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5 July 2016
Troy Man Sentenced for Health Care FraudRead the Press Release
ALBANY, NEW YORK – John VonFricken, age 51, of Troy, New York, was sentenced today to 3 years of probation and 3 months of weekend incarceration at the Rensselaer County Jail for defrauding a union health plan of $54,000, announced United States Attorney Richard S. Hartunian.
The sentence was issued by U.S. District Judge Mae A. D’Agostino and followed the defendant’s guilty plea, on February 3, 2016, to obtaining false receipts for orthodontic services and submitting them to his union’s health care plan.
As part of his sentence, John VonFricken must also complete 50 hours of community service and pay back the $54,600 that he fraudulently obtained from the Health and Welfare Plan of the Plumbers and Steamfitters, Local Union Number 7.
John VonFricken’s brother, Michael, also of Troy, is scheduled to be sentenced on July 18 for defrauding the same union health plan. He also pled guilty in February to fraud, and to obtaining $32,732 in reimbursements for orthodontic work that he did not receive.
This case was investigated by the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and the Federal Bureau of Investigation, and was prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.
Toledo man faces charge related to firearms recordsRead the Press Release
An information was filed charging Dimitar Trampevski, 28, of Toledo, with making a false entry or failure to make an entry in records by a federal firearms dealer, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The case is being handled by Assistant U.S. Attorney Tracey Ballard Tangeman following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives in Toledo.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Stockton Woman Pleads Guilty in Phony Tax Return SchemeRead the Press Release
FRESNO, Calif. — Vivian Marie Williams, 51, of Stockton, pleaded guilty today to a conspiracy to submit false claims for income tax refunds and to identity theft, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, Williams was a tax preparer who operated out of her home in Stockton, using the business name Williams Financial Service. Between January 2010 and March 2011, Williams submitted tax returns for both legitimate clients and in the names of victims of identity theft. The tax returns for legitimate clients reported inflated business and wage income, which allowed the taxpayers to claim a higher tax refund as a result of the Earned Income Tax Credit and the Child Tax Credit. The tax returns for victims of identity theft were submitted without the knowledge of the taxpayers, and allowed Williams to collect tax refunds on their behalf. During the scheme, Williams admitted she submitted at least $61,531 in false claims to the IRS.
Co-defendant Darrell Lemont Morris, 45, of Stockton, allegedly conspired with Williams and allowed her to use his bank accounts for the deposit of tax refunds of victims of identity theft, and then shared in the proceeds with Williams. The case against Morris is still pending. He is scheduled for a status conference on July 25, 2016, at 1:00 PM before U.S. Magistrate Judge Barbara A. McAuliffe. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Mark J. McKeon is prosecuting the case.
Williams is scheduled to be sentenced by United States District Judge Dale A. Drozd on October 17, 2016. Williams faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for the conspiracy; and 15 years in prison and a $250,000 fine for identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Sentence and Guilty Plea in Marijuana Cultivation Conspiracy in Sierra National ForestRead the Press Release
FRESNO, Calif. — One defendant was sentenced and one pleaded guilty today to conspiring to cultivate marijuana in the Sierra National Forest in Madera County with the intent to distribute, Acting United States Attorney Phillip A. Talbert announced.
Francisco Javier Gomez-Rodriguez, 38, of Pihuamo, Jalisco, Mexico, was sentenced today by United States District Judge Lawrence J. O'Neill to three years and five months in prison and ordered to pay $8,750 in restitution to the U.S. Forest Service.
Alejandro Ramirez-Rojo, 31, of Mexico, pleaded guilty to conspiring to grow marijuana with the intent to distribute. Sentencing is scheduled for September 26, 2016.
According to court documents, between March 1, 2015, and August 4, 2015, in the Saginaw Creek area of the Sierra National Forest, co-defendant Humberto Ceballos-Rangel, 37, of Mexico, was found at a campsite within the marijuana cultivation site where agents found 5,904 marijuana plants and a loaded firearm. Gomez-Rodriguez and two other co-defendants, Ramirez‑Rojo and Anthony Isaac Santibanez, 20, of Woodlake, California, were found a short time later approaching the grow site in a vehicle used for delivering supplies to the grow site. A .22-caliber rifle was found in the vehicle, along with .40-caliber rounds of ammunition. Judge O’Neill also ordered the forfeiture of the two firearms and ammunition.
The cultivation operation caused significant environmental damage. Native vegetation was cut to accommodate the marijuana plants, foot trails, and cooking and sleeping areas. Water was diverted from a nearby creek to irrigate the marijuana plants. A large quantity of trash was also found in trash pits and throughout the site.
Ceballos-Rangel pleaded guilty and was sentenced in April to three years in prison. Santibanez also pleaded guilty and is scheduled for sentencing August 15, 2016. The maximum statutory sentence for conspiracy to manufacture marijuana and to possess with the intent to distribute is 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California Department of Justice’s Campaign Against Marijuana Planting (CAMP), the California Department of Fish and Wildlife, and Madera County Narcotic Enforcement Team (MADNET). Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Santa Rosa Man Sentenced for Tax Evasion and Conspiracy to Defraud the United StatesRead the Press Release
SAN FRANCISCO – Today, Jay Scott Soderling was sentenced to 36 months in prison and ordered to pay $345,697 in restitution, announced United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf.
After a five-day trial in December of 2015, Soderling and his wife, Jessica Lynn Soderling, were convicted by a federal jury of conspiracy to defraud the United States. Jay Soderling was also convicted on one count of tax evasion. The evidence at trial showed that the Santa Rosa couple were involved in efforts to conceal assets from the IRS to avoid payment of Jay Soderling’s tax liabilities. During 2004 and 2005, Jay Soderling evaded payment of his taxes by hiding money and assets in the name of a corporation. In 2008 and 2009, after the IRS discovered Jay Soderling was keeping his personal assets in the name of the corporation, the couple worked together to further conceal assets by, among other things, moving money into a bank account opened for this purpose in Jessica Soderling’s name. Jay Soderling was indicted on August 9, 2011, for a single count of tax evasion, in violation of 26 U.S.C. § 7201. A superseding indictment was later filed adding the 18 U.S.C. § 371 conspiracy charge against the couple.
In finding Jay Soderling guilty of conspiracy, the jury concluded he agreed to obstruct the lawful functions of the IRS by deceitful or dishonest means. In addition, the evidence demonstrated Jay Soderling willfully evaded payment of taxes he owed to the United States. According to papers filed with the court, beginning in July 2004, the IRS began attempting to collect Jay Soderling’s tax liabilities. Jay Soderling admitted owing the IRS approximately $90,000, but he made written and oral statements to IRS employees misrepresenting his ability to pay the debt. Among other things, Jay Soderling told the IRS he had no significant assets, he had negligible income, and he did not expect his financial situation to change. In reality, Jay Soderling knew that he was about to receive an enormous financial windfall from several real-estate transactions. The government also demonstrated Jay Soderling failed to disclose his use of corporate funds to purchase a Dodge Viper, a new boat, and other personal items.
The sentence was handed down by the Honorable Vince Chhabria, U.S. District Judge. In addition to the prison term, Judge Chhabria also sentenced Jay Soderling to three-year periods of supervised release. Jessica Soderling was sentenced to a three-year term of probation, and ordered to pay $153,242 in restitution, in April 2016.
Assistant United States Attorneys Michael G. Pitman and Jose A. Olivera are prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
San Angelo Man Sentenced to 293 Months in Federal Prison for Accessing with Intent to View and Transporting Child PornographyRead the Press Release
LUBBOCK, Texas — Nicholas Daniel Glass, 34, of San Angelo, Texas, was sentenced on Friday by Senior U.S. District Sam R. Cummings to 293 months in federal prison, following his guilty plea in March 2016 to an information charging him with one count of accessing with intent to view child pornography, and one count of transportation of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas. Glass had been in federal custody since February 2016.
According to documents filed in his case, Glass used his cellular telephone and a laptop computer to possess and access images of one or more minors engaged in sexually explicit conduct. In or about July 2015 Glass sent images to persons on the Internet depicting a minor engaged in sexually explicit conduct. He also requested and received an image of child pornography from another Internet user in the course of his communications.
This year marks the 10th anniversary of the Project Safe Childhood (PSC) initiative. PSC is a department initiative launched in May 2006 to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Since FY 2011, the Department of Justice has filed 20,260 PSC cases against 19,111 defendants. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the San Angelo Police Department, and the Tom Green County District Attorney’s Office investigated the case. Assistant U.S. Attorney Myria Boehm was in charge of the prosecution.
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Salem Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
ROANOKE, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today the sentencing of a Salem, Virginia man who was previously convicted of failing to registering as convicted sex offender.
Anthony Dean Iafornaro, 58, of Salem, Virginia, pled guilty today in March to one count of failing to register as a previously convicted sex offender. Today in the United States District Court for the Western District of Virginia in Roanoke, Iafornaro was sentenced to 24 months in federal prison and five years of supervised release thereafter.
“The Sex Offender Registration and Notification Act is a tool used by law enforcement and the community to keep track of those individuals who have previously broken the law,” United States Attorney John P. Fishwick Jr. said today. “When these individual, like Mr. Iafornaro, break the law again by failing to register, as they are required to, under SORNA, they must be held accountable.”
According to evidence presented at previous hearings by Assistant United States Attorney Charlene R. Day, Iafornaro was convicted of attempting to kidnap a minor in the State of Montana in February 2005. Upon his release, he relocated to the Commonwealth of Virginia and was required, by the Sex Offender Registration and Notification Act, to register as a previously convicted sex offender. While Iafornaro did register under SORNA when first arriving in Virginia, he failed to keep his registration up-to-date after acknowledging his requirements to do so.
The investigation of the case was conducted by the U.S. Marshals Service and the Virginia State Police. Assistant United States Attorney Charlene R. Day prosecuted the case for the United States.
Real Estate Agent Pleads Guilty in Mortgage Fraud SchemeRead the Press Release
Baltimore, Maryland – Real estate agent Christopher A. Kwegan, age 59, of Randallstown, Maryland pleaded guilty today to charges arising from the fraudulent purchase of a Baltimore City property using fraudulent loan documentation and a straw purchaser.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Cary A. Rubenstein of the U.S. Department of Housing and Urban Development Office of Inspector General; and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
According to his guilty plea, in the summer of 2008, Kwegan learned that Mr. K.D. was trying to sell a row house he owned in Baltimore City on Washington Boulevard. Mr. K.D. had purchased the property 10 years earlier for $11,500. Kwegan told Mr. K.D. that he could sell it for $75,000. Mr. K.D. was dubious, but agreed to sell it for that price.
