activities.
Sykes-Bey admitted that as a member of UDH he was part of a racketeering enterprise and protected the gang’s power, territory and profits through the use of violence, threats of violence, intimidation, robbery, and narcotics trafficking. Sykes-Bey also admitted that he participated in the murders of two rival gang members.
Sykes-Bey also knew that UDH members sold narcotics throughout the neighborhood. During his involvement in the conspiracy, it was foreseeable to Sykes-Bey that UDH was responsible for the distribution of at least one kilogram of heroin, five kilograms of cocaine, 280 grams of crack cocaine, and marijuana.
A total of 35 Cherry Hill gang members have pleaded guilty and 27 of those defendants, including Elijah Sykes-Bey, have been sentenced.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith, Seema Mittal, and Patricia C. McLane, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Member of United States Army Sentenced to 10 Month Sentence for Theft and Sale of Military-Issued Night Vision TechnologyRead the Press Release
Earlier today in federal court in Brooklyn, Johnathan Serrano, a member of the United States Army, was sentenced to a 10 month sentence (6 months’ imprisonment and 4 months’ home confinement), ordered to forfeit $10,200 in criminal proceeds to the government, and ordered to pay $67,000 in restitution to the United States Army following his conviction after a guilty plea on April 26, 2016 to one felony count of conspiracy to steal and sell government property, in violation of Title 18, United States Code, Section 371. Today’s sentencing proceeding was held before Judge I. Leo Glasser.
The conviction stems from Serrano’s leadership in a scheme to steal and sell night-vision devices and components stolen from the United States Army. Night vision technology allows images to be produced and seen in near-total darkness conditions and is a vital tool for the military. Night vision devices acquired by the United States military, such as the items stolen and sold by the defendant, contain components made to military specifications and are required by the military to be rendered useless for their intended purpose prior to leaving government control. The United States military’s policies prohibit the private sale of fully-functional military-issued night vision equipment.
The defendant is an active-duty member of the United State Army, who was stationed at Fort Bliss base in El Paso Texas and assigned to perform repairs of radio technology. Between April 2014 and May 2015, Serrano used his access to the repair facilities at the military base to steal numerous components for night vision devices. To conceal his role in the conspiracy, Serrano had his cousin, co-conspirator Alan Serrano, and another individual, sell the devices over the internet via the eBay website and email communications with prospective buyers.[1] The investigation revealed that the conspirators sold or attempted to sell over $10,000 worth of night vision equipment, including to a purchaser in Brooklyn, New York. Additionally, five night vision devices and 50 boxes with serial numbers matching night vision components were recovered from the conspirators’ residences. In total, Serrano and his co-conspirators stole over $120,000 worth of equipment from the United States Army.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Craig Rupert, Special Agent-in-Charge, Department of Defense, Defense Criminal Investigative Services (DCIS), New York; Angel M. Melendez, Special Agent-in-Charge, Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York; and Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office.
The government’s case is being prosecuted by Assistant United States Attorney Craig R. Heeren.
The Defendants:
JOHNATHAN SERRANO
El Paso, Texas
Age: 31ALAN SERRANO
El Paso, Texas
Age: 25
[1] On March 4, 2016, Alan Serrano pled guilty to unlawful sale of government property. His sentencing is scheduled for tomorrow before Judge Glasser.
McLaughlin Man Charged with Aggravated Sexual Abuse and Sexual Abuse of a Person Incapable of ConsentRead the Press Release
United States Attorney Randolph J. Seiler announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse and Sexual Abuse of a Person Incapable of Consent.
Brian Thunder Shield, age 18, was indicted on July 19, 2016. He appeared before U.S. Magistrate Judge William D. Gerdes on August 4, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $750,000 fine, up to life of supervised release, and $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between October 20, 2015, and December 10, 2015, Thunder Shield knowingly engaged in and attempted to engage in sexual acts with two female relatives, one of them a minor. Thunder Shield knew one of his victims was incapable of appraising the nature of the conduct, and was physically incapable of declining participation in and communicating her unwillingness to the sexual act.
The charges are merely accusations and Thunder Shield is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Standing Rock Sioux Tribe. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Thunder Shield was released on bond pending trial. A trial date has not been set.
Massachusetts Man Sentenced on Fentanyl ChargeRead the Press Release
CONCORD, N.H. – Genfry Martinez, 20, of Lawrence, Massachusetts, was sentenced in United States District Court for the District of New Hampshire to 37 months in federal prison after pleading guilty to one count of possession with intent to distribute the Schedule II controlled substance fentanyl, announced United States Attorney Emily Gray Rice.
On February 11, 2016, after a traffic stop by the New Hampshire State Police, Martinez was found in possession of what lab results confirmed to be 68.67 grams of the Schedule II controlled drug fentanyl. The defendant possessed the drugs with the intention of distributing them.
“The narcotic drug fentanyl is an incredibly dangerous substance responsible for a large number of overdose deaths in New Hampshire,” stated United States Attorney Emily Gray Rice. “I will continue to prioritize the prosecution of individuals who attempt to profit from the sale of this deadly drug.”
United States District Judge Paul J. Barbadoro sentenced Martinez. In addition to the term of incarceration, Judge Barbadoro ordered Martinez to serve, upon his release from prison, a term of supervised release of three years.
The case was investigated by the New Hampshire State Police and the Drug Enforcement Administration and was prosecuted by Assistant United States Attorney Georgiana L. Konesky.
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Man Who Conspired to Traffic Ice Methamphetamine into SW Virginia Pleads GuiltyRead the Press Release
ABINGDON, VIRGINIA – A man who conspired with others to traffic methamphetamine into Southwest Virginia pled guilty yesterday in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr. announced.
Randy Doss, 51, a.k.a. “Monk” pled guilty yesterday in District Court to one count of conspiring to possess with the intent to distribute ice methamphetamine.
“We continue to see a distributing trend upward in the amount of methamphetamine being brought into Virginia. This is a trend we in the law enforcement community are working every day to put an end to,” United States Attorney Fishwick said today. “This more pure form of ‘ice’ methamphetamine is particularly addictive and dangerous and has the ability to destroy the lives of those who become addicted. We will continue to take this threat seriously, both in our enforcement efforts and support for prevention and treatment programs.”
At yesterday’s hearing, Special Assistant United States Attorney Kevin Jayne stated that Doss, and others, sold “ice” methamphetamine to members of the Warren-drug trafficking organization (“DTO”), who were also prosecuted in the Western District of Virginia. “Ice” is a particularly pure form of methamphetamine, also often referred to as “crystal” methamphetamine. Members of the Warren-DTO traveled from the Western District of Virginia to the Chattanooga, Tennessee-area to purchase methamphetamine from Doss and others. In turn, these members of the Warren-DTO would further distribute the methamphetamine to others in the Western District of Virginia.
The investigation of the case was conducted by the Washington County Sheriff’s Office, Russell County Sheriff’s Office, Tazewell County Sheriff’s Office, Smyth County Sheriff’s Office, Abingdon Police Department, Virginia State Police, U.S. Marshals Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Drug Enforcement Administration. Special Assistant United States Attorney Kevin Jayne is prosecuting the case for the United States.
Lake Worth Resident Convicted of Distributing Fentanyl Resulting in DeathRead the Press Release
A Palm Beach County resident was convicted yesterday by a jury in United States District Court of unlawfully distributing a controlled substance, Fentanyl, which resulted in the death of a 23 year old man.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, United States Drug Enforcement Administration (DEA), Miami Field Division, Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), and Bryan Kummerlen, Chief, West Palm Beach Police Department (WPBPD), made the announcement.
"This case illustrates that there can be grave consequences that result from the distribution of illegal narcotics,” stated U.S. Attorney Wifredo Ferrer. “We implore the South Florida community to be aware of the dangers of illicit drugs, particularly given the fact that the number of drug overdoses has increased dramatically in our jurisdiction over the past year. The U.S. Attorney’s Office and our law enforcement partners will continue to aggressively prosecute individuals who engage in drug trafficking, especially in cases where the illicit distribution results in the death or serious bodily injury of the user."
