Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
26 July 2016
Lebanese National Extradited from Malaysia to Face Charges in Wide-Ranging Counterfeit Currency Plot with Ties to Lebanon and IranRead the Press Release
On July 22, 2016, Louay Ibrahim Hussein had his initial appearance at the federal courthouse in Brooklyn, New York, before U.S. Magistrate Judge Lois Bloom. Hussein is charged in connection with his leadership role in a wide-ranging scheme to distribute large quantities of high-grade counterfeit U.S. currency believed to be produced with support from sponsors in Lebanon and Iran for sale and use in markets across the globe, including in the United States and Europe. Hussein, a Lebanese national, was arrested in Kuala Lumpur, Malaysia, in 2014, and arrived in the United States on Thursday, July 21, following extradition proceedings. Earlier today, Hussein was ordered detained by U.S. Magistrate Judge Robert M. Levy until he can satisfy the terms and conditions of a proposed substantial bond package.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, David E. Beach, Special Agent in Charge, United States Secret Service, New York Field Office, and Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
As alleged in the complaint and related filings, the charges against the defendant arose from a long-term undercover investigation in which the defendant and his co-conspirators sold hundreds of thousands of dollars in counterfeit currency to an agent with the United States Secret Service who was posing as a member of a New York-based criminal enterprise. Over the course of several months in 2012, the defendant, through intermediaries located overseas, sold the agent nearly $150,000 in high-quality counterfeit $100 bills and nearly $150,000 in counterfeit Euro notes. In October 2013, the defendant attempted to make another sale to the agent in Cyprus of approximately $300,000 in counterfeit currency, again through intermediaries. In June 2014, the defendant and co-defendant Nazer Al-Shekh Mosa, also known as Mohammed Hasan Haidar, a Syrian national, sold the undercover agent approximately $170,000 in counterfeit currency in Kuala Lumpur, Malaysia. Hussein and Mosa were arrested in August 2014 in Malaysia, pursuant to provisional arrest requests from the United States, during an attempt to sell additional counterfeit currency to the undercover agent. Mosa waived extradition last year, pled guilty to conspiracy to distribute counterfeit currency on April 20, 2016, and is awaiting sentence. A U.S. - based co-conspirator, Mouafak Al Sabsabi, also was arrested in August 2014. Al Sabsabi pled guilty to conspiracy to distribute counterfeit currency and was sentenced principally to time served and a three year term of supervised release on May 31, 2016.
The investigation has revealed that Hussein and his co-defendants are members of a multinational criminal network engaged in the production and distribution of counterfeit U.S. currency. In conversations with the undercover agent and others, Hussein claimed to have access to as much as $800 million in high-quality counterfeit U.S. currency for sale to clients based in Iran and elsewhere, and offered to procure weapons, narcotics, and counterfeit currency and to have them shipped through U.S. ports.
“The reliability of U.S. currency is a pillar of the global financial system. As alleged, counterfeiters such as the defendant and his co-conspirators exploited that reliability and threatened the stability it provides, all to serve their own greed,” stated United States Attorney Capers. “This investigation sends the message around the world that counterfeiters, wherever located, can and will be brought to justice.” Mr. Capers extended his grateful appreciation to the New York Field Offices of the United States Secret Service and Federal Bureau of Investigation, to the Justice Department’s Office of International Affairs, and to the Royal Malaysian Police and Attorney General’s Chambers for their assistance in the investigation and in effecting the defendant’s extradition.
“This investigation highlights the immeasurable effectiveness of law enforcement partnerships in combatting fraud,” said Secret Service Special Agent in Charge Beach. “We will continue to work closely with our domestic and international partners to defeat criminal enterprises and protect the Nation’s financial infrastructure.”
“We are pleased that Louay Ibrahim Hussein was extradited and will now face the U.S. justice system for his role in a charged international counterfeit currency ring. As uncovered in a multi-year investigation with the U.S. Secret Service, we allege Hussein and his co-conspirators sold more than a half a million dollars of counterfeit U.S. currency with the help of sponsors in Lebanon and Iran. Additionally, Hussein claimed to have access to millions more. Counterfeit currency doesn’t just devalue authentic currency, it weakens markets and global economies,” stated Assistant Director-in-Charge Rodriguez of the FBI.
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Samuel P. Nitze and J. Matthew Haggans are in charge of the prosecution.
The Defendants:
LOUAY IBRAHIM HUSSEIN
Age: 42
LebanonNAZER AL SHEKH MOSA, a/k/a MohammEd HASAN HAIDAR
Age: 29
Damascus, SyriaMOUAFAK ALSABSABI, also known as “Abu Masen,”
Age: 68
Garden City, New YorkE.D.N.Y. Docket No. 14-M-732
E.D.N.Y. Docket No. 16-CR-117 (Defendant HAIDAR)
E.D.N.Y. Docket No. 14-CR-583 (Defendant ALSABSABI)Latin Kings IndictedRead the Press Release
HAMMOND – United States Attorney David Capp announced federal racketeering charges against 9 additional members of the Latin Kings, a criminal enterprise doing business in Chicago and northwest Indiana. Named in this indictment are:
Reynaldo Robles a/k/a “Sneaky,” 24, of Portage;
Nicholas Baez a/k/a “Cali,” 22, of Whiting;
Antonio Gamino a/k/a “Stacks,” 19, of Griffith;
Efren DelAngel a/k/a “Payoso,” 21, of Hammond;
Mark Anthony Toney a/k/a “Slim,” 37, of Lake Village;
William Dennis Salazar, 40, of Hammond;
Darrick Vallodolid, 27, of Hobart;
Robert Nieto a/k/a “Cowboy,” 42, of Gary;
Peter Salinas a/k/a “Pudge,” 30, of Hammond
These 9 individuals were added to the existing Latin King indictment pending in the Northern District of Indiana that had previously charged 17 members or associates of the Latin Kings. Each of the persons named today are charged with a conspiracy to participate in racketeering activity and with a conspiracy to distribute narcotics.
Today’s indictment also details two previously uncharged murders as alleged overt acts in the racketeering conspiracy. On July 18, 2011, Travis Nash was shot and killed in Hammond. The indictment alleges that Reynaldo Robles, acting at the direction of Aldon Perez (indicted previously), shot and killed Nash, believing him to be a rival gang member. The indictment also alleges that on August 14, 2014, Keith Trevor Manuel and Joseph Uvalle (both indicted previously) demanded that members of the Latin Kings take action against Estrella’s Bar in Hammond, Indiana, as the owner of Estrella’s Bar was allowing rival gang members to patronize the bar. It is alleged that Uvalle drove Nicholas Baez and Antonio Gamino to the bar and handed Baez a firearm. Baez shot into the bar, striking and killing Raudel Contreras, while Gamino served as a lookout.
The previous Latin King indictment had charged Anton James with murder in aid of racketeering for his alleged role in the murder of Martin Hurtado Sr. The indictment alleges that, on Oct. 28, 2014, James shot and killed Hurtado Sr. in Hammond believing that he was Martin Hurtado Jr., whom James believed was a rival gang member. This count carries over unchanged from the previous indictment.
The previous Latin King indictment had charged Joseph Uvalle with sex trafficking offenses, and this indictment carries those charges over unchanged from the previous indictment.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is the result of the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the East Chicago Police Department, the Federal Bureau of Investigation, the Gary Police Department, the Hammond Police Department, the Lake County, Indiana, Sheriff’s Department and Lake County High Intensity Drug Trafficking Area officers and agents. The Lake County Prosecutor’s Office also has provided assistance. The Latin King case is being prosecuted by Assistant U.S. Attorneys David J. Nozick, Dean Lanter and Abizer Zanzi of the Northern District of Indiana.
# # #
Lamar Carter, of Brattleboro, Sentenced to 60 Months’ Imprisonment for Heroin and Crack Cocaine TraffickingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on July 26, 2016, Lamar Carter, a.k.a. “Bando” and “Boogie,” age 25, of Brattleboro, Vermont, was sentenced to 60 months in prison, having pled guilty to the charge of conspiring to distribute heroin and crack cocaine. United States District Judge Geoffrey W. Crawford, sitting in Rutland, also sentenced Carter to 3 years of supervised release.
Court records show that Carter was arrested for the drug trafficking conspiracy in September 2015 in Brattleboro. For about a year and half prior to his arrest, Carter worked with coconspirators from Brattleboro, Northeast Vermont, and New Jersey selling heroin and crack cocaine in the areas of Lyndon and St. Johnsbury. He was ultimately charged as part of an eight-defendant Indictment. Court records also indicate that Carter possessed guns and used violence in furtherance of the conspiracy. The U.S. Attorney’s Office stated that Carter’s codefendant, Miguel Zayas, 29, of New Jersey, also pled guilty to the heroin and crack cocaine conspiracy, receiving a sentence of 8 years’ imprisonment from Judge Crawford on June 29, 2016. Zayas was the leader of the conspiracy.
Yesterday, Carter’s mother, Jacobina Carter, age 41, also of Brattleboro, was sentenced in Burlington by The Honorable William K. Sessions III, Senior United States District Judge, following her guilty plea to heroin trafficking. Judge Sessions gave Jacobina Carter a 42-month term of imprisonment. Court records further show that Carter began selling narcotics in Vermont in 2006. She started trafficking heroin in 2011 and continued to do so until her arrest in September 2015.
For his crime, Lamar Carter faced a maximum penalty of 20 years in prison. In sentencing Carter, Judge Crawford noted the seriousness of the offense, describing heroin as Vermont’s greatest public health crisis. On the other hand, he observed that Carter had an extremely traumatic childhood and answered to the conspiracy leader, Zayas, during the offense conduct.
The investigation was a collaborative effort of the Vermont State Police Drug Task Force; the Brattleboro, Vermont Police Department; the St. Johnsbury, Vermont Police Department; Homeland Security Investigations; and the Federal Bureau of Investigation.
Assistant United States Attorney Christina Nolan prosecuted the case. Carter is represented by Paul Volk, Esq., of Burlington, Vermont.
Justice Department Files Lawsuit Against Credit Union for Illegally Repossessing Servicemembers’ CarsRead the Press Release
The Justice Department filed a lawsuit today in the Eastern District of Michigan to recover damages from the COPOCO Community Credit Union, alleging that it violated the Servicemembers Civil Relief Act (SCRA) by repossessing protected servicemembers’ motor vehicles without obtaining the necessary court orders.
The SCRA protects the rights of servicemembers on active duty by suspending or modifying certain civil obligations. The law prohibits repossessing a motor vehicle from a servicemember during military service without a court order if the individual made a deposit or installment payment on the loan before entering military service. The department’s complaint alleges that COPOCO’s vehicle repossession procedures did not include any process to determine customers’ military status – such as checking the Department of Defense’s database – prior to conducting repossessions without court orders. The complaint also alleges that COPOCO illegally repossessed U.S. Army Private First Class Christian Carriveau’s car, along with his two-year-old daughter’s car seat, out of his driveway in Lacey, Washington, near Joint Base Lewis-McChord. His wife, Alyssa Carriveau, initially believed that the car had been stolen, but she subsequently learned that it had been repossessed. Private First Class Carriveau was away at military training at the time and Alyssa Carriveau was not able to get to work without the vehicle.
“No servicemember should be penalized for honorably serving our country,” said Principal Deputy Associate Attorney General Bill Baer. “COPOCO Community Credit Union’s alleged misconduct in repossessing vehicles without the required court order is both wrong and illegal. The Justice Department continues to ensure that we are doing all we can to protect and assist servicemembers, veterans and their families from unlawful conduct by creditors.”
“The Justice Department works tirelessly to protect the rights of those who answer our nation’s call to duty to defend our freedom,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We will continue to vigorously pursue lenders who fail to take the simple steps necessary to determine, before repossessing a car, whether it belongs to a servicemember.”
“This law was designed to ease the legal and financial burdens for servicemembers and their families when facing the demands of active duty,” said U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan. “We owe it to all servicemembers to vigorously enforce these laws to protect them while they are serving their country.”
The SCRA protects servicemembers against certain civil proceedings that could affect their legal rights while they are in military service. It requires a court to review and approve any repossession if the servicemember took out the loan and made a payment before entering military service. The court may delay the repossession or require the lender to refund prior payments before repossessing. The court may also appoint an attorney to represent the servicemember, require the lender to post a bond with the court and issue any other orders it deems necessary to protect the servicemember. By failing to obtain court orders before repossessing motor vehicles owned by protected servicemembers, COPOCO prevented court review of whether such repossessions should be delayed or adjusted in light of military service.
In addition to monetary damages for affected servicemembers, the SCRA provides for civil monetary penalties of up to $60,000 for the first offense and $120,000 for each subsequent offense. The department will also seek changes in how COPOCO conducts future repossessions.
