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Thursday 9 June 2016
Justice Department and North Carolina Sue Carolinas Healthcare System to Eliminate Unlawful Steering RestrictionsRead the Press Release
Anticompetitive Restrictions Bar Insurers from Steering Patients to Lower-Cost Competing Providers
The Department of Justice today filed a civil antitrust lawsuit against Carolinas HealthCare System (CHS), challenging CHS’s practice of imposing steering restrictions in its contracts with commercial health insurers in the Charlotte, North Carolina, area.
The Antitrust Division and the state of North Carolina filed the lawsuit in the U.S. District Court for the Western District of North Carolina. The complaint alleges that CHS, with its approximately 50 percent share in the sale of acute inpatient hospital services to health insurers in the Charlotte area, has used its market power to require steering restrictions in its contracts with every major insurer. These provisions have prevented insurers from, among other things, introducing health plans that encourage patients to use medical providers that offer lower priced, higher-quality services.
“Americans should be able to choose a healthcare provider that gives them and their families the most cost-effective and appropriate treatment,” said Principal Deputy Assistant Attorney General Renata B. Hesse, head of the Justice Department’s Antitrust Division. “This lawsuit will stop a dominant hospital from using its market power to undermine its smaller competitors’ efforts to attract patients by competing on the price and quality of their services.”
“Today’s enforcement action seeks to ensure that consumers in the Charlotte area will benefit by identifying the more cost-efficient, quality providers when making the critically important decision of selecting a doctor or hospital,” said U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina. “In these times of escalating health care costs, vigilant antitrust enforcement in local healthcare markets such as the Charlotte area is essential to protecting the interests of consumers.”
CHS is the largest healthcare system in North Carolina and one of the largest not-for-profit healthcare systems in the United States. In 2014, CHS had net operating revenue of about $8.7 billion.
Justice Department Reaches Agreement with Milwaukee to Ensure Civic Access for People with DisabilitiesRead the Press Release
The Justice Department reached an agreement today with the city of Milwaukee to improve access to all aspects of civic life for persons with disabilities. The agreement was reached under Project Civic Access (PCA), the department’s wide-ranging initiative to ensure that cities, towns and counties throughout the country comply with the Americans with Disabilities Act (ADA).
Today’s agreement was reached under Title II of the ADA, which prohibits discrimination against individuals with disabilities by state and local governments. The agreement requires the actions to be completed within three years and the department will actively monitor compliance with the agreement throughout this timeframe.
“Cities and towns must comply with the ADA so that people with disabilities can use public entities and participate fully in their community – from enjoying parks and libraries, to accessing polling places and courthouses,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We applaud Milwaukee’s commitment to ensuring that its entire population can access the city’s public resources and look forward to seeing these critical reforms become a reality.”
The agreement requires the city to modify facilities surveyed by the department so that they are accessible and to retain an independent licensed architect to survey facilities and programs that were not surveyed by the department. The agreement also requires that Milwaukee certify that all remedial actions are compliant with the ADA, provide auxiliary aids and services necessary to ensure effective communication, ensure accessibility of polling places, provide accessible curb ramps throughout the city and ensure that the city’s website will conform with the Website Content Accessibility Guidelines Level 2.0 Level AA.
PCA ensures that people with disabilities have an equal opportunity to participate in civic life. As part of PCA, Justice Department staff survey state and local government facilities, services and programs in communities across the country to identify changes needed in order to comply with the ADA. The agreements detail the actions that a public entity must take to improve access.
People interested in finding out more about the ADA, this agreement with Milwaukee, PCA or the ADA Best Practices Tool Kit for State and Local Governments may access the ADA web page at www.ada.gov or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).
Milwaukee Settlement Agreement
Justice Department and North Carolina Sue Carolinas Healthcare System to Eliminate Unlawful Steering RestrictionsRead the Press Release
CHARLOTTE, N.C. – The Department of Justice today filed a civil antitrust lawsuit against Carolinas HealthCare System (CHS), challenging CHS’s practice of imposing steering restrictions in its contracts with commercial health insurers in the Charlotte, North Carolina, area.
The Antitrust Division and the state of North Carolina filed the lawsuit in the U.S. District Court for the Western District of North Carolina. The complaint alleges that CHS, with its approximately 50 percent share in the sale of acute inpatient hospital services to health insurers in the Charlotte area, has used its market power to require steering restrictions in its contracts with every major insurer. These provisions have prevented insurers from, among other things, introducing health plans that encourage patients to use medical providers that offer lower priced, higher-quality services.
“Americans should be able to choose a healthcare provider that gives them and their families the most cost-effective and appropriate treatment,” said Principal Deputy Assistant Attorney General Renata B. Hesse, head of the Justice Department’s Antitrust Division. “This lawsuit will stop a dominant hospital from using its market power to undermine its smaller competitors’ efforts to attract patients by competing on the price and quality of their services.”
“Today’s enforcement action seeks to ensure that consumers in the Charlotte area will benefit by identifying the more cost-efficient, quality providers when making the critically important decision of selecting a doctor or hospital,” said U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina. “In these times of escalating health care costs, vigilant antitrust enforcement in local healthcare markets such as the Charlotte area is essential to protecting the interests of consumers.”
CHS is the largest healthcare system in North Carolina and one of the largest not-for-profit healthcare systems in the United States.In 2014, CHS had net operating revenue of about $8.7 billion.
Jury Convicts St. Croix Man of Conspiracy and Bank Robbery OffensesRead the Press Release
St. Croix, USVI – After a six-day trial, on June 8, 2016, a federal jury on St. Croix convicted Damian Lang, Sr., 37, of conspiracy to commit bank robbery and bank robbery, United States Attorney Ronald W. Sharpe announced.
Lang faces a maximum penalty of five years in prison for conspiracy and a maximum penalty of twenty years in prison for bank robbery. Lang was immediately remanded. No sentencing date has been set.
Evidence presented at trial established that on September 2, 2014, Lang and another individual entered the Bank of St. Croix in Gallows Bay, Christiansted, St. Croix, Virgin Islands, wearing hoodies and masks. Lang jumped the teller counter with a plastic bag and took cash from the till of several tellers. The other individual stood guard at the door with a gun pointed at the employees. They both ran out of the bank and into a stolen Chevy Equinox that they abandoned in a nearby lot. The evidence also established that Lang was under house arrest with electronic monitoring in a pending Superior Court case. GPS tracking placed Lang in the bank at the time of the robbery.
This case was investigated by the Virgin Islands Police Department and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Rhonda Williams-Henry and Alphonso Andrews.
Jury Convicts Columbus Gang Members of Racketeering, MurderRead the Press Release
COLUMBUS, Ohio – A United States District Court jury convicted five Short North Posse gang members of racketeering and murder today following a two-month trial.
Robert B. Ledbetter, 37, Christopher A. Harris, 28, Rashad A. Liston, 26, Deounte Ussury, 31, and Clifford L. Robinson, 38, all of Columbus, were convicted on all counts, which accounted for 10 of 14 previously unsolved homicides. Each defendant faces up to life in prison.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Brad Earman, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Franklin County Prosecutor Ron O’Brien and Columbus Police Chief Kim Jacobs announced the verdict reached today.
The defendants are five of 20 individuals who were indicted in October 2014 in a racketeering case, with charges that include murders, attempted murders, drug trafficking, weapons offenses, extortion and robbery.
Of the 20 total defendants, nine have pleaded guilty and one has died. The remaining five defendants are scheduled for trials on July 11 and September 26.
“These five men had perpetuated a multi-generational tradition of terrorizing Columbus neighborhoods through violence and intimidation,” Acting U.S. Attorney Glassman said. “The verdict today has sent a clear message that their reign has ended and such behavior will not go unpunished.”
Acting U.S. Attorney Glassman commended the two-year investigation by federal, state and local law enforcement agencies, including the FBI, DEA, ATF, Columbus Police, Franklin County Sheriff Zach Scott’s Office, Franklin County Prosecutor Ron O’Brien’s Office, Fairfield County Prosecutor Gregg Marx, Licking County Prosecutor Kenneth Oswalt, Muskingum County Prosecutor D. Michael Haddox, Ross County Prosecutor Matthew S. Schmidt, law enforcement leaders from those counties, and officials of the Ohio Department of Rehabilitation and Correction, as well as Assistant U.S. Attorneys David DeVillers, Kevin Kelley and Brian Martinez and Special Assistant U.S. Attorney Jimmy Lowe with Franklin County Prosecutor O’Brien’s Office, who are representing the United States in this and the related cases.
Indictment: Former Guard Took $200,000 in Bribes for Smuggling Tobacco into Leavenworth PrisonRead the Press Release
KANSAS CITY, KAN. - A former prison guard was indicted Wednesday on federal charges alleging he received more than $200,000 in bribes for smuggling tobacco to prisoners in Leavenworth Penitentiary, Acting U.S. Attorney Tom Beall said.
Marc Buckner, 46, Kansas City, Kan., is charged with one count of accepting bribes. The indictment alleges that from 2005 to 2014 while he worked at the prison he accepted more than $200,000 in bribes. He received approximately $750 from inmates each time he smuggled tobacco into the prison.
If convicted, he faces a penalty of up to 15 years in federal prison and a fine up to three times the value of the contraband. The FBI investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
OTHER GRAND JURY INDICTMENTS
Latoya Trent, 34, Kansas City, Mo, is charged with one count of theft of public funds and one count of bank fraud. The crimes are alleged to have occurred from 2012 to 2014 in Johnson County, Kan.
The indictment alleges she was paid more than $43,000 in unemployment benefits that she was not qualified to receive.
If convicted, she faces up to 10 years in federal prison and a fine up to $250,000 on the theft charge, and up to 30 years and a fine up to $1 million on the bank fraud count. The U.S. Department of Labor – Office of Inspector General investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
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Samfin Ondieki Ogega, 36, a citizen of Kenya, is charged with attempting to evade a lawful order for his removal from the United States. The crime is alleged to have occurred May 26, 2016, in Sedgwick County, Kan.
If convicted, he faces a penalty of up to four years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
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Anthony Barajas, 24, is charged with escaping from custody at the Grossman Residential Reentry Center in Leavenworth, Kan., on May 6, 2016.
If convicted, he faces a penalty of up to five years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney David Zabel is prosecuting.
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Ronald Hudson, 58, Mulberry, Kan., is charged with one count of theft of public funds and 11 counts of wire fraud. The crimes are alleged to have occurred from 2008 to 2014 in Crawford County, Kan.
The indictment alleges he received Supplemental Security Income payments to which he was not entitled.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000 on the theft charge, and up to 20 years and a fine up to $250,000 on each wire fraud count. The Social Security Administration – Office of Inspector General investigated. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.
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Azar Reed, 56, Kansas City, Kan., is charged with one count of theft of public funds, one count of making a false statement to the Social Security Administration, and 14 counts of mail fraud. The indictment alleges he received benefits to which he was not entitled. The crimes are alleged to have occurred from 2010 to 2013 in Wyandotte County, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000 on the theft charge, up to five years and a fine up to $250,000 on the false statement charge, and up to 20 years and a fine up to $250,000 on each count of mail fraud. The Social Security Administration investigated. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.
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Kevin Wayne Clark, 51, Parsons, Kan., is charged with one count of theft of public funds, three counts of mail fraud and three counts of wire fraud. The indictment alleges he received benefits to which he was not entitled. The crimes are alleged to have occurred in 2014 in Labette County, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000 on the theft charge, up to 20 years and a fine up to $250,000 on each mail fraud count, and up to 20 years and a fine up to $250,000 on each wire fraud count. The Social Security Administration investigated. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Iberia Parish, Louisiana, Sheriff and Two Other Officials Charged with Civil Rights ViolationsRead the Press Release
Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Stephanie A. Finley of the Western District of Louisiana announced today that Iberia Parish, Louisiana, Sheriff Louis Ackal, Lieutenant Colonel Gerald Savoy and former Captain Mark Frederick were charged today in a superseding indictment with civil rights violations arising out of the beatings of two men.
