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Wednesday 25 May 2016
International Arms Trafficker Found Guilty in Manhattan Federal Court for Conspiring to Kill Americans and Provide Material Support to A Foreign Terrorist OrganizationRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and John P. Carlin, Assistant Attorney General for National Security, announced that VIRGIL FLAVIU GEORGESCU was convicted today by a jury of conspiring to sell large quantities of military-grade weaponry to the Fuerzas Armadas Revolucionarias de Colombia (the “FARC”) – a designated foreign terrorist organization – to be used to kill Americans in Colombia. GEORGESCU’s conviction followed a 10-day trial in Manhattan before U.S. District Judge Ronnie Abrams.
Manhattan U.S. Attorney Preet Bharara said: “As the jury swiftly found, Virgil Flaviu Georgescu conspired to kill American officers and provide material support to the FARC. In concert with his co-defendants, Georgescu conspired to obtain and sell to the FARC military weapons, including anti-aircraft cannons and rocket propelled grenades, to be used against American personnel and aircraft in Colombia. Having sought to profit from the murder of U.S. officers abroad, Georgescu has now been convicted in the U.S. by a unanimous jury.”
According to the allegations in the Indictment, other documents publicly filed in Manhattan federal court, and the evidence introduced at trial:
Between May 2014 and December 2014, GEORGESCU, a Romania-based weapons broker, conspired with his co-defendants, a former Romanian government official and a former member of the Italian Parliament, to sell an arsenal of weapons, including machine guns and anti-aircraft cannons, to the FARC, with the understanding that the FARC would use the weapons against United States personnel in Colombia. During a series of recorded telephone calls and in-person meetings, GEORGESCU and his co-conspirators agreed to sell the weapons to three confidential sources (the “CSs”), who represented that they were acquiring these weapons for the FARC but were, in fact, working with the Drug Enforcement Administration (“DEA”). GEORGESCU and his co-conspirators agreed to provide these weapons to the CSs with the specific understanding that the weapons would be used to kill Americans and, in particular, to shoot down American helicopters and airplanes.
GEORGESCU first spoke with a CS in May 2014. Thereafter, GEORGESCU recruited both of his co-conspirators to help obtain the weapons for the CSs, with the understanding that the former Romanian government official would provide weapons expertise and the former Italian member of Parliament would help secure fraudulent end-user certificates, in order to make the illegal sale of weapons look legitimate. GEORGESCU instructed his co-conspirators and others involved in the deal to use encrypted applications when communicating about the weapons deal to avoid detection by U.S. authorities.
Over the course of five consensually recorded meetings with the CSs in Romania and Montenegro, GEORGESCU and his co-conspirators provided the CSs with catalogues of weapons that included anti-aircraft cannons, rocket propelled and thermobaric grenades, and other high-powered weapons, as well as military-grade optical equipment. During these meetings, the CSs explained that the arms would be used to kill Americans and GEORGESCU offered his thoughts on what weapons would best suit the FARC’s needs.
Between September 2014 and December 2014, GEORGESCU and his co-conspirators traveled to Romania, Montenegro, Italy, Germany, Albania, Poland, and Bulgaria to advance the weapons deal. During this period, the co-conspirators met with weapons suppliers, obtained sample fraudulent end-user certificates, and test-fired military-grade rifles. In December 2014, GEORGESCU and his co-conspirators secured a signed contract from a European weapons supplier to provide more than $17 million dollars’ worth of weapons to a straw purchaser. On December 15, 2014, GEORGESCU met with the CSs, showed them the signed contract, and discussed means of payment and transportation of the weapons to Colombia.
GEORGESCU was arrested by Montenegrin authorities on the charges in the Indictment on December 15, 2014, and extradited to the United States on February 25, 2015.
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GEORGESCU, 43, of Romania, was convicted of one count of conspiracy to kill United States officers or employees, which carries a maximum sentence of life in prison, and one count of conspiracy to provide material support or resources to a designated foreign terrorist organization, which carries a maximum sentence of 15 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. GEORGESCU is scheduled to be sentenced by Judge Abrams on September 16, 2016, at 3:00 p.m.
Mr. Bharara praised the outstanding investigative efforts of the DEA’s Special Operations Division, the DEA’s Bucharest Country Office, the DEA’s Rome Country Office, the Montenegrin National Police, and the Romanian Authorities. Mr. Bharara also thanked the Counterterrorism Section of the Department of Justice’s National Security Division and the Department of Justice’s Office of International Affairs.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Andrea Surratt and Ilan Graff are in charge of the prosecution, with assistance from Trial Attorney Josh Parecki of the Counterterrorism Section.
Indictments Unsealed Charging 36 in Sumter in Cocaine Trafficking ConspiracyRead the Press Release
Contact Person: JD Rowell (803) 929-3000
United States Attorney Bill Nettles advised today that the Columbia Violent Gang Task Force (CVGTF), of which the City of Sumter is a member, arrested several defendants who are charged in 3 separate indictments charging a conspiracy to possess with intent to distribute and to distribute cocaine and crack cocaine in the midlands of South Carolina. All defendants who were arrested today in connection with the unsealing of these indictments will make their initial appearances at the Mathew J. Perry Federal Courthouse in Columbia, South Carolina, tomorrow at 10:00 am before the Honorable Paige J. Gossett, United States Magistrate Judge.
The arrests today mark the next step in the CVGTFs efforts to combat violent crime linked to drug trafficking in the Sumter and Columbia areas of South Carolina.
This investigation began over a year ago when FBI, DEA and City of Sumter Task Force Officers targeted the cocaine sources of supply who were selling cocaine to the defendants referenced above. Agents and Task Force Officers previously conducted arrest operations on June 16, 2015, and October 20, 2015. As of the date of today’s takedown, this investigation has resulted in the seizure of over 9 kilograms of powder cocaine, the seizure of almost $900,000.00, the seizure of 8 firearms that were used in furtherance of drug trafficking, and convictions/guilty pleas of 14 defendants who were previously arrested and prosecuted in connection with this investigation. Agents have learned that this group was directly responsible for the distribution of well over 150 kilograms (wholesale value of $6,000,000.00) of cocaine in Sumter and Richland Counties during the time frame of the conspiracy.
To date, the following defendants have entered guilty pleas to drug trafficking conspiracy charges and/or money laundering offenses:
JUAN PABLO CONTRERAS
a/k/a Juan David Montoya
EDUARDO ESAID CONTRERAS-REYES
MARCO ANTONIO CASTRO
a/k/a “Chino”
JAVIER TOSCANO-SERRANO
PATAR ONEAL MONTGOMERY
a/k/a Patrick Montgomery
a/k/a “Dink”
a/k/a “Dinky”
ANDRE LEWAYNE BROOKS
JIMMY TONY MCDOWELL
a/k/a “Jimmy Fingers”
JERMAINE TERRELL HILTON
a/k/a “Fifty”
MICHAEL ANTONIO FLOYD
a/k/a “Tony”
a/k/a “Tone”
a/k/a “Fat Tony”
RAYSHON JAMAAL FOSTER
a/k/a “Shon”
a/k/a “Terry Brown
DONALD ANTWON DINGLE
a/k/a “Red”
a/k/a “Flash”
COREY EMANUEL WHITE
a/k/a “Chopper”
a/k/a “Choppa”
a/k/a “El Chop”
HAROLD MATTHEW MCFADDEN
BRYANT CHRISTOPHER FORD
This case is yet another example of the fine work being done by Federal, State and local law enforcement agencies working together in South Carolina.
The CVGTF is consists of the following agencies:
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Federal Bureau of Investigation, SAC David A. Thomas, [email protected]
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South Carolina Law Enforcement Division, Chief Mark Keel, [email protected]
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Columbia Police Department, Chief Skip Holbrook [email protected]
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Richland County Sheriff’s Department, Sheriff Leon Lott [email protected]
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Sumter Police Department, Chief Russell Roark [email protected]
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South Carolina Army National Guard Counterdrug Unit, LTC Walter Ginn, [email protected]
The United States Attorney stated that all charges in these indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Illegal Alien from Mexico Sentenced for Leading Alien Smuggling Ring Resulting in DeathRead the Press Release
CORPUS CHRISTI, Texas – A 24-year-old illegal alien from Mexico has been ordered to federal prison for transporting illegal aliens, announced U.S. Attorney Kenneth Magidson. Juan Diego Lozano-Salgado pleaded guilty March 2, 2016, to transporting undocumented aliens on Dec. 13, 2015.
Today, U.S. Senior District Judge Hayden Head sentenced Lozano-Salgado to 60 months in federal prison. Not a U.S. citizen, he is expected to face deportation proceedings following his release from prison.
Lozano-Salgado was responsible for coordinating the transportation of illegal aliens from the brush north of the Border Patrol checkpoints to Houston. His role included being a foot guide through the brush and coordinating the pick-up of the aliens by vehicle on Highway 281 near Falfurrias.
On the evening of Dec. 13, 2015, a group of aliens Lozano-Salgado guided entered a pick-up truck near Brooks County and travelled North on U.S. Highway 281. A total of 14 people including Lozano-Salgado were in the pick-up, both in the interior cab and in the bed. Law enforcement spotted the truck and attempted to conduct a traffic stop, at which time the truck sped off in an attempt to elude capture. Shortly thereafter, officers in the area responded to a vehicle accident where it was discovered that the truck had left the road and had hit a tree in a head-on collision. The driver and one passenger had been pronounced dead at the scene and several others were transported to area hospitals. Twelve additional subjects were later determined to be unlawfully present in the United States. The deceased passenger still remains unidentified.
Lozano-Salgado will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation along with the Texas Department of Public Safety, U.S. Border Patrol and the Brooks County Sherriff’s Office. Assistant U.S. Attorney Brittany L. Jensen is prosecuting the case.
Illegal Alien from Mexico Sentenced for Leading Alien Smuggling Ring Resulting in DeathRead the Press Release
CORPUS CHRISTI, Texas – A 24-year-old illegal alien from Mexico has been ordered to federal prison for transporting illegal aliens, announced U.S. Attorney Kenneth Magidson. Juan Diego Lozano-Salgado pleaded guilty March 2, 2016, to transporting undocumented aliens on Dec. 13, 2015.
Today, U.S. Senior District Judge Hayden Head sentenced Lozano-Salgado to 60 months in federal prison. Not a U.S. citizen, he is expected to face deportation proceedings following his release from prison.
Lozano-Salgado was responsible for coordinating the transportation of illegal aliens from the brush north of the Border Patrol checkpoints to Houston. His role included being a foot guide through the brush and coordinating the pick-up of the aliens by vehicle on Highway 281 near Falfurrias.
On the evening of Dec. 13, 2015, a group of aliens Lozano-Salgado guided entered a pick-up truck near Brooks County and travelled North on U.S. Highway 281. A total of 14 people including Lozano-Salgado were in the pick-up, both in the interior cab and in the bed. Law enforcement spotted the truck and attempted to conduct a traffic stop, at which time the truck sped off in an attempt to elude capture. Shortly thereafter, officers in the area responded to a vehicle accident where it was discovered that the truck had left the road and had hit a tree in a head-on collision. The driver and one passenger had been pronounced dead at the scene and several others were transported to area hospitals. Twelve additional subjects were later determined to be unlawfully present in the United States. The deceased passenger still remains unidentified.
Lozano-Salgado will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation along with the Texas Department of Public Safety, U.S. Border Patrol and the Brooks County Sherriff’s Office. Assistant U.S. Attorney Brittany L. Jensen is prosecuting the case.
INTERPOL Washington's Media Outreach Event 2016Read the Press Release
On May 24, 2016, INTERPOL Washington Director Geoffrey S. Shank held a media briefing where correspondents from the national news networks received information regarding INTERPOL Washington. The correspondents were given the opportunity to field questions regarding INTERPOL and INTERPOL Washington, and the event concluded with the correspondents receiving a tour of the INTERPOL Operations and Command Center.
To hear the interview conducted by NPR with Director Shank, please click here
Huntsville Man Indicted for Bank Fraud and Aggravated Identity TheftRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted a Huntsville man on fraud and aggravated identity theft charges in connection with a scheme to steal and counterfeit business checks in November and December 2014, announced U.S. Attorney Joyce White Vance and U.S. Postal Inspector Frank Dyer.
An eight-count indictment filed in U.S. District Court charges that BERNARD EUGENE MCKINNEY II, 28, with the aid of others, counterfeited legitimate business checks that had been stolen from the U.S. mail, changed the payee names to himself or others, and then cashed the checks at north Alabama BBVA Compass Bank branches.
According to the indictment, McKinney would obtain stolen business checks or counterfeit checks. He would then forge the signature of the person who signed the original checks, which were used to make counterfeits, and/or change the name of the payee to his or other peoples’ names on the stolen business checks. McKinney would then cash, or assist others in cashing, the counterfeit checks and get cash for his personal use, thereby exposing the banks to financial loss.
