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30 June 2016
Vineland, New Jersey, Man Admits Conspiracy, and Fraud and False StatementsRead the Press Release
CAMDEN, N.J. – A Vineland, New Jersey, man today admitted his role in a scheme to defraud a bank and to filing fraudulent tax returns, U.S. Attorney Paul J. Fishman announced.
Richard T. Pepe, 69, pleaded guilty before Chief U.S. District Judge Jerome B. Simandle in Camden federal court to a superseding information charging him with one count of conspiracy to commit bank fraud and one count of fraud and false Statements on his 2008 U.S. Individual Income Tax Return.
According to documents filed in this case and statements made in court:
From 2004 through October 2008 Pepe knowingly conspired and agreed with others to execute a scheme to defraud M&T Bank. The object of the conspiracy was for Pepe, the general manager of Chevrolet 73, and others acting on Pepe’s behalf, to fraudulently obtain money from M&T Bank, intended as floor plan financing for Chevrolet 73, by providing false information to the bank. Pepe then converted that money – $2.95 million – to his own use to pay for personal expenses for himself and his family members.
Pepe also admitted he made false statements on his 2008 U.S. Individual Income Tax Return by claiming his total income for tax year 2008 to be $36,628, when he knew and believed his total income to be in excess of that amount.
The conspiracy charge to which Pepe pleaded guilty carries a maximum potential penalty of five years in prison and a fine of $250,000. The fraud and false statement charge to which Pepe pleaded guilty carries a maximum potential penalty of three years in prison and a fine of $250,000. As part of the plea agreement, Pepe will make full restitution for all losses and consented to the entry of a forfeiture money judgment of $2.95 million. Sentencing is scheduled for Oct. 14, 2016.
U.S. Attorney Fishman credited special agents of the FBI Philadelphia Division’s Cherry Hill Resident Agency, under the direction of Special Agent in Charge William F. Sweeney Jr., and special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jacqueline M. Carle of the U.S. Attorney's Office Criminal Division in Camden.
Defense counsel: Thomas Young Esq. Assistant Federal Public Defender, Camden
Valparaiso Man Sentenced to 50 Years on Child Pornography ChargesRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David A. Capp, announced that Brian Reider, 55, of Valparaiso, Indiana was sentenced before Senior District Court Judge James T. Moody for one count of production of child pornography and one count of distribution of child pornography.
Reider was sentenced to 600 months (50 years) imprisonment followed by 20 years of supervised release and ordered to pay $3000 in restitution to victim “John Doe”.
Reider's sentence follows his guilty plea to knowingly producing sexually explicit depictions of then-12-year-old John Doe on or about September 13, 2009 and knowingly distributing child pornography on or about September 17, 2010.
According to documents filed in the case, Reider met 12 year-old John Doe at a BMX bike park in Illinois and communicated with the boy via the social networking site “My Space.” Reider provided the boy with parts for his BMX bicycle and asked the boy to allow Reider to take sexually explicit photographs in exchange. Numerous sexually explicit photographs and a video of John Doe were created in a wooded area near the Illinois bike park and transported by Reider back to his Indiana home where they were later found by law enforcement saved to Reider's computer.
Further investigation revealed that Reider was also trading child pornography online via a peer-to-peer file sharing program and had amassed a collection of over 20,000 images and 4,400 videos depicting minors engaging in sexually explicit conduct.
Also found on Reider's computer were numerous sexually explicit photographs and videos taken in Defendant's residence of at least three other unidentified minor male victims in addition to John Doe.
This case was the result of an investigation by the Federal Bureau of Investigation with the assistance of the Highland, Indiana Police Department through a Child Sexual Predator Program Grant; the Kokomo, Indiana Police Department; and the DuPage County, Illinois States Attorney’s Office. This case was handled by Assistant United States Attorney Jill R. Koster.
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Vallejo Man Indicted on Firearms ChargesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Gregory M. Cox, 51, of Vallejo, charging him with being a felon in possession of a firearm, unlawful possession of a short-barrel shotgun, and unlawful possession of a short-barrel rifle, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, on June 2, 2016, Cox, a convicted felon, was found in possession of a Norinco Model 99 12-gauge shotgun, a Savage Arms Stevens Model 940E 12-gauge shotgun with a shortened 13-inch barrel, and a Surplus Ammo and Arms Model LOW15 .223-caliber M4 assault rifle, with a shortened 10-inch barrel and a flash suppressor.
This case is the product of an investigation by the Federal Bureau of Investigation and the Vallejo Police Department. Assistant United States Attorney Ross K. Naughton is prosecuting the case.
If convicted, Cox faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is a product of the FBI Safe Streets Task Force initiative.
University of Missouri-Columbia Agrees to Pay United States $2.2 Million to Settle Alleged False Claims Act ViolationsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the University of Missouri-Columbia has agreed to pay the United States $2.2 million to settle allegations that it violated the False Claims Act by submitting claims for radiology services to federal programs such as Medicare, Medicaid, and TRICARE. The United States alleged that certain attending physicians certified that they had reviewed the images associated with interpretative reports prepared by resident physicians when, in fact, they had not reviewed those images.
“Hospitals and physicians have the highest obligation to both protect patients by complying with the standard of care and to protect taxpayers by complying with the rules for billing federal programs. This lengthy investigation by multiple agencies working together has produced a just result for both patients and taxpayers,” said United States Attorney Dickinson.
Steve Hanson, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General, Kansas City Regional Office, stated, “Our office will continue to work with our law enforcement partners to ensure that qualified medical professionals are reviewing radiology exams such x-rays, MRIs, CT scans, ultrasounds, etc., to accurately diagnose our beneficiaries’ medical conditions.”
"The Defense Criminal Investigative Service is committed to working with our partner agencies to combat fraud impacting the Department of Defense's vital programs, operations and resources. The victims of this kind of fraud are real people and it impacts those who have served our country the most," said Brian J. Reihms, Special Agent in Charge, Defense Criminal
Investigative Service (DCIS).
A federal investigation commenced in 2011 and led to an internal investigation by the university. The university determined that two attending radiologists, Dr. Kenneth Rall and Dr. Michael Richards, violated Medicare and hospital rules when they certified certain interpretive reports prepared by resident physicians. Medicare will pay claims for resident physicians to interpret radiological images but only if an attending radiologist also reviews the image and provides any necessary input to the interpretive report. Rall and Richards left the employment of the university in June 2012. The university cooperated throughout the lengthy investigation. In addition to this False Claims Act settlement, the university also entered into a Corporate Integrity Agreement with HHS-OIG.
The case, United States ex rel. Galuten v. University of Missouri-Columbia, et al., Case No. 11-cv-04140-FJG (W.D. Mo.), was handled by the U.S. Attorney’s Office for the Western District of Missouri, HHS-OIG, and DCIS. The claims settled by this agreement are allegations only, and there has been no determination of liability.
This case was prosecuted by Assistant U.S. Attorney Cindi Woolery. It was investigated by HHS-OIG and DCIS
Union County, New Jersey, Man Sentenced to 70 Months in Prison for Role in Illegal International Procurement NetworkRead the Press Release
NEWARK, N.J. – A Mountainside, New Jersey, man was sentenced today to 70 months in prison for his role in an international procurement network that obtained and smuggled more than $65 million worth of electronics from the United States to Russia in violation of export control laws, U.S. Attorney Paul J. Fishman announced.
Alexander Brazhnikov Jr., 37, a naturalized United States citizen born in Moscow, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of conspiracy to commit money laundering, one count of conspiracy to smuggle electronics from the United States, and one count of conspiracy to violate the International Emergency Economic Powers Act (IEEPA). Brazhnikov also agreed to the entry of a forfeiture money judgment against him in the amount of $65 million. Judge Martini imposed the sentence today in Newark federal court.
“Brazhnikov was responsible for nearly 2,000 illegal shipments of regulated, sensitive electronics components, many of which wound up in the hands of Russian military and security forces,” U.S. Attorney Fishman said. “He also admitted going to extraordinary lengths to conceal the nature and destination of the shipments, as well to hide the tens of millions of dollars in illegal proceeds generated by the scheme. The sentence imposed on him today reflects the seriousness of his crimes.”
Brazhnikov Jr. was arrested at his home on June 26, 2014, following a joint investigation by the FBI, the U.S. Department of Commerce (DOC), and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). From January 2008 through June 2014, he was the owner, chief executive officer, and principal operator of four New Jersey microelectronics export companies, each of which were used in the various conspiracies uncovered by the investigation. Following his arrest, special agents seized $4,075,237 in proceeds related to the charged offenses, as well as real property and other assets valued at more than $600,000.
“Today's sentencing represents a collaborative effort among law enforcement agencies,” Jonathan Carson, Special Agent in Charge of the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office, said. “I commend our colleagues at the FBI and Homeland Security Investigations for their efforts. The Office of Export Enforcement will continue to pursue violators of our export control laws by leveraging our unique authorities to protect national security.”
“HSI will continue to use all the resources at its disposal to prevent sensitive and restricted technology from being exported illegally,” Special Agent in Charge Terence S. Opiola, HSI, Newark, said. “HSI as the principal enforcer of export controls will continue to ensure that sensitive technology doesn’t fall into the wrong hands.”
According to documents filed in this case and statements made in court:
Brazhnikov Jr. and his companies are part of a sophisticated procurement network that has surreptitiously acquired large quantities of license-controlled electronic components from American manufacturers and vendors and exported those items to Russia on behalf of Russian business entities that were authorized to supply them to the Ministry of Defense of the Russian Federation, the Federal Security Service of the Russian Federation (the FSB), and Russian entities involved in the design of nuclear warheads, weapons, and tactical platforms.
The defendant conspired with his father, Alexander Brazhnikov Sr., owner of a Moscow-based procurement firm whose agents helped initiate the purchase of electronics components from United States vendors and manufacturers on behalf of the conspirators’ clients in Russia. Brazhnikov Jr. finalized the purchase and acquisition of the requested components from the various distributors, then repackaged and shipped them to Moscow. He routinely falsified the true identity of the end-user of the components and the true value of the components in order to avoid filling out required export control forms. Brazhnikov Jr. purposefully concealed the true destination of the parts that were exported by directing that the shipments be sent to various “shell” addresses in Russia – some of which have been identified as vacant storefronts and apartments – which were established and controlled by the Moscow-based network. All shipments initially directed to the shell addresses were redirected to a central warehouse controlled by the conspirators’ Moscow-based network.
The funds for the network’s illicit transactions were obtained from the various Russian purchases and initially deposited into one of the conspirators’ primary Russia-based accounts. Disbursements for purchases were made from that primary Russian account through one or more foreign accounts held by shell corporations in the British Virgin Islands, Latvia, Marshall Islands, Panama, Ireland, England, United Arab Emirates, and Belize, and ultimately into one of the defendant’s U.S.-based accounts. The network’s creation and use of dozens of bank accounts and shell companies abroad was intended to conceal the true sources of funds in Russia, as well as the identities of the various Russian defense contracting firms receiving U.S. electronics components.
In addition to the prison term and forfeiture, Judge Martini sentenced Brazhnikov to three years of supervised release and fined him $75,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the U.S. Department of Commerce, under the direction of Special Agent in Charge Carson, New York Field Office; and special agents of HSI, under the direction of Special Agent in Charge Opiola, with the investigation leading to today’s sentencing. He also thanked officers from the Union County Police Department, under the direction of Captain Chris Debbie; and officers of the Mountainside Police Department, under the direction of Police Chief Allan Attanasio, for their important contributions to the investigation. The U.S. Justice Department’s Office of International Affairs provided assistance with this case.
The government is represented by Assistant U.S. Attorneys Dennis C. Carletta of the U.S. Attorney’s Office National Security Unit, and Peter Gaeta of the office’s Asset Forfeiture and Money Laundering Unit in Newark.
Defense counsel: Jack Arseneault Esq., Chatham, New Jersey
U.S. Attorney's Office Files Federal Charges Against 16 Individuals for Fraudulent Receipt of Travel Reimbursement Benefits from U.S. Department of Veterans AffairsRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Jill Westmoreland Rose announced today that in the month of June the U.S. Attorney’s Office in Asheville has filed federal charges against 16 individuals that defrauded the U.S. Department of Veterans Affairs (the VA) by submitting fraudulent travel vouchers for reimbursement.
Kim Lampkins, Special Agent in Charge of the Mid-Atlantic Field Office, Washington, D.C., of the U.S. Department of Veterans Affairs, Office of Inspector General (VA-OIG), joins U.S. Attorney Rose in making today’s announcement.
