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Friday 29 April 2016
U.S. Navy Captain Select Sentenced to over Six Years in Prison for Accepting Cash and Prostitutes in International Bribery SchemeRead the Press Release
A U.S. Navy Captain Select was sentenced today to 78 months in prison for bribery charges, admitting that he accepted cash, gifts, travel expenses, entertainment and the services of prostitutes from foreign defense contractor Glenn Defense Marine Asia (GDMA) in exchange for classified U.S. Navy information, including ship schedules that contained information related to the U.S. Navy’s ballistic missile defense operations in the Pacific. In addition, he was ordered to pay a fine in the amount of $100,000 and to forfeit $95,000 in proceeds for the scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Laura Duffy of the Southern District of California, Deputy Inspector General for Investigations James B. Burch of the Defense Criminal Investigative Service (DCIS) and Director Andrew Traver of the Naval Criminal Investigative Service (NCIS) made the announcement.
Michael Vannak Khem Misiewicz, 49, of San Diego, was sentenced by U.S. District Judge Janis L. Sammartino of the Southern District of California for one count of conspiracy and one count of bribery.
According to admissions in his plea agreement, from January 2011 until September 2013, Misiewicz provided classified U.S. Navy ship schedules and other sensitive U.S. Navy information to the defense contractor Leonard Glenn Francis, CEO and owner of Singapore-based GDMA. GDMA provided port services to U.S. Navy ships and submarines when they arrived at ports throughout the Pacific.
Misiewicz admitted that when he was stationed in Japan, on the USS Mustin and in Colorado Springs, Colorado, he used his position and influence within the U.S. Navy to advance the interests of GDMA, including by providing Francis with classified ship schedules and other proprietary U.S. Navy information. In return, Misiewicz admitted that Francis gave him cash, paid for luxury travel on at least eight occasions for Misiewicz and his family, provided his wife with a designer handbag and provided Misiewicz with the services of prostitutes on multiple occasions. Throughout the conspiracy, Misiewicz admitted that he and his conspirators took steps to avoid detection by law enforcement by, among other means, using clandestine email accounts, which they periodically deleted.
To date, 10 individuals have been charged in connection with this scheme; of those, nine have pleaded guilty, including Misiewicz, U.S. Navy Capt. Daniel Dusek, Lieutenant Commander Todd Malaki, NCIS Special Agent John Beliveau, Commander Jose Luis Sanchez and U.S. Navy Petty Officer First Class Dan Layug. Former Department of Defense civilian employee Paul Simpkins awaits trial. On Jan. 21, 2016, Layug was sentenced to 27 months in prison and a $15,000 fine; on Jan. 29, 2016, Malaki was sentenced to 40 months in prison and to pay $15,000 in restitution to the Navy and a $15,000 fine; on March 18, 2016, Alex Wisidagama, a former GDMA employee, was sentenced to 63 months and $34.8 million in restitution to the Navy; and on March 25, 2016, Dusek was sentenced to 46 months in prison and to pay $30,000 in restitution to the Navy and a $70,000 fine; the others await sentencing.
NCIS, DCIS and the Defense Contract Audit Agency are conducting the ongoing investigation. Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mark W. Pletcher of the Southern District of California are prosecuting the case.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DoD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
U.S. Attorney’s Office urges public to participate in drug take-back driveRead the Press Release
SHREVEPORT, LAFAYETTE, MONROE, ALEXANDRIA, LAKE CHARLES, La. – United States Attorney Stephanie A. Finley urges the public to get out this weekend and throw out unused prescription drugs.
The Drug Enforcement Administration (DEA) and more than 3,800 national, tribal and community law enforcement partners nationwide will be promoting National Prescription Drug Take-Back Day with events across the nation this weekend. The National Prescription Drug Take-Back Day provides a safe, convenient and responsible means of disposing of prescription drugs. It also educates the public about the potential for abuse of medications. Unused medications in homes create a public health and safety concern because they are highly susceptible to accidental ingestion, theft, misuse and abuse. More than 46,000 Americans die each year from drug-related deaths, and more than half of those are from heroin and prescription opioids. The DEA reports that almost twice as many Americans (6.5 million) abuse prescription drugs than the number of those using cocaine, hallucinogens, heroin and inhalants combined, according to the 2014 National Survey on Drug Use and Health. More Americans died in 2010 from overdoses of prescription medications (22,134, including 16,651 from narcotic painkillers) than from motor vehicle accidents, says the Centers for Disease Control and Prevention. Studies show that the majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet.
The DEA will have collection sites across the country on Saturday, April 30th, for those who are interested in bringing their unused or expired prescription drugs for proper disposal. Only pills and other solids, like patches, can be brought to the collection sites – liquids and needles or other sharp objects will not be accepted. The service is free and anonymous, no questions asked.
Prescription drugs can be dropped off from 10 a.m. to 2 p.m., Saturday, at the following sites:
Shreveport
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Caddo Parish Sheriff’s Office, Sheriff’s Safety Town in the Parking Lot of Summer Grove Baptist Church, 8910 Jewella Ave.
Bossier City
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Bossier Parish Sheriff’s Office Viking Drive Substation, 2510 Viking Drive
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Louisiana State Police Troop G office, 5300 Industrial Drive, Extended
Barskdale Air Force Base
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455 Curtis Road
Monroe
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Louisiana State Police Troop F office, 1240 Highway 594
Alexandria
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Louisiana State Police Troop E office, 1710 Odom St.
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Alexandria Police Department, 1000 Bolton Ave.
Lafayette
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Louisiana State Police Troop I office, 121 E. Pont Des Mouton Road
Broussard
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Broussard Police Department at Walgreen’s Parking Lot, 105 St. Nazaire
Lake Charles
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Lake Charles Police Department at the Lake Charles Civic Center Parking Lot, 900 Lakeshore Drive
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Louisiana State Police Troop D office, 805 Main St.
The public can also find a nearby collection site by visiting www.dea.gov, clicking on the “Got Drugs?” icon, and following the links to a database where they enter their zip code or call 800-882-9539.
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U.S. Attorney’s Office for the Southern District of Florida is Committed to Reducing Recidivism through Reentry ProgramsRead the Press Release
The United States Attorney’s Office for the Southern District of Florida is committed to reducing recidivism and helping formerly incarcerated individuals contribute to their communities.
During National Reentry Week, Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, recognizes the collective efforts of the U.S. Attorney’s Office, U.S. District Court, U.S. Probation, the Federal Public Defenders Office, law enforcement and community stakeholders, to implement local reentry initiatives and support returning citizens.
“By coming together to help returning citizens reintegrate into society we are making our criminal justice system smarter, less expensive, and more effective,” stated U.S. Attorney Wifredo Ferrer. “Successful reentry initiatives that provide returning citizens with the tools, skills, and opportunities they need to succeed when they return to their communities will have tremendous implications for the safety of our neighborhoods, the health of our economy, and the strength of our neighborhoods. If we can reduce recidivism by helping motivated individuals successfully reenter society and become productive members of our communities, we can reduce crime in our streets.”
Each year, more than 600,000 citizens return to our neighborhoods after serving time in federal and state prisons, and another 11.4 million individuals cycle through local jails. The long-term impact of a criminal record prevents many returning citizens from obtaining employment, housing, a quality education, adequate health care, personal identification and even financial credit. These often-crippling barriers can contribute to a cycle of incarceration that makes it difficult for even the most well intentioned individuals to continue on the right path and avoid reentering the criminal justice system. Within the Southern District of Florida comprehensive reentry reforms have been implemented to promote the successful reintegration of returning citizens and reduce recidivism. These efforts will help those who have paid their debt to society prepare for substantive opportunities beyond the prison gates, promote family unity, contribute to the health of our economy, advance public safety and sustain the strength of our communities.
This month, the Southern District of Florida launched its first ever Reentry Court, known as the Court-Assisted Re-Entry (CARE) Initiative. The CARE Initiative is a problem-solving, collaborative effort between U.S. District Court, the U.S. Probation Office, the U.S. Attorney’s Office and Federal Public Defender representatives, and a Department of Justice Re-Entry Specialist. The CARE Team’s mission is to: help those returning from prison to become productive members of society by providing coordination for job training and placement, housing assistance, educational support, and the medical, substance abuse and mental health referrals; promote community safety by reducing recidivism and victimization; and reduce taxpayer spending on incarceration. Through bi-monthly court sessions, the CARE Team assess each participants’ progress, address any issues with his or her reentry, decides whether wrap-around services can be provided, and determines appropriate rewards and/or sanctions.
In 2011, The United States Attorney’s Office established the Violence Reduction Partnership (VRP) to address violent crime, gang activity and firearms offenses that plague communities in the Southern District. The VRP employs a holistic, three-pronged approach to violence reduction – one focused not only on enforcement, but also on prevention and reentry. Utilizing this multi-faceted approach, the VRP aims to reduce crime and promote safer and more resilient communities.
As part of the reentry prong of the VRP, the U.S. Attorney’s Office, alongside the Federal Bureau of Prisons, U.S. Probation and non-profit service providers have conducted Reentry and Resource (“in-reach”) Meetings at the Federal Detention Center and Federal Correctional Institution in the Southern District. The meetings provide inmates preparing to be released from incarceration with the tools and information they need to navigate their successful reentry into society and reduce their risk of recidivism. Since 2013, more than 535 individuals have attended the meetings and received a Reentry Resource Guide. The most recent in-reach meeting was held this past Monday at the Federal Detention Center. Additionally, since 2012, the U.S. Attorney’s Office has been actively involved with Reentry Fairs at state correctional institutions and has connected with more than 3,261 inmates before their release.
The U.S. Attorney’s Office and our community partners also support the South Florida Reentry Center Hub, a traveling one-stop service center for returning citizens and their families. The Reentry Center Hub provides returning citizens with easy, centralized access to a variety of reentry services within their local communities. Since 2014, Reentry Center Hub events, held in Fort Pierce, Miami Gardens, Liberty City and Goulds, Florida, have reached more than 630 returning citizens and their families. On April 27, 2016, the Reentry Center Hub provided information and services to 120 individuals.
Additionally, the U.S. Attorney’s Office and the Florida Department of Corrections continue to host Job Preparedness Workshops for returning citizens. The workshops provide individuals with the information they need to seek, gain and maintain lawful employment. The curriculum focuses on a variety of areas, including the development of resume writing, application and interview skills. A workshop was held yesterday afternoon and since 2013 the workshops have offered services to 58 returning citizens.
The goal of the reentry initiatives is to build a safer, more equal and more inclusive America.
Additional information regarding the CARE and VRP initiatives is available at [email protected] or by calling (305) 961-9134.