COPOCO Community Credit Union is based in Bay City, Michigan.
Servicemembers and their dependents who believe that their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php. Additional information about the department’s enforcement of the SCRA and other laws protecting servicemembers is available at www.servicemembers.gov.
COPOCO Complaint
Justice Department Files Lawsuit Against Credit Union for Illegally Repossessing Servicemembers’ CarsRead the Press Release
The Department of Justice Civil Rights Division and the U.S. Attorney's Office for the Eastern District of Michigan filed a lawsuit today to recover damages from the COPOCO Community Credit Union, alleging that it violated the Servicemembers Civil Relief Act (SCRA) by repossessing protected servicemembers’ motor vehicles without obtaining the necessary court orders.
The SCRA protects the rights of servicemembers on active duty by suspending or modifying certain civil obligations. The law prohibits repossessing a motor vehicle from a servicemember during military service without a court order if the individual made a deposit or installment payment on the loan before entering military service. The department’s complaint alleges that COPOCO’s vehicle repossession procedures did not include any process to determine customers’ military status – such as checking the Department of Defense’s database – prior to conducting repossessions without court orders. The complaint also alleges that COPOCO illegally repossessed U.S. Army Private First Class Christian Carriveau’s car, along with his two-year-old daughter’s car seat, out of his driveway in Lacey, Washington, near Joint Base Lewis-McChord. His wife, Alyssa Carriveau, initially believed that the car had been stolen, but she subsequently learned that it had been repossessed. Private First Class Carriveau was away at military training at the time and Alyssa Carriveau was not able to get to work without the vehicle.
"No servicemember should be penalized for honorably serving our country," said Principal Deputy Associate Attorney General Bill Baer. "COPOCO Community Credit Union’s alleged misconduct in repossessing vehicles without the required court order is both wrong and illegal. The Justice Department continues to ensure that we are doing all we can to protect and assist servicemembers, veterans and their families from unlawful conduct by creditors."
"The Justice Department works tirelessly to protect the rights of those who answer our nation’s call to duty to defend our freedom," said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. "We will continue to vigorously pursue lenders who fail to take the simple steps necessary to determine, before repossessing a car, whether it belongs to a servicemember."
"This law was designed to ease the legal and financial burdens for servicemembers and their families when facing the demands of active duty," said U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan. "We owe it to all servicemembers to vigorously enforce these laws to protect them while they are serving their country."
The SCRA protects servicemembers against certain civil proceedings that could affect their legal rights while they are in military service. It requires a court to review and approve any repossession if the servicemember took out the loan and made a payment before entering military service. The court may delay the repossession or require the lender to refund prior payments before repossessing. The court may also appoint an attorney to represent the servicemember, require the lender to post a bond with the court and issue any other orders it deems necessary to protect the servicemember. By failing to obtain court orders before repossessing motor vehicles owned by protected servicemembers, COPOCO prevented court review of whether such repossessions should be delayed or adjusted in light of military service.
In addition to monetary damages for affected servicemembers, the SCRA provides for civil monetary penalties of up to $60,000 for the first offense and $120,000 for each subsequent offense. The department will also seek changes in how COPOCO conducts future repossessions.
COPOCO Community Credit Union is based in Bay City, Michigan.
Servicemembers and their dependents who believe that their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php. Additional information about the department’s enforcement of the SCRA and other laws protecting servicemembers is available at www.servicemembers.gov.
DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Jewelry Thieves Convicted in $4 Million Armed, Multistate ConspiracyRead the Press Release
PANAMA CITY, FLORIDA – Yesterday evening, a federal jury convicted Lewis Jones III, 36, Larry Bernard Gilmore, 43, and Michael Bernard Gilmore, 46, all of Atlanta, GA, of conspiracy, interfering with commerce by robbery, and using a firearm during a crime of violence. Co-conspirator Abigail Lee Kemp, 25, of Smyrna, GA, pled guilty on July 11. The verdicts and guilty plea were announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Between April 2015 and January 2016, the conspirators committed armed robberies of six jewelry stores in Panama City Beach, Florida; Woodstock and Dawsonville, Georgia; Bluffton, South Carolina; Sevierville, Tennessee; and Mebane, North Carolina. More than $4 million of jewelry was stolen during the time frame of the conspiracy.
After the April 2015 robbery, Jones and the Gilmores began training Kemp to rob the jewelry stores on her own. The training took place at the Gilmore's window tint shop in Atlanta, Georgia. Jones and the Gilmores reviewed jewelry store layouts with Kemp and taught her how to handle a gun, secure employees with zip ties, and what merchandise to steal. They also gave Kemp various code words, decided her clothes and disguises, and then purchased supplies for her. Jones and the Gilmores always selected the dates and locations of the jewelry stores to be robbed.
Thereafter, Kemp would enter an outlet mall jewelry store at approximately the same time of day, brandish a firearm, order the employees to the back of the store, and force them to lie face down while she zip tied their hands behind their backs. Hundreds of thousands of dollars-worth of jewelry was then removed from the jewelry display cases. Kemp would use an earpiece to communicate with her conspirators while Jones and the Gilmores conducted surveillance and security outside.
In December 2015, a jewelry store manager believed Kemp matched the description of the white female who was previously linked to the armed robberies of various jewelry stores in the southeast. The store manager requested that another employee contact the police. The conspirators decided to call off the robbery and left the store. Five days later, they robbed the Mebane, North Carolina, jewelry store.
For each of the conspiracy and robbery charges, the defendants face a maximum of 20 years in prison. For each of the firearm charges, the defendants face a consecutive term of imprisonment of at least seven years and up to life on the first conviction, and a consecutive term of imprisonment of at least 25 years and up to life on the second conviction. The sentencing hearings are scheduled for October 12, 2016, at 9:00 a.m. (Kemp) and 2:00 p.m. (Jones and the Gilmores) at the United States Courthouse in Panama City, Florida.
This case resulted from an investigation by the Federal Bureau of Investigation and the Panama City Beach Police Department. Assistant United States Attorneys Kathryn D. Risinger and Michael J. Frank are prosecuting the case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Jamaican Charged with Violating Immigration LawsRead the Press Release
PITTSBURGH - A citizen of Jamaica, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal immigration laws, United States Attorney David J. Hickton announced today.
The one-count indictment named Gervan Hall, 33, of Jamaica, as the sole defendant.
According to the indictment, on or about June 23, 2016, Hall was found in Penn Hills, Allegheny County, Pa., after having unlawfully re-entered the United States following removal on May 27, 2004.
The law provides for a maximum total sentence of two years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. The Court continued the detention of Sanchez-Lara.
Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.
United States Immigration and Customs Enforcement (ICE) conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Houston Doctor Convicted for Distributing Prescription NarcoticsRead the Press Release
HOUSTON – A federal jury has returned guilty verdicts on all 19 counts as charged against a Houston doctor for distributing oxycodone and hydrocodone, announced U.S. Atttorney Kenneth Magidson.
The jury deliberated for approximately eight hours before convicted Richard Arthur Evans, 71. He now faces up to life in prison. The jury heard testimony for 14 days from 15 witnesses, including other doctors who appeared as expert witnesses. The government presented more than 175 exhibits during the course of the trial.
Co-defendant David Devido, 78, of Houston, pleaded guilty on the first day of trial.
The two defendants conspired to distribute oxycodone and hydrocodone - controlled narcotic substances that are highly addictive and highly abused pain relievers. Both drugs are semi-synthetic opiates which can be only acquired legally by prescription and dispensed by a pharmacist. As a physician, Evans wrote prescriptions and Devido, a pharmacist, dispensed the drugs. Witnesses testified these pill are sold for approximately $40 each on the street.
The jury heard that Evans distributed these drugs outside the course of professional practice and not for a legitimate medical purpose. He saw patients from Louisiana and other states, prescribed oxycodone and hydrocodone products and directed patients to the pharmacy Devido had owned.
Some of the patients testified as to lax procedures at the clinic and the ease with which they were able to obtain prescriptions. Evans charged patients $200-$240 cash for an initial office visit, at which time they would obtain a first prescription. Refills are not permitted for narcotics. However, the jury heard that patients were told they could obtain a new prescription in 30 days without an office visit as long as the patient sent a money order to Evans for $200-$240. Patients were also told they could obtain a third prescription without an office visit as long as they again sent the payment to Evans.
Once the patients sent in their money orders, Evans and his staff delivered the prescriptions to Devido at Briargrove Pharmacy. Devido and his staff would then send these drugs through the U.S. mail and FedEx to patients in Louisiana and other states.
The jury saw an undercover video depicting Evans signing off on prescriptions the nurse wrote without any examination or questioning of the patient. They also heard from a defense expert witness physician who testified he was surprised that more than 800 of the patients were from the Baton Rouge, Louisiana, area. The expert could only bring himself to say that a doctor who pre-signs prescriptions is practicing “poorly.”
As a result of the conspiracy, Evans prescribed and Devido dispensed approximately 1.6 million dosage units of oxycodone in a two-year-period. The jury heard that the total money attributed to the diversion scheme was approximately $2.4 million.
The jury convicted Evans on one count of conspiracy, five counts of illegal distribution of narcotics, eight counts of mail fraud and five counts of money laundering. He could also be ordered to pay up to $5 million in fines. He faces a mandatory minimum of 10 years and up to life in prison.
U.S. District Judge Kenneth Hoyt presided over the trial and set sentencing for Oct. 17, 2016. Devido is set for sentencing Sept. 26, 2016. Both were permitted to remain on bond pending their hearings.
The Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, U.S. Postal Inspection Service, Department of Health and Human Services and the Texas State Board of Pharmacy conducted the investigation, which was dubbed Operation Oxy Overload. Assistant U.S Attorneys Cedric L. Joubert and Quincy L. Ollison prosecuted the case.
Head of Schaumburg Home Health Company Sentenced to Six Years for Scheming to Fraudulently Bill Medicare for Unnecessary CareRead the Press Release
CHICAGO — A federal judge today sentenced the head of a Schaumburg home health company to six years in prison for scheming to bill Medicare for millions of dollars in unnecessary services.
As the manager of Suburban Home Physicians, which did business as Doctor at Home, DIANA JOCELYN GUMILA directed employees to perform in-home visits with patients who were physically capable of leaving their residences and not in need of in-home treatment. Gumila also inflated the costs incurred by Medicare by directing employees to bill the treatment at the most complicated levels, even though the visits were typically routine and did not qualify for the elevated billing.
A jury in April convicted Gumila, 47, of Streamwood, on 21 counts of health care fraud and three counts of making false statements in a health care matter. In addition to the 72-month sentence, U.S. District Judge Charles P. Kocoras ordered the defendant to pay $15.6 million in restitution.
“Home-health fraud has become a significant problem nationally and particularly in the Chicago area,” Assistant U.S. Attorney Stephen Chahn Lee argued in the government’s sentencing memorandum. “Such fraud cannot happen without people like defendant, who abuse Medicare’s rules and abuse the trust placed in them by Medicare and their patients.”
Gumila is one of several defendants convicted in the federal investigation of Doctor at Home. The prior convictions include ALAN NEWMAN, a physician from Chicago, and JAMES ADEMIJU, a nurse from Matteson who operated two nursing agencies. In a plea agreement, Newman admitted falsely certifying patients for nursing services even when he knew the patients did not need such care. Newman admitted causing approximately $2.6 million in losses to Medicare, according to his plea agreement. Ademiju pleaded guilty to billing for unnecessary services that were improperly authorized by physicians from Doctor at Home, and he acknowledged making illegal payments for patient referrals.
Evidence presented at Gumila’s two-week trial included a surreptitious audio recording in which Gumila can be heard telling a new doctor to “paint the picture” of patients so as to make them appear confined to their homes. Emails from Gumila were also shown to the jury, including one in which she referred to a physician who did not read orders before signing them as “the type of doctor we need [b]ecause he will just do what we tell him to do.”
Gumila’s conviction was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Lamont Pugh III, Special Agent-in-Charge of the Chicago Region of the U.S. Department of Health and Human Services Office of Inspector General; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Kristie Osswald, Special Agent-in-Charge of the Chicago Office of the Railroad Retirement Board Office of the Inspector General.
The investigation was carried out by the Medicare Fraud Strike Force, which is part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative between the Justice Department and the U.S. Department of Health and Human Services to prevent fraud and to enforce anti-fraud laws around the country. Dozens of defendants have been charged in numerous fraud cases since the strike force began operating in Chicago in 2011.
The government is represented by Mr. Lee and Assistant U.S. Attorney Vikas Didwania.
Georgia Lottery Winner Pleads Guilty to Federal Drug and Gun ChargesRead the Press Release
BRUNSWICK GA - Ronnie Music, Jr.,45, of Waycross, Georgia, pled guilty last week before Chief U.S. District Court Judge Lisa Godbey Wood to federal drug trafficking and firearm charges.