“Fentanyl is a deadly drug that kills instantly,” said DEA Special Agent in Charge Adolphus Wright. “DEA, along with our law enforcement partners, will continue to aggressively investigate to take such deadly drugs off the streets of our communities. Massena’s conviction is an example of that effort and commitment to the fullest degree. Let it be clear, drug dealers selling illegal drugs mixed with Fentanyl will not be tolerated in any way.”
Christopher Sharod Massena, 24, of Palm Beach County, was convicted at trial of a single count of distribution of fentanyl, resulting in death. For this charge of conviction, Massena faces a statutory mandatory minimum sentence of 20 years’ imprisonment up to a maximum term of life imprisonment, to be followed by a mandatory minimum term of 3 years of supervised release. Previously, on August 1, 2016, Massena pled guilty to the other charges in the superseding indictment, specifically four counts of distributing a controlled substance containing heroin and a single count of possessing with the intent to distribute a controlled substance containing heroin. Massena faces a statutory sentence of up to 20 years in prison, to be followed by a mandatory minimum term of three years of supervised release, for each count to which he pled guilty.
According to the court record, including evidence introduced at trial, on February 18, 2016, Massena distributed Fentanyl, a Schedule II controlled substance, to a 23 year old man. The man died of acute Fentanyl toxicity shortly after ingesting the controlled substance. Thereafter, on four separate dates Massena distributed other controlled substance (heroin and heroin mixed with Fetanyl) to an undercover police officer. On the date of his arrest, Massena possessed with the intent to distribute heroin.
Mr. Ferrer commended the investigative efforts of the DEA, PBSO, WPBPD, and the Palm Beach Narcotics Task Force for their assistance in this matter. This case is being prosecuted by Assistant U.S. Attorney Jennifer C. Nucci.
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.
Justice Department, EPA and the State of New Mexico Announce Settlement for $143 Million Cleanup at the Chevron Questa MineRead the Press Release
The Department of Justice, the U.S. Environmental Protection Agency (EPA) and the state of New Mexico today announced a settlement with Chevron Mining Inc. (CMI) requiring $143 million in cleanup work at the Chevron Questa Mine Superfund site near Questa, New Mexico. As part of the settlement, the company will perform a pilot project to cover about 275 acres of the tailing facility where mine waste or “tailings” are stored, operate a water treatment plant and install groundwater extraction systems. CMI will also pay over $5.2 million to reimburse EPA’s past costs for overseeing cleanup work at the site.
“This settlement will advance substantial cleanup work at the Questa site, and require actions to prevent future contamination of the Red River,” said Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division. “This settlement is the product of excellent cooperation between the state and federal governments and CMI to continue the vital cleanup work at the Chevron Questa Mine Site.”
“This settlement builds on the consent decree entered into in September of last year and represents another affirmative step towards remedying the serious environmental damages suffered by this beautiful area of New Mexico as a result of decades of extensive mining activities,” said U.S. Attorney Damon P. Martinez of the District of New Mexico. “In addition to requiring crucial cleanup work, the settlement includes important measures to prevent further contamination of the environment and provides for extensive monitoring to ensure compliance.”
“Protecting precious water resources is essential to the health of New Mexico’s communities and the state’s economy,” said EPA Regional Administrator Ron Curry. “While mining pollution is a complex issue, EPA and our partners are pleased to see the next phase of the cleanup at the Questa site take shape.”
“This $143 million cleanup is a powerful example of regulatory protections that work,” said Acting Secretary Butch Tongate for the New Mexico Environment Department. “In addition to the $112 million already collected for environmental work during this administration, the State of New Mexico is pleased with the enforcement of regulations that hold Chevron Mining accountable for the environmental impacts caused by the now-closed Questa Mine which will foster a renewed Questa/Red River destination area.”
The proposed partial consent decree, if approved by the court, will provide for the next phase of the cleanup at the former mine site. It is the largest settlement of its kind for cleanup work in EPA Region 6. CMI has already completed a number of response projects at the site under previous agreements with EPA, including the cleanup of Eagle Rock Lake and the removal of numerous tailing spills. The new work will improve efforts to permanently prevent contamination from the site from affecting the Red River and other water resources and further reduce risks for nearby communities and the surrounding environment. This includes covering and revegetating about 275 acres of the tailings facility, improving and installing new systems that prevent contaminated water from reaching the Red River and operating and maintaining a water treatment plant. The settling parties will also monitor the remedy’s long-term effectiveness at reducing risks to human health and the environment.
The proposed settlement announced today follows on a September 2015 consent decree entered into by the United States, on behalf of the U.S. Fish and Wildlife Service of the Department of the Interior and the Forest Service of the Department of Agriculture, and the State, on behalf of the New Mexico State Office of Natural Resource Trustee, resolving claims for natural resource damages at the Site. Under that consent decree, CMI paid more than $4.2 million for restoring, replacing or acquiring natural resources damaged by mine activities. The current consent decree addresses separate claims from the natural resource damages consent decree.
The Chevron Questa Mine, previously known as the Molycorp Mine, operated intermittently from 1919 until 2014, when CMI permanently closed the mine. Mining operations and waste disposal contaminated soil, sediment, surface water and groundwater. While the mine was operating, approximately 328 million tons of acid-generating waste rock were excavated and deposited in nine large waste rock piles. After molybdenum was extracted from ore, the tailing was transported by pipeline to a tailing facility where it was deposited in tailing impoundments.
The cleanup is being accomplished under the federal Comprehensive Environmental Response, Compensation and Liability Act, commonly known as Superfund. The Superfund law protects human health and the environment while safeguarding taxpayer dollars by holding parties that contributed to contamination responsible for cleaning it up. Since 1980, EPA’s Superfund program has managed the cleanup of the nation’s most hazardous waste sites and has responded to environmental emergencies, oil spills and natural disasters.
The public has the opportunity to submit written comments on the consent decree, which is subject to the 30-day comment period and final approval by the court. A copy of the consent decree is available at www.justice.gov/enrd/consent-decrees.
Justice Department, EPA and the State of New Mexico Announce Settlement for $143 Million Cleanup at the Chevron Questa MineRead the Press Release
ALBUQUERQUE – The Department of Justice, the U.S. Environmental Protection Agency (EPA) and the state of New Mexico today announced a settlement with Chevron Mining Inc. (CMI) requiring $143 million in cleanup work at the Chevron Questa Mine Superfund site near Questa, New Mexico. As part of the settlement, the company will perform a pilot project to cover about 275 acres of the tailing facility where mine waste or “tailings” are stored, operate a water treatment plant and install groundwater extraction systems. CMI will also pay over $5.2 million to reimburse EPA’s past costs for overseeing cleanup work at the site.
“This settlement will advance substantial cleanup work at the Questa site, and require actions to prevent future contamination of the Red River,” said Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division. “This settlement is the product of excellent cooperation between the state and federal governments and CMI to continue the vital cleanup work at the Chevron Questa Mine Site.”
“This settlement builds on the consent decree entered into in September of last year and represents another affirmative step towards remedying the serious environmental damages suffered by this beautiful area of New Mexico as a result of decades of extensive mining activities,” said U.S. Attorney Damon P. Martinez of the District of New Mexico. “In addition to requiring crucial cleanup work, the settlement includes important measures to prevent further contamination of the environment and provides for extensive monitoring to ensure compliance.”
“Protecting precious water resources is essential to the health of New Mexico’s communities and the state’s economy,” said EPA Regional Administrator Ron Curry. “While mining pollution is a complex issue, EPA and our partners are pleased to see the next phase of the cleanup at the Questa site take shape.”
“This $143 million cleanup is a powerful example of regulatory protections that work,” said Acting Secretary Butch Tongate for the New Mexico Environment Department. “In addition to the $112 million already collected for environmental work during this administration, the State of New Mexico is pleased with the enforcement of regulations that hold Chevron Mining accountable for the environmental impacts caused by the now-closed Questa Mine which will foster a renewed Questa/Red River destination area.”
