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Monday 2 May 2016
New York City Human Resources Administration Supervisor Pleads Guilty to Defrauding Two Public Assistance Programs of More Than $1.8 MillionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that CHERRISE WATSON-JACKSON, a/k/a “Reesie,” a supervisor with the New York City Human Resources Administration (“HRA”), pled guilty today to fraud offenses involving the theft of more than $1.8 million from two public assistance programs she helped to administer. WATSON-JACKSON, who was arrested in December 2015, entered her plea today before U.S. District Judge John G. Koeltl, and is scheduled to be sentenced by Judge Koeltl on August 5, 2016.
U.S. Attorney Bharara stated: “As she admitted today, Cherrise Watson-Jackson, a supervisor with the New York City Human Resources Administration, abused her official position to defraud public benefit programs out of nearly $2 million. Because of Watson-Jackson’s crimes, money meant for the needy went instead to the pockets of the corrupt.”
According to the Complaint, Superseding Indictment, other information in the public record, and today’s plea proceeding:
HRA is an agency of the City of New York responsible for administering various public assistance programs. Among other things, HRA provides temporary help to individuals and families with social service and economic needs to assist them in reaching self-sufficiency. Its services include, among other things, administering the federally-funded Supplemental Nutrition Assistance Program (“SNAP”) (more commonly known as “food stamps”), and providing rental assistance to low-income families and individuals.
Starting in 1993, WATSON-JACKSON worked at HRA, most recently as a supervisor in a job center in Queens, New York. In that capacity, she supervised a group of other supervisors who in turn were responsible for teams of employees who review and determine eligibility for public assistance clients. Since at least early 2012, and continuing until at least December 2013, WATSON-JACKSON abused her position by engaging in a scheme to defraud two of the public assistance programs that she was charged to help administer. The first of the two schemes involved WATSON-JACKSON fraudulently loading electronic benefit transfer (“EBT”) cards with funds from SNAP, and the cards were then used by co-conspirators throughout the New York City area. The second scheme involved WATSON-JACKSON fraudulently causing rental assistance checks to be mailed to co-conspirators who posed as “landlords” of low-income tenants. Co-conspirators then cashed and/or assisted others to cash the fraudulently obtained checks. The two schemes resulted in the loss of more than $1.8 million in public funds.
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WATSON-JACKSON, 45, of Queens, New York, pled guilty to one count of conspiracy to commit mail fraud and one count of conspiracy to commit wire fraud, each of which carries a statutory maximum of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
In connection with pleading guilty, WATSON-JACKSON also agreed to forfeit more than $1.8 million and to pay restitution of more than $1.8 million.
WATSON-JACKSON was arrested in December 2015, along with alleged co-conspirators Maurice Cromwell, a/k/a “Reese,” 40, of Staten Island, New York; Isaac Allen, 39, of Brooklyn, New York; Corey Brock, a/k/a “Cee,” 35, of Queens, New York; Derrick Williams, a/k/a “Blood,” 35, of Queens, New York; Vernecka Petersen-Fowler, 45, of Brooklyn, New York; Kevin Williams, 28, of Queens, New York; Jaron Annuziata, 36, of Brooklyn, New York; Beverly Franklin, 38, of Queens, New York; Beverly Lord, 54, of Queens, New York; Yesenia Depena, 24, of Brooklyn, New York; and Gerard Stokes, 32, of Queens, New York. To date, all defendants except Lord, Depena, and Stokes have pled guilty to their participation in one or both fraudulent schemes, and are scheduled to be sentenced by Judge Koeltl in the coming months.
U.S. Attorney Bharara thanked and praised the work of the New York City Department of Investigation, the New York State Office of Welfare Inspector General, and the Federal Bureau of Investigation.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Daniel C. Richenthal and Andrew D. Beaty are in charge of the prosecution.
The pending charges against Beverly Lord, Yesenia Depena, and Gerard Stokes are merely accusations, and these defendants are presumed innocent unless and until proven guilty.
New Orleans Jury Convicts Company Owner for Directing $3 Million Fraud and Kickback SchemeRead the Press Release
On Saturday, a jury in New Orleans convicted the owner of a health care company for her role in a $3.2 million Medicare fraud scheme operating in and around New Orleans.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Division and Special Agent in Charge CJ Porter of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG)’s Dallas Regional Office made the announcement.
Tracy Richardson Brown, 46, of New Orleans, was convicted of 18 counts after a five-day trial before U.S. District Judge Stanwood R. Duval Jr. of the Eastern District of Louisiana. Brown was convicted of one count of conspiracy to commit health care fraud, nine counts of health care fraud, one count of conspiracy to pay illegal kickbacks and seven counts of paying illegal kickbacks. Brown’s sentencing hearing is scheduled for Aug. 10, 2016.
Evidence introduced at trial showed that Brown owned and operated Psalms 23 DME LLC (Psalms) and caused Psalms to bill Medicare for durable medical equipment and orthotics that were not needed and/or were not provided. Brown paid patient recruiters for the names and Medicare numbers of Medicare recipients in and around New Orleans and then used these Medicare numbers to bill Medicare, claiming that Psalms provided them power wheelchairs, accessories and orthotics. Trial evidence showed that a vast majority of these patients did not need and often did not receive, or even want, the equipment. Evidence also revealed that Brown engaged in “upcoding,” billing Medicare as if she provided these patients with high-cost back and knee braces, when she in fact provided them much cheaper versions of these braces. Brown caused Psalms to bill Medicare for more than $3.2 million in claims, a large number of which were fraudulent. Medicare paid Psalms approximately $1.9 million on these claims.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Louisiana. This case was prosecuted by Assistant U.S. Attorney Patrice Sullivan of the Eastern District of Louisiana and Trial Attorney William Kanellis of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
New Orleans Jury Convicts Company Owner for Directing $3 Million Fraud and Kickback SchemeRead the Press Release
WASHINGTON – On Saturday, a jury in New Orleans convicted the owner of a health care company for her role in a $3.2 million Medicare fraud scheme operating in and around New Orleans.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Division and Special Agent in Charge CJ Porter of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG)’s Dallas Regional Office made the announcement.
Tracy Richardson Brown, 46, of New Orleans, was convicted of 18 counts after a five-day trial before U.S. District Judge Stanwood R. Duval Jr. of the Eastern District of Louisiana. Brown was convicted of one count of conspiracy to commit health care fraud, nine counts of health care fraud, one count of conspiracy to pay illegal kickbacks and seven counts of paying illegal kickbacks. Brown’s sentencing hearing is scheduled for Aug. 10, 2016.
Evidence introduced at trial showed that Brown owned and operated Psalms 23 DME LLC (Psalms) and caused Psalms to bill Medicare for durable medical equipment and orthotics that were not needed and/or were not provided. Brown paid patient recruiters for the names and Medicare numbers of Medicare recipients in and around New Orleans and then used these Medicare numbers to bill Medicare, claiming that Psalms provided them power wheelchairs, accessories and orthotics. Trial evidence showed that a vast majority of these patients did not need and often did not receive, or even want, the equipment. Evidence also revealed that Brown engaged in “upcoding,” billing Medicare as if she provided these patients with high-cost back and knee braces, when she in fact provided them much cheaper versions of these braces. Brown caused Psalms to bill Medicare for more than $3.2 million in claims, a large number of which were fraudulent. Medicare paid Psalms approximately $1.9 million on these claims.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Louisiana. This case was prosecuted by Assistant U.S. Attorney Patrice Sullivan of the Eastern District of Louisiana and Trial Attorney William Kanellis of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.justice.gov/criminal-fraud/health-care-fraud-unit.
National Prescription Drug Take Back Day, April 30, 2016Read the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), together with Drug Enforcement Administration (DEA) Resident Agent in Charge Michael Puralewski, announced that the National Prescription Drug Take Back Day was held on Saturday, April 30, 2016.
The first National Prescription Drug Take-Back Day event was held nationwide in September 2010. Guam and the NMI have participated every year since. The purpose of the National Drug Take-Back Initiative is to help prevent increased pill abuse and theft, to encourage the public to rid their household of unused prescription drugs that pose a safety hazard and can contribute to prescription drug abuse, and to provide a venue for persons who want to dispose of unwanted and unused prescription drugs for safe disposal by DEA.
The following sites in Guam and in the NMI were designated to receive unused prescription drugs:
- Naval Base Guam (Navy Exchange Food Court)
- Agana Shopping Center (Across Vitamin World)
- Agat Village Mayor's Office
- Andersen Air Force Base (Exchange & Commissary)
- Dededo Village Mayor’s Office
- Rota Health Center
- Saipan Commonwealth Health Center
- Tinian Health Center
Take-back programs are the best way to dispose of old drugs. Unused or expired prescription medications are a public safety issue, leading to accidental poisoning, overdose, and abuse. Pharmaceutical drugs can be just as dangerous as street drugs when taken without a prescription or a doctor’s supervision. The majority of teenagers abusing prescription drugs get them from family and friends – and the home medicine cabinet.
The non-medical use of prescription drugs ranks second only to marijuana as the most common form of drug abuse in America. Unused prescription drugs thrown in the trash can be retrieved and abused or illegally sold. Unused drugs that are flushed contaminate the water supply. Proper disposal of unused drugs saves lives and protects the environment.
For more information on prescription drug abuse, go to: www.dea.gov, www.getsmartaboutdrugs.com, or www.justthinktwice.com.
Monroe County Woman Pleads Guilty to Heroin Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Monroe County woman connected to a heroin trafficking ring that operated in Monroe County and elsewhere during 2012 through March 2015, pleaded guilty today before Senior U.S. District Court Judge James M. Munley in Scranton.
According to United States Attorney Peter Smith, Shawnette Isaac, age 39, of Marshalls Creek, pleaded guilty to conspiracy to distribute heroin and cocaine. Isaac admitted to traveling to New Jersey on several occasions to obtain a total of more than 80 grams of heroin, which is equivalent to approximately 2600 retail bags of heroin, for distribution to others in the Monroe County area.
Isaac was indicted by a federal grand jury in Scranton in March 2015. The charges were the result of an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police in Monroe County.
Judge Munley ordered a presentence investigation to be completed, and scheduled sentencing for August 2, 2016.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Milford Man Sentenced to 51 Months on Bank Robbery ChargeRead the Press Release
CONCORD, NEW HAMPSHIRE: Seamus Murphy, 34, of Milford, New Hampshire, was sentenced in the United States District Court for the District of New Hampshire for bank robbery, announced United States Attorney Emily Gray Rice. The Court imposed a term of 51 months imprisonment, three years of supervised release, and full restitution to the victim bank.
Murphy walked into a Citizens Bank in Stratham, New Hampshire, on February 24, 2015 and gave the teller a note demanding money. The teller gave Murphy a quantity of United States currency. Surveillance cameras captured images of the robbery which were broadcast on local news outlets. Numerous individuals identified Murphy from the photographs and he was apprehended in Massachusetts the next day.
“The Stratham Police and Federal Bureau of Investigation did a great job of tracking this suspect to a neighboring state, successfully apprehending him, and bringing this case to justice,” stated United States Attorney Emily Rice. “Bank robbery, even an unarmed bank robbery, is an inherently dangerous crime that causes great turmoil to its victims. We will continue to work with our state and local partners to vigorously prosecute these serious offenses.”
This case was investigated by the Stratham Police Department and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Georgiana L. Konesky.
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Member of a Baltimore Drug Organization Sentenced to 10 Years in Prison for Conspiring to Distribute over 1,000 Kilograms of Marijuana and to Launder Drug ProceedsRead the Press Release
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced David D’Amico, age 49, of Baltimore, today to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute at least 1,000 kilograms of marijuana and conspiracy to commit money laundering. Judge Titus also ordered D’Amico to pay a money judgment of $1 million.
D’Amico, and his co-conspirators Matthew Nicka and Gretchen Peterson had been fugitives since the indictment was returned in December 2010. Nicka and Peterson were arrested in Canada in early August 2013, and D’Amico was extradited from Colombia, South America. All three pleaded guilty on January 13, 2016.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Henry P. Stawinski of the Prince George’s County Police Department; Chief James W. Johnson of the Baltimore County Police Department; and Commissioner Kevin Davis of the Baltimore Police Department.
