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Tuesday 3 May 2016
Greensburg Man Charged with Using Cell Phone to Coerce a Minor to Have SexRead the Press Release
PITTSBURGH - A resident of Westmoreland County has been indicted by a federal grand jury in Pittsburgh on a charge of attempted coercion and enticement of a minor to engage in illegal sexual activity, United States Attorney David J. Hickton announced today.
The one-count indictment named Robert Franzino, 60, of Greensburg, Pennsylvania, as the sole defendant.
According to the indictment, from Sept. 9, 2015 and continuing thereafter until March 13, 2016, Franzino used facilities and means of interstate and foreign commerce, specifically an Android cellular phone to knowingly attempt to persuade, induce, entice, and coerce a minor to engage in sexual activity.
The law provides for a maximum total sentence of life in prison, a fine of $750,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Greensburg Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Gang Member Sentenced to 35 Years in Prison for RICO ConspiracyRead the Press Release
NEWPORT NEWS, Va. – Robbie Bowles, 30, of Newport News, was sentenced today to 300 months in prison for various violent crime and drug offenses. Bowles’ sentence will run consecutive to a 120 month sentence on an earlier federal firearms conviction.
Bowles pleaded guilty on Nov. 16, 2015. According to court documents, Bowles was a member of the Newport News street gang Thug Relations, which engaged in the distribution of marijuana and crack cocaine. The gang established dominance over the drug trade in its territory through violence and intimidation, which included physical assaults, home invasions, and numerous shootings, some of which resulted in murders. In particular, Bowles admitted threatening victim Aaron Sumler because Sumler and a friend had allegedly been selling cocaine in the area of Aqueduct Apartments, which was part of Thug Relations territory. When those threats went unheeded, Bowles was involved in Sumler’s murder. In addition, Bowles participated in a home invasion robbery of a rival drug dealer, during which one of the victims was struck in the head with a firearm. Bowles also participated in three separate shootings of rival gang members, causing each victim serious bodily injury.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys Howard J. Zlotnick, Lisa R. McKeel, Brian Samuels, and Trial Attorney Yvonne L. Garcia of the Criminal Division’s Organized Crime and Gang Section 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. 4:14-cr-59.
Gainesville Physician Convicted of 162 Counts of Health Care FraudRead the Press Release
GAINESVILLE, FLORIDA – At the conclusion of a five-week jury trial, Ona M. Colasante, 59, a physician from Gainesville, Florida, was convicted yesterday of 162 counts of health care fraud. The verdict was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Colasante owned and operated medical businesses known as the Hawthorne Medical Center in Hawthorne, Florida, between 1998 and March 2009, and the Colasante Clinic in Gainesville, Florida, between January 2010 and January 2013. Through these businesses, Colasante defrauded Medicare, Medicaid, and Blue Cross Blue Shield of Florida through a series of false billing schemes. At trial, the government presented evidence that Colasante, and employees acting at her direction, ordered non-FDA approved drugs at a drastically reduced price, administered them to unsuspecting patients, and then fraudulently billed insurance companies for the cost of FDA-approved drugs. The evidence showed that Colasante also billed insurance companies for medically unnecessary tests and submitted false diagnosis codes in support of her fraudulent claims for reimbursement.
In addition, Colasante billed insurance companies for counseling, treatment, and training that was never performed. Her businesses repeatedly submitted fraudulent billings for smoking-cessation treatment purportedly administered to patients who were non-smokers.
Colasante faces up to 10 years’ imprisonment on each of the counts of conviction. Sentencing is scheduled for July 25, 2016, at 10:00 a.m. at the United States Courthouse in Gainesville, Florida.
United States Attorney Canova praised the work of the Department of Health and Human Services Office of Inspector General, the Federal Bureau of Investigation, the Florida Attorney General’s Medicaid Fraud Control Unit, and the United States Food and Drug Administration, whose joint investigation led to the convictions in this case.
The case was prosecuted by Assistant United States Attorneys Tiffany H. Eggers and Ryan J. Love.
“Health care programs and patients depend on ethical practices from medical providers,” said United States Attorney Canova. “I commend the diligent investigators and prosecutors who uphold our federal laws and bring to justice those who abuse their positions of trust.”
“The Medicare system relies on doctors to diagnose and treat beneficiaries,” stated Shimon Richmond, Special Agent in Charge of the Department of Health and Human Services Office of Inspector General. “When doctors intentionally misdiagnose patients, perform unnecessary tests and procedures, and use non-FDA approved drugs and devices on patients for personal gain, they betray the trust of the Medicare system and the patients themselves.”
“This case is the result of coordination between multiple federal and state law enforcement agencies, working together to protect the American health care system. Crimes committed through fraudulent and excessive claims are not victimless; Americans everywhere absorb the costs of those schemes through higher insurance costs and medical bills. The FBI and their law enforcement partners will vigilantly identify those engaging in similar conduct and advocate for their prosecution,” said Michelle S. Klimt, Special Agent in Charge, FBI Jacksonville Division.
"The FDA's requirements for approving new drug applications are designed to ensure the safety, efficacy and quality of drugs distributed to American consumers," said Robert J. West, Special Agent in Charge of the FDA’s Office of Criminal Investigations’ Miami Field Office. "The FDA will continue to aggressively pursue those who place the public health at risk by distributing foreign unapproved prescription drugs of unknown origin and ingredients instead of FDA-approved drugs."
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Former Postal Worker Sentenced to Prison for Workers’ Comp FraudRead the Press Release
NORFOLK, Va. – Ronald Henderson, 58, of Lewiston, North Carolina, was sentenced today to 13 months in prison for Federal Employees’ Compensation Fraud. He was also ordered to pay $163,956.23 in restitution to the Department of Labor.
Henderson pleaded guilty on Dec. 2, 2015. According to court documents, on June 11, 2011, Henderson falsely claimed to have injured his shoulder while performing his duties as a mail carrier in Suffolk. The injury had actually occurred previously while off-duty. In addition to receiving compensation as a result of the false disability claim, Henderson filed hundreds of false travel claims seeking reimbursement for expenses related to obtaining medical treatment. He also failed to notify the Department of Labor after he returned to work and was able to unlawfully
“double-dip” by receiving workers’ compensation payments and his normal paycheck at the same time.Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, made the announcement after sentencing by Chief U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorney Randy Stoker 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. 2:15-cr-120.
Former New York State Assembly Speaker Sheldon Silver Sentenced in Manhattan Federal Court to 12 Years in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that former New York State Assembly Speaker SHELDON SILVER was sentenced this afternoon to 12 years in prison after having been found guilty by a federal jury of using his official position to obtain nearly $4 million in bribes and kickbacks in exchange for his official acts and obtaining another $1 million through laundering the proceeds of his crimes. SILVER was sentenced in Manhattan federal court by U.S. District Judge Valerie E. Caproni who also presided over the five-week jury trial.
U.S. Attorney Preet Bharara said: “Today’s stiff sentence is a just and fitting end to Sheldon Silver’s long career of corruption.”
According to the evidence introduced at trial, court filings, and statements made in Manhattan federal court:
For more than two decades, SHELDON SILVER served as Speaker of the New York State Assembly, a position that gave him significant power over the operation of state government. SILVER used this immense power – including, in particular, his power over the real estate industry and his control over certain health care funding – to unlawfully and corruptly enrich himself. Among other things, he unlawfully solicited and obtained client referrals worth millions of dollars in exchange for SILVER’s official acts, and attempting to disguise this money as legitimate outside income earned from his work as a private lawyer. In particular, SILVER claimed on financial disclosure forms required to be filed with New York State and in public statements that the millions of dollars he received in outside income while also serving as Speaker of the Assembly came from a Manhattan-based law firm, Weitz & Luxenberg P.C., where SILVER claimed to work representing individual clients in personal injury actions. These claims were materially false and misleading – and made to cover up unlawful payments SILVER received solely due to his official power and influence as an elected legislator and the Speaker of the Assembly.
The scheme provided SILVER with two different streams of unlawful income: (i) approximately $700,000 in kickbacks SILVER received by steering two real estate developers with business before the state legislature to a law firm with which he was associated, and (ii) more than $3 million in asbestos client referral fees SILVER received by, among other official acts, awarding $500,000 in state grants to a university research center of a physician who referred patients made ill by asbestos to SILVER at Weitz & Luxenberg.
Unlawful Income From the Real Estate Law Firm
SILVER entered into a corrupt relationship with Goldberg & Iryami, which specialized in making applications to New York City to reduce taxes assessed on properties. Beginning in at least 2000, SILVER approached two prominent developers of properties in Manhattan, Glenwood Management Corp. and The Witkoff Group, Inc., and asked them to hire Goldberg & Iryami. The developers – both of whom lobbied SILVER on real estate issues because their businesses depended heavily on favorable state legislation – agreed to use Goldberg & Iryami as SILVER had requested. Over the years, Witkoff and Glenwood Management, in particular, paid millions of dollars in legal fees to Goldberg & Iryami. SILVER received a cut from the legal fees amounting to nearly $700,000. SILVER had no public affiliation with Goldberg & Iryami and performed no legal work at all to earn those fees, which were simply payments for SILVER having arranged the business through his official power and influence.
While continuing to receive the fees and in furtherance of the scheme, SILVER took official action beneficial to Glenwood Management and Witkoff. For example, while SILVER was publicly associated with advocating for tenants, a proposal that benefitted Glenwood Management was in substantial part enacted in real estate legislation in 2011 with SILVER’s support.
Unlawful Income From Asbestos Client Referrals
SILVER also entered into a corrupt arrangement with Dr. Robert Taub, who was a leading physician specializing in the treatment of asbestos-related diseases, through which SILVER issued state grants and otherwise used his official position to provide favors to Dr. Taub so that Dr. Taub would refer and continue to refer his patients to SILVER at Weitz & Luxenberg, a firm with which SILVER was affiliated as counsel. Specifically, SILVER arranged for New York State to fund two grants – each for $250,000, and paid out of a secret and un-itemized pool of funds controlled entirely by SILVER – for a research center Dr. Taub had established. SILVER used his official position to provide Dr. Taub with other benefits as well, including helping to direct $25,000 in state funds to a not-for-profit organization for which one of Dr. Taub’s family members served on the board, and asking the CEO of a second not-for-profit to hire a second family member of Dr. Taub’s.
From 2002 to the present, SILVER received more than $3 million from legal fees Weitz & Luxenberg received from patients Dr. Taub had referred to SILVER at the firm while SILVER was taking official actions to benefit Dr. Taub. SILVER did no legal work whatsoever on these asbestos cases, his sole role having been to use his official position and access to state funds to induce Dr. Taub to provide him with these lucrative referrals.
Silver’s Efforts to Cover Up the Scheme
SILVER took various efforts to disguise his unlawful outside income and prevent the detection of his criminal scheme. SILVER listed on his official public disclosure forms that his outside income consisted of “limited practice of law in the principal subject area of personal injury claims on behalf of individual clients,” which was false and misleading. Beginning in 2010, SILVER’s disclosures changed to state that the source of his legal income was a “Law Practice” that “includ[ed]” being of counsel to Weitz & Luxenberg. SILVER never disclosed his relationship with Goldberg & Iryami or any work beyond what he claimed was a “personal injury” practice.
SILVER also repeatedly made false statements about his outside income in his public statements, including the following:
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SILVER claimed he performed legal work consisting of spending several hours each week evaluating legal matters brought to him by potential clients and then referring cases that appeared to have merit to lawyers at Weitz & Luxenberg.In fact, SILVER did no such work on the asbestos cases and obtained those referrals to Weitz & Luxenberg based on his corrupt arrangement with Dr. Taub.
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SILVER claimed his law practice involved the representation of “plain, ordinary simple people.”In fact, SILVER represented some of the largest real estate developers in the state, for whom favorable state legislation was critical to their business interests.
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SILVER claimed through his spokesperson that SILVER found clients by virtue of his having been a “lawyer for more than 40 years,” in a manner that was “not unlike any other attorney in this state, anywhere.” In fact, SILVER found his lucrative asbestos and real estate developer clients solely by virtue of his official position.
- SILVER stated through his spokesperson that “[n]one of his clients have any business before the state.” In fact, SILVER’s outside income included millions of dollars of fees obtained through Glenwood and Witkoff, both of which had significant business before the state, and Dr. Taub, to whose benefit SILVER provided state funding and other benefits related to SILVER’s official position.
In addition, SILVER thwarted the Moreland Commission to Investigate Public Corruption so that it would not learn of his illegal outside income, first by filing legal motions on behalf of the Assembly and taking other action to block the Moreland Commission’s investigation into legislators’ outside income.
Finally, SILVER laundered part of crime proceeds through private investment vehicles that yielded him another $1 million in ill-gotten gains.
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In addition to the prison sentence, Judge Caproni ordered SHELDON SILVER, 72, of New York, New York, to pay a $1.75 million fine, forfeit $5.3 million, and pay a $700 special assessment fee. SILVER also was sentenced to two years of supervised release. The Government had sought a fine above the Sentencing Guidelines level in light of the taxpayer-funded pension that Silver will received for the rest of his life, despite having been convicted of federal corruption offenses. In imposing the fine, Judge Caproni took into account Silver’s pension.
SILVER was found guilty by a unanimous jury on November 30, 2015, of two counts of honest services wire fraud, two counts of honest services mail fraud, two counts of extortion under color of official right, and one count of engaging in illegal monetary transactions.
U.S. Attorney Bharara praised the work of the Criminal Investigators of the United States Attorney’s Office and the Federal Bureau of Investigation, who jointly conducted this investigation.
This case was prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Carrie H. Cohen, Howard S. Master, Andrew D. Goldstein, and James McDonald are in charge of the prosecution.
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Former Mayor of Clinchco Pleads Guilty to Federal Fraud ChargesRead the Press Release
ABINGDON, VIRGINIA – The former mayor of Clinchco, Virginia in Dickenson County, pled guilty today in Federal Court to fraud charges stemming from her use of town funds used to make improvements and repairs to her personal home while she was Mayor, United States Attorney John P. Fishwick Jr. announced.