According to evidence presented during his guilty plea hearing, Music conspired with others to possess and distribute kilograms of methamphetamine in Ware County, Georgia and elsewhere. The investigation revealed that in September, 2015, Music’s coconspirators were caught attempting to sell approximately 11 pounds of crystal meth, with a street value in excess of $500,000. Music was identified as a source of supply for the meth. The investigation further revealed that Music purchased the methamphetamine for resale with his own lottery winnings. In 2015, Music won $3,000,000 in a Georgia scratch-off lottery game. As part of the case, investigating agents seized over $1 million worth of methamphetamine, a large cache of firearms, thousands of rounds of ammunition, multiple vehicles, and over $600,000 in cash.
United States Attorney Ed Tarver stated, “Defendant Music decided to test his luck by sinking millions of dollars of lottery winnings into the purchase and sale of crystal meth. As a result of his unsound investment strategy, Music now faces decades in a federal prison.”
Music and other members of the conspiracy will be sentenced by Chief Judge Wood after the United States Probation Office conducts a presentence investigation. Music faces a maximum possible sentence of life in prison.
The case was investigated by the ATF, DEA, and the Glynn-Brunswick Narcotics Enforcement Team (GBNET). Assistant United States Attorneys E. Greg Gilluly, Jr. and Theodore Hertzberg are prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Fredonia Man Sentenced to 25 Years for Sexually Molesting Minor Victim on Kaibab ReservationRead the Press Release
PHOENIX – On July 25, 2016, Christopher Nigel Benn, 24, of Fredonia, Ariz., an enrolled member of the Kaibab Band of Paiute Indian Tribe, was sentenced by U.S. District Judge Susan R. Bolton to 25 years’ imprisonment after Benn had previously pleaded guilty to one count of abusive sexual contact of a minor. The Court also imposed a lifetime term of supervised release to follow Benn’s term of imprisonment.
The investigation revealed that Benn sexually abused the minor victim, who was under the age of 12, on the Kaibab Band of Paiute Indian Reservation in 2013.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Christine Ducat Keller, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-15-8092-PCT-SRB
RELEASE NUMBER: 2016-057_BENN
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Four Arrested in Chambers County on Federal Drug ChargesRead the Press Release
Montgomery, Alabama– Roberto Anguiano (24), Deedre D. Diaz (22), Mario Verduzco (20), and Angela P. Quach (26) all from Laredo, Texas, were arrested in Chambers County on July 7, 2016 for their roles in a drug operation that involved the possession of and conspiracy to distribute fourteen (14) kilograms of cocaine, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. These arrests are the result of an investigation that includes numerous agencies.
According to court documents, a member of the Chamber’s County Sheriff’s Office conducted a traffic stop on a 2014 Toyota Tundra for a traffic violation. Over the course of the traffic stop, consent to search the vehicle was obtained and approximately fourteen (14) kilograms of cocaine was discovered. According a statement from Anguiano after waiving his Miranda rights, he was transporting the cocaine to Atlanta, Georgia. He further stated he would be paid $1,100 for each kilogram of cocaine he delivered to Atlanta.
The cocaine that was seized has an approximate value of $420,000. A conviction for conspiracy to possess with intent to distribute cocaine hydrochloride carries a potential sentence ranging from 10 years to life in prison.
On Monday, July 25, 2016, a preliminary hearing was held before Chief United States Magistrate Susan S. Walker. Following the presentation of evidence the four were ordered to be bound over to the grand jury for the presentation of an Indictment. They were also detained without bond pending trial.
A Criminal Complaint or Indictment is merely a method of charging a defendant and each defendant is presumed innocent unless and until the defendant=s guilt has been proven beyond a reasonable doubt at trial.
U.S. Attorney Beck would like to thank the following agencies for their involvement in this case: the United States Department of Homeland Security Investigations (HIS), the State of Alabama Law Enforcement Agency (ALEA), the Chambers County Alabama Sheriff’s Office (CCSO), the Valley, Alabama Police Department (VPD), and the Lee County Sheriff’s Office (LCSO). The case is being prosecuted by Assistant United States Attorney Curtis Ivy, Jr.
Former extra-curricular treasurer at Castle High School sentencedRead the Press Release
EVANSVILLE - United States Attorney Josh J. Minkler, announced today the sentencing of a former Castle High School employee responsible for embezzling large amounts of cash and checks that were to be used for extra-curricular activities. Rebecca A. McKee, 61, Newburgh, was sentenced to one year and one day imprisonment by U.S. District Chief Judge Richard L. Young following her plea of guilty to three counts of theft from programs receiving federal funds.
"The citizens of Warrick County deserve better from officials in positions of trust,” said Minkler. “Those who choose to steal from our public institutions will be held accountable.”
McKee served as the extra-curricular treasurer at Castle High School in Newburgh, from 2008 through 2012. Her responsibilities included handling large amounts of cash for school activities and disbursing checks for dances, clubs, fundraisers and sporting events within Castle High School. She was also the primary person controlling the Newburgh National Bank School Extra-Curricular Account for the high school.
A State Board of Accounts audit revealed that McKee issued unauthorized checks, made fraudulent claims for re-imbursement and kept cash received for extra-curricular events. From July 2010 until August 2012, she embezzled a total of over $135,000 during the following fiscal years from the Warrick County School Corporation:
-
2010 -2011--$19,863.49
-
2011 -2012--$89,819.06
-
2012 -2013--$24,325.40
This investigation was a collaborative effort between the Federal Bureau of Investigation, Indiana State Police, and the Indiana State Board of Accounts.
“The Board of Accounts will continue to work in cooperation with its federal, state, and local partners to identify, investigate, and prosecute those who would violate the public’s trust,” said Paul Joyce, State Examiner. “We all have the right to expect honest representation from our elected and/or appointed officials at all levels of government. I hope that those few public servants who decide to violate this trust will see that we are prosecuting these officials and realize that this is not acceptable and we will hold them accountable.”
According to Assistant United States Attorney Kyle Sawa who prosecuted this case for the government, McKee must serve one year of supervised release following her term of imprisonment and make full restitution of $135,000.
-
Former Utz Quality Foods Executive Pleads Guilty to $1.4 Million False Invoice Kickback SchemeRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former Utz Quality Foods, Inc. executive has pleaded guilty to charges that he defrauded Utz out of approximately $1.4 million.
Kevin Myers, age 38, a former resident of Abbottstown, Pennsylvania, and the former Director of Purchasing for Utz, pleaded guilty today before United States Magistrate Judge Susan E. Schwab in Harrisburg to a one count Information charging him with Wire Fraud.
Myers and Jonathan Haas, age 45 of Easton, Pennsylvania, the former owner of Haas Packaging and Design, Inc. in Bethlehem, Pennsylvania, were charged in June of this year with wire fraud. The Information was filed against Myers and Haas pursuant to plea agreements with the government.
According to United States Attorney Peter Smith, Haas Packaging & Design was a vendor that supplied Utz with shelving and packaging products between January 2007 and August 2014. The defendants allegedly defrauded Utz by Haas’ submission of approximately 83 false invoices and approximately 43 bogus purchase orders prepared by Myers for products Utz never actually received. After Myers approved Haas’ false invoices for payment, Haas allegedly would kickback a portion of the proceeds to Myers. Haas allegedly received approximately $1,474,765 from Utz as a result of the false invoices and kicked back approximately $651,000 of that amount to Myers.
The defendants also allegedly attempted to conceal kickbacks to Myers as payments for consulting services. Some of the kickbacks were in the form of checks payable to “Myers Packaging Consulting,” a fictional business entity created by Myers.
The specific wire fraud charge relates to an alleged interstate wire transmission of a $26,000 check into a Myers Packaging Consulting bank account in January 2014. The government is also seeking forfeiture of approximately $1.4 million as proceeds of the scheme.
The case was investigated by the Harrisburg Office of the Federal Bureau of Investigation and Utz Quality Foods, Inc. cooperated with the investigation. The case is being prosecuted by Assistant United States Attorney Kim Douglas Daniel.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of 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 20 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Former Talladega Correctional Officer Sentenced to a Month in Prison for Accepting Bribe to Smuggle Phone to InmateRead the Press Release
BIRMINGHAM – A federal judge today sentenced a former corrections officer at the Federal Correctional Institution in Talladega to one month in prison for accepting a bribe to provide a cell phone to an inmate, announced U.S. Attorney Joyce White Vance and U.S. Department of Justice Office of the Inspector General Special Agent in Charge Robert A. Bourbon.
STACIE MARIE GARDNER, 31, of Weaver, pleaded guilty in March to accepting $1,474 in January 2015, while she was working as a correctional officer, in exchange for smuggling a cell phone into the prison and providing it to an inmate. U.S. District Judge L. Scott Coogler sentenced her to the month in prison, to be followed by three years of supervised release. Gardner also must forfeit $1,474 to the government.
DOJ OIG investigated the case, which Assistant U.S. Attorney Davis A. Barlow prosecuted.
Former Pharmacy Owner Sentenced to 75 Months for Fraud SchemeRead the Press Release
LEXINGTON, Ky. – A Lexington man has been sentenced to 75 months in federal prison for wire fraud, aggravated identity theft, and money laundering.
On Saturday, U.S. District Judge Danny C. Reeves formally sentenced 37 year-old Adam Sloan for his offenses. He also sentenced Sloan’s girlfriend, Jennifer Houska, 30, to thirty months in federal prison for wire fraud and aggravated identity theft. Under Federal law, Sloan and Houska must serve at least 85 percent of their sentences.
According to Sloan’s plea agreement, from January 2011 to September 2015, Sloan developed and executed a scheme to defraud Chronic Disease Fund, Inc. d/b/a Good Days from CDF (“Good Days”). Good Days was a Section 501(c)(3) charitable organization based in Plano, Texas that provided copayment assistance for low income individuals suffering from chronic diseases, including cancer.
As part of the scheme, Sloan used real patient information he acquired through Bluegrass Pharmacy of Lexington, a legitimate business he co-owned until June 30, 2015. Sloan used names, social security numbers, medical benefit cards, and documentation reflecting the patients’ income to fraudulently enroll patients for benefits from Good Days, based on false diagnoses and prescriptions. He would then withdraw the funds allocated to those patients to his personal bank account. Sloan submitted 260 fraudulent applications to Good Days, using personal identifying information for at least 125 real patients, and fraudulently stole approximately $1,129,264.
According to Houska’s plea agreement, she assisted in the scheme by using real patient information to fill out 26 applications for fraudulent benefits.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Howard S. Marshall, Special Agent in Charge, FBI, jointly announced the sentences.
The investigation was conducted by the FBI. Assistant U.S. Attorneys Kate Smith and Kate Anderson prosecuted the case on behalf of the federal government.
Former Payroll Clerk at Two Family-Owned Businesses Agrees to Plead Guilty to Wire Fraud Charge in $2 Million EmbezzlementRead the Press Release
LOS ANGELES – A longtime employee of two Los Angeles-area businesses involved in earring manufacturing was charged today with wire fraud for stealing approximately $2 million from the companies.
In conjunction with the case filed today, Claudia Alvarez Calderon, 45, of La Crescenta, agreed to plead guilty to the wire fraud charge.
In a plea agreement filed today in United States District Court, Calderon admitted that she used the names of several non-existent or former employees who were no longer entitled to receive pay to fraudulently obtain wages and expense reimbursements from Onyx, Inc., a Harbor City-based manufacturer of earrings and ear piercing equipment, and Quadrtech, Inc., a Gardena-based company that finished and packaged the earrings and ear-piercing systems.
“At times, defendant would cause deposits of up to four fake employees into one bank account in her own name,” according to the plea agreement. “These direct deposits were often over $18,000 a month, and sometimes as high as $28,000 a month.”
Over the course of nearly a decade, Calderon fraudulently entered information into a computer system that caused Automatic Data Processing, Inc. (ADP) to make direct deposits or issue checks for the bogus employees. Calderon maintained several bank accounts to receive the money from Onyx and Quadrtech.
“Calderon stole money from her longtime employers to support a lifestyle that included multiple daily trips to restaurants, trips to Europe and Hawaii, cosmetic surgery and furnishing a second home in Florida,” said United States Attorney Eileen M. Decker. “Calderon’s violation of her employers’ trust cost the companies millions, money that should have gone to the companies and their employees.”
Over the course of her scheme, Calderon fraudulently obtained approximately $2 million from Onyx and Quadrtech.
Calderon will be directed to appear in United States District Court in Los Angeles, likely on August 8.
“Our trusted private sector partnerships led to a thorough investigation culminating in the perpetrator’s guilty plea. Would-be fraudsters should be deterred from plotting similar schemes,” said L. Robert Savage, U.S. Secret Service Special Agent in Charge of the Los Angeles Field Office.