The indictment’s six fraud counts list six fraudulent checks totaling nearly $53,000 cashed at BBVA branches.
The maximum penalty for bank fraud is 30 years in prison and a $1 million fine. The penalty for aggravated identity theft is a minimum two-year prison sentence served consecutively with any penalty imposed for a related crime, and a maximum $250,000 fine.
The U.S. Postal Inspection Service investigated the case, which Assistant U.S. Attorney David H. Estes is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Houma Postal Worker Pleads Guilty to Theft of MailRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ELVIRA DUTHU DUPLANTIS, age 51, of Houma, pled guilty today for theft of mail.
According to court records, as a result of a complaint from the Postmaster of the Houma Post Office regarding missing mail, the United States Postal Service, Office of Inspector General (“Postal OIG”) initiated an investigation into DUPLANTIS, who was a letter carrier assigned to the Houma Post Office. The investigation determined that DUPLANTIS stole approximately 113 gift cards, which included Visa debit cards and gift cards for major retail stores and restaurants, with a total value of over $3,200.
DUPLANTIS faces a maximum penalty of five (5) years imprisonment, followed by up to three (3) years of supervised release, and a $250,000 fine. U.S. District Judge Kurt D. Engelhardt set sentencing for August 24, 2016.
U.S. Attorney Polite praised the work of the United States Postal Service, Office of Inspector General, for investigating this matter. Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba is in charge of the prosecution.
Honduran National Sentenced for Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ORLI DAGOBERTO ARGUETA-SANCHEZ, a/k/a "Orli Dagoberto Argueta," age 27, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Bill of Information for illegal reentry of removed alien.
U.S. District Judge Ivan L.R. Lemelle sentenced ARGUETA-SANCHEZ to time served, one (1) year supervised release and $100 mandatory assessment. ARGUETA-SANCHEZ will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.
According to court records, on or about January 6, 2016, ARGUETA-SANCHEZ was found illegally present in the United States after having been officially deported and removed on or about November 7, 2008.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Honduran Man Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that HECTOR ORLANDO RECATE-REYES, age 30, a citizen of Honduras, was sentenced today after previously pleading guilty to illegal reentry of a removed alien.
U.S. District Judge Ivan L.R. Lemelle sentenced RECATE-REYES to time served, to be followed by one year on supervised release. RECATE-REYES will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court records, RECATE-REYES reentered the United States after having been previously deported on August 8, 2012.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U S. Attorney Spiro G. Latsis is in charge of the prosecution.
Hingham Woman Pleads Guilty to Mortgage FraudRead the Press Release
BOSTON – A Hingham woman pleaded guilty today in U.S. District Court in Boston to defrauding mortgage companies in connection with multiple mortgages she obtained on a single residence.
Denise Bruce, 56, pleaded guilty to five counts of bank fraud. U.S. District Court Senior Judge Douglas P. Woodlock scheduled sentencing for Aug. 18, 2016.
Between 2004 and 2008, Bruce fraudulently obtained five mortgage loans from different banks in amounts ranging from $325,000 to $487,500 on her Hingham property by submitting false information regarding her employment history, income, assets, and debt. Bruce also filed fraudulent discharges of mortgages with the Plymouth County Registry of Deeds to create the appearance that earlier loans had been paid in full, when in fact, none of the loans had been paid. In total, Bruce obtained $2,129,000 in proceeds from her fraudulent loans.
United States Attorney Carmen M. Ortiz; Steven Perez, Special Agent in Charge of the Federal Housing Finance Agency, Office of Inspector General, Northeast Region; and Christy Goldsmith Romero, Special Inspector General for the Office of the Special Inspector General for the Troubled Asset Relief Program, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Victor A. Wild of Ortiz’s Economic Crimes Unit.
Heroin Dealer Pleads Guilty Drug Trafficking and Firearm ChargesRead the Press Release
NORFOLK, Va. – Michael Lanell Easley, Jr., 36, of Portsmouth, pleaded guilty today to conspiracy to distribute and possess with intent to distribute heroin and possession of firearms in furtherance of drug trafficking.
According to court documents, Easley was the subject of an undercover buy operation. He maintained a residence on Riverview Avenue in Portsmouth for the purpose of manufacturing and distributing heroin. On Nov. 23, 2015, federal agents and state law enforcement officers attempted to execute an arrest and search warrant related to Easley. As the agents and officers approached Easley, he ingested a significant amount of heroin. In an effort to save Easley’s life, an ambulance was called and he was rushed to the hospital. Easley came close to cardiac arrest several times during the trip, but doctors were able to stabilize him and he survived.
During the search of Easley’s home, agents and officers recovered heroin and a .45 caliber semi-automatic handgun. They also recovered digital scales and strainers commonly used to prepare heroin for sale.
Easley will be sentenced on September 21 and faces a maximum penalty of life in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and James A. Cervera, Chief of Police, Virginia Beach Police Department, made the announcement after Magistrate Judge Douglas E. Miller accepted the plea. The case is being prosecuted by Assistant U.S. Attorneys Joseph E. DePadilla and Andrew C. Bosse, and Special Assistant U.S. Attorney John F. Butler.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-44.
Grand Jury Returns Indictment Charging West Valley Man in Connection with Alleged Forgery, Identity Theft SpreesRead the Press Release
SALT LAKE CITY – A federal grand jury returned a 31-count indictment Wednesday morning charging Kevin Russell Humphreys, age 35, of West Valley City with multiple violations of federal law in connection with alleged forgery and identity theft crime sprees in 2013 and 2015 in Salt Lake County.
The indictment alleges 21 counts of bank fraud for his alleged attempts to defraud banks by cashing stolen and forged checks.
The first six bank fraud counts relate to Humphreys’ alleged efforts to obtain, typically via theft of mail, identifications and checks belonging to other people or organizations. He then forged checks in various amounts, made checks payable to people whose identities he illegally possessed or forged, and then cashed or attempted to cash the checks at various financial institutions in Salt Lake County. The amount of money involved in the bank fraud alleged in these six counts is $19,531.10.
The remaining 15 bank fraud counts relate to lines of credit Humphreys applied for and received using personal identifiers that belonged to other people. He received $93,300 in credit based on the alleged fraud in the 15 counts. Because he didn’t use all of the credit, actual losses to the banks were about $6,448.70.
Three counts in the indictment allege fraud in relation to Treasury securities in connection with three stolen U.S. Treasury checks. Humphreys is also charged with five counts of aggravated identity theft; one count of access device fraud for his alleged use of a credit card belonging to a person identified in the indictment as S.P. The indictment alleges Humphreys used the card at various locations in Salt Lake County, accumulating $4,464.16 in charges.
The final count of the indictment alleges possession of stolen mail in connection with one of the Treasury checks.
The maximum potential penalty for each count of bank fraud is 30 years in prison. The counts alleging fraud in relation to Treasury securities and access device fraud have potential sentences of 10 years and mail fraud is up to five years. Aggravated identity theft carries a minimum-mandatory sentence of two years per count, and can be added to the end of any sentence imposed on other counts. Humphreys is currently in state custody. A federal arrest warrant will be issued based on the charges in the indictment.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
The Utah Identity Theft Task Force case is being prosecuted by the U.S. Attorney’s Office in Utah. It is being investigated by task force officers with the Unified Police Department’s Kearns/Magna Precinct and Inspectors with the U.S. Postal Inspection Service. The investigation also included significant investigative efforts by detectives with the Draper Police Department and the UPD’s Midvale Precinct.
Gang Member Convicted of Making False Statements at the Jamal Dean SentencingRead the Press Release
A member of the same gang as Jamal Dean, who made false statements while testifying as a witness at the sentencing of Jamal Dean, was convicted by a jury on April 12, 2016, after a two-day trial in federal court in Sioux City.
Cesar Ramos, age 27, from Sioux City, Iowa was convicted of three counts of making false material declarations. The verdict was returned following about one hour of jury deliberations.
The evidence at trial revealed the following facts. Ramos and Jamal Dean were in the same gang and Jaime Espinoza was in another gang. After Espinoza was shot, Ramos – according to statements he gave to investigators – drove Jamal Dean away from near the scene of the shooting. When he was asked about these observations at the sentencing of Jamal Dean, however, he feigned a memory lapse repeatedly answering: “I don’t remember.” The jury found these answers were made under oath, were false, that Ramos knew they were false, and were material to district court’s sentencing inquiry; and, therefore, constituted perjury.
Sentencing before United States District Court Judge Lenard T. Strand will be set after a presentence report is prepared. Ramos remains in custody of the United States Marshal pending sentencing. Ramos faces a possible maximum sentence of 5 years’ imprisonment, a $250,000 fine, $100 special assessment, and up to three years of supervised releases following any imprisonment, on each of the three charges.
The case was investigated by the Sioux City Police Department and the United States Department of Justice – Bureau of Alcohol Tobacco Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Forde Fairchild
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-4058.
Follow us on Twitter @USAO_NDIA.
Four Men Indicted for Trafficking Methamphetamine in North AlabamaRead the Press Release
BIRMINGHAM – A federal grand jury today indicted four men on charges of trafficking methamphetamine in north Alabama. The indictment follows the four men’s arrest last week and the seizure of more than 23 pounds of methamphetamine, announced U.S. Attorney Joyce White Vance and Drug Enforcement Administration Assistant Special Agent in Charge Clay A. Morris.
An indictment filed in U.S. District Court charges ALFREDO LIZARRAGA ALARCON, 43, of Cleveland, Ala., FRANCISCO ALVAREZ “Edgar Alarcon” MONTES, 55, of Birmingham, DANIEL MORA “Moralejos” GONZALEZ, 43, of Tarrant, and GUILLERMO OLEA PEREZ, 44, of Phoenix, Ariz., with conspiring to distribute 500 grams or more of methamphetamine in Jefferson County and elsewhere in north Alabama between January 2014 and May 2016. Alarcon, Montes and Gonzalez are all Mexican nationals, and Perez is a Cuban national.
The indictment also charges various defendants with specific distribution counts. Those counts are as follows:
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Alarcon and Gonzalez, distributing 50 grams or more of methamphetamine in Jefferson County on May 3;
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Alarcon and Montes, distributing 50 grams of methamphetamine on May 17 in Jefferson County;
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Alarcon, Montes and Perez, possessing with intent to distribute 500 grams or more of methamphetamine on May 18 in Jefferson and Blount counties;
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Gonzalez, possessing with intent to distribute 50 grams or more methamphetamine on May 18 in Jefferson County.
The indictment contains 26 counts of using a telephone to facilitate a drug-trafficking crime. All of the telephone counts include Alarcon, 14 include Montes and four include Gonzalez.
The conspiracy charge and the possession with intent to distribute more than 500 grams of methamphetamine both carry a penalty of 10 years to life in prison and a maximum $10 million fine. The charges involving distributing 50 grams or more of methamphetamine carry a penalty of five to 40 years in prison and a maximum $5 million fine.
The charge of using a telephone to facilitate a drug-trafficking crime carries a maximum penalty of four years in prison and a $250,000 fine for each count.
DEA investigated the case, which Assistant U.S. Attorney Austin D. Shutt is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Four Individuals Sentenced to Prison for International Fraud and Money Laundering Scheme Involving Sale of GoldRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Michael Skillern (49, Houston, Texas) to 10 years’ imprisonment, Jon Craig Nelson (69, Houston, Texas) to 8 years’ imprisonment, Naadir Cassim (40, Barcelona, Spain and Orlando, Florida) to 5 years’ imprisonment, and Adriana Maria Camargo, a/k/a Adriana Palomino (37, Barcelona, Spain) to 2 years’ imprisonment for conspiracy, money laundering conspiracy, and mail fraud. Some were also sentenced for wire fraud and illegal monetary transactions. The Court also ordered Cassim and Camargo to pay a money judgment of approximately $3.3 million. Nelson and Skillern were ordered to pay a money judgment of approximately $7.3 million, the proceeds of the charged criminal conduct.
These individuals were convicted on February 3, 2016.
According to testimony and evidence presented at trial, from August 2011 through February 2014, Cassim, Nelson, Skillern, and Camargo, along with others, engaged in a fraud scheme where they directed and caused the sale of purported but nonexistent gold ore or gold doré from mines owned or controlled by them, through a company called OWN GOLD, LLC. The conspirators then caused victims to wire funds to bank accounts controlled by them. The conspirators used the victims' funds to perpetuate the scheme and for their own personal enrichment. Trial evidence established that approximately 440 victims wired over $7.3 million to the conspirators during the course of the fraud scheme.