Rather than trying to sell the property at the actual market price, Kwegan requested assistence from accountant Cecil Chester and real estate agent/consultant Michael Camphor, who were already operating a mortgage fraud scheme. Kwegan arranged to use the personal identifiers of an individual recruited by Chester – Ms. D.B. – to buy the property as a straw purchaser. A “straw purchaser” is an individual whose name and personal identifiers are used by fraudsters to acquire the property, but who does not contribute his or her own funds to the purchase and who has no intention of actually residing in the property.
Ms. D.B., who lived in Queens, New York, was inexperienced with residential real estate transactions and with the Baltimore real estate market. To encourage Ms. D.B. to buy the property, Chester promised her that she would need to put up little if any money to cover the down payment and closing costs on this property. Ms. D.B. lacked the necessary assets to pay for the down payments and closing costs on the property out of her own resources, or the income to keep up the mortgage payments on the house after the transaction closed, as Kwegan and Chester knew.
Kwegan and Chester set the price not at $75,000, but at $250,000. Chester provided a mortgage loan broker located in Towson with a false loan application and fraudulent supporting documents which inaccurately represented that Ms. D.B. worked for a fictitious company that Chester had created, and which falsely inflated her annual income. Chester also falsely represented that Ms. D.B. lived in Baltimore City, and the amount of assets she had in a bank account.
Based upon these false representations, a bank wired $242,500 to finance the purchase of the property, at the settlement on September 30, 2008. As the purchaser, Ms. D.B. was required to provide $9,391.53 to cover the down payment and her share of the closing costs. Because she lacked the necessary funds, Kwegan used his own funds to obtain a cashier’s check for that amount, which was tendered to the settlement company on her behalf.
After the settlement, just $15,773.65 was disbursed to Mr. K.D., the seller of the property. In contrast, $145,000 was wired to an entity identified as “CAK,” which were Kwegan’s initials. These funds were transferred into Kwegan’s bank account. Kwegan then wrote a check to Chester for $35,000.
No payments were made on the mortgage. The property went into foreclosure and remains unsold at this time, resulting in a loss of between $150,000 and $235,000.
Kwegan faces a maximum sentence of 30 years in prison and a $250,000 fine for conspiring to commit wire and mail fraud, and for wire fraud. U.S. District Judge James K. Bredar has scheduled sentencing for November 4, 2016 at 10:00 a.m.
Cecil Sylvester Chester, age 69, of Mitchellville, Maryland previously pleaded guilty to the same charges arising from the fraudulent purchase of seven properties in Baltimore, resulting in losses of over $1.7 million. Michael Gerard Camphor, age 60, of Baltimore, previously pleaded guilty to charges arising from the fraudulent purchase of four properties in Baltimore resulting in losses of over $736,000. Judge Bredar scheduled Camphor and Chester’s sentencings for August 26 and October 4, 2016, respectively.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available at http://www.justice.gov/usao-md/financial-fraud-and-identity-theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI , HUD OIG - Office of Investigations and the U.S. Secret Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Jefferson M. Gray and Evan T. Shea, who are prosecuting the case.
Raleigh men sentenced for conspiracy to provide material support to terroristRead the Press Release
NEW BERN – The United States Attorney’s Office announced that today in federal court, United States District Judge Louise W. Flanagan sentenced AVIN MARSALIS BROWN, 23, of Raleigh and AKBA JIHAD JORDAN, 23, also of Raleigh. BROWN was sentenced to 92 months imprisonment, followed by 5 years of supervised release, and JORDAN was sentenced to 108 months imprisonment, followed by 5 years of supervised release.
BROWN and JORDAN were arrested and charged in a criminal complaint on March 19, 2014. A Grand Jury Indictment was filed on April 1, 2014, charging them with conspiracy to provide material support for terrorism. BROWN pled guilty to the charge on August 12, 2014, and JORDAN pled guilty on October 16, 2014.
Beginning in 2013, BROWN and JORDAN had numerous conversations in which they discussed their desire to travel to either Syria or Yemen to engage in violent jihad and fight the “kuffar” (non-Muslims).
JORDAN emphasized the need to be physically fit and to train with firearms so they could fight overseas. JORDAN discussed the weapons that he had in his possession, including an AK-47, and how to use those weapons in fighting the kuffar. To this end, JORDAN conducted physical training and firearm and tactics training with BROWN.
BROWN and JORDAN also discussed the need to obtain passports to travel overseas for purposes of violent jihad. JORDAN commented on several occasions that he wanted to go to Syria because he believed the caliphate may start there and he wanted to be a part of that. BROWN stated he would like to go to Syria or Yemen.
In December of 2013, in a meeting at JORDAN's apartment, JORDAN brought out an AK-47 and a vest which contained several loaded magazines. He additionally displayed a Mini l4 assault rifle, more ammunition, and a sword. JORDAN showed BROWN how to break down the AK-47 and explained the capabilities of the weapons.
Throughout early 2014, BROWN and JORDAN continued discussing fighting in overseas locations and the best routes of travel to those locations which most frequently included Syria and Yemen. In January of 2014, BROWN stated that he had received his United States passport. JORDAN stated he was still trying to secure the funds for his passport, and he scheduled an appointment at a local United States Post Office for March 21, 2014.
In February of 2014, BROWN and JORDAN discussed how using the cover of a charity would make it easier to get into Syria. They also discussed persons who have been arrested traveling overseas to fight and talked about countermeasures to defeat criminal charges.
On March 19, 2014, BROWN traveled to Raleigh Durham International Airport and was arrested without incident. Upon being arrested, BROWN gave a statement acknowledging that he had purchased a ticket to fly to Istanbul, Turkey, with the intention of traveling to Syria to fight. On March 19, 2014, agents also arrested Jordan in Raleigh, N.C.
Investigation of this case was conducted by the FBI’s Raleigh-Durham Joint Terrorism Task Force, which includes participation by the following agencies: Federal Bureau of Investigation, Department of Homeland Security-Homeland Security Investigation, Raleigh Police Department, Durham Police Department, Cary Police Department, NC State Bureau of Investigation, and the NC State Highway Patrol. Assistant United States Attorneys Eric D. Goulian and Jason M. Kellhofer prosecuted the case for the government.
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News releases are available on the U. S. Attorney’s webpage at www.usdoj.gov/usao/nce within 48 hours of release.
Puerto Rico Man Sentenced to 18 Months in Prison for Bribing Public OfficialRead the Press Release
St. Thomas, USVI – District Court Judge Curtis V. Gomez sentenced today Miguel Rodriguez-Ramirez, 45, of Puerto Rico, to 18 months’ imprisonment and three years of supervised release for bribery of a public official, United States Attorney Ronald W. Sharpe announced. Judge Gomez ordered Rodriguez-Ramirez to pay a $100 special assessment, perform 300 hours of community service, and forfeit the $12,080.00 used to bribe the public official.
On February 12, 2016, Rodriguez-Ramirez pleaded guilty to bribery of a public official. According to the plea agreement filed with the court, between July 2015 and December 2015, Rodriquez-Ramirez bribed a public official by paying that public official to smuggle illegal aliens into the United States. Rodriquez-Ramirez paid the public official a total of $12,080 to shepherd the illegal aliens through customs at the Cyril E. King Airport.
The case was investigated by U.S. Customs and Border Protection Office of Internal Affairs and the U.S. Immigration and Customs Enforcement Office of Professional Responsibility. The case was prosecuted by Assistant U.S. Attorney Sigrid Tejo-Sprotte.
Postal Employee Sentenced to Probation, Fined for Stealing Cash from MailRead the Press Release
JOHNSTOWN, Pa. - A resident of Summerhill, Pa., has been sentenced in federal court in Johnstown to three years’ probation and ordered to pay a fine in the amount of $1,000 on her conviction of theft of mail by a postal employee, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Kelly Gruss, 37, of Summerhill, Pa.
According to information presented to the court, on September 22, 2014, Gruss stole $10, and on September 25, 2014, she stole $20 from greeting cards sent via U.S. mail.
Assistant United States Attorney John J. Valkovci, Jr. prosecuted this case on behalf of the government.
Mr. Hickton commended the Office of Inspector General of the United States Postal Service for the investigation leading to the successful prosecution of Gruss.
Pittsburgh Man Sentenced to Prison for Role in Cocaine Trafficking SchemeRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 24 months’ imprisonment on his conviction of conspiracy to distribute cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Keith Beck, 24, of Pittsburgh, Pa.
According to information presented to the Court, in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Keith Beck was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Prior to imposing sentence, Judge Hornak stated that the sentence was sufficient but not greater than necessary to fulfill the purposes of sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Beck.
Philadelphia Man Pleads Guilty to KidnappingRead the Press Release
Nathaniel Rodriguez, 41, of Philadelphia, PA pled guilty today to two counts of kidnapping, announced United States Attorney Zane David Memeger. On November 6, 2015, Rodriquez forced victim #1 to accompany him to several ATM machines on South Street in Philadelphia, and to take money from one machine. On November 11, 2015, Rodriguez forced victim #2 to drive him from Center City to ATM machines near Aramingo Avenue and I-95, and attempted to take money from those machines. Rodriguez forced victim #2 to buy him cigarettes before fleeing with the victim’s car and cell phone.
The defendant faces a maximum possible sentence of life imprisonment.
The case was investigated by the Federal Bureau of Investigations and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Arlene Fisk.
North Shore Ophthalmologist Agrees to Pay $55,000 to Resolve False Medicare Billing AllegationsRead the Press Release
BOSTON – United States Attorney Carmen M. Ortiz announced today that Martin E. Cutler, M.D., an ophthalmologist with offices in Woburn and Gloucester, and his company, Martin E. Cutler, M.D., P.C., have agreed to pay $55,000 to resolve allegations that they submitted false claims to Medicare. Specifically, the government alleged that, between January 2010 and December 2014, Dr. Cutler and his practice falsely billed Medicare for ophthalmic diagnostic imaging when there was no underlying diagnosis to justify the imaging. They also allegedly falsely billed Medicare for office visits where a prior claim for the same visit had been denied and the new claim was not supported by Dr. Cutler’s documentation.
“This settlement is part of the government’s ongoing efforts to fight Medicare fraud, whether the defendant is a large pharmaceutical company or an individual physician practice,” said U.S. Attorney Ortiz. “Physicians have an obligation to bill only for medically reasonable and necessary services.”
“Our agency will continue to aggressively investigate health care providers that bilk Medicare for unnecessary services just to boost profits,” said Special Agent in Charge Phillip Coyne, U.S. Department of Health and Human Services Office of Inspector General. "And we will not tolerate greed, which can undermine medical decision-making and the public's trust in the health profession."