According to allegations contained in filed court documents, the Charles George Veterans Affairs Medical Center (VAMC), located in Asheville, is operated by the VA and provides services for veterans of the United States military. Under certain circumstances, veterans with service-connected disabilities are reimbursed for travel expenses on mileage they incur when traveling to and from their residence and the VAMC. In order to claim mileage reimbursement, eligible veterans must go to the Travel Benefits Office at the VAMC and provide information about the distance traveled. The veterans then obtain a voucher which they submit to the Agent Cashier to receive reimbursement for their travel.
The charging documents allege that the defendants submitted fraudulent travel vouchers that overstated the distance they traveled for medical appointments or to receive medical treatment. The VA reimbursed the defendants for their travel expenses based on mileage information on the fraudulent vouchers. A total of 16 individuals have been charged separately in connection with travel voucher fraud.
A federal grand jury returned federal indictments on June 7, 2016, against three individuals, charging each defendant separately with one count of making a false claim for travel benefits from the VA, for allegedly submitting multiple fraudulent travel vouchers over a period of months or years. The charge levies a maximum penalty of five years in prison and a $250,000 fine. The three indicted are:
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Arlan M. Land, 53, of Nolanville, TX, was indicted for allegedly obtaining from the VA approximately $18,839.10 in fraudulent claims.(Docket no. 1:16-cr-72)
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David B. Wright, 56, of Asheville, is facing federal charges for allegedly obtaining approximately $15,391.52 from the VA. (Docket no. 1:16-cr-73)
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Pamela L. Smith, 55, of Asheville, has been indicted for allegedly defrauding the VA of approximately $5,318.96. (Docket no. 1:16-cr-71)
Criminal bills of information have also been filed against 13 defendants. They are each charged with one count of stealing money from the VA, a charge that levies a potential maximum prison term of one year and a $100,000 fine. The loss amount associated with each case is less than $5,000. Those charged are:
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Harris Hamilton, 60, of Chesnee, S.C., is charged for allegedly obtaining from the VA approximately $2,662 in fraudulent claims. (Docket no. 1:16-mj-72)
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Marcus McEachin, 45, of Asheville, is charged for allegedly obtaining from the VA approximately $4,029 in fraudulent claims. (Docket no. 1:16-mj-73)
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Michael Tate, 55, of Asheville, is charged for allegedly obtaining from the VA approximately $2,919 in fraudulent claims. (Docket no. 1:16-mj-74)
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Christopher Miller, 52, of Spartanburg, S.C., is charged for allegedly obtaining from the VA approximately $3,411 in fraudulent claims. (Docket no. 1:16-mj-75)
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Tommie Borders, 62, of Asheville, is charged for allegedly obtaining from the VA approximately $1,426 in fraudulent claims. (Docket no. 1:16-mj-76)
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Ruben Dixon, 59, of Lenoir, N.C., is charged for allegedly obtaining from the VA approximately $1,234 in fraudulent claims. (Docket no. 1:16-mj-77)
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Jeffrey Franklin, 58, of Asheville, is charged for allegedly obtaining from the VA approximately $3,486 in fraudulent claims. (Docket no. 1:16-mj-78)
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Violet McKinney, 53, of Asheville, is charged for allegedly obtaining from the VA approximately $4,737 in fraudulent claims. (Docket no. 1:16-mj-79)
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Guy Stivender, 57, of Asheville, is charged for allegedly obtaining from the VA approximately $1,534 in fraudulent claims. (Docket no. 1:16-mj-80)
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TC Littlejohn, 56, of Asheville, is charged for allegedly obtaining from the VA approximately $1,514 in fraudulent claims. (Docket no. 1:16-mj-83)
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Kevin Simms of Asheville, is charged for allegedly obtaining from the VA approximately $ 4,348 in fraudulent claims. (Docket no. 1:16-mj-84)
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Marshall Dukes, 61, of Asheville, is charged for allegedly obtaining from the VA approximately $3,780 in fraudulent claims. (Docket no. 1:16-mj-85)
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Kenneth Pickens, 47, of Asheville, is charged for allegedly obtaining from the VA approximately $2,480 in fraudulent claims. (Docket no. 1:16-mj-86)
“The travel reimbursement program exists to ease the financial burden on military veterans seeking medical treatment and access to good medical care. The system relies upon veterans to submit honest and accurate forms, reflecting actual travel expenses. Unfortunately, these 16 individuals allegedly decided to lie and make some extra cash by padding their travel vouchers. We simply cannot allow this type of fraud, waste and abuse to go on and we will prosecute anyone who steals money from a program put in place to provide much-needed assistance to our country’s veterans,” said U.S. Attorney Rose.
The charges contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement U.S. Attorney Rose thanked the VA-OIG and the Veterans Affairs Police Department for their investigation of the cases. Assistant U.S. Attorney Richard Edwards of the U.S. Attorney’s Office in Asheville is in charge of the prosecution.
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Tennessee man sentenced to nearly 20 years in prison for sexually exploiting 14-year-oldRead the Press Release
A Tennessee man was sentenced to nearly 20 years in prison for traveling to Ohio to sexually exploit a 14-year-old, said Carole S. Rendon, Acting United States Attorney for the Northern District of Ohio.
David K. Turner, 24, of Knoxville, Tennessee, was sentenced to 238 months of prison after previously pleading guilty to a four-count indictment that charged him with sexually exploiting a minor, distributing a visual depiction of a minor engaged in sexually explicit conduct, coercing and enticing a minor, and traveling with the intent to engage in illicit sexual conduct.
“All forms of child exploitation are deeply troubling, and this case illustrated how quickly online child exploitation can lead to sexual exploitation said Acting United States Attorney Carole S. Rendon. “Mr. Turner coerced a girl that he knew was only 14 to perform sex acts on camera and then planned to take her across the country in the hope of further exploiting her. We commend the Canton and Massillon Police Departments and the FBI Canton Resident Agency in pursuing justice for the victim and her family."
The case was prosecuted by Assistant U.S. Attorney Brian M. McDonough following an investigation by the Canton and Massillon Police Departments and the FBI Canton Resident Agency.
Stafford Man Pleads Guilty to Attempting to Arrange Sex with a MinorRead the Press Release
ALEXANDRIA, Va. – Justin Frank Clark, 28, formerly of Stafford, pleaded guilty yesterday to attempting to coerce and entice a minor.
According to court documents, from April through May, Clark responded to an online ad posted by an undercover agent, claiming to advertise a ten-year-old girl for sex. Through a series of emails and messages, Clark arranged to travel from Stafford to Washington, D.C., to have sex with the minor. While arranging the meeting, Clark also sent multiple videos containing child pornography to the undercover agent.
Clark faces a mandatory minimum of ten years and a maximum penalty of life in prison when he is sentenced on September 16. 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; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and David P. Decatur, Stafford County Sheriff, made the announcement after the plea was accepted by U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Whitney Dougherty Russell is prosecuting the case.
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-cr-157.
Six Mexican Nationals Indicted in Fraudulent Identification Document ConspiracyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a 16-count indictment today charging six Mexican nationals with conspiracy, transferring false identification documents, possessing document-making implements, and fraud and misuse of alien registration receipt cards, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, between June 2015 and June 17, 2016, Angelica Moreno-Velasquez, 31; Maria Victoria Perez‑Vasquez, 30; Francisco Javier Hidalgo-Flores, 25; Lizet Amairani Ramirez-Zazueta, 26, and Veronica Rosales-Capitaine, 49, all of Fresno, and Fidel Vasquez-Velasquez, 22, of Madera, conspired to possess, transfer, and sell false U.S. social security cards and alien registration cards in Fresno and Madera County. The defendants are scheduled to be arraigned at 2:00 pm today before U.S. Magistrate Judge Stanley A. Boone.
According to court documents, Vasquez-Velasquez, Hidalgo-Flores and Rosales‑Capitaine manufactured fraudulent identification documents, including social security cards and alien registration receipt cards. Vasquez-Velasquez, Hidalgo-Flores and Perez-Vasquez took orders, photographs and biographical information from customers, and delivered the completed fraudulent identification documents to the customers, charging between $80 and $150 for one set. Moreno-Velasquez and Ramirez-Zazueta also delivered fraudulent identification documents to customers and other co-conspirators.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Christopher D. Baker is prosecuting the case.
If convicted, the maximum statutory penalty for transferring false identification documents or possessing document-making implements is 15 years in prison and a $250,000 fine; the maximum statutory penalty for fraud and misuse of alien registration receipt cards is 10 years in prison and a $250,000 fine, and the maximum statutory penalty for the conspiracy charge is five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
SRA International Inc. and Galaxy Scientific Corp. to Pay $1.1 Million to Resolve Alleged False Claims Related to Military ContractsRead the Press Release
NEWARK, N.J. – SRA International Inc. and Galaxy Scientific Corp. will pay more than $1.1 million to resolve civil claims relating to a scheme to bill for, and capture, unlawful profits on certain military contracts, U.S. Attorney Paul J. Fishman of the District of New Jersey announced today.
In the civil settlement, SRA International Inc. (SRA), Galaxy Scientific Corp. (GSC), Galaxy Technology LLC (GTech), and Engineering Integrated Services L.L.C. (EIS), agreed to pay $1,105,087 plus accrued interest to the federal government to resolve allegations under the False Claims Act. The United States alleged that in 2004 and 2005 GSC used shell affiliates to improperly induce the Government to fund and award task orders, disguise actual costs, misrepresent what work was actually performed, and capture unlawful profit.
With respect to a task order involving the use of image and audio compression technology over low-bandwidth networks (Task Order 29 under the Communications-Electronics Life Cycle Management Command’s [CECOM’s] Rapid Response Contract No. DAAB07-03-D-B011), the United States alleged that GSC, a company whose majority shareholder and CEO was Dr. James Yoh, created a shell affiliate, GTech, a company wholly owned by Dr. Yoh, which it used to disguise actual costs, misrepresent what work was actually performed, and capture unlawful profit.
In another task order involving communications in the Kuwait-Iraq theater of operations (Task Order Y601 of the same contract above), the United States alleged that GSC created another shell affiliate, EIS, again owned and controlled by Dr. Yoh, to improperly induce the government to fund and award the task order, disguise actual costs and capture unlawful profit.
The civil settlement resolves a False Claims Act lawsuit filed under the FCA’s qui tam provisions in federal court in the District of New Jersey by John Carr, who worked as a contracting officer for GSC. As part of today’s resolution, Mr. Carr will receive approximately $250,000 from the civil settlement amount.
U.S. Attorney Fishman credited Resident Agent in Charge Richard Monticello of the Defense Criminal Investigative Service, New Jersey Resident Agency, and Investigative Auditor Brandy Saul of the Defense Contract Audit Agency, Mid-Atlantic Region, for the investigation leading to the settlement.
The government is represented by Assistant U.S. Attorney David E. Dauenheimer of the U.S. Attorney’s Office’s Civil Division in Newark and Trial Attorney Arnold Auerhan of the Civil Frauds Section in the U.S. Department of Justice.
The claims settled by this agreement are allegations only; there have been no admissions of liability.
Counsel for relator: Eric H. Jaso Esq., New York, and William J. Hardy Esq., Washington, D.C.
Rounds Crew Gang Leader Sentenced on Racketeering ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Johnny Rounds, who was convicted of racketeering conspiracy involving murder and drug dealing and operating a continuing criminal enterprise, was sentenced to 300 months in prison by Senior U.S. District Judge William M. Skretny.According to Assistant U.S. Attorneys Joel L. Violanti and Wei Xiang, who handled the case, between 2004 and June 2010, the defendant was the head of the Rounds Crew which committed numerous acts of violence and narcotics trafficking on the East Side of Buffalo encompassing Broadway and several intersecting streets. Members of the gang guarded that territory and resorted to acts of violence to insure that no rival gang members or other individuals encroached upon their territory for any reason, including selling or distributing drugs.
Acts of violence included the murders of three people who did not have any affiliation with gang activity, and the attempted murders of several others:
• The July 10, 2009 murder of Brandon Haugabook, on the corner of Paderewski and Townsend Streets in Buffalo;
• The August 12, 2009 murder of Larry Crosland on William Street in Buffalo;
• The August 13, 2009 murder of Shawn Kozma on Reed Street in Buffalo. Kozma’s body was found burned a day later on August 14, 2009 in a vacant field on William Street;
• Several attempted murders and shootings of rival gang members.
In addition to committing the murders and attempted murder, the Rounds Crew engaged in narcotics trafficking offenses in their territory which included Reed, Detroit, Townsend, and Coit Streets in Buffalo.
Johnny Rounds and seven other Rounds Crew Gang members have been convicted in this case.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigations, under the direction of Special Agent in Charge Adam S. Cohen, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division. Additional assistance was provided by the Erie County District Attorney's Office.