U.S. Attorney’s Office Focuses on Reducing Barriers to Reentry and Employment During Employment SummitRead the Press Release
DALLAS — This afternoon, as part of its efforts during National Reentry Week, the U.S. Attorney’s Office for the Northern District of Texas hosted an Employer Summit, entitled “Employers Investing in Community Prosperity,” in Arlington, Texas, to highlight the benefits of hiring the formerly incarcerated, announced U.S. Attorney John Parker of the Northern District of Texas.
“Finding a job even without a conviction can be challenging, but for those being released from prison, it can be almost impossible,” said U.S. Attorney Parker. “Regardless of the severity of their crime, recently released individuals often find that their past criminal record can be tantamount to a life sentence of low wages, underemployment, and poverty. We all have a vested interest in ensuring that those who are genuinely motivated to rebuild their lives after release have the tools and legitimate opportunities to do so.”
As part of National Reentry Week, the Administration has taken a series of steps to reform the federal approach to reentry by addressing barriers to reentry, supporting state and local efforts to do the same, and engaging the private sector to provide individuals who have earned a second chance the opportunity to participate in the American economy.
At this afternoon’s Employer Summit, representatives from the U.S. Attorney’s Office, the Department of Labor, the Texas Offender Reentry Initiative, and the Texas Workforce Investment Council provided information to employers to assist them in navigating the hiring process for the formerly incarcerated. Information was also furnished about the steps that federal, state, and local governments are taking to reduce barriers to employment for formerly incarcerated individuals, as well as information concerning the benefits, such as available tax incentives, of hiring the formerly incarcerated.
Just today, President Obama signed a Presidential Memorandum establishing the Federal Interagency Reentry Council to lead the Government’s work on the rehabilitation and reintegration of individuals returning to their communities from prisons and jails. For five years, the Attorney General has successfully led the Cabinet-level working group; this memorandum will build on that success and ensure the federal government will continue this important work.
The Administration is taking specific steps to reduce barriers to employment for formerly incarcerated individual. As brief examples:
- The Office of Personnel Management (OPM) is publishing a proposed rule that would prohibit federal agencies from asking questions about criminal and credit history to applicants for jobs in the competitive service and the career senior executive service, until a conditional offer of employment has been made.
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The Presidential Memorandum directs all agencies to review their procedures for conducting a suitability determination for a job applicant with a criminal record.
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The Presidential Memorandum directs all agencies with discretion to grant or deny occupational licenses to ensure that a criminal record is not an automatic disqualifier.
Today’s Employer Summit concluded a busy National Reentry Week in north Texas in which the U.S. Attorney’s Office sponsored and coordinated several events to raise awareness of the importance of reentry work. On Monday, U.S. Attorney Parker welcomed approximately 300 attendees at the 2016 Reentry Symposium in Dallas, and on Tuesday, staff members from the U.S. Attorney’s Office joined Bureau of Prisons (BOP) staff at Federal Correctional Institute (FCI) Fort Worth to participate in a Reentry Simulation that offered FCI inmates an opportunity to experience, first-hand, what it is like to be a newly-released offender. On Wednesday, the U.S. Attorney’s Office participated in a Reentry Information Fair at the Federal Medical Center (FMC) Carswell in Fort Worth, where representatives from area service providers and community groups provided information and resources to assist inmates in overcoming reentry barriers they may encounter in employment, medical care, public assistance, identification and housing. On Wednesday evening in Dallas, and on Thursday evening in Fort Worth, hundreds of recently-released state parolees/probationers attended the U.S. Attorney’s Office Project Safe Neighborhood (PSN) Probation/Parole Reentry Sessions. At each of these monthly sessions, staff from the U.S. Attorney’s Office, and others from local, state and federal law enforcement, emphasize federal firearms laws and ensure attendees are aware of available social services.
Earlier this week, Attorney General Loretta E. Lynch announced new reforms to strengthen the BOP, including the “Roadmap to Reentry,” the Department’s comprehensive vision to reduce recidivism through reentry reforms at the BOP.
More information about Reentry efforts in the Northern District of Texas may be found here. Additional resources regarding the Department’s Reentry efforts may be found here.
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- The Office of Personnel Management (OPM) is publishing a proposed rule that would prohibit federal agencies from asking questions about criminal and credit history to applicants for jobs in the competitive service and the career senior executive service, until a conditional offer of employment has been made.
U.S. Attorney’s Office Announces Award RecipientsRead the Press Release
Baltimore, Maryland - Sixteen employees of the United States Attorney’s Office and five law enforcement officers were honored today with the Office’s most prestigious awards. At a ceremony held to announce the awards this morning at the U.S. Courthouse in Baltimore, the United States Attorney also welcomed eight new Assistant U.S. Attorney and other employees who have joined the Office since last year.
Maryland U.S. District Judge George Jarrod Hazel served as the keynote speaker for the event. Judge Hazel was a Maryland Assistant U.S. Attorney from 2008 to 2010.
“These award recipients accomplished superb results while respecting our high ethical and professional standards,” commented U.S. Attorney Rod J. Rosenstein. “As the U.S. Attorney’s Office works with our partners to promote the rule of law, punish criminals, deter crime and protect government property, it is essential to maintain our commitment to excellence, integrity and achievement.”
During the annual ceremony, the U.S. Attorney encourages prosecutors to heed the advice of Robert H. Jackson, while serving as Attorney General in 1940: “’A sensitiveness to fair play and sportsmanship is perhaps the best protection against the abuse of power, and the citizen’s safety lies in the prosecutor who tempers zeal with human kindness, who seeks truth and not victims, who serves the law and not factional purposes, and who approaches his task with humility.’”
Annual Awards
The following awards were announced for accomplishments over the past year:
Gary Jordan Award
Recipient: Evelyn Germani
Gary P. Jordan served with distinction for many years as an Assistant U.S. Attorney, as First Assistant from March 29, 1987 until his death on October 25, 1996, and as interim U.S. Attorney in 1993. This is an honorary award presented annually to an employee for exemplary performance that demonstrates the highest traditions of the office: integrity, ingenuity, dedication to public service and fairness.
Barnet D. Skolnik Award
Recipients: Harry M. Gruber
Joyce K. McDonaldBarnet D. (Barney) Skolnik was an Assistant U.S. Attorney who led teams that prosecuted numerous white collar criminals and corrupt public officials in the 1970s, including Vice President Spiro T. Agnew. This is an honorary award presented annually to one or more Assistant U.S. Attorneys who demonstrate outstanding professionalism, determination and creativity in a case of unusual public significance.
Employee of the Year Award
Recipient: Jeremy M. Warga
The Employee of the Year Award recognizes sustained superior performance and outstanding achievements by a non-attorney employee. The award also recognizes the recipient's professionalism, dedication and comprehensive knowledge in their area of expertise.
Pete Twardowicz Award
Recipients: Jason Bender
Cam Costello
Jennifer Perry
Kalliopi Tserkis-Mullins
Michael ShaoThe Pete Twardowicz Award was established in honor of Eugene P. (Pete) Twardowicz, who rendered many years of outstanding service to the U.S. Attorney’s Office as an IRS criminal investigator and a Special Investigator for this Office. This award recognizes law enforcement agents or officers for outstanding cooperation and achievement while working with the U.S. Attorney’s Office on a significant case.
Excellence in Civil Advocacy
Recipient: Thomas H. Barnard
Roann NicholsThe U.S. Attorney’s Award for Excellence in Civil Advocacy, established in 2007, is presented annually to an Assistant U.S. Attorney for outstanding advocacy in civil litigation.
Excellence in Prosecution of Fraud
Recipients: Martin J. Clarke
Leo J. WiseThe U.S. Attorney’s Award for Excellence in Prosecution of Fraud, established in 2007, is presented annually to an Assistant U.S. Attorney for outstanding work in prosecuting fraud.
Excellence in Prosecution of Violent Crime
Recipient: Patricia C. McLane
Seema Mittal
Andrea L. SmithThe U.S. Attorney’s Award for Excellence in Prosecution of Violent Crime, established in 2007, is presented annually an Assistant U.S. Attorney for outstanding work in prosecuting violent crime.
Excellence in Prosecution of Organized Crime
Recipient: Paul E. Budlow
John W. Sippel, Jr.
Aaron S.J. ZelinskyThe U.S. Attorney’s Award for Excellence in Prosecution of Organized Crime, established in 2007, is presented annually to an Assistant U.S. Attorney for outstanding work in prosecuting organized criminal activity.
Excellence in Legal Support
Recipient: Damaris Weeks
The U.S. Attorney’s Award for Excellence in Legal Support, established in 2007, is presented annually to one or more non-attorney employees for outstanding work in support of the mission of the U.S. Attorney’s Office.
Outstanding Contributions to a Law Enforcement Initiative
Recipient: Vincent DeVivo
The U.S. Attorney’s Award for Outstanding Contributions to a Law Enforcement Initiative, established in 2007, is presented annually to one or more employees for outstanding work in support of an initiative of the U.S. Attorney’s Office.
Carl S. Lackl Award
Recipient: Minor who testified at trial.
The Carl S. Lackl Award for Exemplary Perseverance and Fortitude in Pursuit of Justice was established in 2008 in honor of Carl Stanley Lackl, Jr. Mr. Lackl witnessed a murder in Baltimore in 2006 and agreed to testify against the suspect he identified. After the suspect was arrested by police and charged in state court with the murder, he used a contraband cellular telephone to contact co-conspirators and arranged to murder Mr. Lackl, who was shot to death outside his house in front of his daughter. All of the conspirators were convicted on federal charges.
New Employees
In addition, the U.S. Attorney welcomed new employees who joined the office last year. Assistant U.S. Attorneys: Dana Brusca, Derek Hines, Christina Hoffman, Menaka Kalaskar, Matthew Maddox, David Metcalf, Philip Selden and Jennifer Sykes. Special Assistant U.S. Attorneys: Keri Borzilleri, John Hanley, Amanda Harris, Francesca Liquori, Mara Senn, Angela Tang, and Rachel Timm. Non-Attorney Staff: Stephanie Alley, Amna Aslam, Chikiera Cephas, Jordan Cook, Bailey Drumm, Hasina Griffiths, Joshua Ingles, Shantal Kelly and Schneyder Mettelus.
U.S. Attorney, Caddo Parish Sheriff partner to observe Reentry Week with discussions, tourRead the Press Release
SHREVEPORT – United States Attorney Stephanie A. Finley and Caddo Parish Sheriff Steve Prator partnered to hold roundtable discussions, a tour and other events for National Reentry Week.