The charge of wire fraud carries a statutory maximum sentence of 20 years in federal prison.
This case was investigated by the United States Secret Service.
This case is being prosecuted by Assistant United States Attorney Ruth C. Pinkel of the Public Corruption and Civil Rights Section.
Former Norton Parks and Recreation Maintenance Supervisor Indicted on Federal Civil Rights ViolationsRead the Press Release
ABINGDON, VIRGINIA – The former Parks and Recreation Department Maintenance Supervisor for the City of Norton was indicted today by a federal grand jury for violating the civil rights of two female victims after he allegedly used his authority to engage in, and attempt to engage in, sexual activity with women under his supervision while performing community service hours, United States Attorney John P. Fishwick Jr. announced today.
Michael Todd Lintz, 52, of Norton, Virginia, was indicted today by a Federal Grand Jury sitting in the United States District Court for the Western District of Virginia in Abingdon. Lintz is charged with one misdemeanor count of using his authority to engage in coercive sexual relations with Female Worker 1, willfully depriving her of her right to bodily integrity, one misdemeanor count of using his authority to attempt to engage in coercive sexual relations with Female Worker 2, willfully depriving her of her right to bodily integrity, one felony count of obstruction of justice and one felony count of making a false statement to a federal law enforcement officer.
According to the indictment, from July 2015 through November 2015, Lintz, while acting under color of law, used his authority to engage in coercive sexual relations with Female Worker 1, willfully depriving her of the right, secured and protected by the Constitution and laws of the United States, to bodily integrity.
In addition, the indictment alleges that from August 2015 through November 2015, Linz, while acting under color of law, used his authority to attempt to engage in coercive sexual relations with Female Worker 2, willfully depriving her of the right, secured and protected by the Constitution and laws of the United States, to bodily integrity.
On or about September 16, 2015, the indictment alleges, that Lintz obstructed justice by providing false testimony, under oath, in an effort to secure the release of Female Worker 1 on bond. Lintz knowingly concealed material information from the United States Magistrate Court for the Western District of Virginia, testifying that his only relationship with Female Worker 1 was as her supervisor on community service and testifying that Female Worker 1 had completed all of the community service hours to which she had been assigned. The testimony of Lintz was false because he had, in fact, had sexual contact with Female Worker 1 while supervising her on community service, had personal contact with Female Worker 1 outside of work, and the time card for which Lintz was testifying included hours that Lintz told Female Worker 1 to falsely claim hours in exchange for sexual favors.
The indictment also alleges that on or about February 16, 2016, Lintz knowingly made a false statement to a federal law enforcement officer, specifically an officer with the Bureau of Alcohol, Tobacco, Firearms and Explosives regarding his sexual contact with individuals that Lintz supervised on community service. Lintz falsely denied having a sexual relationship with Female Worker 1 in 2015 and falsely represented that he had not engaged in a sexual relationship with anyone during the time he supervised them on community service. The statements were false, because as Lintz then and there knew, he had engaged in sexual relations with Female Worker 1 during the time he supervised her on community service in 2015 and he had also engaged in sexual relations with other female workers during the time he supervised them on community service.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation. Assistant United States Attorney Erin M. Kulpa will prosecute the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt. Lintz is scheduled to appear in federal court in Abingdon on these charges on Thursday, July 28, 2016, at 10:00 a.m.
Former ICE Special Agent Sentenced to Federal Prison for Taking Bribes from Businessman Being Investigated for Human TraffickingRead the Press Release
LOS ANGELES – A former special agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) was sentenced today to 10 months in federal prison for accepting thousands of dollars in bribes from a Korean businessman.
Joohoon David Lee, 43, who currently resides in Las Vegas, Nevada, was sentenced by United States District Judge Michael W. Fitzgerald, who called the bribery “a very, very grave crime.”
Lee pleaded guilty last December to one count of bribery.
“This defendant sold his position of authority as a law enforcement officer for a few thousand dollars,” said United States Attorney Eileen M. Decker. “As a consequence of this abuse of trust, he will now pay a far more significant price. This defendant’s crime, however, should not cast a shadow over the tens of thousands of law enforcement officers across the country who are carrying out their duties with honor and dedication.”
Lee accepted bribe money from a Korean man identified in court documents at “H.S.” According to court documents, Lee, who was assigned to HSI’s Human Trafficking unit in Los Angeles, interviewed a woman in March 2012 who claimed that she was entering the United States to be a sex slave for H.S.
About a year later, according to court filings, Lee met with an attorney representing H.S. and told the lawyer that Lee could fly to Korea, interview H.S. and submit a favorable report – if H.S. would finance the trip.
“Thereafter, H.S.’s family arranged to have a relative, who was living in Southern California, travel to Las Vegas, where, by this time, defendant Lee had been transferred, and hand defendant Lee $3,000 in cash,” according to a sentencing memo filed by prosecutors that notes Lee purchased a plane ticket to Seoul, Korea the following day.
Lee travelled to Seoul, where H.S. paid for Lee’s hotel and entertainment expenses. While in Korea, “Lee asked [H.S.] for $100,000 to make HS’s immigration issues go away,” according to the sentencing memo. H.S. ultimately paid Lee between $6,000 and $7,000 in cash.
Upon returning to the United States, Lee prepared a report related to the investigation of H.S. that read: “Subject was suspected of human trafficking. No evidence found and victim statement contradicts. Case closed. No further action required.”
The case against Lee was investigated by ICE’s Office of Professional Responsibility.
“Those who work in law enforcement are supposed to uphold our nation’s laws, not willingly break them,” said Jeffrey Gilgallon, assistant special agent in charge for ICE’s Office of Professional Responsibility in Los Angeles. “As this case shows, ICE has zero tolerance for public officials who abuse their authority and violate the public’s trust to feed their own greed. Guarding against illegal or unethical behavior is not an option; it’s an obligation we have to the people we serve.”
The case against Lee was prosecuted by Assistant United States Attorney Lizabeth A. Rhodes, Chief of the General Crimes Section.
Former Groves Apartment Manager Guilty of Theft from HUDRead the Press Release
BEAUMONT, Texas – A 44-year-old Houston woman has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Nhung Tuyet Nguyen, also known as Sandy Nguyen, pleaded guilty to theft of government property today before U.S. Magistrate Judge Zack Hawthorn.
According to information presented in court, from October 2007 to December 2015, Nguyen was employed by the Beverly Place Apartments in Groves, Texas as an assistant Manager. As part of her job responsibilities, Nguyen assisted potential tenants in applying for U.S. housing and Urban Development (HUD) benefits for rental assistance and utility assistance. The rental and utility assistance programs are designed to help low-income individuals offset housing rental and utility costs with funds provided by HUD. In June 2007, Nguyen began applying for HUD rental assistance and utility assistance benefits without the tenants’ knowledge or consent. As a result, HUD provided funds to Beverly Place Apartments to cover tenants’ monthly rental fees. Nguyen required tenants, who were unaware HUD had already paid their monthly rent, to pay full market price for their apartments in cash or money orders. Nguyen would then take the cash or money orders and use them for her personal benefit. Nguyen enrolled at least five tenants in HUD rental and utility assistance programs without their knowledge. As a result, Nguyen caused a total loss to HUD of $393,583.00.
Under federal statutes, Nguyen faces up to 10 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress and is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the U.S. Housing and Urban Development – Office of Inspector General and Homeland Security Investigations. This case is being prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
Former Bank Executive Sentenced for $4.1 Million SBA Fraud, $18.2 Million FHA FraudRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former vice president of a Pulaski County, Mo., bank was sentenced in federal court today for leading a $4.1 million conspiracy to defraud the Small Business Administration, as well as participating in a separate and unrelated $18.2 million scheme to defraud the federal government while he was awaiting sentencing for the earlier fraud scheme.
Richard Newman Delong, 51, of Newburg, Mo., was sentenced by U.S. District Judge Brian C. Wimes to three years in federal prison without parole. The court also ordered Delong to pay $4,222,916 in restitution: $1,193,893 to the Small Business Administration (SBA); $1,257,327 to Mid-America Bank and Trust Company; $1,674,696 to Chubb Insurance and $98,000 to Brookshire Concrete.
On Jan. 24, 2014, Delong pleaded guilty to his role in a conspiracy to defraud the SBA. While on bond for that offense, Delong pleaded guilty in a separate and unrelated case on Dec. 4, 2015, to possessing and uttering a forged security as part of another scheme to defraud the government. Delong has remained in federal custody since his bond was revoked in November 2014. Today’s sentencing includes a sentence of three years in federal prison for the SBA fraud and two years in federal prison for the FHA fraud, to be served concurrently.
SBA Fraud Scheme
Delong was employed by Mid-America Bank in Dixon, Mo., as an executive vice-president and chief lending officer. Delong led a conspiracy from Jan. 1, 2005, to Feb. 5, 2010, to defraud the SBA by obtaining loans from Mid-America Bank that were guaranteed by the SBA under federal loan programs designed to provide financial assistance to qualified small businesses.
A number of loans were fraudulently obtained by businesses that were ineligible to receive them by concealing past due loan payments of distressed borrowers; making loans to nominee borrowers; making false entries in bank records; structuring loans so as to avoid the scrutiny of the bank’s board of directors; concealing unbooked letters of credit; funneling SBA guaranteed loan proceeds to themselves and others; misapplying loan proceeds; preparing fraudulent SBA borrower applications; and paying and accepting bribe money to secure loans.
Delong approved a number of fraudulent loans and prepared the false paperwork that secured SBA guaranties for loans for several co-defendants who have all pleaded guilty and been sentenced. Participants in this scheme include two business consultants (George G. Spencer and Dennis K. Depriest); the former branch manager of the SBA office in Springfield, Mo. (Larry Steven Aduddle); several business owners (Gerald E. Harris, Michael Edward Clegg, Perris D. Rask, Keith David Miller, and Lindell L. Vawter); and nominee loan borrowers (Andrea M. Clegg, Daniel J. Metz, James David Boothe, Catherine S. Debar, Randall S. Rogers, James Stewart Dunlop, Jr., and Scott E. Alexander).
As a result of Delong’s fraud, at least seven fraudulently obtained SBA-guaranty loans defaulted. (Additional loans that received SBA guarantees have defaulted, but no claim to pay the guarantee has been made to date.) Losses attributable to the portions of the loans that were not guaranteed by the SBA were borne by Mid-America Bank. As a result of the scheme, Mid-America Bank charged off $2,939,161 related to the default of the fraudulent loans involved in the scheme. Chubb Insurance paid Mid-America Bank $1,675,000 upon a claim on a policy it maintained.
HUD / FHA Fraud Scheme
Delong and co-defendant James J. Laughlin, 74, of Waynesville, Mo., each pleaded guilty to their roles in an $18.2 million fraud scheme.
Laughlin, one of the operators of 4-J Apartments in Pulaski County, Mo., admitted that he provided false information to the Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA) in order to obtain an $18,219,400 loan in 2012 for the operation and maintenance of 232 apartments and complexes in Pulaski County.
Laughlin involved DeLong, an employee of Brookshire Concrete while on bond awaiting his sentencing in the SBA fraud conspiracy, in the fraud scheme. Delong, who was fired by the company for his role in the scheme, worked with Laughlin to make it appear that Brookshire Concrete was renting apartments from 4-J. This would allow 4-J to artificially inflate its occupancy levels in order to qualify for the FHA loan. Delong issued numerous checks that were made payable to 4J Apartments to give the appearance that rent was being paid by Brookshire Concrete; however, none of Brookshire’s employees ever lived in any of 4-J’s apartments. These checks contained the forged signature of the company’s owner.
These cases were prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver and Assistant U.S. Attorney Patrick Carney. They were investigated by the Small Business Administration, Office of Inspector General, the FBI and the Department of Housing and Urban Development, Office of Inspector General.
Felon from Hobbs Sentenced to 100 Months for Unlawfully Possessing Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Ruben Cantu, 43, of Hobbs, N.M., was sentenced today in federal court in Las Cruces, N.M., to 100 months in prison for being a felon in possession of a firearm and ammunition. He will be on supervised release for two years after completing his prison sentence.
U.S. Attorney Damon P. Martinez said that Cantu, who has six felony convictions over the past 23 years, was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Lea County, under this initiative.
“Today’s sentencing serves as an example to those criminals who continue to plague or community and utilize crime guns,” said Special Agent in Charge Thomas G. Atteberry of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “We will find you, and we will lock you up in a federal prison where you will no longer experience an iota of freedom.”