The superseding indictment charges Ackal with one count of conspiracy against rights for conspiring in the spring of 2014 to assault a man who had been arrested on battery charges for allegedly assaulting one of Ackal’s relatives. The superseding indictment also charges Savoy and Frederick with one count of deprivation of rights under color of law for allegedly assaulting another man, a pre-trial detainee at the Iberia Parish Jail (IPJ) in September of 2011. Ackal and Savoy had previously been charged related to beatings of pre-trial detainees at the IPJ on April 29, 2011.
Nine former Iberia Parish Sheriff’s Office employees previously entered guilty pleas in related cases before U.S. District Judge Patricia Minaldi of the Western District of Louisiana. The nine officers are former IPJ Warden Wesley Hayes, former IPJ Assistant Warden Jesse Hayes, former Lieutenant Bret Broussard of the Narcotics Unit, former narcotics agent Wade Bergeron, former narcotics agent Jason Comeaux, former narcotics agent David Hines, former narcotics agent Byron Benjamin Lassalle and former K-9 handlers Robert Burns and Jeremy Hatley.
An indictment is merely an allegation, and the defendants are presumed innocent until proven guilty. If convicted, Ackal, Savoy and Frederick each face a maximum sentence of 10 years in prison for each of the civil rights violations, as well as a potential $250,000 fine for each count.
The case is being investigated by the FBI’s Lafayette Resident Agency. The case is being prosecuted by Senior Litigation Counsel Joseph G. Jarzabek of the Western District of Louisiana and Special Litigation Counsel Mark Blumberg and Trial Attorney Tona Boyd of the Civil Rights Division’s Criminal Section.
Ackal Superseding Indictment
Houston Man and Woman Plead Guilty in Cocaine Smuggling CaseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ISAAC FORD, age 38, and LACHELSEA KIRKSEY, age 27, both residents of Houston, pled guilty today to a Bill of Information charging possession with intent to distribute cocaine.
According to court records, FORD and KIRKSEY were driving separate vehicles in tandem on I-10 West near New Orleans on September 5, 2014, when they were stopped by Louisiana State Police Troopers. Troopers searched KIRKSEY’s Chevrolet Camaro with her consent and discovered four vacuum-sealed bags hidden in the wheel wells of the car, each containing one kilogram of powder cocaine. FORD then admitted that he had rented both of the vehicles, concealed the cocaine in the Camaro, and promised KIRKSEY $2,000 to drive the Camaro to New Orleans, where he intended to deliver the cocaine.
Sentencing of both defendants is scheduled before U.S. District Judge Jane Triche Milazzo on September 8, 2016. FORD faces a sentence of 5 to 40 years imprisonment, and KIRKSEY faces a sentence of up to twenty years.
U.S. Attorney Polite praised the work of the New Orleans Field Division of the Drug Enforcement Administration. Assistant United States Attorney Michael B. Redmann is in charge of the prosecution.
Hobbs Man Pleads Guilty to Illegally Possessing an Unregistered Short-Barreled ShotgunRead the Press Release
ALBUQUERQUE – Quinton Spurlock, 50, of Hobbs, N.M., pled guilty yesterday afternoon in federal court in Las Cruces, N.M., to violating the federal firearms laws by illegally possessing an unregistered short-barreled shotgun.
Spurlock was arrested on April 6, 2016, on a criminal complaint charging him with possession of an unregistered firearm. According to the complaint, on April 15, 2014, Lea County Drug Task Force (LCDTF) agents executed a search warrant at a residence in Hobbs, and found a handgun and shotgun cases inside Spurlock’s vehicle. Further investigations determined that Spurlock had no weapons registered to him and the firearm was also not registered.
During yesterday’s proceedings, Spurlock pled guilty to a felony information charging him with possession of an unregistered short-barreled shotgun. In entering the guilty plea, Spurlock admitted that on April 15, 2014, he was in possession of a shotgun with an overall barrel length of approximately 16 inches that was not registered to him.
At sentencing, Spurlock faces a statutory maximum penalty of ten years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the LCDTF. Assistant U.S. Attorney Terri J. Abernathy is prosecuting the case.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the NM HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Hazleton Man Sentenced to Six Years in Prison for Distributing Crack CocaineRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 56-year-old man who pleaded guilty to distributing crack cocaine in the Hazleton area in September 2013, was sentenced to 72 months in prison yesterday by U.S. District Court Judge Robert D. Mariani in Scranton.
According to United States Attorney Peter Smith, the defendant, Angel Rafael Tejeda-Mejia (also known as “Jose Angeles”), a citizen of the Dominican Republic who resided in the Hazleton area at the time of his arrest, pleaded guilty on November 6, 2015 to distribution of crack cocaine.
Tejeda-Mejia was indicted by a federal grand jury in January 2014, as a result of an investigation by agents of the Federal Bureau of Investigation, the Pennsylvania State Police, and Hazleton Police.
Judge Mariani also ordered the defendant to serve three years on supervised release following his prison sentence. The defendant is also subject to deportation following his prison sentence.
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
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Green Cove Springs Man Pleads Guilty to Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that James Donald Jacola (53, Green Cove Springs) has pleaded guilty in Jacksonville to receiving child pornography over the Internet. He faces a mandatory minimum penalty of not less than 5 years, up to 20 years, in federal prison and a potential life term of supervision. A sentencing hearing has not yet been set.
According to court documents, FBI agents began an online undercover investigation to identify individuals who were using a particular website to access and receive images and videos depicting child pornography over the Internet. The agents determined that Jacola had accessed this website using a particular Internet Protocol (IP) address. Further investigation with the Internet service provider traced the subscriber information to Jacola’s residence in Green Cove Springs, Florida.
On March 10, 2016, law enforcement executed a federal search warrant at Jacola’s residence and seized two computers. Subsequent forensic analyses of the items revealed that Jacola’s computers contained three videos and at least 784 images depicting child pornography. One of the videos had been downloaded the night before the execution of the search warrant and depicted a toddler being sexually abused. Jacola knowingly downloaded the images and videos of child pornography contained on his computer media over the Internet.
This case was investigated by the Federal Bureau of Investigation and the Clay County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Great Falls Man Sentenced for Possession of Child PornRead the Press Release
GREAT FALLS – Cassidy Winters, 29, of Great Falls was sentenced today to 28 months in prison and 10 years’ supervised release for possession of child pornography. Winters will also be required to pay $12,500 in restitution for six victims. Federal District Court Judge Brian M. Morris issued the sentence.
Winters was charged by superseding information on February 17, 2016. In documents filed with the court, Assistant U.S. Attorney Cyndee Peterson stated that, if required to prove its case at trial, the government was prepared to introduce evidence that Winters possessed multiple files containing child pornography between December 2012 and May 2015.
In March 2015, agents for the U.S. Secret Service and the Montana Internet Crimes Against Children Task Force downloaded files from an IP address as part of an online investigation to identify individuals sharing child porn over the Internet using a peer to peer file sharing network. They identified the registered subscriber of the IP address as Winters and obtained a search warrant for his home.
On May 27, 2015, agents served the warrant and seized several computers and digital devices from Winters’ bedroom. The items were forensically analyzed and contained image and video files depicting children engaged in sexually explicit conduct. The agents also recovered search terms connected to the software that indicated Winters had sought out known images and series of child pornography. At the sentencing, a witness testified that Winters had engaged in this criminal conduct for five or six years.
The case was prosecuted by Assistant U.S. Attorney Cyndee Peterson and investigated by the United States Secret Service, the Flathead County Sheriff’s Office, and the Montana Internet Crimes Against Children Task Force.
Framingham Man Sentenced for Child Pornography OffensesRead the Press Release
BOSTON – A Framingham man was sentenced yesterday in the U.S. District Court in Boston in connection with child pornography offenses.
Stephen John Hallissey, 38, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 11 years in prison and 10 years of supervised release. In November 2015, Hallissey pleaded guilty to possession and receipt of child pornography.
Hallissey was arrested and charged in March 2015 after federal agents executed a search warrant at his home and found over 450,000 images of child pornography on his computer. Many of the images depicted very young children being raped and sexually assaulted. Hallissey also admitted to repeatedly sexually assaulting two young girls, aged two and four, in California a number of years ago. In email messages Hallissey sent to other child pornography collectors, Hallissey said: “I LOVE hurting kids with sex (rape).” In another message, Hallissey wrote that his favorite age for a victim was two years old.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today.
The case was investigated by the FBI's Boston Child Exploitation Task Force (CETF), which is comprised of members from the FBI, the Boston Police Department’s Child Abuse and Human Trafficking Units, the Massachusetts State Police, the Massachusetts Department of Correction, the Arlington, Malden and Norwood Police Departments, and the U.S. Postal Inspection Service. The case was prosecuted by Assistant U.S. Attorney David Tobin of Ortiz’s Major Crimes Unit.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and the Department of Justice’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/
Former Tech Products Operations Manager Pleads Guilty to Embezzling SchemeRead the Press Release
COLUMBUS, Ohio – Cheryl L. Emerson-Chase, 52, of Powell, pleaded guilty in U.S. District Court to one count each of wire fraud and money laundering.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the plea entered into before U.S. District Magistrate Judge Smith Terence P. Kemp.
According to the statement of facts presented in this case, Emerson-Chase was employed as the operations manager for PCM, Inc. (formerly known as SARCOM, Inc.), a direct marketer of technology products, services and solutions to businesses, governments, educational institutions and individual consumers.
Emerson-Chase was assigned primarily PCM’s account for Nationwide Mutual Insurance Company and handled the day-to-day operational sales relationship with Nationwide.
The defendant began to steal laptops and tablets from PCM that were intended for delivery to Nationwide and provided fictitious purchase orders to PCM’s employees, instructing them to create false internal sales orders in PCM’s computer system. The two companies identified at least 93 fake purchase orders created in connection with the scheme.
Emerson-Chase then used the ordered computers for her own use or the use of friends and family members, sold them directly to third parties, or delivered them to an associate to sell to third parties.
In total, Emerson-Chase stole more than 600 items of computer hardware having an aggregate value of nearly $597,000.
Wire fraud and money laundering are each crimes punishable by up to 20 years in prison.
Acting U.S. Attorney Glassman commended the investigation of this case by the FBI and Assistant United States Attorney Jessica H. Kim, who is representing the United States in this case.
Former Tech Products Operations Manager Pleads Guilty to Embezzling SchemeRead the Press Release
COLUMBUS, Ohio – Cheryl L. Emerson-Chase, 52, of Powell, pleaded guilty in U.S. District Court to one count each of wire fraud and money laundering.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the plea entered into before U.S. District Magistrate Judge Smith Terence P. Kemp.
According to the statement of facts presented in this case, Emerson-Chase was employed as the operations manager for PCM, Inc. (formerly known as SARCOM, Inc.), a direct marketer of technology products, services and solutions to businesses, governments, educational institutions and individual consumers.
Emerson-Chase was assigned primarily PCM’s account for Nationwide Mutual Insurance Company and handled the day-to-day operational sales relationship with Nationwide.
The defendant began to steal laptops and tablets from PCM that were intended for delivery to Nationwide and provided fictitious purchase orders to PCM’s employees, instructing them to create false internal sales orders in PCM’s computer system. The two companies identified at least 93 fake purchase orders created in connection with the scheme.
Emerson-Chase then used the ordered computers for her own use or the use of friends and family members, sold them directly to third parties, or delivered them to an associate to sell to third parties.
In total, Emerson-Chase stole more than 600 items of computer hardware having an aggregate value of nearly $597,000.
Wire fraud and money laundering are each crimes punishable by up to 20 years in prison.
Acting U.S. Attorney Glassman commended the investigation of this case by the FBI and Assistant United States Attorney Jessica H. Kim, who is representing the United States in this case.
Former Pharmaceutical Company Employees Arrested for Participating in Fentanyl Kickback SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Scott Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s (“HHS-OIG”) New York Region, announced that JONATHAN ROPER, a former District Manager at a pharmaceutical company (“Pharma Company-1”), and FERNANDO SERRANO, a former sales representative at Pharma Company-1, were charged today with violating the Anti-Kickback Statute in connection with their participation in a scheme to pay doctors thousands of dollars to participate in sham educational programs in order to induce the doctors to prescribe millions of dollars’ worth of a fentanyl-based sublingual spray manufactured by Pharma Company-1 (the “Fentanyl Spray”). ROPER was arrested this morning by FBI agents on Long Island, and SERRANO was arrested this morning by FBI agents in New Jersey. They will be presented before U.S. Magistrate Judge Kevin N. Fox in Manhattan this afternoon.