“The dismantling of this transnational criminal organization is the result of international law enforcement agencies working together,” said Susan L. McCormick, special agent in charge of HSI Tampa. “HSI will continue to leverage our unique international authority to protect victims and bring criminals to justice.”
The case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the U.S. Secret Service, with assistance from the City of London Police, Spanish National Police, and U.S. Department of Interior’s Bureau of Land Management. It was prosecuted by Assistant United States Attorneys Sara C. Sweeney and Rachelle DesVaux Bedke.
Former University of Miami Director of Finance Pleads Guilty to Tax Evasion ChargesRead the Press Release
A former University of Miami Director of Finance pled guilty to tax evasion charges for failing to report to the Internal Revenue Service (IRS) $2.3 million that she embezzled from the university.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Kimberly Jean Miller, 58, pled guilty to four counts of tax evasion, in violation of Title 26, United States Code, Section 7201.
According to court documents, from 2002 until 2012, Miller was the director of finance at the University of Miami's Rosensteil School of Marine and Atmospheric Science (RSMAS). The defendant's job responsibilities included overseeing the payment of RSMAS's vendor invoices. Between 2002 and 2012, Miller used her authority at RSMAS to embezzle $2.3 million from the University of Miami by falsifying invoices from a vendor called International Assets. Specifically, Miller altered the International Assets invoices so that the company name would appear as "Inter, Inc." and the checks would be mailed back to RSMAS, instead of to International Assets directly. Miller then deposited the "Inter, Inc." checks into a business bank account in the name Intercontinental Oceans, Inc., a company Miller opened in 1993.
Between 2008 and 2011, Miller prepared her own tax returns and knowingly failed to report to the IRS the money she had unlawfully obtained through her embezzlement scheme. Miller owes the IRS an additional $329,020 in income taxes for her 2008 through 2011 tax returns.
Sentencing is scheduled for August 16, 2016 before U.S. District Judge Robert N. Scola, Jr. At sentencing, Miller faces a maximum statutory sentence of five years in prison per count.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Amanda Perwin.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Town Manager Pleads Guilty to Bank FraudRead the Press Release
ABINGDON, VIRGINIA – The former town manager of the Town of Coeburn, who admitted to applying for and receiving credit in the town’s name, pled guilty earlier this week in the United States District Court for the Western District of Virginia in Abingdon, announced United States Attorney John P. Fishwick Jr.
Loretta Ilene Mullins Mays, 48, of Coeburn, Virginia, waived her right to indictment and pled guilty earlier this week to a one count Information charging her with bank fraud. In addition to restitution to be paid to the credit card companies, Mays agreed to pay $20,313 in restitution to the Town of Coeburn.
“This defendant was trusted by the Town of Coeburn to serve with integrity and instead used her position to enrich herself,” United States Attorney John P. Fishwick Jr. said today. “When public officials abuse the power placed in them the citizens it is imperative we hold them accountable.”
Mays was the Town Manager for the Town of Coeburn, Virginia from March 27, 2006 to February 14, 2013.
On April 24, 2006, Mays fraudulently applied for a Bank of America Business Visa credit card in the name of the Town of Coeburn when, in fact, Mays had no intent to use the card for Town of Coeburn business. To keep her fraudulent activity hidden from town employees and Bank of America, Mays did not use the Town’s address on the application, but instead used her own address. After receiving the card, Mays used the card to obtain a $10,000 cash advance on the card and subsequently used the card for personal expenses resulting in a total of more than $30,000 in fraudulent cash advances and purchases.
Mays admitted earlier this week to obtaining two additional Bank of America credits cards in the name of the Town of Coeburn that she used for personal expenses, as well as a BB&T credit card in the name of the Town of Coeburn that was also used for personal expenses. In total, Mays fraudulently received over $60,000 in cash advances and purchases.
The investigation of the case was conducted by the Virginia State Police and the Federal Bureau of Investigation with assistance provided by the Dickenson County Commonwealth’s Attorney’s Office. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Former NBA Player Indicted on Charity Fraud SchemeRead the Press Release
A federal grand jury sitting in Kansas City, Missouri, returned an indictment Monday, which was unsealed this morning, against a former professional basketball player and representative for the National Basketball Players Association (NBPA), charging him with corruptly interfering with the internal revenue laws, conspiracy to commit wire fraud, obstruction of justice and aggravated identity theft, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Tammy Dickinson of the Western District of Missouri.
The indictment alleges that Kermit Alan Washington, 64, used a charity he founded and operated, Project Contact Africa (PCA), to defraud donors, eBay and PayPal and the Internal Revenue Service (IRS). In order to induce individuals, including former professional athletes, to make donations to PCA, Washington falsely represented that 100 percent of the donations would go to Africa. However, Washington diverted charitable donations from PCA to buy gifts and pay personal expenses, including rent, vacations, jewelry and entertainment.
“Individuals who use charitable organizations to defraud donors and evade tax obligations inflict substantial harm on every U.S. taxpayer and cause untold damage to well-intentioned charitable endeavors,” said Acting Assistant Attorney General Ciraolo. “The Department is committed to identifying those engaged in such criminal conduct and holding them accountable.”
“The federal indictment alleges this former NBA player used his celebrity status to exploit the good intentions of those who donated to a charity he founded, called Project Contact Africa,” said U.S. Attorney Dickinson. “According to the indictment, Washington profited by diverting hundreds of thousands of dollars in donations that was supposed to benefit a clinic in Africa for needy families and children, but instead bankrolled his own personal spending.”
It is alleged that Washington referred professional athletes to Ron Mix, a former professional football player and an attorney licensed in the state of California, whose practice focused on the filing of workers’ compensation claims on behalf of former professional athletes. In exchange for the referrals, Mix made payments to PCA and claimed those amounts as charitable deductions on his personal tax returns. Upon receipt of these payments, Washington diverted the funds for his own personal benefit. Washington filed false individual income tax returns for 2010 through 2013, failing to report the funds he diverted from PCA and false Forms 990-EZ on behalf of PCA. Washington also falsified PCA’s corporate minutes to obstruct the investigation and used the identity of another individual to perpetrate this scheme.
It is further alleged that Washington conspired with others to defraud eBay and PayPal, customers and donors of PCA by allowing the co-conspirators to use PCA’s name, tax-exempt status and IRS Employee Identification Number (EIN) with eBay and PayPal so the co-conspirators could avoid substantial listing and registration fees incurred in operating online, for-profit businesses. Moreover, customers who made purchases falsely believed that 100 percent of the proceeds from the co-conspirators’ online eBay sales benefited PCA. In exchange for allowing the co-conspirators to use PCA’s tax-exempt status, Washington received payments from the co-conspirators.
Washington was arrested yesterday in Los Angeles and had his initial appearance in U.S. District Court in the Central District of California. Washington was ordered to surrender his passport and released on bond and must wear a location monitoring device. Washington’s next court date is tentatively scheduled on June 16 before U.S. Magistrate Judge John T. Maughmer in the Western District of Missouri.
If convicted, Washington faces a statutory maximum sentence of three years in prison on the charge of corrupt interference with the internal revenue laws, 20 years in prison on the charge of conspiring to commit wire fraud, 20 years in prison on the charge of obstruction and a mandatory sentence of two years in prison for the charge of aggravated identity theft, which will be in addition to any other term of imprisonment he receives. He also faces supervised release, a maximum fine of $250,000 on each count and restitution.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Dickinson commended special agents of IRS-Criminal Investigation, Immigration and Customs Enforcement’s Homeland Security Investigations, who investigated the case and Assistant U.S. Attorneys Patrick Daly and Curt Bohling of the Western District of Missouri, and Trial Attorney Ryan Raybould of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Miami-Dade Police Department Officer Convicted of Wire FraudRead the Press Release
Following an eight-day trial, a jury before United States District Judge Jose E. Martinez convicted Rafael Duran, a former police officer with the Miami-Dade Police Department (MDPD), of one count of conspiracy to commit wire fraud and seven counts of wire fraud. Duran had been employed as an officer with the MDPD from May 1994 until March 2016, when the MDPD terminated him following his 2015 indictment in this case.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge of the Miami Field Office of the Federal Bureau of Investigation (FBI), and Juan J. Perez, Director of the MDPD, made the announcement.
Duran’s offenses arose out of his use of his position as an officer with the MDPD to facilitate a fraud scheme operating out of a local credit repair company. The credit repair company would attempt to repair the credit histories and credit scores of its customers by making false claims to the major credit reporting bureaus that its customers had been victims of identity theft.
In 2010, Duran was assigned to as a detective on the MDPD’s Mortgage Fraud Task Force, which was part of the Economic Crimes Bureau. The evidence at trial showed that between April 2010 and June 2010, Duran wrote 10 offense-incident reports in which he falsely claimed that customers of the credit repair company had reported to him that they had been victims of identity theft. However, the customers never made the reports, and Duran never met with them. Moreover, the alleged victims in the reports written by Duran had not been victims of identity theft. Duran also wrote a false identity theft report for an employee of the credit repair company.
After completing the false police reports, Duran delivered them to the credit repair company, which sent them to the major credit reporting bureaus, along with letters that mirrored the false claims in Duran’s police reports. As a result of Duran’s false police reports, several customers of the credit repair companies obtained commercial lines of credit which subsequently went into default.
Duran also falsified identity theft reports for both himself and a family member. However, Duran put those reports in the name of a fellow detective without telling the detective. Duran delivered the reports to the credit repair company so that it could attempt to remove derogatory items from their credit histories through false claims of identity theft.
Duran had the credit repair company use the false police report in his name to try to remove from his credit repair history a $210,000 mortgage on a condominium in Naples, FL. The mortgage had not been the product of any identity theft. Rather, Duran had taken out the mortgage in June 2007 and stopped making payments on the mortgage sometime in 2008.
Following the verdict, the Court revoked the defendant’s bond and remanded him into custody. The Court set Duran’s sentencing for July 26, 2016, at 1:30 pm. Duran faces a maximum sentence per count of twenty years imprisonment and a $250,000 fine.
Mr. Ferrer expressed appreciation for the investigative efforts of the FBI Miami Area Public Corruption Task Force and the Professional Compliance Bureau of the Miami-Dade Police Department. This case is being prosecuted by Assistant U.S. Attorneys Michael Davis and Ilham Hosseini.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Chief Financial Officer of Company Receiving Federal Funds and Contractor for That Company Charged with Bribery, Fraud, and Other Offenses in 47-Count IndictmentRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announces that a federal grand jury in Wilmington returned a 47 count Indictment on Tuesday, May 24, 2016.
The superseding Indictment charged WILLIAM ROBERT CANUPP, the Chief Financial Officer for a company that is the local manager of the public sector behavioral health system for several counties in eastern North Carolina, and RONNIE L DAVIS, a contractor, with Conspiracy, Bribery, Organization Fraud, and Wire Fraud. It also charged CANUPP with money laundering.
If convicted of Count 1 (Conspiracy), the defendants face a maximum imprisonment of 5 years. Each of counts 2-37 and count 47 carries a maximum imprisonment term of 10 years. Each of counts 38-46 carries a maximum imprisonment term of 20 years. The Indictment also seeks forfeiture of proceeds traceable to the offenses charged, including gross proceeds of $577,595.
The charges and allegations contained in the indictment are merely accusations. The defendants are considered innocent unless and until proven guilty in a court of law.
The case is being investigated by the Federal Bureau of Investigation (FBI), the Internal Revenue Service - Criminal Investigation (IRS-CI), the United States of Department of Health and Human Services, Office of Inspector General (HHS-OIG), and the United States Department of Housing and Urban Development, Office of Inspector General (HUD-OIG).
"These allegations are serious because people trusted with the resources to care for others should not use that access to defraud the healthcare system. The FBI will work tirelessly to ensure federal funding is spent in an appropriate and legal manner,” said John Strong, Special Agent in Charge of the FBI in North Carolina.
"As alleged, embezzling hundreds of thousands of taxpayer dollars meant for crucial federal and state programs to include care for mentally ill and developmentally disabled patients just to enrich yourself is a serious betrayal of trust," said Special Agent in Charge Derrick L. Jackson. "HHS/OIG is dedicated to ensuring the integrity of taxpayer-funded programs and we will aggressively pursue executives who steal from vulnerable beneficiaries."
“The theft and subsequent concealment allegedly perpetrated by Canupp and Davis are prime examples of the extraordinary lengths individuals go to in order to steal and launder their ill-gotten gains,” said Thomas J. Holloman, III, Special Agent in Charge, IRS Criminal Investigation. “This indictment contains serious allegations, and IRS Criminal Investigation is committed to the pursuit of such criminal activity, that would harm any business, but in this case one that provides valuable service for those in need.”