“The FBI and its federal partners are glad to work with local law enforcement to get the worst offenders off the streets and put them behind bars for a long time,” said Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division. “These convictions demonstrate how federal, state and local agencies working together can make their communities safer. I am grateful to the FBI Special Agents and staff who worked on this case, along with the U.S. Attorney’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, Lea County Drug Task Force, and Hobbs Police Department.”
Cantu was arrested on July 7, 2014, on an indictment charging him with two counts of being a felon in possession of a firearm and ammunition. The indictment alleged that Cantu committed the crimes on March 5, 2014, in Lea County, N.M. At the time, Cantu was prohibited from possessing firearms and ammunition because of his prior felony convictions.
On Dec. 8, 2015, Cantu pled guilty to the indictment and admitted that on March 5, 2014, he was in possession of a firearm and multiple rounds of ammunition. He further acknowledged that he was prohibited from possessing firearms or ammunition based on his status as a convicted felon.
This case was investigated by the ATF’s office in Las Cruces, the Roswell office of the FBI, the Lea County Drug Task Force and the Hobbs Police Department. Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the NM HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Federal and State Authorities Arrest 9 Today in Connection with Austin-Based Heroin Trafficking OrganizationRead the Press Release
This morning, federal, state and local authorities arrested nine individuals in the Austin area, including ring-leaders Xavier Martinez (aka “Javi”) and Eulalio Samarripa (aka “Chico”), for conspiring to distribute heroin announced United States Attorney Richard L. Durbin, Jr. and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.
A one-count federal grand jury indictment unsealed in Austin this afternoon alleges that since April 2014, the defendants have conspired to distribute more than 500 grams of heroin.
Those arrested this morning include:
Xavier Martinez (aka “Javi)
Age: 47
Residence: BastropLisa Martinez
Age: 46
Residence: BastropXhavier Martinez
Age: 25
Residence: BastropBobby Martinez
Age: 51
Residence: AustinDarrell Cano
Age: 49
Residence: BastropEulalio Samarripa (aka “Chico”)
Age: 48
Residence: AustinSandra Davila
Age: 41
Residence: AustinRay Armonta
Age: 30
Residence: AustinZaragosa Marez (aka “Gus“)
Age: 51
Residence: AustinUpon conviction, the defendants face sentences of between ten years and life in federal prison. All of the defendants remain in federal custody pending detention hearings later this week.
This eleven-month investigation was conducted by the Drug Enforcement Administration together with the Austin Police Department, Bastrop County Sheriff’s Office, Travis County Sheriff’s Office and the Texas Department of Public Safety.
Assistant United States Attorney Mark Marshall is prosecuting this case on behalf of the government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Federal Charges filed in FBI Gate Crashing IncidentRead the Press Release
PITTSBURGH – Federal charges were filed this afternoon in connection with the intentional destruction of a security gate at the Federal Bureau of Investigation’s Pittsburgh Division headquarters, United States Attorney David J. Hickton announced today.
The criminal complaint charges Thomas Ross, 48, with Damaging Government Property and Causing Damage to Buildings or Property within the Special Maritime and Territorial Jurisdiction of the United States.
According to the complaint, on July 26, 2016, an officer with the traffic division of the Pittsburgh Police observed a very large dump truck vehicle driving on Carson Street in the Southside neighborhood of Pittsburgh. According to the officer the dump truck vehicle was driving erratically and unsafely, and, in fact, drove past the officer, who was sitting at a red light, at a high rate of speed before proceeding to run through several more red lights. The dump truck vehicle proceeded to Sidney Street into the parking lot of a Giant Eagle GetGo gas station, before being stopped by the officer. Upon approaching the dump truck vehicle, the traffic officer encountered an individual later identified as Thomas Ross, who was the driver of the vehicle. The officer ordered Ross out of the vehicle, but Ross refused to get out. On the third command, Ross stated to the officer that he had a bomb and that he had to see the FBI (which was across the street at that point). At that point, Ross put the dump truck vehicle into gear, and proceeded to the front gate of the FBI Pittsburgh Field Office, located at 3311 East Carson Street, Pittsburgh, Pa., at a high rate of speed. The FBI Pittsburgh Field Office is the property of the United States government and exists within the Special maritime and territorial jurisdiction of the United States. The front entrance gate of the FBI Pittsburgh has a guard booth which at the time was occupied by a security officer as well as several security barriers. Ross proceeded to ram the through the security barriers at a high rate of speed, causing the dump truck vehicle to go airborne while causing extensive damage to the vehicle. Upon hitting the ground, the dump truck vehicle struck a nearby light post in the interior parking lot of the FBI Pittsburgh, causing that light post to fall. The FBI estimates that the damage caused by Ross will exceed $1,000.
A date and time for the defendant to appear in federal court in Pittsburgh has not been set.
The penalties for violation of Title 18, United States Code, Section 1361 - Damaging Government Property or Contracts – are tied to the extent of the property damage. If the damage exceeds $1000, the defendant is subject to a fine of up to $250,000, 10 years imprisonment, or both. The penalties for violation of Title 18, United States Code, Section 1363 - Causing Damage to Buildings or Property within the Special Maritime and Territorial Jurisdiction of the United States - differ where human life is endangered or a dwelling is damaged or destroyed. When neither a dwelling nor a human life is endangered, the defendant is subject to a fine of up to $250,000, five years imprisonment, or both; otherwise the defendant may be punished by a fine of up to $250,000, 20 years imprisonment, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
A criminal complaint is only a charge and is not evidence of guilt. A defendant may not be prosecuted unless, within 30 days, a grand jury has found probable cause to believe that he is guilty of an offense.
Assistant United States Attorney Jimmy Kitchen is prosecuting this case. Special agents of the FBI and investigators from the Pittsburgh Bureau of Police conducted the investigation that led to the complaint against this defendant.
Evansville man sentenced for interstate transportation of stolen motor vehiclesRead the Press Release
Evansville – United States Attorney Josh Minkler, announced today that Andrew R. Elpers, 38, of Evansville, Indiana, was sentenced to 51 months in prison by U.S. District Chief Judge Richard L. Young for five counts of interstate transportation of stolen motor vehicles and one count of money laundering. The case was the result of an investigation by the FBI Safe Streets Task Force, the Internal Revenue Service-Criminal Investigation, Evansville Police Department and the Vanderburgh County Sheriff’s Department.
“Mr. Elpers thought he could escape justice by transporting vehicles across state lines,” said Minkler. “Nothing could be further from the truth. In this district federal and local law enforcement officials work closely to help keep our communities safe from criminals.”
On May 23, 2016, during his guilty plea, Elpers admitted to the Court that he unlawfully transported in interstate commerce approximately 32 stolen motor vehicles many of which were large pieces of excavating equipment. Elpers also admitted to committing money laundering by trading in a stolen motor vehicle and using the proceeds to purchase a new vehicle, knowing that the proceeds were derived from unlawful activity.
Elpers admitted stealing excavating equipment from three different states, Illinois, Missouri and Indiana. Elpers was found to have moved some of the stolen equipment to North Carolina where he used the equipment to make improvements to property he owned there. He admitted he had special skills in using excavating equipment that enabled him to override security measures and drive the equipment away from victim dealerships. In total, the stolen motor vehicles had a value of over 1.5 million dollars.
IRS Criminal Investigation Special Agent in Charge James Robnett stated, “IRS Criminal Investigation is united with our federal partners and local law enforcement to do what we do best and that is to follow the money. IRS Criminal Investigation was able to follow the proceeds and financially disrupt Mr. Elpers interstate scheme.”
Two other defendants Jordan T. Wedel and Jason H. Habernel have pleaded guilty and are awaiting sentencing. Tomas W. Elpers, (Andrew’s father) is awaiting trial.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Judge Young also imposed 3 years of supervised release following Elper’s release from prison. Elpers was also ordered to pay $453,456.80 in restitution to the victim dealerships and insurance companies.
Espanola Man Sentenced to Prison for Violating Federal Narcotics Trafficking LawsRead the Press Release
ALBUQUERQUE – Matthew Martinez, 38, of Espanola, N.M., was sentenced today in federal court in Albuquerque, N.M., to 70 months in prison followed by three years of supervised release for his conviction on a heroin trafficking charge. Martinez also was ordered to pay $500 in community restitution and to pay a $2,000 money judgment to the United States.
Martinez was arrested on Dec. 3, 2015, on a three-count indictment charging him with heroin trafficking offenses. The indictment charged Martinez with distributing heroin in Bernalillo County, N.M., on April 30, 2015. It also charged Martinez with distributing heroin on two occasions in Santa Fe, N.M.; the first time on May 1, 2015 and the second on Sept. 16, 2015.
On March 21, 2016, Martinez pled guilty to distributing heroin on Sept. 16, 2015. In his plea agreement, Martinez admitted selling approximately two ounces of heroin to an undercover FBI agent outside of a Santa Fe-area Walmart store. By his own admission, Martinez is associated with the Syndicato de Nuevo Mexico (SNM) prison gang and became involved in the heroin trade as a result of his gang affiliation.
“New Mexico’s Espanola Valley has had one of the country’s highest heroin overdose death rates for decades. Every time a heroin trafficker is removed from the Valley, the community continues its efforts to turn the tide against the heroin epidemic that has devastated its residents for generations,” said U.S. Attorney Damon P. Martinez. “This prosecution is part of a bigger effort that we call HOPE. The HOPE Initiative recognizes that law enforcement is only part of the answer, and that the community’s treatment, prevention and education needs must also be addressed.”
“New Mexico for too long has had the unenviable distinction of having one of the highest heroin-related death rates in the country,” said Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division. “Today's sentence should send a clear signal the FBI is committed to bringing to justice those drug-traffickers who endanger our communities and destroy so many lives. I would like to thank the FBI Special Agents and support staff, Santa Fe County Sheriff’s Office and New Mexico Corrections Department for their work on this case, and I congratulate the U.S. Attorney's Office on a successful prosecution.”
The Santa Fe office of the FBI investigated this case with assistance from the Santa Fe County Sheriff’s Office and the New Mexico Corrections Department. The Organized Crimes Section of the U.S. Attorney’s Office prosecuted the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative.
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Elkhart Man Sentenced to 120 Months for Possession of A Stolen FirearmRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that James Johnson, 24, of Elkhart, Indiana was sentenced before Judge Jon E. DeGuilio for possession of a stolen firearm.
Johnson was sentenced to 120 months’ imprisonment and 2 years of supervised release.
According to documents filed in this case, Johnson burglarized a firearms dealer in the St. Joseph County Area. More than 10 firearms were stolen during that time. On August 12, 2015, one of the firearms was recovered in Johnson’s home in Elkhart, Indiana.
This case was prosecuted as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Frank E. Schaffer.
# # #
El Cajon Man Sentenced to Life in Prison for Drug CrimesRead the Press Release
Assistant U. S. Attorney Jose Castillo (619) 546-6745 and Stephen Wong (619) 546-9464
NEWS RELEASE SUMMARY – July 26, 2016
SAN DIEGO – West Coast Crips gang member Randy Alton Graves was sentenced in federal court this morning to life in prison for multiple drug-related crimes.
The U.S. Attorney’s Office elected to seek an enhanced sentence based on his egregious conduct over decades. At the sentencing hearing, the court noted that Graves has more than a dozen felony and misdemeanor convictions from 1976 to 2012, ranging from voluntary manslaughter to gun crimes to multiple drug offenses. The enhancement raised the mandatory minimum sentence for Graves’ crimes to life in prison.
Graves was convicted by a federal jury on April 4, 2016 of conspiracy to distribute more than 50 grams of methamphetamine; conspiracy to distribute more than 1,000 kilograms of marijuana; and possession with intent to distribute more than 50 grams of methamphetamine. Following a five-day trial, the jury deliberated for about three hours before returning its verdict.
During sentencing, U.S. District Judge Dana Sabraw noted that he also considered Graves’ role in the murder of a government witness, sex trafficking, possession of firearms, and other instances of drug dealing in determining that a life sentence was appropriate - even without a mandatory minimum requirement.
According to evidence presented at trial, Graves sold methamphetamine to a confidential informant on four occasions between August and October of 2013. The government also played for the jury intercepted phone calls in which Graves recruited three men to travel to Lompoc, California, to unload a boat carrying 5,000 pounds of marijuana from Mexico. The government also presented evidence obtained from a search warrant executed on Graves’ residence which showed Graves in possession of 79 grams of methamphetamine found in Graves’ refrigerator and two loaded guns.
Graves was initially indicted in June 2014 with racketeering charges connected to the West Coast Crips criminal street gang. The racketeering activity alleged in that indictment included several homicides, drug, and sex trafficking crimes. Graves’ case was severed from the larger racketeering trial and proceeded to trial only on certain drug charges.
This case was prosecuted by Assistant U.S. Attorneys Jose Castillo and Stephen Wong.