Manhattan U.S. Attorney Preet Bharara said: “Fentanyl is an incredibly dangerous and highly addictive drug that is finding its way into, and destroying, too many lives in our communities. Because of its deadly power, its legitimate prescription faces significant and severe restrictions. Yet, as alleged, former drug company employees Jonathan Roper and Fernando Serrano corruptly induced doctors to prescribe millions of dollars’ worth of Fentanyl through thousands of dollars in kickbacks disguised as phony educational programs. As alleged, Roper and Serrano helped feed this devastating surge of opioid addictions by tapping into another age-old addiction, greed.”
FBI Assistant Director Diego Rodriguez said: “This case should be something the medical industry and the general public should pay close attention to because it’s one of the reasons we’re experiencing an epidemic of overdoses and deaths in this country. Not only did the defendants in this case allegedly bully sales reps into pushing this highly addictive drug, they paid doctors to prescribe it to patients. The more prescriptions written, the more money the doctors made. Instead of seeing a way to help people who are dealing with extreme pain, they allegedly saw a huge payday that potentially put people’s lives in danger.”
HHS OIG Special Agent in Charge Scott J. Lampert said: “We expect drug company representatives to be part of the prescription drug abuse solution – not part of the problem, as alleged in this case. We will continue to investigate kickback arrangements, which can undermine impartial medical decision-making and worsen the overuse of opioids in this country.”
According to allegations in the Complaints unsealed today in Manhattan federal court:[1]
Fentanyl is a synthetic opioid that is classified as a Schedule II controlled substance and is approximately 100 times more potent than morphine as an analgesic. Because of the risk of misuse, abuse, and addiction associated with prescription products like the Fentanyl Spray, only doctors who have enrolled in a mandated U.S. Food and Drug Administration (“FDA”) program and completed necessary training are permitted to prescribe the Fentanyl Spray.
Pharma Company-1’s Fentanyl Spray was approved by the FDA in or about January 2012, solely for the management of breakthrough pain in cancer patients who are already receiving and who are tolerant to opioid therapy for their underlying persistent pain. The Fentanyl Spray is the only FDA-approved product that Pharma Company-1 currently has on the market. Pharma Company-1 reported approximately $330 million in net revenue from the Fentanyl Spray in 2015.
In order to market the Fentanyl Spray, Pharma Company-1 established a program purportedly to educate healthcare professionals about the Fentanyl Spray (the “Speaker Program”). Doctors selected as speakers at these Speaker Programs by Pharma Company-1 (“Speakers”) were compensated for purportedly providing educational presentations to a peer-level audience of healthcare professionals using a preapproved PowerPoint presentation. In reality, however, many of the Speaker Programs that ROPER and SERRANO organized and attended were predominantly social gatherings at high-end restaurants in Manhattan that involved no education regarding the Fentanyl Spray and no slide presentation at all. Many of the Speaker Programs also lacked an appropriate audience of healthcare professionals. In order to make these Speaker Programs appear legitimate, sign-in sheets for these Speaker Programs – including Speaker Programs organized by ROPER and SERRANO – were frequently forged by adding the names and signatures of doctors to sign-in sheets who had not, in fact, been present at the Speaker Program. Repeat attendees were also commonplace at Speaker Programs organized by SERRANO. In numerous instances, all of the attendees at Speaker Programs organized by SERRANO had previously attended Pharma Company-1 Speaker Programs. Because all legitimate Speaker Programs required use of the same preapproved slide presentation, there was no educational purpose for healthcare professionals to attend Speaker Programs on a repeated basis.
While employed at Pharma Company-1, ROPER and SERRANO were each involved in organizing Speaker Programs for two Manhattan-based doctors (“Doctor-1” and “Doctor-2”), among other doctors. Doctor-1 and Doctor-2 were frequently the purported Speakers at sham Speaker Programs that were social in nature and lacked an educational component. Doctor-1 and Doctor-2 were highly compensated by Pharma Company-1 for acting as Speakers. In 2014 alone, Doctor-1 and Doctor-2 received over $147,000 and $112,000, respectively, in Speaker Program fees. During this same time period, Doctor-1 and Doctor-2 were also two of the largest prescribers of the Fentanyl Spray in the United States. In 2014 alone, Doctor-1 and Doctor-2 prescribed, respectively, over $3 million and over $2 million worth of the Fentanyl Spray that was reimbursed by various private insurance companies, and over $1 million worth of the Fentanyl Spray that was reimbursed by Medicare.
It was well understood among Pharma Company-1 employees that doctors were selected as Speakers in order to induce these doctors to prescribe large quantities of the Fentanyl Spray, and ROPER explicitly instructed the sales force he supervised that this was the case. For example, on or about May 6, 2014, ROPER sent an email to certain sales representatives in which he expressed displeasure that certain doctors who were Speakers were not prescribing sufficient quantities of the Fentanyl Spray:
Where is the ROI [Return on Investment]??!!! All prescribers from this team that are on this list are [Pharma Company-1] speakers. We invest a lot of time, $, blood, sweat, and tears on “our guys” and help spreading the word on treating BTCP [breakthrough cancer pain]. We hire only the best of the best to be apart [sic] of our speaker bureau and dropping script counts is what we get in return?
. . .
This is a slap in the face to all of you and is a good indication as to why NONE of you are climbing in the rankings this quarter. DO NOT be afraid to set your expectations and make them crystal clear as to what they are before, during, and after HIRING these priviliged [sic] set of docs who are fortunate enough to be a part of the best speaker bureau in the market in the world of BTCP [breakthrough cancer pain]. Please handle this immediately as funding will not be given out to anymore [sic] “let downs” in the future. Thanks. $$$$
ROPER decided which doctors would be allocated Speaker Programs in the sales territory that included New York City. ROPER instructed one sales representative that a Speaker would receive fewer Speaker Programs in the future because ROPER was not pleased with the quantity of Fentanyl Spray prescriptions this doctor was writing. ROPER informed the sales representative that he wanted to hit the doctor “in his pocket” in order to try to cause the doctor to start writing more Fentanyl Spray prescriptions. ROPER also once instructed this same sales representative to offer cash to a medical professional in order to induce this medical professional to prescribe the Fentanyl Spray.
* * *
ROPER, 37, of Commack, New York, and SERRANO, 30, of Manalapan, New Jersey, are each charged with one count of conspiracy to violate the Anti-Kickback Statute and one count of violating the Anti-Kickback Statute. Each of the two counts carries a maximum term of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
The charges contained in the Complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Mr. Bharara praised the investigative work of the FBI and the HHS-OIG.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Noah Solowiejczyk is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaints and the description of the Complaints set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Former Employee of the Luzerne County Correctional Facility to Plead Guilty to Extortion and A Firearms ChargeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Louis Elmy, age 52, of Wilkes-Barre, has been charged with extortion and a firearms violation.
According to United States Attorney Peter Smith, Elmy is charged in a Criminal Information, filed today in the United States District Court in Scranton, with extortion and possession of a firearm in furtherance of a drug trafficking crime, specifically, the possession of and intent to distribute crack cocaine.
The Criminal Information further alleges that, while acting in his official capacity as the work release counselor at the Luzerne County Correctional Facility, Elmy extorted money and other items of value from work release inmates in exchange for giving them special privileges and unauthorized furloughs.
It is alleged that, to have documentation that appeared legitimate, Elmy created court orders, cut and pasted a Luzerne County Judge’s signature from an older order onto the fraudulent order, and then photocopied the document for the file. Elmy allegedly engaged in the conduct between November 2013 and February 2016.
Elmy was arrested in February 2016 on a criminal complaint relating to the firearms charge and was released with conditions of supervision.
The Criminal Information was filed pursuant to a plea agreement with Elmy, which is subject to approval by the court. No date has been scheduled as yet for the entry of Elmy’s guilty plea. Elmy was employed by Luzerne County for approximately 20 years, including work as a corrections officer at the correctional facility prior to being a work release counselor. Elmy also served as a member and president of the Wilkes-Barre Area School Board prior to the time period when the alleged criminal conduct occurred.
The charges are the result of an investigation by the Scranton Office of the Federal Bureau of Investigation. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute for the extortion charge is 20 years’ imprisonment. The firearms charge carries a maximum term of life, with a mandatory minimum sentence of five years’ imprisonment. Each charge also carries a fine of $250,000 and a term of supervised release following any period of incarceration. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Dea Supervisor and Employee Convicted of Making False Statements in National Security FormsRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, announced today that DAVID POLOS, formerly an Assistant Special Agent-in-Charge with the Drug Enforcement Administration (“DEA”), and GLEN GLOVER, a DEA Information Technology Specialist, were convicted of conspiracy and making false statements to the government in national security forms regarding, among other things, their employment at an adult entertainment establishment. POLOS and GLOVER were convicted after a two-week trial before U.S. District Judge Paul G. Gardephe.
Manhattan U.S. Attorney Bharara said: “David Polos and Glen Glover had important and sensitive law enforcement jobs that required honest answers to national security clearance forms. But as a unanimous jury found today, Polos and Glover lied on those national security forms, concealing their secret jobs owning and operating an adult entertainment club. Their actions were not just a betrayal of their oaths as DEA employees, but as the jury found, a violation of federal law.”
According to the allegations in the Complaint and evidence established at trial:
POLOS, who supervised the Organized Crime and Drug Enforcement Strike Force, and GLOVER, an expert in sensitive law enforcement techniques who assisted narco-trafficking investigations domestically and abroad, failed to disclose their employment at, and ownership interests in, an adult entertainment establishment (the “Club”) in Northern New Jersey in connection with a background check to determine their suitability as employees of a federal law enforcement agency with access to classified information. POLOS also failed to disclose his relationship with a dancer at the Club in response to a question about his relationships with foreign nationals. The national security forms POLOS and GLOVER submitted in connection with the background check required disclosure of outside employment in part due to concerns attendant to certain types of employment, including proximity to crime and persons involved in crime and the risk of employee blackmail.
GLOVER and POLOS submitted national security forms in August and September 2011, respectively, which stated, among other things, that they did not have employment other than their DEA jobs within the previous seven years, and that POLOS had not had any close, continuing contact with foreign nationals during that same period of time. In fact, GLOVER was the part owner of, and POLOS had a convertible ownership interest in, the Club. In addition, POLOS had, at the time he submitted his form, begun an intimate relationship with a foreign national from Brazil who worked as a dancer at the Club. POLOS and GLOVER had been warned by others, including Club employees, that at times drug use, drug sales, and illicit sexual activity appeared to be taking place at and outside the Club, which also operated as an all-cash business and did not pay required taxes during its first year in operation.
GLOVER and POLOS both worked regular managerial shifts at the Club in the months prior to and following their submission of the national security forms. They also hired, fired, and paid bartenders, dancers, and bouncers; supervised the Club’s renovation, advertised the Club in local periodicals; manned a back office available only to employees; remotely monitored video camera feed from the Club when not present; and generally tended to various Club-related matters. GLOVER and POLOS at times attended to Club matters during DEA work hours.
Had POLOS and GLOVER truthfully disclosed their employment at the Club, their ownership and involvement in the affairs of the Club would have been investigated as part of their background checks, and the security clearances that they were required to maintain as federal law enforcement employees likely would have been denied.
* * *
POLOS, 51, of West Nyack, New York, and GLOVER, 45, of Lyndhurst, New Jersey, were convicted of one count of conspiracy to make false statements, and were each convicted of one count of making false statements, in connection with their work at the Club. POLOS was convicted of an additional count of false statements in connection with his failure to disclose his relationship with a foreign national. Each count carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation and the Department of Justice Office of the Inspector General. He also thanked the Internal Revenue Service-Criminal Investigation Division for its assistance.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Martin S. Bell, Andrew D. Goldstein, and Paul M. Monteleoni are in charge of the prosecution.
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Former Davenport Tax Preparer Sentenced to Thirty-Three Months in Prison and Ordered to Pay $115,841.84 in RestitutionRead the Press Release
DAVENPORT, IA – On June 8, 2016, Gregory Scott Alcala, 44, of Davenport, Iowa, was sentenced by Senior United States District Court Judge James E. Gritzner to 33 months in federal prison for each count of preparing and presenting a false tax return, wire fraud, and making a bomb threat in and affecting interstate commerce, announced Acting United States Attorney Kevin E. VanderSchel. The sentences were ordered to be served concurrently, that is, at the same time. Alcala was ordered to serve three years of supervised release following his prison term, pay $300 to the Crime Victims’ Fund, and pay a total of $115,841.84 in restitution to 71 of his victims.