“At such a critical time for a Department with programs that are vital to the well-being of the less fortunate in our nation, it is all the more important that those entrusted to public service are completely committed to those in need,” said Nadine E. Gurley, Special Agent in Charge of the Department of Housing and Urban Development Office of Inspector General. “The recipients of our funding deserve honest and efficient service and, in this case, have allegedly been let down by individuals who were supposed to be devoted to their best interests.”
Former Bank CEO Sentenced to 18 Months for Obstructing an Examination by the Federal Reserve BoardRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of TIMOTHY PAUL OWENS, 55, to 18 months in federal prison for obstructing an examination by the Board of Governors of the Federal Reserve (Federal Reserve Board). OWENS was indicted on December 15, 2014, and pleaded guilty on July 30, 2015. He was sentenced today before Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minn.
“Mr. Owens’ obstruction of a Federal Reserve Board examination is the type of criminal conduct that harms federal regulators’ ability to appropriately supervise banking institutions,” said Mark Bialek, Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau. “Today’s sentencing is another step in a joint effort with our law enforcement partners to hold accountable those who undermine the integrity of the examination process.”
“The integrity of the examination process is central to ensuring the safety and soundness of the nation’s banking system,” said Fred W. Gibson, Jr., Acting Inspector General for the Federal Deposit Insurance Corporation. “When a bank official misuses his position of trust to obstruct that process, he needs to be held accountable. The Federal Deposit Insurance Corporation Office of Inspector General is pleased to have joined the U.S. Attorney’s Office and our law enforcement colleagues in assisting with this case and bringing about today’s sentencing of Mr. Owens.”
“This case is a perfect example of how well various law enforcement agencies in Minnesota work together to combat financial crimes,” said Assistant U.S. Attorney Robert Lewis. “Agents from OIG and FBI worked together to get to the bottom of Mr. Owens’ conduct. That level of cooperation makes these prosecutions possible.”
According to the defendant’s guilty plea and documents filed in court, OWENS served as CEO and Chairman of Voyager Bank (“Voyager”) and the President and CEO of Voyager Financial Services Corporation (“VFSC”). In June 2009 the Federal Reserve Board (“FRB”) conducted an examination of VFSC, focusing specifically on loans made to VFSC insiders, including OWENS. During the examination, FRB representatives found that VFSC had issued four direct loans to OWENS, totaling more than $5.4 million, and had purchased participation in a letter of credit (“LOC”), worth $7.5 million, obtained by OWENS from another bank.
According to the defendant’s guilty plea and documents filed in court, the FRB formally demanded in writing that the VFSC Board of Directors review OWENS’ loans and submit documentation showing that the loans to OWENS had been reviewed by the Board of Directors and were consistent with existing bank policies. On July 7, 2009, OWENS received the letter from the FRB, but did not disclose it to the VFSC board, and secretly prepared a response that was false and misleading. OWENS’ response to the FRB stated that the VFSC board had reviewed the loans, that OWENS had only three loans and had exclusive access to a $3.6 million family trust, that the board had approved his loans pursuant to a revised loan policy, and that OWENS was reducing his overall debt levels. In addition, OWENS submitted a false and misleading three-page “Policy Statement” that had not been approved by the VFSC board; he also submitted documents that inaccurately portrayed his financial circumstances and ability to repay his loans by exaggerating his wealth and concealing his liabilities.
This case is the result of an investigation conducted by the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau; the Federal Deposit Insurance Corporation, Office of Inspector General; the Federal Housing Finance Agency, Office of Inspector General; and the Federal Bureau of Investigation.
The Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau provides independent oversight to improve their programs and operations and to prevent and detect fraud, waste, and abuse.
Assistant U.S. Attorney Robert Lewis prosecuted this case.
Defendant Information:
TIMOTHY PAUL OWENS, 55
Wayzata, MN
Convicted:
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Obstructing Examination of a Financial Institution, 1 count
Sentenced:
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18 months in federal prison
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2 years supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
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Forest Grove Man Convicted of Foreign Sex Tourism and Child Pornography Charges Following Jury TrialRead the Press Release
PORTLAND, Ore. – Billy J. Williams, United States Attorney for the District of Oregon, announced that a federal jury in Portland found Steven Douglas Rockett, 47, of Forest Grove, guilty of producing child pornography outside of the United States, engaging in illicit sexual conduct in a foreign country, five counts of producing or attempting to produce child pornography, and possession of child pornography. U. S. District Judge Michael H. Simon presided over the seven day trial, which concluded on May 24, 2016. It is the first foreign sex tourism trial held in Oregon. A sentencing hearing is scheduled for August 30, 2016.
The evidence presented at trial established that Rockett traveled to the Philippines, where he sexually abused Filipino children, and produced or attempted to produce child pornography depicting them. The evidence also established that Rockett solicited children (either directly or through a parent) both in the Philippines and in Oregon, to take and send him sexually explicit images of themselves. In addition, Rockett surreptitiously recorded children undressing and showering at his residence in Forest Grove, at a former residence in Aloha, and in hotel rooms in the Philippines.
The investigation was a collaborative effort on the part of the Forest Grove Police Department, the Washington County Sheriff’s Office, and the Federal Bureau of Investigation. Investigators executed search warrants at Rockett’s residence, and seized computer equipment and digital data storage devices. Investigators found a pin-hole camera hidden in a wall in a guest bathroom, which Rockett used to record images of naked children. Another spy camera, hidden inside a clock radio, contained surreptitious video recordings of naked Filipino children in the bathroom and shower of Rockett’s hotel room. Rockett appeared in some of the videos.
FBI Special Agents traveled to Cebu City, Philippines, where they identified and interviewed some of the victims depicted in the videos, and some of the children who Rockett solicited to send him sexually explicit images. The jury heard testimony from seven victims who were sexually abused or exploited by Rockett in Oregon and overseas. The jury deliberated several hours before reaching their verdict.
“This verdict is a testament to the dedication and hard work of federal, state, and local authorities who diligently followed the evidence in this case,” Williams said. “It is a shining example of interagency cooperation in the hard fight to keep children safe here in Oregon and outside the United States. It is vindication for the courageous child victims who spoke out against their abuser.” Williams added, “This verdict serves notice to all sexual predators that we will pursue you wherever you commit your crimes and wherever you hide – whether on the internet, in the shadows of our community, or abroad.”
The investigation was hindered by Rockett’s use of computer encryption and disc-wiping software. As a result, investigators cannot be certain that they have identified all of Rockett’s child victims.
This case was investigated by the Forest Grove Police Department, the Washington County Sheriff’s Office, the Northwest Regional Computer Forensics Laboratory, the Washington County District Attorney’s Office, and the FBI, and was prosecuted in federal court by Assistant United States Attorneys Paul T. Maloney and Gary Y. Sussman, Project Safe Childhood Coordinator for the District of Oregon.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the U.S. Department of Justice and led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Five Individuals Charged with Burglary from Rosebud Dialysis CenterRead the Press Release
United States Attorney Randolph J. Seiler announced that three Rosebud, South Dakota men, one Rosebud, South Dakota woman, and one Mission, South Dakota woman have been indicted by a federal grand jury for Third Degree Burglary.
Jonathan Anthony Jones, a/k/a DJ Jones, age 36; Robert Pomani, age 24; Seryl Leroy Pomani, Jr., a/k/a Leroy Pomani, age 28; Alicia Good Shield, age 30; and Michelle Iron Cloud, age 30 were all indicted for Third Degree Burglary. They all appeared before United States Magistrate Judge Mark A. Moreno and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to five years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
It is alleged that on January 23, 2016, Jones, Robert Pomani, Leroy Pomani, Good Shield and Iron Cloud unlawfully entered the DaVita Dialysis Center with the intent to commit larceny and aided and abetted each other in doing so.
The charge is merely an accusation and all individuals are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk W. Albertson is prosecuting the case.
Iron Cloud, Leroy Pomani, Robert Pomani and Jones were remanded to the custody of the U.S. Marshals Service pending trial. Good Shield was released on bond. A trial date has not been set.
Felon Admits Illegally Possessing Loaded HandgunRead the Press Release
PITTSBURGH - On May 23, 2016, a former resident of Pittsburgh and Gibsonia, pleaded guilty in federal court to a charge of violating federal firearms laws, United States Attorney David J. Hickton announced today.
Issa Jamal Battle, aka “Ees-Bay,” pleaded guilty to the one-count federal indictment before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that Battle had been previously convicted of several prior felony charges and was wanted on an outstanding arrest warrant for an unrelated incident when members of the United States Marshal Fugitive Task Force and Detectives from the Pittsburgh Bureau of Police stopped him on California Avenue while driving a rental vehicle. Despite the clear and direct orders of the officers, the defendant was observed making hand movements toward the seat belt lock area. There, police located a 45 Auto caliber semi-automatic handgun loaded with ammunition.
Judge Schwab scheduled sentencing for Sept. 7, 2016 at 9:30am. The law provides for a total sentence of at least 15 years and up to life in prison and a fine of up to $250,000.00 for defendants who qualify as an “Armed Career Criminal” with at least three prior convictions for crimes of violence or serious drug offenses. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
The Judge ordered the United States Marshals Service to transport Battle back to jail and incarcerate him until his September sentencing date.
Assistant United States Attorney Ross E. Lenhardt of the Violent Crime Section of the United States Attorney’s Office is prosecuting Battle on behalf of the government.
United States Attorney David J. Hickton commended all of the law enforcement efforts that brought Battle to justice.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crimes. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the United States Marshal Service Fugitive Task Force, and the Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case.
Essex County, New Jersey, Man Pleads Guilty to Role in Oxycodone Distribution RingRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted his role in a conspiracy to illegally obtain and distribute oxycodone in New Jersey, U.S. Attorney Paul J. Fishman announced.
Rickie Horvath, 54, of Belleville, New Jersey, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an indictment charging him with one count of conspiracy to distribute oxycodone.
According to documents filed in this case and statements made in court:
Using confidential sources, physical surveillance, and recorded text messages and telephone calls, investigators with the Drug Enforcement Administration (DEA) discovered that members and suppliers of a drug-trafficking organization secured prescriptions for oxycodone and other controlled substances from various doctors in New Jersey, filled them at pharmacies in Belleville and elsewhere, and sold the drugs for a profit. The investigation identified Horvath as a member of the drug trafficking organization.
Horvath admitted that from Feb. 5, 2014, to Aug. 13, 2014, he personally went to various doctors’ offices and obtained prescriptions for pills containing oxycodone, had the prescriptions filled, and sold the pills to members of the conspiracy and others. He said that on a single day in June 2014, he traveled to a doctor’s office in Livingston, New Jersey, where he and two conspirators each obtained a prescription for 60 Endocet pills. Horvath and his conspirators dropped off the three prescriptions to be filled by a pharmacy in East Orange, New Jersey. Horvath admitted that he and his two conspirators then found a fourth conspirator to buy the 180 Endocet pills. Horvath and his conspirators traveled to the East Orange pharmacy with the third conspirator buyer, where Horvath used the fourth conspirator’s money to purchase the filled prescriptions. Horvath and his conspirators then sold the 180 Endocet pills to the fourth conspirator.
Oxycodone is a Schedule II controlled substance – meaning that it has a high potential for
abuse, a currently accepted medical use with severe restrictions, and abuse of the drug may lead
to severe psychological or physical dependence. The Endocet pills obtained and sold by Horvath each contained 10 milligrams of oxycodone.
The charge to which Horvath pleaded guilty carries a maximum potential penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for Sept. 12, 2016.
Of the individuals originally charged with Horvath – Victoria Horvath, 43, of Belleville, New Jersey; Monica Horvath, 22, Tony Marco, 47, and Steven Horvath, 45, all of Rutherford, New Jersey; and Justin Farraj, 24, of Newark, New Jersey – all have pleaded guilty and await sentencing. Brian Perez, 23, was sentenced in September 2014 to 40 months in prison. Luis Rivera, 25, was sentenced in August 2015 to 54 months in prison. In April 2016, Daniel Horvath, 27, was sentenced to 27 months in prison and Johnny Horvath, 46, was sentenced to 30 months in prison. Charges were dismissed against Belleville pharmacist Vincent Cozzarelli after his death in April 2014.
The indictment remains pending against five other conspirators; the charges and allegations in the indictment against them are merely accusations, and they remain innocent unless and until proven guilty.
U.S. Attorney Fishman credited the DEA’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the OCDETF/Narcotics Unit of the U.S. Attorney’s Office in Newark. The principal mission of the OCDETF program, under which this investigation was conducted, is to identify, disrupt and dismantle the most serious drug-trafficking, weapons-trafficking and money-laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Defense counsel: Damian Conforti Esq., Newark
Eagle Pass Businessman Sentenced for Cocaine DistributionRead the Press Release
In Del Rio today Felipe Carmona-Rodriguez, 51, of Eagle Pass, Texas was sentenced on federal narcotics trafficking charges announced United States Attorney Richard L. Durbin, Jr., DEA Special Agent in Charge Joseph Arabit, Houston Division, and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Carmona-Rodriguez was convicted by a federal jury on April 11, 2015 of conspiracy to possess with the intent to distribute 500 grams or more of cocaine from January 1, 2009 until March 21, 2014, and two counts of possession with intent to distribute less than 500 grams of cocaine.