The proposed partial consent decree, if approved by the court, will provide for the next phase of the cleanup at the former mine site. It is the largest settlement of its kind for cleanup work in EPA Region 6. CMI has already completed a number of response projects at the site under previous agreements with EPA, including the cleanup of Eagle Rock Lake and the removal of numerous tailing spills. The new work will improve efforts to permanently prevent contamination from the site from affecting the Red River and other water resources and further reduce risks for nearby communities and the surrounding environment. This includes covering and revegetating about 275 acres of the tailings facility, improving and installing new systems that prevent contaminated water from reaching the Red River and operating and maintaining a water treatment plant. The settling parties will also monitor the remedy’s long-term effectiveness at reducing risks to human health and the environment.
The proposed settlement announced today follows on a September 2015 consent decree entered into by the United States, on behalf of the U.S. Fish and Wildlife Service of the Department of the Interior and the Forest Service of the Department of Agriculture, and the State, on behalf of the New Mexico State Office of Natural Resource Trustee, resolving claims for natural resource damages at the Site. Under that consent decree, CMI paid more than $4.2 million for restoring, replacing or acquiring natural resources damaged by mine activities. The current consent decree addresses separate claims from the natural resource damages consent decree.
The Chevron Questa Mine, previously known as the Molycorp Mine, operated intermittently from 1919 until 2014, when CMI permanently closed the mine. Mining operations and waste disposal contaminated soil, sediment, surface water and groundwater. While the mine was operating, approximately 328 million tons of acid-generating waste rock were excavated and deposited in nine large waste rock piles. After molybdenum was extracted from ore, the tailing was transported by pipeline to a tailing facility where it was deposited in tailing impoundments.
The cleanup is being accomplished under the federal Comprehensive Environmental Response, Compensation and Liability Act, commonly known as Superfund. The Superfund law protects human health and the environment while safeguarding taxpayer dollars by holding parties that contributed to contamination responsible for cleaning it up. Since 1980, EPA’s Superfund program has managed the cleanup of the nation’s most hazardous waste sites and has responded to environmental emergencies, oil spills and natural disasters.
The public has the opportunity to submit written comments on the consent decree, which is subject to the 30-day comment period and final approval by the court. A copy of the consent decree is available at https://www.justice.gov/enrd/consent-decree/us-v-chevron-mining-inc.
Justice Department Settles Immigration-Related Discrimination Claim Against Hartz Mountain Industries Inc.Read the Press Release
The Justice Department reached an agreement today with Hartz Mountain Industries Inc. (Hartz) to resolve the department’s investigation into whether the company discriminated against work-authorized non-U.S. citizen job seekers, in violation of the Immigration and Nationality Act (INA). Hartz is a real estate development and management company based in Secaucus, New Jersey.
The department’s investigation found that Hartz discriminated based on citizenship status by publishing a job posting that required applicants for a particular job opening to be U.S. citizens, in violation of the INA. Job postings with citizenship preferences or requirements violate the INA by restricting employment opportunities available to work-authorized non-citizens. While there are exceptions in the INA that allow for specific positions to be subject to citizenship requirements, the position available at Hartz did not meet the criteria.
Under the settlement agreement, Hartz will pay $1,400 in civil penalties to the United States, train its human resources staff on the anti-discrimination provision of the INA, review its policies and be subject to monitoring by the department for a three-year period.
“The Civil Rights Division is committed to identifying and tearing down discriminatory barriers that prevent work-authorized individuals from taking advantage of employment opportunities,” said Principal Deputy Assistant Attorney General Vanity Gupta, head of the Civil Rights Division. “I commend Hartz for its cooperation during the investigation and for working to resolve this matter expeditiously.”
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, immigration status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices in employment eligibility verification; retaliation; and intimidation.
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: different documentary requirements based on their citizenship status, immigration status or national origin; or discrimination based on their citizenship status, immigration status or national origin in hiring, firing or recruitment or referral, should contact the worker hotline above for assistance.
Hartz Mountain Industries Settlement Agreement
Independence Man Sentenced to 15 Years for Illegally Possessing Stolen RiflesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was sentenced in federal court today for illegally possessing several stolen firearms.
Randall T. James, 45, of Independence, was sentenced by U.S. District Judge Dean Whipple to 15 years in federal prison without parole. James was sentenced as an armed career criminal due to his prior felony convictions.
On March 14, 2016, James pleaded guilty to being a felon in possession of firearms. James admitted he was in possession of a Marlin .22-caliber rifle, a Browning 7mm rifle, a Marlin .30-30-caliber rifle and a J.C. Higgins .270-caliber rifle on April 5, 2012.
This investigation began on April 5, 2012, when an Independence resident reported that someone had broken into his house and stolen several firearms. The back door had been kicked in and there were several firearms wrapped in a blanket on the floor, as if someone had intended to steal these also but then fled the scene.
On June 25, 2012, law enforcement investigators received a tip that some of the stolen firearms were at the home of James’s sister. Officers executed a search warrant at the residence and seized four of the rifles that had been stolen. James’s sister and nephew confirmed that the rifles had been purchased from James.
James was identified by several neighbors of the burglary victim, and one of the latent prints collected from the crime scene was confirmed to match James’s palm print.
Law enforcement investigators learned that on May 29, 2012, James had pawned another rifle that had been stolen during the burglary (uncharged, due to it being an antique).
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. James has two prior felony convictions for the sale of a controlled substance and prior felony convictions for assault, armed criminal action, carrying a concealed weapon, possession of a controlled substance and resisting arrest.
This case was prosecuted by Special Assistant U.S. Attorney Joseph W. Vanover. It was investigated by the Independence, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Idaho Falls Man Sentenced to More than Ten Years in PrisonRead the Press Release
POCATELLO – Benito Mora Jr., 38, of Idaho Falls, Idaho, was sentenced today to 121 months in prison for conspiracy to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Mora to serve four years of supervised release following his release from prison. Mora pleaded guilty to the charge on May 24, 2016.
Blackfoot Police arrested Mora on January 10, 2016, during a traffic stop. Mora had 291.91 grams of pure methamphetamine, 6.20 grams of cocaine, and two handguns in his possession at the time of his arrest. Mora was also under investigation in Idaho Falls after he sold 11.18 grams of methamphetamine to a confidential informant in 2015. Mora admitted to conspiring with others to acquire methamphetamine from suppliers in Arizona, Mexico, and elsewhere for the purpose of selling it in eastern Idaho.
The case was investigated by the Idaho Falls and Blackfoot Police Departments, the Bonneville and Bingham County Sheriffs’ Offices, the Idaho State Police, the Bingham and Bonneville County Prosecutors’ offices, the Bureau of Alcohol, Tobacco and Firearms, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Eastern Idaho Partnership and the State of Idaho to bolster ongoing efforts to prosecute regional drug trafficking, gun and gang violence, internet based crimes against children, and other serious crimes with a federal nexus. The Eastern Idaho Partnership is a collaboration of elected officials and law enforcement from 12 counties and 18 cities across eastern Idaho, in partnership with the Idaho Department of Correction and the U.S. Attorney’s Office.
Hudsonville Resident Sentenced to Four Years in Prison for Investment Fraud SchemeRead the Press Release
Steven J. Hayes Ordered To Pay His Victims $822,961.23 In Restitution
GRAND RAPIDS, MICHIGAN —Steven Jack Hayes, 60, of Hudsonville, Michigan, was sentenced today to 48 months in federal prison after being convicted of two felonies in connection with an investment fraud scheme he perpetrated between 2001 and 2015. U.S. District Judge Robert Holmes Bell imposed the sentence and ordered Hayes remanded to the custody of the U.S. Marshal to start his sentence. Upon release from prison, Hayes will be supervised by the U.S. Probation office for a period of three years.
