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21 June 2016
Anne Arundel County Man Sentenced to over 8 Years in Federal Prison for Possession of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Sergei William Noack, age 23, of West River, Maryland, today to 97 months in prison, followed by 25 years of supervised release, for possession of child pornography. Judge Russell also ordered that upon his release from prison Noack must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Anne Arundel County Police Chief Tim Altomare; and Anne Arundel County State’s Attorney Wes Adams.
According to his plea agreement, on May 8, 2015, an Anne Arundel County Police Department investigator received two Cybertips from the National Center for Missing and Exploited Children that had been received from an internet service provider. The tips involved an individual, later determined to be Noack, who had: uploaded to his computer an image depicting two prepubescent male minors engaging in sexually explicit conduct; and, sent a photo of a prepubescent minor to another individual and stated via chat that he was having sexual contact with the minor.
That same day, a search warrant was executed at Noack’s residence. Investigators seized his desktop computer, two external hard drives, and his cell phone. Noack advised law enforcement that he had thousands of images of child pornography on his computer, which he searched for and collected from the internet. Noack admitted that he likes images and videos depicting bondage. Noack admitted that he meets people online in websites and chat rooms, then moves to applications that conceal the identity of the user to trade child pornography files with those people.
A preliminary forensic examination of the seized items revealed at least eight videos and 90 images children engaged is sexually explicit conduct on the desktop computer and external hard drive, including numerous files that portray sadistic or masochistic conduct or other depictions of violence. One of the videos was surreptitiously recorded by Noack and depicted a minor prepubescent male using the bathroom in Noack’s home. Noack also stated that approximately two to three years earlier he was alone with a prepubescent minor who was visiting his home and that he touched the back and stomach of the prepubescent minor. The minor was interviewed in 2015 and stated that Noack would give him a cookie to take off his shirt and then touched him on his bare chest and stomach. The minor stated that Noack attempted to put his hands under the minor’s pants, towards his genitals, but the minor moved away. In 2012, Noack sent frequent text messages to the minor, often declaring his love for the minor.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Anne Arundel County Police Department and Anne Arundel County Police Department for their work in the investigation and recognized Anne Arundel County Assistant State’s Attorney Anastasia Prigge, who handled the state prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the federal case.
Anchorage Woman Charged with $239,000 Healthcare FraudRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that an Anchorage woman has been charged in a 20-count indictment alleging that she devised a scheme to defraud the state of Alaska Medicaid Program of over $239,000.00.
Mi Ran Yu, 40, of Anchorage was charged with a scheme to defraud by intentionally misrepresenting the health condition of her parents in order for them to receive “personal care assistant” benefits from the state of Alaska Medicaid Program. Personal care assistant benefits are available to those persons who qualify to receive them, such as the disabled elderly and the blind, and are designed to allow a person to receive assistance so that they can remain in their home rather than be placed in a skilled care setting. The indictment alleges that Yu herself received approval to provide personal care assistant services for her parents when she knew that they did not qualify for the Medicaid benefits. The indictment also alleges that through physical surveillance, it was documented that her parents’ health conditions had been greatly exaggerated as they were observed and videotaped riding bicycles, lifting heavy bags of potting soil, and walking significant distances unaided by another person or a device such as a walker or a cane. In addition, it is alleged that the surveillance documented that Yu had billed Medicaid for personal care assistant services which she had not provided to her parents.
According to Assistant U.S. Attorney Joseph Bottini, who presented the case to the grand jury, the law provides for a maximum sentence of 20 years in prison, and a fine of $250,000.00. Restitution is also typically sought in such cases.
The State of Alaska Medicaid Fraud Control Unit and the Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Analogic Subsidiary Agrees to Pay More than $14 Million to Resolve Foreign Bribery ChargesRead the Press Release
A subsidiary of Massachusetts technology company Analogic Corporation entered into a non-prosecution agreement and agreed to pay a $3.4 million penalty today to resolve the government’s investigation into improper payments made in Russia and elsewhere in violation of the Foreign Corrupt Practices Act (FCPA), announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Carmen M. Ortiz of the District of Massachusetts.
According to admissions made in the resolution documents, BK Medical ApS, a manufacturer of ultrasound equipment headquartered in Denmark, engaged in a scheme with its distributor in Russia to make improper payments to third parties using fictitious invoices, falsely book those third-party payments and cause Analogic to falsify its books and records. BK Medical admitted that, as part of the scheme, after the terms of a sale had been agreed upon, the distributor requested that BK Medical issue invoices that falsely inflated the sales price on the equipment. The distributor then overpaid BK Medical the inflated amount and BK Medical transferred the excess funds to third parties as directed by the distributor, the company admitted. BK Medical had no legitimate business relationship with those third parties and had not conducted due diligence on them, it admitted. According to admissions in the resolution documents, at least some of these payments ultimately went to doctors employed by Russian state-owned entities. Although the scheme involving its Russian distributor was the most extensive, BK Medical also admitted that it engaged in similar schemes with distributors in five other countries. BK Medical admitted that its conduct – creating and maintaining these fictitious invoices, representing to Analogic that BK Medical was complying with all Analogic accounting policies and signing Sarbanes-Oxley subcertifications – caused Analogic to falsify its books, records and accounts in violation of the FCPA.
As part of the non-prosecution agreement, BK Medical has agreed to pay the criminal penalty, to continue to cooperate with the department and with foreign authorities in any ongoing investigations and prosecutions relating to the conduct, including of individuals, to enhance its compliance program and to periodically report to the department on the implementation of its enhanced compliance program. The department reached this resolution based on a number of factors. Among other factors, BK Medical received credit for its self-disclosure and its remediation, including terminating the officers and employees responsible for the corrupt payments. It received partial credit for cooperation because, as described in the non-prosecution agreement, it did not initially disclose certain relevant facts that it learned in the course of its internal investigation. Otherwise, by the conclusion of the investigation, BK Medical had provided to the department all relevant facts known to it, including information about individuals involved in the FCPA misconduct.
In a related matter, Analogic reached a settlement today with the U.S. Securities and Exchange Commission (SEC) under which it agreed to pay $7,672,651 in disgorgement and $3,810,311 in prejudgment interest.
The FBI’s Boston Field Office investigated the case. Trial Attorney Aisling O’Shea of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Ryan DiSantis of the District of Massachusetts’ Public Corruption Unit prosecuted the case. The SEC provided valuable assistance to the prosecution. The Criminal Division’s Office of International Affairs also provided assistance.
Analogic Subsidiary Agrees to Pay More than $14 Million to Resolve Foreign Bribery ChargesRead the Press Release
BOSTON – A subsidiary of Massachusetts technology company Analogic Corporation entered into a non-prosecution agreement and agreed to pay a $3.4 million penalty today to resolve the government’s investigation into improper payments made in Russia and elsewhere in violation of the Foreign Corrupt Practices Act (FCPA), announced U.S. Attorney Carmen M. Ortiz and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
According to admissions made in the resolution documents, BK Medical ApS, a manufacturer of ultrasound equipment headquartered in Denmark, engaged in a scheme with its distributor in Russia to make improper payments to third parties using fictitious invoices, falsely book those third-party payments and cause Analogic to falsify its books and records. BK Medical admitted that, as part of the scheme, after the terms of a sale had been agreed upon, the distributor requested that BK Medical issue invoices that falsely inflated the sales price on the equipment. The distributor then overpaid BK Medical the inflated amount and BK Medical transferred the excess funds to third parties as directed by the distributor, the company admitted. BK Medical had no legitimate business relationship with those third parties and had not conducted due diligence on them, it admitted. According to admissions in the resolution documents, at least some of these payments ultimately went to doctors employed by Russian state-owned entities. Although the scheme involving its Russian distributor was the most extensive, BK Medical also admitted that it engaged in similar schemes with distributors in five other countries. BK Medical admitted that its conduct – creating and maintaining these fictitious invoices, representing to Analogic that BK Medical was complying with all Analogic accounting policies and signing Sarbanes-Oxley subcertifications – caused Analogic to falsify its books, records and accounts in violation of the FCPA.
As part of the non-prosecution agreement, BK Medical has agreed to pay the criminal penalty, to continue to cooperate with the department and with foreign authorities in any ongoing investigations and prosecutions relating to the conduct, including of individuals, to enhance its compliance program and to periodically report to the department on the implementation of its enhanced compliance program. The department reached this resolution based on a number of factors. Among other factors, BK Medical received credit for its self-disclosure and its remediation, including terminating the officers and employees responsible for the corrupt payments. It received partial credit for cooperation because, as described in the non-prosecution agreement, it did not initially disclose certain relevant facts that it learned in the course of its internal investigation. Otherwise, by the conclusion of the investigation, BK Medical had provided to the department all relevant facts known to it, including information about individuals involved in the FCPA misconduct.
In a related matter, Analogic reached a settlement today with the U.S. Securities and Exchange Commission (SEC) under which it agreed to pay $7,672,651 in disgorgement and $3,810,311 in prejudgment interest.
The FBI’s Boston Field Office investigated the case. Assistant U.S. Attorney Ryan DiSanitis of Ortiz’s Public Corruption unit and Trial Attorney Aisling O’Shea of the Criminal Division’s Fraud Section prosecuted the case. The SEC and the Criminal Division’s Office of International Affairs provided assistance.
Alexandria woman pleads guilty to stealing more than $77,000 in Social Security benefit paymentsRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that a woman from Alexandria pleaded guilty Monday to stealing more than $77,000 in Social Security benefit payments from her deceased mother’s bank account.
Sherilyn Ann Dowden, 59, of Alexandria, pleaded guilty before U.S. District Judge Dee D. Drell to one count of theft of government property. According to the guilty plea, Dowden stole $77,445 in Social Security benefit payments from July 1, 2009 until March 31, 2015. Dowden wrote checks to herself and family members from an account for her deceased mother that the Social Security Administration (SSA) was depositing money into. The SSA was unaware of Dowden’s mother’s death in June 2009, and Dowden did not inform SSA of it.
Dowden faces up to 10 years in prison, three years of supervised release, a $250,000 fine and restitution. A sentencing date of September 26, 2016 was set.
The SSA Office of Inspector General conducted the investigation. Assistant U.S. Attorney Brandon B. Brown is prosecuting the case.
71-Year-Old Pleads Guilty to Prescription and Heroin Drug Distribution, Witness Tampering, and Health Care FraudRead the Press Release
ROANOKE, VIRGINIA – A Roanoke man, who used a drug rehabilitation program in the Roanoke City jail to obtain sex partners in exchange for drugs, pled guilty yesterday to federal drug distribution, witness tampering, and health care fraud charges, United States Attorney John P. Fishwick, Jr., announced.
Gordon Reaves Parker, 71, of Roanoke, Virginia, waived his right to be indicted and pled guilty yesterday to an Information charging him with one count of conspiracy to distribute controlled substances, one count of tampering with a witness and one count of health care fraud.
“This defendant used a program designed to help those with horrible drug addictions for his own perverse sexual advances,” United States Attorney John P. Fishwick Jr. said today. “These victims, who were incarcerated, entered a rehabilitation program hoping to beat their addiction and better their lives. Upon release, they were fed drugs and taken advantage of by an entitled individual who believed the rules didn’t apply to him. As today’s conviction clearly shows, the rules apply to everyone equally.”
“These heinous acts committed by a soulless predator are the epitome of why law enforcement professionals do what we do: to protect the rights of everyday people,” DEA Washington Field Division Special Agent in Charge (SAC) Karl C. Colder said today. Innocents who are suffering from the ravages of addiction and do not have a voice of their own. Opioid addiction and overdose deaths have become the single greatest danger to the lives and health of our citizens. DEA’s resolve to confront this epidemic and the criminals, like Mr. Parker, who supply it is unwavering. We will hold accountable those who poison communities and destroy lives. The DEA would like to thank the United States Attorney's Office of the Western District of Virginia and the Virginia State Police in our concerted effort to identify and bring this evil and reckless person to justice.”
According to evidence presented at yesterday’s guilty plea hearing by Assistant United States Attorney Jennie L. M. Waering, Parker discovered the Alpha drug rehabilitation program in the Roanoke County Jail as a mechanism for obtaining sex partners in exchange for drugs. Parker initially met victim HW, then 28, when she was residing at the Roanoke Rescue Mission. Parker offered HW drugs in exchange for sex. HW was subsequently arrested and placed in the Roanoke City Jail in the Alpha drug intervention program. Parker kept in touch with HW by phone and put significant amounts of money in HW’s jail account.
