Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
27 July 2016
Toledo man charged for cocaine distributionRead the Press Release
A criminal information was filed against Fortino Barajas Castaneda, 35, of Toledo, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
The charges relate to possession with intent to distribute cocaine.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Department of Homeland Security, Immigration and Customs Enforcement, in Detroit. The case is being handled by Assistant United States Attorney Thomas P. Weldon and Michael J. Freeman.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Defendants Indicted for Armed Robbery of Dunbar Armored, Inc., CourierRead the Press Release
ATLANTA - Artaigaous Norwood, Joquize Norwood, and Detravius Brown, have been arraigned on federal charges of conspiracy to commit armed robbery, armed robbery, and use of a fire Three Defendants Indicted for Armed Robbery of Dunbar Armored, Inc., Courier arm in furtherance of a crime of violence. Artaigaous Norwood was also charged with possessing a firearm after having previously been convicted of a felony offense.
“The brazen nature of this armed robbery created an extraordinarily dangerous situation.” said U.S. Attorney John Horn. “The indictment alleges that these defendants, with their guns drawn, put the lives of the victim, other innocent bystanders, and their own lives, at risk.”
“The federal indictments and resulting arraignments of these three alleged armed robbers is a direct result of many long days and nights of hard work by FBI agents and Task Force Officers from Atlanta P.D. Because of the threat posed to the public by these types of aggressive armed robberies, I am thankful that this investigation moved as quickly as it did without anyone getting hurt,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“This is just another example of how partnership works to keep City of Atlanta citizens safe,” said Atlanta Police Chief George Turner. “Brazen attacks like this on hard-working people will not be tolerated and we will continue to work with our federal partners to ensure the individuals responsible are held accountable.”
According to U.S. Attorney Horn, the charges, and other information presented in court: On Saturday, May 14, 2016, at around 8:40 a.m., defendants Artaigaous and Joquize Norwood are alleged to have robbed a courier for Dunbar Armored, Inc., at gunpoint as he attempted to make a cash delivery to a business in Atlanta, Georgia. The defendants approached the victim with their guns drawn just after the victim exited the armored vehicle. One defendant grabbed the bag containing cash from the victim while the other took the victim’s firearm, holstered at his side. Cell phone evidence and video surveillance showed that a third man, defendant Detravius Brown, acted as a lookout during the robbery.
Artaigaous Norwood, 43, and Joquize Norwood, 21, of Atlanta, Georgia, along with Detravius Brown, 23, of Mableton, Georgia, were arraigned on July 21, 2016 before U.S. Magistrate Judge John K. Larkins III. The defendants were indicted by a federal grand jury on July 12, 2016, after being charged by Criminal Complaint on June 13, 2016.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation with the assistance of the Atlanta Police Department.
Assistant United States Attorney Jessica C. Morris is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Texas Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Pharr, Texas, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Dimas DeLeon, a/k/a Leo Castro, a/k/a Leo DeLeon, age 30, was indicted on July 19, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 26, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, at least 5 years up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between May 1, 2016, and July 1, 2016, DeLeon, a person required to register under the Sex Offender Registration and Notification Act, failed to register and update his registration.
The charge is merely an accusation and DeLeon is presumed innocent until and unless proven guilty.
The investigation is being conducted by the United States Marshals Service. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
DeLeon was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Tampa Woman Sentenced for Tax FraudRead the Press Release
Tampa, FL – U.S. District Judge James S. Moody, Jr. today sentenced Latosha Strong to 15 months in federal prison for filing false federal income tax returns in the names of deceased individuals. The Court also ordered her to pay $52,735.71 in restitution to the U.S. Treasury, which are traceable to proceeds of the offense. Strong pleaded guilty on December 11, 2015.
According to court documents, Strong, and others working with her, prepared and filed fraudulent tax returns using the stolen identities of at least 10 deceased individuals for the 2010 and 2011 tax years. The resulting tax refunds were directed to at least five different bank accounts in Strong’s name. The amount of false claims totaled $85,814, but due to federal seizure warrants and financial institution reclamations, the actual tax loss amounted to $52,735.71.
Analysis of information from the 10 deceased individuals’ returns shows that these conspirators used similar “formulas” to generate the fraudulent returns, including income, tax withholding, and interest income. In addition, several of the false returns claimed identical refund amounts.
Strong and others shared in the proceeds from the scheme. The monies were spent on a variety of retail items and services, and in transactions at a local casino.
This case was investigated by IRS Criminal Investigation. It was prosecuted by Assistant United States Attorney Mandy Riedel.
Stowaway Found at Port of Houston ConvictedRead the Press Release
HOUSTON – A 40-year-old undocumented immigrant found as a stowaway on a boat at the Port of Houston has pleaded guilty to illegal re-entry after deportation, announced U.S Attorney Kenneth Magidson.
Robinson Francisco Gonzalez-Martinez, a citizen of the Dominican Republic, has multiple convictions for drug possession and two convictions for grand theft of motor vehicles. He had been deported twice from the United States.
On May 8, 2016, Customs and Border Protection (CBP) officers discovered Gonzalez-Martinez hiding in a ship at the Port of Houston.
Today, he admitted he is a previously convicted felon who illegally re-entered this county. He snuck on to a container ship in the Dominican Republic and was discovered after he jumped off of the vessel upon its arrival in the Port of Houston.
“This arrest and conviction illustrates CBP’s ongoing commitment to intercept individuals intent on circumventing the immigration process to continue their criminal activity,” said CBP Director of Field Operations Judson W. Murdock II. “CBP will continue to take every opportunity to apprehend these individuals and coordinate for the proper action leading to their removal from our communities.”
U.S. District Judge Kenneth Hoyt accepted the plea today and has set sentencing for Oct. 3, 2016. At that time, Gonzalez-Martinez faces up to 10 years in federal prison. He will remain in custody pending that hearing.
CBP conducted the investigation. Assistant U.S. Attorney Adam Goldman is prosecuting the case.
Store Manager Sentenced for $5.1 Million Food Stamp FraudRead the Press Release
MACON, Ga. - Michael Paul Atkinson, Jr., has been sentenced for conspiracy to commit wire fraud in connection with the federal food stamp program, known as the Supplemental Nutrition Assistance Program (SNAP).
“The defendant used the food stamp program as an ATM,” said U.S. Attorney John Horn. “Food stamps provide needed assistance to the most vulnerable citizens in our society. Schemes like these unfortunately divert critical resources away from the people who need them most.”
“USDA-OIG stands firm in its mission to safeguard program benefits. The prosecution of Atkinson serves as a message to those who operate businesses for the purposes of defrauding USDA programs and taxpayers that USDA-OIG will work with its federal, state and local law enforcement partners to vigorously investigate and prosecute you,” stated Karen Citizen-Wilcox, Special Agent-in-Charge, USDA OIG-Investigations.
“The American tax system is designed to provide vital government services to our people,” said Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “Every dollar that Michael Paul Atkinson diverted through fraudulent and criminal activity is a dollar taken away from a child in need or a vulnerable adult. We are proud to work hand-in-hand with our law enforcement partners to ensure that fraudulent benefit schemes are investigated thoroughly and any avenues allowing exploitation of these programs are shut down.”According to U.S. Attorney Horn, the charges and other information presented in court: Atkinson operated Mid Way Market in Macon, Georgia, from 2010 through March 2015. During that time, Atkinson paid beneficiaries in cash to redeem SNAP benefits and allowed beneficiaries to use those benefits to purchase non-allowed items. In addition, Atkinson taught other workers at Mid Way how to process fraudulent claims. As a result of the fraudulent scheme, the SNAP program paid over $5.1 million in redemptions to Mid Way that should not have been paid.
Atkinson also agreed that his home was subject to forfeiture because it was purchased with proceeds from the fraud. His house has been forfeited to the United States.
Michael Paul Atkinson, Jr., 37, of Hampton, Georgia, has been sentenced to five years in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $5,141,520.28. Atkinson was convicted on these charges on March 31, 2016, after he pleaded guilty.
The U.S. Attorney’s Office for the Middle District of Georgia is recused from this case. It was prosecuted by the U.S. Attorney’s Office for the Northern District of Georgia.
This case was investigated by the United States Department of Agriculture, Office of Inspector General and Internal Revenue Service Criminal Investigation.
Special Assistant United States Attorney Christopher J. Huber prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga
St. Louis Man Pleads Guilty to Stealing from Norfolk Southern Railway TrainsRead the Press Release
St. Louis, MO – Ronald Bonner, St. Louis, MO, pled guilty to stealing goods from Norfolk Southern Railway trains as they passed through the railroad’s St. Louis terminal. Bonner admitted to two counts of theft from an interstate shipment involving two separate incidents occurring on October 14, 2015, and February 5, 2016, during which Bonner boarded trains, broke into containers and stole valuable merchandise to be resold. He entered his plea before United States District Judge John A. Ross.
Bonner now faces up to three years imprisonment and a fine of up to $250,000 per count. Restitution to the victim is also mandatory.
The case was investigated by the Norfolk Southern Railroad Police. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Southside Gang Member Sentenced to Eight Years in PrisonRead the Press Release
BOISE – Mario Fernandez Jr., 37, of Nampa, Idaho, was sentenced today to 96 months in prison for possessing methamphetamine with the intent to distribute it, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J, Lodge also ordered Fernandez to serve five years of supervised release following his release from prison. Fernandez pleaded guilty on May 3, 2016.
According to information presented in court, on November 16, 2015, Idaho Department of Correction parole officers and officers from the Nampa Police Department conducted a home visit at the residence of Fernandez. While officers knocked on the residence door and contacted co-defendant Bayley Bird at the front of the house, Fernandez tried to escape by running out the back door. An officer positioned at the back door stopped Fernandez and escorted him back inside. The residence was searched and in a bedroom that Fernandez shared with Bird, officers found two firearms, a .22 magnum and a Glock pistol. Officers also found 158.7 grams of methamphetamine as well as brass knuckles, a large knife, a scale, and plastic baggies. At the time of his arrest, Fernandez had $2,036 in cash in his pocket. Fernandez is a documented Southside gang member and Bird is associated with the Northside gang. At the time of the offense, Fernandez was on parole for aggravated assault and conspiracy to traffic methamphetamine. On February 4, 2016, Bird also pleaded guilty to possession of methamphetamine with the intent to distribute it. She was sentenced to 60 months in prison on June 8, 2016.
The case was investigated by the Idaho Department of Correction, Nampa Police Department, the Treasure Valley Metro Violent Crimes Task Force, and ATF. The Metro Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and the Idaho Department of Correction.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Six Defendants Including Three Former Members of the United States Military Charged with Interstate Gun TraffickingRead the Press Release
A seventeen-count indictment was fully unsealed yesterday in the United States District Court for the Eastern District of New York charging Marquez Bridges, Micah Isaiah Desuze, Dominique Chanel Fairnot, Jeremy Sanchez, Ashanti Sease-Matthews, and Omar Jermaine Walker with conspiracy to deal in firearms and making false statements to acquire firearms. Jeremy Sanchez, who was the most recent defendant arrested in this case, is scheduled to be arraigned before the Honorable Magistrate Judge Robert Levy at 2:00 p.m. this afternoon. The next status conference in the case is scheduled for August 4, 2016 before the Honorable Allyne R. Ross.
The charges and arrests were announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and William J. Bratton, Commissioner, New York City Police Department (NYPD).
“We stand committed to stemming the flow of illegal firearms into our communities,” stated United States Attorney Capers. “All too often, firearms brought into New York illegally end up in the hands of criminals and result in acts of violence.” Mr. Capers extended his grateful appreciation to the United States Air Force Office of Special Investigations.
“Illegal guns most often end up in the hands of criminals who usually don't abide by the laws designed to protect society. A disturbing facet of this case is that several of the subjects were former members of the military, trusted to defend our nation, and make it safer. These weapons have made our communities more dangerous,” stated FBI Assistant Director-in-Charge Rodriguez.
“This department has no tolerance for those who traffic illegal guns into our city,” said New York Police Commissioner Bratton. “I commend the work of the detectives and agents whose work resulted in these arrests.”
As set forth in the indictment and other documents filed by the government, between October 2015 and April 2016 the defendants purchased more than 70 firearms from stores and gun shows in Georgia. The firearms were transported to the metropolitan New York City area, where they were sold in illegal transactions on the street. The defendants, who acted as straw purchasers, made false statements to obtain the firearms. In particular, the defendants lied on ATF Form 4473, a form gun purchasers are required to complete to verify, among other things, that they are not purchasing firearms on behalf of others. Three of the defendants, Desuze, Sease-Matthews, and Walker, are former members of the United States military.
The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face a maximum prison term of ten years.
The government’s case is being prosecuted by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Margaret E. Gandy and Rena Paul are in charge of the prosecution.