The program, called Project A.C.E. (Addressing, Connecting and Educating), featured U.S. Attorney’s Office staff, Caddo Parish Sheriff’s Office staff and others discussing ways to reduce recidivism in our communities. The event started Wednesday with a roundtable discussion at the U.S. Courthouse on Fannin Street where U.S. Attorney Office staff, Caddo Parish Sheriff’s Office staff, public officials, law enforcement, attorneys, prison staff and others joined to talk about how to better assist those who reenter society after completing their prison terms. There were more than 15 agencies with 40-plus representatives present. They shared their successes as well as hardships with reentry. The hope is that offering more and improved tailor-made training, counseling, medical and mental treatment, and other assistance to those incarcerated will reduce the chances that prosecuted individuals will end up back in prison. The event also featured a tour of the Caddo Parish Work Release-Reentry Facility Thursday on Forum Drive so that visitors could see work already being conducted.
As part of the Obama Administration’s commitment to strengthening the criminal justice system, the Department of Justice designated April 24 to 30, 2016, as National Reentry Week. Each year more than 600,000 citizens return to neighborhoods after serving time in federal and state prisons. Another 11.4 million individuals cycle through local jails. Nearly one in three Americans of working age have had some sort of encounter with the criminal justice system — mostly for relatively minor, non-violent offenses and sometimes from decades in the past. The long-term impact of a criminal record prevents many people from obtaining employment, housing, higher education and credit — and these barriers affect returning individuals even if they have turned their lives around and are unlikely to reoffend.
The Department of Justice outlined principles in the “Roadmap to Reentry” through work with the Federal Interagency Reentry Council, which has been working since its creation five years ago to reduce recidivism and improve employment, education, housing, health and child welfare outcomes.
National Reentry Week events were planned in all 50 states, the District of Columbia, Puerto Rico and the Virgin Islands. United States Attorney’s Offices alone are hosting more than 200 events, and U.S. Bureau of Prisons facilities are holding more than 370 events.
For more information see the additional resources below:
President’s Weekly Address: REENTRY
National Reentry Week Webpage
REPORT: Roadmap to Reentry
INFOGRAPHIC: Roadmap to Reentry
FACT SHEET: BOP Reentry
FACT SHEET: Federal Interagency Reentry Council
FACT SHEET: Fair Chance Business Pledge
REPORT: CEA Report
U.S. Attorney's Office announces collection sites for DEA's National Prescription Drug Take-Back DayRead the Press Release
CHARLESTON, W.Va. – The United States Attorney’s Office for the Southern District of West Virginia announced today the location of collection sites for the Drug Enforcement Administration’s National Prescription Drug Take-Back Day. The event provides safe venues for West Virginians to responsibly dispose of prescription drugs. National Prescription Drug Take-Back Day is on Saturday, April 30, 2016, from 10:00 a.m. until 2:00 p.m. West Virginians will have the option of visiting several conveniently located sites that are equipped to properly dispose of prescription medication.
Collection site locations can be found at http://www.deadiversion.usdoj.gov/drug_disposal/takeback/index.html. This website can locate a nearby collection site and is searchable by zip code, county, city, and state. West Virginians have the option of visiting over 100 sites throughout the state to dispose of prescription drugs.
“We all know that drug abuse is one of the most significant issues facing our state,” said Acting United States Attorney Carol Casto. “One way that we can do our part is to properly dispose of potentially dangerous prescription medication. DEA’s National Prescription Drug Take-Back Day is an ideal time for West Virginians to get rid of unwanted, unused, and expired prescription drugs.”
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U.S. Attorney Paul J. Fishman, U.S. Senator Cory A. Booker to Deliver Remarks at Newark Prisoner Re-Entry Court GraduationRead the Press Release
NEWARK, N.J. – U.S. Attorney Paul J. Fishman and U.S. Senator Cory A. Booker will deliver remarks this afternoon at the third graduation hosted by the “ReNew” court, a partnership among the U.S. District Court, the U.S. Attorney’s Office, the Federal Public Defender’s Office, and the U.S. Probation Office designed to help ex-offenders recently released from federal custody successfully reintegrate into society.
The event being held in Newark at the Frank R. Lautenberg Post Office and Courthouse, Courtroom 1 at 3:00 p.m.
ReNew, which stands for “re-entry into Newark,” is New Jersey’s first federal re-entry court in New Jersey. It provides participants with close supervision and tangible support services including job placement and training, education, treatment, and counseling. It also gives participants access to a network of support services for housing, identification, driving privileges, child support, and other domestic, health or legal issues that affect successful re-entry into society.
ReNew holds annual graduations for program participants who have successfully completed 52 weeks of rigorous requirements. Since 2013, ReNew has hosted two graduations and will hold its third today. As of today, there are approximately 60 federal re-entry courts around the country.
“Equipping reentrants with the right tools and support during and after their incarceration can help break the cycle of recidivism that traps so many of their peers,” U.S. Attorney Fishman said. “Today, we celebrate the hard work and commitment of the graduates. We also recognize the tireless efforts of our federal partners whose passion and dedication continue to give those returning from federal prison a second chance. It’s inspiring work and I’m proud that my office is leading it.”
Today’s event comes at the end of National Reentry Week, a nationwide undertaking started by the Obama Administration and the Justice Department to raise awareness about the urgency of re-entry issues and highlight efforts to reduce recidivism and help formerly incarcerated individuals compete for jobs, attain stable housing, and support their families. As part of National Reentry Week, the U.S. Attorney's Office, District of New Jersey (USAO NJ), has hosted a number of events, including:
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April 21, 2016 – In collaboration with the U.S. District Court and U.S. Probation Office, USAO NJ hosted a resource and employment fair in Camden, New Jersey, that connected employers with ex-offenders who are looking for jobs.
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April 25, 2016 – U.S. Attorney Fishman, U.S. Chief of Probation Willie Torres, ReNew Graduate Amare Terrell, and U.S. Federal Judges Noel Hillman and Karen Williams participated in a stakeholder’s panel at FCI Fairton to discuss what to expect upon release from incarceration, available resources for ex-offenders, common missteps, best practices to ensure successful re-entry, and how families can provide support.
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April 26, 2016 – USAO NJ and housing specialists with the U.S. Department of Housing and Urban Development (HUD) gave a presentation at the New Jersey Chapter of the National Association of Housing & Redevelopment Officials to reinforce HUD and White House guidance on how arrests and convictions should be used when screening individuals for public housing eligibility.
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April 27, 2016 – In collaboration with the U.S. District Court, U.S. Probation, and Essex County College, USAO NJ hosted a re-entry technology seminar, for individuals whose terms of incarceration prevented them from developing computer and internet skills.
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April 29, 2016 – Earlier today, USAO NJ, in collaboration with New Ark Farms (an urban farm in Newark that primarily hires ex-offenders) the U.S. District Court, the Federal Public Defender’s Office, and the U.S. Probation Office hosted an employer breakfast to discuss available jobs for ex-offenders and ways that the ReNew team can alleviate any concerns about hiring them.
Each year, more than 600,000 citizens return to their neighborhoods after serving time in federal and state prisons. Nationally, two out of every three people released from state prisons are rearrested for a new offense and about half are re-incarcerated within three years. The long-term impact of a criminal record prevents many of these individuals from obtaining employment, housing, higher education, and credit – and these barriers affect returning individuals even if they are unlikely to reoffend.
The U.S. Attorneys’ Offices and Bureau of Prisons are hosting hundreds of events in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands, including job fairs and resource fairs, mock interview sessions, resume workshops, family engagement events. In addition, the Justice Department announced its “Roadmap to Reentry,” outlining five evidence-based principles of reform to be implemented by the Bureau of Prisons to ensure DOJ’s commitment to re-entry is incorporated throughout incarceration – from intake to release.
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Two Rosebud Men Charged with Aggravated Sexual AbuseRead the Press Release
United States Attorney Randolph J. Seiler announced that two Rosebud, South Dakota, men have been indicted by a federal grand jury for Aggravated Sexual Abuse and Sexual Abuse.
Arvin Brave Bird, age 47, and Michael Yellow Eyes, age 33, were indicted on April 13, 2016. Both men have appeared before U.S. Magistrate Judge Mark A. Moreno and pled not guilty to the Indictment.
The maximum penalty upon conviction is any term of years or life imprisonment and/or a $250,000 fine, a mandatory minimum of at least 5 years up to life of supervised release, $100 to the Federal Crime Victims Fund, and a mandatory $5,000 to the Domestic Trafficking Fund. Restitution may also be ordered.
It is alleged that on December 7, 2015, in Rosebud, Brave Bird and Yellow Eyes engaged in a sexual act with a victim by use of force, that the victim was physically incapable of declining participation, and that the two men did aid and abet each other in the commission of the crime.
The charge is merely an accusation and Brave Bird and Yellow Eyes are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribal Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Brave Bird and Yellow Eyes were remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been scheduled for June 21, 2016.
Two Head to Prison for Committing Murder on Federal LandRead the Press Release
HOUSTON – Two men have been sentenced to federal prison for 35 years after admitting they murdered a teenager in the Sam Houston National Forest in 2013, announced U.S. Attorney Kenneth Magidson. Cristian Alexander Zamora aka Christian Zamora, Alexander, Alex or Pollo and Ricardo Leonel Campos Lara aka La Muerte entered pleas of guilty April 17, 2015, to aiding and abetting each other and others with the murder of a 16-year-old male victim on Sept. 22, 2013.
Today, U.S. District Judge Ewing Werlein handed both Zamora and Lara 420-month sentences, each followed by five years of supervised release. They were further ordered to pay $13,092.42 in restitution. In handing down the sentence, Judge Werlein noted the “willful and deliberate crime.” He commented that the murder was particularly brutal and noted its the heinous, gruesome and savage nature.
Zamora, 24 and Lara, 20, both of El Salvador and resided in Huntsville and Houston, respectively, admitted they took part in the murder by striking the male victim with a baseball bat and a machete multiple times. Zamora and Lara admitted they had received an order from MS-13 members to kill the teenager. After receiving the order, they assisted in taking him to the forest where they then struck him with a bat and machete to the point of near decapitation.
They will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of an investigation by the FBI, Houston Police Department, Texas Rangers and the Walker County Sheriff’s Office. Deputy Chief Mark E. Donnelly and Assistant U.S. Attorney Casey MacDonald are prosecuting the case.
Two Florida Residents Charged in Jamaican Lottery SchemeRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the filing of a criminal complaint and arrests of Yanique Chantel Coach (25, Orlando) and Dwayne Breary (31, Ft. Lauderdale) for conspiracy to commit mail fraud. If convicted, each faces a maximum penalty of 20 years in federal prison.