According to D’Amico’s plea agreement and other court documents, D’Amico was part of an extensive drug trafficking operation which was discovered by the DEA when they executed a search warrant at a residence in the 3500 block of Hickory Avenue in Baltimore on March 18, 2009. The residence was a center of operation for the group. Agents seized more than 80 pounds of marijuana, $20,000 in cash, 31 cell phones, documents regarding a plane purchased for $450,000, tally sheets showing over $14.5 million in marijuana sales, four money counters and false identifications.
As part of the conspiracy, D’Amico and his co-conspirators obtained large quantities of marijuana grown in Canada and northern California, which they transported by plane, tractor trailer and trains, to warehouses in Maryland. The marijuana was then divided for distribution in Maryland, Pennsylvania, Louisiana, Kansas, Florida, Ohio, North Carolina, Georgia and elsewhere. The conspirators used multiple cellular telephones to avoid detection by law enforcement, as well as aliases and false identifications to conceal their activities. D’Amico oversaw the day-to-day operations, received orders for marijuana, collected money, arranged for the purchase, operation and rental of planes used to transport marijuana and cash, arranged for the transportation and storage of marijuana, and transported bulk cash payments to marijuana suppliers. D’Amico also counted drug proceeds with other conspirators at a stash house in Baltimore.
From 2007 through June 2009, D’Amico used aliases and false identifications, and created and used shell corporations to hold and hide assets, conduct financial transactions, title vehicles, convert assets, and to conceal the source, ownership and control of the proceeds from the marijuana distribution. D’Amico and his co-conspirators structured financial transactions to avoid IRS filing requirements for transactions involving more than $10,000 in cash payments in a single transaction, and further conceal from the government large cash transactions using drug proceeds.
A total of 15 defendants, including D’Amico, Nicka and Peterson, have been convicted in this case. The other 12 defendants have already been sentenced to up to 121 months in prison.
Matthew Nicka, age 43, of Baltimore, his wife, Gretchen Peterson, age 34, of Kennett Square, Pennsylvania, and the government have agreed that if the Court accepts their plea agreements, Nicka will be sentenced to between 168 months and 228 months in prison; and Peterson will be sentenced to between 84 months and 144 months in prison. Judge Titus has scheduled sentencing for Nicka on May 9, 2016, and for Peterson on September 8, 2016.
United States Attorney Rod J. Rosenstein praised the DEA, IRS-CI, and the Montgomery County, Prince George’s County, Baltimore County and Baltimore City Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Deborah A. Johnston, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Man Charged with Wire Fraud and Id TheftRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned an eight-count indictment charging Emmanuel Guobadia, 41, formerly of Atlanta, Georgia, with wire fraud and aggravated identity theft. The wire fraud charge carries a maximum penalty of 20 years in prison, a fine of $250,000 or both, and the aggravated identity theft charge carries a maximum penalty of two years in prison which would run consecutively to the sentence imposed for the wire fraud violation.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, state that according to the indictment, the defendant committed fraud against the Internal Revenue Service by electronically filing false and fraudulent income tax returns and claiming refunds to which he was not entitled. The case came to the IRS’s attention when it was discovered that a bank account in the Western District of New York was being used to facilitate the attempted refund claims for over 600 fraudulent tax returns, claiming over $1,200,000 in fraudulent tax refunds. The IRS refunded and deposited over $178,000 into this bank account. The investigation revealed that between May 2012 and July 2012, for 37 of the over 600 false claims which resulted in refunds to the bank account in the Western District of New York, most of the money was then wired to the defendant’s bank account in Georgia.
The indictment is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, Criminal Investigations, under the direction of Shantelle Kitchen, Special Agent in Charge of the New York Field Office.The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Lewis County, WV man sentenced for synthetic drug traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – John R. Burrows, 54, of Weston, West Virginia, was sentenced today to 60 months in prison for synthetic drug trafficking, United States Attorney William J. Ihlenfeld, II, announced.
In April 2014, Burrows sold a synthetic cannabinoid known as AM-2201 in a package labeled “Crown Worthy.” When depositing proceeds from the sale of these drugs into his bank accounts, he structured those deposits so as to avoid the reporting requirements of the Internal Revenue Service.
Burrows pled guilty in November 2015 to an Information charging him with one count of “Distribution of a Schedule I Drug – Controlled Substance,” and one count of “Structuring Transactions to Evade Reporting Requirement.” He was sentenced today to 60 months in prison on each count. The sentences will run concurrently for a total of 60 months in prison.
Assistant U.S. Attorney Robert McWilliams prosecuted the case on behalf of the government. The West Virginia State Police and the Internal Revenue Service - Criminal Investigation led the inquiry.
U.S. District Judge Irene M. Keeley presided.
Leadership of Local OKC Street Gang and Affiliates Convicted of Operating Million Dollar Crack Cocaine Distribution RingRead the Press Release
Oklahoma City, Oklahoma – Last Thursday, a federal jury convicted Daryl Lee Ingram, Michael Eugene Banks, and Michael Shandelon Brown, all from Oklahoma City, of conspiring to distribute cocaine base (crack) in a million-dollar drug distribution ring, announced Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma. In addition, all three were found guilty of conspiring to launder the proceeds of that drug-distribution ring.
The trial was a culmination of a long-term investigation into the senior leadership of a local street gang in Oklahoma City. According to evidence presented at trial and court records, Ingram and Banks were both high-ranking gang members and large-scale cocaine base distributors in Oklahoma City. Evidence showed that these two were assisted by a number of other individuals in the gang or affiliates, including Brown. As part of these conspiracies, Ingram, Banks, and Brown also involved family members and friends to hide the profits from illegal drug sales. Typical of the conspiracy, co-conspirators would purchase blank $1,000 money orders and mail them to California, where they were cashed by other co-conspirators for the benefit of the conspiracy. The drugs and money recovered during the investigation, as well as the money accounted for in seized drug ledgers, revealed that this group was responsible for distributing cocaine base with a street value well in excess of one million dollars.
Ten people have been charged and convicted as a result of this investigation. All pled guilty to offenses identified below, except for Ingram, Banks and Brown who went to trial. The trial lasted approximately 11 days. The jury deliberated approximately 5 hours before finding the three men guilty.
All defendants are awaiting sentencing. Both Ingram and Banks face mandatory life sentences as a result of their conviction. The following summarizes the charges associated with each of the defendants and the potential sentence they face:
#
Name
Age & Hometown
Conviction Offenses
Date of Conviction
Potential Sentence
1
Daryl Lee Ingram (aka “Black” “Clacc” “Ninety Black” “BJ”)
37, Oklahoma City
Conspiracy to distribute cocaine base; conspiracy to commit money laundering of drug proceeds; manufacturing cocaine base; money laundering
Convicted at trial on April 28, 2016
Mandatory Life in Prison
2
Michael Eugene Banks (aka “Bird” “Birdie” and “Tiny Bird”)
36, Oklahoma City
Conspiracy to distribute cocaine base; conspiracy to commit money laundering of drug proceeds; manufacturing cocaine base; possession of cocaine base with intent to distribute; illegally possessing firearms to further a drug trafficking crime; possession of a firearm by a felon; money laundering; and witness tampering by threatening a government witness
Convicted at trial on April 28, 2016
Mandatory Life in Prison
3
Michael Shandelon Brown (aka “Kaos” and “Ozz”)
36, Oklahoma City
Conspiracy to distribute cocaine base; and conspiracy to commit money laundering of drug proceeds
Convicted at trial on April 28, 2016
Up to Life in Prison
4
Anthony Ray Anderson
40, Oklahoma City
Maintaining a drug-involved premises
Guilty Plea on April 12, 2016
Up to 20 Years in Prison
5
Linda Donell Banks
56, Oklahoma City
Money laundering of drug proceeds
Guilty plea on August 6, 2015
Up to 20 Years in Prison
6
Raven Tanike Barnes
37, Oklahoma City
Money laundering of drug proceeds
Guilty plea on August 5, 2015
Up to 10 Years in Prison
7
Aundre T Cade
35, Oklahoma City
Possession of cocaine base with intent to distribute
Guilty plea on
October 19, 2015
Up to Life in Prison
8
Brittany Jamelia Frazier
26, Midwest City
Possession of cocaine base
Guilty plea on November 13, 2015
Up to 1 Year in Prison
9
Xavier Jorge Guerrero
43, Los Angeles, CA
Money laundering of drug proceeds
Guilty plea on April 11, 2016
Up to 20 Years in Prison
10
Satin Sierre Watley
24, Oklahoma City
Money laundering of drug proceeds
Guilty plea on June 18, 2015
Up to 20 Years in Prison
These convictions were the result of a joint investigation between the Oklahoma City Police Department, the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, and the United States Postal Inspection Service. This case was prosecuted by Assistant U.S. Attorneys David McCrary, Kate Holey, and Virginia L. Hines.
Leaders of Violent Drug Trafficking Organization ConvictedRead the Press Release
Two men who led a violent drug trafficking organization distributing meth, heroin and cocaine in the Seattle area were convicted April 28th of numerous counts of drug trafficking and one count of money laundering following a seven day jury trial, announced U.S. Attorney Annette L. Hayes. The jury deliberated for seven hours before returning the guilty verdicts against SON V. TRAN, 29, and TUAN A VU, 50, both of Seattle. The two year investigation lead by the FBI’s Seattle Safe Streets Task Force (SSTF) and Bellevue Police Department’s Eastside Narcotics Task Force (ENTF), revealed that the organization distributed cocaine, crack cocaine, heroin and methamphetamine across a wide swath of the greater Seattle metro area.
According to court records and testimony at trial, beginning in February 2013 law enforcement authorities used a variety of tools including telephone wire taps and confidential sources to infiltrate and interdict this drug organization. The investigation determined that the organization distributed approximately 15-20 kilos of cocaine, 10-15 kilos of heroin and 5 kilos of methamphetamine per month. In addition, on multiple occasions members of the drug trafficking organization were arrested with firearms. During the investigation law enforcement seized drugs and cash including a September 2014 seizure of two kilos of cocaine, one pound of methamphetamine and $14,000 cash from a rental car. In March 2015, investigators seized more than $32,000 from a hidden compartment in another vehicle. At the end of the investigation, additional drugs and more than $100,000 in cash was seized from TRAN and VU’s residences.
Drug activity associated with the organization occurred over a wide geographic area with many drug sales occurring in the “Jungle” homeless encampment, as well as at homes and near businesses in Seattle, Renton, Shoreline and Kent. The drug transactions occurred in areas ranging from the parking lot of Viet Wah supermarket near South Jackson Street, the parking lot of Dick’s Drive-In on NE 45th Street, the parking lot of a gas station on Beacon Hill, and at a motel in Tukwila.
Both Son V. Tran and Tuan A. Vu were convicted of conspiracy to distribute controlled substances. Son V. Tran was also convicted of fifteen separate counts of distribution of controlled substance or possession of controlled substance with intent to distribute offenses. Tuan A Vu was similarly convicted of eleven separate distribution of controlled substance or possession of controlled substance offenses. Both men face up to life in prison when sentenced by U.S. District Judge John C. Coughenour on August 16, 2016.
These defendants have already pleaded guilty and are scheduled for sentencing in the months ahead:
Cuong T. Le, 57, of Federal Way, Washington
Niem H. Doan, aka “Linh,” 36, of Everett, Washington
Huy V. Tran, 39, of Seattle, Washington
Son T. Nguyen, aka “Nine Fingers” aka “Kim,” 42, of Seattle, Washington
Tam C. Nguyen, aka “Andy,” 39, of Tukwila, Washington
Long V. Trong aka “Black Long,” 42, of Seattle, Washington
Vinh Q. Nguyen, 29, of Seattle, Washington
Giang T. Ngo, aka “Uncle Jack,” 51, of Burien, Washington
Phuong H. Nguyen, aka “LJ,” 30, of Kent, Washington
Kenneth W. Thomas, 55, of SeaTac, Washington
Donald K. Jordan, aka “Looney,” 34, of Seattle, Washington
Donald C. Scholoff, 47, of Edmonds, Washington
Steven J. Connell, 47, of Seattle, WashingtonThese defendants have already pleaded guilty and been sentenced to prison:
Phuong A. Nguyen, aka “P,” 42, of Kent, Washington – 12 years
Brieanna K. Carlson, 27, of Seattle, Washington – three years
Kimberle S. Alojasin, aka “Nguyen,” 56, of South King County, Washington – four years
Kenneth W. Thomas, 55, of SeaTac, Washington – four years
Yen T. Vu, 55, of Seattle – three years
Tony V. Nguyen, 23, of Seattle – two years
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. This investigation was led by the FBI’s Seattle Safe Streets Task Force (SSTF) and Bellevue Police Department’s Eastside Narcotics Task Force (ENTF). The SSTF includes task force officers from the Seattle Police Department, and the ENTF is composed of Bellevue Police Department officers, and agents and officers from the Washington State Patrol, US Postal Inspection Service, and the Redmond, Kirkland, and Mercer Island police departments in partnership with the King County Prosecuting Attorney’s Office. Additional assistance was provided by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Drug Enforcement Administration (DEA) and ICE’s Homeland Security Investigations (HSI), King County Sheriff’s Office, the Washington State Department of Corrections, and the Kent and Tukwila police departments, and the Seattle Fire Department.