Rexburg Man Indicted for Unlawful Possession of FirearmsRead the Press Release
BOISE – Joshua Black, 34, of Rexburg, was indicted June 28, 2016, by a federal grand jury in Pocatello for unlawfully possessing firearms, U.S. Attorney Wendy J. Olson announced.
The indictment alleges that on or about May 20, 2016, Black possessed a Taurus, 9mm caliber pistol and a Plumcrazy Firearms, 5.56 caliber rifle, as well as 82 rounds of 9mm caliber ammunition and 945 rounds of .223/5.56 caliber ammunition. Black is prohibited from possessing firearms and ammunition because he was previously convicted of the felony crime of unlawful manufacture of marijuana on January 23, 2012 in Clackamas County, Oregon.
The charge of unlawful possession of a firearm is punishable by up to 10 years in prison, a maximum fine of $250,000.00, and up to three years of supervised release. The government is seeking forfeiture of the firearms and ammunition involved in the offense.
The case was investigated by the Rexburg Police Department, the Madison County Prosecutor’s office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
An indictment is a means of charging a person with criminal activity. It is not evidence. A person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being prosecuted by the Special Assistant U.S. Attorney hired by the Eastern Idaho Partnership and the State of Idaho to bolster ongoing efforts to prosecute regional drug trafficking, gun and gang violence, internet based crimes against children, and other serious crimes with a federal nexus. The Eastern Idaho Partnership is a collaboration of elected officials and law enforcement from 13 counties and 18 cities across eastern Idaho, in partnership with the Idaho Department of Correction and the U.S. Attorney’s Office.
Redmond Man Pleads Guilty to Stealing Federal BenefitsRead the Press Release
PORTLAND, Ore. – A former employee of the Deschutes County District Attorney’s Office and the Oregon Department of Justice appeared in federal court this week and admitted to stealing more than $55,000 from the Department of Veterans Affairs, U.S. Department of Agriculture, and U.S. Department of Health and Human Services. Bruce A. Endicott, 34, pled guilty to theft of government funds before U.S. District Court Judge Robert E. Jones on Tuesday, and admitted he committed the theft over a course of more than three years.
According to court records, Endicott began receiving service-connected disability benefits through the Department of Veterans Affairs (VA) in 2005. In June 2012, Endicott filed an additional claim with the VA for Individual Unemployability benefits, claiming he was unemployed and unable to be employed due to his service-connected disabilities that included physical and mental impairments. Endicott also submitted a statement to the VA in February 2013, that stated he had not worked within the past 12 months. In fact, Endicott was currently working at the Oregon Department of Justice under a second Social Security number that he had not disclosed to the VA. Based on Endicott’s false statements and concealments, the VA awarded him additional benefits and advised him to notify the VA immediately if he became employed.
Endicott left the Oregon Department of Justice in December of 2013 and began working for the Deschutes County District Attorney’s Office, and again failed to notify the VA he was working.
After Endicott left the District Attorney’s Office in May 2014, he applied for welfare benefits through the Oregon Department of Human Services (DHS), using the second Social Security number, and claimed to have no income. Endicott failed to disclose to DHS that he was receiving approximately $2,700 per month in VA benefits. Based on Endicott’s false statements and concealments, DHS awarded him Supplemental Nutrition Assistance Program (SNAP) (formerly known as food stamps) and Temporary Assistance to Needy Family (TANF) benefits.
In February 2015, Endicott submitted a statement to the VA regarding his Individual Unemployability (IU) claim, in which he failed to disclose his former employment with the Deschutes County District Attorney’s Office, and asserted that he had not worked in the past 12 months. As a result of his false statements and concealments, the VA continued to pay his IU benefits.
Between June 2012 and October 2015, Endicott received approximately $47,947 in IU benefits, $5,996 in SNAP benefits, and $2,770 in TANF benefits to which he was not entitled.
According to the plea agreement, the government will be seeking a 30-day term of imprisonment. The actual sentence will be determined by Judge Jones at Endicott’s sentencing hearing which is scheduled for October 5, 2016.
The case was investigated by the Criminal Investigations Division of the Veterans Affairs Office of Inspector General, the Oregon Department of Human Services, and the Social Security Administration Office of the Inspector General, Office of Investigations. The case is being prosecuted by Special Assistant United States Attorney Helen Cooper as part of a partnership venture between the Seattle Region, SSA Office of the General Counsel and the U.S. Attorney’s Office in Portland, Oregon.
Puerto Rico Police Officers Indicted for Civil Rights Violations and Obstruction of JusticeRead the Press Release
A 12-count indictment was unsealed today charging four current and former Police of Puerto Rico (POPR) Caguas Drug Unit officers with civil rights violations and obstruction of justice arising out of a police operation conducted in Caguas, Puerto Rico, on Aug. 15, 2015. The indictment alleges that during the police operation, the officers used excessive force against two arrestees and that they unlawfully seized, concealed and destroyed evidence of their misconduct.
The indictment was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico.
According to the indictment, while acting under color of law, POPR Sergeant Maximo Cano Diaz physically struck an individual identified only as A.C.N., resulting in bodily injury. The indictment also alleges that while acting under color of law, POPR Agent Antonio Rodriguez Ortiz assaulted an individual, identified only as G.A.H., by deploying a taser onto G.A.H.’s body, which resulted in bodily injury. Cano, Rodriguez and former POPR Agent Javier Ortiz Gonzalez then commanded an individual, identified only as X.R.C., to stop recording video and surrender her cell phone while pointing a taser at her. The defendants allegedly then pursued X.R.C. to the gate of her home; seized her cell phone, which was used, in part, to record police conduct on or about Aug. 15, 2015; and erased the contents of the cell phone by resetting the phone to its factory settings. On the same day, Cano allegedly seized and kept a cell phone belonging to another individual, identified only as J.R.D., which was also used to record police conduct. According to the allegations, Cano, Ortiz and POPR Agent Iris Rivera Figueroa then made false statements to cover up the conduct.
Cano is charged with four counts of obstruction of justice, three counts of deprivation of rights under color of law and one count of making false statements. Ortiz is charged with one count of obstruction of justice, one count of deprivation of rights under color of law, one count of making false statements and one count of perjury. Rodriguez is charged with one count of obstruction of justice and one count of deprivation of rights under color of law. Rivera is charged with one count of making false statements.
If convicted, the defendants face a maximum sentence of 20 years in prison for each of the obstruction of justice charges and a maximum sentence of 10 years in prison for each of the civil rights violations. The false statements and perjury charges each carry a maximum sentence of five years in prison. The defendants also face a potential $250,000 fine for each count.
An indictment is merely an accusation and the defendants are presumed innocent unless proven guilty.
This case is being investigated by the FBI’s San Juan Division. It is being prosecuted by Assistant U.S. Attorney José Contreras of the District of Puerto Rico and Special Litigation Counsel Gerard Hogan and Trial Attorney Julia Gegenheimer of the Civil Rights Division.
Cano Diaz et al Indictment
Providence Resident Pleads Guilty to Sex Trafficking 16-Year OldRead the Press Release
PROVIDENCE, R.I. – Paris Peters, 24, of Providence, pleaded guilty in federal court in Providence today to sex trafficking a 16-year old female. Peters admitted to the court that beginning in August 2015, he and two co-defendants conspired to post photographs and advertisements on Backpage.com offering the juvenile female for prostitution, and arranging for and transporting the victim to various locations in Rhode Island and Massachusetts to engage in commercial sexual activity.
Appearing before U.S. District Court Chief Judge William E. Smith, Peters pleaded guilty as charged in a federal indictment returned on December 3, 2015, with conspiracy to sex traffic a child, sex trafficking a child, transportation of a minor with the intent to engage in criminal sexual activity.
Paris Peters’ guilty plea is announced by United States Attorney Peter F. Neronha, Rhode Island Attorney General Peter F. Kilmartin, Pawtucket Police Chief Paul King and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England.
According to court records and information presented to the court, it is alleged that in mid-August 2015, a 16-year old female was introduced to Paris Peters and Marcus Jamal Gibbs, 28, of Providence, with the intent that the she work for them as a prostitute. Within days, the two men introduced her to a third individual, Michael Sabatino, 24, of Providence. It is alleged that from approximately August 20, 2015 to September 27, 2015, the three men recruited, enticed, transported, harbored and advertised the minor victim for purposes of prostitution.
Peters is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on September 14, 2016. Gibbs and Sabatino are detained in federal custody awaiting trial on charges of conspiracy to sex trafficking a child, sex traffic a child, transportation of a minor with the intent to engage in criminal sexual activity.
According to information presented to the court, an investigation by Pawtucket Police detectives and HSI agents determined that on the night of August 20-21, 2016, Peters posted pictures of the juvenile victim in various stages of undress on Backpage.com, offering her for prostitution. The advertisement posted by Peters claimed the person in the photographs was 20-years old, knowing that she was only 16-years old.
According to information presented to the court, over the next several weeks numerous individuals responded to the advertisement on Backpage.com posted by Peters. As a result, it is alleged that the victim was driven by the defendants to various hotels and private residences in Rhode Island and Massachusetts to engage in commercial sexual activity.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being co-prosecuted in federal court by Assistant U.S. Attorney Adi Goldstein and Rhode Island Assistant Attorney General Daniel Guglielmo.
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Jim Martin (401) 709-5357
email: [email protected]
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Philadelphia Man Charged with Trying to Ship Methamphetamine Thru the U.S. MailRead the Press Release
PHILADELPHIA - Nelson Rodriguez, 65, of Philadelphia, Pennsylvania, was charged today by information with attempted possession with intent to distribute and aiding and abetting the attempted possession with intent to distribute methamphetamine, announced United States Attorney Zane David Memeger. The charge arises from the defendant’s involvement in the shipment of methamphetamine using the U.S. Postal Service Priority Mail.
If convicted the defendant faces a maximum possible sentence of 20 years in prison.
The case was investigated by United States Postal Inspection Service and is being prosecuted by Assistant United States Attorney Jeffery W. Whitt.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Perry County Man Sentenced for Methamphetamine OffenseRead the Press Release
On June 29, 2016, Christopher R. Pelate, 34, of Pinckneyville, was sentenced for a methamphetamine offense, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
Pelate, who had previously pled guilty to one count of conspiracy to distribute methamphetamine, was sentenced to 110 months in federal prison, to be followed by 3 years’ supervised release, and fined $200.00. Evidence at the plea and sentencing hearings established that Pelate was involved with others in the manufacture and distribution of methamphetamine. Pelate provided pseudoephedrine for use in the manufacture of methamphetamine. Pelate also distributed methamphetamine, in the form of "ice." Ice is methamphetamine which has a purity level of at least 80%. At sentencing, the judge found that Pelate was responsible for the distribution of 35 grams of ice and 7.78 grams of pseudoephedrine. The offense occurred between 2013 and June 2015, in Perry, Jackson, and Randolph Counties. Eight co-defendants have previously been sentenced for their role in the drug conspiracy.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Perry County Drug Task Force, Percy Police Department, Steeleville Police Department, Mascoutah Police Department, Illinois State Police Methamphetamine Response Team, DuQuoin Police Department, Pinckneyville Police Department, and Drug Enforcement Administration. The Randolph and Perry County State’s Attorney’s Offices also assisted in the investigation.
Peoria Man Pleads Guilty to Producing Child Pornography While Registered as Sex OffenderRead the Press Release
Peoria, Ill. – A September sentencing date has been scheduled for a Peoria, Ill., man, Jordan D. Salem, 24, of the 600 block of S. Byron Court. Salem appeared before U.S. Magistrate Judge Jonathan E. Hawley on June 28, 2016, to enter his pleas of guilty to production of child pornography while registered as a sex offender. Pursuant to a plea agreement, Salem faces a stipulated sentence of 35 years in federal prison, subject to acceptance by U.S. District Judge Michael M. Mihm. Sentencing before Judge Mihm has been scheduled for Sept. 22, 2016.
According to court documents, beginning in 2013, Salem created several false identities on Facebook, using another male’s picture, and solicited naked photographs and sexual acts from female victims, including minors. Acting under his false personas, including “Cody Miller” and “Ryan Daniel Singer,” Salem represented that he was employed as a performer by an internet pornography website that was seeking females to produce short pornographic videos. Salem promised that the girls would be paid thousands of dollars by the website and that their identities would not be revealed.