According to the complaint, in October and November 2014, an 89-year-old woman in Virginia received phone calls from two individuals who claimed that she had won $3.5 million from the Mega Millions Sweepstakes. One of the callers said he was associated with the Mega Millions Sweepstakes and the other purported to be an attorney. The callers told the victim that her name had been entered into the lottery through a magazine subscription, but that she needed to pay fees and taxes before she could receive her winnings. From October 31, 2014, through November 25, 2014, the victim complied with the directions from the Mega Millions Sweepstakes callers and mailed $282,600 in cash to various locations in Florida and Georgia. She concealed the money in magazines and cereal boxes.
After the learning about the large withdrawals of money, the victim’s family contacted the FBI. On March 6, 2015, the victim was instructed by the callers to send $150,000 to an apartment in Orlando. On March 19, 2015, FBI agents conducted a controlled delivery of a UPS package, appearing to be from the victim, to the apartment. Agents had determined the apartment belonged to Coach. During surveillance, Breary signed for the package, using an alias, and accepted it. Agents then executed a search warrant and recovered the package from Coach’s bedroom.
Further investigation revealed that Coach and Breary had accepted the previously sent packages by signing a fake name. An individual from Jamaica then travelled to Florida to retrieve the cash. Coach and Breary were paid for their part in the scheme by that individual, who then returned to Jamaica with the victim’s money.
A criminal complaint is merely an allegation that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney James D. Mandolfo.
Two Elkins men plead guilty to participating in counterfeit money schemeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Robert R. Teter, 30, and Jonathan J. Ross, 30, both of Elkins, West Virginia, pled guilty in federal court in Clarksburg today to fraudulently using counterfeit money to obtain authentic currency and other goods, United States Attorney William J. Ihlenfeld, II, announced.
Teter and Ross repeatedly exchanged counterfeit money in order to obtain authentic United States currency, debit cards, and merchandise in Harrison County, West Virginia in late 2014.
Both men pled guilty today to one count of “Uttering Counterfeit Obligations or Securities – Aiding and Abetting.” They each face up to 20 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 Sarah Montoro prosecuted the case on behalf of the government. The United States Secret Service, the Clarksburg, West Virginia Police Department, and the West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi.
Two Arrested on Federal Charges of Stealing Mail from Hundreds of Mailboxes at Corona Apartment ComplexRead the Press Release
RIVERSIDE, California – Two Corona residents were arrested this morning by Postal Inspectors on federal conspiracy and mail theft-related offenses for a scheme that resulted in them using a counterfeit Postal Service key to access 300 mailboxes at a Corona apartment complex and steal mail. A third defendant is currently a fugitive being sought by federal authorities.
Today’s arrests are the result of federal grand jury indictment filed on Wednesday. The two taken into custody today are Bernie Martinez, 23, and Kammi Leigh Vestesen, 24. These defendants are expected to be arraigned on the three-count indictment this afternoon in United States District Court in Riverside.
The third defendant named in the indictment – Hector Mendez, 29, of Corona – is being sought by authorities.
According to the indictment, Martinez and Vestesen entered the mail room of the Sierra Del Oro apartment complex on April 10 and used a counterfeit Postal Service key to open resident mailboxes. All three defendants allegedly went to the same mailroom on April 12, used the counterfeit key to open mailboxes and left the premises with a trash bag full of mail.
The indictment specifically charges all three defendants will conspiracy, mail theft and possession of a counterfeit United States Postal Service key.
“Mail theft is becoming an increasing problem in our community,” said United States Attorney Eileen M. Decker. “This crime is frequently a precursor to identity theft, fraud, and drug crimes. Protecting the integrity of the postal system from this type of theft is therefore important to preventing an escalation of criminal activity.”
Postal Inspector in Charge Robert Wemyss said, “The United States Postal Inspection Service will continue to bring violators to justice to secure the integrity of the U.S. Mail. Protecting the ability to use the mail in a safe and secure manner is at the core of the Postal Inspection Service's mission.”
“Mail theft and other property crimes are a rising problem and trend in this region,” said Corona Police Department Chief of Police Michael Abel. “We take these matters seriously and truly appreciate the joint cooperation in this prosecution. It’s important that we hold suspects such as these accountable for their actions.”
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The charges of conspiracy and mail theft each carry a statutory maximum sentence of five years in federal prison. The charge of unlawful possession of counterfeit postal key carries a statutory maximum sentence of 10 years in prison.
This case was investigated by the United States Postal Inspection Service and the Corona Police Department.
Three Connecticut Residents Charged with Cashing More Than $300K in Stolen Postal Money OrdersRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned a 15-count indictment charging MARC ALEXANDER, 35, of Stratford and Oxford, RACHAEL ALEXANDER, also known as Rachael Vierling, 38, of Stratford and Oxford, and BERNARD HARRIS, 42, of Bridgeport, with participating in a stolen postal money order scheme. The indictment was returned on April 19, 2016, and was unsealed after the defendants were arrested on April 26.
As alleged in the indictment, after blank postal money orders were stolen from the U.S. Post Office in Old Greenwich, MARC ALEXANDER, RACHAEL ALEXANDER and others would imprint the postal money orders with various denominations using a computer font designed to make them appear to be authentic. MARC ALEXANDER, RACHAEL ALEXANDER, HARRIS and others then deposited the fraudulently imprinted postal money orders into numerous bank accounts, either at an ATM or at a teller window. Members of the conspiracy then withdrew and used the funds. At times, members of the conspiracy also used the fraudulently imprinted postal money orders to make payments to other individuals.
The loss in the case exceeds $300,000.
The indictment charges the defendants with one count of conspiracy to commit wire fraud and multiple counts of wire fraud. Each charge carries a maximum term of imprisonment of 20 years and a fine of up to $250,000.
MARC and RACHAEL ALEXANDER are detained and HARRIS is released on a $125,000 bond.
U.S. Attorney Daly stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by the Connecticut Financial Crimes Task Force¸ U.S. Postal Service Office of Inspector General, U.S. Postal Inspection Service, U.S. Secret Service, Federal Bureau of Investigation, Westport Police Department and Greenwich Police Department.
Individuals with information about this matter are encouraged to call the Connecticut Financial Crimes Task Force (203) 782-7333.
The case is being prosecuted by Assistant U.S. Attorney Ray Miller.
Saint Paul Man Pleads Guilty to Dealing Firearms Without a LicenseRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of EITAN BENJAMIN FELDMAN, 28, for illegally dealing in firearms without a license. The defendant pleaded guilty today before U.S. District Judge Patrick J. Schiltz in United States District Court in Minneapolis, Minn. A sentencing date has been set for August 30, 2016.
According to the defendant’s guilty plea, between January 2014 and January 2016, FELDMAN engaged in a regular pattern and practice of unlawfully dealing in firearms without a license by repeatedly purchasing firearms and offering them for resale within days of getting them. FELDMAN routinely purchased firearms offered by out-of-state Federal Firearms Licensees (FFLs) through websites such as gunbroker.com, an online firearms auction site. FELDMAN arranged to have the firearms transferred to L.E. Gun Sales, a FFL in Minnesota, where he received and took possession of the guns after completing and signing the appropriate documentation and submitting to a National Instant Criminal Background System (NICS) check.
According to the defendant’s guilty plea, during the same time period, FELDMAN regularly listed and offered the same firearms for sale – often at a higher price than what he paid – on armslist.com, a website that allows individuals to list firearms for sale. On average, FELDMAN made a potential $90 profit on each firearm he resold. Of the 41 guns FELDMAN purchased and re-sold during this time, the average time he actually possessed a gun before offering it for resale was only nine days.
In July 2015, an ATF Special Agent told FELDMAN that some of the firearms he had received at L.E. Gun Sales, and subsequently sold, had been linked to crime scenes within days of FELDMAN taking possession of and selling the guns.
On October 2, 2015, ATF Special Agents served FELDMAN with a written Warning Notice of Unlicensed Firearms Dealing in Violation of Federal Law, warning him that his continuous and repetitive firearm-related activity appears to make him an unlicensed “dealer in firearms” and that he should stop immediately or risk criminal prosecution. Despite the warning, FELDMAN continued his unlawful dealing in firearms on at least eight more occasions, including two sales of firearms to undercover federal agents. During those two sales, FELDMAN did not ask for any identification nor make an effort to determine whether the putative purchasers were prohibited by law from purchasing the firearms.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Minneapolis Police Department, the Saint Paul Police Department and the Bloomington Police Department.
Assistant U.S. Attorney Benjamin Bejar is prosecuting the case.
Defendant Information:EITAN BENJAMIN FELDMAN, 29
Saint Paul, Minn.Convicted:
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Willfully engaging in the business of dealing in firearms without a license, 1 count
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Ringleader of Bank Fraud and Identity Theft Scheme Sentenced to PrisonRead the Press Release
ALEXANDRIA, Va. – Dae Hyuck Ko, aka James Ko, aka Minghua Hong, 59, was sentenced today to 15 years in prison for conspiracy to commit bank fraud, bank fraud, and aggravated identity theft. Ko was also ordered to pay forfeiture and restitution in the amount of approximately $3 million.
Ko was convicted at trial on Jan. 13. According to court documents, Ko was the leader and organizer of a sophisticated bank fraud and identity theft scheme that targeted banks and individual victims throughout the nation. The victims, like Ko and the co-conspirators he recruited, were of Korean ethnicity. Ko directed his co-conspirators to open numerous checking accounts, credit accounts, and personal lines of credit using the stolen identities of these victims. Ko then directed the complicated movement of money between these accounts to build up a banking history, which ultimately enabled him to deposit bad checks and cash out those accounts before the checks failed to clear. Ko enforced his control of the conspiracy through violence when necessary, including by having one co-conspirator beaten and sent to the emergency room with a broken nose and fractured eye socket. Three of Ko’s co-conspirators—Jaejoon Song, Jungtaek Kim, and Minho Yang—have previously pleaded guilty in the case and have been sentenced to 66, 40, and 33 months, respectively.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Maria L. Kelokates, Inspector in Charge of the U.S. Postal Inspection Service, Washington Division, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorneys Grace L. Hill and Kosta S. Stojilkovic prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-109.
Reno Doctor and Eight Others Charged in Illegal Prescription Drug Distribution CaseRead the Press Release
RENO, Nev. – A local doctor and eight other Reno-area residents, including a number of employees of an automobile dealership, have been arrested and charged with being part of a conspiracy to unlawfully distribute highly addictive prescription drugs, including oxycodone, to persons who did not have a medical necessity for them, announced U.S. Attorney Daniel G. Bogden for the District of Nevada, DEA Assistant Special Agent in Charge Daniel Neill, and Nevada FBI Special Agent in Charge Laura A. Bucheit.
“Our U.S. Attorney’s Office is working aggressively with our federal, state and local law enforcement partners to attack the growing problem of prescription drug abuse,” said U.S. Attorney Bogden. “We have prioritized unlawful prescription drug distribution cases, and plan to shut down dangerous ‘pill mill’ operations that are contributing to what amounts to, in many instances, a deadly problem.”