Parker admitted yesterday to asking HW to introduce him to other young, good looking, Alpha drug program inmates who might be released from jail before HW. HW introduced Parker to JM, age 20 at the time. JM, in turn, introduced Parker to BH, age 25 at the time. JM and BH talked to Parker extensively on the telephone from jail. Parker put large amounts of money on the jail accounts of JM and BH. JM and BH subsequently introduced Parker to several other Alpha drug program inmates.
Evidence presented yesterday showed that Parker eventually made contact with at least ten women, between the ages of 18-27, many of whom he met while they were in jail in the Alpha drug program. Parker talked extensively to many of the women on the phone in conversations recorded by the jail and put money on their jail accounts. Parker promised these young women a variety of monetary gifts and promised to pay fines, child support and other expenses. Parker discussed sexual activities with them on the phone, describing what they would do together when they were released. When the women were released from jail, these women visited him at his Wipledale Avenue home and at his Rockbridge Court home, where he offered the women drugs (hydromorphone, oxycodone, morphine, oxymorphone, hydrocodone and heroin) and large monetary gifts in exchange for sex. This activity was repeated with more than ten drug addicted or recovering women and the drugs given to the women were obtained from prescriptions written for his disabled wife by a pain management physician.
In addition, Parker admitted yesterday that he asked a medical technician that cared for his wife and was in charge of distributing her pain medication, to lie to the federal grand jury to account for his use of the stockpiled controlled substances that were prescribed to his wife.
The investigation of the case was initiated by the Virginia State Police Bureau of Criminal Investigation and jointly conducted with the Tactical Diversion Squad of the Drug Enforcement Administration. Assistant United States Attorneys Jennie L. M. Waering and Charlene R. Day prosecuted the case for the United States.
20 June 2016
West Milford Township, New Jersey, Man Sentenced to Five Years in Prison for Receiving Sexually Explicit Images of ChildrenRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was sentenced today to 60 months in prison for receiving sexually explicit images of children from his computer, U.S. Attorney Paul J. Fishman announced.
Thomas Bachalis, 32, of West Milford Township, New Jersey, pleaded guilty on March 14, 2016, before U.S. District Judge Ester Salas to an information charging him with receipt of child pornography. Judge Salas imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
Bachalis previously admitted that in August 2013 he was a member of a publicly available peer-to-peer file sharing network on the internet, which he used to receive images of child sexual abuse.
In addition to the prison term, Judge Salas sentenced Bachalis to five years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Passaic County Sheriff’s Office, under the direction of Sheriff Richard H. Berdnik; and the West Milford Police Department, under the direction of Chief Timothy Storbeck, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Courtney A. Howard of the U.S. Attorney’s Office Criminal Division in Newark.
Two United States Postal Service Employees and One Contractor ArrestedRead the Press Release
SAN JUAN, Puerto Rico– On June 15, 2016, a Federal grand jury returned three separate indictments charging Travis L. Wilkerson, Jean Ostolaza-Cruz and Rubén Bautista-Alcántara with theft of government property, among other charges, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The United States Postal Service, Office of Inspector General is in charge of the investigation with the collaboration of the Puerto Rico Police Department.
Former USPS employee City Carrier Travis L. Wilkerson was charged with two counts of false statements to the Department of Labor (DOL), Office of Workers Compensation Program (DOL OWCP), two counts of false statements and fraud to obtain federal employees’ compensation, and one count of theft of government property. Travis L. Wilkerson alleged that he suffered an on the job injury on September 27, 2010. After returning to work, on February 22, 2012, Wilkerson alleged that he suffered a recurrence of the 2010 injury. Since February 22, 2012, Wilkerson has been receiving OWCP compensation benefits. On February 1, 2016 and on April 3, 2016, Wilkerson certified in the annual DOL EN-1032 Form that he was not employed, self-employed or involved in a business enterprise. According to the investigation conducted by the United States Postal Service, Office of Inspector General (USPS OIG), while receiving OWCP benefits, Wilkerson has been actively engaged in Wilkerson-Farms, a business that he owns that is dedicated to the sales and distribution of coffee, fruits and vegetables to the United States. The amount of compensation benefits that Wilkerson received illegally is approximately $30,685.00.
USPS Sales and Service/Distribution Associate Jean Ostolaza-Cruz faces charges of theft of government property and theft of USPS property. Jean Ostolaza-Cruz stole money orders and Collect on Delivery (CODs) funds while working at the Sabana Hoyos Post Office and Florida Post Office. Ostolaza-Cruz took money orders that were accountable to him in Sabana Hoyos Post Office and fraudulently imprinted and cashed them at the Florida Post Office. As part of the scheme, Ostolaza-Cruz unlawfully used the personal identifiable information of Sabana Hoyos Post Office customers to cash the money orders for his own use. In addition, Ostolaza-Cruz stole money from the CODs payments made by USPS customers for his personal use. The amount of property stolen by Ostolaza-Cruz is approximately $11, 562.07.
USPS Contractor Rubén Bautista-Alcántara was charged with 33 counts of mail theft and 33 counts of obstruction of correspondence. Since May 2015, USPS OIG received numerous inbound greeting cards that appeared to be previously opened and resealed and that were destined to be processed at San Juan GPO. As part of the investigation, on December 23, 2015, a Puerto Rico Police Department Officer who assisted the USPS OIG, conducted surveillance at the Muñoz Rivera Avenue and Margarita Street in Río Piedras, PR and observed an individual depositing greeting cards, that seemed to be previously opened and resealed. Upon investigation, this subject was later identified as Rubén Bautista-Alcántara, a Contract Mail Handler employed by Cargo Force, Inc., a USPS authorized depository located in Carolina, PR.
These cases are being prosecuted by Special Assistant U.S. Attorney Amanda Soto. Wilkerson and Ostolaza-Cruz are facing up to 10 years in prison for the theft of government property charges. Ostolaza-Cruz is also facing a two-year mandatory sentence for charges of aggravated identity theft. Bautista-Alcántara is facing up to five years in prison for the charges of obstruction of correspondence and mail theft.
Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty. The investigation is ongoing.
Topeka Man Pleads Guilty to Conspiracy in Interstate Sex Trafficking CaseRead the Press Release
TOPEKA, KAN. - A Topeka man pleaded guilty Monday to conspiring to operate an interstate sex trafficking business, Acting U.S. Attorney Tom Beall said.
Sean P. Hall, 46, Topeka, Kan., pleaded guilty to one count of conspiracy. In his plea, he admitted to conspiring with co-defendants to operate a Topeka-based prostitution business. At times, as many as 20 females were working as prostitutes for the organization. The leader of the organization rented houses where some of the prostitutes were allowed to live. The organization used Web sites, social media and cell phones to advertise sexual services and to keep track of prostitutes.
Hall admitted that in 2012 he started working for co-defendant Frank Boswell at Club Magic, a nightclub in Lawrence, Kan. Hall became a trusted employee and learned from Boswell how the prostitution business operated. Hall transported prostitutes to and from meetings with clients. He posted photos of prostitutes on Internet sites advertising their services. He also promoted the business by posting reviews of prostitutes on other Web sites that advertised sexual services.
Sentencing is set for Oct. 3. He faces a penalty of up to five years in federal prison and a fine up to $250,000 on each count.
Co-defendant Frank Boswell, 42, Topeka, Kan., is awaiting trial. Co-defendant Rachel Flenniken, 34, Topeka, Kan., pleaded guilty earlier this month and is set for sentencing Oct. 17.
Beall commended the Topeka Police Department, Homeland Security Investigations, the FBI and Assistant U.S. Attorney Christine Kenney for their work on the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Tohono O’odham Man Sentenced to over Eight Years Prison for Assault with a FirearmRead the Press Release
TUCSON, Ariz. – On June 17, 2016, Robert Kenneth Cooley, 46, of South Hickiwan, Ariz., and a member of the Tohono O’odham Indian Nation, was sentenced by U.S. Senior District Judge Frank R. Zapata to serve 99 months in prison for assault with a dangerous weapon and the use of a firearm during a crime of violence. Cooley had previously pleaded guilty to these offenses.
On June 9, 2014, in South Hickiwan, Ariz., on the Tohono O’odham Indian Nation, Cooley, a convicted felon, discharged a handgun outside of his residence. The victim, a neighbor of Cooley, and also a member of the Tohono O’odham Indian Nation, heard the gunshots and went outside to determine what was happening. As the victim walked toward Cooley, Cooley pointed his handgun at the victim’s face and threatened him. The victim feared for his life and immediately returned to his residence where his wife called 911. Cooley was located and arrested three days later.
The investigation in this case was conducted by the Tohono O’odham Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The prosecution was handled by Angela W. Woolridge, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-14-2148-TUC-FRZ
RELEASE NUMBER: 2016-052_Cooley
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Tax Service Worker Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Tamika Woods, 31, of Marion Junction, Alabama was sentenced for her participation in aiding and abetting in the filing of fraudulent tax returns. Court documents reflect that Woods worked for a tax service in the Selma area, and that tax returns were filed reflecting refunds that were not owed. Woods pled guilty to the charge in February of 2016.
United States District Court Judge Kristi K. Dubose imposed a sentence of five years’ probation and ordered restitution due to the Internal Revenue Service in the amount of $49,857. The judge found that Woods could not pay a fine, but she ordered the imposition of $100 as a special mandatory assessment.
The case was investigated by the IRS. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Tax Service Business Owner Sentenced to 4 ½ Years in Prison for Stolen Identity Tax Refund Fraud SchemeRead the Press Release
A tax service business owner was sentenced to 4 ½ years in prison for his participation in a stolen identity tax refund fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcements Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
Johny Wolf Jasmin, 32, of Boca Raton, was sentenced to 54 months in prison, followed by three years of supervised release as to Count 1 and one year of supervised release as to Count 10, and was ordered to pay joint and several restitution in the amount of $ 241,429. Jasmin previously pled guilty to one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286, and one count of aggravated identity theft in violation of Title 18, United States Code, Sections 1028A and 2.
According to court documents, Jasmin owned and operated a tax service business called Wolf Vision, Inc. located in Hollywood, Florida. During the course of the investigation, law enforcement learned three separate Electronic Filing Identification Numbers (EFINs) were used to file false and fraudulent tax returns from Jasmin’s business. One of those EFINs was assigned to co-defendant Carneisha Patrice Mitchell, 31, of Miami. Based upon this information, law enforcement executed a search warrant at Jasmin’s business and recovered computers, thumb drives, prepaid debit cards, and numerous documents that contained over 2,100 names, dates of birth, and social security numbers that belonged to living and deceased individuals.
In fact, a review of Jasmin’s personal income tax for the 2014 tax year showed that Jasmin obtained the name, date of birth and social security number of a child who had passed away and later used that information to fraudulently claim the deceased child as one of his dependents.
In addition, law enforcement learned that an IRS treasury tax refund check in the name of a deceased individual was deposited into Mitchell’s personal checking account. Thereafter, Mitchell used the money from the IRS treasury check for her personal use.
As a result of Jasmin and his co-conspirator’s fraudulent conduct, over 220 false and fraudulent federal income tax returns were filed with the IRS using stolen personal identifying information of living and deceased individuals. Further, over $1.5 million in tax refunds were sought from the false and fraudulent income tax returns filed from Jasmin’s tax business.
Co-defendant Mitchell was sentenced to three years of probation, and was ordered to pay restitution in the amount of $ 9,437. The defendant previously pled guilty to one count of theft of government funds, in violation of Title 18, United States Code, Sections 641 and 2.
Mr. Ferrer commended the investigative efforts of FBI, IRS-CI and ICE-HSI. This case is being prosecuted by Assistant U.S. Attorney Maurice A. Johnson.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Statement from Head of the Civil Rights Division Vanita Gupta on Mississippi’s Decision to Close Investigation into Murders of James Chaney, Andrew Goodman and Michael SchwernerRead the Press Release
Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, released the following statement on Mississippi Attorney General Jim Hood’s decision to close the investigation into the murders of James Chaney, Andrew Goodman and Michael Schwerner:
“During ‘Freedom Summer’ in 1964, James Chaney, Andrew Goodman and Michael Schwerner were brutally murdered while working as part of a massive campaign to register African-American voters in Mississippi. Their gruesome deaths shook the nation. The ensuing federal civil rights prosecution, which sought to bring their families a measure of justice, was a proud moment for the Justice Department. In 1967, federal prosecutors from the Civil Rights Division convicted eight defendants for violating the federal criminal civil rights conspiracy statute.