This guilty verdict is the fruit of the collaborative work of the FBI’s East County Regional Gang Task Force and the Violent Crimes Gang Task Force, the San Diego Police Department’s gang and homicide units; the ATF; the El Cajon Police Department; the La Mesa Police Department; San Diego County Probation; the IRS; U.S. Postal Inspectors; the San Diego County Sheriff’s Department; and the California Highway Patrol.
This investigation was coordinated by an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was created to consolidate and coordinate all law enforcement resources in this country's battle against major drug trafficking rings, drug kingpins, and money launderers.
DEFENDANT Case Number 14CR1288-DMS
Randy Alton Graves Age: 53 El Cajon, CA
SUMMARY OF CHARGES
Count One
Conspiracy to distribute methamphetamine – Title 21, U.S.C., Section 851
Count Two
Conspiracy to distribute marijuana – Title 21, U.S.C., Section 851
Count Three
Possession with the intent to distribute methamphetamine– Title 21, U.S.C., Section 851
Maximum penalty: Life in prison
AGENCIES
San Diego Police Department Gang and Homicide Units
East County Regional Gang Task Force
Violent Crimes Task Force - Gang Group
Task Force agencies include:
FBI
San Diego Police Department
ATF
El Cajon Police Department
La Mesa Police Department
San Diego County Probation
IRS Criminal Investigation
U.S. Postal Inspectors
San Diego County Sheriff’s Department
California Highway Patrol
Detention Hearing Held for Cedar Rapids Man Charged with Sexual Exploitation of Children and Enticement of MinorsRead the Press Release
Tyler Konigsmark, age 20, of Cedar Rapids, Iowa, appeared today in federal court in Cedar Rapids for a detention hearing. Konigsmark was ordered held without bond pending further proceedings.
Konigsmark has been charged with sexual exploitation of children and enticement of minors. The charges are contained in an Indictment unsealed on July 21, 2016. The Indictment alleges that, between April and May 2016, Konigsmark persuaded and attempted to persuade, induce, and entice minors to engage in sexually explicit conduct for the purposes of producing visual depictions and engaging in sexual activity.
According to information disclosed at today’s detention hearing, between March and May 2016, Konigsmark was employed by the Cedar Rapids Community School District as a school bus attendant. Konigsmark was an attendant on buses servicing, at least, Taft and Harding middle schools. While working as a bus attendant, Konigsmark allegedly used a mobile telephone to contact two minor females, ages 13 and 14, and attempted to persuade the girls to send him nude images of themselves. Konigsmark also allegedly contacted a third minor female, age 12, and persuaded the girl to send him nude images of herself. The 12-year-old girl allegedly sent him nude images of her breasts and vagina. Konigsmark also allegedly engaged in sexual intercourse with the 12-year-old girl.
Konigsmark’s next appearance for trial is scheduled for September 19, 2016, in Cedar Rapids. If convicted, Konigsmark faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $500,000 fine, a $200 special assessment, and at least five years and up to life on supervised release following any imprisonment.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Iowa Division of Criminal Investigation, the Hiawatha Police Department, and the Cedar Rapids Police Department.
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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 16-57. Additional information about the case can be found at https://www.justice.gov/usao-ndia/united-states-v-tyler-konigsmark-16-cr-00057.
Follow us on Twitter @USAO_NDIA.
Defendant Franklin John Salas Sentenced to 108 Months IncarcerationRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that on July 25, 2016, Defendant FRANKLIN JOHN SALAS was sentenced by the Honorable Frances Tydingco-Gatewood, Chief Judge, District Court of Guam. Defendant was sentenced to serve 108 months incarceration followed by three years of supervised release, with credit for time served.
Defendant FRANKLIN JOHN SALAS pled guilty on December 9, 2014 to Attempted Possession of Methamphetamine with Intent to Distribute in violation of Title 21 U.S.C. Section 846(a)(1) and (b)(1)(C). Defendant SALAS attempted to receive 52.6 grams of methamphetamine hydrochloride at the Barrigada Post Office on October 29, 2014. The methamphetamine was concealed within card-sized envelopes and sent from Las Vegas, Nevada to Guam where it was intercepted by the U.S. Postal Inspector. The Drug Enforcement Administration Forensic Laboratory determined that the methamphetamine had a high purity level of 98.8%.
U.S. Attorney Limtiaco notes that methamphetamine hydrochloride is associated with violent crimes and has a devastating effect on individuals and the community. The U.S. Attorney’s Office is committed to the aggressive prosecution of cases involving drug distribution.
The investigation was conducted by the Guam U.S. Postal Inspector and Drug Enforcement Administration. The case was handled by Assistant U.S. Attorney Rosetta San Nicolas.
Columbia Man Sentenced for Renting Room to Use HeroinRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was sentenced in federal court today for renting the motel room where a 16-year-old female died of a heroin overdose.
Jon Patrick Washington, also known as “Doom,” 30, of Columbia, was sentenced by U.S. District Judge Brian C. Wimes to five years in federal prison without parole. Washington has been in federal custody since his arrest in 2014.
On Jan. 28, 2016, Washington pleaded guilty to maintaining a drug-involved premise. Washington admitted that he rented a room at the Providence Inn and Suites Motel, 1718 Providence Road in Columbia (now closed), for the purpose of using heroin from April 1 to April 3, 2014.
Columbia police officers responded to a suspected heroin overdose death at Washington’s motel room on April 3, 2014. The victim was a 16-year-old female. Based on information from a confidential informant, Washington was located later the same day and brought in for questioning by law enforcement. He admitted that he had injected the juvenile victim with heroin at about 8:30 p.m.
Washington told law enforcement officers that the juvenile was nodding off from a prior heroin injection, and that the juvenile and another individual (who Washington claimed supplied the heroin to the juvenile) kept asking him to help shoot the juvenile up again. Washington said the needle was already filled with heroin prior to him injecting the juvenile. Washington told officers that he found a vein on the juvenile on his second attempt.
Washington admitted that another individual and the juvenile victim gave him the money to rent the motel room. Washington had previously been renting another room at the motel, but moved into the new room on April 1. Washington admitted that he knew the room was being used by the juvenile to use heroin.
This case was prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Columbia, Mo., Police Department, the Drug Enforcement Administration and the Missouri State Highway Patrol.
Cambridge Man Sentenced for Possession of a Firearm Later Used to Kill Police OfficerRead the Press Release
BOSTON – A Cambridge man was sentenced today in U.S. District Court in Boston for possession of the firearm with an obliterated serial number, which was later used to murder MIT Police Officer Sean Collier.
Merhawi Berhe, 22, was sentenced today by U.S. District Court Judge William G. Young to six months in prison and two years of supervised release. In March 2016, Berhe pleaded guilty to possession of a firearm with an obliterated serial number.
In January 2013, Berhe was in possession of, and transferred to another individual, a Ruger P95 9mm semiautomatic handgun with an obliterated serial number. That individual subsequently transferred the Ruger to Stephen Silva who then provided the Ruger to Dzhokhar Tsarnaev, one of the Boston Marathon bombers. On April 18, 2013, the Ruger was used by the Boston Marathon bombers to kill MIT Police Officer Sean Collier.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Lawrence J. Panetta, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division; Colon Richard D. McKeon, Superintendent of the Massachusetts State Police; Cambridge Police Commissioner Christopher Burke; and MIT Police Chief John DeFava, made the announcement today. The Portland, Maine Police Department also assisted with the investigation. The case was prosecuted by Ortiz’s Organized Crime and Gang Unit.
Buffalo Man Pleads Guilty to Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Reginald Brown, 48, of Buffalo, NY, pleaded guilty to possession with intent to distribute, and distribution, of cocaine before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in and a $1,000,000 fine.
Assistant U.S. Attorney Edward H. White, who is handling the case, stated that on November 9 and November 16, 2011, the defendant sold approximately 13 grams of cocaine to a confidential informant working with the Federal Bureau of Investigation.
The plea is the result of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent in Charge.
Sentencing is scheduled for November 3, 2016 at 1:00 p.m. before Judge Arcara.
Buffalo Man on the Run for One Year Arraigned on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Antwan Hugley, 37, of Buffalo, NY, who was indicted in June 2015 on a charge of conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine, was arraigned before U.S. Magistrate Judge Jeremiah J. McCarthy. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, a fine of $10,000,000, or both.
“I commend the unrelenting efforts of FBI special agents who did not give up and continued to track this defendant until he was taken into custody,” said U.S. Attorney Hochul.
Assistant U.S. Attorneys Edward H. White and Michael J. Adler, who are handling the case, stated that at the time of his indictment in June 2015, the defendant evaded arrest. Law enforcement officers continued to investigate and tracked Hugley’s whereabouts to Orlando, Florida where he was arrested on June 29, 2016.
The defendant is accused of conspiring with others including co-defendant Trammel Bishop between 2011 and December 9, 2014 to distribute cocaine. On August 13, 2013, Houston, Texas police officers encountered Bishop at the Mega Bus parking lot in Houston. Officers asked Bishop if they could search his suitcase and he consented. The officers discovered approximately five kilograms of cocaine hidden in the back of the suitcase. Bishop indicated that he was intending to travel back to Buffalo, NY. Bishop has been convicted and is awaiting sentencing.
Hugley pleaded not guilty and is being held pending a detention hearing on July 29, 2016 at 10:30 a.m. before Judge McCarthy.Today’s arraignment is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent in Charge, and the Houston Police Department, under the direction of Police Chief Martha I. Montalvo.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Boise Man Sentenced to Ten Years in Prison for Distributing Methamphetamine and Unlawful Possession of a FirearmRead the Press Release
BOISE – Agustin de Jesus Aguirre, 28, of Boise, Idaho, was sentenced today to ten years in prison and five years of supervised release for distribution of methamphetamine and unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Aguirre to forfeit $4,250 in drug proceeds and a Smith and Wesson, 9mm pistol. Aguirre pleaded guilty on April 19, 2016.
According to evidence presented in court, Aguirre distributed methamphetamine to an undercover officer on three occasions, selling over five ounces of methamphetamine. Aguirre was arrested on August 11, 2015, on an unrelated state probation violation and was found to be in possession of a 9mm pistol. Aguirre was prohibited from possessing any firearms under federal law as a result of his 2013 conviction for misdemeanor domestic battery.
The case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Boise Police Department.
Barren County, Kentucky, Man Sentenced to 42 Months in Prison for Defrauding Supplemental Security Income ProgramRead the Press Release
Defendant misrepresented his mental condition to qualify for benefits
Ordered to pay $106,716.07 in restitution to victim agencies
BOWLING GREEN, Ky. – A Cave City, Kentucky, man was sentenced yesterday in United States District Court, by District Judge Greg N. Stivers, to 42 months in prison, and ordered to pay restitution of $24,884.80 to the Social Security Administration and $81,831.27 to the Kentucky Department for Medicaid Services, the victim agencies, for defrauding the Supplemental Security Income program, announced United States Attorney John E. Kuhn, Jr.
“Safeguarding programs designed to help those in need is a priority of my office,” stated U.S. Attorney Kuhn. “Defendant Thompson committed a crime when he failed to report income and falsely misrepresented his mental condition in order to receive Supplemental Security Income benefits. He was neither qualified to receive benefits nor should he have received benefits.”
Between August 2009 and April 2013, Gary Hank Thompson, 34, made misrepresentations in order to receive Supplemental Security Income benefits from the Social Security Administration in the amount of $24,884.80, to which he was not entitled. Supplemental Security Income is a federal government program that provides benefits to individuals who are disabled and have limited income and resources.
In his initial application for Supplemental Security Income, Thompson also applied for Medicaid, and during the same period, obtained $81,831.27 in Medicaid benefits.
At various points, including during the initial field interview with Social Security Administration personnel in August 2009, and during the April 15, 2013, redetermination meeting with Social Security Administration personnel in Warren County, Kentucky, defendant Thompson falsely represented his mental condition by slowing his speech and stuttering, and generally saying and doing things to make it seem that he had issues with comprehension, when he did not. Defendant misrepresented his mental condition in this way to qualify for benefits and to continue qualifying for Supplemental Security Income benefits. Thompson’s misrepresentations of his mental condition were material to whether he would receive Supplemental Security Income benefits, as he initially qualified under “organic mental disorders.” When the Social Security Administration was provided with accurate information concerning the Defendant’s mental condition, it reevaluated whether he qualified for Supplemental Security Income and determined he did not.
Additionally, the Defendant made material omissions and misstatements regarding his income and resources, which affected his eligibility for Supplemental Security Income benefits.
This case was prosecuted by Assistant United States Attorney Amanda E. Gregory and was investigated by the Office of the Inspector General of the Social Security Administration.