The case is being prosecuted by Assistant United States Attorneys Vince Lombardi and Kate Vaughan.
Justice Department Finds South Dakota Unnecessarily Relies on Nursing Facilities to Provide Services to People with DisabilitiesRead the Press Release
Following a comprehensive investigation, today, the Justice Department released its findings that South Dakota unnecessarily relies on nursing facilities to provide services to people with disabilities, in violation of the community integration mandate of the Americans with Disabilities Act (ADA) and the Supreme Court’s decision in Olmstead v. L.C.
South Dakotans with disabilities do not have a meaningful choice to receive the services they need in their own homes and communities. The ADA and the Olmstead ruling require states to make services available to people with disabilities in the most integrated setting appropriate to their needs, regardless of age or type of disability.
The department’s findings, detailed in a letter to South Dakota Governor Dennis Daugaard, follow an investigation into the state’s system of care for people who receive services and supports in nursing facilities. The department found that thousands of people who rely on South Dakota for needed services must live in nursing facilities to receive those services, isolated from their communities. With access to adequate home- and community-based services, these individuals could instead live in their homes and communities.
“Regardless of their age, people with disabilities deserve privacy, autonomy and dignity in their everyday lives,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Our findings reveal how South Dakota’s current system of long-term care violates federal law and fails to give people with disabilities the choice to live in their own homes and their own communities. South Dakota officials have expressed their desire to provide meaningful opportunities for people with disabilities to receive home- and community-based care, and we look forward to working with South Dakota to build a more effective, more efficient and more just service system for all.”
An analysis of South Dakota’s current spending and national data shows that South Dakota – which has one of the highest nursing facility utilization rates in the country – may even realize cost savings and be able to serve more people by increasing the state’s use of home- and community-based services. The state funds the placement of about 3,400 people in nursing facilities through Medicaid at any given time, and approximately 5,500 people over the course of one year.
Nursing facility residents in South Dakota range in age, and include many older adults and almost 450 people under the age of 65. In addition to older adults with age-related disabilities, many of these individuals have disabilities they were born with or acquired at a young age, such as cerebral palsy, multiple sclerosis and amputations due to diabetes or mobility impairments due to an accident.
The findings letter examines the widespread impact of the state’s nursing facility system. For example, one 51-year-old man told the Justice Department that he had entered the nursing facility to recover after a leg amputation, but had been trying to leave the nursing facility for months, without help.
The department’s findings letter includes the following key conclusions:
- Thousands of people who need long-term care have no choice but a nursing facility because South Dakota does not adequately arrange for community-based services or identify residents appropriate for transition.
- Many people who rely on state services do not know that they could choose community-based services instead of a nursing facility because the state has not informed them of or offered them these services.
- South Dakota spends more than 80 percent of its long-term services budget on nursing facilities but could rebalance these funds to prioritize home- and community-based services.
- Most residents have physical disabilities, chronic illnesses or cognitive disabilities and need some assistance with some day-to-day tasks, rehabilitative therapy or nursing –services that the state can provide in community-based settings rather than in institutions.
- People with similar needs to those living in South Dakota’s nursing facilities successfully receive services at home in other states, and even in South Dakota. The state already offers many of the services people will need to live in their own homes and can increase community capacity and address service limitations to ensure all individuals can choose these services instead of nursing facility placement.
- People with disabilities living in rural and frontier areas of the state, including those living on reservations, have particular difficulty accessing services in their homes and communities.
The full findings letter can be found at www.ada.gov. Please visit www.ada.gov/olmstead to learn more about the division’s ADA Olmstead enforcement efforts, and www.justice.gov/crt to learn more about the laws enforced by the Justice Department’s Civil Rights Division. Additional information about the U.S. Attorney’s Office of the District of South Dakota is available on its website at www.justice.gov/usao-sd.
The investigation was conducted by the Civil Rights Division with assistance by the U.S. Attorney’s Office of the District of South Dakota. The United States is represented by Trial Attorneys Alexandra Shandell, Joshua Rogers and Mathew Schutzer of the Civil Rights Division’s Special Litigation Section and Assistant U.S. Attorney Alison Ramsdell of the District of South Dakota.
South Dakota Findings Letter
Jamaican National Sentenced to Prison to Passport FraudRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARK ANTHONY GOULDBOURNE, 42, of Hartford, Conn. and Brooklyn, N.Y., was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to nine months of imprisonment for making a false statement in a passport application.
According to court documents and statements made in court, GOULDBOURNE is a native and citizen of Jamaica. In March 2011, he submitted an application for a U.S. passport, in the name of his brother, at a U.S. Post Office in Hartford. Claiming to be his brother, who is a U.S. citizen, GOULDBOURNE presented to the passport acceptance agent a New York birth certificate and a Pennsylvania identity card, and then signed the passport application under oath. Passport authorities flagged the application as possibly fraudulent and did not issue the passport.
In May 2015, law enforcement determined that GOULDBOURNE was an inmate at Hartford Correctional Center under the same identity used in the fraudulent passport application. In an interview with law enforcement on May 7, 2015, GOULDBOURNE admitted that he had submitted the fraudulent passport application in March 2011, and that he had obtained the Pennsylvania identity card in his brother’s name.
On December 15, 2015, GOULDBOURNE waived indictment and pleaded guilty to one count of making a false statement in a passport application. He will be subject to deportation proceedings upon the completion of his federal sentence.
The case was investigated by the U.S. Department of State, Diplomatic Security Service. The case is being prosecuted by Assistant United States Attorney Hal Chen.
Justice Department Finds South Dakota Unnecessarily Relies on Nursing Facilities to Provide Services to People with DisabilitiesRead the Press Release
WASHINGTON – Following a comprehensive investigation, today, the Justice Department released its findings that South Dakota unnecessarily relies on nursing facilities to provide services to people with disabilities, in violation of the community integration mandate of the Americans with Disabilities Act (ADA) and the Supreme Court’s decision in Olmstead v. L.C.
South Dakotans with disabilities do not have a meaningful choice to receive the services they need in their own homes and communities. The ADA and the Olmstead ruling require states to make services available to people with disabilities in the most integrated setting appropriate to their needs, regardless of age or type of disability.
The department’s findings, detailed in a letter to South Dakota Governor Dennis Daugaard, follow an investigation into the state’s system of care for people who receive services and supports in nursing facilities. The department found that thousands of people who rely on South Dakota for needed services must live in nursing facilities to receive those services, isolated from their communities. With access to adequate home- and community-based services, these individuals could instead live in their homes and communities.
“Regardless of their age, people with disabilities deserve privacy, autonomy and dignity in their everyday lives,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Our findings reveal how South Dakota’s current system of long-term care violates federal law and fails to give people with disabilities the choice to live in their own homes and their own communities. South Dakota officials have expressed their desire to provide meaningful opportunities for people with disabilities to receive home- and community-based care, and we look forward to working with South Dakota to build a more effective, more efficient and more just service system for all.”
An analysis of South Dakota’s current spending and national data shows that South Dakota – which has one of the highest nursing facility utilization rates in the country – may even realize cost savings and be able to serve more people by increasing the state’s use of home- and community-based services. The state funds the placement of about 3,400 people in nursing facilities through Medicaid at any given time, and approximately 5,500 people over the course of one year.
Nursing facility residents in South Dakota range in age, and include many older adults and almost 450 people under the age of 65. In addition to older adults with age-related disabilities, many of these individuals have disabilities they were born with or acquired at a young age, such as cerebral palsy, multiple sclerosis and amputations due to diabetes or mobility impairments due to an accident.
The findings letter examines the widespread impact of the state’s nursing facility system. For example, one 51-year-old man told the Justice Department that he had entered the nursing facility to recover after a leg amputation, but had been trying to leave the nursing facility for months, without help.
The department’s findings letter includes the following key conclusions:
- Thousands of people who need long-term care have no choice but a nursing facility because South Dakota does not adequately arrange for community-based services or identify residents appropriate for transition.
- Many people who rely on state services do not know that they could choose community-based services instead of a nursing facility because the state has not informed them of or offered them these services.
- South Dakota spends more than 80 percent of its long-term services budget on nursing facilities but could rebalance these funds to prioritize home- and community-based services.
- Most residents have physical disabilities, chronic illnesses or cognitive disabilities and need some assistance with some day-to-day tasks, rehabilitative therapy or nursing –services that the state can provide in community-based settings rather than in institutions.
- People with similar needs to those living in South Dakota’s nursing facilities successfully receive services at home in other states, and even in South Dakota. The state already offers many of the services people will need to live in their own homes and can increase community capacity and address service limitations to ensure all individuals can choose these services instead of nursing facility placement.
- People with disabilities living in rural and frontier areas of the state, including those living on reservations, have particular difficulty accessing services in their homes and communities.
The full findings letter can be found at www.ada.gov. Please visit www.ada.gov/olmstead to learn more about the division’s ADA Olmstead enforcement efforts, and www.justice.gov/crt to learn more about the laws enforced by the Justice Department’s Civil Rights Division. Additional information about the U.S. Attorney’s Office of the District of South Dakota is available on its website at www.justice.gov/usao-sd.
The investigation was conducted by the Civil Rights Division with assistance by the U.S. Attorney’s Office of the District of South Dakota. The United States is represented by Trial Attorneys Alexandra Shandell, Joshua Rogers and Mathew Schutzer of the Civil Rights Division’s Special Litigation Section and Assistant U.S. Attorney Alison Ramsdell of the District of South Dakota.
Hurlburt Field Intelligence Squadron Member Pleads Guilty to Committing Federal Child Pornography Crimes on BaseRead the Press Release
PENSACOLA, FLORIDA – Douglas J. Plate, 53, of Navarre, Florida, a federal employee at Hurlburt Field, pled guilty today to receipt, possession, and access with intent to view child pornography. The guilty plea was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In December 2015, the United States Air Force determined that Plate, who worked in a sensitive facility with a top secret security clearance, was searching for pornography online at his work station and residence. A forensic review of his work and laptop computers revealed a significant amount of accessed pornography, including sexualized images of minor females. Additionally, Plate admitted to using foreign language search terms to avoid detection.
For the receipt of child pornography charge, Plate faces a mandatory minimum of 5 years and a maximum of 20 years in prison. For the possession and access with intent to view child pornography charge, Plate faces a maximum of 20 years in prison. The sentencing hearing is scheduled for July 12, 2016, at 12:30 p.m. at the United States Courthouse in Pensacola.
The case is being investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations and the Air Force Office of Special Investigations. Assistant United States Attorney David L. Goldberg is prosecuting the case.
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. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. 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]Highland Resident Sentenced for Child Pornography OffensesRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that on April 29, 2016, Richard Hogg, 56, Highland, IL, was sentenced on an Indictment charging him, in Count 1, with Distribution of Child Pornography; in Counts 2 and 3, with Receipt of Child Pornography; in Count 4, with Access with Intent to View Child Pornography; and, in Count 5, with Possession of Prepubescent Child Pornography. Hogg received 210 months in federal prison on Counts 1-3 and 5 and 120 months on Count 4, all to run concurrently, to be followed by15 years of supervised release on each count, also to run concurrently, and was ordered to pay a $500 special assessment. Hogg was also ordered, pursuant to a plea agreement with the United States, to pay restitution in the amount of $2,000 to each of three victims depicted in the images and/or videos of child pornography that he distributed, received and/or possessed, and to forfeit the electronic media that contained these images and/or videos of child pornography. Hogg has been detained since he entered his guilty plea on January 25, 2016.