“The Justice Department has investigated this case three times over 50 years and has helped convict nine individuals for their roles in this heinous crime. In 2005, Edgar Ray Killen was convicted by a state jury of three counts of manslaughter based on new information that state and federal prosecutors discovered and pursued in 2000. With the passage of the Emmett Till Unsolved Civil Rights Crime Act in 2008, the department reopened our investigation into the incident again in 2010. The department’s focus during this third investigation honed in on determining whether sufficient admissible evidence existed to support further state prosecution against any surviving person for involvement in the murders.
“Mississippi Attorney General Hood has determined that despite one of the most intensely investigated and documented underlying investigations of any racially-motivated murder during the 1960s, followed by the exhaustive efforts of more recent reinvestigations, the passage of time has simply rendered additional prosecutions impossible. While legal and factual impediments sometimes prevent us from bringing cases we wish that we could, the Civil Rights Division remains dedicated to pursuing racially-motivated crimes wherever the facts allow.
“Chaney, Goodman and Schwerner gave their lives while struggling to advance the cause of civil rights for all. Though the reinvestigation into their heinous deaths has formally closed, we must all honor their legacy by forging ahead and continuing the fight to ensure that the founding promise of America is true for all of its inhabitants.”
St. Thomas Man Arrested for Making Threats in Interstate CommerceRead the Press Release
St. Thomas, USVI – Thomas Troy Bitter, 36, made his initial appearance in District Court today before Magistrate Judge Ruth Miller after his arrest on St. Thomas, Virgin Islands, for using his e-mail account to send threatening communications, United States Attorney Ronald W. Sharpe announced. Magistrate Miller remanded Bitter to the custody of the U.S. Marshals Service pending detention and preliminary hearings scheduled for June 22, 2016.
According to a criminal complaint filed in the District Court, Bitter used his e-mail account to send threatening communications to various law enforcement personnel including a federal law enforcement officer in St. Thomas and a federal judge in California. If convicted, Thomas faces a maximum sentence of five years in prison and a fine of up to $250,000.
This case is being investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Everard E. Potter.
United States Attorney Sharpe reminds the public that a criminal complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
St. Paul Man Pleads Guilty to Naturalization, Tax FraudRead the Press Release
United States Attorney for the District of Minnesota Andrew M. Luger today announced the guilty plea of MUHAMMED FATTY, 41, to multiple charges related to tax refund fraud and fraudulently obtaining U.S. citizenship. On June 15, 2016, FATTY pleaded guilty before Judge Donovan W. Frank to one count of unlawful procurement of naturalization and one count of making false claims in relation to tax refunds.
“Investigating refund fraud is a top priority for IRS Criminal Investigation,” said IRS Criminal Investigation Special Agent in Charge Shea Jones of the St. Paul Field Office. “Filing false tax returns is a serious crime that hurts innocent taxpayers. Law enforcement and the United States Attorney’s Office are serious about investigating these crimes and holding accountable those who defraud the government and taxpayers.”
According to documents filed in court, law enforcement became aware of the defendant’s scheme when U.S. Department of State consular officials identified a visa applicant using the same name as an individual already in the U.S., who had previously naturalized in 2013.
According to the defendant’s guilty plea and documents filed in court, in January 2015, FATTY devised a scheme in which he prepared and electronically filed a false tax return using the name and social security number of another person and knowingly made and presented to the Internal Revenue Service a claim for refund in the amount of $9,332. From 2006 until 2015, the defendant falsely used the name and Social Security number of another person and fraudulently claimed and received tax refunds from the United States in the amount of $46,109. In addition, as of May 2016, under the defendant’s true name and Social Security number, the defendant owed the Internal Revenue Service $7,407 in back taxes and fees.
According to the defendant’s guilty plea and documents filed in court, FATTY attempted to obtain medical assistance by fraudulently using the name and social security number of another person. FATTY has fraudulently received approximately $7,857 in benefits, involving premiums paid by the State of Minnesota.
This guilty plea resulted from an investigation by the U.S. Department of State’s Diplomatic Security Service (DSS), the Internal Revenue Service’s (IRS) Criminal Investigation Division and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Special Assistant United States Attorney Ryan R. Wood is prosecuting the case.
Defendant Information:
MUHAMMED FATTY, 41
Little Canada, Minn.
Convicted:
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Unlawful procurement of naturalization, 1 count
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Making a false, fictitious or fraudulent claim, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
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Springfield Woman Pleads Guilty to Cashing Fraudulent Tax Refund ChecksRead the Press Release
BOSTON – A Springfield woman pleaded guilty on Friday, June 20, 2016, in connection with cashing more than $1.3 million in fraudulent income tax refund checks.
Evelyn A. Manzueta, 52, pleaded guilty to theft of government property. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Sep.12, 2016.
From January 2012 to May 2013, Manzueta orchestrated the cashing of 236 fraudulent tax refund checks. She cashed nearly $500,000 through her own accounts and enlisted friends and family members to cash the remaining checks through their accounts. The scheme cashed checks totaling $1,377,376.
The U.S. Department of Treasury issued the checks based on tax returns, submitted by unknown individuals, which were later determined to be fraudulent. Although the tax returns used the names and Social Security numbers of real people living in Puerto Rico, their addresses were falsely listed as Massachusetts and New York. The tax returns also contained false employment information. Manzueta, knowing the tax return checks were fraudulent, cashed them through her bank accounts and the accounts of friends and family.
Robert Evans, of Wallkill, New York, Manzueta’s brother-in-law, previously pleaded guilty to cashing $517,714 in the fraudulent checks. He is scheduled to be sentenced on Oct. 12, 2016.
The charging statute provides a sentence of no greater than 10 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 Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement. The case is being prosecuted by Assistant U.S. Attorney Karen L. Goodwin of Ortiz’s Springfield Branch Office.
Slidell Man Pleads Guilty to Operating National Ponzi SchemeRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOHN SPOSATO, age 64, of Slidell, pled guilty today to wire fraud for his role in promoting and operating a national Ponzi scheme.
According to court documents, since approximately 2010, SPOSATO was affiliated with, owned, or operated numerous different companies, including Pegasus Investment & Development Corporation, LLC; Pegasus Investments; Oil Eaters, LLC; Organic Miracle Incorporation; S&J Corporate Properties, LLC; Pegasus Demolition & Debris Removal Service, LLC; and Pegasus Truck Lines, Inc. SPOSATO represented to potential investors that the companies were all investment entities that offered participants the chance to invest in various low-risk, high-reward investment vehicles, including international bank instruments, cutting edge oil remediation and recovery products, and real estate transactions. SPOSATO primarily relied upon word-of-mouth and e-mail correspondence, in which he fraudulently represented that he had knowledge and expertise in financial investing, to attract new investors. SPOSATO told investors that the alleged investments were safe, secure, and never at risk.
In fact, SPOSATO did not actually invest the money in any legitimate investment vehicle, instead using it to make retail purchases for himself and his friends for various goods and services, including luxury items such as a new Chevrolet Camaro for one girlfriend and breast augmentation surgery for another girlfriend. In total, between about January 2010, and April 2014, approximately forty-eight (48) individuals invested approximately $811,305 with SPOSATO and his companies.
To perpetuate his scheme, SPOSATO guaranteed extraordinarily high rates of return – rates much higher than market rates – for so called “guaranteed” investments to potential investors, such as a $25,000 investment in “oil-clean remediation work” in the Gulf of Mexico and another $25,000 investment in the purchase of “1,000,000 gallons of EP 55 Bio Fertile” fertilizer. SPOSATO promised that the first investment would result in a profit of $25,000 within approximately two weeks and the second investment would result in a profit of up to $3,000,000 within one year. SPOSATO provided prospective investors false or fraudulent documents to make the investments appear legitimate and to conceal the true nature of the Ponzi scheme. When investors became impatient, SPOSATO used new investor money to pay lulling payments to other investors, which he characterized as partial payments for investments with an overdue return, in an effort to give investors a false sense of security, to deceive investors into believing their money was invested legitimately, and to conceal the true nature of the Ponzi scheme.
SPOSATO faces a maximum term of imprisonment of not more than twenty (20) years, followed by up to three (3) years of supervised release, and a $250,000 fine per count. U.S. District Judge Susie Morgan set sentencing for October 5, 2016.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Six Gang Members Convicted of Four Murders and Multiple RobberiesRead the Press Release
NEWPORT NEWS, Va. – Three members of the Newport News street gang “Thug Relations,” were convicted by a federal jury of multiple murders and robberies, in addition to other crimes related to their criminal enterprise.
According to court documents and evidence presented at trial, “Thug Relations” was a criminal organization whose members and associates engaged in acts of violence, including five murders, numerous drug robberies and shootings. The jury convicted the three defendants of racketeering conspiracy with special verdicts on four separate murders; the murder of Aaron Sumler, on July 5, 2007; Lafayette Bailey on Dec. 15, 2009; Lloyd Robinson on Jan. 9, 2010; and Dominque Wharton on March 16, 2010.
The jury returned the verdict of Friday afternoon, also finding the Pridgen brothers guilty of VICAR murders, Hobbs Act robbery violations, felon in possession charges and use of a firearm resulting in murder. One of the felon in possession charges related to the murder of an innocent woman, Gale Perch, who was killed on Nov. 15, 2009, as she was in a car with the intended murder victim.
Name, Age, Hometown
Charges Convicted of
Sentencing Date
Eric Pridgen,
aka “Rabbit”, 33,
Newport News
Racketeering conspiracy, (including the murders of Lafayette Bailey, Lloyd Robinson and Dominque Wharton); multiple robberies; murder in aid of racketeering; use, carry, discharge of firearm resulting in murder, felon in possession of firearm and ammunition, conspiracy to interfere with commerce by robbery, and interference with commerce by robbery.
October 12
Hebert Pridgen, aka “Bok”, 29, Newport News
Racketeering conspiracy, (including the murders of Lafayette Bailey, and Lloyd Robinson, felon in possession of a firearm and ammunition, conspiracy to interfere with commerce by robbery, interference with commerce by robbery, murder in aid of racketeering, and, use, carry and discharge a firearm during a crime of violence resulting in murder.
October 13
Maurice McLain, aka “Mo”, 33, Newport News
Racketeering conspiracy, including the murder of Aaron Sumler.
October 12
Three other defendants, Douglas Ashby, Robbie Bowles and Antonio Johnson were charged in the same indictment, but pleaded guilty prior to trial.
Douglas Ashby, aka “Mance,” aka “Murder Mance,” and aka “Murder,” age 30, of Newport News, pleaded guilty on Nov. 12, 2015, to his participation in the racketeering conspiracy and admitted his involvement in the murders of Aaron Sumler and Lloyd Robinson. On March 16, 2016, he was sentenced to over 34 years in prison.
Robbie Bowles, aka “Rob,” age 31, of Newport News, pleaded guilty on Nov. 16, 2015, to his participation in the racketeering conspiracy and admitted his involvement in the murder of Aaron Sumler. On May 3, 2016, he was sentenced to 25 years in prison.
Antonio Johnson, age 30, of Newport News, pleaded guilty on Feb. 11, 2016, to using, carrying and discharging a firearm during and in relation to a crime of violence resulting in the murder of Lafayette Bailey. On May 11, 2016 he was sentenced to 20 years in prison.
Both Eric and Herbert Pridgen face a mandatory life sentence following their convictions on the murder in aid of racketeering charges. Maurice Mclain faces a maximum penalty of up to life in prison based on the special verdict form returned regarding the murder of Aaron Sumler. 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, Leslie R. Caldwell, Assistant Attorney General for the U.S. Department of Justice’s Criminal Division, John S. Adams, Special Agent in Charge of the FBI’s Norfolk Office, and Richard Myers, Chief of Police, Newport News Police Department made the announcement after the verdict was accepted by U.S. District Judge Raymond A. Jackson. Managing Assistant U.S. Attorney Howard J. Zlotnick, Assistant U.S. Attorneys Lisa R. McKeel and Brian J. Samuels, and Special Assistant U.S. Attorney Yvonne L. Garcia of the Criminal Division’s Organized Crime and Gang Section are 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. 4:14-cr-59.