The settlement resolves allegations filed by a whistleblower, Brian Sachs. See United States, et al., ex rel. Brian D. Sachs v. Martin E. Cutler, M.D., and Martin E. Cutler, M.D., P.C., d/b/a Cutler Eye & Skin Center, No. 14-11879-IT (D. Mass.). The False Claims Act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. Under the terms of the settlement agreement, the federal government will pay the whistleblower $11,000 from the settlement amount.
U.S. Attorney Ortiz and HHS OIG SAC Coyne made the announcement today. It was handled by Assistant U.S. Attorneys Rayford Farquhar and Gregg Shapiro of Ortiz’s Civil Division.
Matthew Melvin of Shelburne, VT Indicted for Identity Theft and Related ChargesRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Matthew S. Melvin, age 34, from Shelburne, Vermont, has been arrested and indicted on identity theft and related charges. Melvin made his initial appearance in federal court on June 30, 2016 for his arraignment on the ten-count indictment. Magistrate Judge John M. Conroy ordered Melvin released on various conditions of pre-trial release.
As charged in the indictment, from approximately 2008 through 2013, Melvin devised a scheme to defraud multiple companies around the nation by means of fraudulent pretenses and aggravated identity theft. As part of the scheme, Melvin applied for jobs to multiple companies using stolen or assumed identities, and Melvin convinced these companies to mail or wire him money in the names of the stolen or assumed identities. Melvin had the fraudulently-obtained proceeds from his scheme deposited into his personal bank accounts, and Melvin subsequently transferred those funds between his bank accounts. The indictment charges Melvin with three counts of mail fraud, three counts of wire fraud, three counts of identity theft, and one count of money laundering.
The charges against Melvin are merely accusations and Melvin is presumed innocent until proven guilty. If convicted, Melvin’s sentence will be advised by the federal sentencing guidelines.
The case against Melvin is being investigated by the Internal Revenue Service, with assistance from the United States Secret Service.
The United States is represented in this case by Assistant United States Attorney Kunal Pasricha. Melvin is represented by Assistant Federal Defender Elizabeth K. Quinn.
Marion County man sentenced for wire fraudRead the Press Release
WHEELING, WEST VIRGINIA – Devin Wright, 25, of Fairmont, West Virginia, was sentenced to eight months in prison for participating in a wire fraud conspiracy, United States Attorney William J. Ihlenfeld, II, announced.
Wright conspired with another individual at Express Towing, a towing company in Wetzel County, where they would rent trucks from national rental companies and then would stage false accidents involving the rented trucks. Instead of calling the national rental companies and arranging for their preferred and approved towing companies to tow the damaged vehicles, they allegedly towed the trucks or had the customers return the trucks to Express Towing and then would demand payment of towing fees before they would return the truck to the rental companies. He pled guilty in May 2016 to one count of “Conspiracy to Commit Wire Fraud.”
Assistant U.S. Attorney Robert H. McWilliams prosecuted the case on behalf of the government. The Federal Bureau of Investigation investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Marion County man sentenced for cocaine distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Bennie Kyle, 61, of Fairmont, West Virginia, was sentenced to 27 months in prison for distributing cocaine near Fairmont State University, United States Attorney William J. Ihlenfeld, II, announced.
Kyle sold cocaine in June 2015 in Marion County, WV near Fairmont State University. He pled guilty in March 2016 to one count of “Distribution of Cocaine Base within 1,000 Feet of a Protected Location.”
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Three Rivers Drug Task Force investigated.
U.S. District Irene M. Keeley presided.
Man Pleads Guilty to Manchester Bank RobberyRead the Press Release
CONCORD, N.H. – Ricardo Mejia, 25, a resident of Manchester, New Hampshire, pleaded guilty in the United States District Court to robbing a Manchester branch of the Northway Savings Bank.
According to documents filed in connection with Mejia’s plea, on September 19, 2015, Mejia entered a branch of the bank at 29 Cilley Road, Manchester N.H., wearing a dreadlock-style wig. Approaching the teller counter, Mejia reportedly instructed the teller to “[G]ive me all 100’s, 50’s, 20’s. I have a gun. Don’t give me any tainted money or I’ll come back and shoot you.” (Mejia did not display a gun.) The teller handed over cash in the requested denominations, and Mejia fled with the cash.
The court will determine Mejia’s sentence after it reviews a presentence investigation report prepared by the United States Probation & Pretrial Services Office. He will be sentenced on October 13, 2016. Mejia has been in custody since his arrest on related state charges and will remain in custody pending sentencing.
This case was investigated by the Manchester Police Department with the assistance of the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Bill Morse.
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Limestone Man Arrested for Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Kevin James Fox, 60, of Limestone, NY, was arrested and charged by criminal complaint with production and receipt of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of 50 years, and a fine of $250,000.
Assistant U.S. Attorney, Aaron J. Mango, who is handling the case, stated that according to the complaint, beginning in April of 2016, the defendant created multiple online personas. Fox also obtained phone numbers using publically available apps that allow a user with an internet connected tablet or smart phone to obtain a user selected, non-assigned phone number.
Using these phone numbers, the defendant then began communicating, via text messages, with an ex-girlfriend. In these text messages that the ex-girlfriend believed were coming from unknown individuals, Fox convinced the ex-girlfriend that she was in physical danger from organized crime. The defendant manipulated the ex-girlfriend into believing that the only way she could get out of danger was to have explicit sexual contact with her 17-year-old son, and to take photographs of the sexual activity.
On June 10 and June 21, 2016, the ex-girlfriend engaged in explicit sexual contact with her 17-year-old son, produced images and videos of this contact, and sent the images and videos via text messages to phone numbers controlled by the defendant.
The defendant made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and is being detained pending a detention hearing on July 6, 2016, at 2:00 p.m.
The criminal complaint is the culmination of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent in Charge along with the Cattaraugus County Sheriff’s Office, under the direction of Timothy Whitcomb.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Investment Advisor to Plead Guilty to Orchestrating $21M Dollar Ponzi SchemeRead the Press Release
PROVIDENCE, R.I. – According to documents filed in U.S. District Court in Providence today, Patrick E. Churchville, 47, of Barrington, R.I., owner and president of ClearPath Wealth Management, LLC, formerly located in Providence and Barrington, has agreed to plead guilty to criminal charges related to his orchestration of a $21 million dollar Ponzi scheme, his theft and use of $2.5 million dollars of investors’ funds to purchase his home, and his failure to pay more than $820,000 in personal federal income taxes.
According to court documents, Patrick Churchville will plead guilty as charged in an Information to five counts of wire fraud and one count of tax fraud, announced United States Attorney Peter F. Neronha, Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation.
According to court documents, an investigation by the FBI, IRS Criminal Investigation and the United States Attorney’s Office determined that in the spring of 2008 through October 2011, Churchville and ClearPath, on behalf of their client investors, invested approximately $18 million dollars in JER Receivables, an entity incorporated in Maryland. In June 2010, Churchville became aware that the investments with JER were no longer producing returns and that ClearPath had been subjected to fraudulent and misleading representations by the principals of JER. Churchville failed to notify his client investors that he had lost millions of dollars of invested funds.
According to court documents, in order to hide the fact that he had lost millions of dollars of client investor funds through his dealings with JER Receivables, and to continue to operate his business and reap his investment fees, Churchville misappropriated approximately $21 million dollars of investment money. To obtain the $21 million dollars, Churchville misused investor money already under his control and obtained new investor funds. He used this money to pay back the JER investors and told them, falsely, that the money was the return on their investments. To induce new investments to carry out the schemes, Churchville lied and told investors that ClearPath’s previous investments with JER Receivables had been successful and produced high rates of return.
Additionally, the investigation determined that in 2011, Churchville created a scheme to obtain $2.5 million dollars, using investors’ funds as collateral without their knowledge, to purchase a personal residence in Barrington. Churchville failed to report the $2.5 million dollars as income on his personal tax returns, resulting in a loss to the IRS of $820,528.
United States Attorney Peter F. Neronha commented, “Mr. Churchville, motivated by greed and a desire to live an outlandishly expensive lifestyle, used sleight of hand to swindle dozens of investors out of funds they had properly earned, giving false assurances all along the way. Rather than act in the interest of his clients, he acted only in his own. His lies, piled on one after another, have led to today’s substantial and serious charges. His conduct is a reminder to those who invest that integrity is not found behind every door.”
“Mr. Churchville betrayed his investors’ trust, stealing their savings and leaving them with uncertain financial futures for his own personal greed,” said Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI. “This behavior destroyed the financial security of hard-working individuals all over the country and the FBI hopes this case will serve as a reminder to executives everywhere that honesty and integrity are more important than the bottom line.”
“Investment schemes that seem too good to be true should be a sign for investors to stay clear,” said Special Agent in Charge Joel Garland, IRS Criminal Investigation. “We remain committed to ferreting out such schemes, which defraud investors of millions in savings and also taxes due to the IRS.
The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.
United States Attorney Peter F. Neronha acknowledges and thanks the United States Postal Inspection Service - Boston Division and the U.S. Securities and Exchange Commission for their assistance in the investigation of this matter.
Patrick Churchville is also a defendant in a U.S. Securities and Exchange Commission civil matter.
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Jim Martin (401) 709-5357
email: [email protected]
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Huntington man is final defendant sentenced in Detroit-to-Huntington heroin conspiracyRead the Press Release
HUNTINGTON, W.Va. – A Huntington man who participated in a heroin distribution conspiracy in 2012 and 2013 was sentenced today to three and a half years in federal prison, announced Acting United States Attorney Carol Casto. Edwin G. Simpson, 45, previously pleaded guilty to maintaining a residence for the purpose of distributing and using heroin.
Between November 2012 and March 2013, Simpson was the tenant of an apartment at 1231 10th Avenue in Huntington. During that period, Simpson allowed others to store heroin at his apartment after it was transported from Detroit. Simpson also allowed others to distribute heroin from his apartment to various customers.
On March 8, 2013, agents with the Huntington FBI Drug Task Force executed a search warrant at Simpson’s apartment. During the search, agents seized heroin, a .32 caliber revolver, ammunition, and other items associated with the sale of heroin.
Multiple defendants have been convicted of drug offenses as a result of this investigation. Those sentenced to federal prison include Kenneth E. Baxter, who was sentenced to seven years and three months; Coty S. Richardson, who was sentenced to five years and ten months; Sean L. Gist, who was sentenced to five years and three months; Ramone L. Wells, who was sentenced to four years; Pricilla Lee Dylan, who was sentenced to two years and nine months; and Dustin S. Barton, who was sentenced to a year and a day. Paul A. Roberts, Jr., was sentenced to five years of probation for assisting the group in securing a residence to conduct drug deals. Warren G. Howard was also sentenced to five years of probation for distributing heroin.