Hayes operated a tax return and investment consulting business under the name "Hayes Financial Consulting, Business and Personal Financial Consulting." Hayes admitted that he falsely represented to clients that he would invest their money in retirement accounts and other investments, including at Fidelity Investments. In total, nearly 20 individuals in West Michigan invested their money with Hayes. Hayes also pled guilty to filing a false 2011 federal tax return that allegedly underreported his income that year by at least $158,000. In addition to the $822,961.23 restitution order for the victims of his fraud, Hayes was ordered to pay the U.S. Treasury $90,806 in restitution pertaining to his false tax return conviction.
U.S. Attorney Miles stated, "For 14 years, Hayes took advantage of the trust placed in him by his friends, neighbors, and acquaintances. The victims entrusted Hayes with over $1 million of their money—in some cases, their entire retirement accounts—believing his story of a successful and reasonable investing strategy. He lulled his victims to invest more money, including some of their annual tax refunds, by creating fake account statements to make it appear as though their investments were earning interest. In truth, Hayes never invested a dollar and lived on his victims’ retirement accounts and other assets since 2001. This sentence should send a clear message: If you engage in a scheme to defraud others of their hard-earned money, and avoid paying your taxes in the process, you will be held to account for your crime."
"Honest and law abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money as well as skirt their tax obligations," said Manny Muriel, IRS Criminal Investigation, Special Agent in Charge, Detroit Field Office. "Mr. Hayes’s actions not only caused negative ramifications to those financially connected to him, but also the honest taxpayer when he committed significant tax fraud violations. Today’s sentencing demonstrates how federal law enforcement will band together to help put an end to the criminal behavior of those who prey on investors for their personal financial gain."
Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation investigated this matter with valuable assistance from the Ottawa County Sheriff’s Department. Assistant U.S. Attorney Christopher O’Connor prosecuted the case.
END
Hitachi Automotive Systems Agrees to Plead Guilty to Involvement in Anti-Competitive Auto Parts ConspiracyRead the Press Release
Company Pleads Guilty to Fixing Price of Auto Parts for Second Time
Hitachi Automotive Systems Ltd. has agreed to plead guilty and to pay a criminal fine of at least $55.48 million for its role in a conspiracy to allocate markets, fix prices and rig bids for shock absorbers installed in automobiles sold to U.S. consumers, the Justice Department announced today.
According to charges filed in the U.S. District Court of the Southern District of Ohio today, from the mid-1990s until summer 2011 Tokyo-based Hitachi Automotive Systems agreed to allocate the supply of shock absorbers sold to targeted vehicle manufacturers. To keep prices up, Hitachi Automotive Systems and its co-conspirators also agreed to coordinate on price adjustments requested by the vehicle manufacturers and strived to keep their conduct secret by using code names and meeting in remote locations.
In 2013, Hitachi pleaded guilty and paid a $195 million fine for fixing the price of starters, alternators and other electrical automotive components. At that time, Hitachi received credit for substantially assisting the division’s investigation. But in the course of providing that assistance Hitachi failed to uncover that it had also conspired to fix the price of shock absorbers. As a result, the division will recommend a substantial increase in Hitachi’s criminal fine from the bottom of the Guidelines fine range and also recommend that the court place Hitachi on probation for three years. These recommendations are consistent with the division’s approach in cases where a company fails to uncover the entire scope of its illegal conduct at the time it enters into a plea agreement.
“Hitachi Automotive Systems thwarted the competitive process when it fixed the price of shock absorbers,” said Acting Assistant Attorney General Renata Hesse of the Justice Department’s Antitrust Division. “Compounding its error, when it pled guilty in 2013 Hitachi failed to clean house and uncover its participation in the shock absorbers conspiracy. The division will continue to take a hard line when companies fail to uncover additional anticompetitive behavior.”
“When companies conspire to fix prices, consumers are the victims,” said Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division. “Working with the Department of Justice and our other partners, the FBI will continue to pursue those that illegally scheme to suppress and eliminate competition.”
Hitachi Automotive Systems has agreed to cooperate with the division’s ongoing investigation. The plea agreement is subject to court approval.
Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI. Including Hitachi Automotive Systems, 45 companies and 64 executives have been charged in the division’s ongoing investigation and have agreed to pay a total of more than $2.8 billion in criminal fines.
Hitachi Automotive Systems is being prosecuted by the Antitrust Division’s Chicago Office and the FBI’s Cincinnati Field Office, with assistance from the U.S. Attorney’s Office of the Southern District of Ohio. Anyone with information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html, or call the FBI’s Cincinnati Field Office at 513-421-4310.
Hitachi Information
Franklin, Tennessee Man Sentenced to 48 Months in Prison for Romney Tax Return Fraud and Extortion SchemeRead the Press Release
Michael Mancil Brown, 37, of Franklin, Tenn., was sentenced late yesterday to 48 months in prison for engaging in an extortion and wire fraud scheme involving former presidential candidate Mitt Romney’s tax returns, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; and Special Agent in Charge Todd Hudson of the U.S. Secret Service’s Nashville Field Office.
Brown was found guilty at trial on May 12, 2016, of six counts of wire fraud and six counts of using facilities of interstate commerce to commit extortion. U.S. District Judge Billy Roy Wilson of the Eastern District of Arkansas, sitting by designation in the Middle District of Tennessee, imposed the sentence and also ordered Brown to pay $201,836 in restitution to PricewaterhouseCoopers LLP.
According to testimony at trial, evidence recovered from a computer seized from Brown’s residence in 2012 implicated Brown in a scheme to defraud Romney, the accounting firm of PricewaterhouseCoopers and others, by falsely claiming that he had gained access to the PricewaterhouseCoopers internal computer network and had stolen tax documents for Romney and his wife, Ann D. Romney, for tax years prior to 2010.
In August 2012, a letter delivered to the offices of PricewaterhouseCoopers in Franklin demanded that $1 million worth of the digital currency Bitcoin be deposited to a specific Bitcoin account to prevent the release of the purportedly stolen Romney tax returns, according to trial evidence. The letter invited interested parties who wanted the allegedly stolen Romney tax documents to be released to contribute $1 million to another Bitcoin account. As part of the scheme, similar letters were delivered to the offices of the Democratic and Republican parties in Franklin and similar statements were posted to Pastebin.com.
The U.S. Secret Service’s Nashville Field Office investigated the case with assistance from the FBI’s Nashville office. Assistant U.S. Attorney Byron Jones of the Middle District of Tennessee and Senior Counsel Anthony V. Teelucksingh of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case.
Four Nuestra Familia Gang Members Convicted in California for Their Roles in Racketeering Conspiracy, Murder and Related OffensesRead the Press Release
After an approximately three-month trial, four Nuestra Familia gang members have been convicted for their roles in a wide-ranging racketeering conspiracy that involved several murders, drug trafficking and firearms offenses, among other related offenses.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Brian Stretch of the Northern District of California and Special Agent in Charge John Bennett of the FBI’s San Francisco Division made the announcement.
Henry Cervantes, 52, aka Happy, of Lodi, California; Alberto Larez, 48, aka Bird, of Salinas, California; Jaime Cervantes, 33, aka Hennessy, of San Mateo, California; and Andrew Cervantes, 60, aka Mad Dog, of Stockton, California, were each convicted today of racketeering conspiracy and other offenses. In addition, Larez was convicted of murder in aid of racketeering, use of a firearm in furtherance of a crime of violence and use of a firearm in furtherance of a crime of violence causing death; Jaime Cervantes and Larez were convicted of conspiracy to commit murder in aid of racketeering and conspiracy to commit assault with a dangerous weapon in aid of racketeering; Jaime Cervantes was convicted of two counts of assault with a dangerous weapon in aid of racketeering, conspiracy to commit a robbery affecting interstate commerce, robbery affecting interstate commerce and possession of a firearm in furtherance of a crime of violence; Henry Cervantes and Jaime Cervantes were convicted of use of fire to commit a felony, conspiracy to obstruct justice and obstruction of justice; and Henry and Andrew Cervantes and Larez were convicted of conspiracy to distribute controlled substances.