Appearing before U. S. District Judge Alia Moses, Carmona-Rodriguez was sentenced to 262 months for conspiring to possess with the intent to distribute cocaine from January 1, 2009 until March 21, 2014. He was also sentenced to 240 months on each of the two counts of possession with intent to distribute cocaine. These sentences will be served concurrently. He was also ordered to pay a $60,000 money judgment to the United States.
Evidence presented at the sentencing hearing showed that Carmona-Rodriguez had approximately six persons distributing cocaine for him. The evidence showed that Carmona-Rodriquez used his home and two businesses, Felipe’s Auto Detail Shop and Felipe’s Auto Sales, as fronts to sell cocaine. Carmona-Rodriguez hired others to sell cocaine for him and collected the street tax from these dealers on behalf of the Mexican Mafia. It was revealed that Carmona-Rodriguez had been involved in the distribution of narcotics for twenty-eight (28) years and had assisted in the transportation of $500,000 - $1,000,000 in drug proceeds from Chicago to Mexico on a number of occasions.
The case resulted from a joint investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations and United States Border Patrol. Also assisting in the investigation was the Texas Department of Public Safety - Criminal Investigations Division. This case was prosecuted by Assistant United States Attorneys Ralph Paradiso and Timothy Duree.
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Durant Man Sentenced to 72 Months for Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that ESDGAR AVILA, age 27, of Durant, Oklahoma, was sentenced to 72 months imprisonment, followed by 3 years of supervised release for FELON IN POSSESSION OF FIREARM AND AMMUNITION, in violation of Title 18, United States Code, Section 922 (g)(1) and 924(a)(2).
The charge arose from an investigation by the Durant Police Department and the Federal Bureau of Investigation. The defendant pled guilty in December, 2015.
The Indictment alleged that on or about October 18, 2015, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition, which had been shipped and transported in interstate commerce.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which he will serve his nonparoleable sentence.
Assistant United States Attorney Dean Burris represented the United States.
Detroit heroin dealer pleads guilty to Federal drug crimeRead the Press Release
CHARLESTON, W.Va. – A Detroit drug dealer pleaded guilty today to a federal heroin crime, announced Acting United States Attorney Carol Casto. Jason Matthew Brown, 35, entered his guilty plea to possession with intent to distribute heroin.
Brown admitted that on January 24, 2015, he was traveling with Justin Randolph from Detroit to Charleston with approximately 100 grams of heroin that Brown and Randolph intended to sell. The Kanawha County Sheriff’s Department stopped the vehicle and located the heroin, which was hidden in a spare tire in the trunk and wrapped in black tape. Brown further admitted that he had been responsible for bringing up to 1000 grams of heroin from Detroit for distribution in the Rand area of Kanawha County.
Brown faces up to 20 years in federal prison when he is sentenced on August 31, 2016. Justin Randolph, of Rand, previously pleaded guilty to distribution of heroin and faces up to 20 years in federal prison when he is sentenced on June 22, 2016.
The Kanawha County Sheriff’s Department, the Metropolitan Drug Enforcement Network Team, and the West Virginia State Police conducted the investigation. Assistant United States Attorney John J. Frail is handling the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Department of Justice Continues to Refine Strategies to Fight Child ExploitationRead the Press Release
SIOUX CITY, IA - The United States Attorney’s Office and the Mercy Child Advocacy Center held a joint press conference today at Mercy Medical Center to commemorate the 10th Anniversary of Project Safe Childhood (PSC), a Department of Justice nationwide initiative to combat child sexual exploitation. Assistant United States Attorney Timothy Duax and Child Advocacy Center Forensic Interviewer Sherrie Schweder, discussed national and local strategies designed to combat the sexual exploitation of children.
Although originally intended to combat technology-facilitated sexual exploitation of children, the success of the PSC over the past 10 years resulted in its expansion to encompass all federal child exploitation offenses. Just last year, 61 coordinated Internet Crimes Against Children (ICAC) task forces nationwide, representing more than 3,500 federal, state, tribal, and local law enforcement, conducted investigations leading to the arrest of more than 8,500 individuals. Those prosecutions not only rescued victims already being harmed, but also helped prevent other children from becoming victimized.
However, to continue their success, law enforcement agencies and prosecutorial agencies must respond to emerging technological advances, such as encryption technologies, and anonymization networks, which are used by online sex offenders to obscure their identities. These offenders have also increasingly migrated to organized group enterprises, where they can collaborate with other like-minded predators to perpetrate their offenses.
In addition to investigating child exploitation offenses, the United States Attorney’s Office and its partners are also committed to providing community-based outreach efforts. These outreach efforts include internet safety presentations at local schools, and for community groups.
United States Attorney Kevin Techau stated, “Public awareness and education about the current and future threats to children in our district are fundamental to any successful strategy to combat child exploitation. Although the identification of those threats and the investigation and prosecution of offenders are essential, our greatest achievement would be to prevent those crimes from happening in the first place. Consequently, we intend to take measures to positively impact the awareness, understanding, and responses of parents, educators, community members, and children of potential dangers.”
A particular area of emphasis will be placed on combatting the ever-increasing incidence of sextortion offenses. Sextortion is a form of exploitation where an offender obtains information or an image from a child and then uses the compromising information or image to extort the child to create sexually explicit images. Sextortion offenders typically threaten minors ages 10-17, the typical age range for juvenile Internet users, but increasingly, investigations have revealed that offenders manipulate the victim to abuse younger siblings or friends, thereby extending the threat to even younger and more vulnerable victims.
Going forward, the United States Attorney’s Office and its partners in the fight against child exploitation will continue to utilize a victim-centered approach in pursuing justice. Investigative and prosecution agencies, educational institutions, mental health professionals, victim advocates, medical experts, child service agencies, juvenile justice systems, non-profits, and others who are engaged in responding to sexually exploited children and youth will prioritize the provision of timely, victim centered, individualized, trauma informed, culturally competent, and comprehensive services to these victims.
To learn more about Project Safe Childhood, visit: https://www.justice.gov/psc.
Follow us on Twitter @USAO_NDIA.
Delaware Repeat Offender Sentenced to 15 Years in Prison for Receiving Child PornographyRead the Press Release
A Delaware man was sentenced today to 180 months in prison for receipt of child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Charles M. Oberly III of the District of Delaware.
Eric Aldrich, 25, of Milford, Delaware, previously pleaded guilty to one count of receipt of child pornography. U.S. District Judge Leonard P. Stark of the District of Delaware presided over today’s sentencing.
At sentencing, the court found that Aldrich has a prior conviction in Delaware for dealing in child pornography and as part of his federal offense, he possessed over 600 images of child pornography, including material involving prepubescent minors and sadistic or masochistic conduct.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Delaware Internet Crimes Against Children Task Force investigated this case. Trial Attorney Leslie Williams Fisher of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Edmond Falgowski of the District of Delaware prosecuted this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Defendant Pleads Guilty for his Role in Cashing Stolen Tax Refund ChecksRead the Press Release
Gregorie Garcon, 57, pled guilty for his role in a scheme involving the cashing of stolen tax refund checks.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Garcon pled guilty to one count of theft of public money, in violation of Title 18, United States Code, Section 641. As part of his plea agreement, Garcon agreed to forfeit $29,792 in U.S. currency.
According to court documents, Garcon purchased stolen tax refund checks from a tax return preparer for a percentage of the face value of the checks. Garcon then gave the checks to a co-conspirator who took the checks to a check casher. Unbeknownst to the co-conspirator or Garcon, the check casher was in fact an IRS undercover agent (UCA) who agreed to cash the checks for a fee of 35% of the checks’ face value. From March to June 2013, the co-conspirator provided the UCA with seventeen (17) stolen tax refund checks totaling $110,259.97. The UCA paid the co-conspirator $29,792 for these checks.
During an interview with IRS-CI Special Agents, Garcon stated that the tax return preparer gave him the stolen refund checks in exchange for Garcon’s agreement to find a way to cash the checks. Garcon admitted that the checks he received from the tax return preparer were the same seventeen (17) checks that Garcon gave to the co-conspirator, which were ultimately cashed by the UCA.
Sentencing is scheduled for August 5, 2016, before U.S. District Judge Beth Bloom. At sentencing, Garcon faces a maximum statutory sentence of ten years in prison.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Alicia E. Shick.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Dayton Man Sentenced to 25 Years for Kidnapping and RobberyRead the Press Release
DAYTON – Shellie Woods, 42, of Dayton, was sentenced in U.S. District Court to 300 months in prison for conspiracy to commit kidnapping as well as robbery.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division and Dayton Police Chief Richard Biehl announced the sentence handed down yesterday by U.S. District Judge Walter H. Rice.
According to court documents, between late 2011 and early 2012, Woods and several others worked together to rob businesses in Southern Ohio. The co-defendants include: Terrell Mabry, 46, of Dayton; Dion Gullatte, 43, of Dayton, and Eric Black, 39, of Dayton.
On November 10, 2011, they completed the robbery of St. Elizabeth pharmacy, a store in the Dayton area that sold prescription drugs. The four men unlawfully entered the home of an employee of the pharmacy and seized and restrained the employee and his wife before demanding that the employee provide them with security codes and keys necessary to gain access to the pharmacy.
Gullatte used the codes to steal hundreds of prescription pills, including oxycodone, from the pharmacy. He and Woods took the pills to a Dayton residence where they split the robbery proceeds with Black and Mabry.
On one other occasion, Woods, Gullatte and Mabry worked together with another person, Jason Brice, 29, of Columbus, to rob the US Bank on Gettysburg Avenue in Dayton. Again the defendants unlawfully entered the home of an employee, a bank teller, to hold her and her family hostage until she agreed to help them gain access to the bank’s vault.
They held the teller’s family hostage at her home for almost twenty-four hours before attempting to move the family to another location. The defendants ultimately instructed the teller to enter the bank and to request that the bank give her abductors money to secure the release of her family.
Woods pleaded guilty on June 23, 2015 to conspiracy to commit kidnapping as well as robbery. Brice was sentenced on December 16, 2014 to 124 months in prison and Mabry was sentenced yesterday to 168 months in prison for their roles in the scheme. Black and Gullatte are scheduled for sentencing in the coming weeks.
Acting U.S. Attorney Glassman commended the cooperative investigation by the FBI and the Dayton Police Department, as well as Assistant United States Attorney Brent Tabacchi, who is representing the United States in this case.
Bridgeport Man Charged with Forcing Minor into ProstitutionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a grand jury in New Haven has returned an indictment charging BRANDON WILLIAMS, also known as “14K,” 35, of Bridgeport, with one count of sex trafficking of a minor and one count of sex trafficking by force, fraud or coercion.
The indictment was returned on May 17, 2016. WILLIAMS appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and entered a plea of not guilty to the charges.
As alleged in the indictment, between approximately July 10 and August 26, 2015, WILLIAMS forced a minor victim to engage in commercial sex acts.
WILLIAMS has been detained since his arrest on related state charges on August 26, 2015.
The charge of sex trafficking of a minor carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life, and the charge of sex trafficking by force, fraud or coercion carries a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of life.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation, with the assistance of the Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorneys Sarala V. Nagala and David E. Novick.
Boise Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
BOISE - Richard Martinez, Jr., 39, of Boise, Idaho, was sentenced today in United States District Court to 15 months in prison followed by 5 years of supervised release, for failing to register as a sex offender, U.S. Attorney Wendy J. Olson announced. Martinez pleaded guilty to the charges on March 7, 2016.
According to the plea agreement, Martinez was convicted in July 2011, of possession of child pornography by the Department of the Army. As a result of the conviction, Martinez was required to register and update his registration under the Sex Offender Registration and Notification Act (SORNA). Martinez was previously convicted of failing to register as a sex offender in Ada County, Idaho in 2015. After his release from custody in February 2015, Martinez registered as a sex offender with the State of Idaho, listing his residence as a hotel in Boise. Martinez confirmed this as his residence with the State of Idaho in April and June 2015. However, Martinez moved from the hotel in May 2015, and did not update his registration. Boise Police detectives arrested Martinez in Garden City, Idaho on July 8, 2015. Martinez subsequently admitted that he had moved approximately four to six weeks earlier and had not updated his registry as required.
The case was investigated by the United States Marshals Service (USMS), the Boise Police Department, and the Idaho Department of Correction, Bureau of Probation and Parole.