Robert Gene Rand, 53, Richard Winston West II, aka Richie West, 40, Omar Ahsan Ahmad, 31, Joshua Ross Green, 34, Clint Mitchell Bloodworth, 40, Kathleen Griffin, 43, Alan Russel Martinez, 59, and Braden Kyle Riley, 40, all of Reno, and Ryan Daniel Smith, 40, of Carson City, are each charged in a criminal complaint with conspiracy to distribute and possess with intent to distribute controlled substances, such as oxycodone and illegal use of a communication facility. Rand and West are also charged with engaging in a continuing criminal enterprise with at least five other persons in which Rand and West occupied positions of management. Rand is also charged with distribution of a controlled substance resulting in death, and West is also charged with three separate counts of distribution of oxycodone.
Dr. Rand was arrested this morning in San Francisco, and the eight other defendants were arrested in the Reno area yesterday. Rand will appear before a U.S. Magistrate Judge in the immediate future. The other defendants are scheduled to appear before U.S. Magistrate Judge Valerie P. Cooke this afternoon at 3:00 p.m. at the Bruce R. Thompson Federal Courthouse in Reno.
“This investigation targeted a major distribution source of deadly and addictive prescription opioids being diverted to street sales across the region,” said DEA Assistant Special Agent in Charge Neill. “These arrests clearly demonstrate that DEA and our law enforcement partners are committed to stemming the tide of drugs being diverted to the black market, as well as stopping medical professionals who disregard their ethical obligations and abuse the public’s trust.”
“This investigation demonstrates the FBI’s resolve to aggressively pursue those who engage in the illegal distribution of prescription drugs within our community,” said FBI Special Agent in Charge Bucheit. “As a result of our alliance with law enforcement partners in Reno, a significant impact has been made on the illegal drug supply network in the area.”
Defendant Rand is a Nevada-licensed physician who operates Rand Family Care in Reno. Defendant West is the manager of the Jones-West Ford dealership. Defendants Ahmad, Griffin, Martinez, Bloodworth, and Riley are also employees of the dealership, and defendants Green and Smith are former employees of the dealership. According to the criminal complaint, Rand allegedly prescribes narcotics, such as oxycodone, without a legitimate medical purpose and outside the usual course of his professional practice. Beginning on about September 30, 2015, and continuing to about April 28, 2016, Rand allegedly issued prescriptions for substantial amounts of oxycodone to his co-defendants, who filled the prescriptions at local pharmacies and then illicitly distributed them. On September 30, 2015, the complaint alleges that Rand issued an unlawful prescription for oxycodone, resulting in the death of an individual.
In addition to the arrests, law enforcement agents executed federal search warrants at six locations, including two residences, two offices, and two vehicles connected to the defendants, and seized evidence related to the unlawful distribution of controlled substances, such as oxycodone.
According to the Centers for Disease Control and Prevention (CDC), almost two million Americans abused or were dependent on prescription opioids in 2014. Overdose deaths from opioids, including prescription opioids and heroin, have nearly quadrupled since 1999. Overdoses involving opioids killed more than 28,000 people in 2014, more than any year on record, and over one-half of those deaths were from prescription opioids. For information on opioid overdose and how you can manage pain without prescription drugs, go to http://www.cdc.gov/drugoverdose/opioids/index.html.
This case is being investigated by the Safe Streets Task Force in Reno, which includes the DEA, FBI, IRS Criminal Investigation, Reno Police Department, and Washoe County Sheriff’s Office. It is being prosecuted by Assistant U.S. Attorney James E. Keller.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Rapid City Business Owner Sentenced for Failing to Pay TaxesRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Willful Failure to Withhold and Pay Over Tax was sentenced on April 25, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Scott Sogge, age 62, was sentenced to 12 months of imprisonment, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund and $270,085.17 in restitution to the Internal Revenue Service.
Sogge was charged on November 16, 2015, and pleaded guilty on December 4, 2015. The conviction stems from Sogge, a local business owner, willfully failing to pay over taxes related to the employment of individuals receiving wages from his business between April 1 and June 20, 2011.
The investigation was conducted by the Internal Revenue Service Criminal Investigation Division, and the U.S. Department of Labor, Employee Benefits Security Administration. Assistant U.S. Attorney Gregg Peterman prosecuted the case.
Pennsylvania Man Sentenced to 95 Months in Prison for Robbing the Same Two Banks in 2015 That He Robbed in 2010Read the Press Release
CAMDEN, N.J. – A Pennsylvania man who was previously incarcerated for robbing a Citizens Bank in Philadelphia and a Cape Bank in Atlantic City, New Jersey, was sentenced today to 71 months in prison for robbing the same two banks after his release in April 2015; he was sentenced to an additional 24 months – to be served consecutively – for violation of supervised release, U.S. Attorney Paul J. Fishman announced.
Keith Ney, 54, formerly of Philadelphia, previously pleaded guilty before U.S. District Judge Reneé Marie Bumb to an information charging him with two counts of bank robbery and violating the conditions of his federal supervised release. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
In September 2011, Ney was convicted of robbing the Cape Bank at 1501 Pacific Avenue in Atlantic City and the Citizens Bank at 1234 Market Street in Philadelphia in 2010. He was later sentenced to 57 months in prison and a period of supervised release.
On April 22, 2015, Ney, who had recently finished his prison term and was on supervised release, entered the same Citizens Bank that he robbed in 2010 and approached the teller with a demand note stating that he had a gun. Ney took some cash and fled the bank.
Ney then took the bus to Atlantic City, where he entered the same Cape Bank that he robbed in 2010. Again, Ney approached the teller with a note stating that he had a gun and fled the bank with a small amount of cash. Afterwards, a bank employee exited the bank, approached an Atlantic City police officer who was working a traffic detail and told the officer that the bank had just been robbed. Ney was immediately spotted and taken into custody.
In addition to the prison time, Judge Bumb sentenced Ney to serve three years of supervised release and ordered restitution of $1,397.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Atlantic City Police Department under the direction of Chief Henry White; and the Philadelphia Police Department under with the direction of Commissioner Richard Ross Jr. with the investigation leading to today’s sentencing. He also thanked the U.S. Probation Office, under the direction of Chief Probation Officer Wilfredo Torres, for its assistance with this case.
The government is represented by Assistant U.S. Attorney Matthew J. Skahill of the U.S. Attorney's Office in Camden.
Defense counsel: Edward F. Borden Jr. Esq., Cherry Hill, New Jersey
Pennsylvania Lobbyist Charged with Wire FraudRead the Press Release
HARRISBURG - The United States Attorney's Office for the Middle District of Pennsylvania announced today that a lobbyist has been charged with wire fraud.
According to the United States Attorney’s Office, John H. Estey, age 53, of Ardmore, was charged with wire fraud in a Criminal Information filed in U.S. District Court in Harrisburg.
The Information charges that the Federal Bureau of Investigation (FBI) conducted an undercover investigation of lobbying in the Pennsylvania General Assembly. In that investigation, the FBI created an undercover business and hired Estey as a lobbyist to influence passage of certain legislation beneficial to the undercover business. In 2011, as a part of that investigation, Estey agreed to secretly pay $20,000 in campaign contributions to members of the Pennsylvania General Assembly in connection with this legislation. When he was paid funds, Estey only passed through $7,000 in campaign contributions while secretly keeping $13,000.
The government also filed a plea agreement with Mr. Estey which is subject to approval of the court. A date for his initial appearance has not been set.
First Assistant U.S. Attorney Dennis C. Pfannenschmidt was designated United States Attorney for this case because United States Attorney Peter J. Smith recused himself.
The case was investigated by the FBI, the Pennsylvania State Police, and the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorneys Michael A. Consiglio, Christy Fawcett, and William S. Houser.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 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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Owners of Boston-Area Fried Chicken Restaurant Charged in Tax Fraud SchemeRead the Press Release
BOSTON – Three men who operated two Boston-area fried chicken restaurants have been charged with conspiring to file false tax returns as part of a long-running scheme to avoid paying payroll and income taxes.
Hazrat Khan, 56, of Middletown, NY, and Khurshed Iqbal, 56, whose whereabouts are unknown, were charged in an indictment unsealed today with one count of conspiracy to defraud the United States and 13 counts of willful failure to account for and pay taxes. Adalat Khan, 46, of Chelsea, Mass., was charged in an Information with one count of conspiracy and two counts of making and subscribing false tax returns.
According to court documents, the defendants used a variety of means to avoid paying payroll and income taxes owed by their restaurant, Crown Fried Chicken, which has locations on Warren Street in Boston and Broadway in Chelsea. As part of the conspiracy, Adalat Khan managed both restaurants and Hazrat Khan and Iqbal took steps to conceal their ownership interests. Adalat Khan, at the direction of Hazrat Khan and Iqbal, allegedly provided tax preparers with false information about the restaurants’ payroll and income. Federal law requires that employers withhold payroll taxes and pay it to the IRS. As part of the scheme, the defendants falsely reported the number of employees, some of whom were undocumented workers, and wages paid to the IRS. They also allegedly paid employees under the table and filed income tax returns that falsely described their sales, total income, compensation of officers, salaries and wages, and taxable income.
The charge of conspiracy provides for a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000 and restitution. The charge of failure to account for a pay taxes provides for a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, the costs of prosecution and restitution. The charge of subscribing a false tax return provides for a sentence of no greater than three years in prison, one year of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, the costs of prosecution and restitution. Actual sentences for federal crimes are typically less than maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Evans, made the announcement today. The case was investigated with the cooperation of the Massachusetts Insurance Fraud Bureau. The case is being prosecuted by Assistant U.S. Attorneys John A. Capin and Eric P. Christofferson of Ortiz’s Criminal Division.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
New Orleans Woman Sentenced for Misprision of a FelonyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that BRIDGET MARIE MILES, age 47, of New Orleans, was sentenced yesterday after previously pleading guilty to a one-count Superseding Bill of Information for Misprision of a Felony, Hobbs Act robbery.
U.S. District Judge Carl J. Barbier sentenced MILES to serve 21 months in prison, to be followed by one year of supervised release.
According to court documents, MILES conspired with and gave information to members of a local New Orleans gang led by GREGORY DENSON. DENSON used the information provided by MILES to commit home invasion robberies of drug dealers in an effort to make money and/or obtain illegal drugs for later retail sale. Members of this gang also conspired to use, possess and discharge firearms to further their drug trafficking activity, and commit acts of violence against other drug dealers to obtain drugs and drug proceeds.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the New Orleans Police Department led Multi-Agency Gang Unit in investigating this matter. Assistant U.S. Attorneys Michael M. Simpson and Michael E. McMahon were in charge of the prosecution.