Ship Owner, Operator and Engineers Found Guilty of Violating Pollution Laws, Falsifying Records and Scheming to DefraudRead the Press Release
The companies that own and operate a Greek shipping vessel and two engineers from the ship were convicted today in U.S. District Court in Seattle of 12 felony counts related to their dumping of oily waste at sea, announced U.S. Attorney Annette L. Hayes. The ship operator, ANGELAKOS (HELLAS) S.A., the ship owner, GALLIA GRAECA SHIPPING LTD, the Chief Engineer, KONSTANTINOS CHRYSOVERGIS and Second Engineer, TRYFON ANGELOU were found guilty of violating the Act to Prevent Pollution from Ships, Falsification of Records in a Federal Investigation, and engaging in a Scheme to Defraud the United States. The jury deliberated for three days following an eight-day jury trial. U.S. District Judge John C. Coughenour scheduled sentencing for September 16, 2016.
According to records filed in the case and testimony at trial, a cargo ship named the M/V Gallia Graeca travelled from China to Seattle in October 2015. During the voyage, a pollution-control device known as an oil water separator was inoperable. On October 16, 26 and 27, 2015, the defendants bypassed safeguards that prevent the discharge of oily water and discharged overboard approximately 5,000 gallons of oily bilge water. The defendants concealed these incidents from the Coast Guard by making false statements to inspectors, and making false statements and omissions in the ship’s oil record book. When Coast Guard inspectors asked the engineers to operate the oil water separator during the inspection, the engineers did so in such a way that the equipment appeared to be working properly even though it was not.
When Coast Guard inspectors examined the oil water separator they found its filters were clogged with oil and found oil residue in the overboard discharge piping. Records indicated the oil water separator had not been serviced for months prior to the voyage from China. According to the official oil record book presented to the Coast Guard, bilge water had not been discharged during the voyage to Seattle. However, the Coast Guard investigation discovered evidence that oily water had been discharged into the sea three times on its voyage from China.
Calling it “a voyage of deception and pollution,” prosecutors argued that the engineers tried to hide the pollution from the Coast Guard to avoid having the ship detained in Seattle. Keeping the ship on schedule was a benefit to the owners and operators who had a contract to move $25 million in goods out of Seattle. Shipping company executives had been in contact with the engineers about how they should present the log book for the Coast Guard inspection.
Falsification of Records in a Federal Investigation is punishable by up to 20 years in prison. Violating the Act to Prevent Pollution from Ships is punishable by up to six years of imprisonment. Scheming to Defraud the United States is punishable by up to five years in prison. Each count of conviction is also punishable by a $500,000 fine against each corporation, and $250,000 against each individual defendant.
The case is being prosecuted by Assistant United States Attorneys Seth Wilkinson and Matthew Diggs and by Special Assistant Attorney Stephen Bor. Mr. Bor is an attorney with the United States Coast Guard specially appointed to prosecute criminal cases in federal court.
The case is being investigated by the U.S. Coast Guard and the Environmental Protection Agency Criminal Investigation Division.
Senior NYPD Officials and Others Charged with Federal Public Corruption OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and William J. Bratton, Commissioner of the New York City Police Department (“NYPD”), announced today that Deputy Chief MICHAEL HARRINGTON, Deputy Inspector JAMES GRANT, and Sergeant DAVID VILLANUEVA of the NYPD were arrested this morning, along with a Brooklyn-based man, JEREMY REICHBERG, on bribery charges. HARRINGTON, GRANT, and REICHBERG were charged in Manhattan federal court with conspiring to commit honest services wire fraud for a bribery scheme involving the receipt of tens of thousands of dollars in meals, trips, home renovations, and other benefits in exchange for an array of official NYPD actions, including private police escorts, ticket fixing, and assistance in settling private disputes. VILLANUEVA, formerly a supervisor in the NYPD’s gun licensing division, was charged in Manhattan federal court with bribery offenses in connection with his receipt of cash bribes to expedite and approve gun licenses. In addition, the guilty plea of Police Officer RICHARD OCHETAL, who formerly worked in the gun licensing division, was unsealed today. OCHETAL pled guilty to accepting bribes in exchange for the approval of gun license applications, and is cooperating with the Government in the investigation.
Manhattan U.S. Attorney Preet Bharara said: “The alleged conduct violates the basic principle that public servants are to serve the public, not help themselves to cash and benefits just for doing their jobs. Jeremy Reichberg allegedly showered senior police officials, Commanding Officers Michael Harrington and James Grant, with bribes, and in exchange, got ‘cops on call,’ a private police force for themselves and their friends. As alleged, Sergeant David Villanueva and Officer Richard Ochetal in the NYPD’s gun licensing division were also on the take, issuing gun licenses in exchange for cash, liquor, and limo rides. It is heartbreaking to see police officers who have taken the oath to serve and protect allegedly bring dishonor to an institution and profession deserving of the greatest honor. I thank the FBI for their work on this important investigation and the NYPD for its commitment and courage to police itself.”
FBI Assistant Director-in-Charge Diego Rodriquez said: “The abuses of power alleged in this case are not victimless crimes. The victims are the citizens of New York, who rely on officers to fulfill their sworn duty. The victims are the upstanding police officers who do everything in their power to uphold the law and protect the public. The victims are public trust and confidence in law enforcement, both critical to ensuring public safety. The FBI, along with our partners, will continue to root out this kind of decay at every level in order to protect our citizens from the devastating consequences of corruption that undermines safety, and erodes the trust between law enforcement and the public.”
NYPD Commissioner William J. Bratton said: “These charges and today's arrests are a culmination of the joint investigative efforts of the NYPD's Internal Affairs Bureau along with the FBI and the US Attorney’s Office for the Southern District of New York. During the past three years, NYPD Internal Affairs and FBI investigators worked diligently in pursuing leads into alleged corrupt activity involving uniformed members of this department. Two separate investigations, by the NYPD and the FBI, merged seamlessly and resulted in today’s arrests of four members of the department as well as another individual. This investigation is not over and we will continue to work together with our law enforcement partners to go where the facts of these cases lead us.”
According to the allegations in the Complaint against GRANT, HARRINGTON, and REICHBERG; the Indictment against VILLANUEVA and Brooklyn-based gun license “expeditor” ALEX LICHTENSTEIN, a/k/a “SHAYA,” who had been previously charged; and the Information to which OCHETAL pled guilty, all unsealed today in Manhattan federal court[1]:
United States v. GRANT, HARRINGTON, and REICHBERG
For several years from approximately 2012 through 2015, REICHBERG, who described himself as a “community liaison” for the NYPD, along with another individual who had pled guilty and is now cooperating with the Government (“CW-1”), engineered a scheme to provide lavish benefits to high-ranking members of the NYPD, including GRANT and HARRINGTON, so as to be able to call upon those members for police-related assistance for themselves and their communities over time. GRANT and HARRINGTON, for their part, accepted numerous benefits and, in return, took several official police actions for REICHBERG and CW-1. GRANT was, throughout this time period, a high-ranking police official and commanding officer of a precinct in Brooklyn, before becoming a Deputy Inspector and the Commanding Officer of the 19th Precinct on the Upper East Side of Manhattan. HARRINGTON was an Inspector in Brooklyn North and, beginning around November 2013, the Executive Officer in the NYPD Chief of Department’s Office, which is responsible for overseeing all of the NYPD’s uniformed operations.
As alleged in the Complaint, among the benefits accepted by GRANT were a private jet trip to Las Vegas for the Super Bowl, costing $57,000 for the plane alone; a two-night stay in a hotel in Rome, worth more than $1,000; contracting work on his home worth approximately $12,000; and jewelry. Among the benefits accepted by HARRINGTON were private security work worth tens of thousands of dollars for a company he unofficially helped manage; hotel rooms for a trip to Chicago for his family worth in excess of $6,000; and thousands of dollars in dinners.
GRANT and HARRINGTON helped REICHBERG and CW-1 with numerous police-related requests. For example, both performed and arranged for police-related escorts for REICHBERG, CW-1, and their associates, at REICHBERG and/or CW-1’s request. Both diverted police resources to investigate private, civil matters. Both assisted with VIP access to parades and other New York City events. GRANT provided cards that enabled REICHBERG, CW-1, and their associates to avoid tickets when pulled over by police. GRANT also helped REICHBERG obtain a gun license from the NYPD, and attempted to help CW-1 obtain a gun license from the NYPD. HARRINGTON sent police resources to religious sites upon request.
REICHBERG and CW-1’s influence in certain spheres of the NYPD was, at a certain point, so significant as to have people believing that they had a say in promotions. REICHBERG and CW-1, for example, advocated for GRANT to become the Commanding Officer of the 19th Precinct, which GRANT ultimately did, and which led to them being permitted to make the call informing him of the news. REICHBERG also advocated for HARRINGTON to become a senior police official in Brooklyn after HARRINGTON left the Chief of Department’s office, which was unsuccessful. A judicially authorized wiretap on REICHBERG’s phone in early 2015 revealed numerous conversations in which REICHBERG was dispensing advice on promotions to members of the NYPD and taking steps to facilitate promotions.
United States v. VILLANUEVA and LICHTENSTEIN; United States v. OCHETAL
VILLANUEVA was, for many years, a Sergeant assigned to the NYPD’s Licensing Division, which is responsible for reviewing all applications for gun licenses submitted by residents of New York City. The Licensing Division receives approximately 5,000 applications for gun licenses per year. Licensing Division personnel review those applications both for disqualifying characteristics, such as prior felony convictions, and for other characteristics that lead to discretionary denials.
From at least 2012 through 2016, VILLLANUEVA was given cash bribes and other benefits by LICHTENSTEIN, who ran a business charging clients thousands of dollars to expedite their gun license applications. LICHTENSTEIN used some of the money paid by his clients to pay VILLANUEVA for his work in expediting and approving the applications for LICHTENSTEIN’s clients. OCHETAL, a Police Officer who worked under VILLANUEVA, did first-level reviews of many of these applications and was instructed to approve them. OCHETAL was compensated in the form of some of the cash that LICHTENSTEIN gave to VILLANUEVA.
In reviewing and approving applications for LICHTENSTEIN’s clients, VILLANUEVA and OCHETAL omitted some of the required checks, such as criminal history checks, and in other instances ran checks only after they approved licenses. They also approved applications despite red flags that, had they not been bribed, may have led those applications to be rejected. For example, they approved applications of individuals with prior arrests and previous allegations of domestic violence. In addition, VILLANUEVA and OCHETAL approved applications for licenses to carry firearms, which require certain business-related justifications, in scenarios were there was no real business justification for the request. A review of the applications of LICHTENSTEIN’s clients reveals that VILLANUEVA and OCHETAL were able to secure licenses for those clients often within weeks, whereas the process normally takes months to, in some instances, over a year. VILLANUEVA and OCHETAL did this for LICHTENSTEIN’s clients because of the cash payments coming from LICHTENSTEIN, as well as other benefits, such as limousine rides, bottles of liquor, and a wine tour.
* * *
GRANT, 43, of Staten Island, New York, HARRINGTON, 50, of the Staten Island, New York, and REICHBERG, 42, of Brooklyn, New York, have been charged with one count of conspiracy to commit honest services wire fraud, which carries a maximum term of 20 years in prison. VILLANUEVA, 42, of Valley Stream, New York, was charged with one count of bribery, which carries a maximum term of 10 years in prison, and one count of conspiracy to commit bribery, which carries a maximum term of five years in prison. LICHTENSTEIN, 44, of Pomona, New York, is charged with two counts of bribery, each of which carries a maximum term of 10 years in prison, and one count of conspiracy to commit bribery, which carries a maximum term of five years in prison. OCHETAL, 37, previously pled guilty to one count of bribery, which carries a maximum term of 10 years in prison, and one count of conspiracy to commit bribery, which carries a maximum term of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the investigative work of the FBI, the NYPD Internal Affairs Bureau, and the Internal Revenue Service’s Criminal Investigations Division, and noted that the investigation is continuing.
These cases are being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Martin Bell, Russell Capone, and Kan M. Nawaday are in charge of the prosecution.
The charges contained in the Complaint and the Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the texts of the Complaint and the Indictment and the descriptions of the Complaint and the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Schenectady Man Sentenced to 30 Months for Selling Crack CocaineRead the Press Release
ALBANY, NEW YORK – Robert “Poobar” Daniels, age 43, of Schenectady, New York, was sentenced on June 15 to serve 30 months of imprisonment, to be followed by three years of supervised release, for distributing crack cocaine.