When a girl inquired with Salem’s false persona on Facebook, Salem would provide additional details about the job and direct them to send several naked images of themselves if they were interested. If a girl complied with his request for naked photographs, Salem would then direct her to his residence for the purpose of producing the pornographic film with him. In the course of his Facebook chats with females he knew to be minors, Salem would reassure them that he had produced pornography with minors in the past and he could either blur their face or keep their face out of the video to protect them from being discovered.
With his plea of guilty, Salem further admitted that the investigation, including the results of search warrants executed on his Facebook accounts and e-mail accounts, revealed that Salem used the fictitious Facebook profiles to solicit sex and sexually explicit images from at least 28 females, including 10 minors. Salem used the scheme to persuade six of the minor females, including an 11 year-old, to produce sexually explicit images of themselves and send them to him on the internet. Over the course of the scheme, at least 22 females, seven of whom were minors, engaged in sexual intercourse with Salem with the expectation that they were going to be paid large sums of money by a pornographic film production company. Salem did not pay any of his victims the money they were promised for taking part in the production of sexually explicit images.
At the time of these offenses, according to court documents, Salem was required to register as a sex offender under Illinois law. In May 2012, Salem pleaded guilty to the offense of statutory rape in Tennessee. In that case, Salem admitted that he traveled to Tennessee and engaged in sexual intercourse with a minor.
Salem has remained in the custody of the U.S. Marshals Service since he was arrested on Oct. 30, 2015.
The charges are the result of a joint investigation by the U.S. Secret Service, the Peoria Police Department, and the Peoria County Sheriff’s Office. Assistant U.S. Attorney Ron Hanna is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Parkersburg man sentenced to 10 years in prison for Federal child pornography crimeRead the Press Release
CHARLESTON, W.Va. – A Parkersburg man was sentenced today to 10 years in federal prison for possessing over 600 images and videos of child pornography, announced Acting United States Attorney Carol Casto. Charles Tom Davisson II, 56, previously pleaded guilty to the federal child pornography crime. After Davisson is released from prison, he will be on supervised release for 25 years and will also be required to register as a sex offender.
Davisson admitted that on January 22, 2015, he possessed images and videos of prepubescent minors engaged in sexual acts. Investigators found the massive collection of images and videos on his computer and other media devices discovered at his residence in Parkersburg. Davisson further admitted that he was illegally using peer-to-peer file sharing programs to download, receive, and distribute child pornography.
“This is the third case this week that the U.S. Attorney’s Office has brought before the court dealing with sex crimes against children,” said Acting United States Attorney Carol Casto. “These frequent prosecutions reflect our commitment, as well as the commitment of our law enforcement partners, to bringing sexual predators to justice. The public needs to be aware that these serious crimes have tremendous consequences and can result in lengthy prison sentences.”
The Parkersburg Police Department, the West Virginia Internet Crimes Against Children Task Force, and the FBI conducted the investigation. Assistant United States Attorney Lisa G. Johnston is in charge of the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This case is being prosecuted as part of an ongoing initiative by the United States Attorney’s Office to combat child sexual exploitation and abuse in the Southern District of West Virginia.
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Owner of Cape Cod Cleaning Service Sentenced for Filing False Tax ReturnsRead the Press Release
BOSTON – A Wareham business owner was sentenced yesterday in connection with a multi-year scheme in which she under-reported her income by more than $1 million.
Deborah Osgood, 54, was sentenced by U.S. District Court Judge Denise J. Casper to one day in prison, six months home confinement and one year of supervised release. Osgood was also ordered to pay more than $300,000 in restitution. In April, Osgood pleaded guilty to making and subscribing a false tax return.
Osgood was the owner of 2 Busy 2 Clean Cleaning Service, Inc., a residential and commercial cleaning service that operated principally in Cape Cod. Between 2009 and 2013, Osgood instructed some clients of 2 Busy 2 Clean to make checks payable to her personally, rather than to the business. Osgood cashed those checks, but did not deposit the proceeds into the business bank account, or otherwise report them to the accountant she retained to prepare her income tax returns. As a result, she significantly underreported the gross receipts of her business, and thus her own income, when she filed tax returns for years 2009 to 2013. For those five tax years, Osgood did not report more than $1 million in gross receipts, and thus underpaid her federal income taxes by more than $300,000.
United States Attorney Carmen M. Ortiz and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Stephen E. Frank, Deputy Chief of Ortiz’s Economic Crimes Unit.
Oshkosh Man Charged with Child PornographyRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that that on June 28, 2016, a federal grand jury returned an indictment against Neil C. Kienast (age: 20) of Oshkosh, Wisconsin, charging him with possession of child pornography in violation of Title18, United States Code, Section 2252A. If convicted of the charge, Kienast faces a maximum of 20 years in prison, a $250,000 fine, and five years to life of supervised release.
The indictment alleges that on January 14, 2016, Kienast possessed a number of movie files that contained images of child pornography. The indictment also provides notice that various computers and storage media devices seized from Kienast are subject to forfeiture.
Kienast is scheduled to appear on July 14, 2016, at 2:45 p.m. before the Honorable James Sickel, Magistrate Court Judge. A trial date will be set at that time.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney William Roach.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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Northeast Pennsylvania Check Casher Sentenced to Two Years in Prison for Stolen Identity Refund Fraud SchemeRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jose Cabreja, age 30, Scranton, was sentenced today to two years in prison by United States District Court Judge Malachy E. Mannion in Scranton for conspiracy to make false claims against the government.
According to United States Attorney Peter Smith, Cabreja operated Frank Check Casher, Inc. in Olyphant, Cabreja and his co-conspirators used the identities of unknowing third parties to prepare and file fraudulent federal income tax returns which resulted in the issuance of tax refund checks. Cabreja deposited and cashed fraudulently obtained tax refund checks totaling $876,731 between June and August 2013.
Judge Mannion also ordered Cabreja to pay restitution in the amount of $662,309.
Cabreja was indicted by a federal grand jury in Scranton in February 2016, as a result of an investigation by the Internal Revenue Service, Criminal Investigations, with assistance from the Pennsylvania State Police, the Hazelton, Taylor, Dickson City, Dunmore and Olyphant Police Departments, and the Lackawanna and Luzerne County District Attorneys’ Offices. The case was prosecuted by Assistant United States Attorney William Houser.
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North Platte Man Convicted on Child Pornography ChargesRead the Press Release
United States Attorney Deborah R. Gilg announced that Angel F. Garcia, 37, formerly of North Platte, Nebraska, was sentenced today in Lincoln, Nebraska, to 70 months in prison by United States Senior District Judge Richard G. Kopf, for receipt and distribution of child pornography. Following his release from prison, Garcia will serve 5 years on supervised release and be required to register as a sex offender.
In March of 2015, while conducting an investigation, law enforcement officers of the North Platte Police Department observed an IP address making known child pornography files available for sharing. Further investigation determined that Garcia was the subscriber to that IP address. In April, 2015, a search warrant was executed at Garcia’s residence in North Platte. Officers performed an on-scene preview of a computer located in Garcia’s bedroom and found thousands of child pornography images and videos. Garcia admitted to officers that he had in fact downloaded and viewed child pornography from the internet.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the North Platte Police Department.
Nitro woman pleads guilty to Federal methamphetamine crimeRead the Press Release
CHARLESTON, W.Va. – A Nitro methamphetamine dealer pleaded guilty today to a federal drug crime, announced Acting United States Attorney Carol Casto. Jamisa Hairston, 25, entered her guilty plea to distribution of methamphetamine.
Hairston admitted that on April 7, 2014, she sold methamphetamine to a confidential informant working with law enforcement. The drug deal took place at a residence in Nitro that Hairston shared with her boyfriend.
Hairston faces up to 20 years in federal prison when she is sentenced on October 5, 2016.
The Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney John J. Frail is handling the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
This case is 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 illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Ninth Defendant from Georgia Sentenced in Credit Card SchemeRead the Press Release
BOISE – Kyandre Banks, 27, of Lilburn, Georgia, was sentenced today to 60 months in prison followed by three years of supervised release for conspiracy to commit wire fraud and aggravated identity theft, U.S. Attorney Wendy J. Olson announced. He pleaded guilty on February 18, 2016. Visiting U.S. District Judge Stanley A. Bastian also ordered Banks to pay $22,679.54 in restitution along with the other co-defendants, and to forfeit $49,953.41 in cash proceeds from the offense.
According to court proceedings, Banks admitted traveling to the District of Idaho in October 2014, along with his co-defendants, for the purpose of making fraudulent purchases of gift cards and prepaid debit cards from retail stores, using stolen credit card numbers encoded onto stock debit cards. Banks admitted to obtaining the stock debit cards encoded with unauthorized credit card numbers, and making purchases at retail stores between October 4 and 6, 2014. Banks further admitted traveling to three separate retail stores, making 11 purchases of gift cards, pre-paid debits cards and personal toiletries, and using six different credit card numbers that he was not authorized to use. Officers recovered the defendant’s suitcase and backpack which contained a total of 27 gift cards.
Banks was indicted, along with Terrance Barimah of Floranceville, Georgia, Clarence Collins of Douglasville, Georgia, Rashine Kale of Lawrenceville, Georgia, Jean Estinville of Lawrenceville, Georgia, Charles Moore of Stone Mountain, Georgia, Jonathan Penn of Suwanee, Georgia, Brian Treadwell of Buford, Georgia, Mikki Williams of Loganville, Georgia, and Rakeen Anderson, of Atlanta, Georgia, on charges relating to a wire fraud and identity theft scheme. Collins, Banks, Estinville, Kale, Moore, Penn, Williams and Treadwell were each charged with conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. Anderson was charged with conspiracy to commit wire fraud and wire fraud. Barimah was charged with conspiracy to commit wire fraud and illegal possession of device-making equipment.
Co-defendants Rakeen Anderson and Jean Estinville were sentenced on September 30, 2015. Anderson received 18 months in prison for conspiracy to commit wire fraud. Estinville received 46 months in prison for conspiracy to commit wire fraud and aggravated identity theft. Brian Treadwell and Mikki Williams were sentenced on June 16, 2014. Treadwell received 75 months in prison for conspiracy to commit wire fraud and aggravated identity theft. Williams received three years of probation and 200 hours of community service for misprision of a felony. Clarence Collins was sentenced on July 6, 2015, to 78 months in prison for conspiracy to commit wire fraud and aggravated identity theft. Charles Moore was sentenced on July 7, 2015, to 51 months in prison for conspiracy to commit wire fraud and aggravated identity theft. Jonathan Penn was sentenced on July 8, 2015, to 24 months in prison for conspiracy to commit wire fraud. Rashine Kale was sentenced on July 22, 2015, to 30 months in prison for conspiracy to commit wire fraud and aggravated identity theft.
Terrance Barmiah is set for sentencing on July 20, 2016.
The case was investigated by the United States Secret Service and the Boise Police Department.
Nine Men Charged with Distributing Drugs in Bristol CountyRead the Press Release
BOSTON – Nine men have been charged in U.S. District Court in Boston in connection with distributing heroin and cocaine in the Bristol County area.
Six men from southeastern Massachusetts and Rhode Island were charged with conspiring to distribute cocaine, and three New Bedford residents, in a separate but related criminal complaint, were charged with conspiring to distribute heroin. Six defendants were arrested this morning will appear in U.S. District Court in Boston later this afternoon. Three defendants remain fugitives from justice.
According to court documents, Luis Lopez was the head of a drug trafficking organization that imported large quantities of cocaine from Puerto Rico to New Bedford and Fall River. Another defendant coordinated the shipments of cocaine through the U.S. Mail with the assistance of Chindy Diaz, who received cocaine-filled packages on Lopez’s behalf and delivered it to Lopez at his Fall River residence. Israel Santiago also allegedly helped coordinate the receipt of cocaine on behalf of Lopez. Lopez then sold the cocaine to other drug dealers, including Tyson Britto. During the course of the investigation, federal agents intercepted at least three cocaine-filled packages bound for Lopez.
In a related investigation, federal agents learned that Sharik Mendes, who owns and operates the HEART gym in New Bedford, was allegedly receiving large quantities of heroin from at least two suppliers based in Providence. It is alleged that Mendes employed Tyson Depina to distribute the heroin on his behalf. Intercepted phone calls showed that Depina was consistently selling heroin to users and lower-level dealers, and that he was providing Mendes with $1,000 to $2,000 a day for this heroin. In April 2016, Depina was arrested for possessing heroin which he attempted to destroy incident to his arrest. In addition, it is alleged that Depina was also supplied heroin by another defendant, who was distributing it on behalf of a higher-level drug dealer.