The Huntington FBI Drug Task Force and the United States Postal Inspection Service conducted the investigation. Assistant United States Attorney Joseph F. Adams is responsible for the prosecution. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Please note that the original press release inadvertently omitted the United States Postal Inspection Service in the list of investigating agencies responsible for this case.
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Hancock County, WV man sentenced for child pornography offensesRead the Press Release
WHEELING, WEST VIRGINIA – Steve G. Singo, 35, of Weirton, West Virginia, was sentenced today to 97 months in prison for receiving, possessing, and distributing images of child pornography, United States Attorney William J. Ihlenfeld, II, announced.Evidence presented at a two day trial in March 2016 indicated that Singo utilized internet-based peer-to-peer file sharing technology to download and share files depicting minors engaged in sexually explicit conduct. Authorities discovered Singo in possession of various images of child pornography at his residence in Hancock County, West Virginia.
Following the trial, a jury found Singo guilty of one count of “Receipt and Distribution of Child Pornography,” and one count of “Possession of Child Pornography.”
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The West Virginia State Police investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.
Gwynn Oak Man Sentenced to Almost 6 Years in Federal Prison for Conspiring to Commit Sex Trafficking of a 13 Year Old ChildRead the Press Release
Baltimore, Maryland - U.S. District Judge George L. Russell III sentenced Jonathan M. Went, a/k/a “Jon Maxx,” and “Max Out,” age 31, of Massachusetts and Gwynn Oak, Maryland, today to 71 months in prison, followed by 15 years of supervised release, for conspiracy to commit sex trafficking of a child. Judge Russell also ordered that upon his release from prison, Went must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Chief James W. Johnson of the Baltimore County Police Department; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Baltimore County State’s Attorney Scott Shellenberger.
According to Went’s guilty plea and other court documents, on March 5, 2014, co-defendant Rayvon O. Archibald encountered a girl under the age of 14 in New York City and provided her with alcohol and drugs. The next day, Archibald transported the girl by bus from New York to White Marsh, Maryland, then by taxi to Went’s apartment in Gwynn Oak. Before they left New York, Archibald called Went to let him know that he would arrive in Baltimore later that day. That same day, Archibald and Went posted an ad on a commercial sex website soliciting customers for the girl which listed the number for a phone used by Went. Archibald also instructed the girl on pricing for commercial sex acts and provided her with a document that included prices. After the ad was posted, customers responded to the ad on that phone through at least midnight and at least one of the customers engaged in a commercial sex act with the victim.
At approximately 10:30 p.m. on March 6, 2014, the girl used Went’s phone to secretly send a message to her mother advising that she was not able to leave. After receiving the message, the girl’s mother reported her daughter missing to the police. The next morning, the girl secretly left Went’s apartment and called 911 from Went’s phone. The police found the girl at a nearby intersection. The girl gave police the address of Went’s apartment and told police that there were two men and a woman inside the location. The girl reported that she was held against her will inside Went’s apartment building. The girl identified Archibald as her captor and stated that he had assaulted her.
Police went to the apartment and arrested Went, Archibald and a woman. A search warrant was executed and police seized electronic devices, including the phone the girl used to contact her mother and the device used to place the ad on the commercial sex website. Both the girl and the woman who was arrested independently told police that one customer who came to the apartment demanded his money back because the girl was too young. The woman and the girl gave the money back to the customer, and when they told Archibald what happened, he slapped them both.
Rayvon O. Archibald, a/k/a “P Money,” “Keyvon M. Malone,” “Keyvon Smith,” and “Scoobie,” age 26, of Boston, Massachusetts, pleaded guilty to sex trafficking of a child and was sentenced to 14 years in federal prison.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department, Maryland State Police and the Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers and Sandra Wilkinson, who prosecuted the case.
Guilty Plea in Inyo County Counterfeiting SchemeRead the Press Release
FRESNO, Calif. —Gabriel Michael Anderson, 30, of Corona, pleaded guilty today to possession of analog, digital, and electronic images of U.S. obligations and securities, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, on October 11, 2014, after a routine traffic stop by the California Highway Patrol in Big Pine, Anderson was found to be in possession of counterfeit U.S. $100 bills. During a search of a storage shed where Anderson was storing his belongings, law enforcement officers found evidence related to the manufacturing of counterfeit bills, including cut and uncut counterfeit bills, copies of security devices including watermarks and security strips, and computers. Anderson admitted that he had manufactured approximately $50,000 in counterfeit bills over the past 10 years.
This case is the product of an investigation by the U.S. Secret Service and the California Highway Patrol. Assistant United States Attorney Mark J. McKeon is prosecuting the case.
Anderson is scheduled to be sentenced by United States District Judge Dale A. Drozd on October 17, 2016. Anderson faces a maximum statutory penalty of 25 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
German Shipping Company Pleads Guilty to Covering up Illegal Dumping of Oily Waste Water into Great LakesRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of MST MINERALIEN SCHIFFAHRT SPEDITION UND TRANSPORT GMBH (“MST”), a German company and operator of the M/V Cornelia, with violating the Act to Prevent Pollution from Ships (APPS) by failing to maintain an accurate ship record about the disposal of oil-contaminated waste. MST pleaded guilty today before U.S. District Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minn.
"Lake Superior is a vital part of Minnesota’s natural environment," said Assistant United States Attorney John Kokkinen. "The criminal fine and community service payment imposed by the Court provide a strong deterrent to future would-be polluters and significant funding to preserve and protect Lake Superior for future generations. This case was made possible by the excellent work of members of the United States Coast Guard who served as critical partners throughout this investigation."
"This case is an excellent example of the Coast Guard's and Department of Justice's commitment to holding shipping companies and crews accountable for non-compliance with International and U.S. environmental laws and regulations," said Rear Adm. June Ryan, commander of the Coast Guard 9th District. "Part of the terms of the plea agreement provide future protections for the pristine waters of the Great Lakes, a noteworthy outcome in the continued partnership between the U.S. Attorney's Office and the Coast Guard throughout the Great Lakes, in particular the U.S. Attorney's Office in Minnesota."
"The oceans and our inland waterways cannot be used as dumping grounds," said Jeff Martinez, Special Agent in Charge of EPA’s criminal enforcement program in Minnesota. "Today’s sentencing should send a clear message to would-be violators that the American people will not allow U.S. environmental laws to be violated, adversely affecting both public health and marine life."
According to the defendant’s guilty plea and documents filed in court, from February 2015 through October 2015, the M/V Cornelia, a German-owned commercial vessel, experienced significant leakages of oily waste-water. As a result, the M/V Cornelia was accumulating a substantial volume of machinery space bilge water.
On at least ten occasions, the M/V Cornelia’s Chief Engineer and/or Second Engineer instructed members of the engine room crew to transfer machinery space bilge water from the dirty bilge tank to the clean bilge tank, which is a separate tank that is supposed to contain only clean, oil-free water, and then discharge the oily waste-water overboard. At least one occasion when machinery space bilge water was transferred to the clean bilge tank and then discharged overboard occurred in approximately May 2015 while the ship was in the Great Lakes.
On each occasion in which oily waste-water was transferred internally and then discharged overboard, the Chief Engineer intentionally failed to record the transfers and subsequent discharges of oily waste-water in the M/V Cornelia’s Oil Record Book (ORB). This gave the false impression in the ORB that all of the oily waste-water had been properly handled and disposed.
On November 3, 2015, the M/V Cornelia called upon the Port of Duluth to load grain for transport to Africa. At that time, U.S. Coast Guard inspectors boarded the vessel to conduct a Port State Control examination and were presented with the M/V Cornelia’s ORB containing the omissions and false entries.
As a condition of the defendant’s guilty plea, MST will be required to pay an $800,000 criminal fine to the United States. In addition to the criminal fine, MST will be required to make a community service payment of $200,000 to support the protection and preservation of Lake Superior and the Lake Superior watershed.
As an additional condition of the defendant’s guilty plea, MST will serve three years of probation, during which time the organization must commit no further violations of the International Convention for the Prevention of Pollution from Ships (MARPOL), federal, state or local law. In addition, MST must fund and implement an Environmental Compliance Plan (ECP) for all vessels that it operates which call at ports or places in the United States.
This case is the result of an investigation conducted by the U.S. Coast Guard Investigative Service and the U.S. Environmental Protection Agency.
This case was prosecuted by Assistant U.S. Attorneys Benjamin F. Langner and John Kokkinen.
Defendant Information:MST MINERALIEN SCHIFFAHRT SPEDITION UND TRANSPORT GMBH
Schnaittenbach, GermanyConvicted: • Violation of the Act to Prevent Pollution from Ships, 1 count
Sentenced: • $800,000 criminal penalty
• $200,000 community service payment
• 3 years of probationGeorgia Man Pleads Guilty to Possession with Intent to Distribute MarijuanaRead the Press Release
St. Thomas, USVI – On July 5, 2016, Keenan Powell-Ryder, 20, pleaded guilty in District Court to possession with intent to distribute marijuana, United States Attorney Ronald W. Sharpe announced.
According to the plea agreement filed with the Court, on April 19, 2016, Powell-Ryder possessed with intent to distribute marijuana by smuggling the marijuana into the Cyril E. King Airport, St. Thomas, Virgin Islands. Powell-Ryder transported the marijuana from the mainland United States.
Powell-Ryder faces a maximum of five years in prison and a $250,000 fine.
The case is the result of investigative work by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney David White.
Former Postal Employee Makes Appearance in Federal Court After Agreeing to Plead Guilty to Stealing from the Mail and Selling at Least 6,240 Credit CardsRead the Press Release
SANTA ANA, California – A Garden Grove man who worked for the United States Postal Service for more than two decades appeared in federal court this morning after agreeing to plead guilty to stealing from the mail and selling at least 6,240 credit cards.
Chinh Vuong, 48, was summonsed into federal court this morning.
Vuong was charged last week with one count of conspiracy to commit bank fraud and one count of aggravated identity theft for stealing mail while on the job for a year and using the information in the mail for identity theft.
“Postal employees have a duty to conduct postal business in a professional manner, to ensure the proper delivery of the public's mail," said United States Attorney Eileen M. Decker. “This defendant, who was entrusted with providing this important public service, victimized thousands of postal customers to finance a life of luxury. Such conduct is contrary to the long-established tradition of the postal service and its employees, whose honest delivery of mail contributes every day to the economic vitality of our country.”