Peggy Sue Stanley Mickens, 50, of Clinchco, Virginia, pled guilty today to one count of theft concerning programs receiving Federal funds, one count of mail fraud and one count of wire fraud.
“This defendant misused her position of public trust for her own personal benefit,” United States Attorney John P. Fishwick Jr. said today. “We will continue to look into all manners of public corruption and prosecute those who misuse public money for their own benefit.”
According to evidence presented at previous hearings by Russell County Commonwealth’s Attorney and Special Assistant United States Attorney Brian Patton, Mickens was elected Mayor of Clinchco in May 2012, at which time she gained access to, and possession of the town’s banking instrument, credit cards, invoices and banking statements.
In 2013, Clinchco received approximately $20,000 from the Department of Housing and Urban Development [HUD] via a Community Development Block Grant, to be used to rehabilitate homes and/or construct new homes in the town.
Mickens admitted today that, without any type of procurement formalities or approval she hired a contractor to remodel her home and paid for it from the town’s BB&T bank account via a checks signed by Peggy Sue Stanley Mickens.
The defendant took these actions without the knowledge or consent of town officials.
Mickens also admitted today to using a Lowe’s credit card maintained by the Town of Clinchco on August 26, 2013. The defendant admitted to using the town’s credit card, without the knowledge or consent of town officials, to charge $662 from the Lowe’s store in Wise, Virginia to obtain materials for her personal home.
The investigation of the case was conducted by Federal Bureau of Investigation and the Virginia State Police. Russell County Commonwealth’s Attorney and Special Assistant United States Attorney Brian Patton prosecuted the case for the United States.
Former Letter Carrier Pleads Guilty in Scheme to Steal and Cash Hundreds of Postal Money OrdersRead the Press Release
NEWARK, N.J. – A Little Egg Harbor, New Jersey, man today admitted his role in a scheme to steal and convert hundreds of blank U.S. Postal Service money orders, resulting in nearly $200,000 in losses, U.S. Attorney Paul J. Fishman announced.
Jonel Normil, 26, pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of conspiring to embezzle, convert to his use and the use of others U.S. Postal Service money orders.
According to the documents filed in this case, other cases, and statements made in court:
Normil was employed as a letter carrier with the U.S. Postal Service in Cape May Court House, New Jersey. He also picked up and dropped off mail at the U.S. Post Office in Stone Harbor, New Jersey.
Normil admitted that he used his position as a letter carrier to steal hundreds of U.S. Postal Service money orders from the Stone Harbor and Cape May Court House post offices. Normil gave the stolen money orders to other conspirators, who made them look legitimate and imprinted them with dollar values of $900 or $1,000 before depositing them into bank accounts or cashing them at post offices in New Jersey, New York, and Georgia.
The charge for conspiring to embezzle, steal, and convert blank U.S. Postal Service money orders carries a maximum penalty of five years in prison and $250,000 fine. As part of his plea agreement, Normil agreed to the entry of a forfeiture order against him in the amount of approximately $181,000, which represents the approximate losses to financial institutions and the U.S. Postal Service resulting from the scheme. His sentencing is scheduled for Aug. 16, 2016.
U.S. Attorney Fishman credited special agents of the U.S. Postal Service, Office of the Inspector General, under the direction of Executive Special Agent in Charge Monica Weyler of the Eastern Area Field Office, and the U.S. Postal Inspection Service, under the direction of Inspector in Charge David W. Bosch, Philadelphia Division, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: H. Robert Boney Esq., Mays Landing, New Jersey
Former Enterprise Used Car Sales Manager in San Antonio Sentenced to Federal Prison in Fraud SchemeRead the Press Release
In San Antonio today, 37-year-old Jamie Dawn McCord of Universal City, TX, was sentenced to one year and one day in federal prison for embezzling over $200,000 from her former employer, Enterprise Holdings, announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, United States District Judge Xavier Rodriguez ordered that McCord pay $209,041.08 restitution to Enterprise Holdings and be placed on supervised release for a period of three years after completing her prison term.
On October 6, 2015, McCord, former San Antonio Area Sales Manager over used car sales for Enterprise, pleaded guilty to two counts of wire fraud. By pleading guilty, McCord admitted that between January 2007 and September 2014, she manipulated company records and provided false information to Enterprise officials in Texas and Missouri to hide the fact that she embezzled cash down payments from customers purchasing Enterprise vehicles in San Antonio.
This investigation was conducted by the FBI. Assistant United States Attorney Greg Surovic prosecuted this case on behalf of the Government.
Former DEA Agent Pleads Guilty to Tax Evasion and Witness TamperingRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Samuel Murad (62, Clearwater) has pleaded guilty to tax evasion and witness tampering. He faces a maximum penalty of 5 years’ imprisonment for the tax evasion count and up to 20 years in federal prison for the witness tampering count. His sentencing hearing has been set for August 4, 2016.
According to the plea agreement, in the mid-1990’s, while working as a DEA Special Agent, Murad served as the case agent in an investigation of a marijuana importation conspiracy. One of the participants in that conspiracy, J.P., was convicted and sentenced to 30 years in prison.
Around 2009, after Murad had retired from the DEA, J.P.’s attorney hired Murad to assist with their effort to obtain a reduction in J.P.’s prison sentence. Because Murad was the former case agent in this investigation, he was prohibited by federal law from being physically present in any formal or informal setting on behalf of J.P., to include meeting with an employee of DEA, or appearing on behalf of J.P. before a judge. DEA’s Office of Professional Responsibility also advised Murad that he could not communicate with the government on behalf of J.P. with the intent to influence the government.
Around this time, J.P.’s attorney met with DEA Special Agent Robert Joseph Quinn about plans to initiate an effort to obtain a sentence reduction for J.P. During their meeting, J.P.’s attorney informed Agent Quinn that Murad — a friend and former colleague of Quinn — was involved in the effort to reduce J.P.’s prison sentence. After this meeting, Agent Quinn contacted Murad about the sentence reduction effort. During their conversation, Murad asked Agent Quinn to handle, on the DEA end, the effort to obtain a sentence reduction for J.P. Agent Quinn then communicated with representatives from the U.S. Attorney’s Office to explore the possibility of obtaining the sentence reduction.
In June 2012, once arrests had been made related to J.P.’s cooperation efforts, Murad became frustrated at the prospect of not getting paid for his involvement in the J.P. matter. Murad sent a series of emails to J.P.’s brother demanding large sums of money to stay involved. In one email, Murad asked for $700,000 and said, “if we can’t come [to] some kind of understanding, then you guys get to keep your money and [J.P.] stays in jail because good luck getting him out without my testimony.” In a subsequent meeting with J.P.’s brother, Murad demanded $750,000 to stay involved in the matter. Ultimately, J.P.’s brother agreed to pay Murad $500,000 in cash.
On Friday, August 17, 2012, J.P.’s brother handed Murad a shopping bag containing $223,000 in cash. During this meeting, Murad asked J.P.’s brother how much money he had in his wallet. J.P.’s brother showed Murad that he had $800 in his wallet; Murad took that money and added it to the shopping bag full of cash. Murad also told J.P.’s brother to tell J.P. to “shut up” on the prison telephone. Although Murad did not tell J.P.’s brother why he gave this instruction, Murad knew that J.P.’s jail calls were being monitored by law enforcement.
After this meeting, Murad told Agent Quinn that he had received over $200,000 in cash from J.P.’s brother and had put it in a safe deposit box. Murad laughed that he had to get a larger safe deposit box because there was so much cash. Murad never paid taxes on the $223,800 he received from J.P.’s brother.
The FBI then began investigating the effort to obtain a sentence reduction for J.P. In an interview on November 22, 2013, Agent Quinn lied about Murad not receiving any money, other than expenses, for his work on the J.P. matter. After his interview with the FBI, Murad met with Agent Quinn and directed Quinn not to talk to the FBI. Murad attempted to corruptly persuade Agent Quinn not to provide the FBI with information about the $223,800 cash payment and Murad’s concealment of those funds in the safe deposit box.
On February 13, 2014, the FBI executed a search warrant on Murad’s safe deposit box and seized $73,420. Pursuant to a seizure warrant, the FBI also seized $60,139.03 from Murad’s checking account. The day after the search, Murad met with Quinn (who had retired from the DEA) and accused him of saying too much to the FBI, which Quinn denied. Murad, again, instructed Quinn not to talk to the FBI any further. Two months later, in his second interview with the FBI, Quinn lied again about Murad not getting paid by J.P.’s family. After being confronted by the FBI, Quinn ultimately told the truth.
Quinn previously pleaded guilty for his role in this case. His sentencing hearing has been set for May 11, 2016.
This case was investigated by Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Simon Gaugush and Josephine Thomas.
Former CEO of Pharmacy Dispensing Service Admits to Federal Tax ChargeRead the Press Release
NEWARK, N.J. – The former chief executive officer of a company that provided pharmacy dispensing services today admitted to filing a false federal income tax return, U.S. Attorney Paul J. Fishman announced.
Gary J. Sekulski, 68, of Flanders, New Jersey, pleaded guilty before U.S. District Judge Katharine S. Hayden to Count 3 of an indictment charging him with filing a false federal income tax return for tax year 2009.
According to documents filed in this case and statements made in court:
Sekulski was the CEO and President of Healthcare Corporation of America (HCA), a New Jersey company that controlled a pharmacy dispensing service to public and non-profit entities. Sekulski admitted that for tax year 2009, received approximately $172,000 from HCA that he willfully failed to report on his federal income tax return. Sekulski admitted that he prepared this return himself, signed it under penalty of perjury, and caused it to be filed with the IRS knowing that it falsely reported his income. He admitted that he intentionally filed materially false federal income tax returns with the IRS for the 2007 and 2008 tax years. In all, Sekulski failed to report approximately $353,000 in taxable income.
The tax count to which Sekulski pleaded guilty carries a maximum potential penalty of three years in prison and a fine of $250,000 or twice the amount of pecuniary gain or loss from the offense. Sentencing is scheduled for Sept. 8, 2016.
U.S. Attorney Fishman credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Lee M. Cortes Jr. and Shirley U. Emehelu, of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: William C. Cagney Esq., New Brunswick, New Jersey
Foreign Lottery Scams Continue to Target Idaho ResidentsRead the Press Release
BOISE – The United States Attorney’s Office and US Postal Inspectors have seen a recent uptick of sweepstakes fraud victims in Southeastern Idaho, to include the Pocatello, Montpelier and Preston areas. Inspectors’ last trip through the area to speak to victims discovered losses of over $70,000 due to foreign lottery scams.
Who Are Postal Inspectors?
The US Postal Inspection Service (USPIS) is the law enforcement, crime prevention and security arm of the US Postal Service (USPS), and is responsible for enforcing more than 200 federal laws in investigations of crimes that may adversely affect or fraudulently use the US Mail, the postal system or postal employees. Postal Inspectors are federal law enforcement agents who conduct investigations of postal-related crime, such as mail fraud and theft, violent crimes against postal employees, revenue fraud, dangerous mail, illegal drugs in the mail, and child exploitation conducted via the mail.
Foreign Lotteries Are Illegal!
Federal law (18 USC 1302) prohibits mailing any ticket, share or chance in a foreign lottery. If you respond to a solicitation, your name will be forwarded to a mailing list used by scammers. You will continue to receive solicitations.
What is a Foreign Lottery Scam and How Does it Typically Work?
Typically, this is how the sweepstakes scheme begins: You receive an offer by mail to enter a sweepstakes, claiming you could win a car, computer, a vacation or lots of money. You fill out the questionnaire and include your contact information, and mail it back to the address provided. Soon thereafter, you receive a phone call, email or mail stating you’ve won a cash sweepstakes/lottery and perhaps even a car.
However, in order to claim the prize, you need to send payment for taxes, processing, legal or customs fees. The payment is usually requested to be mailed to another US address, Jamaica/foreign country or wired to another person in the US or to another country.
The fraudsters gain victims’ trust through frequent phone conversations. Many victims tend to be older Americans, who are generally polite and trusting. Some are lonely, and enjoy the personal contact with someone they believe to be a “friend.” They have a hard time believing they’ve fallen for a scam, but these crooks are relentless and demanding. They may even threaten, coerce and use psychological intimidation to make victims give up their money.
How Can You Recognize an Illegal Foreign Lottery?
● Scammers mail letters to confirm victims’ winnings. Victims may be solicited via the mail.
● Victims are solicited by phone through heavy-handed marketing tactics and incessant calls.
● Victims are asked to pay fees, duties or taxes before they can collect their winnings.
● Once a victim responds to a solicitation, the scammer continues to contact them, asking for additional payments and promising even greater winnings.
● Scammers from other countries, such as Jamaica, Nigeria, Holland, Canada and the Philippines, target US victims.
● Scammers from overseas use Voice over Internet Protocol (VoIP) devices allowing them to disguise their international number and make it appear as if it were a domestic call coming from a US area code.
● Victims are typically asked to mail cash or wire money via Western Union or MoneyGram overseas.
● Recipients of cash payments are either co-conspirators, foreign nationals residing in the US or other victims who have become unknowing participants.
Improve Your Odds
Older Americans are often targeted by scammers. Speak with your older loved ones about the consequences of foreign lottery scams. A few protective- measures taken with their consent, and a simple conversation about avoiding scams could be the key to preserving their financial well-being.
● Confirm frequent unknown domestic or international calls
● Monitor all accounts for unusual activity
● Identify unknown and recurring payments
● Discuss repeated wire-transfer patterns of checks made out to cash
● Take notice of stacks of sweepstakes offers or prize notification letters around the home
● Talk about changes in living conditions-living beneath one’s means, past-due bills, etc.
● Do not answer the phone. It may be best to change your phone number.
You can report fraud online at postalinspectors.uspis.gov or get a copy of Form 8165, Mail Fraud Report, at your local Post Office. You can also file a complaint by calling 877-876-2455 (option 4).