Richard Martinez, Jr. was prosecuted for a violation of the Sex Offender Registration and Notification Act (SORNA) passed by Congress in 2006. The Act requires sex offenders to register and keep their registration current in each jurisdiction where they reside. Violations of SORNA can be prosecuted in federal court.
Army Reserves Lt. Col. Indicted for Fraudulently Supplying Chinese-made Army Promotional Gear as Made in USARead the Press Release
BIRMINGHAM – A federal grand jury today indicted a lieutenant colonel in the U.S. Army Reserves for fraudulently supplying hundreds of thousands of Chinese-produced baseball caps and backpacks to the Army Recruiting Command on Defense Department contracts to supply “100 % U.S. MADE” products, announced U.S. Attorney Joyce White Vance, Defense Criminal Investigative Service Special Agent in Charge John F. Khin, and U.S. Army Criminal Investigation Command Special Agent in Charge James T. Wallis.
A three-count indictment filed in U.S. District Court charges that FREDERICK LAMAR BURNETT, 48, of Madison, through his Huntsville-based company, Lamar International Inc., schemed to defraud the Defense Department on three contracts, worth $6.2 million, between 2005 and 2009. All the contracts, two for baseball caps and one for backpacks, were for promotional items to be given to Army recruits. Burnett certified for all three contracts that he would meet the requirements of the Buy American Act, the Berry Amendment and federal regulations that require the government to buy domestic products and materials, according to the indictment.
The Buy American Act is a law requiring the federal government to buy domestic articles, materials and supplies, primarily to protect American labor. The Berry Amendment is a legal restriction on the Defense Department prohibiting it from spending its funds on clothing, fabrics, fibers and yarns that are not grown, reprocessed, reused or produced in the United States. The purpose of the Berry Amendment is to protect the viability of the textile and clothing production base in the United States.
Under the first contract awarded to Lamar International in 2005, Burnett supplied 209,706 baseball caps over three years and the government paid him $1.4 million, according to the indictment. Under the second contract, awarded in 2007, Lamar supplied 590,042 ball caps and the government paid him about $4 million. Under the third contract, also awarded in 2007, Lamar supplied 146,375 Army Combat Uniform backpacks and the government paid $1.1 million. A Defense Department accounting agency made the payments to Burnett by electronic funds transfer to his Huntsville bank.
Along with the required compliance to the BBA and the Berry Amendment, according to the indictment, both of the 2007 contracts included a statement, in all capital letters, that the “PRODUCT MUST BE 100% U.S. MADE.”
Instead of providing American-made products, however, Burnett negotiated and contracted with suppliers directly from China and with American companies who he knew were procuring the products from China. He used Chinese-made products to fill orders under all three contracts and hid their foreign manufacture by hiring workers on a cash basis to remove all the Chinese labels and repackage the items he sent to the Army Recruiting Command, the indictment says.
After award of the second contract, a competitor protested the bid, claiming Burnett could only bid so low if he were using foreign suppliers. The government allowed Burnett to proceed with the contract after he submitted documentation that he was using only American-made products and that he would comply with all aspects of the Buy American Act and the Berry Amendment, according to the indictment.
The total amount of the three contracts was $6.2 million. The indictment seeks to have Burnett forfeit that amount to the government as proceeds of illegal activity.
The maximum penalty for wire fraud is 20 years in prison and a $250,000 fine.
DCIS and Army CID investigated the case, which Assistant U.S. Attorney David H. Estes is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Armed Career Criminal from Albuquerque Pleads Guilty to Unlawful Possession of a FirearmRead the Press Release
ALBUQUERQUE – Kristian Thomas, 35, of Albuquerque, N.M., pleaded guilty this morning in federal court to unlawfully possessing a firearm. Thomas entered his guilty plea under an agreement that permits him to appeal from a court order denying his motion to suppress evidence. He will be permitted to withdraw his guilty plea if he prevails on his appeal.
Thomas, whose criminal record includes convictions for armed robbery, conspiracy to commit armed robbery and attempted residential burglary, is being prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, N.M., under this initiative.
Thomas was charged by criminal complaint on March 27, 2015, with being a felon in possession of a firearm. According to the complaint, on March 26, 2015, Albuquerque Police Department (APD) officers arrested Thomas at a pawnshop on Bridge SW in Albuquerque on an outstanding warrant. The officers found a revolver in Thomas’ pants pocket during a search incident to arrest. Thomas was subsequently indicted on April 28, 2015, and charged with being a felon in possession of a firearm.
During today’s proceedings, Thomas pled guilty to the indictment, and admitted that on March 26, 2015, he possessed a revolver, which he was not permitted to possess because of his status as a convicted felon.
Thomas remains in federal custody pending a sentencing hearing, which has yet to be scheduled. If deemed an armed career criminal, Thomas faces an enhanced sentence of a statutory mandatory minimum penalty of 15 years in prison.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and APD and is being prosecuted by Assistant U.S. Attorney Norman Cairns.
Andover Attorney Sentenced to Prison for $1.6 Million IRS ScamRead the Press Release
BOSTON –An Andover attorney was sentenced today in U.S. District Court in Boston in connection with his role in converting and laundering more than $1.6 million in fraudulently-obtained IRS refund checks through several different bank accounts, including several of his attorney trust accounts.
R. David Cohen, 64, was sentenced by U.S. District Court Judge Leo T. Sorokin to 54 months in prison and three years of supervised release during which time he is not permitted to practice law or act as a notary. The Court also ordered Cohen to pay over $1.6 million in restitution as well as forfeiture. In January 2016, Cohen was convicted by a federal jury in of one count of conspiracy to covert government funds, 14 counts of conversion and receipt of stolen United States property, and one count conspiracy to commit money laundering.
Cohen engaged in a scheme in which individuals filed fraudulent tax returns with fictitious W-2 information, usually a name and social security number of a resident of Puerto Rico, whose residents are not required to file federal income tax returns. Once the fraudulent returns were accepted by the IRS, refund checks were sent to designated addresses in Lawrence, East Boston, and New York controlled by Cohen’s co-conspirators.
Beginning in October 2011, Cohen and his co-conspirators deposited over 100 fraudulently-obtained tax refund checks totaling over $1 million into banks to launder them through Cohen’s “Interest On Lawyer’s Trust Accounts” (IOLTA), as well as through bank accounts in the name of AD Professional Association, Inc. When questioned by bank officials about the large amount of U.S. Treasury checks Cohen was depositing and negotiating through his IOLTA and personal accounts, Cohen falsely claimed that the payees were his clients. When one bank requested proof concerning one of the IRS refund checks, Cohen provided a fake participation agreement and affidavit purporting to state that he had the client’s authority to deposit her IRS refund check into his IOLTA account.
United States Attorney Carmen M. Ortiz and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys S. Theodore Merritt and Ryan M. DiSantis of Ortiz’s Public Corruption Unit.
Albuquerque Woman Arrested on Federal Fugitive Harboring ChargeRead the Press Release
ALBUQUERQUE – The U.S. Marshal Service (USMS) arrested Colleen Calamia, 37, of Albuquerque late this afternoon on a criminal complaint charging her with harboring and concealing a federal fugitive, announced U.S. Attorney Damon P. Martinez and U.S. Marshal Conrad E. Candelaria. Calamia will make her initial appearance in federal court tomorrow morning.
The criminal complaint alleges that Calamia harbored her husband, Mario Montoya, 31, after he absconded from a halfway house in Albuquerque on May 20, 2016. Court records reflect that Montoya, who was under indictment for being a felon in possession of a firearm and theft of mail, was released from federal custody on an order requiring him to reside in an Albuquerque-area halfway house and to comply with other conditions. The complaint alleges that Montoya violated the conditions of his release on May 20, 2016, by absconding from the halfway house and violating other release conditions. Montoya allegedly fled from the halfway house in a black sport utility vehicle.
On May 20, 2016, the court issued an emergency warrant authorizing Montoya’s arrest for violating his release conditions. According to the criminal complaint, on May 24, 2016, the USMS learned that Montoya was frequenting a residence located at 312 Western Skies (the residence) in Albuquerque. While conducting surveillance near the residence, USMS Deputies and Task Force officers allegedly observed Calamia driving a black Escalade that parked in front of the residence. They then allegedly observed Calamia and Montoya exit the vehicle and move objects from the vehicle and into the residence.
The complaint alleges that Calamia then left the residence in the black Escalade and USMS Deputies executed a traffic stop on her vehicle. When the Deputies questioned Calamia about Montoya’s whereabouts, she allegedly told them that Montoya was alone in the residence.
According to the complaint, when a USMS arrest team attempted to serve the arrest warrant on Montoya, he fired upon the deputies, initiating an exchange of gunfire. After the arrest team was able to retreat to a safe location, a second team later entered the residence. The second team found Montoya in a closet; he had been struck in the exchange of gunfire and was deceased.
If convicted, Calamia faces a statutory maximum penalty of five years in prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The USMS investigated this case, and Assistant U.S. Attorney Jacob A. Wishard is prosecuting it. Mr. Wishard was also prosecuting the case against Montoya, which was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Postal Inspection Service.
The shooting incident resulting in Montoya’s death is under investigation. As a matter of policy, Department of Justice agencies, including the U.S. Attorney’s Office and the U.S. Marshals Service, may not comment on ongoing investigations.
Alamogordo Man Pleads Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Justin Aaron Hudkins, 33, of Alamogordo, N.M., pleaded guilty today in federal court in Las Cruces, N.M., to methamphetamine trafficking crime charges.
Hudkins was one of 34 individuals charged in December 2015 with federal and tribal drug offenses as the result of an 18-month multi-agency investigation led by the DEA and BIA into methamphetamine trafficking on the Mescalero Apache Reservation. Eighteen defendants, including five members of the Mescalero Apache Tribe and 13 non-Natives were charged in six federal indictments and a federal criminal complaint. Sixteen other members of the Mescalero Apache Tribe were charged in tribal criminal complaints approved by the Mescalero Apache Tribal Court.
The investigation leading to the federal and tribal charges was initiated in May 2014, in response to an increase in violent crime on the Mescalero Apache Reservation perpetrated by methamphetamine users. The investigation initially targeted a drug trafficking organization that was allegedly distributing methamphetamine within the Reservation, and later expanded to include two other drug trafficking organizations in southeastern New Mexico that allegedly served as sources of supply for the methamphetamine distributed within the Reservation. In Aug. 2014, the investigation was designated as part of the Justice Department’s Organized Crime Drug Enforcement Task Force (OCDETF) program, which combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. The investigation is one of the first OCDETF investigations to utilize electronic surveillance (wiretaps) in Indian Country. More than ten kilograms of methamphetamine were seized during the course of the investigation.
Hudkins was arrested on an indictment charging him and seven co-conspirators with conspiracy to distribute methamphetamine in Otero County, N.M., between April 9, 2015 and Oct. 16, 2015, and other drug trafficking offenses. During today’s proceedings, Hudkins entered a guilty plea to participating in a methamphetamine trafficking conspiracy and using a communications device to facilitate a drug trafficking crime. In his plea agreement, Hudkins admitted that in Aug. and Sept. 2015, he obtained gram quantities of methamphetamine from a co-defendant, which he sold to other individuals.
At sentencing, Hudkins faces a maximum of 20 years in federal prison followed by not less than three years of supervised release. A sentencing hearing has yet to be scheduled.
Hudkins is the 12th of the 18 federal defendants to enter a guilty plea. The remaining six federal defendants have entered not guilty pleas to the charges against them. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The federal and tribal cases were investigated by the Las Cruces office of the DEA, District IV of the BIA’s Office of Justice Services (Mescalero Agency), BIA’s Division of Drug Enforcement, Mescalero Tribal Police Department, Hatch Police Department, FBI and Lea County Drug Task Force. Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the federal cases, and Mescalero Tribal Prosecutor Melissa Chavez is prosecuting the tribal cases.
Accused Gangster Disciple Now Charged with Distributing HeroinRead the Press Release
BIRMINGHAM – An Ensley man indicted in Atlanta last month as a high-ranking member of the violent Gangster Disciples Gang was indicted today by a federal grand jury in the Northern District of Alabama for distributing heroin, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
The Alabama grand jury returned a one-count indictment charging TERENCE “T-Man” SUMMERS, 42, with distributing 100 grams or more of heroin on Sept. 2 in Birmingham. Summers already is in custody on the Northern District of Georgia charge of conspiring to participate in a racketeering enterprise that included multiple murders, attempted murder and drug crimes.
In a separate and unrelated indictment, the grand jury also charged a Madison man, ROBERT EUGENE LEWIS, 46, with one count of possessing with intent to distribute more than 100 grams of heroin in Madison County in November 2013.
Lewis currently is in federal custody in Michigan on other drug charges.