The charges arose after the FBI found information on the internet that Hogg had engaged in a sexually explicit chat with what he apparently believed to be a minor female, as well as other reports of Hogg soliciting minors to engage in sex acts. Based on this information, on February 3, 2015, the FBI went to Hogg’s residence. Hogg agreed to provide a voluntary statement, in which he admitted chatting online with a girl he believed to be sixteen years old who resided in New York, and that the chats were sexual in nature.
Hogg stated that he began viewing pornography in 2007, and that he gradually started viewing younger females. When asked if images of prepubescent children would be found on his computer, he replied in the affirmative. When asked what the pictures he owned showed with respect to the minor females, he replied "everything." When asked how often he chatted with young females online, he said that it likely occurred a "few times a month." Hogg estimated that he had approximately 1,000 images and four videos of child pornography on his computers, and that they would be found in the "My Pictures" folder on his computers. Hogg said that the images typically included a "dad" with their children.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case was investigated by the Federal Bureau of Investigation's Springfield Child Exploitation Task Force. The case was assigned to Assistant United States Attorney Angela Scott.
Hickory, N.C. Physician Sentenced to 18 Months in Prison for Health Care FraudRead the Press Release
CHARLOTTE, N.C. – A Hickory physician was sentenced to 18 months in prison today on health care fraud charges for submitting to Medicaid and Medicare over $467,376 in fraudulent reimbursement claims, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Wayne Vincent Wilson, 55, was also ordered to serve one year of supervised release and to pay $208,112.58 as restitution to Medicaid and $2,148.08 to Medicare.
U.S. Attorney Rose is joined in making today’s announcement by Derrick Jackson, Special Agent in Charge, Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Atlanta Region.
According to filed court documents and today’s sentencing hearing, Wilson is a licensed family practitioner and owner and operator of Wayne Wilson, MD Family Practice (the “Practice”) located in Hickory. Wilson previously admitted that from 2007 to 2014, he engaged in a scheme to defraud Medicare and Medicaid by submitting fraudulent reimbursement claims totaling more than $467,376 for services that were never provided to beneficiaries. The fraudulent claims resulted in payments of at least $210,120 to Wilson and the Practice.
According to court records, Wilson “added and padded” his Medicaid and Medicare reimbursements with these false claims because he believed that Medicaid did not pay him enough for his services. Court records show that in some instances Wilson perpetrated the fraud by adding non-existent services, such as nerve conduction studies, strep tests, and pulmonary stress tests among others, to actual patient office visits. In other instances, Wilson fabricated entire office visits and submitted fraudulent claims for dates that patients were not even seen at the office.
According to court records, beginning in 2005, Wilson contracted with an individual identified as “D.D.” to perform nerve conduction studies, and sought reimbursement for those services through the Practice. In February 2012, D.D. terminated his relationship with Wilson and the Practice, but Wilson continued to submit fraudulent reimbursement claims to Medicare and Medicaid, falsely stating that he had performed nerve conduction studies for beneficiaries, even though Wilson did not have the equipment or the expertise to provide such studies.
Wilson pleaded guilty to two counts of health care fraud in October 2015. He will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
HHS-OIG conducted the investigation. The prosecution of the case was handled by Assistant U.S. Attorney Kelli Ferry and Special Assistant U.S. Attorney Timothy Rodgers. Mr. Rodgers is a Special Deputy Assistant Attorney General with the North Carolina Department of Justice Medicaid Investigations Division. The SAUSA position is reflection of the partnership between the Medicaid Investigations Division and the United States Attorney that helps ensure the effective and vigorous prosecution of Medicaid fraud.
The investigation and charges are the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-
8477 (1-800-HHS-TIPS), or E-Mail at [email protected].
Harrison County, WV man pleads guilty to unlawful possession of firearmsRead the Press Release
CLARKSBURG, WEST VIRGINIA – Aric J. Stutler, 38, of Mount Clare, West Virginia, pled guilty in federal court in Clarksburg today to unlawful possession of a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Stutler, who has a previous felony conviction in federal court in Ohio, was discovered in unlawful possession of a .22 caliber pistol in Mary 2015 in Harrison County, West Virginia. He was previously convicted of the felony offense of “Armed Bank Robbery” in the United States District Court for the Northern District of Ohio.
Stutler pled guilty today to one count of “Felon in Possession of a Firearm.” He faces up to 10 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Harrison County, WV man pleads guilty to oxycodone traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Suhip E. Ebrahim, 26, of Bridgeport, West Virginia, pled guilty in federal court in Wheeling today to oxycodone trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Ebrahim conspired with at least one other individual to possess and sell oxycodone throughout 2015 and 2016 in Ohio County, West Virginia. Specifically, Ebrahim was arrested in Wheeling in March 2016 after he was discovered to be in possession of a large quantity of oxycodone pills.
Ebrahim pled guilty today to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Oxycodone.” He faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Robert McWilliams and Jarod Douglas prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force, the Marshall County Drug and Violent Crime Task Force, and the Greater Harrison County Drug and Violent Crime Task Force, all HIDTA-funded initiatives, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Gila River Man Sentenced to 15 Years in Federal Prison for Abusive Sexual Contact with a MinorRead the Press Release
PHOENIX - Today, Donald Wade Pablo, of Blackwater, Ariz., a member of the Gila River Indian Community, was sentenced by U.S. District Judge John J. Tuchi to 180 months in prison, followed by a term of lifetime supervised release. Pablo had previously pleaded guilty to abusive sexual contact with a minor.
Between Aug. 1, 2013 and Nov. 2, 2014, within the Gila River Indian Community, Pablo sexually abused the victim who was under the age of 12 and also a member of the Gila River Indian Community.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-0385-PHX-JJT
RELEASE NUMBER: 2016-038_Pablo
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Garden Grove Man Surrenders on Charges of Traveling to Canada to Have Sex with a Teen Girl He Persuaded to Send Naked VideosRead the Press Release
SANTA ANA, California – A Garden Grove man was taken into federal custody this morning after being charged with receiving sexual videos from a 13-year-old girl he met on the Internet and traveling to Canada to have sex with the girl.
Paul Binh Do, 29, was arrested after he surrendered himself to federal authorities this morning.
Do was charged last month with one count of traveling with the intent to engage in illicit sexual conduct and one count of receipt of child pornography. In a plea agreement also filed last month, Do agreed to plead guilty to the charges that could send him to federal prison for as long as 50 years.
“All forms of child exploitation are deeply troubling, and this case demonstrates how quickly online child exploitation can lead to physical exploitation,” said United States Attorney Eileen M. Decker. “Mr. Do coerced a girl that he knew was only 13 to perform sex acts on camera and then travelled to another country in the hopes of further exploiting her. If not for the timely intervention of law enforcement here and in Canada, a greater tragedy would almost certainly have occurred.”
According to the documents filed in United States District court, Do began an online relationship with a 13-year-old girl and soon thereafter they began exchanging naked videos of themselves engaging in sexual conduct. Two years ago today, Do traveled to Canada from Orange County to celebrate the victim’s 14th birthday and have sex with her, but he was stopped by Canadian law enforcement as he attempted to enter into the country.
When he was stopped by Canadian authorities, Do possessed digital devices that contained naked videos of the victims. Following his arrest in Canada, Do obstructed justice when he contacted the victim and asked her to tell law enforcement that she had lied to Do about her age when, in fact, she had been completely truthful about being 13.
The investigation into Do was conducted by the Orange County Child Exploitation Task Force, which includes special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). The Task Force received substantial assistance from HSI’s attaché office in Vancouver, the Calgary Police Service, Canada Border Services Agency, and the Royal Canadian Mounted Police’s Southern Alberta Internet Child Exploitation Unit.
“As this case illustrates, the burgeoning use of the Internet means youth are now vulnerable to exploitation by sexual predators not just around the corner, but around the globe,” said Joseph Macias, special agent in charge for HSI Los Angeles. “That said, child sexual predators who mistakenly believe they can escape detection by boarding an airplane to victimize minors beyond our borders should be on notice – HSI is using all the resources at its disposal to combat this reprehensible behavior and hold the perpetrators responsible for their crimes.”
Do is expected to be arraigned on the charges this afternoon in United States District Court in Santa Ana.
The charge of receiving child pornography carries a mandatory minimum sentence of five years in federal prison and statutory maximum penalty of 20 years.
The charge of traveling with the intent to engage in illicit sexual conduct carries a statutory maximum sentence of 30 years.
Fresno Teacher’s Aide Sentenced for Marijuana Cultivation Operation in Trinity CountyRead the Press Release
FRESNO, Calif. — Kevin Nouthai Yang, aka Thai Yang, 49, of Fresno, was sentenced today to three years and 10 months in prison, to be followed by three years of supervised release, for conspiring to cultivate, distribute and possess with intent to distribute marijuana grown on property that he owned in Hay Fork in the Shasta Trinity National Forest, Acting United States Attorney Phillip A. Talbert announced.
In sentencing Yang, U.S. District Judge Lawrence J. O’Neill also ordered the forfeiture of the property and a firearm.
According to court documents, Yang, who was then a high school teacher’s aide for the Central Unified School District, was found armed at the Hay Fork property during the execution of a federal search warrant. Yang was in the process of harvesting marijuana and was in possession of 324 pounds of marijuana and 200 marijuana plants. He was also in possession of restricted-use pesticides that had been transported across public land for use in the marijuana cultivation operation. Yang has since resigned from his teaching position.
U.S. Forest Service agents obtained the search warrant after seeing hundreds of large, mature marijuana plants growing on Yang’s property. Some of the marijuana grown on Yang’s property had already been transported to Fresno for distribution.
This case was the product of an investigation by the U.S. Forest Service and the Trinity County Sheriff’s Office. Assistant United States Attorney Karen A. Escobar prosecuted the case.
Former Vice President of Woods Paint Company Receives 18-Month Sentence for Evading Payment of Federal TaxesRead the Press Release
GREENEVILLE, Tenn. – On May 2, 2016, Charles J. Rutherford, 44, of Johnson City, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 18 months in federal prison for his January 2016 conviction for filing false and fraudulent federal tax returns in an attempt to evade and defeat paying income tax.
From 2006 through 2014, while serving as vice president of Woods Paint Company (“WPC”) in Bristol, Tenn., Rutherford embezzled approximately $1 million by paying his own personal expenses out of company accounts. Although the funds were stolen, he was obligated to report the embezzled money as income on his federal individual income tax returns, which he failed to do for tax years 2008 through 2013. By filing false and fraudulent returns, he evaded paying well over $200,000 in federal taxes. In addition to his prison sentence, he was also ordered to pay over $1.2 million in restitution, to both WPC and the Internal Revenue Service (IRS). Rutherford will also be prosecuted in state court for theft.
This investigation was conducted jointly by the Sullivan County Office of the District Attorney General, City of Bristol Tennessee Police Department, and IRS-Criminal Investigation Division. Assistant U.S. Attorney David Gunn represented the United States.
"The IRS enforces the nation’s tax laws, but also takes particular interest in cases where someone, for their own personal benefit, has taken what belonged to others,” stated Tracey D. Montaño, Special Agent in Charge of the IRS-Criminal Investigation Nashville Field Office. “No matter what the source of income, all income is taxable. The prosecution of individuals who intentionally conceal income and evade taxes is a vital element of the IRS’ enforcement strategy. We are pleased with the successful resolution of this investigation."
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Former FBI Special Agent Pleads Guilty to Embezzlement of Drug Proceeds and Obstruction of JusticeRead the Press Release
A former FBI special agent pleaded guilty today for stealing over $136,000 of drug proceeds seized during the execution of search warrants in 2014 and falsifying reports and tampering with a witness.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge Angel D. Gunn of the Department of Justice Office of the Inspector General Los Angeles Field Office made the announcement.
Scott M. Bowman, 45, of Moreno Valley, California, pleaded guilty to one count of conversion of property by a federal employee, one count of obstruction of justice, one count of falsification of records and one count of witness tampering before U.S. District Judge Jesus G. Bernal of the Central District of California. Sentencing is set for Aug. 15.
In connection with his plea, Bowman admitted that he misappropriated drug proceeds seized during the execution of three search warrants in June and August 2014, after they were transferred to his custody in his official capacity as a federal law enforcement officer. Bowman then spent the stolen money for his own personal use, including by spending $43,850 to purchase a 2012 Dodge Challenger coupe, $27,500 to purchase a 2013 Toyota Scion FR-S coupe and $26,612 to outfit these vehicles with new speakers, rims, tires and other equipment. Bowman also admitted that he used $15,000 of the misappropriated cash to pay for cosmetic surgery for his spouse and opened a new checking account into which he deposited $10,665 of the stolen funds.