Florida Man Pleads Guilty to Federal False Statements and Aggravated Identity Theft Charges in New MexicoRead the Press Release
ALBUQUERQUE – Clinton William Yetter, 50, of Gainesville, Fla., pleaded guilty yesterday in Albuquerque, N.M, federal court to false statements and aggravated identity theft charges.
Yetter was charged in a four-count indictment filed on May 29, 2013, with two counts of making false statements and two counts of identity fraud. The indictment alleged that Yetter made the false statements on Oct. 4, 2011 and May 2, 2012, in Bernalillo County, N.M., when applying for U.S. passports. It also alleged that Yetter used the name of another person in making the applications.
During yesterday’s change of plea hearing, Yetter pled guilty to the indictment without the benefit of a plea agreement. Yetter is in federal custody and will remain detained pending his sentencing hearing, which has yet to be scheduled.
At sentencing, Yetter faces a statutory maximum penalty of five years in prison on each of the false statements charges. He faces a mandatory two-year prison sentence on the identity theft charges, which must be served consecutive to any prison sentence imposed on the false statements charges.
This case was investigated by the U.S. Department of State, Diplomatic Security Service and is being prosecuted by Assistant U.S. Attorney Paul Mysliwiec.
Federal Jury Convicts Final Conspirator in $278 Million Investment Fraud SchemeRead the Press Release
Baltimore, Maryland – A federal jury convicted Richard Shusterman, age 53, of Highland Beach, Florida late on May 2, 2016, of conspiring to commit wire fraud and nine counts of wire fraud in connection with a complex scheme to defraud investors and lenders of $278 million by selling fraudulent investment portfolios of debts purportedly owed by hospital patients. U.S. District Judge James K. Bredar detained Shusterman pending a detention hearing scheduled for today at 11:00 a.m. Shusterman is the fourth and final conspirator to be convicted in the scheme.
The conviction 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; and Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
“Richard Shusterman and his co-conspirators perpetrated a brazen and complex Ponzi scheme that defrauded investors of more than $278 million,” said U.S. Attorney Rod J. Rosenstein. “The conspirators pretended that they were repaying investors with revenue earned by collecting debts, but they were really using the money of new victims to repay previous investors.”
According to trial evidence, Shusterman was a shareholder and president of International Portfolio, Inc. (IPI), located in Pennsylvania. Co-conspirator Robert Feldman was part owner of IPI, and president of United Consulting, Inc. Shusterman and Feldman represented that IPI had experience in the purchase, valuation, collection and resale of medical accounts receivable, comprising of past due patient accounts which the hospitals and other entities selling the accounts had been unsuccessful in collecting. Beginning on June 21, 2006, Shusterman and Feldman, through United Consulting and IPI, bought and sold consumer debt, including medical debt portfolios. From December 2006 through June 2008, IPI paid more than $25 million to purchase over $4.1 billion in medical accounts receivable, comprising more than 3,872,514 past due patient accounts.
Jonathan Rosenberg and Douglas Kuber operated Account Receivable Services, LLC (ARS) in New York, New York. They agreed to promote the sale of IPI debt portfolio. Pursuant to their agreement, Shusterman, through IPI, bundled the past due patient accounts from IPI’s inventory into investment portfolios, and then sold the portfolios to ARS at a discounted rate. ARS’s purchases of the medical debt portfolios from IPI came from investors who agreed to lend money to ARS on a fixed-term basis in return for a high, fixed interest rate. Shusterman and IPI agreed to manage the collection activity for each debt portfolio that IPI sold. Any funds collected by IPI were to be forwarded to escrow accounts opened and maintained by ARS, which, in turn, would use the funds to cover the periodic interest payments and outstanding balances owed to the investors.
Fraudulent Inflation of Purchase Prices for IPI Debt Portfolios to Obtain Larger Investor Loans
Rosenberg and Kuber misrepresented to investors that a loan secured by IPI debt portfolios would not be used to pay up-front fees and commissions associated with the investment offering. In fact, however, ARS and IPI devised an elaborate process involving the use of multiple escrow accounts and independent accountants to feign a transparent tracking of the deposit of the loan proceeds, the revenue from collection activity, the repayment of interest, and the sale of portfolios. Funds to pay a 5% to 10% fee would come from the investor’s loan proceeds. Pursuant to this undisclosed fee arrangement, ARS and IPI would agree to a concealed purchase price for a debt portfolio. Then they would tell the investor that the portfolio price was 5% to 10% higher than the concealed price.
Shusterman agreed to kickback the loan proceeds in excess of the true purchase prices to Rosenberg and Kuber. The kickbacks were characterized as a refund or a rebate. In so doing, ARS and IPI avoided the intricate escrow arrangement they had created to convince investors to finance the joint venture. From June 2007 to March 2009, Shusterman paid Kuber and Rosenberg kickbacks totaling in excess of $8 million.
In reliance on those misrepresentations, investors provided loans to ARS of approximately $145 million to purchase IPI debt portfolios, which IPI managed. Other investors purchased approximately $122,500,000 worth of IPI debt portfolios, which IPI also managed.
Fraudulent Inflation of Collection Results
In order to induce existing investors to maintain and increase their participation in the investment scheme and to persuade new investors to join, ARS and IPI falsely represented the amount of income being generated from the collection activity for the medical debt portfolios. It became apparent almost from the start that collections were significantly inadequate, not only in their failure to cover periodic interest payments that ARS owed its investors, but also to repay the investors’ principal.
Shusterman and Rosenberg agreed that IPI would advance ARS the money needed to make ARS’s periodic interest payments to the investors. From July 2008 to December 2009, and without the investors’ knowledge, Shusterman and his conspirators wired approximately 209 advances from IPI into the bank accounts of the ARS debt portfolios, which were subsequently used to pay periodic interest payments due to an investor and/or inflate the collection history of the respective investor debt portfolios. Misleading collection reports were created to deceive the investors.
After their plan to subsidize ARS with monthly advances was implemented, an investor was induced to fund the purchase of 12 more portfolios between July and November 2008, totaling approximately $65 million in new investments. Another investor representative living in West River, Maryland was induced to fund the purchase of a portfolio on November 8, 2008 for $10 million, and another portfolio on May 26, 2009 for $5 million.
To conceal poor collection results and artificial resale prices for IPI debt portfolios, and to assure a continuing flow of new funding into the investment scheme, Shusterman and his conspirators continued to solicit existing and prospective investors to purchase or finance IPI debt portfolios. In so doing, they fraudulently used new investor funds to make interest and resale payments in order to meet the investment benchmarks of prior investors.
As a result of the scheme, the loss to investors was $278 million.
Shusterman faces a maximum sentence of 20 years in prison. Judge Bredar scheduled his sentencing for October 11, 2016, at 11:00 a.m.
New Jersey residents Robert Feldman, age 68, of Beach Haven; Jonathan E. Rosenberg, age 47, of West Orange; and Douglas A. Kuber, age 55, of Livingston, previously pleaded guilty to their participation in the conspiracy and face a maximum sentence of 20 years in prison. Feldman, Rosenberg and Kuber are scheduled to be sentenced on June 2, 14 and 30, 2016, respectively.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein thanked the FBI and HSI Baltimore for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Martin J. Clarke and Leo J. Wise, who are prosecuting the case.
Elk Grove Man Sentenced to Two and a Half Years in Prison for National Guard Recruiting FraudRead the Press Release
SACRAMENTO, Calif. — Richard C. Sihner, 54, of Elk Grove, was sentenced today to two years and six months in prison for a scheme to fraudulently obtain bonuses in a recruitment program for the California National Guard, Acting United States Attorney Phillip A. Talbert announced.
On January 22, 2016, after a seven-day trial, a jury found Sihner guilty of 18 counts of wire fraud relating to his scheme to receive unearned recruiting bonuses relating to California National Guard enlistees. The jury also convicted Sihner of one count of making false statements to a federal agent.
In sentencing Sihner, United States District Judge John A. Mendez rejected the suggestion that any blame for the crime rested with others involved in the process. “You, and you alone, are responsible,” said Judge Mendez.
“Integrity is a California National Guard core value, and we're committed to holding our soldiers and airmen accountable if they elect to commit fraud,” said Maj. Gen. David S. Baldwin, Adjutant General for the California National Guard. “These cooperative efforts by the U.S. Attorney's Office continue to help us ensure we remain not only a capable force, but also an ethical force worthy of the people's trust.”
Sihner is a retired member of the California National Guard and participated in the Guard Recruiter Assistant Program (G-RAP). The United States Army contracted with Document and Packaging Broker Inc. (DOCUPAK) to administer G-RAP. Under G-RAP, members of the California National Guard served as recruiting assistants (RA). If an RA referred a potential Guard member to a recruiting office and that person ultimately enlisted, the RA was eligible to receive monetary compensation disbursed by DOCUPAK. RAs would typically receive a $1,000 payment when a nominee enlisted and a second $1,000 payment when the nominee left for boot camp. Ultimately, the G-RAP program was discontinued following the discovery of widespread fraud. Recruits who walked into recruiting offices entirely on their own initiative and were not referred by an RA, were claimed by corrupt RAs in DOCUPAK’s system, often with the assistance of corrupt recruiters.
According to evidence produced at trial, from December 27, 2007 to April 16, 2010, Sihner was an RA in the G-RAP program. A recruiter gave him information about new recruits so that Sihner could falsely claim to have referred them. Sihner made false claims and wrote elaborate falsehoods in the notes section of the DOCUPAK online portal indicating that he had referred the recruits. In fact, the recruits had made contact with the Guard to discuss potential enlistment for reasons entirely unrelated to Sihner. Sihner was paid $95,000 in compensation for purportedly referring 51 soldiers to enlist. Of the 39 recruits federal agents contacted prior to indictment, none had been referred to the Guard by Sihner. When confronted, Sihner lied to federal law enforcement agents investigating the fraud by repeatedly claiming that he had personally referred all of the new soldiers and that he had taken them to the recruiting office to introduce them.
This case was the product of an ongoing investigation by the Army Criminal Investigative Command Major Procurement Fraud Unit, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation. Assistant United States Attorneys Matthew G. Morris and Katherine T. Lydon prosecuted the case.
Other National Guard members and recruiters have been charged in similar recruiting‑fraud schemes in the Eastern District of California. The following defendants have pleaded guilty and await sentencing.
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2:14-cr-153 TLN — Brian Kaps, 42, of Chico, pleaded guilty on November 21, 2014, to one count of wire fraud. Sentencing is set for August 18, 2016.
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2:14-cr-152 TLN — Sarah Nattress, 28, of Paradise, pleaded guilty on October 23, 2014, to one count of wire fraud. Sentencing is set for May 26, 2016.
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1:14-cr-108-LJO — Nicholas Huerta, 33, of Fresno, pleaded guilty on September 14, 2015, to one count of wire fraud. Sentencing is set for November 14, 2016.
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1:14-cr-106 DAD — Joaquin Cuenca, 38, of San Diego, was a recruiter. On February 2, 2016, a jury found him guilty of three counts of wire fraud for fraudulent bonuses. He is scheduled for sentencing on July 18, 2016.
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District Man Sentenced to 77 Months in Prison for Robbing Two Grocery Stores over Five-Day PeriodRead the Press Release
WASHINGTON - Christopher Tyler, 38, of Washington, D.C., was sentenced today to a 77-month prison term on federal charges stemming from two robberies of grocery stores, U.S. Attorney Channing D. Phillips announced.
Tyler pled guilty in March 2016, in the U.S. District Court for the District of Columbia, to two counts of interference with interstate commerce by robbery. He was sentenced by the Honorable Tanya S. Chutkan. Following his prison term, he will be placed on three years of supervised release.
According to the government’s evidence, on July 25, 2014, at approximately 10:50 p.m., Tyler entered a Safeway store in the 1600 block of Maryland Avenue NE. He was wearing a mask and was armed with what appeared to be a black handgun. Tyler pointed the weapon at store employees and demanded that they “open the money room.” A cashier indicated that she did not have a key to the room. Tyler then used a newspaper rack to climb over a wall into the room where the store’s safe was located. He then robbed the store of money that had been received through that evening’s sales. He fled and was not apprehended that night.
On July 30, 2014, at approximately 10:50 p.m., Tyler entered another Safeway store, this time in the 1100 block of Fourth Street SW. He again was armed with what appeared to be a black handgun and again was wearing a mask. Tyler forced a store employee to open the room where another employee was counting the night’s proceeds and putting the money into the store’s safe. He demanded that an employee fill a bag with money.
Tyler then fled the store with approximately $15,000 in cash. Officers from the Metropolitan Police Department (MPD), responding to a 911 call for a robbery, arrived just as Tyler was running from the store. Officers stopped him after a brief foot chase. The officers recovered a black pellet gun that strongly resembles a semi-automatic handgun from the defendant. The officers also recovered the money that he dropped while attempting to escape. Tyler has been in custody since his arrest.
In announcing the sentence, U.S. Attorney Phillips commended the work of the officers, detectives, and others who worked on the case from the Metropolitan Police Department. He also praised the efforts of those who worked on the case from the FBI’s Washington Field Office. Finally, he acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Jin Park, Thomas Swanton, and Nihar Mohanty.
Departments of Justice and Education Reach Settlement with Arizona Department of Education to Meet the Needs of English Language Learner StudentsRead the Press Release
The Departments of Justice and Education entered into a voluntary settlement agreement late yesterday with the Arizona Department of Education (ADE) under the Equal Educational Opportunities Act and Title VI of the Civil Rights Act of 1964. The agreement requires ADE to raise its English proficiency criteria to properly identify English language learner (ELL) students in grades three through 12 and to properly determine when those students no longer need language services. The agreement also requires ADE to ensure that Arizona public schools offer language support services to thousands of students who were prematurely moved out of language services or incorrectly identified as initially fluent English proficient from the 2012-13 school year to the present.
The agreement follows a separate settlement agreement with the United States on April 22, 2016, that requires ADE to raise its proficiency criteria for identifying ELL students in kindergarten and to offer language services to ELL students incorrectly identified as English proficient in kindergarten. That agreement also requires ADE to ensure that ELL students who opt out of ELL services have their English language proficiency assessed every year until they are proficient in English.