The Defendants:
MARQUEZ BRIDGES
Age: 26
Atlanta, GeorgiaMICAH ISAIAH DESUZE
Age: 24
Atlanta, GeorgiaDOMINIQUE CHANEL FAIRNOT
Age: 26
Atlanta, GeorgiaJEREMY SANCHEZ
Age: 26
Atlanta, GeorgiaASHANTI SEASE-MATTHEWS
Age: 23
Atlanta, GeorgiaOMAR JERMAINE WALKER
Age: 26
Savannah, GeorgiaE.D.N.Y. Docket No. 16-CR-326
Shelby County Woman Indicted for $328,000 Bank Fraud Embezzlement SchemeRead the Press Release
BIRMINGHAM – A federal grand jury today charged a Shelby County woman in connection with a $328,000 bank fraud embezzlement scheme, as well as with aggravated identity theft, witness tampering, misusing a Social Security number and filing false tax returns, announced U.S. Attorney Joyce White Vance, U.S. Postal Inspector Frank Dyer, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Veronica Hyman-Pillot.
A 47-count superseding indictment filed in U.S. District Court charges REBECCA ANN “BECKY” NORTON, 46, with 30 bank fraud counts, 12 aggravated identity theft counts, three counts of filing false tax returns, and one count each of misusing a Social Security number and witness tampering. The superseding indictment expands charges returned against Norton in a June indictment.
Norton worked as office manager and bookkeeper for Total Fire Protection in Alabaster. Between August 2013 and August 2015, she used a variety of methods to fraudulently take the $328,000 from bank accounts held by Total Fire Protection and related companies, according to the July indictment.
Norton committed aggravated identity theft by using personal identification information of several other individuals to facilitate her fraud, according to the indictment. It also charges that once Norton knew she was under federal and state investigation, she tried to contact two of her victims to convince them not to pursue criminal charges against her.
The superseding indictment also charges that, between 2011 and 2012, Norton drew unemployment benefits from the State of Alabama under another person’s Social Security number, thereby misusing that Social Security number and committing aggravated identity theft against that person.
Finally, the superseding indictment charges that Norton filed false federal income tax returns for 2010, 2013 and 2014 by underreporting her taxable income during each relevant year.
If convicted, Norton faces maximum prison sentences of 30 years for each bank fraud count, 20 years for witness tampering, five years for misuse of a Social Security number, and three years for each count of filing a false tax return. In addition to these sentences, Norton faces a mandatory two years in prison for each aggravated identity theft conviction.
The Postal Inspection Service and IRS Criminal Investigation Division investigated the case, with assistance from the Alabaster Police Department. Assistant U.S. Attorneys Melissa Atwood and John B. Ward are prosecuting the case.
An indictment contains only charges. The defendant is considered innocent unless and until proven guilty.
###
Sex Offender Admits to Failing to Register in R.I.Read the Press Release
PROVIDENCE, R.I. – Vernon G. Massie, 49, of Cranston, pleaded guilty in federal court in Providence today to violating the Sex Offender Registration and Notification Act (SORNA). Massie failed to register as a sex offender in Rhode Island, having moved to Cranston from Monroe, North Carolina, where he is a convicted and registered sex offender. SORNA requires that a registered sex offender notify law enforcement of a change of address.
Massie’s guilty plea to one count of failure to register as a sex offender having travelled in interstate is announced by United States Attorney Peter F. Neronha, United States Marshal Jamie A. Hainsworth, and Cranston Police Chief Michael J. Winquist.
According to court records, on August 24, 2015, an arrest warrant was issued for Massie by the State of North Carolina charging Massie, who was convicted in September 2011 in Union County Superior Court of indecent liberties with a minor, with failing to update his residence in accordance with North Carolina sex offender laws.
According to court documents, on April 15, 2016, the Cranston Police Department responded to a 911 call for a domestic assault in that city. The female victim identified Vernon Massie as her fiancé and the person who allegedly assaulted her. She alleged to police that Massie had choked her, and that when she attempted to call 911 for emergency assistance he prevented her from calling and strangled her a second time. Masse had fled the residence prior to the arrival of Cranston Police. An arrest warrant was issued for Massie charging him with domestic strangulation, domestic assault, domestic disorderly and refusal to relinquish a phone.
During the investigation it was determined that Massie was a non-compliant sex offender in the State of North Carolina, with active warrants for his arrest. It was also determined that Massie had failed to register as a sex offender in Rhode Island as required by SORNA. The Cranston Police Department requested the assistance of the U.S. Marshals to locate and arrest Massie. Massie was located and arrested by U.S. Marshals on April 22, 2016, at a hotel in Springfield, Mass.
Massie, who has been detained since his arrest, will be sentenced by U.S. District Court Judge John J. McConnell, Jr., on October 26, 2016, for violating SORNA. Following the completion of his federal sentence, Mr. Massie will be turned over to the State of Rhode Island to face domestic violence charges and then to the State of North Carolina on a charge of being a non-compliant sex offender.
The case in U.S. District Court in Providence is being prosecuted by Assistant U.S Attorney Gerard B. Sullivan.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Registered Broker Pleads Guilty to Securities Fraud for Particpating in A $131 Million Market Manipulation SchemeRead the Press Release
Earlier today, Naveed Khan, a registered broker, pleaded guilty to securities fraud in connection with the fraudulent market manipulation of ForceField Energy Inc. (ForceField), a publicly-traded company listed on the NASDAQ under the ticker symbol “FNRG.” The guilty plea was entered before United States Magistrate Judge Ramon E. Reyes, Jr. at the federal courthouse in Brooklyn, New York. When sentenced, Khan faces up to 20 years in prison, as well as restitution, criminal forfeiture, and a fine.
The guilty plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
According to court filings and facts presented at the plea hearing, between January 2009 and April 2015, the defendant, together with others, engaged in a scheme to defraud investors in ForceField, a purported worldwide distributor and provider of LED lighting products and solutions, by artificially controlling the price and volume of traded shares of ForceField through, among other means: (1) using nominees to purchase and sell ForceField stock without disclosing this information to investors and potential investors; (2) orchestrating the trading of ForceField stock to create the appearance of genuine trading volume and interest in the stock; and (3) concealing payments to stock promoters and broker dealers who promoted and sold ForceField stock to investors and potential investors while claiming to be independent of the company. The fraudulent scheme caused a loss of approximately $131 million to the investing public.
Between October 2014 and April 2015, a ForceField executive paid kickbacks to Khan in exchange for purchasing ForceField stock in his clients’ brokerage accounts. Khan and ForceField did not disclose to Khan’s clients the kickbacks Khan was receiving for purchasing ForceField stock. Khan and his co-conspirators took pains to conceal their participation in the fraudulent scheme by using prepaid, disposable cellular telephones and encrypted, content-expiring messaging applications to communicate with each other, and by paying kickbacks in cash.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Christopher L. Nasson and Mark E. Bini are in charge of the prosecution.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit ww.StopFraud.gov.
The Defendant:
NAVEED KHAN
Age: 33
Residence: Staten Island, New YorkE.D.N.Y. Docket No. 16-CR-234 (BMC)
Rapid City Man Indicted for Failure to RegisterRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register.
Donald Morris Kills Warrior, age 39, was indicted on April 19, 2016, and appeared before U.S. Magistrate Judge Daneta Wollmann on July 21, 2016. He pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Kills Warrior failing to register under the Sex Offender Registration and Notification Act as required. The charge is merely an accusation and Kills Warrior is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Kills Warrior was detained pending trial. A trial date has not been set.
Raleigh County felon pleads guilty to Federal gun crimeRead the Press Release
BECKLEY, W.Va. – A convicted felon from Sophia pleaded guilty today to a federal gun charge, announced Acting United States Attorney Carol Casto. Gene A. James, 46, entered his guilty plea to being a felon in possession of a firearm.
James admitted that on February 23, 2016, while in Sophia, he possessed a Leinad model DD derringer pistol. James was prohibited from possessing any firearm under federal law because of a 2014 conviction in United States District Court for the Southern District of West Virginia for distribution of oxycodone.
James faces up to 10 years in federal prison when he is sentenced on November 2, 2016.
The United States Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. The plea hearing was held before United States District Judge Irene C. Berger.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
-
Follow us on Twitter: SDWVNews
-
Pawtucket Man Sentenced on Drug Trafficking, Firearm ChargesRead the Press Release
PROVIDENCE, R.I. – Jose Gomez, 27, of Pawtucket, was sentenced today to 24 months in federal prison on drug trafficking and firearm charges. Gomez was arrested in September 2015, following an investigation by ATF agents into Gomez’s drug trafficking activities, which included purchases of crack cocaine from Gomez in exchange for cash and firearms.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Gomez to serve three years supervised upon completion of his prison term. Gomez pleaded guilty on April 1, 2016, to three counts of distribution of crack cocaine, one count of possession with the intent to distribute crack cocaine, and one count of being a felon in possession of a firearm.
Gomez’s sentence is announced by United States Attorney Peter F. Neronha and Lawrence J. Panetta , Interim Special Agent in Charge of the Boston Field Division of ATF.
According to court documents and information presented to the court, on August 31 and September 3, 2015, Gomez sold nearly three grams of crack cocaine for $200 in cash to an undercover ATF agent. On September 8, 2015, the ATF undercover agent arranged to meet with Gomez to trade two firearms for crack cocaine and $200 in cash. Two days later, Gomez and the undercover agent met outside Gomez’s residence and exchanged $200 in cash and a plastic bag containing crack cocaine for two firearms, a .380 caliber handgun and a 9mm handgun. Gomez was immediately detained by ATF agents. Following his arrest, Gomez told ATF agents he intended to sell the firearms to another individual.
According to information presented to the court, a court authorized search of Gomez’s residence moments after Gomez was detained resulted in the discovery of approximately four grams of crack cocaine on a digital scale which was stored on a window sill inside a bedroom. Two unattended children, ages one and two, were located in the bedroom. The bedroom doorway had been blocked to prevent the children from leaving the room.
Gomez has been detained in federal custody since his arrest on September 10, 2015.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
ATF was assisted in the investigation of this matter by the Pawtucket and Central Falls Police Departments, and the Special Investigations Unit at the Adult Correctional Institutions.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Ophthalmology Biller Pleads Guilty to Healthcare Fraud and Conspiring to Defraud the Internal Revenue ServiceRead the Press Release
PORTLAND, Ore. – The former practice manager for Eye Care Services, Inc. appeared in federal court yesterday and admitted to his role in defrauding Medicare and other public and private health care plans and conspiring to defraud the Internal Revenue Service (IRS). Anthony Curtis Neal, 40, pled guilty to health care fraud and conspiracy to defraud the IRS before U.S. District Judge Robert E. Jones and admitted that he, along with his deceased father, Dr. Dean Neal, committed health care fraud and tax related crimes between 2007 and 2014. According to the plea agreement, the government will be seeking a sentence of imprisonment and restitution to Medicare, private insurers and the IRS. The actual sentence will be determined by Judge Jones at Anthony Neal’s sentencing hearing which is scheduled for January 4, 2017.
Court records indicate that Anthony Neal worked as the practice manager for Eye Care Services Inc., dba 20/20 Eye Care, an ophthalmology clinic located at 500 NW 20th Suite 100, Gresham, Oregon. Neal worked in conjunction with his father, Dr. Dean Neal, the long-time primary doctor at Eye Care Services (ECS). In addition to serving as the practice manager, Neal was primarily responsible for the insurance billing services. He, along with his father, managed the practice, established testing protocols for patients, and set all business related polices.
Anthony Neal admitted the health care fraud scheme involved three false and fraudulent components: billings for medically unnecessary tests, up-coded billings, and double billings. To increase income, ECS required that many patients receive a battery of diagnostic tests, many of which were not medical necessity. Claims for these medically unnecessary tests were submitted to Medicare and private insurers for reimbursement. Neal also engaged in a practice of up-coding certain tests by claiming ECS was entitled to a higher than warranted reimbursement rate. Finally, ECS was supposed to be paid one amount for tests performed on both eyes, but it fraudulently submitted bills to health insurance plans that resulted in ECS being paid twice, once for each eye. The government alleges the loss attributable to the health care fraud scheme is $1,702,567.89.
As to the conspiracy to defraud the IRS, Anthony Neal admitted to conspiring to conceal ECS income from the IRS and he failed to report business or personal income to the IRS for tax years 2006 – 2013. The government alleges the loss attributable to the tax conspiracy scheme is $817,378.77.
The case was investigated by the U.S. Department of Health and Human Services - Office of Inspector General, the FBI, and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorneys Donna Brecker Maddux and Seth Uram.