“The prosecution of heroin and opiate traffickers is a key priority for our office,” Vance said. “With overdose death rates at an all-time high nationwide, we are committed to prosecuting criminals who bring heroin into this district and putting them in prison. Disrupting the supply of heroin in north Alabama by taking two suppliers off the streets, including one who is charged with working as a leader in a violent, drug-trafficking, nationwide criminal enterprise, is a significant step in making this community safer.”
Summers was indicted in Georgia as part of an FBI-led multi-agency investigation in Georgia and Tennessee that resulted in 48 people charged in two federal indictments as members of the Gangster Disciples Gang and involved in an illegal criminal enterprise. Summers is one of three Birmingham residents charged in the Georgia indictment. The other two are Shauntay Craig, 37, and Quiana Franklin, 33.
According to court documents in the Georgia and Tennessee cases, the Gangster Disciples is a national gang active in more than 24 states with a highly organized structure including board members and governor-of-governors who each controlled geographic regions, governors, assistant governors, chief enforcers and chiefs of security for each state or regions within the state where the Gangster Disciples were active, and coordinators and leaders within each local group. To enforce discipline among Gangster Disciples and adherence to strict rules and structure, members and associates were routinely fined, beaten and even murdered for failing to follow the gang’s rules.
Summers is listed in the Georgia racketeering conspiracy indictment as having held the positions of governor of Alabama and governor-of-governors for Georgia, Alabama, South Carolina and Florida for the Gangster Disciples Gang.
That indictment lists Craig as having held the rank of Gangster Disciples board member, and Franklin as treasurer for Alabama.
The prison penalty for the heroin distribution charges against both Summers and Lewis is five to 40 years. The maximum fine is $5 million.
The FBI investigated Summers’ Northern District of Alabama case, which Assistant U.S. Attorney Austin D. Shutt is prosecuting. The FBI and the Madison-Morgan County Strategic Counterdrug Team, or STAC, investigated Lewis’ case, which Assistant U.S. Attorney Mary Stuart Burrell is prosecuting.
Anyone with concerns about opiate use and addiction should visit www.knowdope.org, a website sponsored by the U.S. Attorney’s Office that focuses on awareness and prevention of opiate addiction. The website provides a documentary, public service videos, and links to more information and resources to help with drug abuse and treatment.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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5 Charged in National Counterfeit Perfume RingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Angel Melendez, Special Agent in Immigration and Customs Enforcement’s Homeland Security Investigation in New York (“HSI”), Robert E. Perez, Director of the U.S. Customs and Border Protection New York Field Office (“CBP”), and William J. Bratton, the Commissioner of the New York City Police Department (“NYPD”), announced that PATRICK BADAL, KAIUM SHAH, KENNY NI, ABUL KASHEM, and PARVEZ SHAZZED were arrested today for participating in a scheme to distribute counterfeit name brand perfumes in New York and around the United States. The defendants were presented this afternoon in Manhattan federal court before U.S. Magistrate Judge Gabriel W. Gorenstein.
According to the allegations in the Complaint unsealed today in Manhattan federal court[1]:
From December 2014 to May 2016, the defendants and others (collectively, the “Counterfeit Perfume Ring”) imported generic liquid fragrances from China, separately imported boxes and packaging bearing counterfeit trademarks from China, packaged the generic liquid fragrances into the branded and trademarked packaging, and then sold counterfeit perfumes to wholesalers in New York and at least six other states, including out of a store located in or around Lafayette Street in New York City.
Based on physical surveillance conducted by NYPD and HSI, the Counterfeit Perfume Ring used seven primary locations to receive, prepare, and distribute its products:
The Port. Inbound shipping containers arrived at the Port of Newark and were transported to a bonded warehouse in Elizabeth, New Jersey, (the “Port”) regulated by CBP.
The Temporary Warehouse. Once shipping containers had been released by CBP, members of the Counterfeit Perfume Ring arranged for the containers to be moved from the Port to a temporary warehouse located in Elizabeth, New Jersey (the “Temporary Warehouse”). The Temporary Warehouse was operated by a trucking company (the “Trucking Company”).
Packaging Facilities. From the Temporary Warehouse, the Trucking Company typically delivered the containers to premises in Queens, New York, for packaging (the “Packaging Facilities”).
The Storage Facility. The Counterfeit Perfume Ring then transferred the goods from the Packaging Facilities to a self-storage facility located in Queens, New York (the “Storage Facility”).
The Freight Forwarder. The Counterfeit Perfume Ring distributed certain of its goods to wholesalers located outside the New York City area. To accomplish this, the Counterfeit Perfume Ring used a freight forwarding service (the “Freight Forwarder”) to pick up pallets of goods from the Storage Facility. The Freight Forwarder, in turn, delivered parcels to out-of-state addresses. In addition to distributing its products out-of-state, the Counterfeit Perfume Ring distributed its products throughout New York City. SHAZZED operated one of these locations, a store located in or around Lafayette Street in New York City.
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BADAL, SHAH, NI, KASHEM, and SHAZZED are each charged with one count of conspiracy to traffic in counterfeit goods and one count of trafficking in counterfeit goods, each of which carries a maximum penalty of 10 years in prison. BADAL, SHAH, NI, and KASHEM are also each charged with one count of trafficking in counterfeit packaging, which carries a maximum penalty of five years in prison. BADAL and SHAH are also charged with smuggling goods into the United States, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding work of HSI, CBP, and NYPD for their investigative efforts and ongoing support and assistance with the case.
The prosecution of this case is being overseen by the Office’s General Crimes Unit. Assistant U.S. Attorneys Andrew M. Thomas and Michael C. McGinnis are in charge of the case.
The charges contained in the Complaint 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 Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Tuesday 24 May 2016
Williamsburg Man Sentenced on Employment Tax Fraud ChargeRead the Press Release
ROANOKE, VIRGINIA – A Williamsburg man, who was convicted in October 2015 of conspiring to defraud the United States of more than $3 million of employment taxes, was sentenced last week in the United States District court for the Western District of Virginia in Roanoke, United States Attorney John P. Fishwick Jr. announced.
Vladimir Maglnik, 52, of Williamsburg, Virginia, was found guilty in October 2015 of one count of conspiring to defraud the United States and conspiracy to harbor illegal aliens for commercial advantage or private financial gain. Last Week in District Court, Maglnik was sentenced to 20 months in federal prison and ordered to pay a fine of $7,500.
“This defendant used the hard work of migrant workers to line his own pockets with millions of dollars in ill-gotten riches,” United States Attorney John P. Fishwick Jr. said today. “Many of his victims were forced to live in squalor and pay rent, afraid to contact law enforcement, while Maglnik defraud the United States government. We are glad his strong of deceit has been exposed and justice has been served.”
According to evidence presented at previous hearings by Assistant United States Attorney C. Patrick Hogeboom, from at least 2002 continuing through 2007, Maglnik and Makera Galustyants owned North American Management (NAM), a company that contracted labor service contracts with hotels, primarily in Florida, Virginia and Louisiana. NAM agreed to provide temporary employees to perform housekeeping services, would be responsible for hiring and paying all temporary workers as well as complying with all federal regulations, including the deduction and payment of employment taxes from the temporary workers’ wages. The hotels were also assured that the temporary workers held legitimate work permits and were eligible to work in the United States.
However, according to evidence presented in court, NAM routinely violated the terms of the contract and failed to pay employment taxes to the United States Treasury on any of the temporary works employed by NAM. All told, the conspirators pocketed $3,082,097 in unpaid employment taxes.
The investigation of the case was conducted by U.S. Immigration and Custom Enforcement’s Homeland Security Investigations, the Internal Revenue Service, Criminal Investigations, the Department of Labor and the Federal Bureau of Investigation. Assistant United States Attorney C. Patrick Hogeboom III prosecuted the case for the United States.
U.S. Fish and Wildlife Service Scuba Diver Sentenced for Abusive Sexual Contact of a SubordinateRead the Press Release
MISSOULA – Lawrence L. Lockard, 67, of Bigfork, was sentenced Friday to 6 months in prison for abusive sexual contact. Chief U.S. District Court Judge Dana Christensen issued the sentence and ordered Lockard to pay $21,872.49 in restitution to the victim. Lockard will also be subject to five years’ supervised release.
Special Assistant U.S. Attorney Adam Duerk stated in court documents that if called upon to prove its case at trial, the United States would have been prepared to show that Lockard had sexually assaulted a co-worker while on a work related field trip. On September 8, 2015, Lockard and two colleagues began a work related SCUBA diving trip at Quartz Lake, in the northwest portion of Glacier National Park. Lockard and a female co-worker slept in a cabin, while the third co-worker slept outside in a tent to avoid disturbing the others with his sleep apnea.
On the second night of the trip, the female co-worker woke to find Lockard in the bed with her, touching her inappropriately and attempting to remove her clothing. The victim immediately got out of bed, and Lockard returned to his bed. The victim informed him the following day that he never had permission to touch her. Lockard admitted he was aware that the victim was wearing earplugs and had taken sleeping medication. He stated on being interviewed by an NPS special agent that he knew what he did was wrong and knew the victim was asleep during his attempted assault.
Lockard was both the victim’s supervisor and 17 years her senior. The sentence was enhanced because Lockard knew at the time that the victim had been drinking, had taken prescription sleep medication, and was asleep wearing earplugs when he initiated contact. The victim testified that she still suffers from fear, anxiety, and sleeplessness as a result of Lockard’s conduct. Judge Christensen ruled that despite the Defendant’s lack of any criminal history, admirable employment record, and good standing in the community, any type of unsolicited sexual contact is absolutely intolerable.
This case was investigated by National Park Service Special Agent Justin Ivary and prosecuted by Special Assistant U.S. Attorney Adam Duerk.
U.S. Customs and Border Protection Officers Arrest India National Using a False Document to Enter the United StatesRead the Press Release
St. Thomas, USVI – Chintamkumar Patel, 23, made his initial appearance on Friday, May 20, 2016, before U.S. Magistrate Judge Ruth Miller after being charged in a complaint with using a false document to defraud the United States, United States Attorney Ronald W. Sharpe announced. Patel was released pending further proceedings after a detention and preliminary hearings on Monday.
According to the complaint, on May 19, 2016, Patel appeared at the U.S. Customs and Border Protection (CBP) primary inspection checkpoint at the Cyril E. King Airport, St. Thomas, Virgin Islands, and presented a false New York driver’s license. Patel was a ticketed passenger on an American Airlines flight to the mainland United States.
Under federal law, if convicted of using a false document to defraud the United States, Patel faces a maximum of one year in prison and a $100,000 fine. This case is being investigated by CBP and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Everard Potter.
United States Attorney Sharpe reminds the public that a complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Two Saratoga Doctors Indicted for Health Care Fraud and Money LaunderingRead the Press Release
SAN JOSE - A federal grand jury indicted Dr. Vilasini M. Ganesh and Dr. Gregory Belcher last week with conspiracy to commit health care fraud, health care fraud, conspiracy to commit money laundering, and money laundering, announced Acting United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. Dr. Ganesh is a family practitioner and Dr. Belcher is an orthopedic surgeon.
According to the indictment, between 2009 and continuing through at least September 2014, Ganesh, 46, of Saratoga, Calif., together with her partner, Belcher, 54, also of Saratoga, engaged in a scheme to defraud insurance companies administering health care benefit programs (“HCBPs”). As alleged in the indictment, Ganesh and Belcher used their Saratoga medical practice, Campbell Medical Group (“CMG”), to unlawfully enrich themselves. Ganesh and Belcher are alleged to have submitted false and fraudulent claims to the HCBPs, concealed the submission of false and fraudulent claims to the HCBPs, and diverted proceeds of the fraud for their personal use. In addition, Ganesh allegedly submitted and caused to be submitted to HCBPs claims for services that she knew were not properly payable because she included (1) false codes that artificially inflated both the seriousness of the patient’s condition as well as the time that the physician spent examining the patient; (2) false diagnoses in the claims that did not correspond with the true health and presentation of the patient; (3) claims for days when the patient had not been seen by the provider; and (4) representations that the patients were seen by another physician provider (not herself) no longer affiliated with Dr. Ganesh and her practice at CMG.
The indictment further alleges that Ganesh compounded these illegal acts by misrepresenting, concealing, and hiding or directing her subordinates to misrepresent, conceal, or hide, acts done in furtherance of the scheme. Specifically, when approached by representatives of the HCBPs, or the patients themselves, to provide documentation or additional information to substantiate the claims that were being submitted at her direction and on her behalf, Ganesh either directed her office staff to have no further discussions with anyone about the claims or to simply resubmit the false information, all to avoid disclosing the truth of the underlying the scheme. Furthermore, the indictment alleges Ganesh, together with the assistance and knowledge of Belcher, submitted hundreds of claims for reimbursement from the HCBPs for: (i) days that were weekends when the CMG office located in Saratoga was closed; (ii) days on which the patient denied they were seen; and/or (iii) days when the patient could not have been seen by Ganesh or her staff because either the patient or the doctor was not physically present in California. The defendants allegedly also used billing codes that indicated Ganesh and/or Belcher had spent more than 24 hours in a single day seeing patients. The defendants also maintained multiple bank accounts through which they are alleged to have attempted to conceal the nature and source of the illegally obtained funds which resulted from their scheme to defraud.