New Orleans Man Pleads Guilty to Robbing Metro Drug Dealers, Weapons OffensesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CLARENCE R. SINGLETON, age 30, of New Orleans, pled guilty yesterday to conspiracy to commit Hobbs Act Robbery and use of firearms in furtherance of drug trafficking crimes.
The maximum penalty for conspiracy to Hobbs Act Robbery is 20 years imprisonment, to be followed by 3 years of supervised release, and a $250,000 fine. The maximum penalty for the use of firearms in furtherance of drug trafficking crimes is 20 years imprisonment, followed by 3 years of supervised release and a $250,000 fine. U.S. District Judge Carl J. Barbier set sentencing for August 4, 2016.
According to court documents, SINGLETON participated in home invasion robberies of drug dealers in an effort to make money and/or obtain illegal drugs for later retail sale. They also conspired to use, possess and discharge firearms to further their drug trafficking activity, and crimes of violence during the robberies of these drug dealers to obtain drugs and drug proceeds.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the New Orleans Police Department led Multi-Agency Gang Unit in investigating this matter. Assistant United States Attorneys Michael M. Simpson and Michael E. McMahon are in charge of the prosecution.
New Orleans Businessman Charged with Defrauding InvestorsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOHN F. KELLY III, age 57, of Metairie, was charged today in a one-count Bill of Information with wire fraud.
According to court documents, from 2011 through 2014, KELLY operated a tax sale investment business with investor monies. During this time period, KELLY defrauded his investors by diverting their investment funds for his personal use and benefit. As part of the scheme to defraud, KELLY used investor monies to pay off personal loans and to purchase real estate properties in New Orleans that he titled in separate corporate entities he controlled.
The maximum penalty for wire fraud is twenty years imprisonment and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim. The maximum penalty for failing to pay over taxes is five years imprisonment and/or a fine of $250,000.
U.S. Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigations Division, in investigating this matter. Assistant United States Attorneys, Richard R. Pickens, II, Andre J. Lagarde, and Hayden M. Brockett are in charge of the prosecution.
Nevada U.S. Attorney’s Office Participates in Federal Prison Events as Part of National Reentry WeekRead the Press Release
LAS VEGAS, Nev. – On April 28, 2016, U.S. Attorney Daniel G. Bogden and Assistant U.S. Attorney Sue Fahami, visited the Federal Correctional Institution in Herlong, Calif. (FCI Herlong) as part of the Department of Justice’s first-ever National Reentry Week, which included events nationwide to assist incarcerated Americans who are preparing to leave prison. National events included job fairs, reentry court graduations, legal service clinics, family events and community resource open houses.
U.S. Attorney Bogden and Assistant U.S. Attorney Fahami were part of a coalition of representatives from two federal judicial districts who presented information to the inmates on various reentry programs that are being offered to inmates who are returning to the community. The team included U.S. Magistrate Judge Valerie P. Cooke of the District of Nevada, as well as U.S. Probation Officers, Assistant Federal Defenders, and residential reentry center representatives. The team was assisted by FCI Herlong management and staff, including Warden Felicia Ponce, and Associate Wardens Ganson McManus and Israel Jacquez.
During this visit to FCI Herlong, as well as another visit that occurred on March 15, the reentry team conducted panel discussions with Residential Drug Abuse Program (RDAP) participants and general population inmates who were sentenced in U.S. District Courts in Nevada and Eastern California. Approximately 10 staff and 130 inmates attended the panel discussions where the reentry team lectured and responded to inmate questions. The main topic of discussion was the criteria for and expectations of participants in the Court Led Efforts at Recovery (CLEAR Court) programs. The District of Nevada has had a CLEAR Court program for approximately five years. These programs are voluntary and are monitored by a federal judge, federal probation, the U.S. Attorney’s Office, the Federal Public Defender’s Office and a residential reentry center (RRC) clinician.
During their discussion they informed the inmates of the intensive oversight while participating in the CLEAR Court program and that it also offered the returning offenders access to additional resources, a new view of authority figures, and an opportunity to earn up to one year off of their supervised release. After the panel discussions with the inmates concluded, a tour of the institution program areas was provided to allow the reentry team members an opportunity to meet institutional staff, learn about the various departments’ roles and programs that are offered to inmates to assist them with the skills necessary to have a successful reintegration back to the community.
Each year, more than 600,000 citizens return to our neighborhoods after serving time in federal and state prisons. Another 11.4 million individuals cycle through local jails. And nearly one in three Americans of working age have had some sort of encounter with the criminal justice system — mostly for relatively minor, non-violent offenses, and sometimes from decades in the past. The long-term impact of a criminal record prevents many people from obtaining employment, housing, higher education, and credit — and these barriers affect returning individuals even if they have turned their lives around and are unlikely to reoffend.
Visit the following link for additional information on National Reentry Week and reentry programs, https://www.justice.gov/opa/pr/fact-sheet-during-national-reentry-week-reducing-barriers-reentry-and-employment-formerly.
National Prescription Take-Back Day Safely Removes Unused Medications from Local HomesRead the Press Release
TALLAHASSEE, FLORIDA – Tomorrow, Northern Florida residents can join citizens across the nation in safely and anonymously disposing of their unused, unneeded, or expired prescription medications, announced United States Attorney Christopher P. Canova.
In partnership with the United States Drug Enforcement Administration (DEA) and other federal, state, and local law enforcement agencies, the United States Attorney’s Office invites Northern Floridians to bring their potentially dangerous, unwanted medicines to one of more than 5,000 collection sites around the country. This service is free of charge, with no questions asked.
Approximately 22 drop-off locations are available from Pensacola to Jacksonville. To find a nearby collection site, visit www.dea.gov, click on the “Got Drugs?” icon, and enter a nearby zip code into the search window. Residents can also call 800-882-9539. Only pills and other solids, such as patches, will be accepted. Do not bring liquids, needles, or other sharp objects to take-back sites.
America is currently experiencing an epidemic of addiction, overdose, and death due to prescription drug abuse, particularly opioid painkillers. Consumers may be uncertain of the proper disposal method and may flush drugs down the toilet or throw them away, causing safety or environmental hazards. Many people are unaware that medicines left in storage are highly susceptible to diversion, misuse, abuse, and theft. Take-Back Day is also a great opportunity to educate children on the dangers of obtaining pharmaceuticals for illicit use.
For more information about properly disposing of unused medicines, visit the United States Food and Drug Administration website.
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 available 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]Money Courier Sentenced for Money LaunderingRead the Press Release
LAREDO, Texas – The second of 20 defendants convicted in a marijuana trafficking and money laundering conspiracy has been ordered to prison, announced U.S. Attorney Kenneth Magidson. Erika Alvarez, 39, of Nuevo Laredo, Mexico, previously pleaded guilty for her role in the money laundering.
Today, U.S. District Judge George P. Kazen ordered she serve a term of 48 months in prison to be followed by three years of supervised release. The court further issued a final order of forfeiture in the amount of $171,240.
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.
Alvarez was identified as Trejo-Nava’s niece. Her role was that of a money courier who travelled periodically to the Dallas area to pick up drug proceeds and transport them in bulk to Laredo. She then delivered the drug proceeds to Trejo Nava who then had the proceeds transported to Mexico.
Between Oct. 6-7, 2011, Trejo-Nava arranged for the transportation of $48,000 in drug proceeds from the Dallas area to Nuevo Laredo. Alvarez drove to the Dallas area in a personal vehicle and picked up the currency from a co-conspirator. She then transported the drug proceeds to Laredo and delivered the bulk cash to Trejo-Nava who arranged for another co-conspirator to transport it to Mexico. On May 28, 2012, Trejo-Nava again sent Alvarez to Dallas for the purpose of receiving drug money. The next day, she received $73,240 in drug proceeds from a Dallas area co-conspirator for transportation to Laredo. En route south, law enforcement performed a traffic stop of Alvarez and recovered four bundles of bulk cash drug proceeds totaling $73,240. She was also stopped on a third trip, during which time she was found to be in possession of several bundles of money hidden in her pants totaling $50,000 in drug proceeds.
A total of 20 defendants have been convicted for their respective roles in the overall conspiracy. A federal jury convicted Rafael Ortega aka Tio, 57, of Laredo, and Baltazar Ibarra Cardona, 55, of Nuevo Laredo in the case. Ortega was ordered to serve 120 months in federal prison, while Cardona is awaiting sentencing.
The remaining 17 defendants had previously pleaded guilty and are also awaiting sentencing. Erasmo 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.
Michigan man pleads guilty to selling prescription painkillersRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jeremy Colby Vickerson, 27, of Canton, Michigan, pled guilty in federal court in Clarksburg today to oxycodone trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Vickerson sold oxycodone in July 2015 near a video arcade facility in Harrison County, West Virginia. He pled guilty today to one count of “Distribution of Oxycodone within 100 feet of a Video Arcade Facility.” He faces between one and forty years in prison and a fine of up to $4,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn Adkins prosecuted the case on behalf of the government. The Harrison County Sheriff’s Department Street Crimes and Drug Unit and the Lewis County Sheriff’s Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Member of Large-Scale ATM Skimming Scheme Admits Role in Bank Fraud ConspiracyRead the Press Release
NEWARK, N.J. – A native of Romania who was arrested in Spain and extradited to the United States admitted today to participating in a large-scale, long-running scheme to steal bank customer account information, commonly referred to as “ATM skimming,” by installing secret card-reading devices and pinhole cameras on ATMs throughout New Jersey, New York, Connecticut, Florida, and elsewhere, U.S. Attorney Paul J. Fishman announced.
Robert Mate, a/k/a “Chioru,” a/k/a “Marcel Varga,” 29, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to Count One of a six-count indictment, which charged him with conspiracy to commit bank fraud. Of the other two individuals charged on the indictment, Alin Dumitru Carabus was apprehended in Spain and extradited to the United States, and his case is pending, and Ionut Vasile Ciurba-Stana remains at large.
According to documents filed in this case and other cases and statements made in court:
Mate participated as a high-level member of an extensive scheme to steal bank customer account information, commonly referred to as “ATM skimming,” by installing secret card-reading devices on ATMs throughout New Jersey, New York, Connecticut, Florida, and elsewhere. The scheme was organized by Marius Vintila, 33, who previously pleaded guilty to bank fraud conspiracy and aggravated identity theft charges. The scheme defrauded Citibank, TD Bank, Wells Fargo, and multiple other financial institutions out of at least $5 million and affected thousands of bank customers. Vintila and Bogdan Radu designed and constructed sophisticated card-reader devices and pinhole camera panels capable of reading and storing customers’ bank account information and personal identification numbers. Mate and others then secretly installed the card-reader devices and the pinhole camera panels onto bank ATMs, and removed them a few days later after they had recorded customer bank account information as customers performed routine bank transactions at ATMs. After the account information was stolen, the stolen data was used to create thousands of false and fraudulent ATM cards, which Mate and others used to withdraw millions of dollars from customers’ bank accounts.