The following defendants are charged in a federal criminal complaint with:
Conspiracy to distribute and possess with intent to distribute cocaine:
1) Luis Lopez, a/k/a “Juan Gonzalez,” 43, of Tiverton, R.I. and Fall River;
3) Chindy Diaz, 38, of New Bedford;
5) Tyson Britto, a/k/a “Peanut,” 31, of Fall River; and,
6) Israel Santiago, a/k/a “Reysito,” 39, of Fall River.
The following defendants are charged in a related federal criminal complaint with:
Conspiracy to distribute and possess with the intent to distribute heroin:
1) Sharik Mendes, 39, of New Bedford; and
2) Tyson Depina, a/k/a “Tru,” 40, of New Bedford.
The charges of conspiracy to distribute and possess with intent to distribute heroin and cocaine provide a sentence of no greater than 20 years in prison, a lifetime of supervised release and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Bristol County District Attorney C. Samuel Sutter; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Fall River Police Chief John M Souza; New Bedford Police Chief Joseph C. Cordeiro; Fairhaven Police Chief Michael Myers; and Bristol County Sheriff Thomas M. Hodgson, made the announcement today. The cases are being prosecuted by Assistant U.S. Attorney Eric Rosen of Ortiz’s Narcotics and Money Laundering Unit.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
New York man sentenced for possession of counterfeit credit cardsRead the Press Release
WHEELING, WEST VIRGINIA – Charles Manu, 23, of Bronx, New York, was sentenced to 24 months in prison for possession of counterfeit devices, United States Attorney William J. Ihlenfeld, II, announced.
Manu was found in Ohio County in possession of more than fifteen counterfeit devices, including stolen credit card account numbers and recoded or reprogrammed gift cards. Manu previously pled guilty to one count of “Possession of Unauthorized Access Devices.”
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The West Virginia State Police and the United States Secret Service investigated.
U.S. District Judge John Preston Bailey presided.
New York Lawyer and Wife Pay $1 Million Following Conviction on Immigration Fraud SchemeRead the Press Release
The Office of the United States Attorney for the District of Vermont announced today that Loreto Kudera, age 45, and Hazel Kudera, age 43, a married couple from New York, New York, who have pleaded guilty to an immigration fraud scheme, have paid the final installment of their $1 million forfeiture penalty representing ill-gotten gains from the scheme.
On June 9, 2016, the Kuderas pleaded guilty to charges that they conspired to commit immigration fraud. According to the public record, Hazel Kudera owns several medical staffing agencies in New York specializing in providing nursing professionals to hospitals, outpatient and skilled nursing facilities. She and her husband, Loreto Kudera, then a lawyer at the Law Offices of Barry Silberzweig, in New York, New York, provided false and fraudulent information to the U.S. Citizenship and Immigration Services in St. Albans, Vermont when applying for H1-B visas for foreign nurses.
The H-1B visa program permits an employer to petition on a behalf of a foreign national beneficiary to enter the United States for the specific purpose of working for the employer in a specialty occupation. There are a limited number of H-1B visas available each year, and the purpose of the program is to ensure that these visas go to legitimate beneficiaries to fill specialty positions from a qualified work force. Working as a general RN or LPN is not considered a specialty occupation by the U.S. Citizenship and Immigration Service. Knowing this, Hazel Kudera and Loreta Kudera falsely stated that these foreign nurses, mostly from the Philippines, would be working in specialty occupations at prevailing wage rates when, in fact, they were going to work as LPNs or RNs at much lower rates, mostly at nursing homes. Hazel Kudera and Loreto Kudera profited from this scheme from the filing fees they collected from the beneficiaries as well as from the health care facilities which were paying fees to the medical staffing agencies owned by Hazel Kudera. The Kuderas admitted that they submitted 100 or more fraudulent petitions as part of their scheme. As a result of their convictions, the Kuderas agreed to forfeit $1,000,000 in illegal proceeds to the United States.
The Kuderas are scheduled to be sentenced on September 28, 2016. The maximum penalties for their conviction are five years of imprisonment, three years of supervised release, or a fine of $250,000 or twice the amount of gross gain, whichever is greater. The sentence will be advised by the United States Sentencing Guidelines.
The United States Attorney commended the investigative efforts of the United States Department of State, Diplomatic Security Service, the United States Department of Labor Office of Inspector General, Office of Labor Racketeering and Fraud, and the United States Department of Homeland Security, Homeland Security Investigations, in Boston, Massachusetts, who jointly spearheaded the investigation. The United States Attorney also wishes to thank the United States Citizenship and Immigration Service, Security Fraud Division, at the Vermont Service Center in St. Albans, Vermont for their assistance with the investigation.
The United States is represented in this case by Assistant U.S. Attorney Heather E. Ross. Hazel Kudera is represented by Richard Willstatter of Green & Willstatter, White Plains, New York and Loreto Kudera is represented by Marc Fernich of New York, New York.
New Jersey Doctor Pleads Guilty in Connection with Test Referral Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A doctor with a practice in Clifton, New Jersey, today admitted taking bribes in connection with a long-running and elaborate test referral scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Juan Espindola, 58, of Montclair, New Jersey, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with violating the Federal Travel Act by accepting bribes to refer patient blood specimens to BLS.
According to documents filed in this case and statements made in court:
Espindola admitted that between April 2011 and June 2012, he received bribes of approximately $1,500, largely on a monthly basis, from an individual working on behalf of BLS, referred to in the information as “Individual 1.”
Individual 1 falsely characterized the payments as “consulting fees” and made the payments via check. In reality, Espindola did not provide consultant services to Individual 1 or BLS – the consultant fees were merely a sham intended to conceal the bribe payments. In exchange, Espindola referred patient blood samples to BLS. Espindola’s referrals generated approximately $65,000 in lab business for BLS.
The Travel Act charge to which Espindola pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. His sentencing is scheduled for Oct. 12, 2016.
The investigation has thus far resulted in 41 guilty pleas – 27 of them from doctors – in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case. The investigation has to date recovered more than $12 million through forfeiture.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher; inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Cynthia Shoffner; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the ongoing investigation.
The government is represented by Assistant U.S. Attorneys Joseph N. Minish, Danielle Alfonzo Walsman, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.29 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Robert Stahl, Esq., Westfield, New Jersey
Nevada Dentist Sentenced to Prison for Tax FraudRead the Press Release
A Las Vegas-area dentist was sentenced today to 13 months in prison for tax evasion, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Daniel G. Bogden of the District of Nevada.
Leslie Kotler, 56, pleaded guilty in June 2014 to evading his taxes over a nine year period, causing a $600,000 tax loss and admitted to using a number of nominee bank accounts and bogus trusts to hide his income and assets from the Internal Revenue Service (IRS). Kotler also filed false income tax returns for the years 2008 through 2011 that materially understated his income and filed a false bankruptcy petition in an attempt to delay the IRS’s ongoing efforts to collect the large amount of taxes he owned.
“With today’s sentence, Mr. Kotler is held accountable and pays a heavy price for his egregious conduct in evading both the assessment and payment of taxes,” said Acting Assistant Attorney General Ciraolo. “The court’s sentence reflects the serious harm caused by those who fail to comply with our nation’s tax laws and will serve to deter other individuals contemplating similar criminal conduct.”
“Leslie Kotler’s attempt to evade taxes by hiding income and filing false tax returns was a theft from the American public,” said Acting Special Agent in Charge Michael Brock of the IRS-Criminal Investigation Las Vegas Field Office. “To build faith in our nation’s tax system, honest taxpayers need to be reassured that everyone is paying their fair share. The IRS-Criminal Investigation Division, along with the Department of Justice, will investigate and prosecute those who violate our tax system.”
In addition to the term of imprisonment, U.S. District Judge Andrew Gordon of the District of Nevada ordered Kotler to serve three years of supervised release and pay restitution in the amount of $712,280. Before his sentencing, Kotler paid a total of $450,429 in back taxes, interest and fraud penalties.
Acting Assistant Attorney General Ciraolo thanked special agents of IRS-Criminal Investigations, who investigated the case and Tax Division Trial Attorney Thomas W. Flynn, who is prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Neenah Man Charged with Arson and Mail FraudRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on June 28, 2016, a federal grand jury returned an indictment against Jeremy J. Neumann (age: 37) of Neenah, Wisconsin, charging him with arson of a building in violation of Title 18, United States Code, Section 844(i); mail fraud in violation of Title 18, United States Code, Section 1341; and making a false statement in violation of Title 18, United States Code, Section 1001. If convicted of the arson or mail fraud charges, Neumann faces a maximum of 20 years in prison, a $250,000 fine, and three years of supervised release. If convicted of the false statement charge, Neumann faces a maximum of 5 years in prison, a $250,000 fine, and three years of supervised release.
The indictment alleges that Neumann was the owner of Gambit McDermott, LLC, a business leasing warehouse storage space in Oshkosh, Wisconsin. On November 6, 2015, Neumann maliciously damaged by means of fire his business property and later submitted a proof of loss claim to his insurance company wherein he falsely stated the fire was accidental and not originating from his own act.
Neumann is scheduled to appear on July 14, 2016, at 3:00 p.m. before the Honorable James Sickel, Magistrate Court Judge. A trial date will be set at that time.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the State of Wisconsin, Department of Justice, Division of Criminal Investigations, the Oshkosh Police Department, and the Winnebago County District Attorney’s Office. The case is being prosecuted by Assistant United States Attorney William Roach.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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Multi-Convicted Felon Sentenced to Serve 188 Months in Federal Prison on Drug Distribution and Firearms ConvictionsRead the Press Release
DALLAS — Eric Fabian Cruz, 25, of Dallas, was sentenced by U.S. District Judge Sidney A. Fitzwater to serve a total of 188 months in federal prison, following his guilty plea in January 2016 to methamphetamine distribution and firearms charges, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Cruz pleaded guilty to three counts of distribution of methamphetamine, one count of possession with intent to distribute 50 grams or more of methamphetamine and one count of being a felon in possession of a firearm. Cruz has been in custody since his arrest in September 2015 by special agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Judge Fitzwater sentenced him on June 17, 2016, to 188 months on the drug convictions and 120 months on the firearms conviction, to run concurrently.
According to documents filed in the case, on three occasions in September 2015, Cruz met a witness at his residence on Tyrone Drive in Dallas and sold the witness methamphetamine. When law enforcement executed a search warrant at his residence on September 22, 2015, they found at least 50 grams of methamphetamine by the door of the residence. Law enforcement also located three firearms – a Smith and Wesson, Model Bodyguard 380, .380 caliber pistol; a Springfield, Model XD-40 Compact, .40 caliber pistol; and a Romarm, Model GP/WASR/63, 7.62x39 caliber rifle – in Cruz’s bedroom in the residence. Cruz has multiple felony convictions in north Texas.
ATF and the Dallas Police Department investigated the case. Assistant U.S. Attorney Andrew Wirmani was in charge of the prosecution.
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Mobile Man Sentenced to 20 Years for Child Pornography OffenseRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Jeffrey Dean Coble, 41, of Mobile, was sentenced today to 20 years in prison for distribution and receipt of child pornography. Coble pled guilty to the offense in February.
United States District Judge Kristi K. DuBose ordered Coble to serve the maximum sentence available in the case, 240 months imprisonment, and ordered that he be supervised by the United States Probation Office for the rest of his life following his release. Coble was also ordered to register as a sex offender.
The investigation began after the Department of Homeland Security, Homeland Security Investigations received information that a subject in Michigan had produced and traded explicit images of the sexual abuse of a child with an individual traced to Mobile. Investigators determined that the phone used to communicate with the subject in Michigan was that of Jeffrey Dean Coble. A search warrant was issued for Coble’s residence and executed by HSI agents and the Mobile Police Department in November of 2015.
During the search, Coble admitted that he had used his phone to send and receive images of child pornography with other users across the country, and further confessed that he had sexually touched two minors in order to photograph the abuse and send the images to other individuals using his phone. Coble was arrested at the scene, and has been in custody since that time.
The case was investigated by Homeland Security Investigations and the Mobile Police Department, and prosecuted on behalf of the United States by Assistant United States Attorney Sean P. Costello. The case was brought as part of Project Safe Childhood, the Department of Justice’s initiative to combat the proliferation of technology-facilitated sexual exploitation crimes against children. For more information, please visit http://www.justice.gov/psc
Mescalero Apache Man Sentenced on Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – David Charles Prins, 47, a member of the Mescalero Apache Nation, was sentenced in federal court in Las Cruces, N.M., to 39 months in prison followed by two years of supervised release for his assault conviction.
Prins was arrested on April 24, 2015, on a criminal complaint that charged him with assault by striking resulting in serious bodily injury. According to the complaint, on Sept. 19, 2014, security guards at the Inn of the Mountain Gods Hotel responded to a disturbance in Prins’ hotel room, where they found Prins in bloody clothes and the victim unconscious on the floor covered in blood. The victim suffered facial swelling and a lacerated ear, which required suturing.