Alleged Sinaloa Cartel Operator Mauricio Sanchez-Garza Extradited from Mexico to Face Federal Charges in San AntonioRead the Press Release
In San Antonio this afternoon, 45-year-old Mexican National Mauricio Sanchez-Garza made his initial appearance in federal court following his extradition from Mexico yesterday. Sanchez is charged by two federal grand jury indictments in the Western District of Texas with laundering drug distribution proceeds and committing extortion in a scheme involving a Hollywood screenplay. That announcement was made today by United States Attorney Richard L. Durbin, Jr.; Drug Enforcement Administration (DEA) Special Agent in Charge Joseph M. Arabit, Houston Division; Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden; Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter; and, Texas Attorney General Ken Paxton.
Sanchez had remained a fugitive since fleeing the United States to avoid prosecution in 2010. Sanchez faces two separate federal grand jury indictments. On December 15, 2010, a federal grand jury charged Sanchez with one count of conspiracy to commit extortion and one count of money laundering. On July 20, 2011, a separate federal grand jury charged Sanchez with one count of conspiracy to commit money laundering.
According to court records (SA10CR1088), in 2008, Sanchez and 38-year-old Mexican National Jorge Vasquez Sanchez conspired to steal by force a movie manuscript from its rightful owner. The movie, a project between the owner and Proud Mary Productions, was billed as a prequel to “The Passion of Christ.”
On June 12, 2013, Jorge Vasquez Sanchez was sentenced to four years in federal prison followed by three years of supervised release after pleading guilty to one count of extortion. The Court also ordered that Jorge Sanchez forfeit to the Government his rights and interests in the movie project—15% of the net profits of the motion picture.
According to court records (SA11CR616), from 2005 until July 2011, Mauricio Sanchez, Jorge Sanchez and Mauricio’s brother, 47-year-old Mexican National Alejandro Sanchez-Garza, conspired to transport into the United States and conduct financial transactions with proceeds derived from illegal drug trafficking in order to conceal the nature of the funds. Specifically, the defendants entered into joint ventures with drug traffickers by funneling proceeds generated from drug trafficking through their businesses and corporate entities to make the proceeds appear to be legitimate and lawful; insulate the drug traffickers from evidence of criminal involvement in the proceeds; and, to attempt to make a profit for both the defendants and the drug traffickers.
This indictment also contains a notice of criminal forfeiture which seeks the forfeiture of two San Antonio commercial properties as well as a 1991 Bombardier Learjet 31. The indictment also seeks a monetary judgment in the amount of $5 million representing proceeds derived from the above-mentioned scheme.
Alejandro Sanchez-Garza was arrested in September 2012. On August 19, 2014, Alejandro Sanchez-Garza was sentenced to 30 months in federal prison followed by three years of supervised release after pleading guilty to one count of conspiracy to commit money laundering. The Court also ordered that Alejandro Sanchez forfeit to the Government his rights and interests in the properties as well as the Learjet.
This case was investigated by the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and the Texas Attorney General’s Office. The Justice Department's Office of International Affairs provided assistance with the extradition. The department appreciates the support of the government of Mexico in extraditing the defendant to the United States.
9 Charged in Manhattan Federal Court with Trafficking Kilograms of Cocaine Through the U.S. Mail SystemRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), and James J. Hunt, Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), announced the unsealing of an indictment charging nine defendants with conspiring to distribute kilogram quantities of cocaine, and in particular, shipping the cocaine from Puerto Rico to New York City through the United States Postal Service (“USPS”) mail system. Seven of the defendants were taken into federal custody this morning and will be presented this afternoon in Manhattan federal court before U.S. Magistrate Judge Ronald L. Ellis. Two defendants remain at large.
Manhattan U.S. Attorney Preet Bharara stated: “As alleged, the defendants engaged in a brazen scheme to turn the U.S. Postal Service into their own drug delivery service. The defendants, which includes an employee of the U.S. Postal Service, allegedly schemed to ship multiple kilograms of cocaine through the mail, going so far as to claim, in one instance, that a lost package contained the ashes of a cremated relative, when in fact, it contained cocaine.”
USPIS Inspector in Charge Philip R. Bartlett stated: “Drug Trafficking Organizations have been moving large quantities of cocaine through Puerto Rico to the New York metropolitan area for many years, destroying the lives of many through addiction and despair. Today’s arrests should send a strong message to drug traffickers that the United States Postal Inspection Service will spare no resource or expense to protect the sanctity of the mail.”
DEA Special Agent in Charge James J. Hunt said: “Drug dealers’ desperation for product is just as desperate as an addict’s; however the dealer’s ‘fix’ is the profit made off the sale of poison. This investigation underscores the extent drug traffickers will go to in order to smuggle illegal drugs into the United States. The DEA Strike Force, USPIS, and U.S. Attorney’s Office Southern District of New York collaborated resources that uncovered a cocaine trafficking organization responsible for pumping millions of dollars-worth of drugs onto New York City streets.”
According to the allegations contained in an Indictment[1] unsealed today in Manhattan federal court:
Between May 2015 and July 2016, the defendants JUSTIN ACOSTA, ELEELIN DIAZ, JOSE DIAZ, a/k/a “Gordo,” CRISTIAN GARCIA, KELVING HERNANDEZ, FELIX JIMENEZ, a/k/a “Daddy,” ROBERT RODRIGUEZ, a/k/a “Smiley,” MIGUEL TORRES, a/k/a “Ant,” and BRITNEY WORTHY conspired to distribute and possess with intent to distribute five kilograms and more of cocaine.
The defendants operated the drug-trafficking scheme by arranging for the shipment of cocaine from Puerto Rico to various locations in New York City through the USPS, retrieving cocaine from various delivery locations, transporting cocaine to residences and a storage facility, and repackaging and selling the cocaine to individual customers. Since February 2016, law enforcement officers have seized more than 25 kilograms of cocaine from shipments associated with the defendants.
Defendant HERNANDEZ is an employee of the USPS, and assisted co-conspirators by agreeing to track parcels and identifying locations to which narcotics could be sent.
Defendant RODRIGUEZ was involved in facilitating, receiving, and distributing the shipment of cocaine through USPS parcels, and contacted the USPS multiple times for information on the status and location of certain parcels that contained cocaine. In communications with the USPS, including in an email RODRIGUEZ sent directly to the U.S. Postmaster General, RODRIGUEZ falsely asserted that one of the parcels, which he believed had been lost, contained the cremated ashes of his purportedly deceased father. In fact, that parcel had been seized and found to contain approximately two kilograms of cocaine.
* * *
ACOSTA, 26, JOSE DIAZ, 36, GARCIA, 31, JIMENEZ, 28, RODRIGUEZ, 36, TORRES, 34, and WORTHY, 24, were arrested this morning. ELEELIN DIAZ, 27, and HERNANDEZ, 42, remain at large. Each is charged with one count of conspiring to distribute and possess with the intent to distribute narcotics, which carries a maximum sentence of life in prison and mandatory minimum sentence of 10 years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the Court.
Mr. Bharara praised the outstanding investigative work of the USPIS and of the DEA’s New York Organized Crime Drug Enforcement Strike Force, which comprises agents and officers of the DEA, the New York City Police Department, Immigration and Customs Enforcement – Homeland Security Investigations (HSI), the New York State Police, the U. S. Internal Revenue Service, Criminal Investigation Division, the Federal Bureau of Investigation, U.S. Secret Service, the U.S. Marshal Service, New York National Guard, the New York Department of Taxation and Finance, the Rockland County Sheriff’s Office, the Clarkstown Police Department, the Port Washington Police Department, and the New York State Department of Corrections and Community Supervision. The Strike Force is partially funded by the New York/New Jersey High Intensity Drug Trafficking Area (HIDTA), which is a federally funded crime fighting initiative.
The prosecution is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Alex Rossmiller and David Abramowicz are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
25 July 2016
Williams Memorial CME Church to Host Protecting Houses of Worship SeminarRead the Press Release
Augusta, GA – Williams Memorial CME Church will host a Protecting Houses of Worship seminar on Tuesday, July 26 at 6 p.m. Participating in the event will be the United States Attorney’s Office, the FBI and Richmond County Sheriff’s Office.
Law enforcement personnel and local religious and civil leaders will have a discussion on how to prevent and respond to incidents of violence in houses of worship and during religious ceremonies. The event, which is open to the public, will educate community members on what to do to provide safety and security during religious meetings of all denominations.
The seminar will take place at the Williams Memorial CME Church at 1630 15th Street, Augusta, Georgia 30901. For additional information please contact Nic Roberts at 912-652-4422.
Virginia man sentenced for unlawful possession of firearmRead the Press Release
MARTINSBURG, WEST VIRGINIA – Evan Megeath, 33, of Strasburg, Virginia, was sentenced today to 27 months in prison for unlawful possession of a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Megeath, who has previous felony convictions in state court in Virginia, was discovered in unlawful possession of a .22 caliber rifle in July 2015 in Jefferson County, WV. Megeath was previously convicted in the Circuit Court of Warren County, Virginia of the felony offenses of one count of “Breaking and Entering,” two counts of “Grand Larceny,” two counts of “False Pretenses,” one count of “Bad Check,” and one count of “Possession of a Schedule II Controlled Substance.”
Megeath pled guilty in April 2016 to one count of “Felon in Possession of a Firearm.”
Assistant U.S. Attorneys Paul T. Camilletti and Anna Z. Krasinski prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Chief U.S. District Judge Gina M. Groh presided.
Vinton Woman Admits Methamphetamine TraffickingRead the Press Release
A Vinton woman who possessed methamphetamine with intent to distribute pled guilty today in federal court in Cedar Rapids.
Angelika McAtee, age 58, from Vinton, Iowa, was convicted of possessing over 48 grams of pure methamphetamine with intent to distribute it.
At the plea hearing, McAtee admitted that she had been selling methamphetamine. She also admitted to possessing the methamphetamine seized from her Vinton, Iowa, residence on April 29, 2016, and intended to distribute it to others.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. McAtee was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. McAtee faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, $100 in special assessments, and 3 years to life on supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Daniel Tvedt and was investigated by Vinton Police Department, Benton County Sheriff’s Office, Iowa Division of Narcotics Enforcement, United States Department Homeland Security, Homeland Security Investigations, Bureau of Alcohol, Tobacco and Firearms, Benton County Conservation Commission, and the Iowa State Patrol.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-0045.
Follow us on Twitter @USAO_NDIA.
U.S. Marshal, U.S. Attorney to Hold Community Open House August 9 and 10 at Boise City LibraryRead the Press Release
BOISE – Confidence in government and the enforcement of law is achieved by providing true justice and being sincere in our working relationships with all people. In Idaho, the work of our local law enforcement is really amazing to see – and we are proud to work with such great professionals and police leadership. Seeing Boise Police Chief Bill Bones reach out by riding the greenbelt is truly at the heart of community policing, and relationship building.
Because it is important to have confidence in all levels of law enforcement, to include the federal government, U.S. Attorney Wendy Olson and U.S. Marshal Brian Underwood would like to meet with any interested community member in Idaho to shake your hand and let you know we are committed to making justice work for you in Idaho. Because events in the past few weeks have been difficult for our nation and our law enforcement community, making an effort to connect as humans is so critical. Having you come to our office is not always practical, and we must do more to reach out and make that connection.
With that in mind, as United States Marshal and United States Attorney for the District of Idaho, we invite all members of the public to visit with us. We will be at the Boise City Library, 715 South Capitol Blvd. on Tuesday, August 9th from 1 – 3 p.m. and again on Wednesday, August 10th from 4 – 6 p.m. We will be available for any question, concern or issue you would like to talk about. Frankly, we simply want you, the public, to have a chance to personally visit with your federal law enforcement leadership in Idaho.
These are challenging times for law enforcement. We know we must continue to perform our duties in the highest traditions of our profession and never forget that we are here to serve our communities and stand as a symbol of all that is equal and just.
U.S. Attorney Appoints New First Assistant U.S. Attorney for the District of AlaskaRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Assistant U.S. Attorney, Bryan Schroder has been appointed to the position of First Assistant U.S. Attorney (FAUSA) and Criminal Chief for the United States Attorney’s Office, District of Alaska. Mr. Schroder replaces FAUSA Kevin Feldis, who has taken the position as the Resident Legal Advisor for the Department of Justice, Office of Professional Development and Training (OPDAT), for Jakarta, Indonesia. Mr. Feldis will be working with the United States Embassy in Jakarta on a temporary detail and will remain as a member of the United States Attorney’s office for Alaska.
Bryan Schroder has been an Assistant U.S. Attorney since 2005, and is a retired U.S. Coast Guard Captain. He is a 1981 graduate of the U.S. Coast Guard Academy, and 1991 graduate of the University of Washington School of Law. He served 24 years in the Coast Guard, initially in operational assignments in Seattle, Long Beach, California, and San Diego. He then served as a judge advocate in Juneau, Anchorage, Miami, New York, and Colorado Springs. As an Assistant U.S. Attorney, he has handled cases involving drugs, guns, violent crime, fisheries, environmental crime, tax violations, and fraud.