The ATM skimming operation in which Mate participated is one of the largest ever uncovered by law enforcement. To date, 16 individuals have been charged in connection with this scheme; 13 have pleaded guilty, and one – Dinu Horvat – was convicted after a week-long trial.
The count of conspiracy to commit bank fraud to which Mate pleaded guilty is punishable by up to 30 years in prison and a $1 million fine. Sentencing is scheduled for Sept. 8, 2016.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, Newark Field Office, under the direction of Acting Special Agent in Charge Kenneth Pleasant, along with special agents of Immigration and Customs Enforcement, Homeland Security Investigations (HSI) in Newark, under the direction of Special Agent in Charge Terence S. Opiola, with the investigation leading to the above-referenced charges and pleas.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal and David M. Eskew of the office’s Criminal Division.
Defense Counsel: Angelo Servidio Esq., Nutley, New Jersey
Manhattan U.S. Attorney Announces Arrest of Black Market Distributor of Diverted HIV Medications Worth Approximately $4 MillionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Russell Hermann, Acting Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office (“FDA-OCI”), announced that ROBIN DELEONROSA, a/k/a “Magic,” a/k/a “Robin Deleon Rosa,” a/k/a “Robin Rosa,” was arrested today for his role in a nationwide black market that distributed millions of dollars’ worth of fraudulently obtained HIV prescription drugs to unsuspecting consumers. DELEONROSA personally obtained and sold more than $1.9 million worth of second-hand HIV prescription drugs. In addition, a search earlier today of DELEONROSA’s residence in the Bronx resulted in the seizure of over 1,000 bottles of second-hand HIV prescription pills, with an estimated value of $1.8 million, as well as lighter fluid that was used to remove labels from the pill bottles, and over $70,000 in United States currency. DELEONROSA will be presented later today in Manhattan federal court before Magistrate Judge Frank Maas.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Robin Deleonrosa served as a middle-man in a black market scheme to illegally re-sell potentially dangerous or ineffective second-hand HIV medications to unsuspecting patients and pharmacies. As a result of his alleged participation in this scheme, Deleonrosa endangered the health of unsuspecting patients needing these drugs, and defrauded Medicaid of more than an estimated $1.9 million.”
FDA-OCI Acting Special Agent in Charge Russell Hermann said: “When prescription medications are diverted from the legal supply chain, there is no longer any assurance that the medicines are safe and effective. Our office will pursue and bring to justice individuals who endanger the public’s health in this manner.”
According to the Complaint unsealed today in Manhattan federal court[1]:
From at least in or about September 2013 until April 2016, DELEONROSA was part of a black market distribution network that distributed bulk quantities of second-hand HIV prescription drugs to unsuspecting consumers. In particular, the members of the black market distribution ring would initially obtain the HIV prescription drugs by purchasing these drugs from patients to whom these medications were originally prescribed. The prescription HIV bottles were then collected and the labels (containing the patients’ names) were removed using dangerous substances, including lighter fluid and other potentially hazardous chemicals. Through this process, the members of the black market distribution network made the bottles appear new in order to conceal the fact that the bottles had previously been dispensed to patients. This process allowed the bottles eventually to be re-sold to pharmacies and unsuspecting consumers. Consumers who eventually received these second-hand prescription HIV medications were not aware that the prescription bottles had been previously sold, treated with potentially hazardous chemicals, and possibly not stored under conditions sufficient to maintain their medical efficacy.
In addition to placing consumers at significant risk, Medicaid and other health insurers were defrauded in multiple ways by DELEONROSA’s scheme. On the front end, health care benefit enrollees, including Medicaid recipients who participated in this scheme, filled their prescriptions for little or no cost with the intention of selling the drugs into the underground black market rather than taking the drugs as prescribed to treat their illnesses. Because health benefits, such as HIV prescription drugs, are for the sole use of the insured, Medicaid and other health care benefit plans would not have paid for such drugs if the beneficiaries had disclosed their intent to sell the medications rather than take them as prescribed. On the back end, Medicaid was further defrauded by reimbursing pharmacies for the cost of prescription HIV drugs as if the drugs were new and obtained from a legitimate stream of commerce, when, in truth and in fact, the drugs were second-hand and came from the black market. Accordingly, as result of this scheme, health care benefit plans, including Medicaid, were defrauded multiple times by paying for the same drugs twice.
As is detailed in the Complaint, DELEONROSA served as a middleman in this scheme – selling hundreds of second-hand prescription HIV medication bottles to a cooperating source (“CS”) on multiple occasions, with a total estimated Medicaid reimbursement value of more than $1.9 million. DELEONROSA stored these second-hand prescription HIV medication bottles in his residence in the Bronx, and provided the bottles to the CS in suitcases and a duffel bag. Many of the HIV prescription bottles that DELEONROSA sold still bore the labels of the patients to whom the drugs were originally dispensed. In 2014, DELEONROSA also provided the CS with second-hand HIV prescription medication bottles that were to be delivered to addresses in California, but which were intercepted by Federal Express due to the suspicious nature of the packages.
* * *
DELEONROSA, 48, of the Bronx, is charged with one count of conspiracy to commit health care fraud, which carries a maximum potential sentence of 10 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Preet Bharara praised the outstanding work of the FDA’s Office of Criminal Investigations.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Noah Solowiejczyk and Patrick Egan are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Manderson Man Sentenced for Abusive Sexual Contact by Force of a ChildRead the Press Release
United States Attorney Randolph J. Seiler announced that a Manderson, South Dakota, man convicted of Abusive Sexual Contact by Force of a Child was sentenced on April 25, 2016, by U.S. District Judge Roberto A. Lange.
Leonard Rondeau, age 40, was sentenced to 15 years in custody, followed by 3 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Rondeau was indicted by a federal grand jury on February 11, 2015. He pled guilty on February 2, 2016.
The conviction stemmed from incidents between April 11, 2003, and October 31, 2004, when Rondeau, who was babysitting a child between the ages of 4 and 5 and whose mother was at work, knowingly engaged in multiple sexual contacts by force with the child.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Jay Miller prosecuted the case.
Rondeau was immediately turned over to the custody of the U.S. Marshals Service.
Man Pleads Guilty to Lying and Concealment in Connection with the Mother Emanuel AME Church ShootingRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles announced today that Joseph Carlton Meek, 21, of Lexington, South Carolina, plead guilty to an Indictment charging him with Misprision of a Felony (in violation of 18 U.S.C. §4) and Making a False Statement (in violation of 18 U.S.C. §1001). Meek entered the guilty plea as a result of his actions following the June 17, 2015, attack on parishioners of the Emanuel African Methodist Episcopal Church in Charleston. Meek faces a maximum of three years on the Misprision count and five years on the False-Statement count. United States District Judge Richard Gergel presided over the hearing and will sentence Meek at a later date.
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This guilty plea is the result of an investigation conducted by the Federal Bureau of Investigation, City of Charleston Police Department, and South Carolina Law Enforcement Division. Assistant United States Attorneys Jay N. Richardson and Nathan Williams are prosecuting the case.Man Pleads Guilty to Lying and Concealment in Connection with the Mother Emanuel AME Church ShootingRead the Press Release
U.S. Attorney Bill Nettles of the District of South Carolina announced today that Joseph Carlton Meek, 21, of Lexington, South Carolina, pleaded guilty to an indictment charging him with misprision of a felony and making a false statement. Meek entered the guilty plea as a result of his actions following the June 17, 2015, attack on parishioners of the Emanuel African Methodist Episcopal Church in Charleston. Meek faces a maximum of three years on the misprision count and five years on the false-statement count. U.S. District Judge Richard Gergel of the District of South Carolina presided over the hearing and will sentence Meek at a later date.
This guilty plea is the result of an investigation conducted by the FBI, Charleston Police Department and South Carolina Law Enforcement Division. Assistant U.S. Attorneys Jay N. Richardson and Nathan Williams of the District of South Carolina are prosecuting the case.
MEDIA ADVISORY-- New Mexico Hope Initiative Partners to Discuss Impact of DEA’s National Take Back Initiative on New Mexico’s Opioid EpidemicRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez, Bernalillo County Commissioner Maggie Hart Stebbins, City Councilor Diane Gibson, and Ryan P. Cangiolosi, Chief Strategic Advisor for UNM’s Health Sciences Center, will join DEA Assistant Special Agent in Charge Sean R. Waite at 12:00 p.m. (noon) on Saturday, April 30, 2016, at a DEA Drug Take Back collection site in Albuquerque, N.M., to discuss the impact of DEA’s National Take Back Initiative on New Mexico’s opioid epidemic. This media opportunity is part of the prevention and education component of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative.
WHO:
U.S. Attorney Damon P. Martinez
Asst. Special Agent in Charge Sean R. Waite, DEA Albuquerque District Office
Bernalillo County Commissioner Maggie Hart Stebbins, District 3
City Councilor Diane Gibson, District 7
Ryan P. Cangiolosi, Chief Strategic Advisor, Office of Strategy and Engagement at the UNM Health Sciences Center
WHEN:
SATURDAY, APRIL 30, 2016
12:00 p.m., noon
WHERE:
DEA Drug Take Back Collection Site
Walgreens
8400 Montgomery NE
Albuquerque, NM 87111
OPEN PRESS
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic that has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with Bernalillo County, DEA, Healing Addiction in our Community (HAC) and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico. The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Latin King Nicholas Baez Charged with Murder During Narcotics ConspiracyRead the Press Release
HAMMOND- United States Attorney David A. Capp announced today that a criminal complaint was filed against Nicholas Baez, a/k/a “Cali”, 22, of Hammond, Indiana for causing the death of another through the use of a firearm in connection with a narcotics conspiracy.
According to documents filed in the case, Baez is an alleged to be a member of the Latin Kings who fired 5 rounds into Estrella’s bar, killing one of the patrons. It is alleged that the shooting occurred in response to rival gang members previously being seen in the bar and to prevent rival gangs from encroaching on Latin Kings territory.
This complaint is part of the ongoing efforts to curb the activities of violent street gangs in the Northern District of Indiana.
This case is the result of the investigative efforts of the Federal Bureau of Investigation’s Gang Response Investigative Team, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the East Chicago Police Department, the Hammond Police Department, the Lake County, Indiana, Sheriff’s Department, and Lake County High Intensity Drug Trafficking Area officers and agents. The case is being prosecuted by Assistant United States Attorneys David Nozick and Dean Lanter.