The announcement was made by United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.
Daniels, as part of his guilty plea, admitted that he sold crack cocaine directly, and oversaw the distribution of crack cocaine by another individual.The case was investigated by the Federal Bureau of Investigation, the New York State Police, and the Schenectady Police Department, in connection with the FBI-led Capital District Safe Streets Gang Task Force. The case was prosecuted by Assistant United States Attorney Wayne A. Myers.
Richmond Man Sentenced to 20 Years for Sex with MinorRead the Press Release
RICHMOND, Va. – Stephen T. Callis, 47, of Richmond, was sentenced today to 20 years in prison for enticement of a minor, and sex trafficking of children. Callis was also ordered to serve five years of supervised release and to register as a sex offender upon release from prison.
Callis pleaded guilty on March 3. According to a statement of facts filed with the plea agreement, Callis admitted that he posed online via KIK Messenger as a 15-year-old girl, “Kayla,” in order to initiate communication with the juvenile victim. Posing as “Kayla” on KIK Messenger, Callis discussed engaging in prostitution with older men with the juvenile victim, and said that “Kayla” would introduce the juvenile to older men for the purpose of prostitution. Callis then used the “Kayla” persona to introduce the juvenile to “Mark,” another alias Callis used online.
According to court documents, Callis and the juvenile then engaged in sexual conversations via KIK Messenger. The juvenile and Callis arranged to meet for the first time in approximately November 2014. Callis rented a hotel room for their first meeting and paid the juvenile $60 for sexual services. Callis and the juvenile engaged in sex acts in a hotel room approximately seven times, and Callis paid the juvenile for sexual acts on approximately five of those occasions. Callis was aware that the juvenile was a minor, and he picked the juvenile up from high school several times. Throughout this time, Callis and the juvenile continued to engage in sexual conversations via KIK Messenger, and the juvenile sent Callis naked pictures via KIK Messenger.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Division, made the announcement after sentencing by U.S. District Judge John A. Gibney. Assistant U.S. Attorney Heather L. Hart prosecuted 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. 3:16-cr-003.
R.I. Businessman Pleads Guilty to Running International Scheme to Label and Sell Misbranded DrugsRead the Press Release
PROVIDENCE, R.I. – Arif Diwan, 60, owner of Lifescreen LLC, a Cranston, R.I., based company that labeled, advertised, and sold drugs and pharmaceutical products under the brand name “LifeLogic,” pleaded guilty in federal court in Providence today to conspiring with others to purchase drugs manufactured in India and other countries, repackaging and relabeling them making it appear that they were manufactured in the United States and Europe, and had been approved by the United States Food and Drug Administration (FDA), and then reselling them.
According to court documents, between 2012 and 2015, Diwan received and filled numerous orders for high-cost pharmaceutical products, including a number of products used in the treatment of cancer. Diwan admitted that he rebranded and relabeled drugs manufactured in India, including adding bogus FDA codes and markings to make it appear that the drugs had been manufactured in the United States or Europe and were approved for sale by the FDA. The drugs were shipped by Diwan to customers in numerous countries. Diwan did not sell misbranded and mislabeled drugs in the United States.
Diwan’s guilty plea before U.S. District Court Chief Judge William E. Smith to conspiracy to engage in false labeling of pre-retail medical products, money laundering and immigration fraud is announced by United States Attorney Peter F. Neronha and George M. Karavetsos, Director of FDA’s Office of Criminal Investigations (FDA OCI).
“FDA is recognized around the globe for ensuring that drugs are safe and effective. Criminal rings that falsify drugs’ origins to give the appearance of FDA approval put the public’s health at risk,” said George M. Karavetsos, Director of FDA’s Office of Criminal Investigations. “We will investigate and bring to justice those who compromise the security of the pharmaceutical supply chain wherever they may be.”
According to court records, an investigation by FDA OCI and the United States Attorney’s Office for the District of Rhode Island determined that Diwan ordered large quantities of drugs manufactured by Sara International, a drug manufacturing company located in India, and had the drugs transported to the home of a co-conspirator in Belgium. Once in Belgium, the co-conspirator, Bart DeRidder, affixed fraudulent labels designed by and manufactured at the direction of Arif Diwan onto the products. The labels indicated that the drugs were manufactured by LifeLogic at a facility in Puerto Rico. The packaging also contained bogus FDA codes and markings to make it appear as if the drugs had received FDA approval. No such facility exists in Puerto Rico. Bart DeRidder has been charged by Belgian authorities in connection with this matter and is facing criminal prosecution in Belgium.
Additionally, the investigation revealed that Arif Diwan created and provided fraudulent Certificates of Origin, attesting to the country of origin of the drugs, and fraudulent Certificates of Analysis, falsely attesting to the purity, strength, manufacture dates and expiration dates of the drugs. The certificates are heavily relied upon in the pharmaceutical industry and by Government entities to ensure the safety and efficacy of the products.
In addition, the investigation revealed that Diwan illegally transferred funds out of the United States to promote his illegal activity, including a January 2014 sale of the drug Caelyx to a purchaser in the United Arab Emirates.
In a related matter, in May 2012, Diwan filed a petition with the United States Citizen and Immigrations Services seeking permission for an Egyptian national to obtain a work visa, to allow the individual to enter the United States for the purpose of employment with Lifescreen. Diwan claimed that the person would be employed as a manager at a Lifescreen biopharmaceutical plant in Puerto Rico. The petition was approved and the person entered the United States in November 2012. Lifescreen did not, at any time, have or operate a biopharmaceutical plant in Puerto Rico. The investigation determined that Arif Diwan fraudulently submitted the immigration petition in exchange for payments made to him by the Egyptian national’s brother, a business associate of Diwan.
Arif Diwan is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on September 16, 2016.
The case is being prosecuted by Assistant U.S. Attorneys Lee H. Vilker and Zachary A. Cunha.
United States Attorney Peter F. Neronha and George M. Karavetsos, Director of FDA’s Office of Criminal Investigations, thank the United States Department of State, Internal Revenue Service Criminal Investigation, Interpol, Europol and the Belgian Federal Judicial Police for their cooperation and efforts during this investigation.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Previously Convicted Sex Offender Arraigned on Superseding Indictment Alleging Federal Child Exploitation ChargesRead the Press Release
ALBUQUERQUE – Donald Alvin Tolbert, 47, of Albuquerque, N.M., was arraigned this morning in federal court on a 14-count superseding indictment alleging child pornography offenses, announced U.S. Attorney Damon P. Martinez and Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso.
Tolbert entered a plea of not guilty to the superseding indictment during his arraignment hearing. He remains in federal custody pending trial, which currently is scheduled for Sept. 19, 2016.
Tolbert was arrested on Nov. 21, 2014, on a two-count indictment charging him with receiving child pornography from June 1, 2012 through Sept. 20, 2012, and possessing a computer that contained child pornography on Sept. 20, 2012. The original indictment alleged that Tolbert committed the two crimes in Bernalillo County, N.M.
The superseding indictment, which was filed on June 14, 2016, adds 12 new charges against Tolbert. Count 1 of the superseding indictment alleges that Tolbert used advertisements to offer to exchange, receive and distribute child pornography with others between Jan. 2012 and Sept. 2012, and Count 14 alleges that Tolbert committed the crime alleged in Count 1 during a time when he was required to register as a sex offender. Tolbert allegedly committed the two crimes in Bernalillo County. If convicted on Count 1, Tolbert faces a statutory mandatory sentence of life imprisonment because of his prior conviction on two counts of criminal sexual contact with a minor in the Second Judicial District Court of New Mexico in 2006. If convicted on Count 14, Tolbert faces a statutory mandatory minimum of ten years of imprisonment, which must be served consecutive to any sentence imposed on the other charges.
The superseding indictment also includes seven counts alleging that Tolbert received child pornography between Aug. 2012 and Sept. 2012; three counts alleging that he distributed child pornography between July 2012 and Sept. 2012; and two counts alleging that he possessed computers containing child pornography in Sept. 2012. The superseding indictment alleges that Tolbert committed the crimes in Bernalillo County. If convicted on these charges, Tolbert faces the following penalties: a statutory mandatory minimum of 15 years and a maximum of 40 years on each of the seven receipt charges and the two distribution charges, and a statutory mandatory minimum of ten years and a maximum of 20 years on each of the two possession charges.
Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of HSI. Assistant U.S. Attorneys Kristopher N. Houghton and Alexander M. Uballez are prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, 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 http://www.justice.gov/psc/.
The case also is being prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, N.M., under this initiative.
Press Conference Advisory, Monday, June 20, 2016, at 12:00 p.m.Read the Press Release
There will be a press conference today at 12:00 p.m. to announce charges against several New York City Police Department officers and others for public corruption offenses. Relevant charging documents are attached.
WHO:
Preet Bharara, United States Attorney for the Southern District of New York
Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation
William J. Bratton, Commissioner of the New York City Police Department
WHEN:
Monday, June 20, 2016 at 12:00 p.m.
WHERE:
U.S. Attorney’s Office, Southern District of New York
1 St. Andrew’s Plaza
New York, NY 10007
CONTACT:
James Margolin, Dawn Dearden, Nicholas Biase
(212) 637-2600
NOTE:
Please arrive early to permit clearance through security. Please silence all cell phones, PDAs, and pagers before start of press conference.
Physician’s Office Manager and Husband Sentenced to Imprisonment for Fraudulent Diversion of OxydodoneRead the Press Release
HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the former office manager to a York physician and her husband were sentenced in U.S. District Court in Harrisburg for conspiring to obtain and distribute up to 20,000 units of oxycodone through fraud and forgery.
According to United States Attorney Peter Smith, Amy Schneider, 31, was sentenced to serve 30 months in federal prison incarceration. District Court Judge Sylvia H. Rambo also sentenced Joseph Schneider, 31, to 46 months’ imprisonment. Both defendants also were sentenced to three-year terms of supervised release following their incarceration, and payment of $800 fines.
In addition to conspiracy and distribution of oxycodone, Amy Schneider pleaded guilty in January 2016 to illegally using a Drug Enforcement registration to obtain a controlled substance. Joseph Schneider pleaded guilty to acquiring a prescription by fraud or forgery as well as conspiracy and distribution of oxycodone. The two were held responsible for between 10,000 and 20,000 tablets of oxycodone.
Amy Schneider was the officer manager for a York physician. She was permitted to use pre-signed prescription forms each week. The forms, intended to be used to write prescriptions for refills for patients, were fraudulently used to obtain oxycodone for the couple. Amy Schneider wrote prescriptions for Joseph Schneider. He took the prescriptions to pharmacies to be filled. Most of the oxycodone was consumed by the couple; some of the tablets were distributed to others.
The conspiracy began in approximately January 2014 and continued until at least May 2015.
The case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Christy H. Fawcett.
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Perry County Man Sentenced for Methamphetamine OffenseRead the Press Release
On June 15, 2016, Nicholas C.J. Draege, 25, of DuQuoin, was sentenced for a methamphetamine offense, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
Draege, who had previously pled guilty to one count of conspiracy to distribute methamphetamine, was sentenced to 96 months in federal prison, to be followed by 3 years’ supervised release, and fined $300.00. Evidence at the plea and sentencing hearings established that Draege was involved with others in the manufacture and distribution of methamphetamine. Draege provided pseudoephedrine pills to others to use to manufacture methamphetamine. At sentencing, the judge found that Draege was responsible for the possession of 57.12 grams of pseudoephedrine. The offense occurred between 2013 and June 2015, in Perry, Jackson, and Randolph Counties. 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.
Organizer of $9 Million Scam Sentenced to 8 Years in Federal Prison in Scheme to Provide Hospice to Patients who were not Terminally IllRead the Press Release
LOS ANGELES – A Placentia woman was sentenced today to 96 months in federal prison related to her operation of a hospice that submitted more than $9 million in fraudulent bills to Medicare and Medi-Cal for purportedly providing end-of-life care to patients who were not actually dying.
Priscilla Villabroza, 70, was sentenced by United States District Judge S. James Otero, who characterized the defendant’s conduct as “callous” and “despicable.” In addition to the eight-year prison term, Judge Otero ordered the defendant to pay $7,433,329 in restitution.
Villabroza is one of 10 defendants who were charged in relation to a fraud scheme run out of the Covina-based California Hospice Care, which Villabroza purchased in late 2007 while under investigation in a prior health care fraud case.