Alcala pled guilty to the crimes on February 24, 2016. According to the plea agreement, in about February 2010, Alcala began operating Alcala Tax Service in Davenport and prepared and filed federal tax returns on behalf of taxpayers. Beginning by at least February 18, 2012, and continuing to at least March 14, 2014, Alcala devised a scheme to defraud by filing altered tax returns. Specifically, Alcala prepared tax returns on behalf of taxpayers, provided a copy of the prepared return to the taxpayers, and then represented to the taxpayers that Alcala had filed that return with the Internal Revenue Service on the taxpayer’s behalf. In reality, Alcala did not file that version but instead—without the knowledge of and authority from the taxpayer—materially altered the taxpayer’s return to create a larger tax refund than the one reflected in the copy of the return Alcala had provided to the taxpayer. Alcala then filed the unauthorized version of the taxpayer’s return and—without the knowledge of and authority from the taxpayer—directed the additional refund amount to Alcala’s own bank account. During tax years 2009 through 2014, Alcala prepared at least 164 tax returns that included false or fraudulent information and directed at least a portion of 159 of those tax refunds to his own bank account without the knowledge of or authority from the taxpayer.
Additionally, on December 26, 2013, a switchboard operator for Badger Mutual Insurance, in Milwaukee, Wisconsin, received a telephone call from Alcala in Davenport. During the call, Alcala threatened the operator by stating he was going to send her a bomb. Alcala knew his communication to the operator would be viewed as threatening.
This matter was investigated by the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Florida and Mississippi Men Sentenced for Bribing Public Officials at Georgia Military BaseRead the Press Release
A former agent and a former driver for a large national trucking company were sentenced prison for paying bribes to officials at the Marine Corps Logistics Base (MCLB) in Albany, Georgia, in order to obtain lucrative freight-hauling business, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney G.F. Peterman III of the Middle District of Georgia.
Ivan Dwight Brannan, 61, of Jupiter, Florida, and David R. Nelson, 55, of Lucedale, Mississippi, were sentenced to 48 months and 24 months in prison, respectively, by U.S. District Judge W. Louis Sands of the Middle District of Georgia, who also ordered each man to serve three years of supervised release. Brannan was additionally ordered to forfeit $120,000 and Nelson was ordered to pay a $10,000 fine.
In connection with their guilty pleas, Brannan, the former agent, and Nelson, the former driver, admitted that from 2006 to 2012, they provided cash and other items of value to Mitchell Potts, a former traffic office supervisor for the Defense Logistics Agency (DLA) at MCLB-Albany, and Jeffrey Philpot, another official in the DLA traffic office, to ensure that their trucking company client was awarded millions of dollars in business at MCLB-Albany. From 2006 to 2012, Brannan and Nelson paid at least $120,000 in bribes to Potts and Philpot.
Potts and Philpot both previously pleaded guilty to two counts of bribery of a public official for their roles in this scheme and another similar one. Potts and Philpot were previously sentenced to 10 years and seven years in prison, respectively.
The U.S. Army Criminal Investigation Command, the Naval Criminal Investigative Service and the Defense Criminal Investigative Service investigated the case. Trial Attorney John Keller of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia prosecuted the case.
Florida and Mississippi Men Sentenced for Bribing Public Officials at Georgia Military BaseRead the Press Release
WASHINGTON – A former agent and a former driver for a large national trucking company were sentenced prison for paying bribes to officials at the Marine Corps Logistics Base (MCLB) in Albany, Georgia, in order to obtain lucrative freight-hauling business, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney G.F. Peterman III of the Middle District of Georgia.
Ivan Dwight Brannan, 61, of Jupiter, Florida, and David R. Nelson, 55, of Lucedale, Mississippi, were sentenced to 48 months and 24 months in prison, respectively, by U.S. District Judge W. Louis Sands of the Middle District of Georgia, who also ordered each man to serve three years of supervised release. Brannan was additionally ordered to forfeit $120,000 and Nelson was ordered to pay a $10,000 fine.
In connection with their guilty pleas, Brannan, the former agent, and Nelson, the former driver, admitted that from 2006 to 2012, they provided cash and other items of value to Mitchell Potts, a former traffic office supervisor for the Defense Logistics Agency (DLA) at MCLB-Albany, and Jeffrey Philpot, another official in the DLA traffic office, to ensure that their trucking company client was awarded millions of dollars in business at MCLB-Albany. From 2006 to 2012, Brannan and Nelson paid at least $120,000 in bribes to Potts and Philpot.
Potts and Philpot both previously pleaded guilty to two counts of bribery of a public official for their roles in this scheme and another similar one. Potts and Philpot were previously sentenced to 10 years and seven years in prison, respectively.
The U.S. Army Criminal Investigation Command, the Naval Criminal Investigative Service and the Defense Criminal Investigative Service investigated the case. Trial Attorney John Keller of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia prosecuted the case.
Felon from Eddy County Pleads Guilty to Unlawful Possession of FirearmRead the Press Release
ALBUQUERQUE – Steven Fryer, 39, of Atoka, N.M., pled guilty today in federal court in Las Cruces, N.M., to being a felon in possession of a firearm. Under the terms of his plea agreement, Fryer will be sentenced to 63 months in federal prison followed by a term of supervised release to be determined by the court.
Fryer was arrested on Feb. 17, 2016, on a criminal complaint charging him with being a felon in possession of a firearm. According to the complaint, Eddy County Sheriff’s Office deputies arrested Fryer on Oct. 29, 2014, after finding him in possession of a firearm following a short pursuit and standoff with the deputies. Fryer was prohibited from possessing firearms or ammunition because of his prior convictions for burglary in an Arizona court.
During today’s proceedings, Fryer pled guilty to a felony information charging him with being a felon in possession of a firearm. In entering the guilty plea, Fryer admitted that on Oct. 29, 2014, in Eddy County, N.M., he was in possession of a shotgun. He further admitted that he was a convicted felon and was therefore prohibited from possessing firearms.
Fryer remains detained pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Eddy County Sheriff’s Office and the Pecos Valley Drug Task Force. Assistant U.S. Attorney Maria Y. Armijo is prosecuting the case.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Federal Jury Convicts Former Army Contracting Official for Filing False Tax ReturnRead the Press Release
BIRMINGHAM – A federal jury on Wednesday convicted a former contracting official for the U.S. Army at Redstone Arsenal in Huntsville for filing a false income tax return, announced U.S. Attorney Joyce White Vance and Internal Revenue Service Criminal Investigation Special Agent in Command Veronica Hyman-Pillot.
Following two and a half days of testimony before U.S. District Judge Madeline Hughes Haikala, the jury convicted WILLIS EPPS, 61, on one count of filing a false tax return.
Before Epps’ indictment in January 2013, he was a high-level contracting official assigned to Army Contracting Command-Redstone. Beginning in 2010, Epps provided contracting support to the Army’s Non-Standard Rotary Wing Aircraft office and was named its director of contracts. He retired in January 2013.
The jury convicted Epps of willfully filing an IRS tax return for 2013 that he knew was false. According to the evidence, Epps knowingly omitted $56,250 in income when he filed a return stating his joint taxable income for 2013 was $182,541.
The facts leading to the IRS-CI investigation of Epps arose during a separate multi-agency investigation into NSRWA. Those investigating agencies were the Special Inspector General for Afghanistan Reconstruction, Defense Criminal Investigative Service, U.S. Army Criminal Investigation Command and the FBI.
Assistant U.S. Attorneys Ramona C. Albin and Henry B. Cornelius Jr. prosecuted the case.
Fall River Man Indicted for EscapeRead the Press Release
BOSTON – A federal inmate was charged today in U.S. District Court in Boston in connection with escaping from Coolidge House, a federal halfway house in Boston.
Jason Barreto, 30, was indicted today on one count of escape from federal custody. In May 2016, Barreto was charged in a criminal complaint.
According to a previously filed complaint, in September 2011, Barreto was convicted in the U.S. District Court in Rhode Island of one count of conspiracy to distribute oxycodone and was sentenced to 70 months in prison. On May 21, 2015, Barreto was transferred from the U.S. Penitentiary Big Sandy in Kentucky, to Coolidge House Residential Reentry Center in Boston to serve the remainder of his sentence. Barreto was scheduled to be released on Nov. 1, 2015.
On Sept. 17, 2015, following an incident at Coolidge House, it is alleged that Barreto walked out of the facility without authorization and did not return. On April 8, 2016, after receiving information regarding Barreto’s location, the U.S. Marshals Service arrested Barreto at Harrah’s Hotel and Casino in Atlantic City, New Jersey.
The charging statute provides a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and U.S. Marshal John Gibbons of the District of Massachusetts made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Nicholas Soivilien of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Eastern panhandle man pleads guilty to methamphetamine traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Arturo Jimenez De Los Santos, 33, of Kearneysville, West Virginia, pled guilty today to methamphetamine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
De Los Santos was discovered in possession of crystal methamphetamine in October 2015 in Jefferson County, West Virginia. He pled guilty today to one count of “Possession with Intent to Distribute Methamphetamine.” He faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Special Assistant U.S. Attorney Lara K. Omps-Botteicher, also of the West Virginia Attorney General’s Office, prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
East Hartford Man Sentenced to 71 Months for Arson, Insurance Fraud, Gambling and Extortion OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHN A. BARILE, 52, of East Hartford, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 71 months of imprisonment, followed by three years of supervised release, for arson, insurance fraud, gambling and extortion offenses.
According to court documents and statements made in court, BARILE was a co-owner of Enzo’s Restaurant and Lounge, which was located on Main Street in Middletown. By 2009, Enzo’s was facing financial difficulty, and BARILE began planning to cause a fire at Enzo’s in order to collect the insurance proceeds. In November 2009, BARILE informed his co-owner about the plan and began consulting with others on how to start the fire to make it look like an accident.
On the evening of January 9, 2010, BARILE met and participated in conversations with others at Enzo’s about causing the fire the next morning. BARILE placed greasy rags in the kitchen around the fryolators and applied grease to the kitchen walls. Later in the evening, after the restaurant had closed, a fire began in the kitchen. BARILE was aware that a fire was burning in the kitchen. Rather than extinguishing the fire, BARILE transferred the fire to one or more of the greasy rags. BARILE intentionally allowed the fire to burn and purposefully did not alert the fire department or anyone else about the fire. BARILE then left the restaurant intending for the fire to damage or destroy the restaurant.
The co-owner was inside Enzo’s at the time of the fire, and two individuals were inside a restaurant next door. The Middletown Fire Department arrived a short time later, forced entry, rescued the co-owner and put out the fire. By the time the fire was put out, the fire had already caused significant damage to the restaurant.
After the fire, BARILE sought payment from an insurance company for losses suffered as a result of the fire, and concealed his role in causing the fire from the insurance company and law enforcement. The insurance company ultimately paid $189,787.69 to BARILE to settle the insurance claims related to the fire.
In addition, from at least 2010 through approximately January 2014, BARILE also conducted an illegal sports-related bookmaking operation. This illegal gambling business involved at least five other people including sub-bookmakers. During this time period, BARILE did not have any other employment or source of income, and the illegal sports-related bookmaking business was BARILE’s main source of income. At times, the gambling business grossed more than $2,000 per day.
One bettor who repeatedly placed bets with BARILE’s gambling business eventually owed him approximately $50,000 from unpaid gambling losses. On November 8, 2011, BARILE, along with two associates, met the bettor at a parking lot in Hartford. At the meeting, BARILE tased the bettor with a Taser or similar device in order to punish him for not paying his debts and enforce collection of the payment.
As part of his sentence, BARILE was ordered to pay restitution to the insurance company in the amount of $189,787.69. BARILE also was ordered to forfeit $165,287.69 that the government seized from BARILE’s bank account in November 2012 pursuant to a civil seizure warrant.