Operation Cease Fire Yields Multiple Federal and State Arrests on Firearms and Drug OffensesRead the Press Release
Orlando, FL – United States Attorney A. Lee Bentley III, along with Daytona Beach Police Chief Michael Chitwood, Assistant Special Agent in Charge Trevor A. Velinor of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and State Attorney R.J. Larizza, announces the arrest of 20 individuals (link to summary chart) as part of a joint law enforcement operation named “Operation Ceasefire.” As part of this operation, 11 individuals have been federally charged with firearms-related offenses. Penalties for the various offenses range from 5 years, up to life, in federal prison. Nine individuals have also been charged by the state with drug and firearms-related offenses. These cumulative arrests are the result of a violent crime initiative jointly undertaken by the United States Attorney’s Office, ATF, the Daytona Beach Police Department, and the State Attorney’s Office for the Seventh Judicial Circuit.
"Fighting violent crime is a top priority of my Office," said U.S. Attorney Lee Bentley. "We’re doing that by prosecuting felons possessing firearms and drug traffickers in areas most victimized by violent crime. We are very grateful for the hard work and dedication of ATF and our local partners, the Daytona Beach Police Department, and the State Attorney’s Office."
An indictment is merely a formal charge that a defendant has violated one or more of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
Additional cases have already been prosecuted as part of this joint violent crime initiative, including five federal cases and two state cases.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Daytona Beach Police Department. The federal cases will be prosecuted by Assistant United States Attorneys Jackson Boggs, Chauncey Bratt, Emily Chang, Vince Chiu, Tiffany Cummins, Embry Kidd, Shawn Napier, Ilianys Rivera-Miranda, and Sean Shecter.
These cases are prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney Bentley, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to combat violent crime in our communities.
Nine Charged with Distributing Drugs in Bristol CountyRead the Press Release
BOSTON – Nine individuals were charged in U.S. District Court in Boston in connection with distributing heroin, cocaine, acetylfentanyl and fentanyl in the Bristol County area.
On June 30, 2016, five men and one woman from southeastern Massachusetts and Rhode Island were charged in a criminal complaint with conspiring to distribute cocaine, and three New Bedford residents, in a separate but related criminal complaint, were charged with conspiring to distribute heroin. Today, a federal grand jury indicted eight of these individuals in two separate indictments. A ninth individual, Sharik Mendes, was charged by Information with conspiring to distribute and possess with intent to distribute heroin. The defendants will be arraigned in U.S. District Court in Boston on Aug. 2 and 4, 2016.
The first indictment issued by the federal grand jury charges the following defendants with the following crimes:
-
Luis Lopez, a/k/a “Juan Gonzalez,” 43, of Tiverton, R.I. and Fall River: conspiracy to distribute and possess with the intent to distribute five kilograms or more of cocaine; conspiracy to distribute and possess with the intent to distribute heroin and fentanyl; conspiracy to launder monetary instruments through Hillside Auto Sales, a used car business located in Fall River; and possession with the intent to distribute a mixture and substance containing a detectable amount of fentanyl and acetylfentanyl.In addition, the indictment seeks forfeiture of Lopez’s three houses, used car business, vehicles and motorcycles and $15,000 in proceeds from the drug sales.Lopez is currently in federal custody.
-
Nuno Fonseca, a/k/a “Farigno,” 37, of Fall River: conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine; and, conspiracy to distribute and possess with the intent to distribute heroin and fentanyl.Fonseca is currently a fugitive from justice.
-
Chindy Diaz, 38, of New Bedford: conspiracy to distribute and possess with the intent to distribute five kilograms or more of cocaine.Diaz is currently in federal custody.
-
Jorge Sanchez-Lopez, a/k/a “Pri,” and “Cuz,” 42, of Pawtucket, R.I.: conspiracy to distribute and possess with the intent to distribute five kilograms or more of cocaine.Sanchez-Lopez is currently a fugitive from justice.
-
Tyson Britto, a/k/a “Peanut,” 31, of Fall River: conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine; conspiracy to distribute and possess with the intent to distribute heroin and fentanyl; and, possession with the intent to distribute heroin, cocaine, fentanyl and acetylfentanyl.Britto is currently federal custody.
-
Israel Santiago, a/k/a “Reysito,” 39, of Fall River: conspiracy to distribute and possess with the intent to distribute cocaine.Santiago has been released on conditions pending trial.
The second indictment issued by the federal grand jury charges the following defendants with the following crimes:
-
Tyson Depina, a/k/a “Tru,” 40, of New Bedford: conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin; and possession with the intent to distribute heroin.Depina is currently federal custody.
-
Eric Desousa, a/k/a “E,” 22, of New Bedford: conspiracy to distribute and possess with the intent to distribute heroin.Desousa has been released on conditions pending trial.
According to court documents, Luis Lopez was the head of a drug trafficking organization that imported hundreds of kilograms of cocaine from Puerto Rico to New Bedford and Fall River. Jorge Sanchez-Lopez coordinated the shipments of cocaine through the U.S. Mail with the assistance of Chindy Diaz, who received cocaine-filled packages of Lopez’s behalf and delivered it to Lopez at his Fall River residence. Israel Santiago also allegedly helped coordinate the receipt of cocaine on behalf of Lopez. Lopez then sold the cocaine to other drug dealers, including Tyson Britto and Nuno Fonseca. During the course of the investigation, federal agents interception at least three cocaine-filled packages bound for Lopez.
In a related investigation, federal agents learned that Sharik Mendes, who owns and operates the HEART gym in New Bedford, was allegedly receiving large quantities of heroin from at least two suppliers based in Providence. It is alleged that Mendes employed Tyson Depina to distribute the heroin on his behalf. Intercepted phone calls showed that Depina was consistently selling heroin to users and lower-level dealers, and that he was providing Mendes with $1,000 to $2,000 a day for this heroin. In April 2016, Depina was arrested for possessing heroin which he attempted to destroy incident to his arrest. In addition, it is alleged that Depina was also supplied heroin by Desousa, who was distributing it on behalf of a higher-level drug dealer. In early June 2016, Desousa was arrested with 30 grams of heroin in his pockets after agents saw him preparing for a heroin sale. A search of his New Bedford residences recovered 300 grams of heroin.
The Information filed on July 26, 2016 charges Sharik Mendes with conspiracy to distribute and possess with the intent to distribute heroin. Mendes is not detained pending entry of guilty plea and sentencing.
The charges carry the following maximum penalties. 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.
-
Conspiracy to distribute and possess with the intent to distribute heroin:
-
100 grams or more: a minimum of five years and no greater than 40 years in prison, a lifetime of supervised release and a fine of $5 million.(Applicable to Depina).
-
A quantity of heroin: no greater than 20 years in prison, a lifetime of supervised release and a fine of $1 million.(Applicable to Lopez, Britto, Fonseca and Desousa).
-
-
Conspiracy to distribute and possess with the intent to distribute cocaine:
-
Five kilograms or more: a minimum of 10 years and a maximum of life in prison, a lifetime of supervised release and a fine of $10 million. (Applicable to Lopez, Diaz, and Sanchez-Lopez).
-
500 grams or more: a minimum of five years and no greater than 40 years in prison, a lifetime of supervised release and a fine of $5 million.(Applicable to Fonseca and Britto).
-
A quantity of cocaine: no greater than 20 years in prison, a lifetime of supervised release and a fine of $1 million.(Applicable to Santiago).
-
-
Possession of cocaine, heroin, acetylfentanyl, and fentanyl with the intent to distribute: no greater than 20 years in prison, a lifetime of supervised release and a fine of $1 million.(Applicable to Desousa, Depina, Lopez, and Britto).
-
Conspiracy to launder monetary instruments: no greater than 20 years in prison, three years of supervised release, and a fine of $250,000.(Applicable to Lopez).
United States Attorney Carmen M. Ortiz; Bristol County District Attorney Thomas M. Quinn; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Fall River Police Chief John M. Souza; New Bedford Police Chief Joseph C. Cordeiro; Fairhaven Police Chief Michael Myers; and Bristol County Sheriff Thomas M. Hodgson, made the announcement today. The cases are being prosecuted by Assistant U.S. Attorney Eric Rosen of Ortiz’s Narcotics and Money Laundering Unit.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
-
New York Tax Return Preparer Convicted of Aiding and Assisting in the Preparation of False Tax ReturnsRead the Press Release
A Queens, New York, tax return preparer was convicted by a federal jury yesterday in the U.S. District Court for the Eastern District of New York of preparing false income tax returns for clients of her tax return preparation business, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Williesteina Jacobs was convicted of 21 counts of aiding and assisting in the preparation of false income tax returns after a seven day jury trial. According to court documents and testimony at trial, between 2007 and 2010, Jacobs operated International Professional Business Services, a tax preparation business located in South Richmond Hill, New York, and Jamaica, New York. During the years at issue, Jacobs prepared false individual income tax returns on behalf of clients for submission to the Internal Revenue Service (IRS). These tax returns claimed false losses from Schedule C businesses and grossly inflated or wholly fictitious Schedule A deductions. The false items on these returns resulted in the clients receiving larger tax refunds than they were entitled to receive.
“With yesterday’s verdict, Williesteina Jacobs is held accountable for her crimes against the United States and the harm she caused to our nation’s tax system,” said Principal Deputy Assistant Attorney General Ciraolo. “Tax return preparers owe a duty to their clients to prepare accurate and honest returns, and when they willfully fail to do so, the Department stands ready with its partners in the IRS to investigate and aggressively prosecute these offenders.”
“Taxpayers rely on tax return preparers to prepare accurate tax returns,” said Chief Richard Weber of IRS-Criminal Investigation. “Return preparers who willfully falsify tax returns in order to generate more business for themselves violate the trust their clients place in them and violate the law. The verdict reinforces our commitment to identify and prosecute crooked tax preparers.”
U.S. District Judge William F. Kuntz for the Eastern District of New York did not set a date for the sentencing hearing. The defendant faces a statutory maximum sentence of three years in prison and a maximum fine of $250,000 on each count of conviction.
Principal Deputy Assistant Attorney General Ciraolo commended agents of IRS-Criminal Investigation, who investigated the case and Tax Division Trial Attorneys Yael T. Epstein and Andrew J. Kameros, who prosecuted the case, and Paralegal Carol Saunders of the Tax Division, who assisted the trial team.
New York Man Sentenced to 157 Months in Federal Prison for Bank RobberyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a New York man was sentenced yesterday in federal court in Scranton by United States District Judge James M. Munley, to serve 157 months (13 years) in prison on the charges of conspiracy, armed bank robbery, and use of a firearm in furtherance of a crime of violence.
According to United States Attorney Peter Smith, Jemel Laquan King, a/k/a “Melo,” age 38, was found guilty of the federal crimes after a trial held in Scranton in May 2016. A federal jury found King guilty of conspiring with others to commit the November 26, 2014 armed robbery of the NBT Bank located on Keyser Avenue in Scranton. Approximately $111,000 was stolen during that robbery. In addition to the prison term, Judge Munley also ordered that King be supervised by a probation officer for three years following his release from prison.
Those previously charged with conspiring with King to commit the robbery of the NBT Bank include Jule Futrell, age 43, Endicott, New York, and Dorian Whitehead, age 30, Binghamton, New York. Both have entered guilty pleas and are await sentencing.
King was indicted by a federal grand jury on May 12, 2015, after an investigation conducted by the Federal Bureau of Investigation – Scranton and Binghamton offices. The case was prosecuted by Assistant United States Attorney Michelle Olshefski.
# # #
New Orleans Nurse Pleads Guilty to Conspiracy to Receive Illegal KickbacksRead the Press Release
U.S. Attorney Kenneth A. Polite announced that SHEILA HOPKINS, age 63, of New Orleans, pled guilty today to one count of conspiracy to receive illegal kickbacks.
On March 12, 2015, HOPKINS was indicted along with 19 other defendants in a 26-count Indictment charging approximately $30,052,295 in Medicare fraud and the BP fraud.
HOPKINS was a Registered Nurse (RN) at Abide Home Care Services, a home health company operated by owner Lisa Crinel. HOPKINS and other nurses, aides, recruiters and marketers were paid about $150 - $300 for each referral of a Medicare beneficiary to Abide. Abide then fraudulently billed Medicare for medically unnecessary home health services. HOPKINS admitted to receiving a $400 payment for her referral of a Medicare beneficiary to Abide.
HOPKINS faces a maximum term of imprisonment of five years, a $250,000 fine, and three years of supervised release following imprisonment. U.S. District Judge Susie Morgan set sentencing for February 1, 2017.
U.S. Attorney Polite praised the work of the Special Agents of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorneys Patrice Harris Sullivan, Sharan Lieberman, Hayden Brockett and Andre Lagarde are in charge of the prosecution.
Nebraska Man Sentenced for Second Degree MurderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Nebraska man convicted of Second Degree Murder was sentenced on May 9, 2016, by U.S. District Judge Roberto A. Lange.
Christopher David Edenso, Sr., age 26, was sentenced to 185 months in custody, followed by 3 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Edenso was indicted by a federal grand jury on July 14, 2015. He pled guilty on January 7, 2016.