According to evidence presented at trial, Nuestra Familia is a prison gang that originally formed in the California state prison system in the 1960s. Nuestra Familia leaders control and direct the gang’s criminal activities both inside and outside of the prison system.
According to evidence presented at trial, the defendants were members or associates of the federal branch of the Nuestra Familia, which was controlled by two principal overseers incarcerated in the Federal Bureau of Prisons (BOP), one of whom was Andrew Cervantes while he was serving a 210-month sentence for a 1999 racketeering conviction. Larez and Henry Cervantes were senior gang members who reported to Andrew Cervantes. In 2010, Henry Cervantes and Larez were released from the BOP after serving sentences for racketeering conspiracy convictions in 2004 involving the distribution of controlled substances on behalf of Nuestra Familia. Larez recruited individuals, including Jaime Cervantes, to commit crimes on behalf of the gang and Henry Cervantes supervised the criminal activities of the gang in Oakland, California.
From approximately fall 2010 through March 2013, under the supervision of Henry Cervantes and Larez, members and associates of Nuestra Familia engaged in the trafficking of methamphetamine, cocaine and heroin and committed robberies to raise money for themselves and the gang. At the direction of Andrew Cervantes, Larez instructed his subordinates to send proceeds from their criminal activities by Western Union to the commissary accounts of gang leaders incarcerated in several BOP facilities, including the account of Andrew Cervantes. Larez communicated with Andrew Cervantes primarily through prison phone calls and correspondence using coded language.
Between May and August 2011, Larez and Jaime Cervantes robbed and assaulted a woman making a bank deposit of proceeds from a gas station, then robbed the same woman at gunpoint at the gas station, and stabbed a suspected rival gang member. All of these crimes were planned and orchestrated by Larez, whose wife worked at the same gas station.
In September 2011, Henry Cervantes stabbed two victims to death at an apartment in Oakland and ordered Jaime Cervantes and another gang member to burn the bodies at the apartment to cover up evidence, which they proceeded to do.
In January 2012, Jaime Cervantes and two other members committed a home invasion robbery of a drug dealer. During the robbery, Jaime Cervantes beat one victim over the head with a baseball bat and another victim was shot.
In August 2012, Larez and two other gang members traveled to San Jose, California, and lured another gang member suspected of cooperating with law enforcement to a “meeting,” where he was shot to death while sitting in his vehicle.
In late 2012, while incarcerated at U.S. Penitentiary (USP) Lewisburg in Pennsylvania, Andrew Cervantes ordered via coded letters the murder of an inmate at USP McCreary in Kentucky. In March 2013, the inmate – whom Andrew Cervantes believed had violated gang rules – was assaulted and stabbed by two Nuestra Familia inmates in the prison dining facility and survived.
Eight co-defendants previously pleaded guilty to racketeering conspiracy and other offenses in connection with this case.
The FBI Oakland Resident Agency investigated the case with the U.S. Attorney’s Office of the Northern District of California, with assistance from the BOP. The Santa Clara County, California, District Attorney’s Office; Oakland Police Department; San Jose Police Department; Red Bluff, California, Police Department; Livermore, California, Police Department; Alameda County, California, Sheriff’s Office; Tehama County, California, District Attorney’s Office; and Tehama County Sheriff’s Office also assisted in the investigation.
Trial Attorney Robert S. Tully of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys William Frentzen and Joseph M. Alioto of the Northern District of California are prosecuting the case with assistance from Kevin Costello, Courtney Fisher, Melissa Dorton, Daniel Charlier-Smith, Lance Libatique and Lauren Hipolito
Four Nuestra Familia Gang Members Convicted for Their Roles in Racketeering Conspiracy and Related OffensesRead the Press Release
OAKLAND— After an approximately three-month trial, four Nuestra Familia gang members have been convicted for their roles in a wide-ranging racketeering conspiracy that involved several murders, drug trafficking, and firearms offenses, among other related offenses. The announcement was made by U.S. Attorney Brian J. Stretch, U.S. Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
Henry Cervantes, 52, aka Happy, of Lodi; Alberto Larez, 48, aka Bird, of Salinas; Jaime Cervantes, 33, aka Hennessy, of San Mateo; and Andrew Cervantes, 60, aka Mad Dog, of Stockton, were each convicted today of racketeering conspiracy and other offenses. In addition, Larez was convicted of murder in aid of racketeering, use of a firearm in furtherance of a crime of violence, and use of a firearm in furtherance of a crime of violence causing death; Jaime Cervantes and Larez were convicted of conspiracy to commit murder in aid of racketeering and conspiracy to commit assault with a dangerous weapon in aid of racketeering; Jaime Cervantes was convicted of two counts of assault with a dangerous weapon in aid of racketeering, conspiracy to commit a robbery affecting interstate commerce, robbery affecting interstate commerce, and possession of a firearm in furtherance of a crime of violence; Henry Cervantes and Jaime Cervantes were convicted of use of fire to commit a felony, conspiracy to obstruct justice, and obstruction of justice; and Henry and Andrew Cervantes and Larez were convicted of conspiracy to distribute controlled substances.
According to evidence presented at trial, Nuestra Familia is a prison gang that originally formed in the California state prison system in the 1960s. Nuestra Familia leaders control and direct the gang’s criminal activities both inside and outside of the prison system.
The evidence also demonstrated that defendants were members or associates of the federal branch of the Nuestra Familia, which was controlled by two principal overseers incarcerated in the Federal Bureau of Prisons (BOP), one of whom was Andrew Cervantes while he was serving a 210-month sentence in federal prison. The evidence demonstrated that Andrew Cervantes was the national "overseer" of the gang; i.e., the top member who was not in a supermax prison. Larez and Henry Cervantes were senior gang members who reported to Andrew Cervantes. In 2010, Henry Cervantes and Larez were released from the BOP. Larez recruited individuals, including Jaime Cervantes, to commit crimes on behalf of the gang and Henry Cervantes supervised the criminal activities of the gang in Oakland.
From approximately fall 2010 through March 2013, under the supervision of Henry Cervantes and Larez, members and associates of Nuestra Familia engaged in the trafficking of methamphetamine, cocaine, and heroin and committed robberies to raise money for themselves and the gang. At the direction of Andrew Cervantes, Larez instructed his subordinates to send proceeds from their criminal activities by Western Union to the commissary accounts of gang leaders incarcerated in several BOP facilities, including the account of Andrew Cervantes. Larez communicated with Andrew Cervantes primarily through prison phone calls and correspondence using coded language.
Between May and August 2011, Larez and Jaime Cervantes robbed and assaulted a woman making a bank deposit of proceeds from a gas station, then robbed the same woman at gunpoint at the gas station, and stabbed a suspected rival gang member. All of these crimes were planned and orchestrated by Larez, whose wife worked at the same gas station.
In September 2011, Henry Cervantes ordered Jaime Cervantes and another gang member to burn the bodies of two stabbing victims. The bodies were in an apartment in Oakland and Henry Cervantes ordered the bodies burned to cover up evidence that the victims had been killed. Jaime Cervantes and the other gang member complied with Henry Cervantes’ instructions.
In January 2012, Jaime Cervantes and two other members committed a home invasion robbery of a drug dealer. During the robbery, Jaime Cervantes beat one victim over the head with a baseball bat and another victim was shot.
In August 2012, Larez and two other gang members traveled to San Jose, and lured another gang member suspected of cooperating with law enforcement to a “meeting,” where he was shot to death while sitting in his vehicle.
In late 2012, while incarcerated at U.S. Penitentiary (USP) Lewisburg in Pennsylvania, Andrew Cervantes ordered via coded letters the murder of an inmate at USP McCreary in Kentucky. In March 2013, the inmate – whom Andrew Cervantes believed had violated gang rules – was assaulted and stabbed by two Nuestra Familia inmates in the prison dining facility and survived.