In order to conceal his embezzlement, Bowman falsified official FBI reports, submitted a receipt with a forged signature and asked a local police detective to provide false information to law enforcement officers if asked about Bowman’s activities with respect to the drug proceeds. Specifically, Bowman sent emails to the local police detective in October 2014 containing a detailed cover story that the detective was instructed to provide and a copy of the receipt with the forged signature, so that the detective could falsely claim the forged signature as his own.
“When the FBI became aware of allegations of misconduct by defendant Bowman, FBI management took immediate action by contacting the Justice Department’s Office of Inspector General,” said Acting Assistant Director in Charge James Struyk of the FBI’s Los Angeles Field Office. “As Mr. Bowman takes responsibility for his actions by pleading guilty, the public should be reminded that FBI personnel are held to the highest standards and misconduct of any kind is taken very seriously.”
This case was investigated by the Department of Justice Office of the Inspector General and is being prosecuted by Trial Attorneys Lauren Bell and Robert J. Heberle of the Criminal Division’s Public Integrity Section.
Former FBI Special Agent Pleads Guilty to Embezzlement of Drug Proceeds and Obstruction of JusticeRead the Press Release
WASHINGTON – A former FBI special agent pleaded guilty today for stealing over $136,000 of drug proceeds seized during the execution of search warrants in 2014 and falsifying reports and tampering with a witness.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge Angel D. Gunn of the Department of Justice Office of the Inspector General Los Angeles Field Office made the announcement.
Scott M. Bowman, 45, of Moreno Valley, California, pleaded guilty to one count of conversion of property by a federal employee, one count of obstruction of justice, one count of falsification of records and one count of witness tampering before U.S. District Judge Jesus G. Bernal of the Central District of California. Sentencing is set for Aug. 15.
In connection with his plea, Bowman admitted that he misappropriated drug proceeds seized during the execution of three search warrants in June and August 2014, after they were transferred to his custody in his official capacity as a federal law enforcement officer. Bowman then spent the stolen money for his own personal use, including by spending $43,850 to purchase a 2012 Dodge Challenger coupe, $27,500 to purchase a 2013 Toyota Scion FR-S coupe and $26,612 to outfit these vehicles with new speakers, rims, tires and other equipment. Bowman also admitted that he used $15,000 of the misappropriated cash to pay for cosmetic surgery for his spouse and opened a new checking account into which he deposited $10,665 of the stolen funds.
In order to conceal his embezzlement, Bowman falsified official FBI reports, submitted a receipt with a forged signature and asked a local police detective to provide false information to law enforcement officers if asked about Bowman’s activities with respect to the drug proceeds. Specifically, Bowman sent emails to the local police detective in October 2014 containing a detailed cover story that the detective was instructed to provide and a copy of the receipt with the forged signature, so that the detective could falsely claim the forged signature as his own.
“When the FBI became aware of allegations of misconduct by defendant Bowman, FBI management took immediate action by contacting the Justice Department’s Office of Inspector General,” said Acting Assistant Director in Charge James Struyk of the FBI’s Los Angeles Field Office. “As Mr. Bowman takes responsibility for his actions by pleading guilty, the public should be reminded that FBI personnel are held to the highest standards and misconduct of any kind is taken very seriously.”
This case was investigated by the Department of Justice Office of the Inspector General and is being prosecuted by Trial Attorneys Lauren Bell and Robert J. Heberle of the Criminal Division’s Public Integrity Section.
Florida Man Charged for Attempt to Use Explosive DeviceRead the Press Release
James Gonzalo Medina, 40, of Hollywood, Florida, was charged Saturday by criminal complaint with attempting to use a weapon of mass destruction – an explosive device – at a synagogue in Aventura, Florida.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Division made the announcement.
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.
A complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law. If convicted, Medina faces a maximum sentence of life in prison.
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.
Medina Complaint
Federal Jury Convicts Former District Attorney Walter P. Reed on 18 CountsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that a federal jury has convicted former District Attorney for the 22nd Judicial District, WALTER P. REED, age 69, and his son STEVEN P. REED, age 44, both of Covington.
The jury found WALTER P. REED guilty on 18 of 19 counts. WALTER P. REED was found guilty of:
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one count conspiracy to commit wire fraud and money laundering,
(Count 1) maximum penalty of 5 years imprisonment;
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seven counts of wire fraud,
(Counts 2-8) maximum penalty of 20 years imprisonment per count;
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one count of money laundering,
(Count 9) maximum penalty of 20 years imprisonment;
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four counts of false statement on income tax return,
(Counts 11-14) maximum penalty of 3 years imprisonment per count;
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five counts of mail fraud,
(Counts 15-19) maximum penalty of 20 years imprisonment per count.
STEVEN P. REED was found guilty on 3 of 4 counts, including:
- one count of conspiracy to commit wire fraud, and money laundering,
(Count 1) maximum penalty of 5 years imprisonment;
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one count of wire fraud,
(Count 7) maximum penalty of 20 years imprisonment;
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one count of money laundering,
(Count 9) maximum penalty of 20 years imprisonment;
Evidence presented at trial showed that WALTER P. REED and STEVEN P. REED devised a scheme to defraud the Walter Reed Campaign and contributors to the Walter Reed Campaign by using donations to WALTER P. REED’s campaign to pay for goods and services unrelated to the campaign or to the holding of public office, and in amounts that grossly exceeded the value of the services provided.
Additional evidence presented showed that WALTER P. REED caused a series of payments to be made from the Campaign Fund to STEVEN P. REED’s companies in order to pay down a loan on which WALTER P. REED was a cosigner for services that either were not provided or whose value was substantially less than the amount paid. For example, WALTER P. REED caused STEVEN P. REED’s company, Globop, to be paid approximately $8,352.64 for producing a housewarming party at WALTER P. REED’s new condominium in April 2012 that was unrelated to WALTER P. REED’S campaign, or the holding of public office. Similarly, STEVEN P. REED’s company, Liquid Bread LLC, received $29,400 from the Campaign Fund account for purportedly providing catering or bar services at a campaign event at the Castine Center in September 2012 that STEVEN P. REED did not actually provide. WALTER P. REED also required one company that provided services at the September 2012 event to kickback a portion of his payment to STEVEN P. REED as a means to funnel campaign monies to him.
WALTER P. REED was also convicted of paying for numerous other personal expenses unrelated to his campaign out of his Campaign Fund, including flowers with an accompanying message that stated, “[T]o my rodeo girl from a secret admirer from Camp J,” $1,885.36 for a Thanksgiving Day dinner for REED and approximately ten other members of his family and a $500 gift card for his future personal use, and $2,635.00 to a North shore steakhouse for a dinner he hosted for “Pentecostal Preachers” for the purpose of recruiting clients to refer him private civil legal work. Subsequently, REED also sought, and received, a reimbursement for the $2,635.00 dinner from the law firm with which he was affiliated, which he did not then put back into his Campaign Fund. In total, WALTER P. REED, spent over $120,000 from the Walter Reed Campaign Fund bank account on personal expenses in this manner, including to recruit potential clients for his private legal practice, to pay off various expenses incurred by his son, STEVEN P. REED, and to pay for private and personal dinners.
Additionally, WALTER P. REED was convicted of diverting money paid by St. Tammany Parish Hospital for work performed by the Office of the District Attorney to his personal bank account. Specifically, between about 1994 and 2014, St. Tammany Parish Hospital retained the services of the Office of the District Attorney to advise it on various matters, for which it agreed to pay between $25,000 and $30,000 per year. REED attended some of the monthly meetings, though on dozens of occasions he directed Assistant District Attorneys to attend. Notwithstanding REED’s use of resources and personnel of his office, REED deposited into his own personal bank account each check provided by St. Tammany Parish Hospital that were intended for the Office of the District Attorney.
“We thank the jury for its careful deliberation in the Walter and Steven Reed trial,” stated U.S. Attorney Polite. “The defendants’ actions were not innocent 'mistakes,' as Walter Reed claimed in his testimony. They were crimes. As a community, we are tired of hearing, and accepting, excuses from public officials who violate the public trust to enrich themselves. The time for excuses is over.”
U.S. District Judge Eldon E. Fallon set sentencing for September 15, 2016.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation for investigating this matter and thanked the Metropolitan Crime Commission for its assistance. The prosecution of this case was handled by Assistant United States Attorneys Jordan Ginsberg, Marquest Meeks, Brian Klebba and Maria Carboni.
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FastTrain Owner and Admissions Representative Sentenced to Prison for Federal Student Aid SchemeRead the Press Release
On May 2, 2016, Alejandro Amor, the owner of a Florida for-profit college called FastTrain, was sentenced to 97 months in prison by United States District Court Judge Joan A. Lenard, after having been convicted by a federal jury of orchestrating a conspiracy to steal government money and in fact stealing government money. FastTrain admissions representative Anthony Mincey was previously sentenced to 33 months in prison for his participation in the conspiracy.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Yessyka Santana, Special Agent in Charge, Department of Education, Office of Inspector General (ED-OIG) and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
According to evidence presented at trial, starting in 2010, FastTrain admissions representatives, acting at the direction of Alejandro Amor, began recruiting potential students in low income neighborhoods in Miami-Dade, Broward, Hillsborough, Pinellas, and Duval Counties, where FastTrain’s seven campuses were located. When admissions representatives encountered potential students who were ineligible for federal student aid because they had not graduated from high school or earned a GED, the admissions representatives enrolled the potential students anyway, and coached them to lie on their applications to the United States Department of Education for federal student aid, including federal Pell Grants and Direct Loans. Often, FastTrain admissions representatives falsely promised the students they could earn their high school diplomas or GEDs at FastTrain and in some cases, FastTrain admissions representatives actually created fictitious high school diplomas on FastTrain computers. Six student witnesses identified Anthony Mincey as the admissions representative who had coached them to lie about their eligibility.
Once the applications for federal student aid had been processed, millions of dollars in Pell Grants and Direct Loans were disbursed to FastTrain bank accounts controlled by Alejandro Amor and his wife. Alejandro Amor used those funds to make payments on, among other things, his waterfront home, airplane, car, and yacht.
According to the testimony and evidence introduced at trial, Alejandro Amor routinely falsified student records, emails, policy memoranda, and reports of internal investigations to hide the actions of his admissions representatives and retain federal student aid on behalf of the ineligible students enrolled at FastTrain. In one instance, Alejandro Amor created a fictitious disciplinary record for an admissions representative who had been caught coaching students to lie about their eligibility, before sending that admissions representative back out onto the streets to continue recruiting.
Mr. Ferrer commended the investigative efforts of ED-OIG and the FBI. The case was prosecuted by Assistant United States Attorneys Amanda Perwin and Vanessa Snyder.
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.
East Pittsburgh Man Enters Guilty Plea to Federal Drug and Gun ChargesRead the Press Release
PITTSBURGH – An Allegheny County resident of East Pittsburgh, PA, pleaded guilty in federal court to charges of conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine and being a felon in possession of a firearm, United States Attorney David J. Hickton announced today.
Tracey Yancey, 53, pleaded guilty to two counts before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Tracey Yancey was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier. During the investigation, Yancey also obtained a firearm, which he was prohibited from possessing as a convicted felon.
Judge Hornak scheduled sentencing for September 9, 2016. The law provides for a minimum sentence of five years in prison, a maximum sentence of 50 years in prison, a fine of not more than $5,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s bond.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Tracey Yancey.
Drug Dealer Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Richard Harrison Moore, 49, of Marion, was sentenced in federal court for his distribution of marijuana and hydrocodone during 2013. Moore was arrested as part of a three-year investigation into drug distribution, gun violence, money laundering, and white collar fraud conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the 4th Judicial Circuit Task Force, the Alabama Law Enforcement Agency, the Alabama Attorney General’s Office, the Internal Revenue Service, the United States Secret Service, and the United States Department of Agriculture Office of Inspector General. Moore was one of many distributors of drugs in Marion charged in federal court. He pled guilty to the two charges in February of 2016.