According to the documents filed in the case, Vuong had worked at the United States Postal Service Santa Ana Processing and Distribution Center (“Santa Ana P. & D.C.”) as a mail processing clerk since 1989. Between October 6, 2014, and October 6, 2015, while working at the Santa Ana P. & D.C., Vuong stole at least 6,240 credit cards from undelivered mail for the profit of him and others. Vuong made at least $6,000 per month selling stolen credit cards.
Vuong used the funds from the sale of stolen credit cards to pay for personal expenses, including designer handbags and boots, two BMWs, alcohol, and drugs. On October 6, 2015, federal authorities searched Vuong’s Garden Grove residence and seized approximately 199 stolen credit cards and luxury items bought using the proceeds from selling stolen credit cards, including two BMWs and over 20 handbags made by brands like Prada, Louis Vuitton, and Gucci.
Special Agent in Charge Brian Washington added, “The USPS OIG conducts internal investigations to include mail theft and misconduct by postal employees. The overwhelming majority of postal employees are honest, hardworking and trustworthy individuals who would never consider engaging in any form of criminal behavior. However, when a postal employee betrays that trust, our special agents vigorously investigate those matters as has been done in this case.”
Robert Wemyss, Postal Inspector in Charge of the Los Angeles Division, stated “The overwhelming majority of Postal Service employees work conscientiously to move the nation’s mail to its proper destination. When that trust is compromised the United States Postal Inspection Service takes proper investigative steps to have them and their co-conspirators prosecuted.”
“Citizens need to rely on the security of the U.S. mail and the integrity of the postal carriers with whom their correspondence and their privacy is entrusted," said Deirdre Fike, the Assistant Director in Charge of the FBI's Los Angeles Field Office. "By lining his pockets through identity theft, Mr. Vuong breached the trust placed in him by citizens who paid his salary and the companies which sustained a financial loss.”
Vuong entered not guilty pleas this morning and his matter was assigned to United States District Judge Cormac J. Carney. Although a trial date of August 30 was set, it is expected that Judge Carney will set a change of plea hearing in the near future where Vuong will plead guilty to both counts.
The charge of aggravated identity theft carries a mandatory minimum sentence of two years in federal prison—which must run consecutively with the sentence imposed for the bank fraud conspiracy charge. The bank fraud charge conspiracy carries a statutory maximum sentence of 30 years.
The investigation into Vuong was conducted by United States Postal Inspection Service, United States Postal Service Office of the Inspector General, and the Federal Bureau of Investigation. Westminster Police Department also provided assistance in the investigation.
Former Operator of Two Macon Co. Companies Sentenced to More Than 11 Years in Prison on Securities Fraud and Money Laundering ChargesRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced today the former operator of two companies located in Franklin, N.C. to 135 months in prison on federal securities fraud and money laundering charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Barry Carlton Taylor, 64, of Franklin, was also ordered to serve three years of supervised release and to pay nearly $2.2 million as restitution to his victim investors.
U.S. Attorney Rose is joined by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, in making today’s announcement.
“Taylor was a con artist who used lies and deception to convince his victims to hand over their hard-earned money. Contrary to his lofty promises of huge profits, Taylor’s investors – some of whom were elderly – sustained grave financial losses and may never be able to recover financially after falling prey to this scammer’s investment scheme,” said U.S. Attorney Rose.
According to filed court documents and today’s sentencing hearing, Taylor operated two limited liability companies in Franklin, N.C., “OTC Investments, LLC” (OTC) and “Forex Currency Trade Advisors, LLC” (FCTA). Beginning in August 2011, Taylor induced 18 victims to invest approximately $2.5 million by falsely telling them he was an expert in the foreign currency exchange market (FOREX) and that their investments would be pooled into trading accounts which he would manage and use to invest in FOREX. Court records show that Taylor also falsely told his victims that he had created a computer software system that could track the FOREX market, which enabled him to make investments that generated very high rates of return, as much as 2.5% per month.
According to court records, even though Taylor opened and maintained FOREX trading accounts in the names of his two companies neither company was registered as a commodity pool operator. Court records also show that Taylor deposited the funds he solicited from the individual victim investors into these trading accounts, but he then withdrew more than half of the victims’ money and lost the rest due to trading losses, fees and commissions. According to court records, by April 2015 there was very little or no investor funds remaining in the trading accounts controlled by Taylor.
Taylor concealed the losses by sending the victims false monthly statements, which represented that the investors’ principal was intact and that they were realizing profits as promised. Court records indicate that Taylor used money from other principal investors to make Ponzi-style payments to investors who had asked Taylor to withdraw their profits on their promised returns. Taylor also convinced some of the investors to reinvest their “commissions” rather than accepting payments, court documents show.
In furtherance of the fraudulent scheme, filed documents indicate that Taylor used a number of lies to further induce investors and to conceal the fraud. For example, in January 2015, Taylor sent his victims fraudulent emails claiming that he had halted FOREX trading due to events involving the Swiss National bank. In another example, court records show that Taylor created a fictitious entity and a fictitious person in order to send lulling emails to calm his investors, and later lied to victims telling them he was considering taking legal action against this fictitious individual who was supposedly responsible for their trading losses.
Contrary to promises made to his victim investors, Taylor diverted over half a million dollars of the victims’ investment funds and used the money to cover personal expenses, such as restaurants, entertainment and shopping, among others. Taylor pleaded guilty in January 2016 to fraud by commodities pool operator and concealment of money laundering charges.
In announcing today’s sentence, Judge Reidinger said that the losses to the individual victims were great, many of whom were deprived of the security of their retirements.
Taylor will be ordered to report to the Federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The FBI investigated the case. In making this announcement, U.S. Attorney Rose also thanked the U.S. Commodities Futures Trading Commission for their invaluable assistance in this investigation. Assistant United States Attorney Don Gast of the U.S. Attorney’s Office in Asheville was in charge of the prosecution.
Former Member of Westminster Planning Commission to Face Federal Charge of Soliciting Bribe to Help Obtain a Liquor LicenseRead the Press Release
SANTA ANA, California – A former member of the Planning Commission for the City of Westminster is scheduled to be arraigned today on charges of soliciting and receiving a $15,000 bribe to help a person obtain a liquor license.
Dave Phuong Dinh Vo, 42, of Westminster, is expected to surrender and be arraigned this morning on one count of bribery in a program receiving federal funds.
Vo has agreed to plead guilty to the federal bribery charge.
“Public officials like Mr. Vo must serve the interests of the public at all times, and not succumb to the temptation of accepting bribes from those seeking to influence the process," said United States Attorney Eileen M. Decker. “The people of Westminster deserve to have confidence that their government is granting permits based on merit rather than those willing to pay bribes.”
Vo served as a Planning Commissioner in the Orange County city from early 2009 through August 25, 2011. As a Planning Commissioner, Vo had influence over the issuance of conditional use permits.
In June 2011, Vo solicited a $15,000 bribe from a confidential informant working with the FBI, he admitted in a plea agreement. During August 2011, over the course of four meetings, Vo received payments that totaled $15,000 in exchange for pushing the liquor license through the city’s approval process.
"Corrupt activity such as the defendant's in this case leads to an erosion of trust in government by citizens whose livelihoods depend on decisions made by elected officials," said Deirdre Fike, the Assistant Director in Charge of the FBI's Los Angeles Field Office. "Mr. Vo's admission of guilt is a welcome step in restoring that trust."
The charging document, called an information, and the plea agreement were filed June 2 in United States District Court.
The bribery charge carries a statutory maximum penalty of 10 years in federal prison.
The case against Vo was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Daniel Ahn of the Santa Ana Branch Office.
Former Georgia Tech Employees Charged with FraudRead the Press Release
ATLANTA - James G. Maloney has been charged with committing and conspiring to commit mail and wire fraud against the United States and Georgia Tech. James J. Acree and James D. Fraley, III were also charged with participating in the conspiracy.
“The defendants in this case were successful members of the scientific and research communities who allegedly allowed their judgment to be clouded by greed,” said U. S. Attorney John Horn.
“The allegations contained in the charging federal indictment are disheartening in that these three defendants offered so much to a technical program that very much needed their skills and intellect. The allegations, however, assert that they chose instead to engage in fraud driven by financial greed,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“This case was enabled by the outstanding teamwork with the Federal Bureau of Investigations, Air Force Office of Special Investigations, and US Attorney's office,” OSI Special Agent Natalie Spaur said. “In addition, it demonstrates the focus of law enforcement agencies to protect the public's critical resources.”
According to U.S. Attorney Horn, the charges, and other information presented in court: The defendants were employed by Georgia Tech and were members of the research faculty at the Georgia Tech Research Institute (GTRI), where they were assigned to the Advanced Concepts Laboratory. The defendants are experts in electromagnetic analysis and measurements and worked on projects funded by the United States Department of Defense, various intelligence agencies, and private industry. The defendants are charged with conspiring to defraud the United States and Georgia Tech by engaging in Georgia Tech Procurement Card (“PCard”) fraud and by engaging in fraudulent consulting activity.
PCard Fraud
As part of his duties and responsibilities at GTRI, Fraley had access to a Georgia Tech PCard. Fraley was supposed to use his PCard to purchase materials and supplies for official Georgia Tech business purposes. Neither he nor anyone else was allowed to charge personal purchases on a PCard. Nevertheless, Maloney, Acree, and Fraley allegedly charged more than $250,000 worth of personal expenses on Fraley’s PCard, including two four-wheelers and a trailer, two Sony 52-inch flat-screen televisions, Apple computers, iPads, OtterBox protective cases, iPods, Kindle E-readers, Leica and Nikon digital cameras, video cameras, a mini micro pinhole video camcorder pen, a night vision monocular, two pairs of binoculars, Bose headphones, a 3D printer, sports watches with heart-rate monitors, sunglasses, materials used to perform defendants’ private consulting contracts, computer monitors and solar panels for a private hunting club, a personal video network for home use, and an uninterruptible power supply for a tennis ball machine.
According to documents filed in court, Maloney and Fraley also used Fraley’s PCard to pay for remodeling and maintenance expenses related to six rental properties they owned together in the name of a Georgia corporation called J’s Services. Some of the payments for the benefit of J’s Services were charged to the United States on one of the contracts that Maloney controlled at GTRI. In addition, Fraley used his PCard to make PayPal payments to friends and relatives who “kicked back” some of the money to him. To make their personal PCard charges look like legitimate Georgia Tech business expenses, the defendants provided and caused others to provide false information and fraudulent documents to Georgia Tech and the United States.