“We commend Arizona’s Superintendent of Public Instruction and ADE for voluntarily agreeing to take these important steps to ensure that ELL students are timely identified and receive language services critical to their academic success,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.
“Today’s agreement recommits the State of Arizona to fully serve all Arizona ELL students so they will receive the services they need to be college and career ready,” said Assistant Secretary Catherine E. Lhamon for the Department of Education’s Office for Civil Rights. “We are thrilled for the thousands of students every year who will benefit from this critically important agreement.”
These agreements arise out of the departments’ monitoring of a 2012 settlement agreement with ADE that aimed to resolve the departments’ findings that ADE had under-identified and prematurely removed from ELL status and ELL services tens of thousands of ELL students between 2006 and 2012. As contemplated in that 2012 settlement agreement, the departments and ADE resolved issues that arose during monitoring with the agreements announced today.
The Equal Educational Opportunities Act requires state and local education agencies to take appropriate action to overcome language barriers that impede students’ equal participation in instructional programs, and Title VI of the Civil Rights Act of 1964 bans discrimination on the basis of race and national origin by schools that receive federal funds. Enforcing these laws is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt. Enforcement of Title VI is also a top priority of the Department of Education’s Office for Civil Rights. Additional information about the Department of Education’s Office for Civil Rights is available on its website at www.ed.gov/ocr/.
ADE Kindergarten Settlement Agreement
ADE Grades 3-12 Settlement Agreement
Defendant Sentenced to 30 months in Prison for CounterfeitingRead the Press Release
BOISE - Joseph Bylow, 32, of Eagle, Idaho, was sentenced today in United States District Court to 30 months in prison for counterfeiting, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Bylow to pay restitution in the amount of $644. Bylow pleaded guilty on November 12, 2016.
According to the plea agreement, Bylow admitted that in July and August 2015, he and a co-defendant manufactured and passed counterfeit Federal Reserve Notes to various businesses in Eagle, Boise, and Emmett, Idaho. Initially, Bylow and his co-defendant manufactured counterfeit one dollar notes by printing images of these notes on cotton paper stock. When officers of the Ada County Sheriff’s Office contacted Bylow and his co-defendant at their home, both admitted counterfeiting one dollar notes and passing them at various businesses. Officers seized items including an Epson printer, cotton business paper, a paper cutter, and sheets of paper with one-dollar notes printed on them. Shortly thereafter, Bylow and his co-defendant began manufacturing counterfeit ten and fifty dollar notes by washing or bleaching one and five dollar notes and using them as blanks to print ten and fifty dollar notes. When a search warrant was executed on Bylow and his co-defendant’s residence, they were in possession of acetone, peroxide liquid bleach, copy paper, transparent tape, carpet cleaner, and a spray bottle—items used by Bylow and his co-defendant for manufacturing counterfeit notes. Approximately $500 of counterfeit $5, $10, and $50 bills in various stages of production were recovered during the execution of the search warrant. Approximately $644 of counterfeit notes in denominations of one, ten, and fifty dollars were recovered as passed by Bylow and his co-defendant.
The case was investigated by the United States Secret Service, the Ada County Sheriff’s Office, and the Boise Police Department.
Dallas Man Sentenced to More Than 17 Years in Federal Prison for Role in Takeover-Style Robbery of AT&T Store in Grand PrairieRead the Press Release
DALLAS — The ring-leader of a group of individuals who were involved in the January 2015 take-over style robbery of an AT&T store in Grand Prairie, Texas, was sentenced yesterday to a lengthy federal prison sentence, announced U.S. Attorney John Parker of the Northern District of Texas.
Luther Elder, 30, of Dallas, was sentenced to 210 months in federal prison by U.S. District Judge David C. Godbey, following his guilty plea in December 2015 to one count of interference with commerce by robbery and aiding and abetting. Elder was also ordered to pay $13,854 in restitution.
According to documents filed in the case, on January 23, 2015, Elder recruited co-defendants Chambrezia Johnson, 26, and Anthony Poe, 22, as well as another unknown individual, to assist him and co-defendant Brandon Walker, 29, in robbing an AT&T store in Grand Prairie. Upon picking up Johnson and Poe and the unknown individual, Elder and Walker drove the group to a Wal-Mart in Grand Prairie, where Elder purchased a duffel bag and an “air gun” that was intended to be used in the robbery.
After arriving at the AT&T store, Johnson and Walker entered the store to scout it out and determine how many people were in the store. They left and advised Elder, who then instructed Poe and the unknown individual to rob the store and for Johnson to stay in the back of the store as a potential getaway driver.
At approximately 1:23 p.m., Poe entered the store carrying the “air gun” while the unknown individual entered and brandished what appeared to be a firearm. Poe and the unknown individual ordered all of the employees to the back of the store and the unknown individual struck an 81-year-old customer on the side of the head, because she was not complying fast enough with his demands, and then drug her to the rear of the store by her neck. Poe and the unknown individual demanded cash and cell phones from the victims, fled the store, and were picked up by Elder and Walker. Elder and Walker than dropped off Poe and the unknown individual at a motel before being arrested as they were in route to sell the stolen phones.
Defendants Walker, Poe and Johnson, all Dallas residents, have each pleaded guilty to one count of interference with commerce by robbery and aiding and abetting; each faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine on that conviction. Poe also pleaded guilty to one count of possession with intent to distribute at least 28 grams of crack cocaine. On that conviction, Poe faces a statutory penalty of not less than five or more than 40 years in federal prison. Sentencing dates are set for later this month and in June 2015.
The case was investigated by the Grand Prairie Police Department, the Dallas Police Department and the Federal Bureau of Investigation.
Assistant U.S. Attorney Brian Poe is in charge of the prosecution.
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Cave City, Kentucky, Physician Guilty of Illegally Dispensing Controlled Substances Outside of His Professional Medical Practice and Health Care FraudRead the Press Release
BOWLING GREEN, Ky. – A Barren County, Kentucky, physician pleaded guilty today in United States District Court to seven criminal counts of knowingly and intentionally distributing and dispensing controlled substances outside the course of professional medical practice and health care fraud, while he was a practicing physician in the Western District of Kentucky, announced United States Attorney John E. Kuhn, Jr.
Dr. Christopher Steward, of Cave City, was a dentist and a nurse practitioner with a practice located at 212 Broadway in Cave City and had a Drug Enforcement Agency registration number which authorized him to write prescriptions within the course of professional medical practice.
According to the plea agreement, on six separate occasions, between March 6, 2015, and June 6, 2015, Steward intentionally conspired with patients to acquire possession of Schedule II and Schedule IV controlled substances, through misrepresentation and fraud, outside the course of medical practice, in order to distribute and/or acquire possession of prescription pills, mostly for his own use.
Further, Steward admits that on June 6, 2015, he willfully executed a scheme to defraud Kentucky Medicaid, a health care benefit program, in connection with the delivery of payment for health care benefits, by writing a prescription for alprazolam, a Schedule IV controlled substance, for a patient without the patient’s knowledge or consent. That prescription was subsequently filled by someone other than the patient, again without the patient’s knowledge or consent, and Steward obtained those pills. That fraudulent prescription was paid for by Kentucky Medicaid, through Coventry Managed Care.
Steward was arrested on April 13, 2016, made an initial appearance before Magistrate Judge H. Brent Brennenstuhl, in Bowling Green, and released on a $25,000 unsecured bond.
At the time of sentencing, the United States will move for dismissal of Count 8 of the Indictment (identity theft) and agree that a sentencing range between 18 months of imprisonment and 30 months of imprisonment is the appropriate disposition of this case. Further, the defendant will agree to forfeit property located at 212 Broadway Street in Cave City, Kentucky, and a 2009 Ford F-150 white pickup truck.
The case is being prosecuted by Assistant United States Attorney David Weiser, and it results from an investigation conducted by the Federal Bureau of Investigation (FBI) and Kentucky State Police.
Cape May County, New Jersey, Man Sentenced to 10 Years in Prison for Possessing Images of Child Sexual AbuseRead the Press Release
CAMDEN, N.J. - A West Wildwood, New Jersey, man was sentenced today to 120 months in prison for possessing images and videos of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
Jeffrey Spicer, 45, previously pleaded guilty before U.S. District Judge Joseph E. Irenas to an information charging him with one count of knowingly possessing child pornography. U.S. District Judge Jerome B. Simandle imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Spicer admitted that he possessed images and videos of child sexual abuse on electronic and digital media that were seized from his residence pursuant to a search warrant executed on March 19, 2014. According to a forensic examination of these items, numerous images and videos of child sexual exploitation were discovered, including images on his cellular telephone, which he saved by taking screenshot photos with the telephone. The forensic examination further revealed that Spicer was using a password-protected “app” on his cell phone to store the child pornography.
In addition to the prison term, Judge Simandle sentenced Spicer to 10 years of supervised release and ordered him to pay $7,200 in restitution.
U.S. Attorney Fishman credited special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Terence S. Opiola; the Cape May County Prosecutor’s Office, under the direction of Prosecutor Robert L. Taylor; the Lower Township Police Department, under the direction of Chief William Mastriana; and the West Wildwood Police Department, under the direction of Chief Jackie Ferentz, with the investigation leading to today’s sentencing.
HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-347-2423 or by completing its online tip form. Both are staffed around the clock by investigators. For additional information about wanted suspected child predators, download HSI’s Operation Predator smartphone app or visit the online suspect alerts page.
The government is represented by Assistant U.S. Attorney Matthew J. Skahill of the U.S. Attorney’s Office Special Prosecutions Division in Camden.
Defense counsel: Lisa Evans Lewis Esq., Camden
Australian Man Sentenced to 78 Months for Distributing and Possessing Child PornographyRead the Press Release
ALBANY, NEW YORK – Matthew Hynd, age 40, of Mundah, Queensland, Australia, was sentenced today to serve 78 months in prison for distributing and possessing child pornography.
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.
In 2010, while Hynd was living and working in Albany, FBI Agents executed a search warrant on his home, after Hynd distributed child pornography images over the Internet. Agents found hundreds of images of child pornography on Hynd’s computers. Hynd then fled the United States and returned to his native Australia.
Hynd was indicted in 2012 and extradited from Australia in August 2015. In December 2015, he pled guilty to one count of distribution of child pornography and two counts of possession of child pornography.
U.S. District Judge Mae A. D’Agostino also sentenced Hynd to serve a lifetime term of post-imprisonment supervised release, to forfeit several electronic devices on which child pornography was found, and to pay $1,000 in restitution to a child pornography victim.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Katherine Kopita.
Arrowsic Man Sentenced to Six Months for Social Security FraudRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Robert Caton, 73, of Arrowsic, Maine, was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to six months in prison and three years of supervised release for social security fraud. He was also ordered to pay $162,786.80 in restitution. He pleaded guilty to the charge on January 6, 2016.
According to court documents, Caton’s mother received retirement and survivors benefits following the death of her husband. The benefits were deposited into a joint account he held with her. When she died in September 2000, Caton did not notify the Social Security Administration (SSA) of her death. As a result, benefits continued to be deposited into the joint account until September 2014. At that time, the excess payments totaled $162,786.80. Caton used all but about $15,000 of these funds to pay personal bills and expenses.
In pronouncing sentence, Judge Torresen noted that Caton’s crime was a serious offense against all taxpayers that continued for 14 years and netted significant money, but also considered Caton’s age, health issues and lack of criminal history in imposing the sentence.
The investigation was conducted by the SSA’s Office of Inspector General.
Armed Drug Dealer Sentenced to 10 YearsRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis today sentenced Darrell Maxwell (26, Satsuma) to 10 years in federal prison for possessing Molly, a Schedule I controlled substance, with the intent to distribute it and possessing a firearm in furtherance of that drug trafficking crime. He pleaded guilty on December 14, 2015.
According to court documents, on June 10, 2015, Maxwell arrived at a gas station in Palatka where he had planned to sell Molly. Members of the Tri-County Drug Task Force were aware that Maxwell was in possession of the Molly and subsequently arrested him. During a search, a loaded .40 caliber pistol was recovered from Maxwell’s pants.
This case was investigated by the Florida Department of Law Enforcement, the Putnam County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It was prosecuted by Assistant United States Attorney Frank Talbot.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy on reducing violent crime in communities.
Arkansas Man Pleads Guilty to Selling Counterfeit Garmin MapsRead the Press Release
KANSAS CITY, KAN. – An Arkansas man pleaded guilty Tuesday to selling counterfeit Garmin maps over the Internet, Acting U.S. Attorney Tom Beall said.
William Yates, 26, Fort Smith, Ark., pleaded guilty to one count of copyright infringement. In his plea, he admitted selling map products that were copyrighted by Garmin. Garmin International, Inc. is located in Olathe, Kan.
Yates sold counterfeit Garmin map cards on eBay, Amazon and Craigslist. An investigator with the FBI purchased cards from Yates.
He sold at least 874 counterfeit map products for more than $23,000. The products were valued at more than $67,000.
Sentencing will be set for a later date. He faces a maximum penalty of five years in federal prison and a fine up to $250,000. Beall commended the FBI and Assistant U.S. Attorney Scott Rask for their work on the case.
Alexandria Adult Day Healthcare Center Settles Civil Fraud AllegationsRead the Press Release
ALEXANDRIA, Va. – Agape Health Management, Inc., which operates under the name Agape Adult Day Healthcare Center, located in Alexandria, has agreed to pay $385,917 to settle federal and state civil fraud allegations that claimed Agape submitted false claims for reimbursement to the Virginia Medicaid Program.
Agape operates a facility located in Alexandria that provides adult day health care primarily for Virginia Medicaid recipients. The services provided include community-based health, therapeutic, and social services designed to meet the specialized needs of elderly and disabled recipients. Agape also provides transportation services to and from their facility. The allegations include claims that Agape knowingly submitted false or fraudulent claims for transportation services purportedly provided to Virginia Medicaid recipients that were not present or transported to the Agape facility on the claimed dates of service.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia, the Virginia Attorney General’s Office Medicaid Fraud Control Unit, the U.S. Department of Health and Human Services Office of Inspector General, the Virginia Department of Medical Assistance Services, and the FBI's Washington Field Office.