In the early morning of June 15, 2015, Edenso was at his home with his infant son, in the Sicangu Village, in Todd County, South Dakota. Edenso’s wife was at work and Edenso was the sole caregiver for the infant. At approximately 5:30 am, the infant awoke and began to cry. Edenso became angry with the infant’s crying, picked him up by his legs, held him upside down, and shook him violently. Edenso also grabbed the infant by placing both of his hands around the baby’s waist and forcefully slammed the infant onto the bed at least three times. The infant became quiet. Edenso wrapped the infant in a blanket, laid him on the bed, and then fell asleep.
Edenso’s wife returned from work at approximately 8:00 am and found Edenso asleep in the couple’s bed with the infant lying beside him. The infant had blood coming from his mouth. Edenso’s wife picked up the infant and he was unresponsive. His wife became hysterical, woke Edenso up, and called 911. Edenso and his wife then rushed the infant to the Cherry County Hospital in Valentine, Nebraska. Medical personnel at Cherry County Hospital attempted to resuscitate the infant; however, the infant was pronounced dead at approximately 8:45 am on June 15, 2015. An autopsy was performed and revealed the cause of death was due to blunt force trauma to the head.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and Federal Bureau of Investigation. Assistant U.S. Attorney Carrie G. Sanderson prosecuted the case.
Edenso was immediately turned over to the custody of the U.S. Marshals Service.
Multiple defendants plead guilty in Charleston to Federal crimesRead the Press Release
CHARLESTON, W.Va. – Three defendants appeared in Charleston today and pleaded guilty to federal charges, announced Acting United States Attorney Carol Casto.
Ronald Sayles, 39, of Charleston, pleaded guilty to being a felon in possession of a firearm. Sayles admitted that in December 2014, he possessed two handguns, a Taurus .32 caliber pistol and a Ruger 9 mm pistol, at his Charleston residence. Charleston Police Department officers discovered the guns while executing a search warrant on December 7, 2014. Sayles was prohibited from possessing any firearm under federal law because of a 2002 felony drug conviction in Kanawha County Circuit Court. Sayles faces up to 10 years in federal prison when he is sentenced on October 20, 2016.
Howard Williamson, 55, of Madison, entered his guilty plea to distribution of oxycodone. Williamson admitted that on July 23, 2015, and again on October 25, 2015, he sold oxycodone pills to a confidential informant working with law enforcement. Williamson further admitted that the drug deals took place at his Madison residence. Williamson faces up to 20 years in federal prison when he is sentenced on November 2, 2016.
Tyruss Jackson, 34, pleaded guilty to possession of a weapon while an inmate of a federal prison. Jackson admitted that on September 18, 2015, he possessed a handcrafted knife while he was serving time in the Federal Correctional Institution at McDowell. The handcrafted wooden weapon, commonly referred to as a “shank,” was sharpened to a point, measured slightly over six inches in length, had tape wrapped around one end to serve as a handle, and a had a string tied to the handle to serve as a lanyard. A Bureau of Prisons staff member discovered the item concealed in Jackson’s pants. Jackson is scheduled to be sentenced on August 30, 2016. He faces a year and two months in federal prison to be served after he completes his current undischarged sentence.
The Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation of Sayles. Assistant United States Attorney John J. Frail is handling the prosecution of Sayles. The plea hearing for Sayles was held before United States District Judge Joseph R. Goodwin.
The Route 119 Drug Task Force conducted the investigation of Williamson. Assistant United States Attorney John J. Frail is responsible for the prosecution of Williamson. The Williamson plea hearing was held before United States District Judge Thomas E. Johnston.
The case against Jackson was investigated by the Federal Bureau of Prisons. Assistant United States Attorney John L. File is in charge of the prosecution of Jackson. The Jackson plea hearing was held before Senior United States District Judge David A. Faber.
The case against Sayles was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
The Williamson case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
-
Follow us on Twitter: SDWVNews
-
Mission Man Charged with Possession of Stolen Firearm and Possession of Firearm by a Prohibited PersonRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Possession of Stolen Firearm and Possession of Firearm by a Prohibited Person.
Harold Fuller, Jr., age 37, was indicted on July 19, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 22, 2016, and pled not guilty to the Indictment.
The maximum penalties upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund on each count. Restitution may also be ordered.
The Indictment alleges that on or about February 22, 2016, Fuller knowingly possessed a stolen revolver. Fuller, having previously been convicted of a misdemeanor crime, was prohibited from possessing a firearm.
The charges are merely accusations and Fuller is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services, and the Bureau of Alcohol, Tobacco, Firearms and Explosive. Assistant U.S. Attorney Carrie G. Sanderson is prosecuting the case.
Fuller was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mexican citizen pleads guilty to lying on passport applicationRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that a man from Mexico pleaded guilty Monday to submitting false information when applying for a passport.
Juan Carlos Guzman, 36 of Mexico, entered a conditional guilty plea before U.S. Magistrate Judge Patrick Hanna, for one count of making a false statement on a passport application. The plea will become final when accepted by U.S. District Judge Patricia Minaldi. According to the guilty plea, Guzman used another individual’s name, birthdate and social security number and submitted the documents to the Iberia Parish Clerk of Court in New Iberia, La., on March 31, 2015 to process the passport application. Guzman was in the country illegally.
Guzman faces up to 10 years in prison, three years of supervised release and a $250,000 fine. A sentencing date was not set.
The U.S. State Department conducted the investigation. Assistant U.S. Attorney Dominic Rossetti is prosecuting the case.
Mexican National Sentenced to Prison for Conspiring with Former Doña Ana County Clerk’s Office Employee to Commit Federal Theft and Identity FraudRead the Press Release
ALBUQUERQUE – Armando Gutierrez-Torres, 51, a Mexican national, was sentenced yesterday in federal court in Las Cruces, N.M., for his conviction on conspiracy charges arising out of a scheme to steal money from the United States by using the identities of others to generate and cash fraudulent federal income tax refund checks. Gutierrez-Torres was sentenced to 21 months in federal prison; he will be deported after completing his prison sentence.
Gutierrez-Torres’ codefendant Maria L. Ceniceros, 44, of Anthony, N.M., previously was sentenced on June 10, 2016, to 18 months in prison followed by three years of supervised release for her conviction on theft of government property and aggravated identity theft charges arising from the scheme.
Ceniceros and Gutierrez-Torres were charged in June 2015, with conspiracy to commit theft of government property and aggravated identity theft in a criminal complaint. According to the criminal complaint, Ceniceros and Gutierrez-Torres conspired with each other and others to perpetuate the scheme, and that Ceniceros abused her position as a Document Technician at the Doña Ana County Clerk’s Office to facilitate the scheme.
Law enforcement authorities learned of the scheme in mid-May 2015, when Ceniceros approached a co-worker in the Doña Ana County Clerk’s Office and attempted to solicit his participation in the scheme. The co-worker reported the solicitation to law enforcement authorities and agreed to assist officers in conducting an undercover investigation into Ceniceros and Gutierrez-Torres. During the investigation, Ceniceros provided three fraudulent federal income tax refund checks to the co-worker so that he could cash the checks with the understanding that the proceeds would be divided between Ceniceros, Gutierrez-Torres and the co-worker. Ceniceros and Gutierrez-Torres were arrested on related-state charges on May 29, 2015.
Gutierrez-Torres was sentenced based on his guilty plea to a felony information charging him with conspiracy to commit theft of public money and conspiracy to commit aggravated identity theft. In entering the guilty plea, Gutierrez-Torres admitted that in Nov. 2014, he asked Ceniceros to provide identifiers for use in filing fraudulent federal income tax returns and obtain fraudulent refund checks. Gutierrez-Torres also asked Ceniceros to mail fraudulent federal income tax returns to the IRS and cash refund checks in the total amount of $11,963.73.
Ceniceros pled guilty in April 2016, to a similar felony information and admitted accessing the Voter Registration database at work and to record the names, dates of birth and social security numbers of 111 people whose identities she knew would be used to file fraudulent federal income tax returns in order to obtain fraudulent refund checks. She also admitted mailing fraudulent federal income tax returns and cashing refund checks for Gutierrez-Torres.
This case was investigated by IRS Criminal Investigation and the Doña Ana County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.
Mexican National Pleads Guilty to Illegally Possessing a FirearmRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ALBERTO GONZALEZ-MORALES, age 40, a citizen of Mexico, pled guilty today to possession of a handgun by a person illegally present in the United States, in violation of Title 18, United States Code, Section 922(g)(5)(A).
According to the court documents, on or about March 15, 2016, GONZALEZ-MORALES, an alien present illegally in the United States, was found in possession of a firearm.
GONZALEZ-MORALES faces a maximum term of imprisonment of ten years, a fine of $250,000, three years supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Susie Morgan set sentencing for November 2, 2016.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
McAlester Man Pleads Guilty to Drug DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that ZACHERY SCOTT KERNS, age 29, of McAlester, Oklahoma, pled guilty to DISTRIBUTION OF FENTANYL, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C), punishable by not more than 20 years imprisonment, up to $1,000,000.00 fine or both.
The Information alleged that on or about December 4, 2014, in the Eastern District of Oklahoma, the defendant, ZACHERY SCOTT KERNS, did knowingly and intentionally distribute fentanyl, a Schedule II controlled substance.
The charges arose from an investigation by the Pittsburg County Sheriff’s Department and the Drug Enforcement Administration.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorneys Shannon Henson and Timothy Hammer represented the United States.
Many woman pleads guilty to firearm chargeRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that a woman from Many pleaded guilty Tuesday to possessing a short-barreled shotgun.
Christi Rene McPherson, 36, of Many, La., pleaded guilty before U.S. District Judge Dee D. Drell to one count of unlawful possession of a short-barreled shotgun. According to information submitted at the guilty plea, McPherson contacted the Natchitoches Parish Sheriff’s Office in October of 2015, to find out if any of the firearms that she had allegedly taken from the home of her ex-boyfriend had been stolen. The deputy checked the serial numbers and informed McPherson that one of them had been stolen from the home of a local resident. The deputy then attempted to set up a meeting with McPherson to take possession of the firearm, but she failed to show up. McPherson was later found at a convenience store in possession of a black bag containing a 12-gauge shotgun with a barrel less than 18 inches, five grenade simulators, a Kevlar vest and other firearms. McPherson was also found to be in possession of 3 grams of methamphetamine and 12 pills of Lorazepam. Federal law requires that shotguns with barrels shorter than 18 inches long be registered.
McPherson faces up to 10 years in prison, three years of supervised release, a $10,000 fine and forfeiture of the seized items. A sentencing date of October 31, 2016, was set.
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to promote firearm safety and to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm.
The ATF and the Natchitoches Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney David C. Joseph is prosecuting the case.
Long Island Dermatologist Settles Claims That He Defrauded Medicare and MedicaidRead the Press Release
United States Attorney Robert L. Capers and Scott J. Lampert, Special Agent-in-Charge, Health and Human Services, Office of Inspector General (HHS-OIG), New York Region, today announced that the United States has entered into a civil settlement agreement with Deremedx Dermatology, P.C. d/b/a Dermatique and Dr. Barry A. Solomon to resolve a case brought under the federal False Claims Act. Solomon is the owner of, and sole practitioner at, Dermatique. The agreement resolves an investigation involving allegations that, in contravention of Medicare and Medicaid regulations, Solomon engaged in a host of fraudulent billing practices and submitted false claims to government healthcare programs.
Under the terms of the civil settlement agreement, Solomon and Dermatique will pay a total of $302,227.11. Solomon will also enter into an Integrity Agreement to provide compliance oversight for the next three years. The civil settlement agreement was approved by United States District Court Judge Leonard D. Wexler.
The government’s investigation revealed that between approximately June 2009 through at least 2014, Solomon repeatedly billed for services performed as if he were supervising the procedures even though he was not in the office during the procedures and was, at least in some cases, out of the country. Solomon also billed for so-called “impossible days,” in which he submitted claims for more hours than he could have possibly worked. In one of those instances, Solomon billed Medicare for more than 26 hours in one calendar day. Finally, the investigation revealed that Solomon occasionally double billed Medicare for certain examinations and procedures.
The investigation commenced with the filing of a qui tam complaint by Relator Diane Vitale. Under the federal False Claims Act statute, a private individual who has uncovered fraud against the government may file a suit in federal court on behalf of the United States. If the United States is successful in resolving those claims, the individual who filed the complaint may receive a share of the recovery.
“Health care providers who engage in fraudulent billing practices, including billing for services and procedures they did not perform, jeopardize critical government healthcare programs. The message today is clear – if you engage in such conduct you will be held to account,” stated U.S. Attorney Capers.
“Solomon’s fraudulent billing practices compromised the integrity of taxpayer-funded health programs, and won’t be tolerated” said Lampert, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “HHS-OIG is committed to holding healthcare providers accountable for the services they provide to our most vulnerable citizens.”
The United States’ case was handled by Assistant U.S. Attorney Kenneth M. Abell.