Eight co-defendants previously pleaded guilty to racketeering conspiracy and other offenses in connection with this case.
The case was investigated by the FBI and the U.S. Attorney’s Office of the Northern District of California, with assistance from the BOP. Additional assistance was provided by the Santa Clara County District Attorney’s Office; the Campbell Police Department; the Oakland Police Department; the San Jose Police Department; the Red Bluff Police Department; the Livermore Police Department; the Alameda County Sheriff’s Office; the Tehama County District Attorney’s Office; and the Tehama County Sheriff’s Office.
Assistant U.S. Attorneys William Frentzen and Joseph M. Alioto and trial Attorney Robert S. Tully of the Criminal Division’s Organized Crime and Gang Section are are prosecuting the case with assistance from Kevin Costello, Courtney Fisher, Melissa Dorton, Daniel Charlier-Smith, Lance Libatique, and Lauren Hipolito
Fort Defiance Man Sentenced to 63 Months for Violent AssaultRead the Press Release
PHOENIX – Today, Ryan Haskie, 29, of Fort Defiance, Ariz., was sentenced by U.S. District Judge Paul G. Rosenblatt to a total of 63 months of imprisonment, to be followed by three years of supervised release. Haskie had previously pleaded guilty to assault resulting in serious bodily injury and admitted to violating his terms of supervised release in a previous case.
In October 2015, Haskie, a member of the Navajo Nation, violently assaulted an elderly man, also a member of the Navajo Nation, in the Fort Defiance community.
The investigation in this case was conducted by the Navajo Nation Department of Public Safety. The prosecution was handled by Assistant U.S. Attorney Alexander Samuels, District of Arizona, Phoenix.
CASE NUMBER: CR-15-8243-PCT-PGR-1 and CR-12-8178-PGR-2
RELEASE NUMBER: 2016-063_Haskie
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Former St. John Husband and Wife Each Sentenced to 36 Months’ ImprisonmentRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David A. Capp, announced that Barbara Gasich, 54, and George Gasich, 55, formerly of St. John, Indiana and now residing in Lakewood Ranch, Florida, were sentenced in Hammond Federal Court before Chief Judge Philip Simon for making false claims with the federal government.
Barbara Gasich was sentenced to 36 months’ imprisonment and fined $50,000.
George Gasich was sentenced to 36 months’ imprisonment and fined $50,000.
According to court filings, the Gasichs’ had a 20-year dispute with the IRS which included filing false tax returns and numerous false documents seeking large refunds. At the sentencing hearing, an IRS agent testified that the Gasichs had earned more than $ 3 million since 2000, but had only voluntarily paid $7,458 in federal income tax. The Gasichs owe more than $1.28 million dollars in outstanding tax, interest and penalties.
This case was investigated by the United States Internal Revenue Service, Criminal Investigation Division. This case was handled by Assistant United States Attorneys Gary Bell and Nathaniel Whalen.
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Former Guam Customs Officer Defendant Jayvin Wyll Ueda Remoket Sentenced to 14 Years Incarceration Concurrent to Five Years IncarcerationRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI),announced that on August 8, 2016, Defendant JAYVIN WYLL UEDA REMOKET was sentenced by the Honorable Frances Tydingco-Gatewood, Chief Judge, District Court of Guam. Defendant was sentenced to serve 14 years incarceration, to run concurrent to five years incarceration, followed by three years of supervised release.
Defendant REMOKET pled guilty on May 15, 2014 to Conspiracy to Distribute Methamphetamine, in violation of Title 21 U.S.C. Sections 846(a)(1) and (b)(1)(C) and to Giving Notice of a Search Warrant, in violation of 18 U.S.C. Section 2232(c). Defendant REMOKET was a Guam Customs and Quarantine Officer assigned to the Contraband Enforcement Team at the time of the offenses. He conspired with co-defendants Amos Ueda and Frederick Obak to receive and distribute a package containing 984.3 grams of methamphetamine hydrochloride at a business establishment in Guam, namely Staywell Insurance in Hagatna, Guam. The contents of the package were to be broken down for later distribution on Guam. The methamphetamine hydrochloride was concealed within a U.S. Priority Mail package and sent from Washington State to Guam where it was intercepted by the U.S. Postal Inspector. The Drug Enforcement Administration Forensic Laboratory determined that the methamphetamine had a high purity level of 82.2%. The street value of 984.3 grams of methamphetamine hydrochloride exceeds $492,150.00.
The investigation was conducted by the Guam U.S. Postal Inspector and Drug Enforcement Administration Special Agents as well as Task Force Officers who determined that REMOKET, using his position of authority, attempted to protect the conspiracy by giving notice to his co-defendants of the interception of the package.
U.S. Attorney Limtiaco stated, "The defendant, at the time of the crimes, was a Guam Customs and Quarantine Officer assigned to the Contraband Enforcement Team. He abused and violated the public's trust by using and exploiting his official position to commit the crimes and gain information to impede the investigation in this case. It is not uncommon for methamphetamine hydrochloride possession and distribution to be associated with violent and other criminal activity. The drug has destructive and devastating effects on individuals, families and our community. The U.S. Attorney’s Office is committed to the aggressive prosecution of those offenders who traffic drugs and abuse their positions of authority to commit criminal activity."
This conviction resulted from the concerted efforts of law enforcement partners in an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF is a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
The investigating agencies include the Drug Enforcement Administration (DEA), U.S. Department of Homeland Security/U.S. Immigration and Customs Enforcement (ICE) - Homeland Security Investigations (HSI), U.S. Postal Inspection Service (USPIS), and the Guam Police Department (GPD). The case was prosecuted by Assistant U.S. Attorney Rosetta San Nicolas.
Former Canadian Moneygram and Western Union Agent Pleads Guilty to Fraud and Money Laundering Conspiracy ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former Western Union and MoneyGram agent pleaded guilty yesterday to charges he participated in an international mass marketing consumer fraud scheme.
According to United States Attorney Peter Smith, Alex Mgbolu, age 45 of Toronto, Canada, pleaded guilty today before Chief U.S. District Court Judge Christopher C. Conner in Harrisburg to conspiracy to commit mail fraud, wire fraud and money laundering.
According to the Indictment by a Middle District of Pennsylvania grand jury in September 2012, Mgbolu conspired with Chima Nneji, William Nneji, and other unnamed individuals between July 2002 and May 2010 to commit the crimes. Mgbolu was extradited to the United States from Canada.
Mgbolui was the owner/operator of a Western Union agency called FA CAM Associates (FA CAM) and a MoneyGram agency also known as FA CAM. Both agencies were located in Toronto, Canada. Between July 2002 and May 2010 international mass marketing fraudsters allegedly instructed hundreds of consumer fraud victims across the United States to send Western Union and MoneyGram money transfers to Canada where the transfers were paid out by Mgbolu at FA CAM. Mgbolu concealed the fraudsters’ identity by entering false names and identification data into the Western Union and MoneyGram computer data bases. Analysts from the Toronto Police and U.S. Postal Inspection Service have determined that over 90% of the payee addresses and identification numbers entered at FA CAM were invalid. For his role in the scheme Mgbolu retained a portion of the money transfers before sending the balance of the proceeds on to the fraudsters.
After Western Union terminated FA CAM and MoneyGram restricted FA CAM’s ability to pay out money transfers, money transfer checks from other fraud-complicit MoneyGram Western Union agents in the greater Toronto area were deposited into FA CAM’s bank account. The deposit of fraudulently induced funds into what appears to be a legitimate business bank account and the subsequent reissuance of the proceeds via checks and wire transfers helps to launder the proceeds and conceal the identity of the fraudsters is known as “check pooling.”
Overall, between July 2002 and May 2010, FA CAM and the 13 complicit Western Union and MoneyGram agents paid out 907 money transfers totaling $2,127,410 that were reported by the Senders as being fraud induced.