The matter was investigated by Assistant U.S. Attorney Monika Moore, Assistant Attorney General Erica Bailey, and Assistant Attorney General Megan Winfield of the Virginia Attorney General’s Office Medicaid Fraud Control Unit. The civil claims settled by this Federal False Claims Act and Virginia Fraud Against Taxpayers Act agreement are allegations only; there has been no determination of civil liability.
A copy of the settlement agreement along with this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Albuquerque Man Sentenced for Conviction Arising Out of String of U.S. Post Offices Burglaries in Fall of 2015Read the Press Release
ALBUQUERQUE – Ronnie D. Rael, 30, of Albuquerque, N.M., was sentenced today in federal court to 18 months in federal prison followed by two years of supervised release for his conviction on burglary and theft charges arising out of the burglaries of Albuquerque area post offices in Oct. and Nov. 2015.
Ronnie Rael and codefendant Venessa Rael, 48, also of Albuquerque, were arrested in Dec. 2015, on a criminal complaint charging them with burglary of a U.S. Post Office and theft of stolen mail. According to the complaint, the Foothills and Academy Stations of the U.S. Postal Service in Albuquerque experienced several alarm activations in Oct. and Nov. 2015. Surveillance video from those Post Offices revealed that Ronnie Rael and Venessa Rael removed large amounts of mail from the Post Offices when the alarms were activated. The complaint charged Ronnie Rael and Venessa Rael with attempting to use credit cards stolen from the Post Offices in Nov. 2015.
Ronnie Rael and Venessa Rael were subsequently charged in a five-count indictment that was filed on Dec. 17, 2015. Counts 1 and 5 charged Ronnie Rael alone with theft of mail on Nov. 15, 2015 and with breaking into a Post Office on Nov. 26, 2015. Counts 2, 3 and 4 charged Rael and his codefendant with fraudulently attempting to obtain money from the bank account of a person who had not authorized them to do so on Nov. 16, 2015; breaking into a Post Office on Nov. 17, 2015; and theft of mail on Nov. 17, 2015.
On Feb. 1, 2016, Ronnie Rael pled guilty to all five counts of the indictment without the benefit of a plea agreement. Codefendant Venessa Rael pled guilty to Counts 2, 3 and 4 of the indictment on April 14, 2016. At sentencing, Venessa Rael faces a maximum penalty of five years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorney Paul Mysliwiec.
Monday 2 May 2016
“Santa Claus” Convicted of Distributing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 38-year-old Corpus Christi man who worked as a Santa Claus impersonator has pleaded guilty to distribution of child pornography, announced U.S. Attorney Kenneth Magidson. Reynaldo Ramirez was arrested on a criminal complaint Dec. 24, 2015.
The court heard today that the case began when a detective with the Corpus Christi Police Department was able to successfully download various files containing child pornography from an IP address that was associated with Ramirez. As a result, Homeland Security Investigations was contacted to assist in the investigation (HSI).
In December 2015, authorities executed a search warrant at Ramirez’s residence, at which time they seized several digital devices. At the time of the search, authorities located a Santa Claus costume in Ramirez’s residence. When questioned about the outfit, Ramirez stated he had performed as Santa Claus for the past 15 years throughout the South Texas area.
Ramirez admitted that he had been viewing child pornography for approximately six years. He told authorities he had downloaded more than 1,000 images of child pornography ranging in ages from toddlers to pre-teens. Ramirez also admitted to sexually assaulting a four-year-old child.
U.S. District Judge Nelva Gonzales Ramos accepted the guilty plea today and set sentencing for Aug. 10, 2016. At that time, Ramirez faces a minimum of five and up to 20 years in federal prison and a possible $250,000 maximum fine. Upon completion of any prison term imposed, Ramirez also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
Ramirez has been in custody since his arrest where he will remain pending his sentencing.
The charges against Ramirez are the result of an investigation conducted by the Corpus Christi Police Department-Internet Crimes Against Children Task Force with the assistance of HSI.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
“Pimp” Pleads Guilty in Federal CourtRead the Press Release
DALLAS — Kenneth Richardson, 33, of Dallas, pleaded guilty Friday afternoon, before U.S. District Judge Sidney A. Fitzwater, to one count of using a facility of interstate commerce in aid of a racketeering enterprise, stemming from his operation of a prostitution “ring,” announced U.S. Attorney John Parker of the Northern District of Texas.
Richardson has been in custody since his arrest in November 2015 on an indictment charging him with that offense. He faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. Sentencing is set for August 19, 2016.
According to plea papers filed in his case, from approximately July 2014 to mid-August 2015, Richardson engaged in a prostitution enterprise in various hotels in Dallas, including the Crowne Plaza located off of Interstate 35. During this time, Richardson was employed as a U.S. military contractor, and his duties included assisting new military recruits as they began processing into the military. As part of his job, Richardson had access to numerous hotel rooms at that hotel each day.
Richardson recruited several women to work for him in his prostitution enterprise and used a cell phone and hotel rooms to promote, manage, and facilitate their involvement in commercial sex acts. On more than one occasion, Richardson provided the women with hotel rooms at the Crowne Plaza to which he had access by virtue of his employment and at no cost to himself or the women. Richardson used a cell phone to communicate with these women regarding their prostitution activities, and he received payments from the women that they earned from engaging in those commercial sex acts.
The FBI is in charge of the investigation. Assistant U.S. Attorney Cara Foos Pierce is in charge of the prosecution.
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United States Attorney’s Office Conducts Onsite Review of Various Polling Locations on Primary Day to Ensure Access by Disabled AmericansRead the Press Release
ALBANY, NEW YORK – United States Attorney Richard S. Hartunian announced today that his office’s Civil Division conducted a review of polling locations in Albany and Onondaga Counties to determine whether the polling places comply with the Americans with Disabilities Act of 1990 (ADA).
"The right to vote is one of the most valuable rights protected by our Constitution, but that right is meaningless if there are physical barriers that prevent people from casting their ballot," said U.S. Attorney Hartunian. "Protecting the rights of persons with disabilities is a major focus of my office’s civil rights work, and my office will continue to vigorously ensure compliance with the ADA in the Northern District of New York."
The U.S. Attorney’s Office selected locations for review to ensure that they are accessible to the large numbers of residents who are expected to vote at these polling locations during the Presidential primary election. In a study following the previous Presidential election, the Government Accountability Office found that only 27% of polling places had no potential impediments to access by people with disabilities, meaning 73% of polling locations contained architectural barriers to voting. This initiative is being conducted in accordance with the Department of Justice’s statutory responsibility to review compliance with federal law and not in response to any specific complaint against any of the polling locations.
Federal law prohibits discrimination on the basis of disability by the owners and operators of places of public accommodation, including polling locations, and protects the right to participate in state and local government programs and services. The U.S. Attorney’s Office periodically undertakes ADA compliance reviews to ensure equal access for people with disabilities.
As part of its ADA compliance review, attorneys, architects, and staff from the U.S. Attorney’s Office and the Department of Justice surveyed 35 polling places in Albany and Onondaga Counties. If these site visits revealed that a particular polling location is not in compliance with the ADA, the U.S. Attorney’s Office will notify the appropriate state and local official of the violation and will provide a timeframe to correct the issue(s). The goal is to ensure that all polling locations are fully compliant in time for the Presidential election on Nov. 8, 2016.
The U.S. Attorney’s Office encourages affected citizens to report ADA violations at polling locations. Complaints concerning locations in the Northern District of New York may be submitted via the U.S. Attorney’s Office’s Civil Rights Hotline at (518) 618-1619 or by completing the U.S. Attorney’s written civil rights complaint form, which may be found at www.justice.gov/usao-ndny/contact-us/Civil%20Rights.
Two Members of Southern Maryland Drug Trafficking Conspiracy Each Sentenced to 10 Years in PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Colbert Juan Jones, Jr., age 33, of St. Leonard, Maryland today to 10 years in prison, followed by four years of supervised release, for conspiracy to distribute and possess with intent to distribute powder cocaine and for being a felon in possession of a firearm. Judge Chasanow also issued an order requiring Jones to forfeit over $20,000 in drug proceeds, two cars, two shotguns, and ammunition.
On April 29, 2016, Judge Chasanow sentenced co-conspirator Vincent Leo Fletcher, age 29, of Clinton, Maryland to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute powder and crack cocaine.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Frank Riehl of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Chief Hank Stawinski of the Prince George’s County Police Department; Acting Chief Stanley Johnson, of the Maryland National Capital Park Police, Prince George’s County Division; Charles County Sheriff Troy Berry; St. Mary’s County Sheriff Tim Cameron; and Calvert County Sheriff Mike Evans.
According to their plea agreements and other court documents, from January through July 2015, Jones and Fletcher conspired with Troy Taishon Swann, Antoine Dewayne Savoy, and James Devwan Pixley, to distribute cocaine. Jones obtained cocaine from Fletcher and other sources. Fletcher obtained two to 20 ounces of cocaine several times a month from Swann and other suppliers. Fletcher distributed the cocaine to his customers for further distribution, and used some of the powder cocaine to manufacture crack cocaine, which he also distributed.
Jones sold cocaine to his customers, which included Savoy and Pixley. Jones often distributed the cocaine from the home of a female friend in Prince Frederick, Maryland, which Jones used as a stash house. Savoy and Pixley generally purchased cocaine from Jones several times a month and used at least half of that cocaine to manufacture crack cocaine, which they sold. On August 6, 2015, a search of Jones’ stash house in Prince Frederick recovered: approximately 100 grams of cocaine and drug processing paraphernalia, which Jones had attempted to hide inside an audio speaker in the basement of the residence; a 20 gauge shotgun; and 14 rounds of ammunition. A search of Jones’ residence on that same day recovered a 12 gauge shotgun and two boxes of ammunition, as well as $22,704 in cash, proceeds of Jones’ drug distribution. Jones had been previously convicted of a felony and was prohibited from possessing firearms or ammunition.
Troy Taishon Swann, age 39, of Waldorf; Antoine Dewayne Savoy, age 35, of Lusby, Maryland; and James Devwan Pixley, age 25, of Waldorf, Maryland, have pleaded guilty to their participation in this drug trafficking conspiracy. In addition, Pixley admitted to possessing a firearm in furtherance of a drug trafficking crime and Swann admitted to being a felon in possession of ammunition.
Pixley and the government have agreed that if the Court accepts his plea agreement Pixley will be sentenced to between 10 and 14 years in prison. Judge Chasanow has scheduled sentencing for Pixley on June 6, 2016 at 9:30 a.m. Judge Chasanow has scheduled sentencing for Savoy on June 27, 2016 at 12:30 p.m. and for Swann on July 11 2016 at 11:00 a.m.
United States Attorney Rod J. Rosenstein praised the ATF, DEA, Prince George’s County Police Department, Maryland National Capital Park Police, Prince George’s County Division, and the Charles, St. Mary’s and Calvert County Sheriffs’ Offices for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Michael T. Packard and Leah J. Bressack, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Two Hamden Men Admit Distributing Oxycodone Involved in Weston OverdoseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that TAHIR FARID, 22, and RYAN LOONEY, 19, both of Hamden, have pleaded guilty to federal oxycodone distribution charges. The charges stem from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on January 3, 2016, a 22-year-old male purchased 30 40-milligram oxycodone pills from FARID in exchange for $900. He then consumed some of those pills, as well as other substances. On January 5, 2016, the 22-year-old male was found unresponsive at a friend’s residence in Weston. He remains unresponsive and, according to medical personnel, is in a “persistent vegetative state.”
The investigation revealed that, prior to the victim’s overdose, LOONEY supplied FARID with oxycodone pills. FARID then distributed the pills to the victim.
FARID and LOONEY were arrested on federal criminal complaints on February 22 and February 29, respectively.
Today, LOONEY waived his right to indictment and pleaded guilty in Hartford federal court to one count of possession with intent to distribute, and distribution of, oxycodone. He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on August 11, 2016. The charge carries a maximum term of imprisonment of 20 years.
On April 26, 2016, FARID pleaded guilty to the same charge. He is scheduled to be sentenced by Judge Chatigny on August 8, 2016.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, U.S. Marshals Service, Weston Police Department and Monroe Police Department. The Task Force includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon and Wilton Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Robert M. Spector.
Two Cocaine Traffickers Handed Down Lengthy Prison TermsRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad, Jr. handed down lengthy prison terms to two cocaine traffickers for their involvement in a long-standing drug conspiracy, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Ricardo Rebollar, 27, of Mexico, was sentenced to 168 months in prison and Jose Munoz, 28, of Asheboro, N.C., was sentenced to 70 months of prison. Each defendant was also ordered to serve five years under court supervision following their prison terms.
U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI); Nick Annan, Special Agent in Charge of ICE’s Homeland Security Investigations (HSI) in Atlanta and the Carolinas; Chief Robert C. Helton of the Gastonia Police Department (GPD); and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department (CMPD).
According to filed documents and statements made in court, the conspiracy operated in Mecklenburg and Gaston Counties, and elsewhere, from 2011 to December 2014, and it involved more than 150 kilograms of cocaine with a street value of more than $7 million. Over the course of the investigation, law enforcement seized 19 firearms, including assault style weapons. Court records indicate that the co-conspirators used “cover cars” to provide armed support to couriers as they distributed multiple-kilograms of cocaine per delivery. This investigation has resulted in the conviction of more than 45 defendants and the seizure of more than 38 kilograms of cocaine and $2 million in drug proceeds.
Three others defendants were previously sentenced in connection with this investigation. They are:
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Jose Otoniel Rebollar, 33, of Asheboro, N.C., was sentenced on 12/8/2015 to 148 months
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Pablo Munoz, 32, of Asheboro, N.C., was sentenced on 1/29/2016 to 120 monthsfollowed by five years of supervised release.