Court documents reflect that Moore underwent psychiatric treatment between the time of his arrest on the charges, in June of 2014, and his guilty plea in February of this year. At his sentencing hearing today, Judge Kristi K. Dubose imposed a sentence of time served, and required mental health treatment as a condition of his three-year term of supervision. No fine was imposed but the judge ordered that Moore pay $200 in special mandatory assessments. The case was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Dominican Man Pleads Guilty to Misrepresenting A Social Security NumberRead the Press Release
CONCORD, NEW HAMPSHIRE –United States Attorney Emily Gray Rice announced that Sergio Yeremi Martinez-Mejia, of the Dominican Republic, pleaded guilty to falsely claiming that he was assigned a social security number that was in fact assigned to another person.
On March 24, 2015, Immigration and Customs Enforcement was notified that the defendant was suspected of being a foreign national illegally in the United States. On March 23, 2015, the defendant told the Portsmouth Police Department that he was a Puerto Rican U.S. citizen and provided the police a certain social security number that he claimed was his.
On March 24, 2015, an Immigration and Customs Enforcement Deportation Officer interviewed Martinez-Mejia. The defendant claimed that he was born in Puerto Rico and provided the officer with a social security number not in fact assigned to Martinez-Mejia.
The Deportation Officer submitted the defendant’s fingerprints to the Department of Homeland Security and to the FBI. Each agency returned a match for the defendant, Sergio Yeremi Martinez-Mejia, who had, on July 11, 2011, been ordered deported from the United States to the Dominican Republic. Records of the U.S. Social Security Administration revealed that neither of the numbers the defendant claimed were assigned to him actually had been assigned to him.
Martinez-Mejia will be sentenced at 11:30 AM on August 9, 2016, and will be deported after serving his sentence.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement and the Portsmouth Police Department. Assistant U.S. Attorney Alfred Rubega is prosecuting this case.
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Conspirators in Two Android Mobile Device App Piracy Groups Plead GuiltyRead the Press Release
Convictions Part of First-Ever Prosecution of Mobile App Piracy Groups
A leading member of an online piracy group pleaded guilty today and a co-conspirator pleaded guilty in January for their roles in a scheme to distribute more than four million pirated copies of copyrighted Android apps with a total retail value of more than $17 million.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John A. Horn of the Northern District of Georgia and Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Field Office made the announcement.
Aaron Blake Buckley, 22, of Moss Point, Mississippi, pleaded guilty today to one count of conspiracy to commit criminal copyright infringement and to one count of criminal copyright infringement before U.S. District Judge Timothy C. Batten Sr. of the Northern District of Georgia. Gary Edwin Sharp II, 29, of Uxbridge, Massachusetts, a co-conspirator, pleaded guilty to one count of conspiracy to commit criminal copyright infringement on Jan. 13. The defendants are scheduled to be sentenced on Aug. 1.
According to statements made in court, the conspirators identified themselves as members of the Applanet Group. From May 2010 through August 2012, they conspired to reproduce and distribute more than four million copies of copyrighted Android apps through the Applanet alternative online market without permission from the victim copyright owners, who would otherwise sell copies of the apps on legitimate online markets for a fee. On Aug. 21, 2012, the FBI seized the Applanet website, which marked the first seizure of the domain name for a website involving a mobile device app marketplace.
Sharp also pleaded guilty for his role in conspiring to commit criminal copyright infringement as the leader of another online piracy group, the SnappzMarket Group. Sharp admitted that he and two other members of the SnappzMarket Group conspired to distribute more than one million pirated copies of copyrighted Android apps with a total retail value of more than $1.7 million through the group’s website, which was also seized on Aug. 21, 2012.
The FBI investigated the case. Assistant Deputy Chief John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Christopher Bly of the Northern District of Georgia are prosecuting the case. The CCIPS Cybercrime Lab and the Criminal Division’s Office of International Affairs provided significant assistance.
Clarksburg, WV man sentenced to 20 years in prison for receipt and distribution of child pornographyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Christopher Anthony Castillo, 32, of Clarksburg, was sentenced today to 240 months in prison after he admitted to receiving and distributing child pornography, United States Attorney William J. Ihlenfeld, II, announced.
Castillo repeatedly received and distributed a variety of sexually explicit images depicting minor victims. He pled guilty in November 2015 to one count of “Receipt and Distribution of Child Pornography.”
Assistant U.S. Attorney Stephen Vogrin prosecuted the case on behalf of the government. The Federal Bureau of Investigation, the West Virginia State Police Internet Crimes Against Children Task Force, and the Clarksburg, West Virginia Police Department investigated.
U.S. District Judge Irene M. Keeley presided.Clarksburg domestic violence offender pleads guilty to unlawful possession of firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Convicted domestic violence offender John Patrick Blair, 64, of Clarksburg, pled guilty today to unlawful possession of a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Blair, who has a previous domestic violence conviction in state court in West Virginia, was discovered in unlawful possession of a .357 magnum caliber rifle in August 2014 in Harrison County, West Virginia. Blair was convicted in April 2010 in the Magistrate Court of Harrison County, West Virginia of a misdemeanor crime of domestic violence.
Blair pled guilty today to one count of “Possession of a Firearm by a Person Convicted of a Misdemeanor Crime of Domestic Violence.” He faces up to 10 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn Adkins prosecuted the case on behalf of the government. The Clarksburg, West Virginia Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. District Judge Irene M. Keeley presided.
Butler County Woman Sentenced for Stealing $1.2 Million from Presbyterian ManorsRead the Press Release
WICHITA, KAN. – A Butler county woman was sentenced Monday to five years on federal probation for stealing more than $1.2 million from Presbyterian Manors of Mid-America, Acting U.S. Attorney Tom Beall said. The Wichita-based company owns assisted living centers in Kansas and Missouri.
Lori A. Shryock, 51, Augusta, Kan., pleaded guilty to one count of mail fraud. Shryock’s husband and co-defendant, Brent A. Shryock, 45, Augusta, Kan., was sentenced to 36 months.
In their pleas, they admitted the crime occurred while Brent Shryock was employed as information systems director for PMMA. He was in charge of all computers, telephones, video information and electronic equipment, including the purchase of new or replacement equipment for PMMA, Presbyterian Manor, Aberdeen and Ashfield facilities.
Brent Shryock created four fictitious companies, two of which were called Innovative Software Solutions and LGR Technologies. He directed payment to be mailed to those companies at post office boxes. Lori Shryock opened the two post office boxes where the checks were mailed. Either Brent or Lori Shryock would retrieve the payments and deposit them into the Shryocks’ personal accounts. The resulting loss to PMMA totaled $1.2 million.
Beall commended the FBI and Assistant U.S. Attorney Alan Metzger for their work on the case.
Buffalo Woman Pleads Guilty to Submitting Fraudulent Loan DocumentsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Tamara Ward, 39, of Buffalo, NY, pleaded guilty to possession of an unlawful authentication feature of the United States, before U.S. Magistrate Judge Jeremiah J. McCarthy. The charges carry a maximum penalty of two years in prison and a $200,000 fine.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the case, stated that according to the indictment, Ward applied for two separate automobile loans and in each instance provided false information. The defendant falsely represented on each of the applications that she was employed by the Internal Revenue Service, earning an annual salary of $50,000. Ward has never been employed by the IRS.
In a related civil forfeiture proceeding, the defendant agreed to forfeit any interest she had in the proceeds of the sale of one of the automobiles Ward fraudulently purchased. The defendant also agreed to make restitution in the amount of $1,460.15 for the second automobile.
The plea is the culmination of an investigation by Treasury Inspector General for Tax Administration (TIGTA), Office of Investigations, under the supervision of Special Agent in Charge, Robert E. O’Malley.
Sentencing is scheduled for July 29, 2016 before Judge McCarthy.
Buffalo Man Sentenced on Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney William J. Hochul Jr. announced today that Derek McQuiller, 42, of Buffalo, NY, who was convicted following a jury trial of possession with intent to distribute cocaine, was sentenced to 60 months in prison by Lawrence J. Vilardo. The defendant faced, and the Government advocated for, a sentence of 262 to 327 months in prison, a sentence which was recommended under federal sentencing guidelines.
Assistant U.S. Attorneys Edward H. White and Stephanie O. Lamarque, who handled the prosecution of the case, stated that during a traffic stop on April 22, 2015, the defendant threw a plastic bag out of the passenger window. The bag was recovered and found to contain 10 individually wrapped baggies of cocaine. McQuiller threw another plastic bag out of the driver’s side window. That bag was recovered and found to contain marijuana. During a subsequent search of the vehicle, another baggie of cocaine was discovered under the passenger floor mat.
The defendant was transported to the Town of Tonawanda Police Station and three additional baggies of cocaine were found later that night under the bench where McQuiller had been booked. The defendant also was alleged to have given a baggie of cocaine to a female acquaintance earlier that night in a motel room.
In addition, a witness for the Government testified at trial that the defendant sold her drugs for three years prior.
McQuiller has five prior state and federal convictions, all for drug trafficking offenses.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the Town of Tonawanda Police Department, under the direction of Chief Jerome C. Uschold III, and the Kenmore Police Department, under the direction of Chief Peter Breitnauer.Buffalo Man Sentenced on Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney William J. Hochul Jr. announced today that Derek McQuiller, 42, of Buffalo, NY, who was convicted following a jury trial of possession with intent to distribute cocaine, was sentenced to 60 months in prison by Lawrence J. Vilardo. The defendant faced, and the Government advocated for, a sentence of 262 to 327 months in prison, a sentence which was recommended under federal sentencing guidelines.
Assistant U.S. Attorneys Edward H. White and Stephanie O. Lamarque, who handled the prosecution of the case, stated that during a traffic stop on April 22, 2015, the defendant threw a plastic bag out of the passenger window. The bag was recovered and found to contain 10 individually wrapped baggies of cocaine. McQuiller threw another plastic bag out of the driver’s side window. That bag was recovered and found to contain marijuana. During a subsequent search of the vehicle, another baggie of cocaine was discovered under the passenger floor mat.
The defendant was transported to the Town of Tonawanda Police Station and three additional baggies of cocaine were found later that night under the bench where McQuiller had been booked. The defendant also was alleged to have given a baggie of cocaine to a female acquaintance earlier that night in a motel room.
In addition, a witness for the Government testified at trial that the defendant sold her drugs for three years prior.
McQuiller has five prior state and federal convictions, all for drug trafficking offenses.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the Town of Tonawanda Police Department, under the direction of Chief Jerome C. Uschold III, and the Kenmore Police Department, under the direction of Chief Peter Breitnauer.Berkeley County, WV man pleads guilty to stalking former co-workerRead the Press Release
MARTINSBURG, WEST VIRGINIA – Former Internal Revenue Service employee Victor Anderson, 65, of Martinsburg, West Virginia, pled guilty today to stalking a female coworker, United States Attorney William J. Ihlenfeld, II, announced.
While Anderson was employed at the Internal Revenue Service Computing Center in Martinsburg, he repeatedly used the Internet and traditional mail to distribute letters, photographs, essays, and poems containing sexually explicit information about a female co-worker. The items were distributed to the female co-worker’s supervisor, coworkers, relatives, neighbors, and other individuals within the United States government.
Anderson pled guilty today to one count of “Stalking.” He faces up to five years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Paul Camilletti prosecuted the case on behalf of the government. The United States Treasury Inspector General for Tax Administration investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Baltimore Man Admits to Setting Fire to Liquor Store During the Baltimore RiotsRead the Press Release
Baltimore, Maryland – Darius Raymond Stewart, age 22, of Baltimore, pleaded guilty today to malicious destruction of property by fire, arising from the arson of a liquor store on April 27, 2015, during the riots following the death of Freddie Gray. One victim was seriously injured inside the store, and another escaped with minor injuries.
“Surveillance cameras recorded while Darius Stewart maliciously set fire to a store with people inside, and other rioters viciously attacked the store owner,” said U.S. Attorney Rod J. Rosenstein. “Citizens deserve to know that the rule of law will be upheld, and criminals who destroy property and jeopardize lives will be held accountable.”
The plea agreement 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 (ATF) - Baltimore Field Division; and Commissioner Kevin Davis of the Baltimore Police Department.
According to his plea agreement, on April 27, 2015, during civil unrest in the wake of the funeral for Freddie Gray, there was widespread looting, and multiple structure and vehicle fires were set in Baltimore. The two owners of a liquor store located on West North Avenue were inside their store when the first wave of approximately 20 to 30 people entered the business and began banging on the bulletproof plexiglass window with pipes and crow bars. The group was chased off by a community member.