Prins was subsequently charged by indictment on June 17, 2015, with assault resulting in serious bodily injury which occurred on Sept. 19, 2014, in Otero County, N.M. On Oct. 13, 2015, Prins entered a guilty plea to the indictment without the benefit of a plea agreement.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Member of Cherry Hill Group ‘Little Spelman’ Sentenced to 12 Years in Prison for Drug Distribution ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Shaquan Robinson, a/k/a Quanny, age 26, of Baltimore, today to 12 years in prison, followed by 10 years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin and crack cocaine, related to his drug dealing and violence in the Cherry Hill section of Baltimore.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn Mosby.
According to his plea agreement, Robinson was a member of a group known as “Little Spelman.” From at least 2003 to 2013, Little Spelman operated in the “down the hill” area of Cherry Hill. This group committed acts of robbery, homicides, non-fatal shootings and drug distribution, to include crack cocaine, heroin, cocaine and marijuana.
Beginning in at least 2010, Robinson was a drug distributor in Cherry Hill, distributing crack cocaine, heroin, marijuana, and other drugs with members of Little Spelman. In May 2013, Robinson was seen by law enforcement on CCTV engaging in hand to hand drug transactions on a school playground. When police approached the playground, Robinson attempted to conceal the drugs, but police recovered two ziplocks of marijuana from a bag Robinson had thrown on the ground, and recovered 24 ziplocks of cocaine and $51 from Robinson. Robinson admitted that he also possessed a firearm in furtherance of the drug conspiracy. On July 8, 2012, officers approached a group of men with whom Robinson was standing. Robinson ran away holding a loaded handgun in the waistband of his pants then tossed the gun into the front yard of a home, where it was recovered by police.
In addition to drug activity, since at least 2011, members of Little Spelman have been in a dispute with members of an organization involved in the distribution of narcotics and violence that operates primarily in the part of Cherry Hill known as “Up the Hill” or “Up da Hill.” Members and associates of Little Spelman protected themselves, the organization, and their control of the drug trade in part of the Down the Hill section of Cherry Hill, and engaged in their dispute with UDH, through violence and intimidation.
For example, Little Spelman member Davon Martin admitted that on January 20, 2011, he shot and killed UDH member Rhidell Price. Martin killed Price in retaliation for Martin and another Little Spelman member, Dewayne Jones, being shot at by Up Da Hill members a few days earlier. Dewayne Jones was subsequently shot and killed on August 28, 2011.
Two days after Martin killed Price, on January 22, 2011, Little Spelman associate Harry Hicks was shot and killed by Up Da Hill members in retaliation for Price’s murder. On April 9, 2011, Martin shot and killed Up Da Hill member Dwight Taylor at a barbershop on W. Saratoga Street in Baltimore, in retaliation for Hicks’ murder. Robinson was in the barbershop during the murder. A ballistics comparison of the .45 caliber firearm that Martin used to kill Taylor revealed that it was the same gun used on January 28, 2011 by Dominic Hope, the former leader of Little Spelman, to shoot Up Da Hill member Antione White, who was leaving the funeral of Rhidell Price. Dominic Hope was subsequently shot and killed on January 20, 2012.
Davon Martin, age 27, of Baltimore, was previously sentenced to 35 years in prison.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department, and Baltimore City Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith, Seema Mittal, and Patricia C. McLane, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
McCracken County, Kentucky, Physician Guilty of Fraudulent Possession of A Controlled Substance, Wire Fraud and Making False Statements Related to Health Care MattersRead the Press Release
PADUCAH, Ky. – A McCracken County, Kentucky, physician plead guilty today, in United States District Court, before Senior District Judge Thomas B. Russell, to fraudulent possession of a controlled substance, wire fraud and making false statements related to health care matters, announced United States Attorney John E. Kuhn, Jr.
Sean P. McDonald, 46, admitted to devising a scheme to obtain prescription pain medication, while a treating physician at two Paducah, Kentucky, hospitals by falsely misrepresenting that he was removing medications for hospitalized patients, falsely possessing the controlled substances, and then falsely causing a request for payment to be sent from the two Paducah hospitals to the insurance carriers of the patients.
Specifically, according to the twelve-count federal Information, McDonald defrauded Lourdes Hospital and Western Baptist Hospital, by means of wire communication. From February 2009, through November 2010, McDonald caused a request for payment to be sent from Western Baptist Hospital and/or Lourdes Hospital, both located in Paducah, Kentucky, to patient’s insurance carriers.
During the same time period, McDonald admitted to making false and fraudulent statements to insurance carriers indicating that he had provided medication to patients when he had not.
Further, McDonald, as a prescribing physician with a DEA (Drug Enforcement Administration) registration number to issue prescriptions, wrote prescriptions for Dilauded, a Schedule II controlled substance, in violation of his DEA registration, to patients, when in fact he never provided the controlled substances to the patient.
If convicted at trial, McDonald would have faced a combined maximum term of imprisonment of 113 years, a combined maximum fine of $3,000,000 and a three year term of supervised release. Sentencing before Senior Judge Russell is September 26, 2016, in Paducah.
This case is being prosecuted by Assistant United States Attorneys Lettricea Jefferson-Webb and Seth Hancock and is being investigated by the United States Department of Health and Human Services Office of Inspector General, the Medicaid Fraud and Abuse Control Unit of the Kentucky Office of the Attorney General, and Federal Bureau of Investigation.
McAlester Man Pleads Guilty to Possession of Material Involving Sexual Exploitation of MinorsRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that BRANDON RAY PARKER, age 40, of McAlester, Oklahoma, pled guilty to POSSESSION OF CERTAIN MATERIAL INVOLVING THE SEXUAL EXPLOITATION OF MINORS, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and 2252(b)(2).
The charge arose from an investigation by the Federal Bureau of Investigation. The defendant was indicted in April, 2016.
The Indictment alleged that between in or about October 2013 and on or about October 2, 2015, in the Eastern District of Oklahoma, the defendant did knowingly possess, attempt to possess and access, with intent to view matters which contained visual depictions. The production of said visual depictions involved the use of minors engaging in sexually explicit conduct and said visual depictions were of such sexually explicit conduct and had been transported in interstate commerce by computer.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion.
The statutory range of punishment is up to 10 years imprisonment, up to a $250,000 fine or both and a term of supervised release of not less than 5 years up to life.
Assistant United States Attorney Christopher Wilson represented the United States.
Massachusetts Man Indicted on Terrorism ChargesRead the Press Release
BOSTON – An Adams man was charged in a superseding indictment today in connection with a plot to engage in terrorist activity inspired by and in the name of ISIL.
Alexander Ciccolo, a/k/a Ali Al Amriki, 23, was indicted on one count of attempting to provide material support to a foreign terrorist organization and one count of attempting to use of weapons of mass destruction. These charges were added to a pending indictment charging Ciccolo with one count of being a convicted person in possession of firearms and one count of assaulting a nurse during a jail intake process by use of a deadly weapon causing bodily injury. Ciccolo is scheduled to appear in U.S. District Court in Springfield on July 7, 2016 at 3:00 p.m.
According to evidence presented at a previous detention hearing, on July 4, 2015, Ciccolo received four firearms which he had ordered from a person who was cooperating with members of the Western Massachusetts Joint Terrorism Task Force, and who had been communicating with Ciccolo about his plans to engage in a terrorist act. Ciccolo was arrested immediately after receiving the firearms, which included a Colt AR-15 .223 caliber rifle, a SigArms Model SG550-1 556 rifle, a Glock 17-9 mm pistol, and a Glock 20-10 mm pistol. Ciccolo had previously been convicted of a crime punishable by more than a year in jail and therefore was prohibited from possessing firearms.
It is alleged that Ciccolo is a supporter of the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. Ciccolo had spoken with a cooperating witness in recorded conversations about his plans to commit acts of terrorism inspired by ISIL, including setting off improvised explosive devices, such as pressure cookers filled with black powder, nails, ball bearings and glass, in places where large numbers of people congregate, like college cafeterias. Prior to his arrest, agents had observed Ciccolo purchase a pressure cooker similar to that used in the Boston Marathon bombings.
It is also alleged that during a search of Ciccolo’s apartment after he was arrested, agents found several partially constructed “Molotov cocktails.” These incendiary devices contained what appeared to be shredded Styrofoam soaking in motor oil. It is alleged that Ciccolo had previously stated that this mixture would cause the fire from the exploded devices to stick to people’s skin and make it harder to put the fire out.
Shortly after his arrest, while he was being processed at the Franklin County Correctional Center, Ciccolo allegedly stabbed a nurse with a pen, leaving a bloody gash on the top of the nurse’s head.
Ciccolo has been detained since his arrest in July 2015.
The charge of attempted provision of material support to a foreign terrorist organization provides a sentence of no greater than 20 years in prison, up to a lifetime of supervised release and a fine of $250,000. The charge of attempted use of a weapon of mass destruction provides a sentence of life in prison, up to a lifetime of supervised release, and a fine of $250,000. The charge of being a prohibited person in possession of firearms provides a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. The charge of assault with a dangerous weapon causing bodily injury provides a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Division, made the announcement today. This investigation was conducted by the Western Massachusetts Joint Terrorism Task Force, and member agencies of the JTTF including the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Springfield, Ludlow, Holyoke, West Springfield, Easthampton, and Pittsfield Police Departments; the Massachusetts State Police, Homeland Security Investigations, and critical assistance from the Adams Police Department and the Massachusetts State Regional Hazardous Materials Response Team.
The case is being prosecuted by Assistant U.S. Attorneys Deepika Bains Shukla and Kevin O’Regan of Ortiz’s Springfield Branch Office and Trial Attorney Andrew Sigler of the National Security Division’s Counterterrorism Section of the Department of Justice.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Maryland Tax Return Preparer Sentenced to Prison for Preparing and Filing False Tax ReturnsRead the Press Release
A Baltimore, Maryland, tax return preparer was sentenced today to serve 20 months in prison for aiding and assisting in the preparation of false tax returns for others, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
On February 8, following a five day trial, a federal jury convicted Charles Imariagbe of 15 counts of aiding and assisting in the preparation of false income tax returns. According to court documents and the evidence presented at trial, between 2008 and 2012, Imariagbe operated a tax preparation business in Baltimore called JC Tax Service Inc. During that time, Imariagbe prepared false individual income tax returns for at least seven clients for submission to the Internal Revenue Service (IRS). These tax returns claimed false and fraudulent income and expenses from Schedule C businesses and grossly inflated or wholly fictitious mileage expenses. The false items on these returns resulted in the clients receiving larger tax refunds than they were entitled to receive.
In addition to the prison term, U.S. District Judge Ellen L. Hollander ordered Imariagbe to serve three years of supervised release and pay restitution to the IRS in the amount of $151,927.
Acting Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorneys Andrew Kameros and Brittney Campbell of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Marlborough Man Sentenced on Federal Heroin and Firearm ChargesRead the Press Release
CONCORD, NEW HAMPSHIRE: Robert Ervin, 20, of Marlborough, New Hampshire, was sentenced on Thursday in United States District Court for the District of New Hampshire on federal charges of distributing heroin, possessing heroin with the intent to distribute it, and possessing a firearm as a regular user of heroin, announced United States Attorney Emily Gray Rice. The Court imposed a four-year term of imprisonment, to be followed by a period of supervised release.
On October 8, 2015, law enforcement officers observed Ervin engaging in what appeared to be a suspicious hand-to-hand transaction in Keene, New Hampshire. When approached by the officers, Ervin admitted that he had just sold a small quantity of heroin, and a search of Ervin’s person and vehicle revealed the presence of additional heroin and a loaded firearm.
Several departments and agencies were involved in the investigation and prosecution, including the Keene, New Hampshire Police Department, Homeland Security Investigations (HSI) Manchester, the New Hampshire State Police, the New Hampshire Attorney General’s Drug Task Force, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
The case was prosecuted by Assistant United States Attorney Nick Abramson.
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Manchester Woman Sentenced to 60 Months in Prison for Distributing Heroin and FentanylRead the Press Release
CONCORD – United States Attorney, Emily Gray Rice announced that United States District Court Judge Landya McCafferty sentenced Tiffany Ramos to serve 60 months in federal prison. Ramos, who resided in Manchester prior to arrest, previously pleaded guilty to distributing controlled substances and possessing a controlled substance with intent to distribute.