The Defendant:
BARRY A. SOLOMON
Age: 59
Residence: Long Beach, New YorkLaw Enforcement Arrests Gang Members on Federal Sex Trafficking ChargesRead the Press Release
FORT WORTH, Texas — Following an early morning operation on Thursday, July 21, 2106, conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (ICE HSI), the Fort Worth Police Department and the U.S. Marshal Service, six individuals, most with ties to the Polywood Crips street gang in Fort Worth, Texas, are in federal custody on charges outlined in a criminal complaint filed earlier this month, and unsealed today, announced U.S. Attorney John Parker of the Northern District of Texas. Two additional defendants remain fugitives.
The six defendants were arrested at three locations in Fort Worth. During the course of the arrests, among other items, law enforcement seized numerous cell phones, a computer, a tablet and a stolen firearm.
The following individuals made initial appearances before U.S. Magistrate Judge Jeffrey L. Cureton on Friday, July 22, 2016. Judge Cureton ordered each detained pending detention hearings this week.
Those charged and in custody include:
Diwone Nobles, a/k/a “Pooh,” 31
Stanley Johnson, a/k/a “Pee Wee,” 24
Audrey Lane, a/k/a “Spud,” 29
Alvin Lane, a/k/a “Spank,” 32
Jessica Arnold, 23
Serrah Arnold, a/k/a “Kristen,” 27Chad Johnson, a/k/a “Chad Ocho Hood Fame,” 24, and Deon Bonner, a/k/a “Spanish Fly,” 25, were also charged, and they are currently fugitives.
The complaint alleges that from approximately October 2013 to April 21, 2016, these eight defendants committed the offenses of sex trafficking of children; sex trafficking of adults through force, fraud, or coercion; and/or conspiracy to engage in child sex trafficking. The men listed are pimps, and the females listed are “bottom girls.”
According to the affidavit filed with the complaint, minor victim girls under age 18 and adult victim girls engaged in commercial sex acts at the direction of Nobles, Bonner, and Chad Johnson and they were “sold” back and forth between all six pimps. Nobles, Chad Johnson, Stanley Johnson and Bonner would pay Alvin Lane, Jessica Arnold and Serrah Arnold to post commercial sex advertisements for various victims on Backpage.com, including the minors.
A 16-year-old victim was told by Nobles, Bonner and Chad Johnson to charge $120 for a half hour and $180 for a full hour of commercial sex acts, and the three kept all of the money she received. The victim feared Nobles and Chad Johnson because she had observed both become violent when angry and had observed Chad Johnson assault another female on several occasions when the female did not follow his instructions. Nobles and Chad Johnson assaulted this victim, and Chad Johnson sexually assaulted her as well.
Another 17-year-old victim engaged in commercial sex acts at the direction of Stanley Johnson, who would post advertisements with her photo on Backpage.com. All of the money she earned by engaging in commercial sex acts was given to Stanley Johnson.
An adult female victim engaged in commercial sex acts at the direction of Nobles, Chad Johnson, Audrey Lane, Alvin Lane and Serrah Arnold. These individuals bought and sold her amongst themselves. Nobles frequently assaulted her when she made him angry or did not follow his instructions; he also raped her. Nobles kept the money she earned and the contact phone number used in the Backpage.com ad for her services was used by Nobles. In one trip to Austin, Texas, the adult female victim made enough money for Nobles to buy a Chevy sedan that he painted bright orange – “Poly Orange” in reference to their neighborhood Polytechnic Heights – that he still owns.
When that same adult female victim engaged in commercial sex acts at Chad Johnson’s direction, he physically assaulted her if she did not follow his instructions. On one occasion, Chad Johnson punched her in the ear hard enough to cause her eardrum to burst and bleed. Chad Johnson also raped her, and when he believed she had attempted to “renegade,” he had several friends gang rape her as punishment. “Renegade” is a term used to describe attempting to engage in commercial sex acts for money outside the knowledge or control of a pimp.
When this adult female victim engaged in commercial sex acts at Audrey Lane’s direction, he would have Serrah Arnold, his bottom girl, supervise the victim and take the money she received. Sometimes Serrah Arnold was violent toward this adult female victim and would physically assault her if she did not do as she was instructed.
An additional 17-year-old female victim engaged in commercial sex acts at the direction of Audrey Lane, Alvin Lane, Serrah Arnold and Jessica Arnold. Alvin Lane would have his girlfriend/bottom girl, Jessica Arnold, post photos of her in ads that she placed on Backpage.com. The minor female victim would give all the money she earned to Jessica or Serrah Arnold, who would then give the money to Audrey Lane or Alvin Lane.
Some of the six pimp’s Facebook pages contained online posts, visible to the public, that reference making a lot of money through criminal activity, namely “pimping.” Chad Johnson’s Facebook page contains photos of him posing with large sums of cash while referencing commercial sex. Several of Chad Johnson’s Facebook friends are females observed in Backpage.com ads for commercial sex.
Nobles, Bonner, Chad Johnson, Stanley Johnson and Audrey Lane have several photos on their Facebook pages in which they can be observed flashing gang signs referencing the “Polywood Crips” street gang.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. The government has 30 days to present the matter to a federal grand jury for indictment. A defendant is entitled to the presumption of innocence until proven guilty. However, if convicted, the maximum statutory penalty for each of the offenses charged is life in federal prison and a $250,000 fine.
ATF, ICE HSI, the Fort Worth Police Department and the U.S. Marshals Service are investigating. Assistant U.S. Attorney Cara Foos Pierce is in charge of the prosecution.
# # #
KCK Man Sentenced for Airport Bomb HoaxRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Kan., man has been sentenced in federal court for conveying false information as part of a bomb hoax at Kansas City International Airport in August 2014.
David James Cain, 35, of Kansas City, Kan., was sentenced on Tuesday, July 26, 2016, by U.S. Chief District Judge Greg Kays to 18 months in federal prison without parole.
On Jan. 21, 2016, Cain pleaded guilty to one count of conveying false information.
At approximately 5:30 p.m. on Aug. 31, 2014, Cain parked the truck he was driving in front of Terminal B at Kansas City International Airport. The truck remained parked along the curb in front of the terminal for approximately one hour. A KCI traffic control officer had the truck ticketed, and announcements were made over the loud speaker inside the terminal that the owner of truck needed to report or the truck would be towed.
After approximately one hour, Cain approached the Southwest Airlines ticket counter and told a ticket agent that there was a bomb in the truck. Cain repeated that there was a bomb in the truck, and then twice told the ticket agent’s supervisor the same thing. The customer service supervisor contacted law enforcement. The KCPD Bomb Squad and an FBI bomb technician searched the truck, and no bomb or explosive material was located.
As a result of Cain’s false statements, KCI evacuated and closed Terminal B for approximately two hours. Shutting down the terminal caused significant flight delays throughout the rest of the day.
This case was prosecuted by Assistant U.S. Attorney Brian Casey. It was investigated by the FBI and the Missouri State Highway Patrol.
Jupiter Attorney Pleads Guilty to Filing False Tax Returns with the IRSRead the Press Release
A Jupiter trust and estate attorney pled guilty before United States Magistrate Judge James M. Hopkins in West Palm Beach to filing false personal income tax returns with the Internal Revenue Service (IRS) in which her income was underreported, resulting in additional tax due of $923,695 for tax years 2007 through 2012.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Kathleen Kozinski, pled guilty to a criminal information charging her with two counts of filing a false tax return, in violation of Title 26, United States Code, Section 7206(1), for tax years 2008 and 2011. As part of her plea agreement, Kozinski agreed to pay $923,695 in restitution to the IRS to reflect unpaid and underreported taxes due and owing for tax years 2007-2102. Kozinski is scheduled to be sentenced before United States District Judge Robin L. Rosenberg in West Palm Beach on October 7, 2016 at 11:00 a.m. At sentencing, Kozinski faces up to three years in prison per count of conviction.
According to court documents, Kozinski was an attorney with a solo estate planning and probate practice, Kathleen G. Kozinski, PA, located in Jupiter, Florida. For tax years 2007 through 2012, Kozinski failed to report all of her income on her individual Form 1040 tax returns.
Specifically, Kozinski willfully failed to report all of the gross receipts from Kathleen G. Kozinski, PA on her Form 1120S, Income Tax Return for an S Corporation. Shareholders of S corporations are required to report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. Kozinski underreported her income on her individual Form 1040 tax returns by not reporting all of the gross receipts from her law practice on her Form 1120S.
In addition to not including all of the gross receipts, Kozinski also falsely claimed “mortgage write-off” losses in the amount of $137,293.00 in tax year 2007, while she knew she had not provided an actual loan to another individual and was not entitled to this deduction. In tax year 2011, Kozinski claimed a loss of $113,745 on a “Schedule F Farm Loss” by falsely claiming that she paid labor expenses and insurance expenses, but the defendant did not operate a farming business and knew she was not entitled to these deductions. In 2012, Kozinski claimed a “Home Office” expense of $39,001, but the defendant knew that she was not entitled to claim this deduction because she did not have a home office.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Aurora Fagan.
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.
Judge Finds Co-Owner of Chicago Medical Transport Company Guilty of Multi-Million Dollar Fraudulent Billing SchemeRead the Press Release
Springfield, Ill. – U.S. District Judge Sue E. Myerscough has rendered verdicts of guilty on all counts against a Chicago man for fraudulent overbilling of an estimated $4.7 million to Illinois’ Medicaid program for non-emergency medical transport. Sentencing for Gregory D. Toran, 67, of Hazel Crest, Ill., is scheduled on Nov. 14, 2016.
Toran owned IBT Transportation, LLC., with Tina Kimbrough, 44, of Berwyn, Ill. In June 2015, Kimbrough pled guilty to participating in the conspiracy with Toran, one count of mail fraud and one count of making false statements. Kimbrough’s sentencing is scheduled on Aug. 15, 2016.
Over 12 days, beginning May 17 and concluding on June 14, the government presented evidence in a bench trial before Judge Myerscough. In the verdict, filed this week, the court found Toran responsible for the company’s fraudulent overbilling to the state of Illinois and Medicaid for services not rendered, not rendered to the extent claimed, and for mileage well in excess of miles actually driven. During the period of the conspiracy, from December 2005 to June 2011, IBT billed and was paid claims totaling approximately $7.3 million. Evidence was presented that IBT overbilled the state’s Medicaid program by an estimated $4.7 million.
Despite rules clearly set forth in the state handbook, the court found that IBT billed for deceased individuals and individuals who were not transported because they were in the hospital. Further, IBT billed based on the dates the individuals were approved for transportation, whether they rode or not, even though route sheets showed who was transported daily. At times, IBT billed for more riders than it could physically transport. Further, the court found that although the handbook mileage rules were straightforward, that transportation providers could only bill mileage for the first rider, Toran directed billers to incorrectly bill for mileage - from not billing mileage at all, to billing mileage for all riders, and later, every fourth rider.
The court also found that various bank accounts and real estate constitute proceeds or property derived from proceeds, obtained by Toran, directly or indirectly, as a result of the offenses of conviction, including: $69,382 representing proceeds from the sale of property at 9544 S. Vanderpoel Ave., Chicago; 1450 W. 112th Place, Chicago; 28 Carrington Court, Hazel Crest, Ill.; $205,439, representing proceeds from the sale of property at 5741 and 5751 to 5759 South Halstead, Chicago; and, at 6978 West North Ave., Chicago.
Both Toran and Kimbrough remain on bond pending sentencing. At sentencing, the maximum statutory penalty for conspiracy to defraud (one count as to each defendant) is up to five years in prison; for each count of mail fraud (Toran seven counts; Kimbrough one count) is up to 20 years in prison. The penalty for making a false statement is up to five years in prison.
The charges were investigated by the Illinois State Police, Medicaid Fraud Unit; the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations; the Federal Bureau of Investigation; and the U.S. Postal Inspection Service. In addition, the Illinois Department of Health and Family Services, which administers the Medicaid program for the state of Illinois, assisted in the investigation. Assistant U.S. Attorneys Gregory K. Harris and Timothy A. Bass are prosecuting the case.
Illinois Man Pleads Guilty to Fraud and Money Laundering ChargesRead the Press Release
St. Louis, MO – Adam Bernaix, Edwardsville, Illinois, admitted to a fraud and money laundering scheme involving false invoices submitted to his employer on behalf of a shell company he created.
According to his plea agreement, Bernaix earned approximately $350,000 through Trident Management Solutions, a company he created solely to bill companies doing business with his employer. Bernaix submitted invoices for "services rendered" to companies doing business with his employer, Albert Arno, an HVAC contractor in the City of St. Louis. Bernaix, as a project manager for Albert Arno, was able to mark up the invoices of Trident’s clients to Albert Arno so that his employer provided the extra money needed for Trident’s clients to pay their Trident bills.
Bernaix employed his father-in-law at one point to perform occasional jobs, but even after Trident’s sole employee left the company, and Trident did absolutely nothing for its clients, Bernaix still sent Trident clients bills and marked up the clients' Albert Arno bills sufficiently to keep the money flowing to Trident.