Codefendant Chima Nneji pleaded guilty to the same conspiracy charge before Judge Conner on July 21, 2016. No date has been scheduled as yet for Mgbolu’s or Nneji’s sentencing.
Codefendant William Nneji remains a fugitive from justice.
The case is part of a long term continuing investigation by the Harrisburg Office of the United States Postal Inspection Service, assisted by the Toronto Police and is being prosecuted by Assistant United States Attorney Kim Douglas Daniel.
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Former CEO of Canadian Hazardous Waste Treatment Company Sentenced to Serve 63 Months in Prison for Role in Kickback and Fraud Schemes Against the United StatesRead the Press Release
The former chief executive at Bennett Environmental Inc., a Canada-based company that treats and disposes of contaminated soil, was sentenced today to serve 63 months in prison in connection with the payment of kickbacks to obtain subcontracts at a New Jersey Superfund site overseen by the U.S. Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers, the Department of Justice announced today.
John Bennett, of Vancouver, British Columbia, was also sentenced to pay a $12,500 criminal fine and $3,808,065 in restitution in U.S. District Court for the District of New Jersey in Newark by Judge Susan D. Wigenton. Bennett was charged with these crimes in August 2009 and was extradited from Canada to the United States in November 2014 to face trial. After a three-week jury trial that ended on March 16, 2016, Bennett was convicted of committing major fraud against the United States and conspiring to pay more than $1.3 million in kickbacks and to defraud the United States at the Federal Creosote Superfund site in Manville, New Jersey.
“Contractors cannot make payoffs to obtain government contracts,” said Acting Assistant Attorney General Renata Hesse for the Justice Department’s Antitrust Division. “Today’s sentencing reaffirms the division’s dedication to prosecuting executives whose greed and illegal ploys undercut competition and defraud the United States.”
According to court documents, between 2001 and 2004 Bennett conspired with others at Bennett Environmental to pay kickbacks, that included money wired to a co-conspirator’s shell company, lavish trips and entertainment expenses and personal gifts, to the project manager at Federal Creosote in an effort to guarantee the award of soil treatment contracts to his company. As a result of the payment of these kickbacks, Bennett Environmental was fraudulently awarded tens of millions of dollars in soil treatment and disposal contracts at Federal Creosote, and the company won contracts at higher prices than it otherwise would have bid, causing harm to the EPA.
The investigation at Federal Creosote has resulted in the conviction of ten individuals and three companies of charges including major fraud against the United States, tax fraud, money laundering and obstruction of justice. Criminal fines and restitution of more than $6 million also have been imposed and seven of the individuals have been sentenced to serve prison sentences ranging from 5 months to 14 years.
Anyone with information concerning bid rigging, kickbacks, tax offenses or fraud relating to subcontracts awarded at Federal Creosote or Diamond Alkali Superfund sites should contact the Antitrust Division’s New York Office at 212-335-8000 or visit https://www.justice.gov/atr/contact/newcase.htm.
Eighth Circuit Court of Appeals Affirms Sentences for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Randolph J. Seiler announces that the Eighth Circuit Court of Appeals has affirmed the convictions and sentences of Wesley Running Shield and Michael Alford. The two were convicted by a federal jury in February 2015 of assault with a dangerous weapon and assault resulting in serious bodily injury. The two were each sentenced to 180 months’ imprisonment.
The convictions related to the two men of assaulting a victim in Pine Ridge, South Dakota, in June 2014. They were separately indicted for assaulting two additional victims’ days later, also in Pine Ridge. Rather than proceed to a second jury trial, the government dismissed the second indictment but introduced evidence of the additional assaults in seeking a higher sentence.
On appeal, the two men challenged the district court’s consideration of the dismissed assaults when imposing the sentences. The court of appeals affirmed in a published opinion today, holding that sentencing courts have broad discretion to consider the evidence on the separate assault when sentencing the two men. It also did not violate their due process rights under the Sixth Amendment of the Constitution because the sentences fell within the statutory maximum terms, and a district court is entitled to determine sentences based on judge-found facts and uncharged conduct.
Assistant U.S. Attorney Sarah Collins prosecuted the case at trial, and Assistant U.S. Attorney Kevin Koliner handled the appeal for the government. The case was investigated by the Oglala Sioux Tribe Department of Public Safety and the Bureau of Indian Affairs.
Eight Individuals Charged in Multimillion-Dollar Compounding Pharmacy Fraud SchemeRead the Press Release
Eight Florida residents were charged in an indictment that was unsealed today for their alleged participation in a multimillion-dollar fraud scheme involving prescription compounding pharmacies located in the Tampa Bay, Florida, area and in Miami.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office and Special Agent in Charge George Piro of the FBI’s Miami Field Office made the announcement.
Nicholas A. Borgesano Jr., 43, of New Port Richey, Florida; Bradley Sirkin, 54, of Boca Raton, Florida; Scott D. Piccininni, 47, of Fort Lauderdale, Florida; Edwin Patrick Young, 48, of New Port Richey; Wayne M. Kreisberg, 39, of Parkland, Florida; Matthew N. Sterner, 47, of New Port Richey; Peter D. Williams, 55, of New Port Richey; and Joseph Degregorio, 71, of New Port Richey, were each charged in a 12-count indictment returned on Aug. 3, 2016, with conspiracy to commit health care fraud and wire fraud. Borgesano, Sirkin, Piccininni, Kreisberg and Sterner were each also charged with three money laundering counts. Several defendants were arrested today and will have their initial appearances in federal courts in the Middle and Southern Districts of Florida.
According to the indictment, from approximately October 2012 through December 2015, the co-conspirators allegedly used A to Z Pharmacy Inc., located in New Port Richey, and several Miami-area pharmacies to cause the submission of false and fraudulent reimbursement claims for prescription compounded medications to private insurance companies, Medicare and Tricare. These reimbursement claims were allegedly based on prescriptions generated as a result of illegal kickbacks and bribes, prescriptions that were not based on legitimate provider/patient relationships and misuse of patient information. Additionally, the reimbursement claims allegedly represented that medications contained certain pharmaceutical ingredients when they did not. In addition to A to Z Pharmacy, the defendants used Medplus/New Life Pharmacy, Metropolitan Pharmacy, Havana Pharmacy, Jaimy Pharmacy and Prestige Pharmacy to submit the reimbursement claims, according to the indictment.
The pharmacies submitted approximately $633 million in claims for prescription compounded medications and received approximately $157 million in reimbursement based on the claims, the indictment alleges. The conspirators allegedly used shell companies to transfer and disburse the money and to conceal the conspirators’ activities in the fraud scheme.
An indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office of the Middle District of Florida. Senior Trial Attorney Christopher J. Hunter of the Criminal Division’s Fraud Section is prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,900 defendants who have collectively billed the Medicare program for more than $10 billion. In addition, the U.S. Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to www.stopmedicarefraud.gov.
Eight Individuals Charged in Multimillion-Dollar Compounding Pharmacy Fraud SchemeRead the Press Release
Tampa, FL – Eight Florida residents were charged in an indictment that was unsealed today for their alleged participation in a multimillion-dollar fraud scheme involving prescription compounding pharmacies located in the Tampa Bay area and in Miami.
U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office, and Special Agent in Charge George Piro of the FBI’s Miami Field Office made the announcement.
Nicholas A. Borgesano Jr., 43, of New Port Richey; Bradley Sirkin, 54, of Boca Raton; Scott D. Piccininni, 47, of Fort Lauderdale; Edwin Patrick Young, 48, of New Port Richey; Wayne M. Kreisberg, 39, of Parkland; Matthew N. Sterner, 47, of New Port Richey; Peter D. Williams, 55, of New Port Richey, and Joseph Degregorio, 71, of New Port Richey, were each charged in a 12-count indictment returned on Aug. 3, 2016, with conspiracy to commit health care fraud and wire fraud. Borgesano, Sirkin, Piccininni, Kreisberg and Sterner were each also charged with three money laundering counts. Several defendants were arrested today and will have their initial appearances in federal courts in the Middle and Southern Districts of Florida.