According to documents that were filed in United States District Court and statements in court proceedings, Ramos, 27, sold heroin and fentanyl to a cooperating witness on three occasions in May and June of 2015. She was arrested on June 12, 2015, and found to be in possession of over 128 grams of fentanyl. Contrary to some media reports, the distribution charge to which Ramos pleaded guilty did not involve an overdose death.
According to statistics maintained by the State of New Hampshire, over half of the drug overdose deaths in New Hampshire in 2015 were related to fentanyl. Because a single gram of heroin or fentanyl can be used to create multiple individual dosage units that can be sold “on the street,” the quantity of fentanyl involved in this case could have generated hundreds of individual doses of fentanyl, each of which had the potential to cause a fatal overdose.
The case was investigated by the Drug Enforcement Administration, with assistance from other law enforcement agencies, including the New Hampshire State Police and the Manchester Police Department. The case was prosecuted by Assistant United States Attorneys Debra Walsh and John J. Farley.
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Manchester Man Pleads Guilty to Bank Robbery ChargeRead the Press Release
CONCORD, N.H. – Andrew Dufresne, 44, of Manchester, New Hampshire, pleaded guilty in the United States District Court to robbing the People’s United Bank, 1750 Elm Street, Manchester, New Hampshire on April 9, 2014.
In the course of the robbery, Dufresne walked into the bank and handed the teller a note demanding money. He then went behind the teller’s desk and reached into the teller’s cash drawer, taking bundles of bills in various denominations. Dufresne was arrested on April 11, 2014 in Methuen after crashing a stolen car in that city.
A sentencing hearing is scheduled for October 11, 2016. The court will sentence Dufresne after it reviews a presentence investigation report prepared by the United States Probation & Pretrial Services Office.
This case was investigated by the Manchester Police Department with the assistance of the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Helen White Fitzgibbon.
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Louisiana Woman Sentenced to 192 Months in Prison for Conspiring to Commit Sex Trafficking of a MinorRead the Press Release
A Louisiana woman was sentenced today to 16 years in prison for conspiring to commit sex trafficking of a minor, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney J. Walter Green of the Middle District of Louisiana and Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Division.
Kellie M. Dominique, 37, of Baton Rouge, Louisiana, was sentenced by U.S. District Judge Shelly D. Dick of the Middle District of Louisiana, who also ordered her to serve a five-year term of supervised release.
In connection with her plea, Dominique admitted that from June 2013 until September 2013, she conspired with others to promote the prostitution of a minor female out of Dominique’s home and other venues. In order to manage and carry on the prostitution business, Dominique admitted that she and the minor female regularly used telephones to schedule prostitution sessions and to discuss the proceeds earned from the prostitution sessions. Dominique also admitted that she facilitated the minor female’s posts on Backpage.com classified advertisements for commercial sex acts in Louisiana and elsewhere. Dominique further admitted that she provided the minor female with illegal drugs and used such drugs with the minor female. Finally, when authorities began to investigate her illegal conduct, Dominique made false statements to government officials and corruptly influenced potential witnesses.
Four others have been convicted in related cases in the Middle District of Louisiana, including Jeremie Tate, 34, of Zachery, Louisiana, who was sentenced in September 2015 to serve 115 months in prison for operating an interstate prostitution enterprise.
The FBI’s Baton Rouge Child Exploitation Task Force, comprised of East Baton Rouge Sheriff's Office, Louisiana Attorney General’s Office and Louisiana State Police, investigated the case with assistance from the Baton Rouge Police Department’s Narcotics Division, the U.S. Marshals Fugitive Task Force and other law enforcement agencies.
Trial Attorney Reginald E. Jones of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jamie A. Flowers Jr. of the Middle District of Louisiana prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Local Men Sentenced on Firearms ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced today that STERLING ROBINSON, age 26, of Gretna; DEANDRE ROSE, age 23, and EVERETT ROSS, age 28, both of New Orleans, were sentenced today after having pled guilty to federal firearm violations.
U.S. District Judge Jane Triche Milazzo sentenced ROSS to 65 months of incarceration, to be followed by 3 years of supervised release. ROBINSON and ROSE were each sentenced to 60 months of incarceration, to be followed by 3 years of supervised release.
According to court documents, on October 14, 2014, Gretna police officers were patrolling in the area of Milton & Pratt Streets, when they noticed an illegally parked vehicle. As the officers approached the vehicle to issue a citation, they saw a bag of crack cocaine in the passenger door handle. The officers also observed a semi-automatic handgun secured between the passenger seat and the middle console. A short time later, the officers observed ROBINSON, ROSE, ROSS, and a female acquaintance approach and attempt to enter the vehicle.
As ROBINSON was removed from the area of the front passenger seat, he resisted arrest and attempted to reach for the bag of crack cocaine. ROSS was removed from the driver’s seat of the vehicle, and ROSE was removed from the rear passenger seat. The officers searched the vehicle, and two additional handguns were discovered. A Ruger model P85 9mm semi-automatic handgun was found underneath the front of the driver’s seat and accessible to ROSS. A Springfield model XDM, .45-caliber semi-automatic handgun was found underneath the rear of the front passenger’s seat and accessible to ROSE. The initially-observed, Kahr model CW9, 9mm semi-automatic handgun was accessible to ROBINSON. Further investigation revealed that each of the firearms had been reported stolen.
Court records revealed that ROSS and ROSE each had two prior felony convictions in Orleans Parish Criminal District Court. As such, they both were prohibited from possessing firearms by both state and federal law.
U.S. Attorney Polite praised the work of the ATF New Orleans Division Office and the Gretna Police Department, in investigating this matter. Assistant United States Attorney Nolan D. Paige and Special Assistant United States Attorney Brian Ebarb, who was assigned from the Orleans Parish District Attorney’s Office, were in charge of the prosecution.
Leader of Bank Fraud Scheme Involving over 200 Victims Sentenced to over 5 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Tariq Hicks, age 48, of Owings Mills, Maryland, today to 65 months in prison, followed by three years of supervised release, for bank fraud conspiracy and aggravated identity theft arising from a scheme to use stolen credit information of more than 200 victims to defraud financial institutions. Judge Bredar also ordered Hicks to pay restitution of $61,030.78, and to forfeit the credit and identification card counterfeiting equipment seized during the investigation. In a separate case, Judge Bredar sentenced Hicks to 21 months in prison, for being a felon in possession with a gun, which is to be served concurrent to the sentence for the fraud scheme.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Chief James W. Johnson of the Baltimore County Police Department.
According to his plea agreement, from at least June 2013, through December 18, 2013, Hicks conspired with Shivani Patel, Eddie Carey, Ishia Cason, and others to defraud financial institutions by accessing stolen credit card and debit card accounts belonging to real people and using counterfeit cards encoded with the stolen account information to make unauthorized purchases.
Hicks purchased the stolen account information over the internet. Hicks and Patel used a computer and a “reader-writer” to encode the stolen credit and debit card information onto existing credit cards, gift cards, or similar cards, which were sold or distributed to co-conspirators, such as Carey and Cason, who used them and provided the bulk of the proceeds to Hicks.
Hicks also purchased or obtained over the internet “credit profiles” containing the identity information of victims, then obtained full credit reports for these victims. Using the information from the credit reports, Hicks sent co-conspirators into stores where the victims had existing credit accounts, with the victim’s personal identity information so that they could “authenticate” themselves as the victim. The co-conspirators, including Patel, Carey and Cason, would then make purchases on the existing accounts (called “account takeover”). Using the victims’ credit information, Hicks also directed the conspirators to apply for new credit accounts at other stores in the victim’s identity, and then use that “instant credit” to make purchases before the victim learned of the account.
For all of these schemes, Hicks obtained fraudulent drivers’ licenses which bore the information of the victim, but the photograph of a co-conspirator. The co-conspirators could then use the counterfeit license to establish their identity as the victim.
Hicks also instructed Patel, Carey and others to travel to other states to engage in the fraud. As they traveled, the conspirators used counterfeit cards in victims’ names to rent hotel rooms and automobiles.
On December 18, 2013, a search warrant was executed at Hicks’ residence, where he lived with Patel and Carey. Located on the dining table in the kitchen area was a complete set up for the fraud scheme, including a computer with the credit profiles and credit reports on it, a reader/writer device, credit cards in various states of manufacture, money gram receipts for payments for the stolen credit card numbers and profiles, and lists of personal identity information. Also recovered were dozens of credit cards bearing victims’ names and accounts, as well as dozens of fraudulent identification to match the credit cards, all bearing the information of the victims but the photographs of co-conspirators. In Hicks’ bedroom was a receipt for a storage unit which was rented in a false identity used by Patel. A search warrant was executed on the storage unit and a duplicate “mill” was located, including an embosser to manufacture embossed credit cards, and boxes containing hundreds of blank plastic cards ready for counterfeiting. There were also over 150 cards in various states of manufacture.
According to his plea agreement in the gun case, during the search law enforcement also recovered a loaded .22 caliber handgun and ammunition from a safe found in Hicks’ bedroom. As the result of a previous felony conviction, Hick was prohibited from possessing a gun or ammunition.
Over 450 compromised accounts were compiled from the evidence seized from the residence and storage locker, although most had not yet been used in the scheme. There were over 200 victims, including businesses and financial institutions which sustained an actual loss and victims who had their identities compromised in the conspiracy. Based on the individual victims and credit accounts which were recovered from the search warrant, actual losses associated with the scheme are $61,030.78.
Shivani Patel, age 30 of Reisterstown, Maryland; Eddie Carey, age 32; and Ishia Biff Cason, age 36, both of Baltimore, pleaded guilty to bank fraud conspiracy and aggravated identity theft. Judge Bredar scheduled sentencing for Cason on August 5, 2016, at 2:00 p.m., and for Carey and Patel on September 30, 2016, at 2:00 and 3:00 p.m., respectively.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from 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 HSI Baltimore, the U.S. Secret Service, and Baltimore County Police Department for their work in the investigations. Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine, who is prosecuting the case.
Lead defendant in fraud scheme sentenced in Federal CourtRead the Press Release
Evansville--United States Attorney Josh J. Minkler, today announced that an Evansville man has been sentenced in federal court for his role in a scheme to defraud insurance companies by staging automobile crashes. Michael W. Burris, Sr. 58, was sentenced to 115 months (9 1/2 years) years imprisonment by U.S. District Chief Judge Richard L. Young.
“The Burris family is the face of organized crime in the Evansville area,” said Minkler. “Michael Burris Sr. put countless public safety officials in harm’s way by calling them to emergency runs that were staged. Further, we all pay for his crime through higher insurance premiums, and increased health care and Medicare costs.”
Between 2008 and 2014, Michael W. Burris, Sr. 58, and others, planned a series of automobile crashes in and around Evansville. They recruited persons to participate in the staged crashes, made false police reports about the crashes, and then filed claims with insurance providers for “injuries” suffered in the crash which were self-inflicted or fabricated.
In several scenarios, members of the Burris family conspiracy acquired an automobile to use in the staged crash and made certain the vehicle was insured or obtained insurance just weeks before the staged crash. They would then recruit someone to crash the vehicle in a remote area, into a tree or other fixed object causing significant damage. After the crash, the driver would leave the scene and other recruited participants waiting nearby would enter the vehicle and wait for emergency personnel to respond. They would then make a false police report and be taken to the hospital for their purported injuries. In 2008 at least two Lifeline helicopters were used to transport co-conspirators. Vehicles were often loaded with three or four people, some of which were minors and pregnant women after the staged crash to maximize insurance claims.
Burris Sr. and his conspirators purposely injured the “victims” to create an appearance that they sustained the injuries in the crash. They did this by punching them in the face, cutting their face with a razor blade, hitting them with wooden or metal poles and using a wire brush on their forehead.
Burris and other conspirators instructed the crash participants on how to appear injured by not exiting the vehicle under their own power, using emergency medical resources, and running up medical expenses through hospital stays. He had the “victims” submit false insurance claims and would coach them on how to answer questions from the insurance representatives. When the crash participants received their injury claim checks from the insurance companies, Burris and the participants would go directly to the bank on which the check was written, get cash, and divide it among the conspirators.
This case was investigated by the United States Secret Service, United States Postal Inspection Service, Evansville Police Department, Indiana State Police, and the Federal Bureau of Investigation. The Vanderburgh County Sheriff’s Office, the United States Marshal Service, and the Bureau of Alcohol Tobacco Firearms and Explosives assisted in the arrest of the 36 persons charged in the indictment today.
"Over the last year and half, the Secret Service has tirelessly pursued justice with the assistance of many other federal, state and local agencies,” said Assistant Special Agent in Charge Paul Dvorak. “Insurance fraud is not a victimless crime. This type of fraud can have a significant detrimental effect on the economy of our community. We are proud that the significant and numerous arrests made here today will have a positive impact on the city of Evansville and hopefully deter similar crimes in the future.”