U.S. Attorney Announces “Be Here for Kids” Child Safety Event in TucsonRead the Press Release
TUCSON, Ariz. - The U.S. Attorney’s Office for the District of Arizona, as part of the Department of Justice’s Project Safe Childhood initiative, is hosting the “Be Here For Kids” event on Friday, July 29, 2016 at the Foothills Mall, in Tucson, Ariz. The event will take place from 10:00 a.m. to 3:00 p.m.
The National Center for Missing and Exploited Children (NCMEC) created the “Be Here For Kids” campaign to promote awareness about all child safety issues. The campaign is designed to help parents and others teach children to be aware, alert, and cautious to potential threats and to provide steps that children can take to stay safe, both on the Internet and in daily life. Families also are encouraged to take 25 minutes to talk to their children about abduction, safety prevention, and good digital citizenship online.
“The annual ‘Be Here For Kids’ national child safety campaign provides a good reminder for children and families about digital safety in the online world and overall as children prepare to go back to school in the coming weeks.” said United States Attorney John S. Leonardo. “This event is designed to increase awareness among parents and children of the potential threats to child safety present in daily life, including the Internet, and to help equip them to better avoid those threats.”
This year’s event is being presented in partnership with several federal and local law enforcement agencies, as well as the Children’s Advocacy Center, Pima County Attorney’s Office, and the Arizona Attorney General’s Office. Interactive children’s self-defense demonstrations by Ko Sho Martial Training Institute will take place throughout the day, and Marana Police Department will also be providing free digital child identification kits during the event.
For more information on NCMEC, visit www.missingkids.com. For more information about the Take 25 campaign, visit www.Take25.org. For more information on Project Safe Childhood, visit www.projectsafechildhood.gov.
RELEASE NUMBER: 2016-56__Be Here For Kids
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Two sentenced for drug distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two individuals were sentenced for drug distribution in federal court in Martinsburg today, United States Attorney William J. Ihlenfeld, II, announced.
Laquan Eugene Johnson, 36, of Baltimore, Maryland, was sentenced to 210 months in prison for distributing heroin. Johnson pled guilty in April 2016 to one count of “Distribution of Heroin.”
Ronald Lee Jackson, 29, of Martinsburg, West Virginia, was sentenced to 60 months in prison for distributing crack cocaine. Jackson pled guilty in April 2016 to one count of “Distribution of Cocaine Base.”
Special Assistant U.S. Attorney Stephanie Taylor, also of the Berkeley County Prosecuting Attorney’s Office, prosecuted the Jackson case on behalf of the government and Assistant U.S. Attorneys Paul T. Camilletti and Anna Krasinski prosecuted the Johnson case on behalf of the government.
The Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Two Conspirators Sentenced for Roles in Analogue Distribution SchemeRead the Press Release
ABINGDON, VIRGINIA – Another member of a 22-member conspiracy that brought a controlled substance analogue to Southwest Virginia from as far away as China were sentenced today in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr. announced.
Marcy Nichole Branch, 27, of St. Paul, Virginia, previously pled guilty to one count of conspiring to possess with the intent to distribute and distribute seven kilograms of alpha-PVP, a controlled substance analogue. Today in District Court, Branch was sentenced to 235 months in federal prison.
In a separate hearing today in District Court, Teresa Ann Richard, 47, of Coeburn, Virginia, who previously pled guilty to conspiring to possess with the intent to distribute and to distribute 135 grams of alpha-PVP. Today in federal court, Richards was sentenced to 45 months in federal prison.
“These synthetic drugs are highly addictive and extremely dangerous,” United States Attorney Fishwick said today. “We will continue to partner with those in law enforcement to combat the importation and distribution of these volatile substances.”
According to evidence presented at previous hearings by Assistant United States Attorney Erin M. Kulpa, those sentenced today, and others members of the conspiracy, disturbed alpha-PVP, a controlled substance analogue, in Southwest Virginia between 2012 and 2015. Members of the conspiracy placed orders of the powder form of alpha-PVP from distributors based in Florida and China and had these items shipped to residential addresses in Wise, Virginia. The conspirators would retrieve the packages and distribute the contents to mid-and-low level dealers in and around Wise, Virginia for distribution to alpha-PVP users.
Members of the conspiracy also regularly transported the hard form of alpha-PVP, commonly known as “Gravel” from suppliers in North Carolina and Tennessee to Wise, Virginia for distribution. As part of the conspiracy, members would break the larger quantities of “Gravel” into smaller amounts for sale to drug users, typically .5 to 1 gram amounts.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Postal Inspection Service, the Southwest Virginia Drug Task Force, the Virginia State Police, the Big Stone Gap Police Department, the Wise County Sheriff’s Office, the City of Norton Police Department, the Dickenson County Sheriff’s Office, the Sullivan County, Tennessee, Sheriff’s Office, the Coeburn Police Department, the Clintwood Police Department and the Wise Police Department. Assistant United States Attorney Erin M. Kulpa prosecuted the case for the United States.
Tribal Member who Shot and Killed Innocent Stranger in Parking Lot of Emerald Queen Casino Sentenced to 26 Years in PrisonRead the Press Release
A 28–year-old enrolled member of the Crow Indian Tribe of Montana was sentenced today in U.S. District Court in Tacoma to 26 years in prison and five years of supervised release for second degree murder and use of a firearm in a crime of violence, announced U.S. Attorney Annette L. Hayes. JEREMY SCHLENKER shot and killed 26-year-old Brandon Williams in the parking lot of the Emerald Queen Casino in Fife, Washington. The two men were strangers. Brandon Williams was trying to protect his companions from SCHLENKER in the early morning of March 21, 2015. At the sentencing hearing U.S. District Judge Benjamin Settle noted the “profound loss and unrelenting emotional pain” for Williams’ family saying SCHLENKER engaged in an “unprovoked act of aggression” while under the influence of alcohol and marijuana. “Let the word go out: this is no place for mixing substance abuse with weapons possession,” Judge Settle said.
“This devastating crime requires a lengthy sentence. The victim’s family and friends deserve to know that the man who murdered their loving son and friend will be severely punished for his senseless and brutal crime,” said U.S. Attorney Annette L. Hayes. “The public has a right to know that the defendant will not be out on the streets again for a long time – his anger once again fueled by alcohol, marijuana and guns. And although no sentence will undo the harm that this defendant caused, it does ensure that justice will prevail over the violent mayhem this defendant spread in his wake.”
According to records filed in the case, SCHLENKER had been drinking heavily the night of March 20, 2015.SCHLENKER traveled with his girlfriend to various locations on the Puyallup reservation assaulting his girlfriend multiple times and pointing a handgun at people – some of whom he did not know. At one point SCHLENKER hit the rear bumper of a car in the parking lot of the Emerald Queen Casino. When the driver of that car got out to check for damage, SCHLENKER pointed the gun at the driver ordering her to get back in the car. That victim was able to get away. Some 15 minutes later, still in the parking lot, SCHLENKER stopped his car behind a vehicle belonging to Brandon Williams. SCHLENKER’s car was blocking Williams’ car from pulling out of a parking space. SCHLENKER did not know Williams, but rolled down his window and pointed his gun at the four people in the car. SCHLENKER got out of his car and approached the passenger side of Williams’ car, asking if those inside had a gang affiliation. The passengers said they were just trying to leave. When Williams got out of the car, SCHLENKER pistol whipped him twice. As Williams turned back towards the driver’s door SCHLENKER fired twice, killing him.
Following the shooting SCHLENKER initially fled to Oregon where he was apprehended. SCHLENKER pleaded guilty on April 7, 2016.
Since SCHLENKER is a Tribal member and the crime occurred on Tribal land, federal courts have jurisdiction in this case.
The case was investigated by the FBI and the Puyallup Tribal Police Department. The case was prosecuted by Assistant United States Attorneys Rebecca Cohen and Ye-Ting Woo.
Three charged with manufacturing, distributing performance enhancing drugsRead the Press Release
ELKINS, WEST VIRGINIA – A federal grand jury returned an indictment charging two Florida residents and one North Carolina resident with manufacturing and distributing performance enhancing drugs, United States Attorney William J. Ihlenfeld, II, announced.
William Bagwell, 45, of Petersburg, Florida; Cole Leggett, 52, of Clearwater, Florida; and Robert Nicholson-Gould, 45, of Lexington, North Carolina, allegedly conspired with one another to violate the Federal Food, Drug, and Cosmetic Act for nearly two years.
Bagwell was the owner and operator of Freedom Pharma, a company that was a manufacturer and distributor of various unapproved prescription drugs to customers throughout the United States, including the Northern District of West Virginia. Leggett and Nicholson-Gould were both employed by Bagwell.
Freedom Pharma was not registered with the United States Food and Drug Administration as a drug manufacturer. The drugs, which include, dehydrochloromethyltestosterone, drostanolone enanthate, exemestane, methandienone, nandrolone decanoate, oxandrolone, oxymetholone, sildenafil, stanozolol, tadalafil, tamoxifen citrate, testosterone, and trenbolone, were misbranded and introduced into interstate commerce.
“The FDA ensures that drugs are safe, effective, and manufactured using good manufacturing practice” said Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations’ Metro Washington Office. “Those who attempt to circumvent these requirements and sell potentially dangerous unapproved and misbranded products will be brought to justice.”
They were each charged with one count of “Conspiracy to Violate the Federal Food, Drug, and Cosmetic Act,” and one count of “Conspiracy to Violate the Controlled Substances Act.” In addition, Bagwell and Leggett were each charged with eight counts of “Introductions of Misbranded Drugs into Interstate Commerce,” and six counts of “Unlawful Distribution of Controlled Substances.”
They each face up to five years in prison and a fine up to $250,000 for the conspiracy to violate the Federal Food, Drug, and Cosmetic Act charge; and up to ten years in prison and a fine up to $250,000 for the conspiracy to violation the Controlled Substances Act charge. Additionally, Bagwell and Leggett face up to three years in prison and a fine up to $10,000 for each of the introduction of misbranded drugs charges; and up to ten years in prison and a fine up to $250,000 for each of the unlawful distribution charges. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jarod J. Douglas is handling the case on behalf of the government. The United States Food and Drug Administration is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Three Bakersfield Brothers Charged with Manufacturing and Distributing Synthetic CannabinoidsRead the Press Release
FRESNO, Calif. — Three brothers were arrested last Friday, charged with manufacturing and distributing synthetic cannabinoids (or spice), conspiracy, and maintaining a drug-involved premise, Acting United States Attorney Phillip Talbert announced.
On Thursday, July 21, 2016, a federal grand jury returned a four-count indictment against Yousef Aezah, 27, Adhim Aezah, 22, and Dirar Aezah, 18, all of Bakersfield. All three were arraigned on Friday after their arrest before U.S. Magistrate Judge Jennifer L. Thurston in Bakersfield and entered pleas of not guilty.
According to court documents, the Aezahs operated a website, through which they distributed large quantities of synthetic cannabinoids, including AB-CHMINACA, a Schedule I controlled substance. The Aezahs manufactured the synthetic cannabinoids at a warehouse in Bakersfield and shipped the synthetic cannabinoids using U.S. Mail to customers across the country. Law enforcement executed search warrants at the manufacturing laboratory and residences of the defendants. They seized more than $300,000 in cash from the residences and seized approximately $949,000 from a bank account controlled by Yousef Aezah.
This case is the product of an investigation by the Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California Highway Patrol, the Bakersfield Police Department, and the Fresno Police Department. Assistant United States Attorneys Grant B. Rabenn and Jeffrey A. Spivak are prosecuting the case.
If convicted, the defendants face maximum statutory penalty of 20 years in prison and a $1 million fine for manufacturing and distributing a controlled substance, and conspiracy; and 20 years in prison and a $500,000 fine for maintaining a drug-involved premise. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Texas Man Charged with Conspiracy to Bribe Former Corrections CommissionerRead the Press Release
Jackson, Miss – Mark Longoria, 53, of Houston, Texas has been charged in a Criminal Information with conspiracy to pay bribes to former Mississippi Department of Corrections (MDOC) Commissioner Christopher B. Epps, announced Acting United States Attorney Harold Brittain and FBI Special Agent in Charge (SAC) Donald Alway.
Longoria will appear for arraignment on Tuesday, July 26, 2016, at 1:30 p.m. before U.S. Magistrate Judge Keith Ball. The maximum penalty for conspiracy is five years in prison and a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Deputy Criminal Chief Darren LaMarca, Assistant United States Attorney Patrick Lemon, and financial analyst Kim Mitchell.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.