Bernaix pled guilty to felony counts of mail fraud and two felony counts of money laundering before United States District Judge Henry Autrey. Sentencing has been set for October 25, 2016.
Bernaix faces up to 20 years imprisonment on each of two mail fraud counts, up to 10 years imprisonment on each of two money laundering counts and/or fines up to $250,000. Restitution for the victims will be sought pursuant to the Mandatory Victims Restitution Act.
The case was investigated by the Federal Bureau of Investigation, U.S. Postal Inspection Service and IRS Criminal Investigation. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Honduran National Pleads Guilty to Illegally Possessing a FirearmRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JONATHAN RAMOS-VASQUEZ, age 27, a native of Honduras, pled guilty today to possession of a handgun by a person illegally present in the United States, in violation of Title 18, United States Code, Section 922(g)(5)(A).
According to court documents, on March 21, 2015, deputies from the Lafourche Parish Sheriff’s Office were given information that RAMOS was located at an address in Lafourche Parish. They were given permission to enter the residence and encountered RAMOS in his bedroom. Deputies spotted an Astra model A70, 9mm semi-automatic handgun next to RAMOS on his bed. The handgun had travelled in interstate commerce as it had been manufactured in Spain. RAMOS ultimately admitted that he was in the country illegally and that the handgun belonged to him. RAMOS had previously been deported from the United States on October 26, 2011, and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
RAMOS faces a maximum term of imprisonment of ten years, as well as a fine of $250,000. United States District Court Judge Susie Morgan set sentencing for November 2, 2016.
U.S. Attorney Polite praised the work of the Lafourche Parish Sheriff’s Office and the United States Immigration and Customs Enforcement Agency in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Gettysburg Man Pleads Guilty to Producing Child PornographyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Gettysburg man has pled guilty before United States District Court Judge John E. Jones, III in Harrisburg to a charge that he produced child pornography of children under 12 who were in his custody.
According to United States Attorney Peter Smith, Steven L. Berwager, age 73, Gettysburg, Pennsylvania pled guilty before United States District Court Judge John E. Jones, III and admitted that he produced videos of minor children engaging in sexually explicit conduct with Berwager. The minor children were in Berwager’s care and custody at the time the videos were produced.
Berwager was arrested on March 23, 2016 after a search of his home by state and federal law enforcement officers led to the recovery of thousands of images of child pornography stored on various electronic devices. Berwager agreed to forfeit all of the electronic devices seized during the search of his home that were used in producing, storing and transmitting child pornography. Berwager has been in custody ever since his arrest and was recently charged by state authorities on Adams County with sexual assault charges involving the same minor victims.
The case was investigated by the by the United States Department of Homeland Security, the United States Postal Inspection Service, the Pennsylvania State Police and the Adams County District Attorney’s office. Prosecution of the case has been assigned to Assistant United States Attorney William A. Behe.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is a mandatory 15 years term of imprisonment up to 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under federal law, 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.
# # #
Georgia Couple Sentenced to Prison in a Stolen Identity Tax Refund Fraud Scheme involving IRS “Get Transcript” DatabaseRead the Press Release
ATLANTA – Anthony and Sonia Alika of Austell, Georgia, have been sentenced to prison for their role in a stolen identity tax refund fraud scheme.
“This fraud conspiracy featured a literal highlight reel of our current economic crime threats, including cyber intrusions, identity theft, phony tax returns and money laundering, all to the order of millions of dollars,” said U.S. Attorney Horn. “These schemes create nightmares for citizens who endure the process of repairing their credit and IRS returns, and this case reflects law enforcement’s commitment to punish these criminals and do all we can to prevent further victims.”
“Anthony and Sonia Alika, driven by greed and a fast buck, lined their pockets by laundering more than $1 million stolen from the U.S. Treasury in the form of fraudulent income tax returns filed using data illegally obtained from the IRS Get Transcript database,” said Principal Deputy Assistant Attorney General Ciraolo. “The sentences imposed today send a clear message to those pursuing similar criminal schemes. The department, working with the IRS and its other law enforcement partners, will aggressively prosecute and seek substantial prison terms for individuals who engage in stolen identity refund fraud.”
“Today’s sentencing of Anthony Alika and Sonia Alika is a victory for the many American taxpayers who have been victims of sophisticated stolen identity refund fraud schemes,” said Chief Richard Weber of IRS Criminal Investigation. “The Alikas demonstrated a blatant disregard for the integrity of the U.S. tax system and caused immeasurable hardship to innocent victims. We continue to work hard to protect the sanctity and integrity of the tax system while working for justice for those individuals whose identities were stolen.”
In January, Anthony Alika and Sonia Alika were charged with laundering the proceeds from their stolen identity refund fraud scheme. The indictment alleged that Anthony Alika, along with Rapheal Atebefia, were members of a conspiracy which obtained means of identification of actual individuals, including their names and social security numbers and used this information to access the IRS’s “Get Transcript” database.
The indictment further alleged that Anthony Alika, Atebefia, and others obtained prepaid debit cards from stores located in multiple states, registered the cards in the names of the stolen identities, filed false income tax returns using the stolen identities and information obtained from the Get Transcript database and directed the IRS to deposit the tax refunds onto these cards. Get Transcript is an online service the IRS offers to allow taxpayers to order copies of their past tax returns.
To conceal their fraud, Anthony Alika, Atebefia and others were alleged to have used the prepaid debit cards to purchase money orders which were subsequently deposited into bank accounts. The Alikas and Atefibia then structured cash withdrawals of the proceeds in order to prevent the bank from filing Currency Transaction Reports (CTRs).
As part of his guilty plea, Anthony Alika admitted that during 2015, he received money orders from several individuals and deposited them into bank accounts in his and his wife’s name. Anthony Alika structured the cash withdrawals from his bank accounts in amounts less than $10,000 to evade the bank reporting requirements. Anthony Alika admitted that the funds used to purchase the money orders were the proceeds of illegal activity, including the filing of fraudulent tax returns using stolen identities. Anthony Alika admitted that he laundered over $1.5 million. Sonia Alika admitted as part of her guilty plea that between February and June 2015, she withdrew more than $250,000 from multiple bank accounts she controlled in amounts less than $10,000 to prevent the bank from filing CTRs.
U.S. District Chief Judge Thomas W. Thrash Jr. for the Northern District of Georgia, sentenced Anthony Alika, 42, of Austell, Georgia, to serve six years, eight months in prison, followed by three years of supervised release, and was ordered to pay $1,963,251.75 in restitution to the Internal Revenue Service (IRS). Sonia Alika, 27, also of Austell, Georgia, was sentenced to one year, nine months in prison, followed by three years of supervised release, and to pay $245,790.08 in restitution to the Internal Revenue Service (IRS). In April, Anthony Alika pleaded guilty to one count of conspiracy to commit money laundering and Sonia Alika pleaded guilty to one count of illegal structuring of cash withdrawals to evade bank reporting requirements.
On June 22, 2016, Rapheal Atebefia, 33, of Austell, Georgia, was sentenced to serve one year, three months in prison followed by three years of supervised release for his role in the scheme.
Many tax fraudsters depend for their success on filing a fraudulent return with a stolen identity before their victims file their genuine returns. Filing early and avoiding use of obvious usernames and passwords for online tax websites are two ways to help protect yourself.
IRS-Criminal Investigation and the U.S. Postal Service Investigative Service investigated the case.
Assistant U.S. Attorney Brian Pearce and Trial Attorneys Michael C. Boteler and Charles M. Edgar, Jr., of the Tax Division prosecuted this case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga
Georgia Couple Sentenced to Prison in a Stolen Identity Tax Refund Fraud Scheme Involving IRS “Get Transcript” DatabaseRead the Press Release
An Austell, Georgia, couple was sentenced to prison for their role in a stolen identity tax refund fraud scheme, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney John A. Horn of the Northern District of Georgia.
On July 27, U.S. District Chief Judge Thomas W. Thrash Jr. for the Northern District of Georgia, sentenced Anthony Alika, 42, to serve 80 months in prison, followed by three years of supervised release and Sonia Alika, 27, to serve 21 months in prison, followed by three years of supervised release. District Chief Judge Thrash ordered Anthony Alika and Sonia Alika to pay $1,963,251.75 and $245,790.08 in restitution to the Internal Revenue Service (IRS), respectively. In April, Anthony Alika pleaded guilty to one count of conspiracy to commit money laundering and Sonia Alika pleaded guilty to one count of illegal structuring of cash withdrawals to evade bank reporting requirements.
“Anthony and Sonia Alika, driven by greed and a fast buck, lined their pockets by laundering more than $1 million stolen from the U.S. Treasury in the form of fraudulent income tax returns filed using data illegally obtained from the IRS Get Transcript database,” said Principal Deputy Assistant Attorney General Ciraolo. “The sentences imposed today send a clear message to those pursuing similar criminal schemes. The department, working with the IRS and its other law enforcement partners, will aggressively prosecute and seek substantial prison terms for individuals who engage in stolen identity refund fraud.”
“This fraud conspiracy featured a literal highlight reel of our current economic crime threats, including cyber intrusions, identity theft, phony tax returns and money laundering, all to the order of millions of dollars,” said U.S. Attorney Horn. “These schemes create nightmares for citizens who endure the process of repairing their credit and IRS returns, and this case reflects law enforcement’s commitment to punish these criminals and do all we can to prevent further victims.”
“Today’s sentencing of Anthony Alika and Sonia Alika is a victory for the many American taxpayers who have been victims of sophisticated stolen identity refund fraud schemes,” said Chief Richard Weber of IRS Criminal Investigation. “The Alikas demonstrated a blatant disregard for the integrity of the U.S. tax system and caused immeasurable hardship to innocent victims. We continue to work hard to protect the sanctity and integrity of the tax system while working for justice for those individuals whose identities were stolen.”
In January, Anthony Alika and Sonia Alika were charged with laundering the proceeds from their stolen identity refund fraud scheme. The indictment alleged that Anthony Alika, along with Rapheal Atebefia, 33, of Austell, were members of a conspiracy which obtained means of identification of actual individuals, including their names and social security numbers and used this information to access the IRS’s “Get Transcript” database. The indictment further alleged that Anthony Alika, Atebefia and others obtained prepaid debit cards from stores located in multiple states, registered the cards in the names of the stolen identities, filed false income tax returns using the stolen identities and information obtained from the Get Transcript database and directed the IRS to deposit the tax refunds onto these cards. Get Transcript is an online service the IRS offers to allow taxpayers to order copies of their past tax returns. To conceal their fraud, Anthony Alika, Atebefia and others were alleged to have used the prepaid debit cards to purchase money orders which were subsequently deposited into bank accounts. The Alikas and Atefibia then structured cash withdrawals of the proceeds in order to prevent the bank from filing Currency Transaction Reports (CTRs).
As part of his guilty plea, Anthony Alika admitted that during 2015, he received money orders from several individuals and deposited them into bank accounts in his and his wife’s name. Anthony Alika structured the cash withdrawals from his bank accounts in amounts less than $10,000 to evade the bank reporting requirements. Anthony Alika admitted that the funds used to purchase the money orders were the proceeds of illegal activity, including the filing of fraudulent tax returns using stolen identities. Anthony Alika admitted that he laundered over $1.5 million. Sonia Alika admitted as part of her guilty plea that between February and June 2015, she withdrew more than $250,000 from multiple bank accounts she controlled in amounts less than $10,000 to prevent the bank from filing CTRs.
On June 22, Atebefia was sentenced to serve 15 months in prison followed by three years’ supervised release for his role in the scheme.
Many tax fraudsters depend for their success on filing a fraudulent return with a stolen identity before their victims file their genuine returns. Filing early and avoiding use of obvious usernames and passwords for online tax websites are two ways to help protect yourself.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Horn commended special agents of IRS-Criminal Investigation and the U.S. Postal Service, who investigated the case and Trial Attorneys Michael C. Boteler and Charles M. Edgar, Jr. of the Tax Division and Assistant U.S. Attorney Brian Pearce, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Franklin Family Pleads Guilty to Tax ConspiracyRead the Press Release
United States Attorney Gregory J. Haanstad announced the filing of plea agreements that had been reached with Paul Bouraxis, his wife, Freida Bouraxis, and their son, Andreas Bouraxis, all of whom resided in Franklin, Wisconsin. Each of the defendants agreed to plead guilty to conspiring to defraud the United States by impeding the Internal Revenue Service in connection with their operation of restaurants in the Milwaukee area, including the Omega Burger restaurant, located on S. 27th Street in Franklin, the El Fuego restaurant located on W. Layton Avenue in Milwaukee, and the El Beso restaurant located on S. 74th Street, in Greenfield.
In addition, Paul Bouraxis agreed to plead guilty to tax evasion in connection with his filing of his 2010 personal income tax return.