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Raul Rebollar, 30, of Randleman, N.C., was sentenced on 11/20/2015 to 63 months in prison, followed by 3 years supervised release.
OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The investigation is led by the FBI, HSI, and GPD, with assistance from the North Carolina State Bureau of Investigation, CMPD, Randolph County Sheriff’s Office, Asheboro Police Department, and North Carolina State Highway Patrol. The ongoing investigation and prosecution for the government is being handled by Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.
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Two Alleged Members of LCN Sentenced for ExtortionRead the Press Release
BOSTON – Two alleged members of the New England Family of La Cosa Nostra were sentenced in U.S. District Court in Boston today in connection with extortion.
Anthony Spagnolo, 74, of Revere, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 20 months in prison and ordered to pay a fine of $5,000. On March 24, 2016, Pryce Quintina, 76, of Revere, was sentenced to15 months in prison. In December 2015, both men pleaded guilty to conspiring to interfere with interstate commerce by extortion.
In November 2012, Moose Lodge, a social club in Revere, wanted to replace its existing video poker machines, supplied by Constitution Vending Company, with new video poker machines. Constitution paid Spagnolo and Quintina to protect their video poker machines in social clubs, including the Moose Lodge. Moose Lodge intended to replace Constitution’s aging machines with new ones – a move that would decrease Constitution’s profits and potentially cause Spagnolo and Quintina to receive less protection money. In response, Spagnolo and Quintina met with the manager of Moose Lodge and told him that Constitution’s machines “were not going anywhere.” As a result of this threat, the Moose Lodge did not replace those machines.
The case is part of a multi-year investigation into La Cosa Nostra (LCN) operations in Eastern Massachusetts. As a result of the investigation, five individuals have been convicted. Louis DiNunzio, 29, of Medford, who the government alleges is also a member of the LCN, Joseph Spagnuolo-Kazonis, 30, of Boston, and John Woodman, 43, of Braintree, were convicted of conspiracy to possess with intent to distribute marijuana. In addition, John Evans, 68, of Middleborough, and Joseph Petrucelli, 24, of Winthrop, were convicted of conducting an illegal gambling business.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. Assistance was also provided by the Internal Revenue Service’s Criminal Investigations, the Massachusetts Department of Correction, and the Boston, Braintree, Everett, Medford and Quincy Police Departments. The case was prosecuted by Assistant U.S. Attorney Timothy E. Moran of Ortiz's Organized Crime and Gang Unit.
Three East Flatbush Gang Members Sentenced for Their Roles in Police Impersonation RobberiesRead the Press Release
Today in Brooklyn federal court, Ringo Delcid, a member of the violent Predator Set street gang operating primarily in the East Flatbush neighborhood of Brooklyn, was sentenced to 130 months of imprisonment for conspiring to commit two Hobbs Act robberies and for the use of a firearm in connection with one of those robberies. Last month, two other members of the gang were also sentenced for their roles in these crimes: Steele was sentenced to 130 months’ imprisonment for his participation in both robberies, and Hall was sentenced to 96 months’ imprisonment for his participation in one of those robberies. All three defendants were convicted following their previously-entered guilty pleas.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office; and William J. Bratton, Commissioner, New York City Police Department (NYPD).
The convictions resulted from a series of police impersonation robberies committed in 2013. On January 16, 2013, Steele and Delcid committed a home invasion robbery of a narcotics trafficker in Brooklyn. Posing as undercover police officers, the defendants gained access to the residence and proceeded to tie up the trafficker’s girlfriend and twelve-year-old son and ransack the apartment. On July 10, 2013, Steele, Hall, Delcid, and others attempted to rob another narcotics trafficker by carrying out a traffic stop while posing as undercover police officers, complete with a rental car modified to look like a police car. The robbery was thwarted when real NYPD officers arrived at the scene and the defendants fled.
At a hearing on April 14, 2016, U.S. District Judge I. Leo Glasser found that Steele and Hall also conspired to commit a September 27, 2014, armed robbery in which the victim was shot in the leg after he withdrew money from a check-cashing establishment in East Flatbush. The evidence at the hearing established that Steele and Delcid had accumulated an arsenal of weapons in a storage unit in Brooklyn, including three firearms, hundreds of rounds of ammunition, and three homemade silencers, all of which was seized by law enforcement.
“The defendants’ crimes were carefully planned, brazenly executed, and demonstrated a complete disregard for the safety for their victims and the community,” stated United States Attorney Capers. “By impersonating police officers, the defendants took advantage of their victims’ trust in law enforcement; their actions also undermined the operation of legitimate law enforcement officers. The sentences imposed appropriately reflect the seriousness of their crimes and demonstrate our commitment to keeping our neighborhoods safe.” Mr. Capers expressed his grateful appreciation to the FBI’s Violent Crimes squad and the NYPD’s Internal Affairs Division for their cooperation and assistance in the investigation.
FBI Assistant Director-in-Charge Rodriguez stated, “Delcid not only intruded on a residence but he also intruded on the trust the public has with police when he and his coconspirators posed as police officers to commit violent crimes. Serious offenses like this warrant serious sentences and today’s sentencing of Delcid is no exception.”
“These gang members committed gunpoint robberies, violating the public’s trust by impersonating police officers and, in one case, preying upon a woman and child,” said Police Commissioner Bratton. “I would like to thank the members of the NYPD, the FBI, and the U.S. Attorney’s office whose work has led to lengthy prison sentences for the defendants.”
The government’s case is being prosecuted by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Alixandra Smith and David Pitluck are in charge of the prosecution.
The Defendants:
BENJAMIN HALL
Age: 21
Brooklyn, New YorkRINGO DELCID
AGE: 27
BROOKLYN, NEW YORKKASAGAMA STEELE
Age: 30
Brooklyn, New YorkE.D.N.Y. Docket No. 14-CR-576 (ILG)
The United States Announces Civil Allegations Against ARH PharmaciesRead the Press Release
Allegations include claims of filling fraudulent prescriptions for stimulants and failing to maintain proper records of controlled substances
LEXINGTON, Ky. – Appalachian Regional Healthcare, Inc. (“ARH”) has been accused of unlawfully filling fraudulent prescriptions for stimulants, written by a physician working in Harlan ARH’s Emergency Room, for ARH nurses and staff, and their family members, without a proper doctor-patient relationship, and failing to make and maintain complete and accurate records of its controlled substances.
In a civil lawsuit filed today, the United States has alleged that Harlan ARH Hospital Pharmacy improperly filled prescriptions for stimulants that were written by a Harlan ARH Emergency Room physician. The United States contends that many of these prescriptions were written for double the standard recommended dose of prescription pills and that, as a result of these improperly filled prescriptions, thousands of stimulant pills were illegally dispensed to ARH employees and their family members. The United States further contends that ARH failed to make and maintain complete and accurate records of its controlled substances at two other pharmacies – Hazard ARH Regional Medical Center Clinic Pharmacy and Middlesboro ARH Pharmacy – which prevents the Government from determining whether other controlled substances had been diverted for illegal use.
The United States is seeking civil penalties for ARH’s alleged violations of the Controlled Substances Act.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Timothy J. Plancon, Special Agent in Charge of the Detroit Division of the Drug Enforcement Administration, jointly announced the filing of the complaint.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
Texas Man Sentenced to 20 Years for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Mexican national in Sugarland, Texas, was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine in the Joplin area.
Israel Belmontes-Cisneros, 34, a citizen of Mexico residing in Sugarland, was sentenced by U.S. District Judge M. Douglas Harpool to 20 years in federal prison without parole.
According to court documents, Belmontes-Cisneros was part of a drug-trafficking organization identified as a major source of supply in the Joplin, Mo., area as a result of a year-long, multi-agency investigation into an international organization based in Matamoras, Mexico, with members across the United States, including Texas, Oklahoma and Missouri.
On July 8, 2015, Belmontes-Cisneros pleaded guilty to his role in a conspiracy to distribute methamphetamine in the Joplin area. Belmontes-Cisneros also pleaded guilty to one count of possessing methamphetamine with the intent to distribute, which originated in the Southern District of Texas but was transferred to the Western District of Missouri.
Belmontes-Cisneros’s girlfriend, Miriam DeLeon, 35, of Brownsville, Texas, also was sentenced to 20 years in federal prison without parole after pleading guilty to her role in the conspiracy. Miriam DeLeon was identified as the leader of the drug-trafficking organization.
According to court documents, they transported one to two kilograms of methamphetamine per month to Joplin. Miriam DeLeon and Belmontes-Cisneros drove from Texas to Joplin to transport the methamphetamine, which was concealed in laundry detergent boxes. A kilogram of methamphetamine cost approximately $25,000. Drug-trafficking proceeds were transported back to Texas in the same concealment method.
According to court documents, a confidential source traveled from Joplin to Sugarland to pick up a kilogram of methamphetamine from Belmontes-Cisneros and Miriam DeLeon and transport it back to Joplin. The confidential source was given an eightball of methamphetamine by Miriam DeLeon’s brother, co-defendant Jose Luis Deleon, Jr., 36, of Joplin, as payment for the transportation. The methamphetamine was concealed in a spare tire in the vehicle, which was off-loaded at Jose Deleon’s residence.
Jose DeLeon has pleaded guilty to his role in the conspiracy and to being a felon in possession of a firearm and awaits sentencing. A confidential source told law enforcement investigators that Jose DeLeon sold multiple pounds of methamphetamine each week and had received at least two shipments of firearms in exchange for methamphetamine, each approximately 15 firearms.
According to court documents related to the original charge against Belmontes-Cisneros filed in Texas, a confidential source represented himself as a drug trafficker from the northeastern United States and met with Belmontes-Cisneros and Miriam DeLeon at a restaurant in Houston, Texas, in August 2012. During that meeting, Belmontes-Cisneros told the confidential source they could supply 20 to 30 kilograms of cocaine for $27,000 per kilogram. Belmontes-Cisneros also told the confidential source they could supply methamphetamine. The confidential source later met with Belmontes-Cisneros on two occasions and, at each meeting, purchased approximately a pound of methamphetamine for $9,000.
Seven additional Joplin residents have also pleaded guilty. Jack Holguin, 46, Ashley Lynn Mobley, 32, and Eric Allen Meyer, 32, were each sentenced to 15 years in federal prison without parole. Jeremy McClean, 33, was sentenced to 10 years in federal prison without parole. Brian Stark, 41, was sentenced to seven years in federal prison without parole. Juan Leonardo Simmons, 32, was sentenced to six years and three months in federal prison without parole. Billy Duane Henson, 61, was sentenced to five years in federal prison without parole. Brian Ashton, 31, awaits sentencing.
Miriam DeLeon was arrested on July 31, 2014, after visiting the Jasper County courthouse for a hearing for her brother and co-defendant, Jose DeLeon, who was being held on state charges at that time. In the courthouse parking lot, she handed Mobley a bag of dog food that was later found to contain 470 grams of methamphetamine. According to court documents, Miriam DeLeon was bringing the methamphetamine to her brother, who planned to distribute inside the Jasper County jail.
Miriam DeLeon had also been stopped in August 2008 by the Texas Department of Public Safety for a traffic violation in Wharton, Texas. The traffic stop resulted in the seizure of $122,300 that was discovered hidden in the vehicle.
This case is being prosecuted by Assistant U.S. Attorneys Ami Harshad Miller and Cindy Hyde. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the FBI, the Jasper County Drug Task Force, the Joplin, Mo., Police Department, the Missouri State Highway Patrol, the Kansas Bureau of Investigations, IRS-Criminal Investigations, the Bureau of Indian Affairs and the Newton County, Mo., Prosecuting Attorney.
St. Louis Man Sentenced in Craigslist Counterfeit ConspiracyRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today, that Eric Rogers, 23, of St. Louis, Missouri, was sentenced on Friday, April 29, 2016, in the U.S. District Court in East Saint Louis, Illinois, on the charge of Conspiracy to Manufacture, Possess and Pass Counterfeit United States Currency. The district court sentenced Johnson to 30 months in federal prison to be followed by 3 years of supervised release.
Rogers pled guilty to the charge on December 9, 2015. During his plea he admitted that he along with several others had engaged in an agreement to use counterfeit United States Currency to buy vehicles. Once in possession of the vehicles they would then resell them for genuine United States currency.
During August of 2013, the group contacted a person in Sandoval Illinois, who had listed his vehicle for sale on Craigslist. Johnson, along with the other conspirators then met with the seller in Sandoval, Illinois and purchased the vehicle for $2,400 in counterfeit $100 Federal Reserve Notes. Johnson and others involved in the conspiracy were arrested a short time after the fraudulent purchase by law enforcement from Carlyle, Clinton County and Sandoval.
The investigation in this case was conducted by the Carlyle and Sandoval Police Departments, the Clinton County Sheriff’s Office and the United States Secret Service. The case is being prosecuted by Assistant United States Attorney Ranley R. Killian.
South Florida Resident Charged for Attempt to Use Explosive DeviceRead the Press Release
James Gonzalo Medina was charged Saturday by criminal complaint with attempting to use a weapon of mass destruction - an explosive device – at a synagogue in Aventura, Florida.
Wifredo A. Ferrer, Unites States Attorney for the Southern District of Florida, John P. Carlin, Assistant Attorney General for National Security, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and members of the South Florida Joint Terrorism Task Force (JTTF), made the announcement.
James Gonzalo Medina, 40, of Hollywood, Florida, is charged by criminal complaint with knowingly attempting to use a weapon of mass destruction against a person or property within the United States, in violation of Title 18, United States Code, Section 2332a(a)(2). If convicted, Medina faces a maximum sentence of life in prison.
The arrest was the culmination of an undercover operation during which Medina was closely monitored by the South Florida Joint Terrorism Task Force (JTTF). The explosive device that he allegedly sought and attempted to use had been rendered inoperable by law enforcement and posed no threat to the public.
According to allegations contained in the complaint, in March 2016, Medina came to the attention of the FBI due to his conversations about attacking a synagogue in South Florida. The FBI was able to gauge Medina’s interest in the plot and collect evidence through the use of a confidential human source (CHS). Medina expressed anti-Semitic views and identified to the CHS the target of his attack, a Jewish synagogue in Aventura.