“The U.S. Postal Inspection Service will continue to strongly pursue its mission of investigating mail fraud crimes and protecting the US Postal Service and its customers,” stated Inspector in Charge, Tommy Coke, Pittsburgh Division, U.S. Postal Inspection Service.
“When I started my career in retail loss prevention over twenty years ago, the Burris family and their associates were one of the first criminal groups I dealt with,” said Evansville Police Chief Billy Bolin. “It would be nice if they learned from their past mistakes, but it appears they’ve just become more sophisticated in their schemes.”
“I’m pleased the state police were able to play a role in advancing this investigation” said Indiana State Police Superintendent Doug Carter. “Financial crimes like this impact insurance premiums for honest people and this particular criminal enterprise also resulted in public safety resources responding to staged crash scenes,” Carter concluded.
17other individuals who were indicted in this case have plead guilty.
According to Assistant U.S. Attorneys Todd S. Shellenbarger and Kyle Sawa who are prosecuting this case for the government, Burris Sr must also serve three years of supervised release after his sentence.
Last Member of Mortgage Fraud Conspiracy Involving Luxury Condominiums Is Handed Down A 27 Month SentenceRead the Press Release
CHARLOTTE, N.C. – Late yesterday, Chief U.S. District Judge Frank D. Whitney sentenced the last member of a mortgage fraud conspiracy involving luxury condominiums in Oak Island, N.C., announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Miriam Baer, Executive Director of the North Carolina Real Estate Commission join U.S. Attorney Rose in making today’s announcement.
According to filed court documents and today’s sentencing hearing, throughout 2007 and 2008, Antoine Johnson, 40, of Davidson, N.C., and seven other co-conspirators carried out a mortgage fraud scheme involving luxury condominiums in Oak Island. According to court records, Johnson, who operated as a promoter for the mortgage fraud conspiracy, controlled A&J Entertainment, Inc. (A&J Entertainment), a company used by the conspiracy to funnel kickbacks derived from the fraudulent scheme and to support false or inflated statements of employment and income in mortgage loan applications.
Court documents show that the co-conspirators perpetrated the scheme by recruiting individuals who agreed to buy condominiums in their name but had no intention of living in the properties or making payments to the corresponding mortgage loans (commonly referred to as “straw buyers”). The builder agreed to sell the units to the conspiracy’s straw buyers at an inflated price, causing the lenders to issue mortgage loans based on the inflated prices. Then at closing, the closing attorney prepared separate accounting statements instructing the builder to pay the difference between the true price and the inflated price of the condominiums to one or more of the conspirators.
According to court records, the conspirators induced mortgage lenders to issue mortgage loans, by submitting loan packages that contained forged documents and fraudulent information about the buyers’ income and employment. In some instances, the co-conspirators persuaded and bribed a bank employee to provide a bogus verification of deposit as support for the fraudulently obtained loan. Over the course of the fraudulent scheme, the conspirators caused a total of loss of approximately $4.5 million involving approximately 20 properties.
Court records indicate that Johnson operated as promoter in the scheme, helping to bring the transactions together, for which he received approximately $200,000 in kickbacks funneled through A&J Entertainment’s bank account.
The other seven defendants involved in this fraudulent scheme were previously sentenced as follows:
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Robert Davis, Jr., 41, of Charlotte, was sentenced to 46 months in prison and two years of supervised release.Davis operated as a real estate agent for the scheme.
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Robert Mahaney, Jr., 55, of Ridgeway, S.C., was sentenced to 30 months in prison and two years of supervised release.Mahaney was a mortgage broker for the conspiracy.
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Ahmed H. Green, 37, of Charlotte, was sentenced to 27 months in prison and three years of supervised release.Green acted as a promoter and sometimes as a straw buyer for the conspiracy.
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Carisa L. Majesky, 49, of Charlotte, was sentenced to 24 months in prison followed by two years of supervised release.Majesky operated as a real estate agent for the scheme.
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Somer Bey, 51, of Charlotte, was sentenced to 17 months in prison followed by one year of supervised release.Bey was a real estate agent for the scheme.
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Eric Marlon Davis, 43, of Charlotte, was sentenced to nine months in prison and one year of supervised release, nine months of which in home detention. Davis was a promoter in the scheme.
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Danielle Anderson, 41, of Charlotte, was sentenced to six months in prison and one year of supervised release six months of which in home confinement. Anderson was a bank employee who participated in the scheme.
Johnson will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. All federal agencies are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Rose thanked the FBI and the North Carolina Real Estate Commission for their investigation of this case. Assistant United States Attorney Maria Vento prosecuted the case.
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Lackawanna Man Sentenced on Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney William J. Hochul Jr. announced today that Shavon Royal, 21, of Lackawanna, NY, who was convicted of possession with intent to distribute, and distribution of, cocaine base within 1,000 feet of public housing property, was sentenced to time-served (14 months) by Senior U.S. District Court Judge William M. Skretny.
Assistant U.S. Attorney Edward H. White, who handled the case, stated that on May 30, 2014, the defendant sold approximately three grams of crack cocaine to a confidential informant working with the Federal Bureau of Investigation. On August 25, 2014, Royal sold approximately two grams of crack cocaine to a confidential informant working with officers of the Lackawanna Police Department. The sale occurred within 1,000 feet of the Gates Housing Projects in Lackawanna.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, and the Lackawanna Police Department, under the direction of Chief James L. Michel.
Keshena Man Charged with AssaultRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on June 28, 2016, a federal grand jury returned an indictment against Curtis M. Boivin (age: 48) of Keshena, Wisconsin, charging him with assault with a dangerous weapon in violation of Title 18, United States Code, Section 113(a)(3); and assault resulting in serious bodily injury in violation of Title 18, United States Code, Section 113(a)(6). If convicted of either charge, Boivin faces a maximum of 10 years in prison, a $250,000 fine, and three years of supervised release.
The indictment alleges that on January 23, 2016, Boivin assaulted an individual on the Menominee Indian Reservation by striking him in the head and arm with a shovel, causing serious bodily injury.
Boivin is scheduled to appear on July 7, 2016, at 1:30 p.m. before the Honorable James Sickel, Magistrate Court Judge. A trial date will be set at that time.
This case was investigated by the Federal Bureau of Investigation and Menominee Tribal Police Department and prosecuted by Assistant United States Attorney William Roach.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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Kentucky Man Sentenced to 45 Years in Prison for Kidnapping ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Danville, Ky., man who carjacked a vehicle in Kansas City, Mo., and forced its owner to accompany him as he drove across the state, was sentenced in federal court today.
“During a week-long, multi-state violent crime spree, this lifelong criminal terrorized several victims, including young children, and endangered the lives of many innocent people,” Dickinson said. “His violent crimes were horrific; in fact, the victim in this case believed he was about to die and it was only through his own heroic efforts that he escaped.”
Robert C. Caldwell, 26, of Danville, was sentenced by U.S. District Judge Beth Phillips to 38 years in federal prison without parole, plus a consecutive sentence of seven years in prison for a firearm violation.
On Feb. 4, 2016, Caldwell pleaded guilty to participating in a kidnapping conspiracy, one count of kidnapping, one count of carjacking, one count of using a firearm during a crime of violence and one count of being a felon in possession of a firearm.
In January 2015, Caldwell and an accomplice (who is considered a juvenile in the federal system but has been charged as an adult in state court) robbed and kidnapped a 68-year-old man at gunpoint, attacked a young mother with her infant children, and robbed and kidnapped a 13-year-old child at gunpoint.
According to court documents, Caldwell stole a .380-caliber semi-automatic pistol and a truck in Kentucky prior to committing the federal offenses for which he was convicted in this case. Caldwell and his accomplice drove to Columbia, Mo., and met some friends from prison who arranged for a marijuana deal in St. Joseph, Mo. Their plan was to rob the drug dealer, but this plan fell through and they found themselves in Kansas City, Mo., with no money and no gas. They began burglarizing several vehicles in the Grandview, Mo., area and were able to avoid arrest following a high speed chase. They abandoned the stolen truck and ran into a wooded area near the residence of their first kidnapping victim.
Caldwell and his accomplice lay in wait outside the home of a 68-year-old Kansas City, Mo., man at about 5:30 a.m. on Jan. 22, 2015. They abducted the victim at gunpoint as he was leaving his home. He was forced to hand over his keys to his van, his wallet and cash. The victim was forced into his van, a 1998 Chevrolet CK 1500. He was beaten by Caldwell and his accomplice and struck in the head with the handgun.
The victim told law enforcement officers that he was driven around to multiple ATMs, but he was covered with a blanket most of the time and was unable to see the locations where the carjackers attempted to use his debit card. He couldn’t remember his PIN number so they were unable to get cash, which made them angry. They repeatedly threatened his life and that of his wife. The kidnappers pretended to be on the phone with an accomplice who was holding his wife hostage; at one point after another failed ATM attempt, they informed him they had killed his wife, which was false.
According to court documents, they continued to drive and stopped at a drive-through restaurant, where one of the men sat next to the victim and shoved the barrel of the gun into his mouth, chipping his teeth, and told him that he would kill him if he moved. After getting food, they tied his hands together with a boot strap and had him lying in the floor with a blanket over his face so he couldn’t see. They continued driving and made several stops for purchases with the victim’s credit and debit cards.
Law enforcement authorities, who had been contacted by the victim’s wife, were tracking the use of the victim’s credit and debit cards as they were used or attempted to be used along I-70 eastbound. Investigators obtained surveillance photos and video from some of the locations.
When they arrived at a rest stop, according to court documents, Caldwell and his accomplice both fell asleep. The victim managed to untie his hands and retrieve a homemade 45-pound weight from under the seat of the van. He struck both of the carjackers in the head (causing a gash above the eye of one of them) and made an attempt to escape, but was unsuccessful. He was then beaten heavily by both men.
They began driving again, and the victim pretended to be knocked out. The driver of the van was having trouble maneuvering the large van while holding the gun, so he sat the gun on the floorboard so he could use both hands to steer the vehicle. The victim lunged for the handgun and pointed it at the two kidnappers as he demanded they pull over. When the vehicle pulled over, the driver made a move towards the victim, who pulled the trigger of the loaded gun, but it failed to fire. The victim quickly racked the slide to chamber a round, but both men had fled from the vehicle with the keys.
The victim also ran from the vehicle. As he ran down the street in Jennings, Mo., he turned and saw the two carjackers had returned to the vehicle and were slowly driving in his direction. The victim hid between several houses as he watched them drive away in his van. He then contacted the police.
According to court documents, Caldwell and his accomplice returned to the highway and drove through the night. They stopped the van at a Lynnville, Ind., high school around 5:45 p.m. They approached their next victim, a mother with three children, in the parking lot of the high school. The victim was holding her 2-year-old daughter in her arms when Caldwell approached her with a knife and demanded the backpack she was carrying. After taking the backpack, Caldwell pushed her and daughter to the ground, resulting in injuries to her arm.
Caldwell and his accomplice traveled back to Kentucky. Caldwell crashed the stolen van in Bardstown, Ky., and stole a Mitsubishi car near the scene of the crash.
According to court documents, Caldwell kidnapped a 13-year-old victim in Windsor, Ky., on Jan. 27, 2015. Caldwell, who was wearing a mask, approached the child victim with a rifle in his hands and demanded the keys to the Jeep in the driveway. The child victim told him the keys were in the Jeep. Caldwell then forced the child victim into the Jeep with him and put a blanket over his head. He eventually dropped off the child victim near a store a few miles away.
Caldwell later led law enforcement officers on a high-speed pursuit, at speeds up to 85-90 miles per hour. According to court documents, Caldwell was driving erratically in an attempt to flee, passing vehicles on the shoulder and forcing vehicles off the road, almost causing them to crash. After exiting the highway, Caldwell lost control of the Jeep and crashed over a curb into a yard. The Jeep appeared to be stuck, at which time a pursuing officer got out of his patrol car with his gun drawn, approached the Jeep and ordered Caldwell out. Caldwell did not surrender. Instead, he got the Jeep unstuck and drove through a busy parking lot at a high rate of speed, nearly striking several people. A high school in the area was placed on lock down because this chase was within 300 yards of the school. The chase ended when Caldwell drove the Jeep over an embankment and into a creek. Caldwell was apprehended after he exited the vehicle and fled into the woods.
This case was prosecuted by U.S. Attorney Tammy Dickinson and First Assistant U.S. Attorney David M. Ketchmark. It was investigated by the FBI and the Kansas City, Mo., Police Department.