Between March 2009 and June 2013, California Hospice submitted nearly $9 million in fraudulent bills to Medicare and Medi-Cal for hospice-related services, and the public health programs paid nearly $7.5 million.
“This scheme is one of many that has victimized taxpayers who fund public healthcare programs,” said United States Attorney Eileen M. Decker. “This scheme also victimized patients who were needlessly put into hospice and had changes made to their treatment for non-medical reasons. As this case clearly demonstrates, healthcare fraud is not a victimless crime.”
All 10 defendants charged in relation to the California Hospice scheme have pleaded guilty to healthcare fraud charges or were convicted at trial. One of the defendants was accepted into a diversion program.
Following a two-week trial that ended last month, Sri Wijegoonaratna, known as Dr. J., 61, of Anaheim, and Boyao Huang, 43, of Pasadena were found guilty of federal health care fraud charges for falsely certifying that Medicare patients were terminally ill, and therefore qualified for hospice care, when the vast majority of them were not actually dying. Judge Otero is scheduled to sentence defendants Wijegoonaratna and Huang on August 15.
As part of the California Hospice fraud scheme, Villabroza secretly purchased and managed the company, while representing that her daughter, who was also charged in the case, was the true owner. The scheme involved illegal payments to “marketers” or “cappers” for referrals of Medicare and Medi-Cal beneficiaries, false and fraudulent documentation by nurses and false certifications by doctors that the beneficiaries were terminally ill and therefore entitled to hospice benefits – even though the vast majority of them were not terminally ill. Participants in the scheme also fraudulently altered medical records in response to Medicare audits to make the beneficiaries appear sicker than they were in an attempt to deceive the auditors into believing that the beneficiaries were entitled to benefits.
In the prior case, Villabroza was convicted for her role in a scheme that defrauded the Medi-Cal program by fraudulently billing for in-home care provided to disabled patients. She was sentenced in that case to 4½ years in federal prison.
The investigation into California Hospice was conducted by the United States Department of Health and Human Services, Office of Inspector General; the Federal Bureau of Investigation; the California Bureau of Medi-Cal Fraud & Elder Abuse; and IRS Criminal Investigation.
This case is being prosecuted by Assistant United States Attorney Steven Arkow of the Major Frauds Section and Assistant United States Attorney Leon W. Weidman, Special Assistant to the United States Attorney.
Monroe County Tobacco Store Owner Pleads Guilty to Wire Fraud Conspiracy and Aggravated Identity TheftRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that that Rehan A. Merchant, age 39, pleaded guilty to an Information that charged him with conspiring to commit wire fraud, and with aggravated identity theft. Merchant previously was indicted by a federal grand jury on November 10, 2015, and has remained in federal custody since his arrest.
According to United States Attorney Peter Smith, Merchant was the owner and operator of the Cigar and Tobacco Outlet in Tannersville, Pennsylvania. The superseding information charges Merchant with conspiring with unindicted co-conspirators, from in or about September 2014 through September 2015, to use and attempt to use counterfeit and stolen credit and debit cards to make fraudulent purchases at the Cigar and Tobacco Outlet. Merchant and his co-conspirators also allegedly forged the names of cardholders on the associated credit and debit card receipts.
The investigation was conducted by special agents with Homeland Security Investigations and detectives from the Monroe County District Attorney’s Office. The case is being prosecuted by Assistant United States Attorney Phillip J. Caraballo.
Indictments and informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the wire fraud charge is 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. The aggravated identity theft charge carries a mandatory two-year term of imprisonment, to run consecutive to any other term of imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Milton Man Sentenced to 10 Years on Drug and Weapons ConvictionsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Christopher Pappano, age 55, of Milton, Vermont, was sentenced to 10 years in federal prison on drug and weapons charges by U.S. District Court Judge Geoffrey Crawford in U.S. District Court in Rutland on June 8, 2016. Judge Crawford also ordered Pappano to serve a five-year term of supervised release after completing his 10-year jail term.
On January 20, 2016, Pappano pleaded guilty to three federal felonies: conspiring to distribute cocaine; possessing nine stolen firearms; and possessing a handgun as a convicted felon. He has been in the custody of the U.S. Marshal’s Service since his arrest on December 30, 2014. According to court documents, Pappano was the President of “The Brotherhood,” a small motorcycle club that he formed in the summer of 2014. In late 2014, Pappano assaulted several associates, and members of The Brotherhood committed two residential burglaries and three robberies of convenience stores. Pappano reportedly is a member of the Aryan Brotherhood, a white supremacist organization. In resolving his federal charges, Pappano also pleaded guilty to two State of Vermont felony offenses: assault and grand larceny.
The case was investigated by the St. Albans Barracks of the Vermont State Police, the Bureau of Alcohol, Tobacco and Firearms, and the Milton Police Department. Pappano was represented by attorney Robert Katims. The United States was represented by Assistant U.S. Attorney Bill Darrow.
Mexican National Sentenced to 20 Years in Prison for Sex Trafficking of a MinorRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, announce that Timoteo Reyes-Perez, 35, of Mexico, was sentenced by U.S. District Judge Kenneth A. Marra to 20 years in prison.
Reyes-Perez previously pled guilty to sex trafficking of a minor, in violation of Title 18, United States Code, Sections 1591(a)(1) and (b)(2). Reyes-Perez, who was originally charged by authorities in 2008, was a fugitive until last year, when he was extradited to the United States from Mexico.
According to court documents, Reyes-Perez met and married his victim in Mexico when she was 14 years old. Soon after, Reyes-Perez smuggled her across the border into the United States and proceeded to transport her to New York, Atlanta, and finally, the Southern District of Florida. Reyes-Perez prostituted the victim at brothels in multiple locations, including West Palm Beach. At times, she was forced to have sex with up to 30 men per night. Reyes-Perez kept the proceeds of her prostitution. At sentencing, the victim spoke about how Reyes-Perez had forced her into prostitution against her will, using physical and sexual violence to ensure her compliance. She also spoke about the lasting emotional and psychological damage she sustained.
Five other defendants who were also charged in the same indictment pled guilty to sex trafficking of a minor and were sentenced in 2009 to terms of imprisonment ranging from 60 to 160 months.
Mr. Ferrer commended the investigative efforts of ICE-HSI. The case was prosecuted by Assistant U.S. Attorney Olivia S. Choe.
Human trafficking must stop. To report suspected human trafficking occurring in South Florida, please call the National Human Trafficking Resource Center Hotline at 1-888-373-7888.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mescalero Apache Man Pleads Guilty to Federal Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Daniel Pete Valdez, 44, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., pleaded guilty today in federal court in Las Cruces, N.M., to a sexual abuse charge.
Valdez was arrested on Aug. 25, 2015, on a criminal complaint charging him with sexually assaulting a woman on June 20, 2014, on the Mescalero Apache Indian Reservation in Otero County., N.M. Valdez was subsequently indicted on Jan. 20, 2016, on a sexual abuse charge.
According to court documents, Valdez engaged in a sexual act with the victim while she was unconscious and physically incapable of declining participation in or communicating unwillingness to engage in the sexual act.
Valdez pled guilty today without the benefit of a plea agreement. At sentencing, Valdez faces a maximum penalty of life in federal prison. Valdez remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
Maryland man sentenced for heroin distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – John Sanders, 25, of Williamsport, Maryland, was sentenced to 120 months in prison today for distribution of heroin, United States Attorney William J. Ihlenfeld, II, announced.
Sanders sold heroin in June 2014 near Martinsburg, West Virginia that led to the death of a 29- year-old Hagerstown, Maryland man. He pled guilty in November 2015 to a criminal Information charging him with one count of “Aiding and Abetting the Distribution of Heroin.”
Assistant U.S. Attorney Paul T. Camilletti prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Maryland Man Sentenced to More Than Eight Years in Prison for Scheme to Obtain More Than $7 Million in Fraudulent Tax RefundsRead the Press Release
Caused 14 False Tax Returns to be Filed in Just Six Months Claiming $7,753,940 in Refunds
A College Park, Maryland, man was sentenced to 97 months in prison today following his conviction in November 2015 by a federal jury on one count of conspiring to defraud the United States and six counts of filing false income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Rod J. Rosenstein of the District of Maryland and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service-Criminal Investigation’s (IRS-CI) Washington, D.C. Field Office.
According to the evidence presented at trial, between March and June 2009, Charles W. Parker Jr., 49, recruited clients for co-conspirator Penny Jones, 65, formerly of Rigby, Idaho. Jones, a tax return preparer in Idaho, prepared tax returns falsely reporting the amount of taxes withheld and purportedly paid to the IRS. Parker collected financial information from clients and provided it to Jones for the preparation of the false tax returns. Parker paid Jones to prepare false tax returns for Parker and others. Parker mailed the false tax returns to the IRS for the years 2005 to 2008, claiming large tax refunds to which the clients were not entitled. Parker caused the filing of 14 false tax returns in just a six month period that fraudulently claimed $7,753,940 in tax refunds.
In addition to the prison term, U.S. District Judge Roger W. Titus for the District of Maryland ordered Parker to serve three years of supervised release and pay restitution to the IRS in the amount of $2,007,568. In 2013, Jones was sentenced to 144 months in prison for her role in the scheme.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Rosenstein thanked special agents of IRS-CI, who investigated the case and Assistant U.S. Attorney Leah Jo Bressack of the District of Maryland and Trial Attorney Erin Pulice 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.
Martinsburg woman sentenced for mail fraudRead the Press Release
MARTINSBURG, WEST VIRGINIA – Debra M. Moses, 47, of Martinsburg, West Virginia, was sentenced today to 24 months in prison for mail fraud, United States Attorney William J. Ihlenfeld, II, announced.
Moses, a legal assistant at Cassell and Prinz, PLLC, devised a scheme to defraud her employer of attorney fees paid by the United States Social Security Administration by endorsing U.S. Treasury checks payable to “John M. Cassell Attorney” and mailing them to Baltimore, MD for deposit into her personal checking account. Over a nearly seven year period, Moses deposited in excess of $300,000 into her checking account.
Moses pled guilty in March 2016 to one count of “Mail Fraud.”
Assistant U.S. Attorney Paul T. Camilletti prosecuted the case on behalf of the government. The United States Secret Service and the United States Social Security Administration investigated.
Chief U.S. District Judge Gina M. Groh presided.
Maine Man Sentenced to Five Years for Conspiracy to Traffic Oxycodone and CocaineRead the Press Release
Contact: Daniel J. Perry
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Anthony Lacomb, 30, of Biddeford, Maine, was sentenced in U.S. District Court by Chief Judge Nancy Torresen to five years in prison to be followed by three years of supervised release for conspiracy to distribute oxycodone and cocaine. Lacomb pleaded guilty on February 24, 2016.
According to court records, Lacomb was a manager of a group of people who imported oxycodone and cocaine from Rhode Island to Maine in 2014 and 2015. In April 2015, Lacomb was arrested in Scarborough when an undercover agent ordered cocaine and oxycodone from him. When Lacomb and another conspirator arrived to conduct the transaction, they were arrested and about an ounce of cocaine and 35 oxycodone pills were seized.
This case results from a joint investigation conducted by the U.S. Drug Enforcement Administration and Scarborough Police Department.
Kankakee Latin Kings Leader, Members Face Charges in Federal CourtRead the Press Release
Urbana, Ill. - Five Kankakee area men identified as local leaders and members of the Latin Kings and a girlfriend of one of the men are scheduled for trial in August 2016, on federal charges, after making their respective initial appearances in Urbana, Ill., before U.S. District Judge Colin S. Bruce. A federal grand jury returned three indictments earlier in June 2016, but the charges had remained sealed pending their arrests and court appearances.
James Atwood, 31, of Bourbonnais, Ill., Jessie Dorsett, 22, and Jovan Saulsberry, both of Kankakee, Ill., are charged in one indictment with conspiracy to distribute cocaine from Nov. 5, 2014 to Feb. 3, 2015, and with distribution of cocaine. If convicted, both offenses carry statutory penalties of up to 20 years in prison; if a defendant has a prior felony drug conviction, the statutory penalty increases to up to 30 years in prison.