The complaint further alleges that Medina wanted to use an explosive device to commit the attack and engaged the CHS and an undercover FBI employee about the details of his planned criminal conduct. In preparation for the proposed attack, Medina studied the synagogue property to assess its vulnerabilities. On April 29, 2016, Medina took possession of an inert explosive device and was arrested while approaching the synagogue. Medina was under FBI surveillance and, once the FBI became involved, it worked to effectively mitigate any danger posed to the public.
The case was investigated by the FBI’s Miami Division and the South Florida JTTF. The case is being prosecuted by Assistant U.S. Attorneys Karen E. Gilbert and Marc S. Anton of the Southern District of Florida, and Trial Attorney Taryn Meeks of the National Security Division’s Counterterrorism Section.
A complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. 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.
Sex Traffickers Sentenced for Pimping Three Minor Girls During 2013 Final Four NCAA PlayoffsRead the Press Release
ATLANTA - Isaiah Jernigan, Darren Williamson, Jr., a/k/a Chef Boy RD, Marie St. Vil, a/k/a Jasmine, and Brianne Marcelin, a/k/a Bri, have been sentenced for sex trafficking three minor girls in Atlanta during the 2013 Final Four NCAA Playoffs.
“As fans descended on Atlanta for the Final Four in 2013, these defendants operated in the shadows, selling these young girls for sex to anyone who would pay,” said U. S. Attorney John Horn. “The three teenagers who were exploited in this case are tragic examples of how quickly young women can be entrapped into commercial sex trafficking.”
“The sentencing of these four individuals who were previously convicted in federal court of human trafficking is a tremendous victory for the many investigators, counselors and non-government organizations working so hard to protect our nation’s children from those who would prey on them. While our streets are now safer with the removal of these callous and reprehensible defendants, the fight to eradicate human trafficking continues and the FBI asks that anyone with information regarding such activity to immediately contact their nearest FBI field office or law enforcement agency,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges and other information presented in court: From approximately mid-March 2013 to April 20, 2013, the four defendants recruited and enticed three juveniles for committing commercial sex acts. The juveniles ranged in age from 15 to 17 years old. The group’s criminal scheme also involved adult women engaged in prostitution.
The group recruited the girls and then provided them a place to live at an apartment in Sandy Springs, Georgia. At least one of the juveniles was required to have sex with Williamson as an “audition” for working for the group as a prostitute. Members of the group would take photos of the girls in lingerie and then post the photos in advertisements on the website “Backpage.com,” seeking men for commercial sex acts. Various members of the group drove the girls to their sex-dates at different hotels around town, and on occasion, male customers would also visit the Sandy Springs apartment for commercial sex. At one point Jernigan knocked one of the adult women to the ground in front of some of the other girls, dragged her into another room, and shaved off some of her hair.
The defendants’ scheme was uncovered as part of an FBI undercover operation aimed at locating and identifying minor sex traffickers operating during the NCAA Final Four Playoffs in Atlanta, Georgia in April 2103.
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Isaiah Jernigan, 27, of Orlando, Florida, has been sentenced to 11 years, seven months in prison to be followed by five years of supervised release.
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Darren Williamson, Jr., a/k/a Chef Boy RD, 28, of Atlanta, Georgia, has been sentenced to ten years, three months in prison to be followed by five years of supervised release.
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Marie St. Vil, a/k/a Jasmine, 27, of Orlando, Florida, was sentenced April 14, 2016, to six years in prison to be followed by five years of supervised release.
- Brianne Marceline, a/k/a Bri, 26, of Atlanta, Georgia, was sentenced April 15, 2016, to five years of prison to be followed by five years of supervised release.
All defendants have received a $100 special assessment and are required to register as sex offenders as a condition of their supervised release.
This case was investigated by the FBI led Metro Atlanta Child Exploitation (MATCH) Task Force.
Assistant United States Attorney Skye Davis prosecuted the case.
Men who think they are buying sex from a consenting adult may actually be contributing to sex trafficking of minors unwittingly.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga
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Sex Offender Sentenced to 15 Years for Trading Child PornographyRead the Press Release
BOSTON – A previously convicted sex offender was sentenced in U.S. District Court in Boston today in connection with receiving thousands of child exploitation videos.
Derrick Jones, 45, of Arlington, was sentenced today by U.S. District Court William G. Young to 15 years in prison, 10 years of supervised release and will be required to register as a sex offender upon release from prison. In January 2016, Jones pleaded guilty to receipt of child pornography and possession of child pornography.
Jones used file sharing computer programs to trade and receive images of child pornography and also downloaded and viewed images and videos of children ranging in age from infants to minors under the age of 18, being sexually exploited. Jones maintained a collection of 34,000 images and approximately 13,000 videos of child pornography. In 2005, Jones was convicted of two counts of possession of child pornography.
United States Attorney Carmen M. Ortiz; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Arlington Police Chief Will Johnson, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz's Major Crimes Unit.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’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, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Santa Fe Man Sentenced for Attempting to Rob Wells Fargo Bank Branch in April 2015Read the Press Release
ALBUQUERQUE – Anthony Quintana, 31, of Santa Fe, N.M., was sentenced today in federal court in Albuquerque, N.M., to 43 months in prison for attempting to rob the Wells Fargo Bank branch located at 545 West Cordova Rd. in Santa Fe, in April 2015. Quintana will be on supervised release for three years after completing his prison sentence.
Quintana was arrested on May 2, 2015, based on a criminal complaint charging him with attempted bank robbery of the Wells Fargo Bank branch on April 7, 2015. According to the criminal complaint, Quintana attempted to rob the bank by approaching a bank teller, requesting a withdrawal, and then demanding that the teller give him all of the $100 bills in her drawer. In making the demand for the money, Quintana claimed he had a gun. While the teller was searching for keys to open her money drawer, Quintana left the bank without obtaining any money.
Quintana was subsequently indicted on an attempted bank robbery charge on May 28, 2015. On Nov. 19, 2015, Quintana pled guilty to the indictment and admitted that on April 7, 2015, he attempted to rob the Wells Fargo Bank branch in Santa Fe.
This case was investigated by the Albuquerque office of the FBI and the Santa Fe Police Department. Assistant U.S. Attorney Presiliano Torrez prosecuted the case.
Sacramento Man Sentenced to 15 Years in Prison for Producing Child Pornography Used in Online Ads for Prostitution ServicesRead the Press Release
LOS ANGELES – A Sacramento man was sentenced today to 15 years in federal prison today for producing child pornography that was used to advertise the victim as a prostitute.
Antonio Dickerson, 26, was found guilty in February by a federal jury of one count of sexual exploitation of a minor for production of child pornography.
Previously in this case, Dickerson’s co-defendant – D’Antoine Thomas, 26, also of Sacramento – pleaded guilty to sex trafficking of a minor. Thomas was sentenced by Judge Wilson in March to seven years in federal prison.
The victim in the case was 16 when she met Thomas in Sacramento in 2010. She soon started working for Thomas as a prostitute in Northern California. In April 2011, Dickerson transported Thomas, the victim and another prostitute to Orange County. During this trip, Dickerson directed the 16-year-old victim and another prostitute to simulate sex acts, which he photographed and posted on a website to advertise prostitution services involving the girls.
Dickerson also directed the victim and another 16-year old girl to engage in commercial sex acts, according to the sentencing papers filed by prosecutors, which noted that Dickerson was well aware of the victim’s age, but he “didn’t care” how old she was.
“No child should be subjected to this type of exploitation,” said United States Attorney Eileen M. Decker. “This defendant’s criminal conduct demeaned his child victim, caused the victim harm each time one of the images appeared on the Internet, and was used to further promote illegal sex trafficking.”
This case is the result of an investigation by the Federal Bureau of Investigation and the Sacramento Sheriff’s Department.
Riverdale Felon Exiled to 40 Years in Prison for Gun and Drug OffensesRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Quintin A. Bell, age 51, of Riverdale, Maryland, today to 40 years in prison followed by five years of supervised release for possession with intent to distribute heroin and crack cocaine; possession of a firearm in furtherance of a drug trafficking crime; and for being a felon in possession of a firearm. A jury convicted Bell of those charges on November 18, 2015.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Frank Riehl of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Henry P. Stawinski of the Prince George’s County Police Department.
According to evidence presented at his five day trial, on April 10, 2014, law enforcement executed a search warrant at Bell’s residence. They located Bell in the basement of the home, along with over 100 grams of heroin and drug paraphernalia, including cutting agents, scales, grinders, empty pill capsules, a pill capsule filler, and small ziplock baggies. Also found in the basement was a Ruger Mini magazine loaded with 13 rounds of 7.62x39mm ammunition and a box containing nine additional rounds of ammunition.
Witnesses testified that Bell was brought in to the living room of the home where he told officers that there was a gun under a couch in that room. Law enforcement officers looked under the couch and located a black gun case containing a Ruger Mini-14 .223 caliber semi-automatic rifle, which was compatible with the magazine located in the basement. Bell told the officers that a friend had given him the gun after someone tried to rob the residence. Officers also seized: over $12,000 in cash; jewelry; a magazine for a .40 caliber handgun; 4.5 grams of heroin; and six rounds of 9mm ammunition.
According to testimony at trial, five months later, officers executed another search warrant at the home and found more heroin in the basement, more drug paraphernalia, and crack cocaine. Five days before the second search, Bell was arrested in Washington, D.C., after he was found behind the wheel of his car with a loaded .40 caliber semi-automatic handgun. The gun was tucked next to Bell’s seat, between Bell and the center console. In the center console law enforcement recovered three baggies each of heroin and crack cocaine, as well as a small baggie of marijuana, all packaged for distribution. From Bell’s front left pants pocket, officers seized $1,054. Bell made a videotaped statement to the Metropolitan Police Department officers after his arrest, which was played at trial, in which he admitted to having been out “hustling,” trying to buy cocaine and two “Rugers,” so that he would have a firearm for his exclusive use.
Bell had several previous felony convictions, including violent crimes committed in both Maryland and Washington, D.C., and was prohibited from possessing firearms or ammunition.
United States Attorney Rod J. Rosenstein commended the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Michael T. Packard and Daniel C. Gardner, who prosecuted the case.
Project Safe Childhood - Salem Man Pleads Guilty to Producing Child PornographyRead the Press Release
CONCORD, NEW HAMPSHIRE: Brian Powell, 33, of Salem, New Hampshire, pled guilty on Monday in United States District Court for the District of New Hampshire to producing child pornography, announced United States Attorney Emily Gray Rice.
In 2015, an Electronic Service Provider (ESP) alerted the National Center for Missing and Exploited Children (NCMEC) that an individual had uploaded a child pornography file to the ESP’s website. That file was ultimately traced back to the defendant’s residence in Salem, New Hampshire. The Salem Police Department obtained a search warrant for the residence and seized the defendant’s personal computer. A subsequent analysis of that computer by a detective with the Rochester, New Hampshire Police Department – also a member of the New Hampshire Internet Crimes Against Children Task Force – revealed a collection of child pornography. That collection included several videos which the defendant had manufactured himself by initiating contact with minor females through an internet chat service, and persuading them to engage in sexually explicit conduct – which the defendant then captured on video using computer recording software.
Powell is scheduled to be sentenced in August 2016. He faces a mandatory minimum of 15 years in prison, at least 5 years of supervised release, and a fine of up to $250,000.
The investigation in this case was led by the Salem, New Hampshire Police Department with the assistance of the New Hampshire Internet Crimes Against Children Task Force, the Police Departments of Rochester and Derry, New Hampshire, and Homeland Security Investigations Manchester (HSI Manchester).
The case is being prosecuted by Assistant United States Attorney Nick Abramson.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led, in each district, by the United States Attorney’s Office, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, and to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc
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Philadelphia Man Admits That He Exchanged More Than $1.2 Million in ‘Snap’/Food Stamp Benefits for CashRead the Press Release
CAMDEN, N.J. – A Philadelphia man today admitted that he stole more than $1.2 million dollars from the U.S. Government through a food stamp scheme, U.S. Attorney Paul J. Fishman announced.
Kaher Abdullah, 57, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with one count of theft of government funds.
According to documents filed in this case and statements made in court:
In June 2011, Abdullah opened Express Food Mart on South Broadway in Camden, New Jersey. From November 2011 until about October 2014, Express Food Mart was a small grocery store that was authorized to accept Supplemental Nutrition and Assistance Program (SNAP) benefits (formerly known as food stamps). The program is administered by the U.S. Department of Agriculture. Retail food stores that have been approved for participation in SNAP may sell food in exchange for food stamp benefits. They may not, however, exchange food stamp benefits for cash.
Every food stamp recipient receives an Electronic Benefits Transfer (EBT) card, similar to a debit card, with which to make purchases. Every retailer authorized to accept food stamp benefits has an EBT terminal. Food purchases are made by swiping the card at the terminal. After the customer enters a Personal Identification Number (PIN), the EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the proposed transaction and informs the retailer whether the transaction should be authorized or denied. If the transaction is authorized, the amount of the purchase is then deducted electronically from the food stamp benefits reserved for the customer, and the amount is credited to the retailer’s designated bank account.
Abdullah admitted he controlled a business bank account at CitiBank to receive the reimbursements for SNAP benefits. Bank records listed Abdullah as the president of the corporation that owned Express Food Mart. He admitted that from November 2011 until October 2014, the SNAP redemptions were more than $1.2 million. The volume of SNAP benefits reimbursement received at Express Food Mart substantially exceeded estimates for businesses of similar size, indicating large-scale food stamp fraud.
Law enforcement agents verified the fraudulent exchange of SNAP benefits for cash through the use of undercover law enforcement officers. During a series of transactions, undercover law enforcement agents exchanged SNAP benefits from Abdullah and other employees at Express Food Mart for cash. Abdullah admitted that, in general, he and other employees redeemed SNAP benefits for approximately 50 cents on the dollar.