As part of the conspiracy to defraud the United States, the defendants skimmed cash receipts from their restaurants, paid restaurant employees in cash without withholding payroll taxes, and failed to report much of the skimmed cash as income on their personal tax returns. During the years 2007 – 2010, the defendants skimmed more than $3 million from their restaurants and underpaid federal income and payroll taxes by more than $1.3 million.
As part of the investigation, in September 2012, federal agents seized approximately $1.7 million in cash, as well as silver and gold bars, and jewelry from the defendants’ restaurants, residence, and safe deposit boxes maintained by the defendants.
As part of their plea agreements, the defendants have agreed to forfeit a total of $442,000 from the seized funds to the United States. In addition, the defendants have agreed that the remaining seized cash and the proceeds from the sale of the silver, gold, and jewelry will be applied to their tax obligations.
As part of their plea agreements, the parties will jointly recommend that Paul Bouraxis be sentenced to 2 years in prison; that Andreas Bouraxis be sentenced to 1 year and 1 day in prison; and that Freida Bouraxis be sentenced to 6 months of home detention.
The case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation.
# # # # #
Fourteen Men Charged in Illegal Gambling Operation Based Out of Lucky Lady Casino and Card RoomRead the Press Release
Special Assistant U.S. Attorney Jeffrey D. Hill (619) 546-7924 or Assistant U.S. Attorney Nicholas Pilchak (619) 546-9709
NEWS RELEASE SUMMARY – July 27, 2016
SAN DIEGO – Fourteen men are charged in federal grand jury indictments with participating in a sophisticated bookmaking ring that used the Lucky Lady Casino and Card Room on El Cajon Boulevard as a legitimate front for the illicit operation.
More than 100 agents and detectives from the FBI, San Diego Police Department and IRS Criminal Investigation arrested 9 of the 14 defendants through coordinated actions in California, Nevada and Kentucky.
The FBI’s Organized Crime Squad also executed search warrants at multiple locations in San Diego, including the Lucky Lady Card Room itself. The joint FBI-San Diego Police Department investigation began in 2014, and employed wiretaps and undercover agents to infiltrate the alleged racketeering enterprise and uncover defendants’ illegal gambling activities. Additional subjects remain at large in Canada and Thailand.
Three grand jury indictments were unsealed today. In the first, a dozen defendants are charged with various crimes, including Racketeering Conspiracy to Conduct Enterprise Affairs (RICO), running an Illegal Gambling Business and Transmission of Wagering Information.
According to that indictment, the lead defendant, Sanders Bruce Segal, and others were charged with operating “Segal’s Lucky Lady Sports Book” – an illegal enterprise that connected bookies, sub-bookies and significant bettors with sports gambling websites located outside the United States, some of which were owned and controlled by members of the enterprise.
The other defendants are Stanley Samuel Penn, Petter Magnus Karlsson, David Greg Leppo, Pablo Ballestero Frech, Sydney Bruce Segal, Joseph Edward Spatafore, Minh Triet Dinh Nguyen, James Hang Tear, Ken Pheng Keo, Jason D. Taylor and Jeffrey Alan Burke.
A second indictment charges Ryan Richard Buchardt with Travel Act, Phone and Internet Use in Aid of Racketeering Enterprise; and the third indictment charges Robert Jay Zaben with Transmission of Wagering Information.
According to the indictments, the Lucky Lady Card Room is a licensed gambling establishment offering tightly regulated card games. The Lucky Lady provided a legitimate front for illegal bookmaking operations principally led by Sanders Segal, with the coordination and help of Stanley Samuel Penn, the owner of the Lucky Lady. Sydney Bruce Segal, Sanders’ son, was the manager of the “cage” at the Lucky Lady, and used his position to commingle cash generated from the card room’s lawful gambling operation with the proceeds from the unlawful sports betting.
The Segals and Penn depended upon the collaboration of international businessmen, Petter Magnus Karlsson, Pablo Ballestro Frech, and David Greg Leppo, to provide an avenue for United States customers to illegally place bets on sports gambling websites. Karlsson financed Segal’s Lucky Lady Sports Book and partnered with Leppo, who owned and operated several sports gambling websites hosted outside the United States. Karlsson also employed Frech to, among other things, manage bets placed by and through Sanders Segal and his betting customers on sports gambling websites. Karlsson and Leppo met personally with Segal and others in order to transfer cash generated by their illegal bookmaking operation and to coordinate their enterprise.
Segal’s Lucky Lady Sports Book relied on a network of bookies, including Minh Triet Dinh Nguyen, Ken Pheng Keo, and Sanders Segal himself, who operated out of the Lucky Lady. Bookie Jason D. Taylor took high-stakes bets from Joseph Edward Spatafore, and mailed illegal bookmaking proceeds to and from Sanders Segal, who connected Spatafore and other select clients with the websites provided by Karlsson, Frech, Leppo and others. Spatafore, a high-stakes bettor, was permitted by the enterprise to collect and place bets for other bettors, and was sometimes granted direct access to the international gambling websites used by the enterprise.
According to the indictment, sub-bookies James Hang Tear and Jeffrey Alan Burke each managed a “package” of customer accounts, recruited customers, paid off winning bets, collected on losing bets, and delivered payments to their managing bookies.
Segal’s Lucky Lady Sports Book recruited customers in the Southern District of California and elsewhere, provided them with betting odds, took their bets, and placed them on sports gambling websites. Bets were placed on the websites either through the bookies’ accounts or, for significant customers, through individual accounts that allowed bettors to directly wager for themselves. The enterprise also used “runners” to transport profits and proceeds. The indictment further alleges that the enterprise generated almost a million dollars in illegal bookmaking proceeds.
“By grafting onto legitimate businesses, organized criminals and shady bookies have too long shielded themselves from law enforcement scrutiny and hidden huge illegal bookmaking profits,” said U.S. Attorney Laura Duffy. “These indictments demonstrate the Department’s commitment to stemming the influence of racketeering activity in San Diego.”
“This case is a classic example of how a legitimate business can be infiltrated and used to facilitate criminal activity by members of a criminal enterprise,” said FBI Special Agent in Charge, Eric S. Birnbaum. “The FBI is committed to disrupting and dismantling criminal enterprises that seek to use legitimate businesses as a platform for their criminal activity.”
Two defendants were arraigned this afternoon before U.S. Magistrate Judge Nita L. Stormes, the remaining defendants who are in custody are expected to be arraigned tomorrow afternoon.
DEFENDANTS Case Number: 16CR1695-BEN
Sanders Bruce Segal
Stanley Samuel Penn
Petter Magnus Karlsson*
David Greg Leppo*
Pablo Ballestro Frech*
Sydney Bruce Segal
Joseph Edward Spatafore
Minh Triet Dinh Nguyen*
James Hang Tear
Ken Pheng Keo
Jason D. Taylor
Jeffrey Alan Burke
SUMMARY OF CHARGES
Count 1: Racketeering Conspiracy to Conduct Enterprise Affairs (RICO Conspiracy), in violation of Title 18, United States Code, Sections 1962(c) & (d)
Maximum penalties: 20 years in prison, 3 years supervised release, and a $250,000 fine
Defendants 1-6
Count 2: Illegal Gambling Business, in violation of Title 18, United States Code, Section 1955
Maximum Penalties: 5 years in prison, 3 years supervised release, and a $250,000 fine
All Defendants
Count 3: Transmitting Wagering Info, in violation of Title 18, United States Code, Section 1084(a)
Maximum Penalties: 2 years in prison, 1 year supervised release, and a $250,000 fine
Defendants 7 and 11
DEFENDANT Case Number: 16CR1696-BEN
Ryan Richard Buchardt
SUMMARY OF CHARGES
Counts 1-7: Travel Act / Phone or Internet Use in Aid of Racketeering Activities, in violation of Title 18, United States Code, Section 1952
Maximum Penalties: 5 years in prison, 3 years supervised release, and a $250,000 fine
DEFENDANT Case Number: 16CR1697-BEN
Robert Jay Zaben*
Counts 1-5: Transmitting Wagering Info, in violation of Title 18, United States Code, Section 1084(a)
Maximum Penalties: 2 years in prison, 1 year supervised release, and a $250,000 fine
AGENCIES
Federal Bureau of Investigation
San Diego Police Department
Internal Revenue Service – Criminal Investigation
*Still at large
The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Four more Defendants Charged in Opiate Enforcement EffortRead the Press Release
FARGO - US Attorney Christopher C. Myers announced that four additional defendants have been charged in federal court as part of the opiate enforcement response:
-
Matthew Gerald Davis, 21, West Fargo, ND, Distribution of a controlled substance and Distribution resulting in serious bodily injury.
-
Dalton Lavelle White, 28, a.k.a. Block, Minneapolis, MN, Conspiracy to Possess with Intent to Distribute and Distribute a Controlled Substance and a Controlled Substance Analogue Resulting in Serious Bodily Injury
-
Jerrell Deon Washington, 25, Minneapolis, MN, Conspiracy to Possess with Intent to Distribute and Distribute a Controlled Substance Resulting in Serious Bodily Injury and Death
-
John Michael Iten, a.k.a. Jack Iten, 23, Fargo, ND, Conspiracy to Possess with Intent to Distribute and Distribute a Controlled Substance Resulting in Serious Bodily Injury
As part of this effort, eight other defendants previously appeared in federal court on opiate related drug trafficking charges:
-
Brandon Beyer, 20, Fargo, ND
-
Steven Jay Maynard Hoffman, 21, Fargo, ND
-
Chase Fliginger, 20, Fargo, ND
-
Naomi Danielson, 21, Fargo, ND
-
Christian Harris, 19, Fargo, ND
-
Gregory Alan Krutsinger, 38, Moorhead, MN
-
Tyrone Wilburn, 43, Minneapolis, MN
- Brandon Joseph Jacobs, 30, a/k/a B.J. Simonson, Moorhead, MN
Gregory Alan Krutsinger entered a plea of guilty on July 14, 2016 to Conspiracy to Possess with Intent to Distribute and Distribute a Controlled Substance Resulting in Serious Bodily Injury. He is scheduled for sentencing on October 4, 2016.
US Attorney Myers noted: “We will continue our aggressive approach on the enforcement side of the equation but will also continue working with our community partners to find a multi-faceted solution to this opiate crisis.”
The next community forum in the F-M area, “Arms Wide Open” will be held on September 7, 2016, at Fargo South High School.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
-
Former NYS Corrections Officer Pleads Guilty to Marijuana Distribution ConspiracyRead the Press Release
PLATTSBURGH, NEW YORK – Brad Rushford, age 33, of Ellenburg Depot, New York, pled guilty today to being a member of a drug distribution conspiracy that involved more than 100 kilograms of marijuana, announced United States Attorney Richard S. Hartunian.
As part of his guilty plea, Rushford admitted to coordinating the transportation and delivery of marijuana loads smuggled into the United States from Canada and bound for locations throughout the eastern United States. Rushford was a Corrections Officer with the New York State Department of Corrections and Community Supervision. His co-defendant and mother, Freda Rushford, pled guilty on July 6 to making a false statement to federal officers, and to being part of the same marijuana distribution conspiracy.
As a result of his conviction, Rushford faces at least 5 years and up 40 years in prison, a fine of up to $5,000,000, and a term of supervised release of at least 4 years and up to life. Sentencing is scheduled for December 1, 2016 before U.S. District Judge David N. Hurd in Utica. A defendant’s sentence is imposed by the judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by Homeland Security Investigations (HSI); the Federal Bureau of Investigation; U.S. Customs and Border Protection; the U.S. Coast Guard Investigative Service; the New York State Department of Corrections and Community Supervision, Office of Special Investigations; the New York State Police; and the St. Regis Mohawk Tribal Police. The case is being prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.
Former Leader of Burglary Crew Sentenced to 10 YearsRead the Press Release
Earlier today, at the United States District Court in Central Islip, New York, the Hon. Joseph F. Bianco sentenced Nikitas Margiellos, a former leader of a Long Island burglary crew, to 10 years’ imprisonment, three years supervised release and ordered to pay $1,700,000 million in restitution following his August 19, 2014, plea of guilty to interstate transportation of stolen property.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Madeline Singas, Nassau County District Attorney; Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; Thomas C. Krumpter, Acting Commissioner, Nassau County Police Department; Shantelle P. Kitchen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York; and William J. Bratton, Commissioner, New York City Police Department.
In announcing the imposition of sentence, U.S. Attorney Capers extended his grateful appreciation to each of the participating agencies and offices.
Between 2009 and 2012, Margiellos was one of the leaders of a burglary crew that committed approximately 37 commercial burglaries and eight residential burglaries in Nassau and Suffolk Counties stealing approximately $8,000,000 in cash and property. Margiellos participated in every one of the 45 burglaries. The crew used traditional burglary tools, such as blow torches, crowbars, wire cutters, and sledge hammers, as well as more modern technology, including cell phone jammers and police scanners, to commit the burglaries. They also often conducted surveillance of their victims to determine when the homes and businesses would be unoccupied. On at least one occasion, crew members installed a tracking device on a victim’s car to assist in this endeavor.