In a separate indictment, Jesse Guardiola, 43, of the 2200 block of E 3100 North Road, Martinton, Ill., is charged with five counts of possession of a firearm by a felon. The indictment alleges that Guardiola possessed firearms on five occasions in 2014 and 2015. Guardiola’s girlfriend, Heather Grad, 30, of the 300 block of E. Court St., Kankakee, Ill., is charged with Guardiola in count two of the indictment, with possession of a firearm by a felon on Feb. 11, 2015.
A third indictment charges Santos Salgado, 30, of the 800 block of E. Station, Kankakee, Ill., with two counts of possession of a firearm by a felon in 2016 and 2014.
If convicted, possession of a firearm by a felon carries a statutory penalty of up to 10 years in prison.
Atwood, Saulsberry, Guardiola, and Salgado remain in the custody of the U.S. Marshals Service. Dorsett is already in the custody of the Illinois Department of Corrections on unrelated charges. Grad has been released on bond. Trial for the defendants in each case is scheduled on Aug. 16, 2016.
The charges are the result of ongoing investigations related to violent crime in the Kankakee area by the Kankakee Area Project Safe Neighborhoods Task Force; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Kankakee Police Department; Kankakee Area Metropolitan Enforcement Group; Kankakee County Sheriff’s Office; Illinois State Police; and Kankakee County Corrections. The cases are being prosecuted by Assistant U.S. Attorney Bryan Freres in cooperation with the Kankakee County State’s Attorney’s Office.
Members of the public are reminded that an indictment is merely an accusation; the defendants are presumed innocent unless proven guilty.
Justice Department Settles Immigration-Related Discrimination Claims Against 121 Residency Programs and American Association of Colleges of Podiatric MedicineRead the Press Release
The Justice Department announced today that it has reached agreements with 121 podiatry residency programs and the American Association of Colleges of Podiatric Medicine (AACPM) to resolve claims that they discriminated against work-authorized non-U.S. citizens in violation of the Immigration and Nationality Act (INA).
The department’s investigations found that between 2013 and 2015, the programs and AACPM created and published discriminatory postings for podiatry residents through AACPM’s online podiatry residency application and matching service. Specifically, the department determined that hundreds of job postings limited podiatry residency positions to U.S. citizens even though there was no legal authorization for the citizenship requirement. Several work-authorized non-U.S. citizens stated that they were discouraged or deterred from applying to residency programs because of the citizenship requirements, and the department concluded that two lawful permanent residents were denied consideration for positions because of unlawful citizenship requirements.
Under the settlement agreements, the programs are required to remove citizenship requirements from podiatry residency postings except where required by law, train staff involved in the advertising and hiring of podiatric residents and ensure that future residency postings are reviewed by staff trained in equal employment opportunity laws or by legal counsel. Some of the settlements also require the programs to pay a civil penalty, amounting to total civil penalties from the programs of $141,500.
The settlement with AACPM requires it to pay $65,000 in civil penalties, train its staff on the anti-discrimination provision of the INA and ensure that all participating programs receive such training before they may use AACPM’s online system to advertise residency positions. The settlement also requires AACPM to refund the fees that the charging party paid to use AACPM’s residency application and matching system.
“Immigrants authorized to work in our country should never face unlawful discriminatory barriers to employment,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Across the industry, these settlements will ensure that qualified medical students have equal opportunities to join podiatric residency programs and provide healthcare services to our communities.”
The INA’s anti-discrimination provision prohibits employers from discriminating in hiring, firing and recruiting or referring for a fee based on a person’s citizenship, immigration status or national origin. Employers may not limit job opportunities to U.S. citizens unless employers have a legal basis to do so, such as a law, regulation or government contract that imposes citizenship requirements on the position. Similarly, recruiters and referrers for a fee may not impose barriers to obtaining employment based on an individual’s citizenship, immigration status or national origin. This means, for instance, that unless a legal exception applies, they may not advertise jobs as available only to U.S. citizens because doing so excludes other work-authorized individuals, such as U.S. nationals, lawful permanent residents (often referred to as green card holders), asylees and refugees.
The department began its investigations of the programs and AACPM in 2015 after receiving a charge against AACPM from a podiatry medical student with lawful permanent residence. The charge alleged that AACPM published a series of podiatry residency job announcements that unlawfully restricted positions to U.S. citizens through AACPM’s online application service. The charge further claimed that AACPM used its online service to collect citizenship status information from residency applicants and share that information with residency programs.
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship status and national origin discrimination in hiring, firing, recruitment or referral for a fee; document abuse; retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php, email [email protected] or visit OSC’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to discrimination based on their citizenship status, immigration status or national origin in hiring, firing, recruitment or referral; or different documentary requirements based on their citizenship status, immigration status or national origin should contact the worker hotline above for assistance.
Podiatry Settlement - AACPM
Podiatry Settlement Category 1
Podiatry Settlement Category 2
Podiatry Settlement - Genesys Regional Medical Center
Podiatry Settlement - Northwest Medical Center
Justice Department Finds that Nevada Discriminates Against Inmates with HIV and Inmates with Other DisabilitiesRead the Press Release
The Justice Department issued a letter of findings today concluding that the Nevada Department of Corrections’ (NDOC) policies and practices for housing and employing inmates with disabilities violate the Americans with Disabilities Act (ADA). Following a comprehensive ADA compliance review, the department found that NDOC’s discriminatory practices have resulted in the illegal segregation and stigmatization of inmates with HIV and the incarceration of inmates with disabilities for longer periods, in more restrictive settings, than inmates without disabilities.
The department’s letter makes three principal findings. First, NDOC segregates inmates with HIV through a policy prohibiting the housing of inmates with HIV in the same cells as inmates who do not have HIV. Second, NDOC denies inmates with HIV equal employment opportunities. Third, NDOC denies inmates with various disabilities, including those with mobility disabilities, HIV or certain other medical or mental health conditions, equal opportunities to benefit from the programs offered at two of NDOC’s lowest-custody facilities –its conservation camps and transitional-housing facilities.
The department found that these discriminatory practices have the following effects:
- NDOC’s segregation of inmates with HIV stigmatizes them while indiscriminately disclosing their confidential HIV status to NDOC employees and inmates. This segregation policy is without any legitimate health justification, as leading public health and correctional authorities, including the National Commission on Correctional Health Care, oppose the routine segregation of inmates with HIV as medically unnecessary.
- Inmates who work in NDOC prisons, and those who are housed in conservation camps or transitional-housing facilities, can earn “work credits” to reduce the lengths of their sentences. By denying inmates with HIV equal employment opportunities, and by denying inmates with disabilities equal opportunities to benefit from the services, programs and activities available to inmates at conservation camps and transitional-housing facilities, NDOC deprives inmates with disabilities of equal opportunities to engage in productive activities and to accelerate their NDOC release dates.
- By denying inmates with disabilities equal opportunities to obtain placement at its lower-custody and lower-security facilities, NDOC confines them in more restrictive settings than they otherwise would be housed.
“The ADA’s promises of non-discriminatory treatment and equal opportunity apply to all people with disabilities, including inmates at correctional facilities,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “No inmate should have to stay in segregated housing because of a HIV diagnosis or serve a longer sentence because of a disability. Real and lasting reform in Nevada will require not only systemic changes to its policies, practices and procedures, but also a commitment to address unfounded stereotypes, fears and assumptions about individuals with disabilities.”
The department commends Nevada for its cooperation with this ADA compliance review and will continue to work closely with NDOC and Nevada’s Office of the Attorney General to resolve the department’s findings expeditiously and under mutually-agreeable terms.
To read the full findings letter, please visit www.ada.gov. For more information about the ADA, call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
Nevada Department of Corrections
Justice Department Closes Investigation into the Death of Kendrick JohnsonRead the Press Release
The Department of Justice announced today that the independent federal investigation into the 2013 death of 17-year-old Kendrick Johnson in Valdosta, Georgia, found insufficient evidence to support federal criminal charges.
Officials from the U.S. Attorney’s Office for the Northern District of Ohio, Middle District of Georgia, and District of Columbia met today with members of Kendrick Johnson’s family to inform them of the findings and the conclusion of the investigation.
Kendrick Johnson’s body was found in a rolled-up gym mat inside Lowndes High School on January 11, 2013. Nearly four months later, on May 2, 2013, the GBI Medical Examiner issued her autopsy report, concluding that Kendrick died from “positional asphyxia” – essentially, that he became entrapped upside-down in the rolled-up mat and had suffocated. The Medical Examiner ruled Kendrick’s death an accident. Shortly thereafter, the Lowndes County Sheriff’s Office closed its investigation.
On June 15, 2013, at his family’s request, Kendrick Johnson’s body was exhumed and Dr. William Anderson conducted a second autopsy. Two months later, Dr. Anderson determined the cause of death was blunt force trauma to the right side of Kendrick’s neck, near the jaw, and the manner of death was not an accident. He found hemorrhages to the jaw line area not detected during the GBI autopsy.
On October 31, 2013, the U.S. Attorney’s Office for the Middle District of Georgia announced its investigation to determine whether Kendrick Johnson’s death involved violations of federal criminal statutes including, but not limited to, federal criminal civil rights statutes codified at 18 U.S.C. Sections 241, civil rights conspiracy, and 245, interference with federally-protected rights.
Lawyers and investigators from the Department of Justice, the United States Marshal’s Service, and the Metropolitan Police Department for the District of Columbia, conducted a thorough and comprehensive investigation of the events surrounding Kendrick’s death. The investigation included, among other things, interviewing nearly 100 people; reviewing tens of thousands of emails and text messages; reviewing surveillance videos from Lowndes High School; and analyzing other available information regarding the events of January 10-11, 2013. The investigative team also consulted with an independent Department of Defense medical examiner and hired another independent medical examiner/forensic pathologist who reviewed relevant medical records and both autopsy reports.
In order to establish a federal criminal civil rights violation in this case, the government would have to prove beyond a reasonable doubt not only that someone killed Kendrick Johnson, but that the killing was motivated by racial animus. This legal standard – proving beyond a reasonable doubt that an act was committed, identifying who committed the specific act, and proving why they committed the act – is a high threshold to meet.
After extensive investigation into this tragic event, federal investigators determined that there is insufficient evidence to prove beyond a reasonable doubt that someone or some group of people willfully violated Kendrick Johnson’s civil rights or committed any other prosecutable federal crime. Accordingly, the investigation into this incident has been closed without the filing of federal criminal charges.
“The Department of Justice, in particular the lawyers and investigators who have worked tirelessly on this investigation, express their most sincere condolences to Kendrick Johnson’s parents, family, and friends,” said Acting United States Attorney Carole Rendon. “We cannot imagine the pain of their loss, or the depths of their sorrow. We regret that we were unable to provide them with more definitive answers about Kendrick’s tragic death.”
Joint Statement from Justice Department and FBI Regarding Transcript Related to the Orlando Terror AttackRead the Press Release
The Department of Justice and the Federal Bureau of Investigation (FBI) issued the following statement regarding the FBI's release of the transcript related to the Orlando shooting:
“The purpose of releasing the partial transcript of the shooter's interaction with 911 operators was to provide transparency, while remaining sensitive to the interests of the surviving victims, their families, and the integrity of the ongoing investigation. We also did not want to provide the killer or terrorist organizations with a publicity platform for hateful propaganda. Unfortunately, the unreleased portions of the transcript that named the terrorist organizations and leaders have caused an unnecessary distraction from the hard work that the FBI and our law enforcement partners have been doing to investigate this heinous crime. As much of this information had been previously reported, we have re-issued the complete transcript to include these references in order to provide the highest level of transparency possible under the circumstances.”
Transcript of Orlando Police Department 911 Calls, June 12, 2016
2:35 a.m.: Shooter contacted a 911 operator from inside Pulse. The call lasted approximately 50 seconds, the details of which are set out below:
(OD) Orlando Police Dispatcher
(OM) Omar Mateen
OD: Emergency 911, this is being recorded.
OM: In the name of God the Merciful, the beneficent [Arabic]
OD: What?
OM: Praise be to God, and prayers as well as peace be upon the prophet of God [Arabic]. I wanna let you know, I’m in Orlando and I did the shootings.
OD: What’s your name?
OM: My name is I pledge of allegiance to Abu Bakr al-Baghdadi of the Islamic State.
OD: Ok, What’s your name?
OM: I pledge allegiance to Abu Bakr al-Baghdadi may God protect him [Arabic], on behalf of the Islamic State.
OD: Alright, where are you at?
OM: In Orlando.
OD: Where in Orlando?
[End of call.]