Defendants were charged with one count of health care fraud conspiracy, in violation of 18 U.S.C. § 1349; one count of conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(b); and six counts of money laundering, in violation of 18 U.S.C. §§ 1956(a)(l)(B)(i) and 2. In addition, defendant Ganesh was charged with five counts of health care fraud, in violation of 18 U.S.C. §§ 1347 and 2, and five counts of false statements relating to health care matters, in violation of 18 U.S.C. § 1035. Both defendants were arrested this morning in Saratoga and made their initial appearance in federal court in San Jose this afternoon in front of U.S. Magistrate Judge Nathanael M. Cousins. Both defendants were released on bond, pending further hearings. Bail was set at $250,000 per defendant. The defendants’ next scheduled appearance is at 1:30 on Friday, May 27, 2016, for identification of counsel and further bond proceedings before the Honorable Nathanael M. Cousins, U.S. Magistrate Judge.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face a maximum sentence of 10 years imprisonment and a fine of $250,000, plus restitution for each violation of 18 U.S.C. §§ 1349 and 1347; and 20 years imprisonment and fine of $500,000 or twice the value of the laundered funds, whichever is greater, plus restitution, for each violation of 18 U.S.C. §§ 1956(h) and 1956(a)(1)(B). However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Amie D. Rooney is prosecuting the case with the assistance of Elise Etter. The prosecution is the result of an investigation by the FBI.
Two Mass. Men Detained in R.I. on Sex Trafficking ChargesRead the Press Release
PROVIDENCE, R.I. - Kedwin Vargas, 25, and Rene A. Laureano, 30, of Roxbury, Mass., have been ordered detained in federal custody on federal criminal complaints charging them with conspiracy to transport a minor interstate for prostitution and transporting a minor interstate for prostitution.
According to court documents, it is alleged that information about the trafficking of a minor female from Boston to Rhode Island for the purpose of prostitution by Vargas and Laureano came to the attention of law enforcement after an East Greenwich resident contacted Rhode Island State Police alleging that he was being extorted by a Massachusetts resident in exchange for not providing information to his wife about sexual encounters with the minor female in exchange for payment.
Vargas was arrested on May 19, 2016, and ordered detained by Magistrate Judge Lincoln D. Almond. Laureano was arrested on Monday and was ordered detained by Magistrate Judge Lincoln D. Almond.
The arrest and detention of Vargas and Laureano is announced by United States Attorney Peter F. Neronha, Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police, and Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI.
According to court documents and information presented to the court, in March 2016, an East Greenwich resident contacted Rhode Island State Police and alleged that Vargas was attempting to extort him by threatening to provide a video and audio recording to his family which contained information regarding sexual encounters he had with a minor female in exchange for payment. An investigation by Rhode Island State Police and the FBI revealed numerous text messages and cell phone conversations between Vargas and others with the East Greenwich resident, in which it is alleged that Vargas is identified as the person allegedly attempting to extort cash from the East Greenwich resident.
According to court documents, it is alleged that the investigation revealed that more than a year ago, Vargas began posting ads on backpage.com offering the minor female for prostitution. It is alleged that in many instances, Laureano would drive the female to meet with customers, including the East Greenwich resident. It is alleged in court documents that the East Greenwich resident admitted to investigators that he had met with and had sexual contact with the female on numerous occasions in several different locations in Rhode Island in exchange for cash.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.
The Warwick, R.I., and Boston Police Departments assisted in the investigation of this matter.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Two KC Men Indicted for Murder, Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Kansas City, Mo., men were indicted by a federal grand jury today for committing a murder as part of a drug-trafficking conspiracy.
James P. Roberts, 24, and Marcell Shavers, 25, both of Kansas City, were charged in a two-count superseding indictment returned by a federal grand jury in Kansas City, Mo. Today’s superseding indictment replaces an indictment returned on March 29, 2016.
Today’s indictment alleges that Roberts and Shavers conspired with each other to possess methamphetamine with the intent to distribute on Jan. 1, 2014. The indictment also alleges that Shavers, aided and abetted by Roberts, used a firearm to murder Jose Medellin in perpetration of the drug-trafficking conspiracy on that day.
The original indictment charged Roberts and Shavers with using a firearm during a drug-trafficking offense, which carries a penalty of five years to life in prison upon conviction. Today’s superseding indictment replaces that charge with one count of using a firearm during a drug-trafficking offense to commit murder, which carries a penalty of life in prison or death upon conviction.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Jeffrey Valenti and Joseph Marquez. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Two Former Maverick County Officials Sentenced on Federal Bribery ChargesRead the Press Release
In Del Rio today, former Maverick County Precinct 3 Commissioner and Eagle Pass ISD teacher Jose Luis Rosales and former Maverick County Justice of the Peace and businessman Cesar Iracheta were sentenced for their roles in a bribery, kickback and bid-rigging scheme announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Appearing before United States District Judge Alia Moses, Rosales was sentenced to 66 months imprisonment and 300 hours of community service. Rosales also was ordered to pay $14,185.72 in restitution. Iracheta was sentenced to 94 months imprisonment and ordered to pay $81,607.80 in restitution. On December 8, 2015, Rosales pleaded guilty to one count of receiving a bribe; Iracheta pleaded guilty to one count of paying a bribe to an agent of an organization receiving federal funds.
According to court records, Rosales admitted that during 2012, he manipulated the bidding process to guarantee that individuals he chose would be awarded Maverick County construction contracts. In the scheme, those contractors deposited the checks issued to them by Maverick County and then made cash payments to Rosales. According to court records, the private contractors submitted inflated bids to Maverick County to cover the bribe to Rosales.
Court records show Iracheta, doing business as C&A Construction in Maverick County, admitted that in 2010, he paid a total of between $8,000 and $10,000 to a Maverick County Commissioner in order to secure two Precinct 2 county construction contracts worth approximately $49,000. According to court records, Iracheta submitted inflated bids to Maverick County to cover the bribes to the county commissioner.
“The sentencing of these two defendants illustrates San Antonio FBI’s firm commitment to work with our law enforcement partners to address public corruption and hold corrupt officials in Maverick County accountable,” stated FBI Special Agent in Charge Christopher Combs. “The FBI encourages the public to continue to support our active and ongoing efforts to root out graft in South Texas by reporting corrupt activity to the FBI’s Public Corruption Hotline, 1-800-CALL-FBI.”
Rosales and Iracheta remain on bond. Rosales must self-surrender no earlier than September 12, 2016. Iracheta must self-surrender no earlier than August 24, 2016.
This investigation was conducted by the FBI and the Texas Department of Public Safety Criminal Investigative Division together with the Customs and Border Protection Office of Internal Affairs and the Eagle Pass Independent School District Police Department
Assistant United States Attorney Katherine Griffin prosecuted this case on behalf of the Government.
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Troy Man to Serve 15 Years in Prison for Attempted Sex Trafficking of A ChildRead the Press Release
Shane L. Schlaefer, 28, of Troy, Illinois was sentenced in the U.S. District Court to 15 years in prison for Attempted Commercial Sex Trafficking of a Child and Attempted Enticement of a Minor, Acting United States Attorney James L. Porter has announced. Schlaefer was also ordered to pay a $500 fine and a $200 special assessment. When he is released from prison, Schlaefer will be on federal supervised release for an additional 15 years. He has been in custody since he was arrested on these charges on April 6, 2015.
Documents filed in the U.S. District Court establish that in November of 2014, during an authorized undercover Internet investigation, a Special Investigator with the Ohio Internet Crimes Against Children Task Force (ICAC) received numerous messages from Schlaefer in which he stated that he wanted to engage in sexual acts with a child. From November 14, 2014 to April 6, 2015, Schlaefer sent continuous messages requesting that the undercover investigator, posing as the mother of a 13-year-old girl, travel from Ohio to Illinois to allow Schlaefer to engage in sexual acts with the minor. Schlaefer offered to pay her $500. He also sent text messages directly to who he believed was the 13-year-old girl describing the sexual acts he wanted to perform. On April 6, 2015, the undercover investigator, communicating in an undercover capacity, agreed to travel to Troy, Illinois with her 13-year-old daughter to allow Schlaefer to engage sexual acts with the child.
On the night of April 6, 2015, Schlaefer arrived at a predetermined location in Collinsville, Illinois, exited his vehicle and was arrested by federal agents before entering the building. Schlaefer had $500 in United States currency in a sealed envelope within his pants pocket. During an interview with law enforcement, Schlaefer admitted that he had been communicating on the Internet with a woman who he thought was the mother of a 13-year-old girl living in Ohio and that he had offered to pay the woman $500 to drive to Illinois with her daughter to allow him to engage in sexual acts with the child. Schlaefer admitted that when he arrived at the pre-determined location, it was his intent to get a room at a nearby hotel where he would then engage in sexual intercourse with the child.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 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."
The investigation was conducted by investigators for the Ohio Internet Crimes Against Children Task Force, the United States Secret Service Southern Illinois Cyber-Crime Unit, and the Illinois State Police. The case was assigned to Assistant United States Attorney Ali Summers for prosecution.
Tobacco Distributors Plead Guilty to Multi-Million Dollar Tax Evasion SchemeRead the Press Release
BOSTON – Two men pleaded guilty today in U.S. District Court in Boston to evading federal income taxes and defrauding the Commonwealth of Massachusetts of millions of dollars in connection with the sale of cigarettes and other tobacco products.
Raza Ali, 56, of Hopkinton, and Kaleem Ahmad, 47, of Sharon, both pleaded guilty to one count of conspiring to commit wire fraud and launder money and one count of making a false statement on a federal income tax return. Ali and Ahmad were arrested and charged in a criminal complaint in December 2015. A third co-conspirator, Muhammad Saleem Iqbal, 54, of Sharon, also pleaded guilty for his role in the same conspiracy in May 2016. Ali is scheduled to be sentenced on Sept.14; Ahmad on Sept. 9; and Iqbal on Sept. 7, 2016.
Ali, Iqbal and Ahmad operated a wholesale business in Norwood, Mass. that sold tobacco products, including cigars, smoking tobacco and smokeless tobacco (such as snuff and chewing tobacco), to convenience stores, gas stations and other retail businesses. The business was conducted in Massachusetts under the names “Pick N Dip” and, later, “MSI Distributors.”
Wholesale businesses that distribute smoking tobacco, smokeless tobacco and cigars in the Commonwealth of Massachusetts must be licensed by the Massachusetts Department of Revenue. Wholesalers of smokeless tobacco must file an excise tax form monthly and pay excise tax on smokeless tobacco brought into and sold in Massachusetts. Cigar and smoking tobacco wholesalers must file an excise tax form quarterly and pay excise tax on cigars and smoking tobacco brought into and sold in Massachusetts.
To supply their business, Ali and Iqbal repeatedly purchased tens, and sometimes hundreds of thousands, of dollars at a time of smoking tobacco, smokeless tobacco and cigars in Pennsylvania, where no taxes are imposed on these products. Ali then arranged to have the products covertly transported to Massachusetts for resale. Ali and Iqbal did not file reports and records required by state and federal law, and did not pay excise taxes.
Ali, Iqbal and Ahmad accepted payments primarily in cash. They made and directed multiple bank deposits of cash from the business in amounts less than $10,000 to create the false appearance that the total amount being deposited fell below the amount they knew the banks were required to report to the U.S. Treasury Department. Ahmad and others repeatedly transported cash in excess of $50,000 at a time generated by the sale of untaxed cigars, smoking tobacco and smokeless tobacco products in Massachusetts to Pennsylvania, where the money was used to purchase additional untaxed tobacco products.
The charge of conspiracy provides for a sentence of no greater than five years in prison, three years of supervised release, restitution to the Commonwealth, and a fine of twice the tax loss to the Commonwealth. The charge of subscribing to a false income tax return provides for a sentence of no greater than three years in prison, one year of supervised release, restitution to the federal government and a fine of $100,000. Actual sentences for federal crimes are typically less than maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and David W. Hall, Special Agent in Charge of the Department of State, Diplomatic Security Service, Boston Field Office, made the announcement today. The Norwood Police Department provided valuable assistance in the investigation. The case is being prosecuted by Assistant U.S. Attorney Stephen P. Heymann of Ortiz’s Economic Crimes Unit.