On February 4, 2016, BARILE pleaded guilty to one count of arson, one count of mail fraud, one count of conducting an illegal gambling business and one count of collecting an extension of credit by extortionate means.
BARILE, who is released on a $350,000 bond and under electronic monitoring, was ordered to report to prison on July 12, 2016.
According to court documents, BARILE was previously convicted in 1997 for conspiring to violate the federal Racketeer Influenced and Corrupt Organizations Act (RICO) and contempt of court stemming from his involvement in an organized crime-controlled illegal gambling business.
This matter was investigated by the Federal Bureau of Investigation, with the assistance of the Middletown Police Department and the Connecticut State Police. This case was prosecuted by Assistant U.S. Attorneys Anastasia E. King and Neeraj N. Patel.
Eagle Pass Man Sentenced to 18+ Years Imprisonment on Federal Drug ChargeRead the Press Release
In Del Rio this afternoon, 36-year-old Francisco Balderas (aka “Frank”, “El Profe”) was sentenced to 220 months in federal prison for his role in a cocaine distribution conspiracy operating in the Eagle Pass, TX, area, stated United States Attorney Richard L. Durbin, Jr., DEA Special Agent in Charge Joseph M. Arabit, Houston Division, and Homeland Security Investigations Special Agent in Charge Shane Folden, San Antonio Division.
In addition to the prison term, United States District Judge Alia Moses ordered that Balderas pay a $10,000 fine and be placed on supervised release for a period of five years after completing his prison term.
On January 9, 2014, Balderas pleaded guilty to one count of conspiracy to possess a controlled substance with intent to deliver. By pleading guilty, Balderas admitted that he supplied cocaine to other dealers in Eagle Pass from November 2011 until October 2013. During that time, undercover agents purchased approximately 2.6 kilograms of cocaine from Balderas.
Balderas has remained in federal custody since being arrested by federal authorities on October 8, 2013.
The case resulted from a joint investigation by the Drug Enforcement Administration (DEA) and Homeland Security Investigations (HSI). The Texas Department of Public Safety - Criminal Investigations Division, Maverick County Sheriff’s Office and Eagle Pass Police Department also assisted in the investigation. This case was prosecuted by Assistant United States Attorneys Ralph Paradiso and Mike Galdo.
Eagle Butte Man Sentenced for Tampering with a Victim or WitnessRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Tampering with a Victim or Witness was sentenced on June 6, 2016, by U.S. District Judge Roberto A. Lange.
William Willard Miner, age 57, was sentenced to a year and a day in custody, 18 months of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Miner was indicted by a federal grand jury on September 9, 2015. He pled guilty on March 22, 2016.
The conviction stemmed from an incident on June 13, 2015, when Miner, who was at some friends’ house in the White Horse Community, drinking and socializing with them. At some point, Miner and another friend went to Mobridge to get more alcohol. When they returned, the victim was at the residence and Miner walked up to him and threatened him. Miner is related to Sage Miner, who assaulted the victim by hitting and kicking him several times in a separate federal matter. Sage Miner was sentenced to one year and a day in custody.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Miner was immediately turned over to the custody of the U.S. Marshals Service.
Dunn Man Sentenced to 77 Months for Being A Felon in Possession of A FirearmRead the Press Release
RALEIGH – The United States Attorney’s Office announced that today in federal court, Senior United States District Judge W. Earl Britt sentenced TAUREAN RAHSAAN DAVIS, 27, of Dunn to 77 months imprisonment, followed by 3 years of supervised release.
DAVIS was named in an Indictment filed on June 10, 2014, charging him with being a Felon in Possession of a Firearm and Ammunition. On November 3, 2014, DAVIS pled guilty to the charge.
On February 27, 2014, an officer with the Dunn Police Department, conducted a traffic stop on a vehicle driven by DAVIS. The officer approached the passenger side of the vehicle and observed a box of bullets under DAVIS’ leg. The officer recognized DAVIS as a felon. DAVIS indicated that there was a jar of marijuana under the driver’s seat of the vehicle. The officer seized a jar containing 36 baggies of marijuana (29.99 grams of marijuana) and a .22 caliber pistol loaded with 6 rounds of ammunition adjacent to the marijuana from under the driver’s seat, as well as a box of ammunition and a digital scale.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Dunn Police Department, and the Bureau of Alcohol Tobacco Firearms and Explosives (ATF). Assistant United States Attorney S. Katherine Burnette prosecuted the case for the government.
Delaware Business Owner Sentenced to Prison Term for Skimming Payroll TaxesRead the Press Release
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Keith D. Clarke, age 53, of Delmar, Maryland, was sentenced yesterday by the Honorable Leonard P. Stark, United States District Judge for the District of Delaware, to a prison term of two months and full restitution. The defendant pleaded guilty to failure to account for and pay over employment taxes, in December 2015.
According to Court filings and statements during the plea hearing, the defendant operated a plumbing and air conditioning business in Laurel, Delaware, named Clark Service Group, LLC, from at least 2000 through early 2012. From the Fourth Quarter of 2009, through the Fourth Quarter of 2011, the defendant withheld at least $131,424.09 in payroll taxes from his employees’ paychecks, but he did not pay those funds over to the Internal Revenue Service. Also, the defendant failed to pay to the IRS the company own portion of the Payroll Taxes, in the amount of at least $81,192.44, from the Fourth Quarter of 2009, through the Fourth Quarter of 2011.
At the same time, the defendant withheld retirement plan contributions from his employee’s paychecks, and he failed to remit at least $23,670.00 of these contributions to the retirement plan provider. Moreover, the defendant failed to remit the Company’s agreed portion of the contributions to the provider, in the amount of $926.70.
Meanwhile, the defendant used company funds to support his personal lifestyle. For example, the defendant spent nearly $160,000 in company funds to pay for golf excursions, vacations, retail purchases, groceries, dining, and other expenditures of a personal nature. The defendant failed to file his own personal federal income tax returns for the years 2009, 2010, and 2011.
U.S. Attorney Oberly stated, “Although the Government sought a sentence of 16 months incarceration, the imposition of a prison term of two months, coupled with restitution and the impact of a felony conviction, will hopefully serve as a deterrent to others who ignore their obligations to properly account for payroll taxes and retirement plan contributions, so as to support a more lavish lifestyle. My office is committed to prosecuting those who want to cheat the IRS and those who fail to fulfil their tax obligations.”
“Business owners looking to enrich themselves at the expense of their employees by not remitting payroll taxes will be held accountable. The programs funded by employment taxes are essential to the American workforce and the Internal Revenue Service, Criminal Investigation has placed a high priority on employment tax compliance.” said Special Agent in Charge, Akeia Conner.
This case is the result of an investigation by the Internal Revenue Service, Criminal Investigation, and the U.S. Department of Labor, Office of Inspector General. This case was prosecuted by Assistant United States Attorney Lauren Paxton.
Corpus Christi Man Convicted of Kidnapping ChildRead the Press Release
CORPUS CHRISTI, Texas – A 20-year-old local man has admitted he kidnapped a six-year-old girl from her Corpus Christi home and intended to take her to Arizona, announced U.S. Attorney Kenneth Magidson.
Austin Carlin, of Corpus Christi, abducted the young child from her residence in the early morning hours of Feb. 22, 2015. Carlin stole a vehicle and drove out of Corpus Christi with the child. The Corpus Christi Police Department (CCPD) immediately disseminated an Amber Alert in pursuit of Carlin and the child. As part of the alert, a Child Abduction Response Team was deployed with the assistance of FBI.
State troopers pulled Carlin over as he drove on Interstate 10 approximately 350 miles west of San Antonio. He was arrested and authorities were able to successfully recover the child and return her to her family. Carlin admitted that his destination was Arizona.
U.S. District Judge Nelva Gonzales Ramos accepted the guilty plea today and set sentencing for Sept. 22, 2016. At that time, Carlin faces a minimum of 20 years and up to life in federal prison and a possible $250,000 maximum fine.
Carlin has been and will remain in custody pending his sentencing hearing.
The charges are the result of the investigative efforts of the FBI, CCPD and the Texas Department of Public Safety. Assistant U.S. Attorney Hugo R. Martinez and Brittany Jensen are prosecuting the case.
Connecticut Man Found Guilty in Multimillion Dollar Stranger-Originated Life Insurance SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Jonathan Mellone, Acting Special Agent-in-Charge, U.S. Department of Labor – Office of Inspector General, Susan A. Hensley, Regional Director, U.S. Department of Labor – Employee Benefits Security Administration’s Boston Office, and Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP), today announced that U.S. District Judge Robert N. Chatigny has found DANIEL CARPENTER, 62, formerly of Simsbury, guilty of 57 counts of conspiracy, mail and wire fraud, money laundering and illegal monetary transaction offenses stemming from a scheme to defraud insurance companies into issuing insurance policies on the lives of elderly people for the benefit of the defendant and other investors, also known as a stranger-originated life insurance scheme.
The verdict follows a five-week long bench trial before Judge Chatigny in Hartford that began on February 16, 2016 and concluded on March 21, 2016. CARPENTER had waived his right to a trial by jury.
According to the evidence at trial, CARPENTER controlled a series of companies, based in Simsbury and Stamford, that developed the Charter Oak Trust (the “Trust”), an employee welfare benefit plan and trust whose primary objective was to secure insurance policies on the lives of elderly individuals that could be held by CARPENTER’s companies as investments, or resold on the life settlement market, which is a third-party market for life insurance policies. Typically, insurance agents working with, for, or on behalf of CARPENTER and his companies approached elderly individuals (the “Straw Insureds”). The agents promised to provide the Straw Insureds with free life insurance for two years, and, at the end of the two years, would attempt to sell the policies on the life settlement market. In most cases, the agents promised the Straw Insureds that they would receive a portion of any sale proceeds.
The evidence at trial established that CARPENTER, working with insurance agents, caused to be submitted to several insurance providers numerous insurance applications that contained several material misrepresentations, including falsely denying that third-parties were paying the premiums for the insurance, falsely denying discussions about the resale of the policies, falsely inflating the net worth and/or income of the insured, and falsely claiming that the insurance was being purchased for legitimate estate planning-related needs. All applications were signed by CARPENTER’s brother-in-law, who acted as trustee of the Charter Oak Trust, which was to be the “owner” of all policies in the trust. Moreover, the applications purported that the Charter Oak Trust was a bona fide welfare benefit trust under Internal Revenue Code Section 419(e), wherein employers would be making contributions to the Charter Oak Trust in order to fund the life insurance policies for the benefit of certain select employees.
The evidence further established that, in truth, no “employer” or Straw Insured ever paid a premium into the Charter Oak Trust. Rather, the premiums were funded by loans primarily from another company headquartered in Simsbury and controlled by CARPENTER. In many cases, those loans were, in turn, financed by another third-party financing company based in Stamford. The loan arrangements were withheld from the insurance providers, who would not have issued policies had they known the true nature of the Charter Oak Trust, and had the insurance applications been filled out truthfully.
Based on the false applications that were submitted to the insurance providers, the Charter Oak Trust procured 84 insurance policies that had a total aggregate death benefit of more than $459 million on the lives of 76 different Straw Insureds. In addition, another company controlled by CARPENTER received more than $12 million in commissions from the insurance providers, who would not have paid the commissions had they known about the false representations on the insurance applications and the true nature of the Charter Oak Trust.
Finally, the trial evidence showed that one Straw Insured died within the first two years of the issuance of the two insurance policies on his life. Those policies had been issued in late 2006 and early 2007 based on misrepresentations similar to those described above, specifically that his policies were not being funded by a third party and were not intended for resale. The two insurance policies had a combined death benefit of $30 million, which the insurer paid to the Charter Oak Trust in May 2009. At CARPENTER’s direction, the Charter Oak Trust failed to pay the $30 million to the Straw Insured’s beneficiary, and instead used the funds to pay for various expenses, including other insurance premiums that were related to the underlying fraud, as well as to purchase a home in Rhode Island.
Judge Chatigny has scheduled sentencing for August 26, 2016, at which time CARPENTER faces a maximum term of imprisonment of 20 years on each count of mail and wire fraud and conspiracy to commit mail and wire fraud, a maximum term of imprisonment of 20 years on each count of money laundering and conspiracy to commit money laundering, and a maximum term of imprisonment of 10 years on each count of making illegal monetary transactions.