According to the indictment, from approximately October 2012 through December 2015, the co-conspirators allegedly used A to Z Pharmacy Inc., located in New Port Richey, and several Miami-area pharmacies to cause the submission of false and fraudulent reimbursement claims for prescription compounded medications to private insurance companies, Medicare and Tricare. These reimbursement claims were allegedly based on prescriptions generated as a result of illegal kickbacks and bribes, prescriptions that were not based on legitimate provider/patient relationships and misuse of patient information. Additionally, the reimbursement claims allegedly represented that medications contained certain pharmaceutical ingredients when they did not. In addition to A to Z Pharmacy, the defendants used Medplus/New Life Pharmacy, Metropolitan Pharmacy, Havana Pharmacy, Jaimy Pharmacy and Prestige Pharmacy to submit the reimbursement claims, according to the indictment.
The pharmacies submitted approximately $633 million in claims for prescription compounded medications and received approximately $157 million in reimbursement based on the claims, the indictment alleges. The conspirators allegedly used shell companies to transfer and disburse the money and to conceal the conspirators’ activities in the fraud scheme.
An indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office of the Middle District of Florida. Senior Trial Attorney Christopher J. Hunter of the Criminal Division’s Fraud Section is prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,900 defendants who have collectively billed the Medicare program for more than $10 billion. In addition, the U.S. Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to www.stopmedicarefraud.gov.
Eagle Butte Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Joseph Paul Marshall, age 37, was indicted on July 19, 2016. He appeared before U.S. Magistrate Daneta L. Wollmann on August 8, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between February 1, 2016 and March 10, 2016, and again between March 20, 2016, and April 10, 2016, Marshall, a person required to register under the Sex Offender Registration and Notification Act, knowingly failed to register and update his registration.
The charges are merely an accusation and Marshall is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jay P. Miller is prosecuting the case.
Marshall was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Dominican Man Sentenced After Pleading Guilty to Misrepresenting A Social Security NumberRead the Press Release
CONCORD, NEW HAMPSHIRE –United States Attorney Emily Gray Rice announced today that Sergio Yeremi Martinez-Mejia, of the Dominican Republic, was sentenced to a time-served sentence after pleading guilty, on May 2, 2016, to falsely claiming that he was assigned a social security number that was in fact assigned to another person.
On March 24, 2015, Immigration and Customs Enforcement was notified that the defendant was suspected of being a foreign national illegally in the United States. On March 23, 2015, the defendant told the Portsmouth Police Department that he was a Puerto Rican U.S. citizen and provided the police a certain social security number that he claimed was his.
On March 24, 2015, an Immigration and Customs Enforcement Deportation Officer interviewed Martinez-Mejia. The defendant claimed that he was born in Puerto Rico and provided the officer with a social security number not in fact assigned to Martinez-Mejia.
The Deportation Officer submitted the defendant’s fingerprints to the Department of Homeland Security and to the FBI. Each agency returned a match for the defendant, Sergio Yeremi Martinez-Mejia, who had, on July 11, 2011, been ordered deported from the United States to the Dominican Republic. Records of the U.S. Social Security Administration revealed that neither of the numbers the defendant claimed were assigned to him actually had been assigned to him.
Martinez-Mejia will now be deported.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement and the Portsmouth Police Department. Assistant U.S. Attorney Alfred Rubega prosecuted this case.
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District Man Pleads Guilty to Two Armed Robberies of Commercial Businesses in the Same WeekRead the Press Release
WASHINGTON – Malik Mingo, 19, of Washington, D.C., pled guilty today to offenses stemming from two separate armed robberies of commercial businesses that were committed in broad daylight last year in Southeast Washington, announced U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Mingo pled guilty before the Honorable Rosemary M. Collyer, in the U.S. District Court for the District of Columbia, to one count of interference with interstate commerce by robbery and one count of using, carrying, and possessing a firearm in furtherance of a crime of violence. Under federal sentencing guidelines, he faces a possible range of 161 months to 180 months in prison and a statutory maximum of life in prison. He is to be sentenced on Oct. 20, 2016.
According to the government’s evidence, on Sept. 19, 2015, at approximately 12:50 p.m., Mingo, while masked, and with at least two additional masked individuals, entered Pizza Bolis, a pizza shop in the 1500 block of Alabama Avenue SE. During the course of the robbery, a gun was placed at the head of the cashier and approximately $213 was stolen from the register. Mingo and his accomplices also stole $1,800 and a cellphone from a customer inside the pizzeria. The masked individuals were seen leaving the area in a black Infinity SUV.
Four days later, on Sept. 23, 2015, at approximately noon, Mingo and his accomplice, Jarred Thomas, entered the “Like That 2” barber shop in the 3300 block of Stanton Road SE, while wearing masks and brandishing loaded firearms. The barber shop was located around the corner from the Pizza Bolis that had been robbed four days earlier. At gunpoint, Mingo ordered everyone to the ground and demanded that they hand over their money. Numerous victims were robbed at gunpoint of cash and possessions. Present during the armed robbery was a small child.
After the robbery, Mingo was observed leaving the area in a black Infinity SUV that matched the vehicle seen leaving the Pizza Bolis pizzeria. Mingo subsequently was apprehended by the police three blocks from the barber shop and a firearm was recovered in his flight path. The black Infinity SUV used by Mingo was located and identified as having been stolen in a separate armed robbery eight days earlier.
Thomas, 19, of Washington, D.C., pled guilty in May 2016, in the U.S. District Court for the District of Columbia, to charges stemming from the barber shop robbery, including one count of interference with interstate commerce by robbery, one count of using, carrying, and possessing a firearm in furtherance of a crime of violence, and one count of unauthorized use of a vehicle. He was sentenced on July 13, 2016 to a prison term of 121 months.
In announcing the plea, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Chief Lanier commended the work of those who investigated the case from the Violent Crime Task Force of the FBI’s Washington Field Office and from the Metropolitan Police Department. They 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.
Defendants Eric Tedtaotao and Macrina Tedtaotao Sentenced in U.S. District CourtRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that on August 8, 2016, Defendants ERIC TEDTAOTAO AND MACRINA TEDTAOTAO, husband and wife, were sentenced by the Honorable Ramona Manglona, Chief Judge, in the District Court of Guam.
Both TEDTAOTAOS pled guilty to Conspiracy to Unlawfully Import Methamphetamine, in violation of Title 21, United States Code, Section 846, 952(a) and 960(b)(3). ERIC TEDTAOTAO was a Department of Corrections (DOC) officer during the conspiracy. He was sentenced to serve 71 months incarceration followed by three years of supervised release, and 100 hours of community service. Defendant MACRINA TEDTAOTAO was sentenced to serve 97 months in prison followed by three years of supervised release, and 100 hours of community service.
On August 4, 2012, Bertha Moore (MACRINA’s aunt) arrived in Guam from the Philippines. She was detained by Guam Customs and Quarantine who recovered three condoms containing methamphetamine from her rectum. Moore was transporting the methamphetamine into Guam for ERIC and MACRINA TEDTAOTAO. Moore was sentenced last year to 87 months in prison.
U.S. Attorney Limtiaco stated, "Defendant ERIC TEDTAOTAO, at the time of the criminal activity, was a DOC officer and as law enforcement, violated the public's trust. It is not uncommon for methamphetamine hydrochloride possession and distribution to be associated with violent and other criminal activity. The drug has destructive and devastating effects on individuals, families and our community. The U.S. Attorney’s Office is committed to the aggressive prosecution of drug traffickers."
The investigation was conducted by Special Agents and Task Force Officers of the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Guam Police Department, Superior Court of Guam Probation Office, Guam Customs and Quarantine, U.S. Marshals Service, the Filipino National Police and the U.S. State Department. The case was handled by Assistant U.S. Attorney Clyde Lemons, Jr.