After the defendants learned that they were being investigated by Georgia Tech’s Internal Auditing Department, they met to discuss their PCard fraud, get their stories straight, and plan a cover-up. Fraley recorded these conversations on his phone and later turned the recordings over to the FBI.
Fraudulent Consulting Activity
While employed full-time by Georgia Tech, Maloney, Acree, and Fraley allegedly moonlighted as consultants on various projects for which they were paid a total of more than $600,000. In competing for and performing this outside consulting work, the defendants allegedly diverted customers and revenue away from GTRI for their own personal gain and benefit. In addition, Maloney and Fraley allegedly caused and directed some of the Georgia Tech employees and students they supervised at GTRI to help perform this consulting work. And Maloney and Fraley allegedly caused those Georgia Tech employees and students to bill their time for such work to the United States on one of the government contracts that Maloney controlled at GTRI.
James G. Maloney, 50, of Marietta, Georgia, was arraigned before United States Magistrate Judge Janet F. King. Maloney was indicted by a federal grand jury on June 28, 2016. James D. Fraley, III, 38, of Acworth, Georgia, and James J. Acree, 50, of Atlanta, Georgia, also appeared before Judge King, waived indictment, and indicated that they intend to plead guilty to a criminal information charging them with participating in the conspiracy.
This case is being investigated by the Federal Bureau of Investigation and the Air Force Office of Special Investigations.
Assistant United States Attorneys J. Russell Phillips and Stephen H. McClain are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga
Former Fort Worth High School Teacher in Federal Custody on Federal Felony Child Pornography ChargeRead the Press Release
FORT WORTH, Texas — Matthew Anthony Keller, 24, of Watauga, Texas, who, according to police reports, taught at Southwest High School in Fort Worth, Texas, remains in federal custody following his arrest Friday on a federal complaint charging receipt of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Keller made his initial appearance in federal court today in Fort Worth, before U.S. Magistrate Judge Jeffrey L. Cureton, who ordered that he remain in custody pending a detention hearing set for tomorrow, July 6, 2016.
According to the just-unsealed complaint, the investigation began last month when the parents of a 15-year-old male (MV1) notified a police department in Macomb County, Michigan, that they had discovered a relationship between their son and Keller. The parent advised that Keller was a 24-year-old high school teacher and youth pastor who exchanged nude photos and videos with MV1 for approximately 18 months. The parent was further concerned because it was discovered that Keller planned to fly from Texas to Michigan and possibly meet with MV1 for a sexual encounter.
As the investigation progressed, the Macomb County Sheriff’s Office learned that Keller met the minor victim, who first advised him he was 18-years-old and then later admitted he was 13-years-old, on a website approximately two years ago. When a search warrant was conducted at Keller’s residence in Watauga, law enforcement seized a computer from his bedroom. A forensic analysis of that computer revealed a nude, sexually explicit video of the minor victim.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The maximum statutory penalty for the offense as charged is not less than five years or up to 20 years in federal prison, a $250,000 fine and a lifetime of supervised release.
This year marks the 10th anniversary of the Project Safe Childhood (PSC) initiative. PSC is a department initiative launched in May 2006 to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Since FY 2011, the Department of Justice has filed 20,260 PSC cases against 19,111 defendants. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.
Anyone who may have been victimized in this case is asked to contact U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) at its toll-free number: 1-866-347-2423.
ICE HSI, the Tarrant County District Attorney’s Office, the Macomb County Sheriff’s Office, and the Eastpointe, Michigan Police Department are investigating.
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Former Bookkeeper Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Linda Joyce Posey Best, 46, of Mobile, was sentenced to 6 months imprisonment for stealing $278,733.56 from Somerby of Mobile, where she was employed as the assistant executive director in the business office. Best pled guilty to two counts of bank fraud in March of 2016.
United States District Court Judge Kristi K. Dubose imposed the sentence. The judge ordered that Best was to pay restitution in the amount of $278,733.56 during her five-year term of supervised release, which will commence at the conclusion of the six-month prison sentence. Judge Dubose also ordered that Tubbs pay $200 in special mandatory assessments. No fine was imposed.
The case was investigated by the Mobile Police Department and the Department of Homeland Security Investigations. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Former Army National Guard Member Arrested for Attempting to Provide Material Support to ISILRead the Press Release
Mohamed Bailor Jalloh, a former member of the Army National Guard, was arrested on July 3 for attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL). According to the complaint, Jalloh is alleged to have attempted to provide services by assisting in the procurement of weapons to be used in what he believed was going to be an attack on U.S. soil committed in the name of ISIL. In addition, the complaint alleges that Jalloh attempted to provide material support to ISIL by providing money to assist in the facilitation of individuals seeking to join ISIL.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office made the announcement. Jalloh will make his initial appearance today at 2 p.m. EDT before U.S. Magistrate Judge John F. Anderson of the Eastern District of Virginia.
According to court documents and court proceedings, in March 2016, a now-deceased member of ISIL brokered an introduction between Jalloh, 26, of Sterling, Virginia, and an individual in the United States who actually was an FBI confidential human source (CHS). The ISIL member was actively plotting an attack in the United States and believed the attack would be carried out with the assistance of Jalloh and the CHS.
According to court documents, Jalloh met with the CHS on two occasions in April and May 2016. During the April meeting, Jalloh told the CHS that he was a former member of the Army National Guard, but that he had decided to quit after listening to online lectures by Anwar al-Aulaqi, a deceased leader of Al-Qaeda in the Arabian Peninsula. Jalloh stated that he recently had taken a six-month trip to Africa, where he had met with ISIL members in Nigeria and first began communicating online with the ISIL member who later brokered his introduction to the CHS.
During their meeting, Jalloh also told the CHS that he often thought about conducting an attack and that he knew how to shoot guns. Jalloh praised the gunman who killed five U.S. military members in a terrorist attack in Chattanooga, Tennessee, in July 2015, and stated that he had been thinking about conducting an attack similar to the November 2009 attack at Ft. Hood, Texas.
During the May 2016 meeting, Jalloh asked the CHS about the timeline for an operation and commented that it was better to plan an operation for the month of Ramadan. Jalloh also asked if the CHS could assist him in providing a donation to ISIL. Ultimately, Jalloh provided a prepaid cash transfer of $500 to a contact of the CHS that Jalloh believed was a member of ISIL, but who was in fact an undercover FBI employee.
In June 2016, Jalloh travelled to North Carolina and made multiple unsuccessful attempts to obtain firearms. On July 2, Jalloh went to a gun dealership in northern Virginia, where he purchased and test-fired a Stag Arms assault rifle. Unbeknownst to Jalloh, the rifle was rendered inoperable before he left the dealership with the weapon. Jalloh was arrested the following day and the FBI seized the rifle.
The criminal complaint charges Jalloh with attempting to provide material support and resources to ISIL, a designated foreign terrorist organization. If convicted, Jalloh faces a maximum penalty of 20 years 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.
The case was investigated by the FBI’s Washington Field Office Joint Terrorism Task Force. Assistant U.S. Attorney John T. Gibbs of the Eastern District of Virginia is prosecuting the case with the assistance of Trial Attorney Jolie Zimmerman of the National Security Division’s Counterterrorism Section.
Former Army National Guard Member Arrested for Attempting to Provide Material Support to ISILRead the Press Release
ALEXANDRIA, Va. – Mohamed Bailor Jalloh, 26, of Sterling, a former member of the Army National Guard, was arrested on July 3 for attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL). Jalloh will make his initial appearance here today at 2 p.m. before U.S. Magistrate Judge John F. Anderson.
According to the complaint, Jalloh is alleged to have attempted to provide services by assisting in the procurement of weapons to be used in what he believed was going to be an attack on U.S. soil committed in the name of ISIL. In addition, the complaint alleges that Jalloh attempted to provide material support to ISIL by providing money to assist in the facilitation of individuals seeking to join ISIL.
According to court documents and court proceedings, in March 2016, a now-deceased member of ISIL brokered an introduction between Jalloh, 26, of Sterling, Virginia, and an individual in the United States who actually was an FBI confidential human source (CHS). The ISIL member was actively plotting an attack in the United States and believed the attack would be carried out with the assistance of Jalloh and the CHS.
According to court documents, Jalloh met with the CHS on two occasions in April and May 2016. During the April meeting, Jalloh told the CHS that he was a former member of the Virginia Army National Guard, but that he had decided to quit after listening to online lectures by Anwar al-Aulaqi, a deceased leader of Al-Qaeda in the Arabian Peninsula. Jalloh stated that he recently had taken a six-month trip to Africa, where he had met with ISIL members in Nigeria and first began communicating online with the ISIL member who later brokered his introduction to the CHS.
During their meeting, Jalloh also told the CHS that he often thought about conducting an attack and that he knew how to shoot guns. Jalloh praised the gunman who killed five U.S. military members in a terrorist attack in Chattanooga, Tennessee, in July 2015, and stated that he had been thinking about conducting an attack similar to the November 2009 attack at Ft. Hood, Texas.
During the May 2016 meeting, Jalloh asked the CHS about the timeline for an operation and commented that it was better to plan an operation for the month of Ramadan. Jalloh also asked if the CHS could assist him in providing a donation to ISIL. Ultimately, Jalloh provided a prepaid cash transfer of $500 to a contact of the CHS that Jalloh believed was a member of ISIL, but who was in fact an undercover FBI employee.
In June 2016, Jalloh travelled to North Carolina and made multiple unsuccessful attempts to obtain firearms. On July 2, Jalloh went to a gun dealership in northern Virginia, where he purchased and test-fired a Stag Arms assault rifle. Unbeknownst to Jalloh, the rifle was rendered inoperable before he left the dealership with the weapon. Jalloh was arrested the following day and the FBI seized the rifle.
The criminal complaint charges Jalloh with attempting to provide material support and resources to ISIL, a designated foreign terrorist organization. If convicted, Jalloh faces a maximum penalty of 20 years 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; John P. Carlin, Assistant Attorney General for National Security, Paul M. Abbate, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office, made the announcement after Jalloh’s initial appearance. Assistant U.S. Attorney John T. Gibbs is prosecuting the case with the assistance of Trial Attorney Jolie Zimmerman of the National Security Division’s Counterterrorism Section.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-mj-296.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Father, Son Indicted for Accepting Food Stamps for K2 at Independence BusinessesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the father-and-son operators of two Independence, Mo., stores have been indicted by a federal grand jury for distributing synthetic marijuana, also known as K2, and for accepting food stamps as payment for K2.