Shortly thereafter, a second wave of approximately 150 people entered the business and began ransacking and looting the store. One of the business owners was assaulted, resulting in a head injury requiring stitches, and was eventually rescued by police. Baltimore CitiWatch surveillance footage captured individuals robbing and repeatedly assaulting the owner as he was outside his store while it was being looted.
The second owner fled upstairs and was able to hide on an enclosed balcony as the looters broke down the door and looted the second floor.
At approximately 8:30 p.m. that night, Stewart set three fires inside the store. Surveillance footage clearly captured Stewart starting the fires and then going out to the street to get paper and cardboard to feed the fires he had set.
Smoke from the fires spread upstairs where the second owner was hiding. He was able to escape the burning building by using the gutter in an effort to slow his fall as he jumped to the ground. He suffered head trauma and injured his ankle. He was able to escape in his vehicle.
Baltimore City Fire Department responded to the scene. While extinguishing the fire, fire department personnel discovered an unconscious victim in the basement of the building. The victim suffered smoke inhalation and carbon monoxide poisoning, and was hospitalized for five days.
The damage caused by the fire was extensive and it is estimated that it will cost approximately $350,000 to repair and restore the building. Stewart has agreed to the entry of an order to pay restitution of at least $350,000.
Stewart and the government have agreed that if the Court accepts the plea agreement, Stewart will be sentenced to five years in prison followed by three years of supervised release. U.S. District Judge Marvin J. Garbis has scheduled sentencing for July 21, 2016 at 10:00 a.m.
United States Attorney Rod J. Rosenstein commended ATF and the Baltimore City Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the case.
Another Ordered to Prison in Large Drug and Money Laundering ConspiracyRead the Press Release
LAREDO, Texas – A third defendant convicted in a conspiracy to possess with intent to distribute in excess of 1,000 kilograms of marijuana and money laundering scheme has been ordered to prison, announced U.S. Attorney Kenneth Magidson. A federal jury convicted Baltazar Ibarra Cardona, 55, of Nuevo Laredo, Nov. 3, 2015, following three days of trial.
Today, U.S. District Judge Marina Garcia Marmolejo ordered he serve a total of 120 months in prison to be followed by five years of supervised release.
Erasmo Trejo-Nava was the head of a drug trafficking organization that received marijuana loads from Mexico and arranged to transport the marijuana to the Dallas area. The organization used various stash houses and business fronts in the Laredo area to receive and prepare the marijuana for transportation via personal vehicles to a local warehouse where it was unloaded and reloaded onto tractor trailers.
Cardona was one of several truck drivers used by the organization to transport marijuana from Laredo to Dallas. He was a commercial truck driver willing to transport drug loads for $15,000. Cardona would pick up trailers loaded with the marijuana left at a warehouse provided by co-defendant Rafael Ortega. On a weekend in October 2011, the organization loaded four large crates with marijuana and placed them onto a trailer at a local warehouse. On Oct. 10, 2011, Cardona drove a tractor to the warehouse and picked up the marijuana-loaded trailer to transport to Dallas, taking a longer route via Highway 83 to circumvent the IH-35 checkpoint in the hopes of evading law enforcement. However, a Zavala County deputy stopped him between Carrizo Springs and Uvalde with an expired driver’s license as well as expired insurance on the tractor. He also had a false bill of Lading showing that his cargo was destined to a hardware store in Abeline. A search of the tractor trailer revealed he was transporting 1,858 kilograms of marijuana. Evidence established that this had been Cardona’s third trip for the organization.
Ortega aka Tio, 57, of Laredo, was also convicted at trial and ordered to serve 120 months in federal prison. Erika Alavarez, Trejo-Nava’s niece, pleaded guilty for being a money courier and received 48 months in prison.
The remaining 17 defendants had previously pleaded guilty and are also awaiting sentencing. Erasmo Abdon Trejo Nava, 44, Jose Angel Trejo, 43, Ovidio Rodriguez, 42, Victor Hugo Trejo Nava, 42, Francisco Colin, 42, and Salvador Saldaña-Medrano, 37, all of Laredo; Jaime Enrique Montalvo-Ruiz, 45, of Nuevo Laredo, Mexico; and Leocadio Ruiz, 48, of Dallas, entered pleas of guilty to conspiring to possess with intent to distribute more than 1,000 kilograms of marijuana and conspiracy to launder drug proceeds. Five others - Juan Manuel Vargas Aguilar, 46, Mario Albert Rodriguez, 30, and Ricardo Ramirez, 34, all of Laredo; Arturo Lozano, 48, of Dallas; and Joshua Sanchez, 33, of Nuevo Laredo – pleaded guilty to the conspiracy. Gerardo Moreno Recio, 49, of Nuevo Laredo, was convicted of two separate counts of possession with intent to distribute more than 100 kilograms of marijuana, while Laura Heredia Garcia, 51, of Nuevo Laredo; and Raquel Margarita Ramos Jimenez, 45, and Leslie Bernice Trejo, 23, both of Laredo, entered pleas of guilty to one count of conspiracy to launder drug proceeds.
The charges were the result of a long term Organized Crime Drug Enforcement Task Force Investigation dubbed Operation Trena Sin Trono spearheaded by the Drug Enforcement Administration, High Intensity Drug Trafficking Area Task Force and IRS - Criminal Investigation with the assistance of Homeland Security Investigations, Laredo Police Department, Zavala County Sheriff’s Office. Assistant U.S. Attorney Mary Lou Castillo is prosecuting the case.
Another Former El Paso Independent School District Employee Surrenders – Charged in Fraud SchemeRead the Press Release
In El Paso this morning, 40–year-old James Anderson, former El Paso Independent School District (EPISD) Assistant Superintendent-Secondary Schools Division, surrendered to federal agents after being indicted in a scheme to defraud the U.S. Department of Education (DOE) by artificially inflating state and federal student accountability scores announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, El Paso Division; and, U.S. Department of Education Inspector General Kathleen S. Tighe.
The federal grand jury indictment, unsealed today as to Anderson and last week as to his five co-defendants, charges him with one count each of conspiracy to defraud the United States; conspiracy to commit mail fraud; mail fraud; and, making a false statement to a federal investigator.
Anderson’s co-defendants include: 50–year-old former El Paso Independent School District (EPISD) Associate Superintendent Damon Murphy; 52-year-old former Austin High School (AHS) Principal John Tanner; 51-year-old former AHS Assistant Principal Mark Phillip Tegmeyer; 53-year-old former AHS Assistant Principal Diane Thomas; and, 48-year-old former AHS Assistant Principal Nancy Love. All five surrendered to FBI agents last Wednesday.
The indictment alleges a scheme on the part of the defendants between February 2006 to September 2013 to violate the No Child Left Behind (NCLB) portion of the federal Elementary and Secondary Education Act (ESEA) in order to keep EPISD compliant with program requirements.
According to the indictment, fraudulent misrepresentations regarding EPISD's Adequate Yearly Progress (AYP) were submitted to the Texas Education Agency and the DOE in order to make it appear as though EPISD was meeting and exceeding AYP standards.
In the 2008/2009 school year, Murphy allegedly gave high school principals “marching orders” to “put up barriers” to prevent 9th grade Limited English Proficiency (LEP) students and others who they perceived would perform poorly on the TAKS test from going on to the 10th grade. Later, Murphy and others implemented a plan using partial course credits for the 10th grade to reclassify and promote those held-back students to the 11th grade thereby circumventing all mandated testing/accountability procedures including the 10th grade TAKS test.
The indictment further alleges that Anderson and others encouraged EPISD employees to lie about implementation of this scheme while intimidating and threatening those EPISD employees who did not follow their directions.
The indictment also alleges that from July 2006 to June 2013, Anderson, along with others, created a plan to reduce or eliminate the African–American subgroup at certain schools to make it appear to the DOE that no African-American subgroup existed on any EPISD Priority School Division campus.
The indictment also alleges that in August 2012, Anderson knowingly made a false statement to federal authorities in an attempt to mislead them and impede the government from learning of his role and others’ role in the above mentioned scheme.
Anderson faces up to five years in federal prison upon conviction of conspiracy to defraud the Government; up to 20 years in federal prison upon conviction of conspiracy to commit mail fraud; up to 20 years in federal prison upon conviction of mail fraud; and, up to five years in federal prison for making a false statement to a federal agent. Anderson is expected to have his initial appearance in federal court tomorrow afternoon at 2:30. He remains in federal custody at this time.
This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Department of Education Office of Inspector General. Assistant United States Attorneys Debra Kanof and Robert Almonte are prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
ACPD Sergeant Admits Structuring and Making False Statements to FBIRead the Press Release
CAMDEN, N.J. – A sergeant with the Atlantic City Police Department (ACPD) today admitted structuring financial transactions to avoid currency reporting requirements and lying to federal agents, U.S. Attorney Paul J. Fishman announced.
Kiyia M. Harris, 39, of Egg Harbor Township, New Jersey, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging her with one count of structuring and one count of making false statements to FBI agents during two interviews in December 2014.
According to documents filed in this case and statements made in court:
The charges concern Harris’ concealment of financial transactions conducted on behalf of her then-paramour, Donell Williams, who pleaded guilty on Jan. 27, 2016, before Judge Rodriguez to conspiracy to distribute cocaine from March 2012 to June 12, 2013. He also pleaded guilty to five counts of violating the terms of his supervised release from a 2010 federal drug conviction.
According to documents filed in this case and statements made in court:
While working as an ACPD officer, Harris was engaged in a personal relationship with Williams, who was on federal probation. In June 2012, Harris purchased a 1969 Camaro for Williams in her name and structured the payments for the car in such a manner as to avoid the filing of a Currency Transaction Report (CTR) by the car dealership and also to obscure Williams’ involvement in the purchase.
Harris caused $17,825 to be deposited in amounts less than $10,000. On June 8, 2012, Harris paid $9,999 to the dealership. Harris paid the balance due for the Camaro by check dated June 11, 2012, which was drawn on one of her personal accounts at TD Bank. Some of the monies Harris used to pay for the car were deposited into that same TD bank account on two separate dates at two different TD Bank branches.
CTR forms require disclosure of the identity of the individual who conducted the transaction and the individual or organization for whom the transaction was completed. Many individuals involved in illegal activities are aware of these reporting requirements and take active steps to cause financial institutions, including car dealerships, not to file CTRs in order to avoid detection of the movement of large amounts of U.S. currency or currency obtained from illegal activities, including drug trafficking, a practice referred to as “structuring.” This typically involves making multiple cash payments, deposits or withdrawals in amounts of $10,000 or less on the same day or consecutive days in order to avoid CTR filings.
During two interviews with special agents from the FBI, Harris made false statements to agents: she falsely told FBI agents that she had never deposited cash into her bank accounts when, in actuality, from Jan. 8, 2007, through Nov. 26, 2014, Harris deposited more than $120,000 into her accounts. Harris repeatedly denied having engaged in financial transactions with Williams, when she in fact had helped him with the purchase of the 1969 Camaro, as well as paying a $6,500 deposit on a 2012 Harley Davidson motorcycle.
The counts to which Harris pleaded guilty each carry a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Aug. 10, 2016. According to the Atlantic City Police Department, Harris has been suspended without pay pending the outcome of the prosecution. Williams is scheduled to be sentenced on Sept. 7, 2016.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher; the DEA’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; and the Atlantic City Police Department, under the direction of Police Chief Henry White, with the investigation leading to today’s guilty plea.
He also thanked the N.J. State Police; the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco and Firearms; U.S. Immigration and Customs Enforcement (ICE)-Homeland Security Investigation (HSI); Cumberland County Sheriff’s Office and the Ventnor, Northfield and Millville police departments for their assistance.
The government is represented by Assistant U.S. Attorney Diana V. Carrig of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: James J. Leonard Jr. Esq. of Atlantic City, New Jersey
Sunday 1 May 2016
Halliburton and Baker Hughes Abandon Merger After Department of Justice Sued to Block DealRead the Press Release
The Department of Justice announced today that Halliburton and Baker Hughes have abandoned their planned merger, originally valued at $34 billion. The department filed suit on April 6, 2016, to block the merger, alleging that the transaction would unlawfully eliminate significant head-to-head competition between the companies in at least 23 markets crucial to the exploration and production of oil and natural gas in the United States.