CARPENTER is currently serving a 36-month term of imprisonment for a previous mail and wire fraud conviction in the District of Massachusetts.
This matter is being investigated by the U.S. Department of Labor – Office of the Inspector General, the U.S. Department of Labor – Employee Benefits Security Administration’s Boston Office, and the Special Inspector General for the Troubled Asset Relief Program. The case is being prosecuted by Assistant U.S. Attorneys David E. Novick and Neeraj N. Patel.
Cincinnati Man Pleads Guilty to Distribution of Drugs Resulting in DeathRead the Press Release
COVINGTON, Ky. – A Cincinnati man has admitted in federal court that he conspired to provide illicit drugs to a woman who then died of an overdose.
Michael Howard, 41, pleaded guilty yesterday, before U.S. District Judge Amul Thapar, to conspiracy to distribute fentanyl and morphine that resulted in death.
Howard admitted selling heroin to co-defendant Kimberly Mullins on a regular basis, during a four-month period in 2015, knowing that Mullins could arrange to get the drugs to Jamie Green, who was incarcerated. Howard knew that distributing these drugs could cause death.
Howard further admitted supplying what he believed to be heroin to Mullins, on September 4, 2015, who was to then get the drugs to Green. The substance actually contained a combination of fentanyl (a dangerous opiate that is much more powerful than heroin) and morphine.
Mullins arranged to deliver the substance to Green though Lynnette Ball and Lisa Lattimore, who were also inmates in the Kenton County Detention Center. On September 5, 2015, Green took the drugs and died of an overdose.
“Those who traffick in heroin and fentanyl cause tremendous damage to our communities and demonstrate a wanton disregard for human life,” said Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky. “Our office and our law enforcement partners intend to use every available tool to combat the heroin and fentanyl epidemic that has taken deep root in so many of our communities. The twenty-year mandatory minimum sentence imposed by federal law on drug dealers who traffick in narcotics that cause a death is one such tool. Drug dealers should be on notice – we intend to seek these stiff penalties when their criminal conduct results in death or serious injury – an all too predictable occurrence.”
Howard, Mullins, Lattimore, and Ball were charged with their involvement in the conspiracy in November of 2015. Mullins, Lattimore, and Ball pleaded guilty earlier this year. Two other individuals, Mabry Baioni and Heather Tucker – who were not involved in the events leading to Green’s death – were later charged and pleaded guilty to conspiring with Howard and Mullins to distribute heroin to Green.
U.S. Attorney Harvey and Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration, jointly announced the guilty pleas. The investigation was conducted by the Cincinnati Resident Office of the Drug Enforcement Administration and the Kenton County Police Department. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Tony Bracke.
Howard is scheduled to be sentenced on September 23, 2016. Mullins, Ball and Lattimore are scheduled to be sentenced on July 21, 2016. Each faces a maximum of life in prison. Baioni is set for sentencing on July 21, 2016 and Tucker is set for sentencing on September 15, 2016. They face up to 20 years in prison. Any sentences, however, will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statutes.
Charleston dealer pleads guilty to Federal drug crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man pleaded guilty today to a federal drug charge, announced Acting United States Attorney Carol Casto. Terrance Wilson, 27, entered his guilty plea to distributing crack.
Wilson admitted that on January 25, 2016, he sold crack to a confidential informant working with law enforcement authorities. The drug deal took place at a local business on Bigley Avenue in Charleston. Wilson further admitted that he also sold crack to a confidential informant on January 26 and 27, 2016.
Wilson faces up to 20 years in federal prison when he is sentenced on September 14, 2016.
This case was investigated by the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
This prosecution was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat illegal drugs in our communities. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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California Resident Convicted of Conspiring to Illegally Export Fighter Jet Engines and an Unmanned Aerial Vehicle to ChinaRead the Press Release
A California resident was convicted by a Southern District of Florida jury of conspiring to export and cause the export to the People’s Republic of China of fighter jet engines, an unmanned aerial vehicle, commonly known as a drone, and related technical data, in violation of the Arms Export Control Act.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, John P. Carlin, Assistant Attorney General for National Security, Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI), and John Khin, Special Agent in Charge, Department of Defense, Defense Criminal Investigative Service (DCIS), made the announcement.
Wenxia Man a/k/a “Wency Man,” age 45, of San Diego, California, was convicted at trial of conspiring to export and cause the export of defense articles without the required license, in violation of Title 22, United States Code, Section 2778. She faces a statutory maximum penalty of 20 years in prison. Sentencing is scheduled for August 19, 2016 at 2:00 p.m., before Judge Beth Bloom in Miami.
The evidence at trial established that between approximately March 2011 and June 2013, Man conspired with Xinsheng Zhang, who was located in the People’s Republic of China, to illegally acquire and export to China defense articles including: Pratt & Whitney F135-PW-100 engines used in the F-35 Joint Strike Fighter; Pratt & Whitney F119-PW-100 turbofan engines used in the F-22 Raptor fighter jet; General Electric F110-GE-132 engines designed for the F-16 fighter jet; the General Atomics MQ-9 Reaper/Predator B Unmanned Aerial Vehicle, capable of firing Hellfire Missiles; and technical data for each of these defense articles. During the course of the investigation, when talking to an HSI undercover agent, Man referred to Zhang, as a “technology spy” who worked on behalf of the Chinese military to copy items obtained from other countries, and stated that he was particularly interested in stealth technology.
“Protecting our nation from the illegal movement of technology and defense articles is a top national security concern,” stated U.S. Attorney Wifredo Ferrer. “In the interests of our national defense, the U.S. Attorney’s Office and our law enforcement partners will continue to target for criminal prosecution those who attempt to unlawfully procure military equipment, munitions, tools and materials.
"Man was convicted of conspiring to evade U.S. export laws by agreeing to illegally acquire and send to China fighter jet engines, a highly sophisticated military drone and related technical data," said Assistant Attorney General Carlin. "Circumventing U.S. laws designed to safeguard our most sensitive materials serves to undermine our national security interests and we will aggressively pursue those who try to do so. I would like to thank the many members of law enforcement whose tireless efforts led to this verdict."
“ICE-HSI works very closely with numerous domestic and international partners to deny prohibited recipients access to restricted arms, munitions, weapons and controlled technologies,” said HSI Acting Special Agent in Charge Robert C. Hutchinson.
“Today’s conviction of Wenxia Man demonstrates the commitment of the Defense Criminal Investigative Service (DCIS) and our partner agencies to ensure that those intent on harming our national security are brought to justice,” said Special Agent in Charge John F. Khin, DCIS. “The nation’s security relies upon our military possessing the most sophisticated technology and weapon systems in the world while simultaneously preventing these items from finding their way into the hands of our adversaries.”
Mr. Ferrer commended the investigative efforts of the ICE-HSI Counter Proliferation Unit and DCIS offices in Fort Lauderdale, Florida. The case is being prosecuted by Assistant United States Attorney Michael Walleisa and Thea D. R. Kendler of the National Security Division’s Counterintelligence and Export Control Section.
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
California Resident Convicted of Conspiring to Illegally Export Fighter Jet Engines and Unmanned Aerial Vehicle to ChinaRead the Press Release
Wenxia Man, aka Wency Man, 45, of San Diego, was convicted today by a federal jury in the Southern District of Florida of conspiring to export and cause the export of fighter jet engines, an unmanned aerial vehicle – commonly known as a drone – and related technical data to the People’s Republic of China, in violation of the Arms Export Control Act.
The conviction was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Acting Special Agent in Charge Robert C. Hutchinson of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in Miami and Special Agent in Charge John F. Khin of the Department of Defense’s Defense Criminal Investigative Service (DCIS).
“Man was convicted of conspiring to evade U.S. export laws by agreeing to illegally acquire and send to China fighter jet engines, a highly sophisticated military drone and related technical data,” said Assistant Attorney General Carlin. “Circumventing U.S. laws designed to safeguard our most sensitive materials serves to undermine our national security interests and we will aggressively pursue those who try to do so. I would like to thank the many members of law enforcement whose tireless efforts led to this verdict.”
“Protecting our nation from the illegal movement of technology and defense articles is a top national security concern,” said U.S. Attorney Ferrer. “In the interests of our national defense, the U.S. Attorney’s Office and our law enforcement partners will continue to target for criminal prosecution those who attempt to unlawfully procure military equipment, munitions, tools and materials.”
“ICE-HSI works very closely with numerous domestic and international partners to deny prohibited recipients access to restricted arms, munitions, weapons and controlled technologies,” said Acting Special Agent in Charge Hutchinson.
“Today’s conviction of Wenxia Man demonstrates the commitment of the Defense Criminal Investigative Service (DCIS) and our partner agencies to ensure that those intent on harming our national security are brought to justice,” said Special Agent in Charge Khin. “The nation’s security relies upon our military possessing the most sophisticated technology and weapon systems in the world while simultaneously preventing these items from finding their way into the hands of our adversaries.”
Man was convicted at trial of conspiring to export and cause the export of defense articles without the required license.
According to evidence presented at trial, between approximately March 2011 and June 2013, Man conspired with Xinsheng Zhang, who was located in China, to illegally acquire and export to China defense articles including: Pratt & Whitney F135-PW-100 engines used in the F-35 Joint Strike Fighter; Pratt & Whitney F119-PW-100 turbofan engines used in the F-22 Raptor fighter jet; General Electric F110-GE-132 engines designed for the F-16 fighter jet; the General Atomics MQ-9 Reaper/Predator B Unmanned Aerial Vehicle, capable of firing Hellfire Missiles; and technical data for each of these defense articles. During the course of the investigation, when talking to an HSI undercover agent, Man referred to Zhang, as a “technology spy” who worked on behalf of the Chinese military to copy items obtained from other countries and stated that he was particularly interested in stealth technology.
Man faces a statutory maximum penalty of 20 years in prison. Sentencing is scheduled for Aug. 19, 2016, at 2:00 p.m. before U.S. District Judge Beth Bloom of the Southern District of Florida.
Assistant Attorney General Carlin joined U.S. Attorney Ferrer in commending the investigative efforts of the ICE-HSI Counter Proliferation Unit and DCIS offices in Fort Lauderdale, Florida.
The case is being prosecuted by Assistant U.S. Attorney Michael Walleisa of the Southern District of Florida and Thea D. R. Kendler of the National Security Division’s Counterintelligence and Export Control Section.
Birmingham Man Sentenced to 30 Years in Prison for Child Exploitation and Child PornographyRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Birmingham man to 30 years in prison for sexually exploiting a 5-year-old child and possessing and distributing child pornography, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
U.S. District Judge R. David Proctor sentenced AHKEEM JAMAR JOHNSON, 24, on one count of sexual exploitation of a child, one count of distributing child pornography and one count of possessing child pornography. Johnson pleaded guilty to the charges in March. Following today’s hearing, the judge ordered Johnson immediately into the custody of U.S. Marshals.
According to court documents, Johnson took sexually explicit images of the 5-year-old girl and distributed some of those images. He also possessed more than 96 images of child pornography involving children other than the 5-year-old. Most of those images showed prepubescent girls engaged in sexual intercourse with adult men.
The FBI investigated the case, which Assistant U.S. Attorney Jacquelyn M. Hutzell prosecuted.
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Berlin Armed Bank Robber Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Jeff V. Hare, age 54, of Berlin, Maryland, today to 10 years in prison followed by five years of supervised release for armed bank robbery and brandishing a firearm during a crime of violence.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Worcester County Sheriff Reggie T. Mason, Sr.; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Worcester County State’s Attorney Beau Oglesby.
According his plea agreement, on March 13, 2015, Hare entered the BB&T branch located on Racetrack Road in Berlin, wearing a ski mask and brandishing a handgun. Hare told the bank tellers that he had a gun and was robbing the bank. Hare moved through the lobby from employee to employee, pointing the handgun at each employee and demanding money. Hare also demanded each teller give him their car keys and purse, but the tellers told Hare they did not have them available. Hare stole approximately $2,850 in cash from the bank.
Hare admitted that after robbing the tellers in the lobby, he found a bank employee who had locked herself in a back room of the bank. Hare forced open the locked door and demanded her car keys and her purse. The employee gave Hare her purse, which contained cash and personal effects, and the keys to her car. Hare fled in the stolen car, which he abandoned at a nearby business.