Haris Nawaz, 23, and his father, Haq Nawaz Choudhry, 51, both of Kansas City, Mo., were charged in an eight-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Thursday, June 30, 2016. That indictment was unsealed and made public following their arrests and initial court appearances on Friday, July 1, 2016. Both Nawaz and Choudhry remain in federal custody pending a detention hearing on Wednesday, July 6, 2016.
Choudhry is the president of H Habib Enterprises, Inc., which owns the Short Stop convenience store and Kerns Liquor, located next door to each other at 9013 E. U.S. 40 Highway in Independence and operated by Nawaz and Choudhry.
The federal indictment alleges that Nawaz and Choudhry participated in a conspiracy to defraud the U.S. Department of Agriculture by accepting EBT cards (used to redeem Supplemental Nutrition Assistance Program – SNAP – benefits, also known as food stamps) in exchange for synthetic marijuana. According to the indictment, Nawaz and Choudhry also allowed customers to use multiple EBT cards belonging to other individuals to buy synthetic marijuana using SNAP benefits.
Among the examples cited in the indictment, Nawaz allegedly sold packages of synthetic marijuana on two separate occasions to a customer who used three separate EBT cards each time. Those transactions were fraudulently processed as food sales, totaling $987 for the first transaction and $1,243 for the second transaction.
Nawaz and Choudhry are also charged with participating in a conspiracy to distribute synthetic marijuana and a money-laundering conspiracy.
In addition to the conspiracy counts, Nawaz is charged with four counts of aiding and abetting Choudhry to commit wire fraud related to the transfer of SNAP benefits. Choudhry is also charged with one count of aiding and abetting Nawaz to commit wire fraud.
The federal indictment also contains a forfeiture allegation, which would require Nawaz and Choudhry to forfeit to the government any property derived from the proceeds of the alleged offenses, including $52,460.
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. Attorney Adam Caine. It was investigated by the U.S. Department of Agriculture, Office of Inspector General and the Independence, Mo., Police Department.
El Salvadoran Sentenced for Re-Entering U.S. after DeportationRead the Press Release
JOHNSTOWN, Pa. - A citizen of El Salvador pleaded guilty in federal court to a charge of re-entry of an illegal alien, and was sentenced thereon to four months in prison and was ordered to be placed in the custody of the Department of Homeland Security, Bureau of Immigration and Customs Enforcement, for deportation, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson accepted the guilty plea to the indictment and imposed the sentence on Walter F. Melgar, 41, of Blair County, Pa.
According to information presented to the court, on Dec. 29, 2015, Melgar, an alien who had been deported from the United States on Dec. 9, 1996, was found in Blair County, Pa. He had unlawfully re-entered this Country without receiving permission from the Secretary of the Department of Homeland Security to do so.
Assistant United States Attorney John J. Valkovci, Jr. prosecuted this case on behalf of the government.
Mr. Hickton commended the Department of Homeland Security/Immigration and Customs Enforcement for the investigation leading to the successful prosecution of Melgar.
Drayer Physical Therapy Institute, LLC Settle False Claims Act Case for $7,000,000Read the Press Release
Contact Person: Jenny Aldrich (803) 929-3000
Columbia, South Carolina ---- Acting United States Attorney Beth Drake announced today that the U.S. Attorney's Office for the District of South Carolina has settled claims of health care fraud with Drayer Physical Therapy Institute, LLC (“Drayer”). Drayer has locations in South Carolina and 14 other states from Pennsylvania to Oklahoma. The United States contended that Drayer submitted claims to Medicare, TRICARE, and Federal Employee Health Benefit Programs for services being provided to multiple patients simultaneously as though the services were being provided by a physical therapist or physical therapist assistant to one patient at a time.
The investigation began with the filing of a whistleblower lawsuit called a qui tams lawsuit under the False Claims Act. The suit was filed by former employees of Drayer. The False Claim Act allows the government to recover actual damages and penalties of three times the actual damages and up to $11,000 per false claim. This settlement was reached based on Drayer’s ability to pay.
The False Claims Act allows individuals to file lawsuits with allegations that fraud has been committed against the federal government on behalf of the government. Whistleblowers, referred to as Relators in the False Claims Act, are entitled to share in any recovery received by the government. In this case, the two relators collectively will receive 24% of the funds of the settlement or $1,680,000 plus they are entitled to attorney fees. The relators performed significant work in the investigation of this case.
Ms. Drake said, “Whistle blower cases are important to the integrity of the health care system. These civil actions - targeted to routing out fraud and abuse - protect tax payers and patients by ensuring that health care decisions are made according to medical science and not based on dollar signs.”
"Health care companies must bill taxpayer-funded health programs honestly," said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services, Office of Inspector General. "Those engaging in deceptive billing practices can expect our aggressive investigation to recover inappropriately obtained funds."
The claims resolved by this settlement are allegations only and there has been no determination of liability.
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If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected].
Dead Man Inc. Gang Member Indicted on Federal Charges for Murdering a Witness in a Baltimore City CaseRead the Press Release
Baltimore, Maryland – A federal grand jury indicted Troy Allen Lucas a/k/a “Troy Madron,” age 47, of Baltimore, Maryland on charges arising from a murder-for-hire of Robert Long, who was a cooperating witness in a case pending in the Circuit Court for Baltimore City. The indictment was returned on June 7, 2016, and unsealed today upon the arrest of the defendant.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Colonel Woodrow Jones, Chief of the Maryland Transportation Authority Police; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
“This investigation has resulted in several convictions and the exoneration of an innocent man who was wrongly convicted and sentenced to life in state prison,” said U.S. Attorney Rod J. Rosenstein.
According to the three count indictment, Lucas was a member of "Dead Man Inc." (DMI), a criminal street and prison gang. Robert Long worked for Jose Morales and was a co-defendant with Morales in criminal cases pending in Baltimore.
The indictment charges that Morales solicited Lucas and others to kill Robert Long in order to retaliate for Long’s cooperation with the police and to prevent Long from testifying against Morales. Lucas accepted payment from Morales for agreeing to kill Long. Lucas and Morales used cell phones to contact one another regarding Long’s cooperation and whereabouts, and to contact Long.
On March 24, 2008, in an open area behind Traci Atkins Park in southwest Baltimore, Long was shot twice in the head and died. The indictment charges that from March 23 to 24, 2008, Lucas used, carried and discharged a .25 caliber handgun, causing Long’s murder.
Lucas faces a maximum sentence of life in prison for murder-for-hire conspiracy, use of interstate commerce facilities in the commission of murder-for-hire and use of a firearm during a crime of violence resulting in death. Lucas had his initial appearance today in U.S. District Court in Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Jose Joaquin Morales, age 40, of Baltimore, Maryland, was convicted at trial by a federal jury for using a cell phone to arrange the murder-for-hire of Robert Long, and was sentenced to life in prison on December 9, 2013.
The prosecution of Morales resulted in the exoneration of Demetrius Smith, who was serving life in state prison for the murder -- a crime he did not commit.
United States Attorney Rod J. Rosenstein commended the DEA, Maryland Transportation Authority Police and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Sandra Wilkinson and Martin Clarke, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Cleveland man pleads guilty to heroin distributionRead the Press Release
WHEELING, WEST VIRGINIA – John Johnson, Jr., 39, of Cleveland, Ohio, pled guilty to heroin distribution in federal court in Wheeling today, United States Attorney William J. Ihlenfeld, II, announced.
Johnson pled guilty to one count of “Distribution of Heroin.” He admitted to selling heroin in Ohio County during October 2015. He faces up to twenty years in prison and a fine up to $1,000,000.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Danaë DeMasi-Lemon prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Bronx Tax Preparer Pleads Guilty to 13 Counts of Preparing and Filing False and Fraudulent Tax ReturnsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Shantelle P. Kitchen, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation (“IRS-CI”), announced that CHRISTOPHER AHERN pled guilty today to a 13-count Information, charging him with preparing false and fraudulent income tax returns for his clients. According to the Information, AHERN filed tax returns that fraudulently claimed more than $4.7 million in credits and expenses. AHERN pled guilty today before United States District Judge Deborah A. Batts.
Manhattan U.S. Attorney Preet Bharara said: “By repeatedly filing fraudulent tax returns for his clients, Christopher Ahern committed federal crimes and deprived the government of close to $5 million in taxes. We remain committed to charging and convicting those who commit and facilitate tax fraud.”
IRS-CI Special Agent in Charge Shantelle P. Kitchen said: “Unscrupulous income tax return preparers hurt not only their clients, who are ultimately responsible for what is reported on their tax returns, but all law-abiding taxpayers, who have to shoulder an additional burden. Accordingly, the investigation of unscrupulous preparers remains one of the top priorities for IRS-Criminal Investigation. Today, Mr. Ahern is held accountable for his egregious practices.”
According to the allegations in the Information to which AHERN pled guilty, and statements made during his plea proceedings:
AHERN owned and operated a tax preparation business called Get My Refund Fast, located in the Bronx, New York. From 2012 through 2013, AHERN’s business prepared, and submitted to the IRS, nearly 5,000 tax returns. These tax returns were false and fraudulent in that they claimed education credits to which the clients were not entitled. AHERN received more than $1.5 million in fees from his clients for preparing and filing the fraudulent returns.
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AHERN, 40, of Little Neck, New York, pled guilty to 13 counts of making and presenting false, fictitious, and fraudulent claims to the United States, each of which carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
AHERN is scheduled to be sentenced on November 1, 2016, at 11:00 a.m., before Judge Batts.
Mr. Bharara praised the investigative work of IRS-CI.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Shawn G. Crowley is in charge of prosecution.
Bourbon Man Sentenced for Meth ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Bourbon, Mo., man who was a federal fugitive for more than a year, was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine.
Lucas John Haslag, 31, of Bourbon, was sentenced by U.S. District Judge Stephen R. Bough to 10 years in federal prison without parole.
On Jan. 21, 2016, Haslag pleaded guilty to participating in a conspiracy to distribute methamphetamine between June 19, 2014, and Nov. 21, 2015. Haslag admitted that he is responsible for the distribution of approximately five pounds (2.265 kilograms) of methamphetamine.
Haslag was indicted by a federal grand jury in Jefferson City in June 2014 after law enforcement officers conducted a car stop and found a pound of methamphetamine, a Derringer pistol and a drug ledger in the vehicle he was driving in Freeburg, Mo.
He was a fugitive from justice, but in October 2015 federal agents obtained information about Haslag’s actions and whereabouts. This investigation led to the execution of a search warrant at the Bourbon residence shared by Haslag on Nov. 9, 2015. Law enforcement officers discovered two pounds of methamphetamine, six rifles, a shotgun, three handguns and $22,661 in a safe in Haslag’s residence. Haslag was arrested on Nov. 23, 2015.