Individual Arrested for Malicious Use of ExplosivesRead the Press Release
SAN JUAN, P.R. – United States Magistrate Judge Silvia Carreño-Coll authorized a criminal complaint charging Noel D. Cruz-Torres (“Cruz-Torres”) with malicious use of explosives. Cruz-Torres was arrested after throwing Molotov cocktails at the DuPont Pioneer building in Salinas, PR, and at PRPD officers who detained him, announced United States Attorney Rosa Emilia Rodríguez-Vélez. The FBI is in charge of the investigation with the collaboration of the Puerto Rico Police Department.
According to the information contained in the criminal complaint and affidavit, on June 18, 2016, at approximately 3:30 am, someone called 911 to report an explosion near DuPont Pioneer. When police and firefighters arrived, they saw a vehicle burning nearby. A security guard reported that an individual was throwing Molotov cocktails at the building. The officers walked around the building and saw Cruz-Torres wearing a black t-shirt wrapped around his face and carrying a black backpack. While police pursued Cruz-Torres, he threw various Molotov cocktails at the officers. He also threw another lit Molotov at the fire truck.
Cruz-Torres had a flag with the words “LEVANTATE BORICUA Q HA LLEGADO EL MOMENTO DE DEFENDER NTRA PATRIA: VIVA P.R. Libre” (sic) (as translated in the criminal complaint, “Rise up Puerto Rican, the moment to defend our fatherland has arrived: long live free Puerto Rico.”)
DuPont Pioneer is an agricultural business that conducts crop-genetic research and development. It imports seed from Iowa for research purposes.
The case is being prosecuted by Assistant United States Attorney Alexander Alum. If convicted defendant faces a minimum penalty of five years and up to 20 years in prision. A criminal complaint contains only charges and is not evidence of guilt. A defendant is presumed to be innocent unless and until proven guilty.
Huntington heroin dealer pleads guilty to Federal drug crimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pleaded guilty today to a federal heroin crime, announced Acting United States Attorney Carol Casto. Lamont Walter Haywood, 38, entered his guilty plea to distribution of heroin.
Haywood admitted that on January 22, 2015, he sold heroin to a confidential informant working with the Huntington FBI Drug Task Force. The drug deal took place at Star Communications, located on 8th Avenue in Huntington.
Haywood faces up to 20 years in federal prison when he is sentenced on September 19, 2016.
The Huntington FBI Drug Task Force conducted the investigation. Assistant United States Attorney Gregory McVey is responsible for the prosecution. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
This prosecution is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
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Houston Resident Guilty of Federal Drug Trafficking Following $1.2 Million Dollar Cash SeizureRead the Press Release
Nahum Shibeshi, 28, of Houston, Texas, pleaded guilty on June 16, 2016, in US District Court to conspiracy to distribute cocaine and interstate travel in support of racketeering activities, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
On February 18, 2016, a federal grand jury handed down an indictment alleging that eight Houston residents participated in a conspiracy to distribute more than 5 kilograms of cocaine into the Southern District of Illinois. In addition to the drug crimes, the indictment seeks forfeiture of $1,212,934 in US Currency that was seized on December 2 and 3rd of 2015, along with jewelry appraised at $72,000. As part of his plea, Shibeshi agreed to forfeit any interest he has in any of the property that was seized.
As charged in this case, conspiracy to distribute cocaine is punishable by not less than 10 years’ imprisonment up to life, a $10,000,000 fine, and not less than 5 years supervised release. Interstate travel in support of racketeering activities is punishable by not more than 5 years’ imprisonment, a $250,000 fine and not more than three years supervised release. However, the United States Sentencing Guidelines must be applied to the case and considered by the Court during sentencing. Shibeshi is scheduled to be sentenced on October 14, 2016. The remaining seven defendants are scheduled for trial on August 15, 2016.
The investigation is being conducted by agents from the Drug Enforcement Administration as part of the OCDETF program. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
An indictment is a formal charge against a defendant. Under the law, the remaining co-defendants are presumed to be innocent of a charge until proved guilty beyond a reasonable doubt.
Granite Bay Property Investor Indicted for Mail and Wire FraudRead the Press Release
SACRAMENTO, Calif. — A federal grand jury has returned a 16-count indictment against John Stuart Hill, 32, of Granite Bay, charging him with wire fraud and mail fraud, Acting United States Attorney Phillip A. Talbert announced.
Hill was indicted on April 28, 2016, and the indictment had been sealed until today, when he was arraigned by United States Magistrate Judge Edmund F. Brennan. The defendant entered a not guilty plea.
According to court documents, between August 9, 2011, and April 2013, Hill, acting under the business name Granite Bay Investment Partners (GBIP), solicited and received money from investors who intended that their money would be used to purchase, rehabilitate, and resell residential property in the Sacramento area. In reality, the indictment alleges that Hill used the money for his own personal expenses, made false accounting entries on statements he sent to his investors, and misrepresented the purchase and resale prices of the properties in question. In some cases, the properties that Hill alleged his investors to be rehabilitating had never been purchased by Hill or GBIP. In other cases, multiple investors were told that they were partners on the same property in order to increase the amount invested to far above the purchase and rehabilitation costs. According to court documents, Hill received at least $1.9 million from investors, only $600,000 of which was ever returned, leaving at least $1.3 million unaccounted for.
Hill was ordered detained pending trial. His next court appearance is scheduled for August 18, 2016, before United States District Judge Morrison C. England Jr.
This case was the product of an investigation by the United States Secret Service. Assistant United States Attorney Matthew G. Morris is prosecuting the case.
If convicted, Hill faces a maximum statutory penalty of 20 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.
Gloversville Accounting Firm Employees Sentenced for Tax FraudRead the Press Release
ALBANY, NEW YORK – Three people were sentenced last week for conspiring to defraud the United States and filing fraudulent tax returns.
The announcement was made by United States Attorney Richard S. Hartunian and Shantelle P. Kitchen, Special Agent in Charge of IRS-Criminal Investigation’s New York Field Office.
Carmen Gentile, age 54, of Amsterdam, New York, was sentenced on June 13 to a five-year term of probation, fined $10,000, and ordered to pay restitution to the United States. Angela Witzke, age 40, of Amsterdam, New York, and a certified public accountant, was sentenced on June 13 to a three-year term of probation for her role in the scheme. Michelle Lennon, age 43, of Gloversville, New York, was sentenced on June 16 to a one-year term of probation. Senior U.S. District Judge Gary L. Sharpe presided over the case.
All three defendants worked at Complete Financial Accounting Services in Gloversville, which Gentile owned and operated. As part of their guilty pleas, Gentile, Witzke, and Lennon each admitted that they worked together to prepare, and submit to the IRS, dozens of tax returns for clients that omitted income and claimed inflated charitable contributions, expenses, and losses. They admitted filing these returns despite knowing they contained false statements concerning their clients’ income, expenses and losses.
This case was investigated by IRS-Criminal Investigation’s New York Field Office and was prosecuted by Assistant United States Attorney Wayne A. Myers.
Former medical practice manager pleads guilty to obtaining prescription opioids by fraudRead the Press Release
CHARLESTON, W.Va. – A Nicholas County woman who issued herself prescriptions without authorization from a doctor pleaded guilty today, announced Acting United States Attorney Carol Casto. Cary Lynn Eades, 47, of Mount Nebo, entered her guilty plea to obtaining the prescription opioid pain medication tramadol by fraud.
On numerous occasions between January 2012 and March 2015, Eades took advantage of her position as a medical practice manager to issue herself prescriptions for tramadol using the names and DEA registration numbers of doctors for whom she worked. Eades filled prescriptions at pharmacies in Nicholas, Fayette, and Kanawha counties. The Central West Virginia Drug Task Force became involved in February 2015 when one of the medical practices reported suspicious prescriptions being issued to Eades.
Eades was indicted in Fayette and Nicholas counties in 2015 on more than 30 felony counts of obtaining a prescription by fraud. Her guilty plea in federal court reflects a consolidation of those charges as well as potential charges in Kanawha County.
Eades faces up to four years in federal prison when she is sentenced on September 26, 2016.
This case was investigated by the Central West Virginia Drug Task Force. Assistant United States Attorney Joshua Hanks is in charge of the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
This prosecution is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
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Former Suffolk University Employee Pleads Guilty to Stealing over $40,000 in Student Loans by Changing GradesRead the Press Release
BOSTON – A Suffolk University employee pleaded guilty today in U.S. District Court in Boston in connection with fraudulently obtaining over $40,000 in federal student loan funds by falsifying her own records to make it appear that she was a Suffolk University graduate student when in fact she was not.
Ashley Ciampa, 28, of Medford, pleaded guilty today to student loan fraud. U.S. District Court Judge F. Dennis Saylor, IV scheduled sentencing for Oct. 5, 2016.
In 2009, Ciampa began working in the Registrar’s Office at Suffolk University. In 2013, she enrolled in Suffolk’s MBA program free of charge as an employee. In a first-semester business ethics class, Ciampa failed to attend class or complete the required coursework, but instead used her computer access in the Registrar’s Office to assign herself an “A” for the course. In subsequent semesters, she repeatedly assigned herself passing grades for classes she never attended. By maintaining the appearance that she was a graduate student, she was able to borrow $47,453 in federal student loans beginning in 2014, which she spent for vacations and other personal expenses.
The charge of student loan fraud provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $20,000. 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 Brian Hickey, Special Agent in Charge of the U.S. Department of Education, Office of Inspector General, Region I and II, made the announcement today. The case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Former State Representative Admits to Mortgage Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that VICTOR CUEVAS, 52, of Bristol, waived his right to indictment and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to conspiring with others to commit bank fraud in connection with his home mortgage loan applications.
According to court documents and statements made in court, in the summer of 2013, CUEVAS, a City of Waterbury employee and, at that time, the state representative for the 75th District, wanted to purchase a residence in Bristol with a Federal Housing Administration (“FHA”) loan.
The U.S. Department of Housing and Urban Development provides mortgage insurance on loans made through its FHA program and mortgages offered through the program are subject to certain restrictions, including restrictions on the funds that may be used to purchase properties.
CUEVAS, with the assistance of others, represented to the mortgage bank that he was using gifted funds to purchase the property when, in fact, the money was not gifted but was instead loaned to CUEVAS for the purpose of purchasing the property.
Specifically, CUEVAS first represented to the mortgage bank that an individual who he identified as his nephew but, in fact, was a subordinate employee from the City of Waterbury, was providing him with cash to purchase the property as a gift. When the mortgage lender asked for the “nephew’s” bank account statements to prove that he had the money to gift to CUEVAS, CUEVAS withdrew the mortgage application. A few weeks later, CUEVAS had a different Waterbury employee, who CUEVAS identified as his “cousin,” “gift” him the $7,000. Both individuals signed a HUD statement under oath that the funds were, indeed, a “gift” and that no repayment of the monies was expected. However, as soon as the mortgage closed, CUEVAS re-paid the employee the $7,000.
CUEVAS pleaded guilty to one count of conspiracy to commit bank fraud, which carries a maximum term of imprisonment of five years. Judge Meyer scheduled sentencing for September 21, 2016.
CUEVAS resigned from the Connecticut General Assembly in March 2016.
This matter is being investigated by the Connecticut Public Corruption Task Force, notably the U.S. Department of Housing and Urban Development – Office of Inspector General, and the Federal Bureau of Investigation. The Task Force also includes members from the U.S. Department of Health and Human Services – Office of Inspector General, U.S. Postal Inspection Service and Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Sarah Karwan.
Citizens are encouraged to report corruption to the Connecticut Public Corruption Task Force by calling 203-238-0505.
Former Employee of Contract Postal Unit Sentenced to Probation for Destroying U.S. MailRead the Press Release
ALBUQUERQUE – Monique N. Padilla, 29, of Rio Rancho, N.M., was sentenced today in federal court in Albuquerque, N.M., to two years of probation for her conviction on an opening and destruction of mail charge.
Padilla was charged in a misdemeanor information filed on Feb. 17, 2016, with unlawfully opening and destroying mail not directed to her. At the time she committed the crime, Padilla was employed by a contract postal unit in Rio Rancho.
On Feb. 23, 2016, Padilla pled guilty to the information and admitted that on Dec. 15, 2015, she intentionally opened other people’s mail.
This case was investigated by the U.S. Postal Service Office of Inspector General. Assistant U.S. Attorney Edward Han prosecuted the case.