A review of the bank records showed that Express Food Mart received through its Citibank Business account $1,264,006 for illegally redeemed SNAP benefits. Abdullah admitted that shortly after receiving the money in the Express Food Mart account, he transferred the money to another account which he used to pay personal expenses.
The count of theft of government funds carries a maximum penalty of 10 years in prison and a fine of $250,000, or two times the amount of the loss to the United States, whichever is greater. Under the terms of the plea agreement, Abduallah has agreed to the entry of a forfeiture money judgment for $1,264,006. Sentencing is scheduled for Sept. 13, 2016.
U.S. Attorney Fishman credited special agents of the U.S. Department of Agriculture, Office of Inspector General, under the direction of Special Agent in Charge William G. Squires in New York; and the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney's Office Criminal Division in Camden in the criminal case.
Defense counsel: Justin Loughry Esq., Camden
Overland Park Woman Pleads Guilty to Sexual Exploitation of a MinorRead the Press Release
WICHITA, KAN. - An Overland Park woman pleaded guilty to sexually exploiting a 13-year-old victim, Acting U.S. Attorney Tom Beall said.
Tricia Rodarmel, 39, Overland Park, Kan., pleaded guilty to one count of transporting a minor across state lines for the purpose of engaging in sexual activity. In her plea, Rodarmel admitted that in October 2013 she began a relationship with co-defendant Robert Dickson through social media. Dickson told her of his interest in having sex with minors. Rodarmel helped by putting Dickson in contact with a 13-year-old minor.
On March 16, 2014, Rodarmel took the 13-year-old from Missouri to a hotel in Kansas where Dickson was to meet them. Rodarmel knew that Dickson intended to engage in sex with the minor.
Sentencing is set for July 25. Both parties have agreed to recommend Rodarmel be sentenced to 17 years in federal prison, followed by 10 years of supervised release.
Co-defendant Dickson is set for sentencing July 11. Both parties in his case have agreed to recommend Dickson be sentenced to 25 years, followed by lifetime supervised release.
Beall commended the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.
Nuestra Familia Leader and Associates Sentenced on Racketeering ChargesRead the Press Release
The last of three defendants charged with racketeering offenses was sentenced today by the Honorable Lawrence J. O’Neill. Gary Anthony Romero, 50, of Stockton, California, was sentenced on April 11, to 20 years imprisonment for racketeering conspiracy. Today, Judge O’Neill sentenced Joe Anthony Felix, 36, of Modesto, California, to 151 months imprisonment for racketeering conspiracy, and Jesus Gomez Felix, 32, of Modesto, to 30 months imprisonment for Assault With a Deadly Weapon in Aid of Racketeering Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney Phillip Talbert of the Eastern District of California announced.
According to court documents, Nuestra Familia is a prison gang that originally formed in the California state prison system in the 1960s. Nuestra Familia leaders control and direct the gang’s criminal activities both inside and outside of the prison system.
According to court documents, Romero has been a member of Nuestra Familia for about 20 years and has reached one of the highest levels of authority in Nuestra Familia. He ordered various crimes to be committed for the benefit of the gang in Stanislaus County, including aggravated assaults, robberies and drug dealing. Romero ordered a home invasion robbery in Turlock in which the robbers wielded firearms and made off with a vehicle and several other items. While Romero was in custody at the Stanislaus County Jail, he ordered the “removal” of several Nortenos who had violated Nuestra Familia rules. A “removal” involved assaulting the individuals with homemade weapons, as well as fists and feet. Several of the victims suffered stab wounds. Romero also directed a gang member to set up subsets of the gang throughout Stanislaus County, to collect money from the members, including from their drug trafficking activities and to put the funds on Romero’s books at Stanislaus County Jail.
Joe Felix was a Norteno, a gang under the Nuestra Familia umbrella, who was in charge of Stanislaus County and provided direction to other Nortenos to commit various crimes, including attempted murder and drug trafficking in Modesto. Joe Felix participated in an assault of two individuals who had dropped out of the gang. As a result of the attack, one of the victims suffered a fractured orbital bone and injury to his eye. Joe Felix also provided direction to other Nortenos regarding the sales of methamphetamine, and profited from the drug trafficking operation.
Jesus Felix went armed to the assault of the two gang drop-outs. He exchanged gunfire with someone from the opposing side during the incident. No one was shot.
“I would like to thank the United States Department of Justice and the hard work of the federal prosecutors who prosecuted this case,” said District Attorney Birgit Fladager for Stanislaus County. “We will remain committed to working collaboratively with our federal partners to pursue criminal gang members who commit violent crimes and pose a threat to the citizens of Stanislaus County.”
In addition to the prison term, Joe Felix is to serve 60 months of supervised release on the instant matter, and nine months imprisonment consecutive on a supervised release violation on a 2004 case. Jesus Felix is to serve three years of supervised release.
This case was investigated by the Central Valley Gang Impact Task Force under the FBI’s Safe Streets Initiative, with the assistance of the Stanislaus County District Attorney’s Office, Stanislaus County Sheriff’s Office, Modesto Police Department, Ceres Police Department, the California Highway Patrol, the California Department of Corrections and Rehabilitation, the Bureau of Prisons and the Stanislaus County Probation Department.
The case was prosecuted by Trial Attorneys Louis A. Crisostomo and Kelly Pearson of the Criminal Division’s Organized Crime and Gang Section and Assistant United States Attorneys Kimberly A. Sanchez and Laurel J. Montoya of the Eastern District of California.
Nuestra Familia Leader and Associates Sentenced on Racketeering ChargesRead the Press Release
FRESNO, Calif. — Two Nuestra Familia gang members were sentenced today for racketeering offenses, and a third defendant who held a leadership role in the gang was also recently sentenced, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney Phillip A. Talbert of the Eastern District of California announced.
Earlier today, United States District Judge Lawrence J. O’Neill sentenced Joe Anthony Felix, 36, of Modesto, to 12 years and seven months in prison for conspiring to engage in racketeering and sentenced him to an additional, consecutive term of nine months in prison for a supervised release violation on a 2004 case. Judge O’Neill also sentenced Jesus Gomez Felix, 32, of Modesto, today to two and a half years in prison for assault with a deadly weapon in aid of racketeering. Previously, on April 11, Gary Anthony Romero, 50, of Stockton, was sentenced to 20 years in prison for conspiring to engage in racketeering.
According to court documents, Nuestra Familia is a prison gang that originally formed in the California state prison system in the 1960s. Nuestra Familia leaders control and direct the gang’s criminal activities both inside and outside of the prison system.
According to court documents, Romero has been a member of Nuestra Familia for approximately 20 years and reached one of the highest levels of authority in Nuestra Familia. He ordered various crimes to be committed for the benefit of the gang in Stanislaus County, including aggravated assaults, robberies and drug dealing. Romero ordered a home invasion robbery in Turlock in which the robbers wielded firearms and made off with a vehicle and several other items. While Romero was in custody at the Stanislaus County Jail, he ordered the “removal” of several Nortenos who had violated Nuestra Familia rules. A “removal” involved assaulting the individuals with homemade weapons, as well as fists and feet. Several of the victims suffered stab wounds. Romero also directed a gang member to set up subsets of the gang throughout Stanislaus County to collect money from the members, including proceeds of their drug trafficking activities, and to put the funds in Romero’s account at Stanislaus County Jail.
Joe Felix was a Norteno, a gang under the Nuestra Familia umbrella, who provided direction to other Nortenos to commit various crimes, including attempted murder and drug trafficking in Modesto. Joe Felix participated and directed others to participate in an assault on two individuals who had dropped out of the gang. Jesus Felix participated in this assault and exchanged gunfire with someone from the opposing side during the incident. No one was shot, but as a result of the attack, one of the victims suffered a fractured orbital bone and injury to his eye. Joe Felix also directed the sales of methamphetamine by other Nortenos, and profited from the drug trafficking operation.
This case was the product of an investigation by the Central Valley Gang Impact Task Force under the FBI’s Safe Streets Initiative, with the assistance of the Stanislaus County District Attorney’s Office, the Stanislaus County Sheriff’s Office, the Modesto Police Department, the Ceres Police Department, the California Highway Patrol, the California Department of Corrections and Rehabilitation, the Bureau of Prisons, and the Stanislaus County Probation Department.
Stanislaus County District Attorney Birgit Fladager said, “I would like to thank the United States Department of Justice and the hard work of the federal prosecutors who prosecuted this case. We will remain committed to working collaboratively with our federal partners to pursue criminal gang members who commit violent crimes and pose a threat to the citizens of Stanislaus County.”
The case was prosecuted by Trial Attorneys Louis A. Crisostomo and Kelly Pearson of the Criminal Division’s Organized Crime and Gang Section and Assistant United States Attorneys Kimberly A. Sanchez and Laurel J. Montoya of the Eastern District of California.
Norwich Man Pleads Guilty to Federal Heroin Distribution ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that JONATHAN FISHER, 34, of Norwich, waived his right to indictment and pleaded guilty today in Hartford federal court to one count of possession with the intent to distribute, and distribution of, heroin.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on April 9, 2016, Norwich Police responded to a medical emergency at FISHER’s residence. The emergency involved an 18-year-old male who had died from an apparent heroin overdose. FISHER was not present at the time law enforcement had arrived. A search of the victim’s wallet revealed one used glassine baggy and 10 unopened baggies marked with a particular brand stamp. A field test of the substance in the baggies yielded a positive presence for both heroin and fentanyl.
Approximately one month prior to the overdose death, FISHER was arrested by Norwich Police after he was found in possession of numerous baggies of heroin that were marked with the same stamp.
On April 12, 2016, Norwich Police arrested FISHER at a Norwich hotel. A search of FISHER’s wallet contained two glassine baggies containing suspected heroin and marked with the same brand stamp. A search of the hotel room where FISHER had been staying revealed more than 300 bags of heroin, prescription narcotics, more than one pound of marijuana, a digital scale and hundreds of empty glassine bags marked with the same stamp.
FISHER was charged by federal complaint on April 20 and is detained. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on July 27, 2016. The offense carries a maximum term of imprisonment of 20 years.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Norwich Police Department. The Task Force includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon and Wilton Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Nikita Kuzmin, Creator of the Gozi Virus, Sentenced in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that NIKITA KUZMIN, the creator of “Gozi” malware, was sentenced in Manhattan federal court to time served (37 months). Gozi, which was used to steal money from bank accounts across the United States and Europe, infected over one million computers globally and caused tens of millions of dollars in losses. KUZMIN pled guilty, pursuant to a cooperation agreement, to various computer intrusion and fraud charges in May 2011. He was sentenced today by the Honorable Kimba M. Wood.
According to the charging and sentencing documents, and statements made in Manhattan federal court:
In approximately 2007, computer network security experts identified, for the first time, a form of malicious software, or malware, that was stealing victims’ personal bank account information on a widespread basis. The malware, which the experts named “Gozi” (and which is sometimes called the “Gozi Virus”) infected the victim’s computer, among other ways, when the victim received and opened a .pdf document that was designed to appear innocuous and relevant to the victim. Opening the .pdf caused Gozi to be downloaded onto the victim’s computer secretly, where it generally remained undetectable by anti-virus software. Once downloaded, the malware collected bank account-related data from the victim’s computer, including the username and password, to access the victim’s bank account online. The malware transmitted that data to the individuals who controlled the malware, which they used fraudulently to transfer money out of victims’ bank accounts. The network security experts subsequently identified a server that contained certain data stolen by Gozi, including 10,000 account records belonging to over 5,200 personal computer users. The records included login information for accounts at over 300 companies, including leading global banks and financial services firms.
Coordinated efforts between U.S. and foreign law enforcement ultimately led to the identification of KUZMIN, a Russian national, as the individual who controlled the malware. KUZMIN previously had significant computer science training, attending two major engineering universities in Russia and graduating with a computer science degree.
In addition to creating Gozi, KUZMIN developed an innovative means of distributing and profiting from it. Unlike many cybercriminals at the time, who profited from malware solely by using it to steal money, KUZMIN rented out Gozi to other criminals, pioneering the model of cybercriminals as service providers for other criminals. For a fee of $500 a week paid in WebMoney, a digital currency widely used by cybercriminals, KUZMIN rented the Gozi “executable,” the file that could be used to infect victims with Gozi malware, to other criminals. KUZMIN designed Gozi to work with customized “web injects” created by other criminals that could be used to enable the malware to target information from specific banks; for example, criminals who sought to target customers of particular American banks could purchase web injects that caused the malware to search for and steal information associated with those banks. Once KUZMIN’s customers succeeded in infecting victims’ computers with Gozi, the malware caused victims’ bank account information to be sent to a server that KUZMIN controlled where, as long as the criminals had paid their weekly rental fee, KUZMIN gave them access to it. KUZMIN, who used the online identity “76,” advertised this cybercriminal business, which he called “76 Service,” on underground cybercriminal forums. KUZMIN made at least a quarter of a million dollars renting and selling Gozi to other criminals.
In the course of the investigation, Gozi was found to have infected over one million computers across the United States, Germany, Great Britain, Poland, France, Finland, Italy, Turkey, and other countries. U.S. victims include individuals, companies, and others, including the National Aeronautics and Space Administration (“NASA”). Gozi caused at least tens of millions of dollars in losses to victims.
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In addition to the sentence, KUZMIN, 28, a citizen of Russia, was ordered to pay forfeiture and restitution in the amount of $6,934,979.
On January 5, 2016, Deniss Calovskis, a/k/a “Miami,” a Latvian national who wrote the computer code for certain “web injects” that enabled Gozi to target information from particular banks, was sentenced to time served (21 months) for his role in the offense. Mihai Ionut Paunescu, a/k/a “Virus,” a Romanian national who allegedly ran a “bulletproof hosting” service that enabled cybercriminals to distribute Gozi and other notorious malware, was arrested in Romania in December 2012 and currently awaits extradition to the United States.
Mr. Bharara praised the Federal Bureau of Investigation for its outstanding work in the investigation. He also specially thanked the NASA Office of Inspector General.
The case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Nicole Friedlander and Sarah Lai are in charge of the prosecution.