This case was prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Drug Enforcement Administration, the Jefferson City, Mo., Police Department, the Missouri State Highway Patrol, the U.S. Marshal’s Service, MUSTANG (the Mid-Missouri Unified Strike Team And Narcotics Group), the Lake Area Narcotics Enforcement Group (LANEG) and the St. Charles County Regional Drug Task Force.
Anchorage Man Sentenced to 162 Months in Prison for Distributing MethamphetamineRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Anchorage resident Antonio D. Washington, 56, was sentenced today in U.S. District Court in Anchorage to 162 months in federal prison for his conviction for distributing methamphetamine.
Washington was indicted by a federal grand jury in December 2015 for distributing methamphetamine on four different occasions in 2015. Washington pled guilty to one count of the indictment in March 2016, and faced a mandatory minimum sentence of 120 months (10 years) due to the amount of methamphetamine he distributed.
In sentencing Washington to 162 months, U.S. District Judge Sharon L. Gleason cited Washington’s long criminal history – with much of it involving crimes of violence – as the primary reason for the lengthy sentence. Judge Gleason stated that the need to protect the public from further crimes by Washington justified the sentence of 162 months.
The Federal Bureau of Investigation Safe Streets Task Force conducted the investigation leading to the indictment and conviction in this case.
$200,000 Community Service Payment for Hawaii Reef Projects ReceivedRead the Press Release
HONOLULU -- United States Attorney Florence T. Nakakuni (center in attached picture); Rear Adm. Vincent Atkins, Commander, Fourteenth Coast Guard District (far left); Resident Agent-in-Charge Donna Kahakui of the Environmental Protection Agency’s (EPA) criminal enforcement program (second from right), and Special Agent Eric Goldberg of the Coast Guard Investigative Service (far right) delivered a $200,000 check to Scott Hall, Director of Seabird Conservation with the National Fish and Wildlife Foundation (holding check), representing the community service payment of Doorae Shipping Co., LTD, on Friday, July 1 at the U.S. Attorney’s Office. The payment was part of the sentence Doorae received after pleading guilty in April 2016 to failing to maintain an accurate oil record book, in violation of the Act to Prevent Pollution from Ships, and making false statements to the U.S. Coast Guard concerning the discharge of oil contaminated bilge water.
According to court documents, the operation of a marine vessel, such as the B. Sky, an oil tanker ship flagged out of Vanuatu and operated by Doorae, generates large quantities of waste oil and oil-contaminated waste water. International and U.S. law requires that these vessels use pollution prevention equipment to preclude the discharge of these materials. Should any overboard discharges occur, they must be recorded in an oil record book, a log that is inspected by the U.S. Coast Guard. Information produced to the court established that instead of running bilge water through an oil water separator, the B. Sky discharged over 500 gallons of oily machinery space bilge water directly into the ocean and failed to record the discharge in their oil record book as required by law.
United States District Judge Leslie E. Kobayashi approved the payment of the $200,000 community service payment, per an agreement between the government and Doorae, to be donated to the National Fish and Wildlife Service Foundation to fund projects that preserve and enhance coral reefs and reef ecosystems in Hawaii. Judge Kobayashi also imposed a $750,000 fine on Doorae as part of the sentence.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said "Community service can be a means through which a corporate defendant addresses the results of its criminal activity. This payment represents a significant community service contribution as part of the sentence in this case."
"Maritime pollution is a serious threat to the health of the world's oceans. Annually, Coast Guard pollution investigators respond to 210 cases here in the Hawaiian Islands, diligently striving to help keep our waters pristine and healthy," said Rear Adm. Atkins. "In this case, Coast Guard and EPA investigators built a strong case package against a blatant polluter, helping the U.S. Attorney's Office successfully prosecute this case. Importantly, the nearly $1 million paid by Doorae included $200,000 for environmental restoration in our waters."
The case was investigated by U.S. Coast Guard Sector Honolulu, the U.S. Coast Guard Investigative Service and the EPA. The case was prosecuted by Assistant U.S. Attorney Ken Sorenson.
2 July 2016
Washington Man Sentenced to 210 Months for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that an Ephrata, Washington, man convicted of Conspiracy to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person was sentenced on June 17, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Martin Purdom, age 53, was sentenced to 210 months in custody on Count 1, and 24 months on Count 2, to run concurrently, followed by 5 years of supervised release on Count 1, and 3 years on Count 2, to run concurrently, and a $200 special assessment to the Federal Crime Victims Fund.
Purdom was indicted for Conspiracy to Distribute Methamphetamine and Possession of a Firearm by a Prohibited Person by a federal grand jury on April 8, 2015. He pleaded guilty on October 30, 2015.
From July 2014 through April 2015, Purdom conspired with others to distribute and distributed more than 500 grams of methamphetamine within South Dakota. Furthermore, on March 19, 2015, Purdom was in possession of a Ruger pistol, and was previously convicted of a felony offense in Washington in 2002.
This case was investigated by Unified Narcotics Enforcement Team, United States Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, South Dakota Division of Criminal Investigation, Pennington County Sheriff’s Office, and the Rapid City Police Department. Assistant U.S. Attorneys Ted L. McBride and Kathryn N. Rich prosecuted the case.
Purdom was immediately turned over to the custody of the U.S. Marshals Service.
McLaughlin Man Charged with Assault with a Dangerous WeaponRead the Press Release
United States Attorney Randolph J. Seiler announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon.
Sinjin Cameron, age 23, was indicted on June 14, 2016. He appeared before U.S. Magistrate Judge William D. Gerdes on June 28, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about May 26, 2016, Cameron unlawfully assaulted an adult male with shod feet, with the intent to do bodily harm to him.
The charge is merely an accusation and Cameron is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Cameron was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
La Plant Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a La Plant, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Elliot Little Bear, age 52, was indicted on June 14, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 29, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between July 1, 2011, and June 14, 2016, Little Bear, a person required to register under the Sex Offender Registration and Notification Act, failed to register and update his registration.
The charge is merely an accusation and Little Bear is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jay P. Miller is prosecuting the case.
Little Bear was remanded to the custody of the U.S. Marshals Service pending trial. Trial has been set for August 16, 2016.
Guatemalan Citizen Convicted of Third Illegal Entry into United StatesRead the Press Release
SYRACUSE, NEW YORK – Otilio Sales-Gomes, 34, of Guatemala, pled guilty yesterday in United States District Court in Syracuse to one felony count of illegally reentering the United States after having been previously deported following a felony conviction, announced United States Attorney Richard S. Hartunian and Michael T. Phillips, Field Office Director, U.S. Department of Homeland Security, Immigrations and Customs Enforcement, Enforcement and Removal Operations—Buffalo Field Office.
Sales-Gomes admitted in federal court that he returned to the United States approximately one year ago and was most recently living and working illegally in Oriskany, New York. Sales-Gomes came to the attention of law enforcement after he was arrested in Oneida County earlier this year for endangering the welfare of a child. As part of his guilty plea in federal court, Sales-Gomes also admitted that he was first removed from the United States in September 2005, and later returned here illegally. Nearly two years later, in June 2007, Sales-Gomes was convicted in the United States District Court for the District of New Mexico of one felony count of reentry after removal, after which he was deported a second time.
Sales-Gomes will be sentenced on November 2, 2016, by Chief United States District Judge Glenn T. Suddaby. The felony charge to which Sales-Gomes pled guilty carries a maximum sentence of up to 10 years in prison and a fine of up to $250,000. Following his completion of any prison sentence, Sales-Gomes will be subject to removal proceedings for the third time. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the U.S. Department of Homeland Security, Immigrations and Customs Enforcement, Enforcement and Removal Operations, and it is being prosecuted by Assistant U.S. Attorney Michael F. Perry.
Faith Man Charged with Conspiracy to Distribute Methamphetamine and Possession of FirearmRead the Press Release
United States Attorney Randolph J. Seiler announced that a Faith, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person.
Roy Eugene Antrim, age 39, was indicted on June 14, 2016. He appeared before U.S. Magistrate Mark A. Moreno on June 24, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $1,000,000 fine, 3 years and up to life of supervised release, $100 to the Federal Crime Victims Fund, and the potential forfeiture of firearms and U.S. currency seized as part of the investigation. Restitution may also be ordered.
The Indictment alleges that between September 1, 2015, and June 14, 2016, Antrim conspired and agreed with other persons to knowingly and intentionally distribute and possess with intent to distribute methamphetamine in South Dakota. The Indictment also alleges that on or about April 14, 2016, at Faith, Antrim possessed 13 firearms, including rifles, handguns, and a shotgun, even though he was prohibited from doing so because he was an unlawful user of and addicted to a controlled substance. The Indictment further alleges that on or about April 21, 2016, at Eagle Butte, Antrim possessed a handgun, even though he was prohibited from doing so because he was an unlawful user of and addicted to a controlled substance.
The charges are merely an accusation and Antrim is presumed innocent until and unless proven guilty.
The investigation is being conducted by the South Dakota Highway Patrol, the South Dakota Division of Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Antrim was released pending trial, which has been set for August 16, 2016.
Box Elder Man Indicted for Illegal Possession of a FirearmRead the Press Release
United States Attorney Randolph J. Seiler announced that a Box Elder, South Dakota, man has been indicted by a federal grand jury for Possession of a Firearm by a Prohibited Person and Possession and Sale of a Stolen Firearm.
Daniel Joseph Newingham, age 41, was indicted on June 21, 2016. He appeared before U.S. Magistrate Judge Daneta Wollmann on June 27, 2016, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is ten years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Newingham illegally possessing a Glock 9mm pistol at Rapid City. The charges are merely an accusation and Newingham is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, & Explosives, the Pennington County Sheriff’s Office, and the Unified Narcotics Enforcement Team. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Newingham was remanded to the custody of the U.S. Marshals Service pending trial.
1 July 2016
Wichita Bookkeeper Pleads Guilty to Embezzling $247,000Read the Press Release
WICHITA, KAN. - A former bookkeeper pleaded guilty Friday to embezzling $247,000 from a Wichita steel company where she worked, Acting U.S. Attorney Tom Beall said.
Cynthia K. Griffith, 58, Wichita, Kan., pleaded guilty to one count of bank fraud. In her plea, she admitted she stole the money from Griffith Steel Erection of Wichita where she worked. She wrote unauthorized checks on the company’s operating account.
Sentencing is set for Sept. 21. She faces a penalty of up to 30 years in federal prison and a fine up to $1 million. Beall commended the Wichita Police Department and Assistant U.S. Attorney Aaron Smith for their work on the case.