On January 21, 2016, Judge Bianco sentenced co-defendant Rafael Astacio, who was a NYPD Detective at the time he committed the burglaries, to a term of imprisonment of 72 months following his plea of guilty. On January 19, 2016 and April 21, 2016, following their pleas of guilty, co-defendants Leonard Repka and Victor Arias were sentenced to terms of imprisonment of 24 months and 54 months, respectively. Three additional co-defendants are awaiting sentencing.
The government’s case is being prosecuted by the Office’s Long Island Criminal Office. Assistant United States Attorney Christopher C. Caffarone and Special Assistant United States Attorney Rick Whelan are in charge of the prosecution.
The Defendant:
NIKITAS MARGIELLOS
Age: 43
West Babylon, New YorkE.D.N.Y. Docket No. 13-CR-640 (JFB)
Former Club Rage Bouncer Sentenced to 70 Months in Prison for Tax FraudRead the Press Release
United States Attorney Andrew M. Luger today announced the sentence of JOHN HUNTER, SR., 47, to 70 months in federal prison for filing false tax returns. Following a four-day trial before Senior U.S. District Court Judge David S. Doty, a jury on December 3, 2015, found HUNTER guilty of all the charges against him, including conspiracy to defraud the United States, false claims, and aggravated identity theft. HUNTER was sentenced today before Judge Doty in U.S. District Court in Minneapolis, Minn.
"Today's 70 month sentencing of Mr. John Hunter exemplifies the driven focus of IRS Special Agents as they relentlessly pursue identity theft and refund fraud crimes," said Shea Jones, Special Agent in Charge of the St. Paul Field Office IRS Criminal Investigation. “IRS Criminal Investigation, together with the U.S. Attorney’s Office, will continue to investigate the criminals who are stealing from the American taxpayer.”
As proven at trial, in 2010, HUNTER fraudulently claimed more than $200,000 in tax refunds to which he was not entitled. HUNTER misrepresented both his income and the incomes of 48 others, using their personal identifying information to file false tax returns. In 2009, HUNTER claimed a $8,222 tax refund based on earnings of $13,000 from his job at the Maplewood nightclub, Club Rage, in 2009. His actual earnings were closer to $4,000 and no taxes had been withheld from his paychecks.
As proven at trial, HUNTER also recruited dozens of friends and acquaintances, including minors, for whom he would file fraudulent returns by exaggerating or falsifying their incomes. HUNTER claimed that several of these acquaintances had worked at Club Rage or Holiday Stores, though they never had.
As proven at trial, HUNTER unsuccessfully tried to continue his scheme in 2012, claiming that he had earned over $19,000 at Jimmy John’s sandwich shop. He also filed false taxes for two others without their knowledge, claiming almost $20,000 in fraudulent refunds. The IRS rejected his claims.
This case was the result of an investigation conducted by IRS Criminal Investigations Division with substantial assistance from the Minnesota Department of Revenue.
This case was prosecuted by Assistant U.S. Attorneys Joseph Thompson and Amber Brennan.
Defendant Information:
JOHN HUNTER, SR., 47
Eagan, Minn.
Convicted:
- Conspiracy to defraud the United States, 1 count
- False claims, 8 counts
- Aggravated identity theft, 2 counts
Sentenced:
- 70 months in prison
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Former Club Rage Bouncer Sentenced to 70 Months in Prison for Tax FraudRead the Press Release
United States Attorney Andrew M. Luger today announced the sentence of JOHN HUNTER, SR., 47, to 70 months in federal prison for filing false tax returns. Following a four-day trial before Senior U.S. District Court Judge David S. Doty, a jury on December 3, 2015, found HUNTER guilty of all the charges against him, including conspiracy to defraud the United States, false claims, and aggravated identity theft. HUNTER was sentenced today before Judge Doty in U.S. District Court in Minneapolis, Minn.
"Today's 70 month sentencing of Mr. John Hunter exemplifies the driven focus of IRS Special Agents as they relentlessly pursue identity theft and refund fraud crimes," said Shea Jones, Special Agent in Charge of the St. Paul Field Office IRS Criminal Investigation. “IRS Criminal Investigation, together with the U.S. Attorney’s Office, will continue to investigate the criminals who are stealing from the American taxpayer.”
As proven at trial, in 2010, HUNTER fraudulently claimed more than $200,000 in tax refunds to which he was not entitled. HUNTER misrepresented both his income and the incomes of 48 others, using their personal identifying information to file false tax returns. In 2009, HUNTER claimed a $8,222 tax refund based on earnings of $13,000 from his job at the Maplewood nightclub, Club Rage, in 2009. His actual earnings were closer to $4,000 and no taxes had been withheld from his paychecks.
As proven at trial, HUNTER also recruited dozens of friends and acquaintances, including minors, for whom he would file fraudulent returns by exaggerating or falsifying their incomes. HUNTER claimed that several of these acquaintances had worked at Club Rage or Holiday Stores, though they never had.
As proven at trial, HUNTER unsuccessfully tried to continue his scheme in 2012, claiming that he had earned over $19,000 at Jimmy John’s sandwich shop. He also filed false taxes for two others without their knowledge, claiming almost $20,000 in fraudulent refunds. The IRS rejected his claims.
This case was the result of an investigation conducted by IRS Criminal Investigations Division with substantial assistance from the Minnesota Department of Revenue.
This case was prosecuted by Assistant U.S. Attorneys Joseph Thompson and Amber Brennan.
Defendant Information:
JOHN HUNTER, SR., 47
Eagan, Minn.
Convicted:
- Conspiracy to defraud the United States, 1 count
- False claims, 8 counts
- Aggravated identity theft, 2 counts
Sentenced:
- 70 months in prison
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Five Charged with Conspiracy to Distribute Methamphetamine on the Cheyenne River Reservation and Possession of FirearmRead the Press Release
United States Attorney Randolph J. Seiler announced that two men and three women have been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance. One of the men was also indicted for Possession of a Firearm by a Prohibited Person.
Those indicted on April 13, 2016, were: Kristina Rae Lofton, a/k/a Kristina Rae Moran, age 36; Robert Earlwin Lofton, Jr., a/k/a Robert Erwin Lofton, Jr., age 34; Stephanie Fawn Lofton, a/k/a Stephanie Fawn Clark, age 39; Tyler James Peterson, age 35; and Ashley Marie Peterson, age 33, all from Eagle Butte, South Dakota. A Superseding Indictment was filed on July 19, 2016. All have appeared before U.S. Magistrate Judge Mark A. Moreno and have pled not guilty to the Indictment.
The maximum penalty upon conviction for the charge against Kristina Lofton is not less than 10 years and up to life in custody, a $10,000,000 fine, or both, at least 5 years up to life of supervised release, $100 to the Federal Crime Victims Fund, and restitution.
The maximum penalty upon conviction for the charges against Robert Lofton is not less than 5 years nor more than 40 years in custody, a $5,000,000 fine, or both, at least 4 years up to life of supervised release, $100 to the Federal Crime Victims Fund, and restitution.
The maximum penalty upon conviction for the charge against Stephanie Lofton, and Tyler and Ashley Peterson is up to 20 years in custody, a $1,000,000 fine, or both, at least 3 years up to life of supervised release, $100 to the Federal Crime Victims Fund, and restitution.
All are subject to forfeiture of United States currency and weapons seized during the investigation.
The charges are merely an accusation and all are presumed innocent until and unless proven guilty.
The Indictment alleges that between March 1, 2014, and July 19, 2016, Kristina Lofton, Robert Lofton, Stephanie Lofton, Tyler Peterson, and Ashley Peterson knowingly and intentionally combined, conspired, confederated and agreed with other persons to knowingly and intentionally distribute and to possess with intent to distribute methamphetamine in South Dakota.
The Indictment specifically alleges that Kristina Lofton knowingly and intentionally possessed with the intent to distribute 500 grams or more of methamphetamine in South Dakota, and that Robert Lofton knowingly and intentionally possessed with the intent to distribute 50 grams or more of methamphetamine in South Dakota. The Indictment further alleges that on or about October 20, 2014, Robert Lofton knowingly possessed a firearm, even though he was prohibited from doing so because he had previously been convicted of a felony, and was an unlawful user of and addicted to a controlled substance.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division, the Federal Bureau of Investigation, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Kristina, Robert, and Stephanie Lofton, and Tyler Peterson have been remanded to the custody of the U.S. Marshals Service pending trial. Ashley Peterson has been released on bond pending trial. A jury trial has been set for August 16, 2016.
Federal Grand Jury Indicts Jefferson County Man for Receiving and Possessing Child PornographyRead the Press Release
BIRMINGHAM – A federal grand jury on Tuesday indicted a Jefferson County man on multiple charges of receiving and possessing child pornography, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
A two-count indictment filed in U.S. District Court charges JAMES RYAN TAYLOR, 28, with receipt of child pornography between January 2013 and January 2016, and with possession and access with intent to view child pornography between Feb. 28, 2015, and March 4, 2015.
The maximum penalty for each count of receiving and possessing child pornography is 20 years in prison and a $250,000 fine.
The FBI investigated the case, which Assistant U.S. Attorneys Manu K. Balachandran and Jacquelyn Hutzell are prosecuting.
An indictment contains only charges. A defendant is presumed innocent of the charges unless and until proven guilty.
###
Fayetteville Man Sentenced to 18 Months for Tax EvasionRead the Press Release
UTICA, NEW YORK – Edward J. Purcell, Sr., age 65, of Fayetteville, New York, was sentenced today to serve 18 months in prison for tax evasion.
The announcement was made by United States Attorney Richard S. Hartunian and Shantelle P. Kitchen, Special Agent in Charge of IRS-Criminal Investigation’s New York Field Office.
U.S. District Judge David N. Hurd also sentenced Purcell to 3 years of supervised release, to begin after his release from prison, and also ordered him to pay $347,128 in restitution to the Internal Revenue Service (“IRS”).
In December 2015, Purcell pled guilty to one count of tax evasion.
During the years 2008 through 2010, Purcell owned and operated American Roofing Company (“ARC”) in the Syracuse area. In this time period, he failed to report any of the income he received from ARC by not filing federal income tax returns, despite receiving taxable income in the amount of $655,937.
For the tax years 2008, 2009, and 2010, Purcell willfully evaded the payment of taxes on his individual income, which totaled $150,980, $333,614, and $171,343, respectively. The total tax loss for the years 2008 through 2010 was $231,362. Purcell also agreed to repay the IRS an additional $115,766, representing the tax loss for 2007.
Purcell concealed his income by depositing checks payable to ARC into nominee bank accounts, which he controlled through powers of attorney. Purcell set up these bank accounts in the names of his close friends and family members for the purpose of concealing his income from the IRS.
This case was investigated by IRS-Criminal Investigation, and was prosecuted by Assistant U.S. Attorney Ransom P. Reynolds.
False Claims Act Violation by UPMC Resolved for $2.5 MillionRead the Press Release
PITTSBURGH – The University of Pittsburgh Medical Center, together with the University of Pittsburgh Physicians, UPMC Community Medicine, Inc., and Tri-State Neurosurgical Associates-UPMC, Inc. (“UPMC”) have agreed to pay the United States $2,520,429 to settle False Claims Act allegations, United States Attorney David J. Hickton announced today.
The settlement resolves several of the allegations in a whistleblower lawsuit filed in federal court in Pittsburgh, Pennsylvania. The settled claims contended that UPMC violated the False Claims Act by submitting false claims for payment to the Medicare program. Specifically, the Complaint alleged that certain neurosurgeons employed by UPMC submitted claims for assisting with or supervising surgical procedures performed by other surgeons, residents, fellows, or physician assistants, when those neurosurgeons did not participate in the relevant surgeries to the degree required. The settlement also resolves allegations that a particular neurosurgeon, when performing multi-level spinal surgeries, submitted claims to the Medicare program for levels of spinal decompression not actually performed. Several claims asserted by the whistleblowers in their Complaint are not resolved by this settlement. The whistleblowers will continue to independently pursue those claims.
“Today’s settlement demonstrates our commitment to protecting federal health care programs from fraud,” said U.S. Attorney Hickton. “By pursuing false claims act cases like this, we send a clear message that health care providers must follow the rules when they deal with federal health care programs, and that this Office will hold accountable those who do not.”
This matter was investigated by the Office of Inspector General of the Department of Health and Human Services and the Federal Bureau of Investigation. Assistant United States Attorneys Colin J. Callahan and David Lew handled this matter on behalf of the United States.
This case is captioned United States ex rel. J. William Bookwalter, III, M.D., et al. v. UPMC, et al., Civ. No. 12-145 (WDPA). The claims resolved by the settlement are allegations only, and there has been no determination of liability.