Hare was arrested later that evening at a residence in Ocean Pines, Maryland. At the time of his arrest, Hare was still in possession of the money stolen from the bank.
Hare has been detained since his arrest. During that time, Hare attempted to impede the investigation of the armed bank robbery and carjacking by seeking to arrange for the disposal of evidence of the crimes. On May 1, 2015, an associate of Hare visited him at the Worcester County Detention Center in Snow Hill, Maryland. During that visit, Hare told his associate that he was being framed and that unidentified persons had a box of garbage that would incriminate him. Hare asked the person to retrieve the box from his former residence in Ocean Pines. On May 6, Hare called his associate and asked if he got rid of the “trash,” referring to the box Hare had asked the associate to retrieve. The box contained the ski mask Hare wore during the robbery and carjacking, a .38 caliber revolver believed to have been used during the robbery, and the purse Hare stole from the bank employee, including her driver’s license.
United States Attorney Rod J. Rosenstein praised the FBI, Worcester County Sheriff’s Office, Maryland State Police and the Worcester County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Matthew J. Maddox and Zachary A. Myers, who prosecuted the case.
Baltimore Man Sentenced to 20 Years in Prison for Armed RobberyRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Derek Anthony Davis, age 31, of Baltimore, Maryland today to 20 years in prison followed by five years of supervised release for robbery conspiracy and possession of a firearm by a convicted felon.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Frank Riehl of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore Police Commissioner Kevin Davis; and Baltimore City State’s Attorney Marilyn Mosby.
According to his plea agreement, from June 17 to June 30, 2015, Davis and a co-conspirator committed five armed robberies of a hair academy on Dundalk Avenue North in Dundalk; a barber shop on Eastern Avenue in Baltimore; a beauty parlor on Reisterstown Road in Baltimore; a barber shop on Garrison Boulevard in Baltimore; and a hair salon on Edmondson Avenue in Baltimore.
During each robbery, Davis brandished a firearm. Davis and his co-conspirator stole cash and products from employees, customers and the businesses.
While robbing the barber shop on Eastern Avenue, Davis demanded that an employee give him cash. When the employee initially resisted, Davis yelled that the employee was going to be the reason they all got shot.
At least $1,208 was stolen during the robberies.
On July 29, 2015, a police officer saw Davis walking out of an alley in the 500 block of Normandy Avenue in Baltimore. Davis fled when he saw the officer. When the officer caught up with him, Davis tossed a .22 caliber pistol onto a nearby porch roof. Davis had previously been convicted of a felony and was prohibited from possessing a firearm.
Davis also admitted that he is an armed career criminal.
United States Attorney Rod J. Rosenstein praised commended the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Seema Mittal, who prosecuted the case.
BPD Cell Block Attendant Charged with Violating the Civil Rights of an Individual in CustodyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Matthew Jaskula, 26, of Buffalo, NY, was charged by criminal complaint with deprivation of rights under color of law. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
“As our Office has demonstrated in the past, we will not tolerate the alleged abuse of any individual in custody,” said U.S. Attorney Hochul. “I commend the Buffalo Police Department for once again immediately bringing this incident to our attention.”
Assistant U.S. Attorney Joseph M. Guerra, who is handling the case, stated that Jaskula has been working as a Cell Block Attendant with the Buffalo Police Department since 2013. On May 19, 2016, the defendant was promoted to the position of Senior Cell Block Attendant.
According to the complaint, on that same day, May 19, 2016, the Victim was arrested by two Buffalo Police officers and transported to the cell block area of police headquarters. At approximately 10:00 p.m., the Victim, whose hands were handcuffed behind his back, was taken into the fingerprint and mug shot room. The officers and the Victim were met by Jaskula and another cell block attendant.
The Victim, with his hands still handcuffed behind him, was instructed to face a wall. Within a few seconds, Jaskula grabbed the Victim from behind and shoved the Victim face-first into a door. The force of the defendant’s actions not only caused the Victim to strike his face on the door, it caused the door to fly open and the Victim to fall to the ground. On the way to the ground, the Victim’s face struck the ledge of a shelf, before striking the floor – once again, face-first.
The defendant’s actions caused the Victim to become limp and unresponsive. Jaskula thereafter grabbed the Victim by his handcuffed arms and dragged him down a hallway for approximately 10-15 feet to an open cell. The Victim began bleeding profusely as he was dragged by the defendant and taken into an open cell. As the Victim was pulled into the room, the Victim’s head hit the door frame, causing blood to pool on the floor. Once in the room, the Victim’s facial injuries caused a large amount of blood to fall onto the seat and floor of the cell.
The Victim was later taken by Jaskula and another and put into a restraint chair used for non-compliant prisoners. The defendant left the Victim in this chair, without seeking medical treatment for the extensive facial injuries, for approximately an hour and 45 minutes. The cell block area in Buffalo Police headquarters is equipped with a video recording system and Jaskula’s actions were captured on videotape.
As also described in the complaint, Jaskula told two lieutenants on duty that a prisoner had a bloody nose, giving the impression that the Victim had the bloody nose when he was brought in by the officers. After one of the lieutenants indicated the Victim should go to the Erie County Medical Center, the defendant replied that the Victim’s nose was not bleeding anymore and he was refusing medical treatment. At approximately 11:30 p.m., the Victim complained of chest pains. The Victim was taken to ECMC and treated for nasal bone fractures and a laceration between his nose and right eye.
The defendant will make an initial appearance on June 10, 2016 at 9:00 a.m. before U.S. Magistrate Judge Michael J. Roemer.
The complaint is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Alexandria Man Charged with Providing Material Support to ISILRead the Press Release
ALEXANDRIA, Va. – In a criminal complaint unsealed here today, Mohamad Jamal Khweis, 26, of Alexandria, has been charged with providing, and conspiring to provide, material support to the Islamic State of Iraq and the Levant (ISIL).
Khweis was detained by Kurdish Peshmerga military forces on March 14 in northern Iraq after leaving an ISIL-controlled neighborhood in Tal Afar, Iraq. According to the affidavit in support of the criminal complaint, Khweis admitted to flying out of Baltimore-Washington International Airport to begin his travel to join ISIL in mid-December 2015. His travel included a stop in the United Kingdom and the Netherlands before ultimately crossing into Syria through the Republic of Turkey with the help of ISIL facilitators. Khweis admitted that he stayed in an ISIL safe house in Raqqa, Syria with other ISIL recruits who were going through an intake process, and at one point during the intake process he answered yes when asked by ISIL if he would be a suicide bomber. Khweis also admitted to participating in ISIL-directed religious training for nearly one month in preparation for his service to ISIL.
Khweis will have his initial appearance at the federal courthouse in Alexandria today at 2 p.m. in front of U.S. Magistrate Judge John F. Anderson.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John Carlin, Assistant Attorney General for National Security; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the unsealing of the criminal complaint. The case is being prosecuted by Assistant U.S. Attorney Dennis Fitzpatrick and Trial Attorney Raj Parekh of the Justice Department’s National Security Division’s Counterterrorism Section. This case is being investigated by the FBI’s Joint Terrorism Task Force.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-mj-213.
The criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Additional charges for Iberia Parish Sheriff and other officials on civil rightsRead the Press Release
LAFAYETTE, La. – Principal Deputy Assistant Attorney General Vanita Gupta, head of the Department of Justice’s Civil Rights Division, and U.S. Attorney Stephanie A. Finley announced today that Iberia Parish Sheriff Louis Ackal, Lieutenant Colonel Gerald Savoy and former Captain Mark Frederick were charged in a superseding indictment with civil rights violations arising out of the beatings of two men.
The superseding indictment charges Ackal with one count of conspiracy against rights for conspiring in the spring of 2014 to assault a man who had been arrested on battery charges for allegedly assaulting one of Ackal’s relatives. The superseding indictment also charges Savoy and Frederick with one count of deprivation of rights under color of law for allegedly assaulting another man, a pre-trial detainee at the Iberia Parish Jail (IPJ) in September of 2011. Ackal and Savoy had previously been charged related to beatings of pre-trial detainees at the IPJ on April 29, 2011.
Nine former Iberia Parish Sheriff’s Office employees previously entered guilty pleas in related cases before U.S. District Judge Patricia Minaldi of the Western District of Louisiana. The nine officers are former IPJ Warden Wesley Hayes, former IPJ Assistant Warden Jesse Hayes, former Lieutenant Bret Broussard of the Narcotics Unit, former narcotics agent Wade Bergeron, former narcotics agent Jason Comeaux, former narcotics agent David Hines, former narcotics agent Byron Benjamin Lassalle and former K-9 handlers Robert Burns and Jeremy Hatley.
An indictment is merely an allegation, and the defendants are presumed innocent until proven guilty. If convicted, Ackal, Savoy and Frederick each face a maximum sentence of 10 years in prison for each of the civil rights violations, as well as a potential $250,000 fine for each count.
The case is being investigated by the FBI’s Lafayette Resident Agency. The case is being prosecuted by Senior Litigation Counsel Joseph G. Jarzabek of the Western District of Louisiana and Special Litigation Counsel Mark Blumberg and Trial Attorney Tona Boyd of the Civil Rights Division’s Criminal Section.
Wednesday 8 June 2016
“Babysitter” Admits to Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A Mathis woman who was supposed to care for a young child but who instead recorded her sexual assault has pleaded guilty, announced U.S. Attorney Kenneth Magidson.
Rosa Linda Ganceres, 53, entered a guilty plea to sexual exploitation of a child, otherwise known as production child pornography.
The court heard today that Ganceres and her boyfriend - Daniel Benson Billman, 42, of Aransas Pass, and a registered sex offender - placed an ad on craigslist offering babysitting services. The victim’s mother answered the ad and Ganceres was supposed to care for the child. Instead, Billman sexually assaulted the two-year-old girl while Ganceres recorded the assault.
In August 2015, authorities executed a search warrant at Billman’s residence and seized a cellular telephone. Forensic examination led to the discovery of a video of the child involved in sexual explicit conduct that Ganceres recorded.
Billman has also pleaded guilty for his crimes. In March 2016, Senior U.S. District Judge Janis Graham Jack sentenced him to 50 years in federal prison.
Ganceres is set for sentencing Sept. 22, 2016, before U.S. District Judge Nelva Gonzales Ramos. At that time, she faces a minimum of 15 and up to 30 years in federal prison as well as a possible $250,000 fine. Upon completion of any prison term imposed, Ganceres also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
The charges are the result of the investigative efforts of Homeland Security Investigations, Aransas Pass Police Department and Corpus Christi Police Department’s Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Woman Who Embezzled $852,041 from St. Luke’s Pleads GuiltyRead the Press Release
BOISE -- Sara Curnow, 45, of Portland, Oregon, pleaded guilty today to wire fraud in connection with her scheme to embezzle $852,041 from St. Luke’s Health System employees’ Flexible Spending Accounts, U.S. Attorney Wendy J. Olson announced. Curnow waived her right to indictment and pleaded guilty before Chief U.S. Magistrate Judge Ronald E. Bush to a single count felony information filed by the U.S. Attorney.
According to the plea agreement, from approximately 2008 through 2015, Curnow was an employee of Pinnacle Pension Services (“Pinnacle”), headquartered in Boise, Idaho. As part of its business, Pinnacle administered health care and dependent care Flexible Spending Accounts (“FSAs”) for employees of client firms. Employees of client firms who elected to participate in an FSA program had pre-tax funds withheld from their paycheck and deposited into a bank account from which they can make claims for disbursement for health care and dependent care expenses throughout the year. At the end of the year, if the employee had not exhausted his or her FSA deposits, they were forfeited to the employer. In approximately 2009, Curnow assumed the job of FSA Administrator at Pinnacle. In that role, she had responsibility for reviewing and approving payment of FSA disbursement claims.
St. Luke’s Health System (“St. Luke’s”) was a client of Pinnacle. St. Luke’s maintained bank accounts at Wells Fargo Bank into which withholdings of pre-tax FSA funds from participating employees were deposited and from which disbursements were made to these employees after they were approved by Pinnacle.