“The companies’ decision to abandon this transaction – which would have left many oilfield service markets in the hands of a duopoly – is a victory for the U.S. economy and for all Americans,” said Attorney General Loretta E. Lynch. “This case serves as a stark reminder that no merger is too big or too complex to be challenged, and that the hardworking men and women of the department’s Antitrust Division stand ready, willing and able to vigorously enforce the nation’s antitrust laws when companies propose deals that would enhance shareholder value at the expense of consumer interests. I am proud of the lawyers, economists, and others at the Justice Department whose work on this multi-year investigation and litigation made this result possible.”
“Very few things are as important to our economy as oil and gas,” said Deputy Assistant Attorney General David I. Gelfand of the Justice Department’s Antitrust Division. “But the merger of Halliburton and Baker Hughes would have raised prices, decreased output and lessened innovation in at least 23 oilfield products and services critical to the nation’s energy supply. We achieved the only result that could adequately protect American consumers – an abandonment of this unlawful merger. We thank our enforcement partners around the world, especially from the European Commission, Australia, Brazil and Mexico, for their close and constructive collaboration on this matter.”
Before the lawsuit was filed, Halliburton had offered to divest certain assets in an effort to address the department’s competitive concerns. According to the complaint, however, the proposal was inadequate because it did not include full business units, withheld many critical assets and personnel, involved numerous ongoing entanglements between the merged company and the divestiture buyer and generally failed to replicate the robust competition between the parties that exists today.
Halliburton is a Delaware corporation headquartered in Houston. Founded in 1919, Halliburton is the largest provider of services and products to the oil and gas industry in the United States. It has operations in approximately 80 countries and earned revenue of $23.6 billion in 2015.
Baker Hughes is a Delaware corporation headquartered in Houston. It was formed in 1987 with the merger of Baker International and Hughes Tool Company, both founded over 100 years ago. The third-largest provider of oilfield services in the world, Baker Hughes operates in more than 80 countries and earned revenue of $15.7 billion in 2015.
Delaware Woman Sentenced to A Year in Prison for $600,000+ Embezzlement from Credit Card Payment ProcessorRead the Press Release
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Lisa Mose, age 43, of Bear, Delaware, was sentenced last week by the Honorable Leonard P. Stark, Chief Judge of the United States District Judge for the District of Delaware, to 12 months and one day in prison, and full restitution. The defendant pleaded guilty to a wire fraud violation in January 2016.
According to statements on the record and documents filed in court, Mose was employed by a credit card transaction processor, in New Castle, Delaware. Mose was a supervisor within the reconciliation and settlements department. She had access to initiate manual wire transfers from her employer’s operating accounts. From January 2009 through June 2014, Mose made false entries into the company’s computerized system and initiated at least 325 wire transfers, totaling at least $618,075, to her personal bank accounts and bank accounts of known associates. Mose used a significant portion of the proceeds to purchase vacations and high-end consumer goods.
U.S. Attorney Oberly commented, “Ms. Mose was a trusted supervisor at her place of employment and she systematically, over a period of years, proceeded to steal over $600,000 from her employer. Such a breach of trust cannot go unpunished and a sentence of incarceration is necessary to deter others who might consider stealing from their employers.”
This case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Lauren Paxton.
Saturday 30 April 2016
Prescription Drug Take Back Day Nets More Than 5,000 Pounds of Unwanted and Unused PillsRead the Press Release
(MINNEAPOLIS) – Federal and local officials today in Minneapolis hosted a prescription drug take back event as part of the DEA’s National Prescription Drug Take Back Day. Minnesotans disposed of more than 5,000 pounds of unwanted medication at the Hennepin County Sheriff’s Office in Downtown Minneapolis. On hand to participate in the take back event were federal and local officials and local advocates.
Today in Minneapolis, Michael Botticelli, Director of National Drug Control Policy at the White House was joined by DEA Special Agent in Charge Dennis A. Wichern, U.S. Attorney Andrew Luger, Hennepin County Sheriff Rich Stanek, elected officials and a representative of the Hazelden Betty Ford Institute for Recovery Advocacy.
“Take back events, along with year-round safe disposal programs, are an important part of our efforts to decrease prescription drug misuse and overdose deaths because we know the majority of people who misuse prescription drugs obtain them from family or friends,” said Michael Botticelli, Director of National Drug Control Policy.
“April 30 is National Prescription Drug Take Back Day,” said Dennis A. Wichern, DEA Special Agent in Charge of the Chicago Field Division. “This year will be the eleventh DEA sponsored event to join with the community to empty our medicine cabinets of unwanted, unneeded, expired medications. Misused medications can cause great harm. Safely disposing of these prescription drugs will save lives. Preventing one pill from being used for the wrong reasons is the starting point for a safer, healthier Minnesota.”
“Opioid abuse is a public health and law enforcement problem in Minnesota,” said U.S. Attorney Andrew M. Luger. “Events like today’s DEA drug take back help to prevent abuse and addiction by providing a free opportunity for the disposal of unused and unwanted medicines.”
“The tragic consequences of opioid addiction have been devastating across Minnesota and nationwide,” said Hennepin County Sheriff Rich Stanek. “I urge all residents to help the Hennepin County Sheriff’s Office raise awareness about reducing the risk of painkiller abuse. Clean out your medicine cabinet and routinely dispose of unwanted painkillers and medications by bringing them to a disposal box at a Sheriff’s Office facility.”
“These efforts to remove unused prescriptions from our medicine cabinets will save lives,” said Senator Chris Eaton. “If you have a prescription of any kind, keep it locked up where guests and family can't access it. We have had too many deaths from opioids in Minnesota and in the country. This simple step can make a huge difference.”
“National Prescription Drug Take-Back Day, and similar events throughout the year, are very important to help get dangerous drugs out of our homes and workplaces and to shine a spotlight on the huge problems we are seeing around prescription drug addiction and overdoses,” said Nick Motu, Vice President of the Hazelden Betty Ford Institute for Recovery Advocacy.
Last September, Americans turned in 350 tons (over 702,000 pounds) of prescription drugs at more than 5,000 sites operated by the DEA and more than 3,800 state and local law enforcement partners. Overall, in its 10 previous Take Back events, DEA and its partners have taken in over 5.5 million pounds—more than 2,750 tons—of pills.
The National Prescription Drug Take-Back addresses a vital public safety and public health issue. Many Americans are not aware that medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are at alarming rates, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that many abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. In addition, many Americans do not know how to properly dispose of their unused medicine, often flushing them down the toilet or throwing them away – both potential safety and health hazards.
Drug overdoses are now the leading cause of injury-related death in the United States, eclipsing deaths from motor vehicle crashes or firearms. The removal from homes of unwanted prescription pills that can be abused, stolen or resold is an easy way to help fight the epidemic of substance abuse and addiction. That is why local communities are also establishing ongoing drug take back programs.
Friday 29 April 2016
White Oak Man Pleads Guilty in Cocaine Trafficking ConspiracyRead the Press Release
PITTSBURGH – An Allegheny County resident pleaded guilty in federal court to a charge of conspiracy to possess with intent to distribute and distribute a quantity of cocaine, United States Attorney David J. Hickton announced today.
David Irwin, 43, of White Oak, Pa., pleaded guilty yesterday to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, David Irwin was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Judge Hornak scheduled sentencing for Aug. 17, 2016, at 11 a.m. The law provides for a maximum sentence of 20 years in prison, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s detention.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of David Irwin.
Weslaco Woman Indicted for Making False Allegations Against a Federal AgentRead the Press Release
HOUSTON – A Weslaco woman has been arrested for falsely accusing a Drug Enforcement Administration (DEA) agent of taking bribes, announced U.S. Attorney Kenneth Magidson.
Candida Marroquin-Mobley, 41, of Weslaco, was taken into custody today. She is expected to make her initial appearance before a U.S. magistrate judge in McAllen on Monday, May 2.
The indictment, returned April 27, 2016, alleges she made materially false statements to a federal agent. She allegedly stated that she was aware of a DEA agent who was “on the take” and receiving bribes. Marroquin-Mobley knew both that the statements were false and that the special agent in question had not received bribes, according to the allegations.
If convicted, she faces up to five years in federal prison and a possible $250,000 fine.
The Department of Justice - Office of the Inspector General investigated. Assistant U.S. Attorneys Ted Imperato and Sam Brown IV are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Veterans Services Organization Bookkeeper Sentenced to 2 Years in Prison for Fraud, Tax OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CYNTHIA TANNER, 54, formerly of Darien, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 24 months of imprisonment, followed by three years of supervised release, for embezzling approximately $800,000 from a Connecticut-based veterans services organization, and for failing to pay taxes on that income.
According to court documents and statements made in court, TANNER was employed as a bookkeeper for the National Veterans Service Fund (“NVSF”) located in Darien. The stated mission of the NVSF was to provide case managed social services and limited medical assistance to Vietnam and Persian Gulf War veterans and their families, with a focus on families with disabled children. From approximately January 2009 through June 2014, TANNER used nearly $800,000 in NVSF funds to pay various personal expenses for her and her family members. She also altered records to conceal her scheme and by falsely claiming that the stolen monies were being paid to veterans in need.
In addition, TANNER failed to report $794,768.47 in embezzled income on her 2009 through 2013 federal tax returns, resulting in a tax loss of $270,026.
TANNER was ordered to pay full restitution to the NVSF, and back taxes, interest and penalties in an amount that exceeds $500,000.
TANNER was arrested on related state charges on June 2, 2014. On December 15, 2015, she pleaded guilty to one count of wire fraud and one count of tax evasion.
TANNER, who is released on bond, was ordered to report to prison on August 30, 2016.
This investigation was conducted by the U.S. Secret Service, Internal Revenue Service – Criminal Investigation Division and Darien Police Department. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Utica Woman to Serve Prison Term in Marriage Fraud CaseRead the Press Release
SYRACUSE, NEW YORK – Zubeda Kalume, 42, of Utica was sentenced yesterday to serve 14 months imprisonment and a 3 year term of supervised release, and to pay a $100 special assessment, following her conviction after trial for entering into a fraudulent marriage for the purpose of allowing a Gambian man to unlawfully remain in the United States, announced United States Attorney Richard S. Hartunian and Brian Devine, Resident Agent in Charge, Homeland Security Investigations, Syracuse Office. Kalume is a naturalized U.S. citizen originally from the Congo who was found guilty after a 4-day jury trial in December 2015.
In sentencing Kalume, Chief United States District Court Judge Glenn T. Suddaby noted that while fraudulently holding herself out to federal immigration officials as lawfully married, she was simultaneously representing to other agencies that she was a single mother in her applications for food stamp benefits, Section 8 housing benefits, and day care benefits.
"As this sentence makes clear, America’s legal immigration system is not for sale. We are committed to fighting fraud and deceit for profit so immigration benefits are not drained away from those who deserve them," said United States Attorney Richard S. Hartunian.
"Marriage fraud is a federal crime and unfortunately one that is all too common," said Brian Devine, resident agent in charge for Homeland Security Investigations in Syracuse. "Schemes like this not only damage the integrity of America’s legal immigration system, but they could also be exploited by individuals who pose a significant risk to our nation's security. We applaud the U.S. Attorney's office for pursuing these violations vigorously and thank our federal partners at the U.S. Department of Agriculture for their instrumental efforts throughout the course of this investigation."
The evidence at trial established that Kalume and Alieu Jaiteh, 32, a citizen of The Gambia, were married in Dewitt, New York in October 2009. Jaiteh, who had entered the country on an F-1 student visa, violated its terms and was in the United States illegally at the time of the marriage. Zubeda Kalume agreed to marry Jaiteh for $10,000 and later assisted him in getting temporary legal immigration status. Alieu Jaiteh, of Syracuse, New York, was himself convicted for conspiring from 2009 to 2012 to commit more than $1.7 million in federal food stamp fraud and was sentenced to 18 months in prison in April 2015.
These convictions are the culmination of a joint investigation conducted by Special Agents from Homeland Security Investigations (HSI) and the U.S. Department of Agriculture’s Office of the Inspector General. Assistance was also provided throughout the investigation by the Onondaga County Department of Social Services’ Welfare Fraud Unit, Oneida County Social Services, and the New York State Police. The case was prosecuted by Assistant U. S. Attorney Geoffrey Brown.