The plea agreement provided that, beginning in April of 2009 and continuing until October of 2015, Curnow embezzled $852,041 from St. Luke’s FSA accounts at Wells Fargo Bank. On the internal Pinnacle computer system, she saw which St. Luke’s employees left forfeitures at plan year end and in what amounts. These amounts were supposed to be forfeited to St. Luke’s at plan year end. Instead, Curnow manipulated the Pinnacle claims system to create dummy elections and claims payments for St. Luke’s employees. Rather than directing the claims payments to the bank accounts of the St. Luke’s employees, Curnow directed these claims payments to be sent by interstate ACH wire transfer from St. Luke’s FSA account at Wells Fargo Bank to Pinnacle’s trust account at Wells Fargo Bank, and then, to Curnow’s bank accounts at Ally Bank, Mountain America Federal Credit Union, and Navy Federal Credit Union. She did so on approximately 294 separate occasions in denominations ranging from approximately $600 to $9,100. Because St. Luke’s had between 5,000 and 11,000 employees from 2009 through 2015, St. Luke’s did not discover the fraudulent transfers of forfeited funds that belonged to it.
The charge of wire fraud is punishable by up to 20 years in prison, a maximum fine of $250,000, and up to 3 years of supervised release.
Sentencing for Curnow is set for August 30, 2016, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was investigated by the U.S. Department of Labor, Employee Benefits Security Administration and the Boise Police Department.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
Watertown Man Sentenced for Possessing Synthetic DrugsRead the Press Release
SYRACUSE, NEW YORK – Lakendrick Cobey, 40, of Watertown, New York, was sentenced to serve fifty (50) months in prison followed by a three (3) year term of supervised release in connection with his possession with intent to distribute ethylone, a synthetic drug similar to ecstasy, announced United States Attorney Richard S. Hartunian and Homeland Security Investigations (HSI) Special Agent in Charge James C. Spero.
Special Agents of the U.S. Department of Homeland Security Investigations (HSI) executed a federal search warrant at Cobey’s residence in Watertown, New York on April 28, 2015, during which they recovered $978.00 in drug proceeds, an electric money counter, two mobile telephones and drug paraphernalia. Lakendrick Cobey pled guilty on December 14, 2015 to possessing with intent to distribute approximately two (2) pounds of the synthetic drug that he ordered from Chinese suppliers.
As part of his plea of guilty, Lakendrick Cobey admitted that he ordered two shipments of synthetic drugs from China that were seized by U.S. Customs officials when they entered the United States. The seizure of these drugs led to the issuance and execution of a federal court search warrant and the arrest of the defendant. At the time of his arrest, Lakendrick Cobey was serving a sentence of probation in connection with his previous conviction for a New York State felony drug offense.
This case was investigated by the United States Department of Homeland Security Investigations (HSI), and was prosecuted by Assistant U.S. Attorney Richard R. Southwick.
Washington Resident Charged with Immigration Fraud Scheme Targeting Vietnamese CommunityRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Matthew Etre, Special Agent in Charge of HSI Boston, announced that a federal grand jury in Hartford returned a 23-count indictment today charging HAI VAN NGUYEN, 41, of Lynnwood, Wash., on charges stemming from fraud scheme targeting members of the Vietnamese community in Connecticut and other states.
As alleged in court documents and statements made in court, NGUYEN advertised through Facebook a purported avenue for legal sponsorship for individuals to come to the United States from Vietnam. When contacted, NGUYEN guaranteed clients that he could obtain legal entry into the U.S. for their family members through his company, New Saigon Entertainment. NGUYEN guaranteed a green card upon arrival in the U.S. and U.S. citizenship within five years. Through fraudulent and false representations, NGUYEN convinced two Connecticut residents to assist him in recruiting clients for his purported company. The Connecticut residents collected deposits towards NGUYEN’s $35,000 fee pursuant to more than 50 contracts from clients in Connecticut, South Carolina, Maine and Arizona. Additional victims of NGUYEN’s fraudulent scheme have been identified in Ohio and Texas.
Through this alleged scheme, NGUYEN defrauded members of the Vietnamese community seeking legal entry for family members into the U.S. of more than $500,000.
NGUYEN has been detained since his arrest on May 5, 2016.
The indictment charges NGUYEN with one count of conspiracy to commit wire and mail fraud, two counts of mail fraud and 20 counts of wire fraud. The charges carry a maximum term of imprisonment of 20 years on count.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Jacabed Rodriguez-Coss.
Versailles Woman Pleads Guilty to $400,000 Fraud SchemeRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Versailles, Mo., woman has pleaded guilty in federal court to a fraud scheme in which she stole nearly $400,000 from her employer.
Abbie Martin Stemper, 43, of Versailles, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth on Tuesday, June 7, 2016, to one count of wire fraud and one count of bank fraud.
Stemper worked as a bookkeeper and purchasing agent at Smith Paper & Janitor Supply (SP&JS) in Eldon, Mo., from the spring of 2009 to February 2015, when her employment was terminated.
By pleading guilty today, Stemper admitted that she embezzled $397,122 from Smith Paper & Janitor Supply and its wholly owned subsidiary, White Castle Service and Supply in Springfield, Mo., from June 2010 to February 2015.
The thefts took several forms:
Stemper had entered into an agreement with SP&JS to purchase some of SP&JS’ product and sell it to customers who were not customers of SP&JS. Payments for these sales were made via cash, check or PayPal, and were deposited into financial accounts Stemper owned or controlled. Stemper received payments totaling $233,806 for products that she sold through her own business entities but she did not reimburse SP&JS for the products she took (except for $688).
Stemper also admitted that she created false refunds for various SP&JS customers, and then directed the refunds to her debit cards or a card that she controlled at various banks, in a total amount of $22,704. In addition, Stemper stole cash from SP&JS and made $74,518 in cash deposits into her personal checking accounts.
SP&JS had an Amazon customer account in which its products were sold through Amazon. Amazon collected the payments received for sales of SP&JS’s products, and forwarded those payments to the company’s bank accounts. Stemper admitted that, on several occasions, she altered SP&JS’s Amazon account profile information to direct withdrawals from this account to be deposited into her personal bank account. Stemper admitted that she caused Amazon to wire a total of $13,422 in payments due SP&JS to her personal bank account.
In October 2013, SP&JS acquired White Castle Service and Supply, which also sold cleaning and janitorial supplies. Stemper admitted that she intercepted and stole 234 customer checks totaling $53,358 payable to White Castle and deposited them into her personal bank account. Stemper had registered “White Castle Service” with the Missouri Secretary of State as a fictitious name with a business address that was her personal residence, then added “DBA White Castle Service” to her personal bank account in order to mislead her bank that deposits of checks from customers of White Castle (SP&JS’s subsidiary) were legitimate deposits, and thereby conceal and facilitate the theft.
Under federal statutes, Stemper is subject to a sentence of up 30 years in federal prison without parole on each of the two counts and an order of restitution. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Larry Miller. It was investigated by the FBI, the Missouri State Highway Patrol and the Eldon, Mo., Police Department.
U.S. Attorney Announces New Civil Rights Practice at Civil Civil Rights Symposium Held in Jackson TodayRead the Press Release
Jackson, Miss – Principal Deputy Assistant Attorney General Vanita Gupta, head of the Department of Justice’s Civil Rights Division, delivered remarks during a Civil Rights Symposium hosted by the U.S. Attorney’s Office for the Southern District of Mississippi in Jackson today, announced U.S. Attorney Gregory K. Davis.
The purpose of the symposium was the announcement of a new Civil Rights Section within the Civil Division of the U.S. Attorney’s Office for the Southern District of Mississippi that will investigate and remedy civil rights violations within the district. The new Civil Civil Rights Section welcomes information from the public regarding possible violations of our nation’s civil rights laws.
The new Civil Civil Rights Section will collaborate with local community members, advocacy groups and other federal and state agencies in the area of civil rights, working to civilly enforce federal civil rights laws including the Fair Housing Act, Equal Credit Opportunity Act, Religious Land Use and Institutionalized Persons Act, Servicemembers Civil Relief Act, Americans with Disabilities Act, Title VII of the Civil Rights Act of 1964, and the Uniformed Services Employment and Reemployment Rights Act. Civil remedies under these statutes may include monetary penalties, injunctions, civil judgments and more.
Coinciding with the 25th Anniversary of the Americans with Disabilities Act of 1990 (ADA), the newly created Civil - Civil Rights Section has already been busy with a Polling Place Initiative launched in March, where the office reviewed polling places in Hinds County and Forrest County. The ADA prohibits discrimination on the basis of disability by places of public accommodation, including polling places, and requires such places comply with the accessibility standards established by the ADA’s implementing regulations. This initiative is in accordance with the Department of Justice’s congressionally-mandated responsibility to review compliance with the ADA and is not in response to any specific complaint against a polling place.
Today’s symposium, held at the Jackson Medical Mall, focused on the nation’s federal civil rights laws in the areas of disability, housing and education and highlighted the role of the U.S. Attorney’s Office in ensuring compliance and effective monitoring in the areas of affirmative civil rights enforcement. Other topics covered by various speakers during the event included: civil rights enforcement; military rights; disability rights; LGBT rights; discrimination in access to housing and credit; juvenile justice; school discipline; jails and policing; equal educational opportunities; and improving local communities through an active civil rights practice.
Participants, including members of various civil rights organizations, members of state and local bar associations, and local, state and federal officials, were able to raise questions or concerns regarding civil rights issues in the Southern District of Mississippi.
"Today’s Civil Civil Rights Symposium is an effort to let the public know that the United States Attorney’s Office is indeed a partner with other community advocates and organizations in enforcing the civil rights of all Mississippians," said Civil Division Chief Mitzi Dease Paige. "We are committed to advancing equal opportunity and we look forward to continuing to do justice for all people wherever and whenever we can."
Two dealers sentenced to Federal prison for drug crimesRead the Press Release
BECKLEY, W.Va. – Two men were sentenced today for federal drug crimes, announced Acting United States Attorney Carol Casto. Wilbur Arnold, Jr., 50, of White Sulphur Springs, was sentenced to three years in federal prison for possession with intent to distribute cocaine. In a separate prosecution, Michael Shepard, 23, of Beckley, was sentenced to ten months in federal prison for distribution of heroin.
Arnold admitted that on July 22, 2015, law enforcement authorities seized cocaine from his home that he intended to distribute. Along with the cocaine, Arnold further admitted to the possession of two handguns.
In a separate drug prosecution, Shepard admitted that on January 7, 2015, he sold heroin to a confidential informant cooperating with law enforcement. The drug deal took place on Hartley Avenue in Beckley.
The Arnold case was investigated by the Greenbrier County Sheriff’s Department and the Greenbrier Valley Drug and Violent Crime Task Force. The Southern Regional Drug and Violent Crime Task Force conducted the investigation of Shepard. United States District Judge Irene C. Berger imposed the sentences.
These cases were prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat illegal drugs in our communities. The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Two Charged with Distributing Heroin Involved in Overdose of Teenager in GrotonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that an investigation into a recent drug overdose death of a teenager in Groton has resulted in federal heroin distribution charges against two individuals. The charges stem from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
ADELE BOUTHILLIER, 42, of Groton, was arrested today on a federal criminal complaint charging her with possession with intent to distribute, and distribution of, heroin, and conspiracy to distribute heroin. RAMON GOMEZ, also known as “B.I.,” 40, of Uncasville, has been charged by complaint with the same offenses.
According the criminal complaint, in the early morning hours of May 29, 2016, members of the Groton Police Department and emergency services personnel responded to a Groton motel room on the report of a suspected drug overdose. The victim, a 17-year-old female, was administered two doses of NARCAN, which were deemed unsuccessful, before she was transported to the hospital and died later that morning.
It is alleged that GOMEZ brought the victim to the motel to engage in prostitution, and that the victim was staying in a room there with BOUTHILLIER. On the morning of May 28, 2016, BOUTHILLIER purchased a quantity of heroin from GOMEZ and gave it to the victim, who snorted it. At approximately 10:00 p.m. that day, BOUTHILLIER awoke to find the victim to be unresponsive with vomit coming out of her mouth. BOUTHILLIER waited approximately four hours before calling 911.
Following her arrest, BOUTHILLIER appeared before U.S. Magistrate Judge Joan G. Margolis and was ordered detained.
GOMEZ is currently in state custody on related charges.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by the Drug Enforcement Administration, Groton Police Department and Regional Community Enhancement Task Force. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.