The United States Attorney's Office emphasized that a Complaint is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
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Lake Worth Resident Charged with Distribution of Fentanyl Resulting in DeathRead the Press Release
A Lake Worth resident is charged with distributing fentanyl, a controlled substance that was ingested and caused the death of another individual.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, United States Drug Enforcement Administration (DEA), Miami Field Division, Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO) and Bryan Kummerlen, Chief, West Palm Beach Police Department (WPBPD), made the announcement.
Christopher Sharod Massena, 24, of Palm Beach County was indicted on one count of distribution of fentanyl resulting in death, four counts of distribution of heroin, and one count of possession with intent to distribute heroin. This morning, Massena was ordered held without bond following a pre-trial detention hearing. If convicted of the narcotics distribution resulting in death, Massena faces a mandatory minimum sentence of 20 years to life in prison, to be followed by supervised release and a potential fine of up to $1 million dollars. If convicted of the additional charges, Massena faces a maximum statutory term of 20 years’ imprisonment, to be followed by supervised release and a potential fine of up to $1 million dollars.
“Fentanyl is another dangerous face of the illegal narcotics trade,” stated U.S. Attorney Wifredo Ferrer. “It is a controlled substance that is up to 100 times stronger than morphine and can be lethal, even in very small doses. As a community, we must be vigilant and educate ourselves and others regarding the dangers associated with all drug abuse.”
“The DEA takes the illegal distribution of any illegal drug very seriously,” said DEA Special Agent in Charge A.D. Wright. “The recent spike in opiate sales which are resulting in deaths only heightens our commitment to continue our fight. The DEA is working very closely with our law enforcement partners in Palm Beach County and the United States Attorney’s Office to fully investigate and prosecute illicit drug trafficking activities to ensure that those responsible are held accountable for the consequences of their actions, especially when the sales result in the tragic death of another individual.”
According to the court record, on February 18, 2016, Massena distributed fentanyl, a Schedule II controlled substance, to a twenty-three year old man who died of acute fentanyl toxicity shortly after ingesting the substance. Thereafter, on four separate occasions, Massena distributed controlled substances, to wit, heroin and heroin mixed with fentanyl, to an undercover police officer. On April 21, 2016, Massena possessed heroin with the intent to distribute the narcotic.
Mr. Ferrer commended the investigative efforts of the DEA, PBSO, and WPBPD. Mr. Ferrer also thanked the Federal Bureau of Investigation for their assistance. This case is being prosecuted by Assistant U.S. Attorney Jennifer C. Nucci.
An indictment is merely an allegation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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
Kissimmee Resident Convicted at Trial of Wire FraudRead the Press Release
On April 27, 2016, a Miami jury found a Kissimmee, Florida resident guilty of wire fraud.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Michael John Alcocer Roa, 34, of Kissimmee, Florida, was convicted at trial of five counts of wire fraud, in violation of Title 18, United States Code, Section 1343. Alcocer faces a maximum statutory sentence of 100 years in prison. Alcocer is scheduled to be sentenced by U.S. District Court Senior Judge Patricia A. Seitz on July 12, 2016.
According to the court record, including testimony and evidence presented at trial, Alcocer set up a Florida corporation called Inovatrade Inc. (“Inovatrade”) in October 2008. Between 2008 and 2011, Alcocer told people that they could trade foreign currencies at Inovatrade, set up managed accounts in which others could trade foreign currencies on their behalf, or earn guaranteed interest payments of approximately 15% per year or greater. Alcocer also represented that Inovatrade maintained all of its clients’ accounts segregated, safeguarded, and protected in a trust account.
Evidence at trial showed that based on those and other representations, approximately 300 individuals and entities sent Inovatrade over $7 million. Many of those individuals and entities received documents from Inovatrade purporting to show their account balances, as well as trading activity in their accounts or monthly interest and other promotional payments earned. But when individuals requested to withdraw their money from Inovatrade, many were unable to do so. Alcocer and Inovatrade provided various, and often inconsistent, excuses, and after some time, many of the individuals and entities received no more communications, nor did they receive their money.
Financial summaries of bank records associated with Inovatrade and Alcocer introduced at trial showed that little to no actual trading took place in the Inovatrade accounts, the vast majority of the money that entered the Inovatrade accounts came from individuals and entities rather than from business revenue, and Alcocer cashed out and transferred millions of dollars of that money from the Inovatrade accounts to personal accounts in the United States and in Panama.
Mr. Ferrer commends the investigative efforts of the FBI. The case was prosecuted by Assistant U.S. Attorneys John P. Gonsoulin and Vanessa S. 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.
Joliet Man Charged with Arson for Allegedly Setting Fire to His Employer’s Warehouse in WoodridgeRead the Press Release
CHICAGO — A Joliet man was charged with arson today for allegedly causing a fire that destroyed his employer’s furniture distribution center in west suburban Woodridge.
RUBEN ANTONIO OCHOA CRUZ, a high lift operator in the warehouse, used a Bic lighter to spark the fire on April 21, 2016, according to a criminal complaint filed in U.S. District Court in Chicago. He set the fire after meeting with his supervisors regarding an issue with his attendance at work, according to the complaint. Approximately 65 employees were working at the warehouse at the time of the fire, and all of them escaped safely.
The complaint charges Cruz, 20, with one count of arson. He made an initial appearance today before U.S. Magistrate Judge Maria Valdez and was ordered held in federal custody. A detention hearing was scheduled for May 4, 2016, at 11:00 a.m.
According to the complaint, firefighters from approximately 30 departments worked for seven hours to extinguish the blaze, which caused millions of dollars in damage. The distribution center was burned to the ground, the complaint states. No firefighters were injured.
The arson charge carries a minimum sentence of five years in prison and a maximum sentence of 20 years.
The complaint was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Jeffery Magee, Special Agent in Charge of the Chicago Field Division of ATF. The officials praised the bravery of the firefighters who worked tirelessly to extinguish the blaze.
The Woodridge Police Department, Lemont Police Department and the Office of the Illinois State Fire Marshal provided substantial assistance in the investigation.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Misty Wright.
International Competition Network Marks its 15th Annual Conference Promoting International Convergence and CooperationRead the Press Release
Showcases Work on Merger Remedies, Unilateral Conduct and Agency Assessment
At its annual meeting, the International Competition Network (ICN) approved new work on crafting remedies in merger review, agency assessment and performance measurement, cartel investigative powers, market studies, competition agency ethics programs, and advocacy to the business community, the Justice Department’s Antitrust Division announced today. The ICN also presented the outcome of a network-wide assessment to guide its operations, agenda and future work plans, known as its “Second Decade initiative.”
The ICN held its 15th annual conference, hosted by the Competition Commission of Singapore (CCS), on April 26-29, 2016. More than 500 delegates from more than 75 jurisdictions participated, including competition experts from international organizations and the legal, business, consumer and academic communities. Principal Deputy Assistant Attorney General Renata Hesse of the Department of Justice’s Antitrust Division and Federal Trade Commission Chairwoman Edith Ramirez led the U.S. delegation. The conference showcased the achievements of ICN working groups on unilateral conduct, agency effectiveness, mergers, cartels and competition advocacy.
Principal Deputy Assistant Attorney General Hesse moderated a panel on monopolization and the global economy. The panel was part of the Unilateral Conduct Working Group’s on-going project on the analytical framework for single firm conduct enforcement, exploring various perspectives to inform and articulate common principles of sound competition analysis. The Unilateral Conduct Working Group, co-chaired by the Justice Department, promotes convergence and sound enforcement of laws and policies applicable to conduct by firms with substantial market power.
“The ICN has become a crucial instrument for dialogue, cooperation, and convergence within the global antitrust community,” said Principal Deputy Assistant Attorney General Hesse. “The Annual Conference provides us all with an opportunity to reflect on the great progress that has been made in competition policy and enforcement around the world, as well as the challenges that lie ahead. This practical cooperation with many other jurisdictions helps to create a strong foundation for more effective enforcement in a globalized economy. We look forward to continuing our work with ICN and its members on these important issues in the coming year.”
Chairwoman Ramirez spoke on a panel about disruptive innovation and competition issues. She highlighted the FTC’s advocacy relating to emerging internet peer-to-peer platforms, as reflected in a 2015 FTC Workshop on the Sharing Economy. This panel was the culmination of a CCS-led special project devoted to government advocacy and disruptive innovation that also produced a comparative report based on input from 44 competition agencies. Chairwoman Ramirez also accepted an award for the FTC’s advocacy work involving the sharing economy as part of the Annual ICN/World Bank Advocacy Contest, which recognizes and promotes successful advocacy initiatives by ICN members.
“Since its founding 15 years ago, ICN has become the premier forum for promoting convergence and cooperation in competition enforcement,” said Chairwoman Ramirez. “In developing consensus-based, common-sense guidance on enforcement, the ICN helps its members be effective champions for competition and consumers.”
The Unilateral Conduct Working group provided an update of its work on the Analytic Framework for Assessing Unilateral Conduct. Over the past year, the group received position papers and held teleconferences on two topics: what is substantial market power and what conduct is exclusionary. The working group also announced the launch of a new project to analyze the effects of vertical restraints in online markets.
The Agency Effectiveness Working Group, co-chaired by the FTC from 2012 to 2016, addresses competition agency strategy, operations, and procedures. The working group developed reports on agency ethics and measuring agency performance, which were adopted at the conference. An agency’s commitment to its ethics rules and the evaluation of its actions are core components of agency governance. Evaluation, and the accountability it reinforces, can provide an informed foundation for future agency planning and enforcement choices and helps justify the resources an agency receives for its mission. The working group also presented new on-line training modules on setting up a new competition agency, setting priorities, conducting dawn raids in cartel investigations, applying economic analytical tools, and addressing state restraints – adding to the ICN’s Training on Demand online curriculum.
The ICN’s members also adopted the Merger Remedies Guide presented by the Merger Working Group. The guide details the overarching principles that form the basis of merger remedies and provides practical guidance on how these principles inform the design and implementation of merger remedies. The Justice Department and the FTC were active contributors to the development of the Guide. Following the conference, the FTC will co-chair the Merger Working Group.
The ICN’s Cartel Working Group presented two new work products designed to aid members’ cartel enforcement efforts: a catalogue of agency investigative powers and a framework for sharing non-confidential information. The framework aims to facilitate improved cooperation among member agencies. Working group discussions at the conference addressed effective detection and deterrence, enforcement cooperation, leniency, compliance and sanctions.
The Advocacy Working group presented an update of its Market Studies Good Practices Handbook and online Market Studies Information Store, a unique resource of over 600 competition agency market studies spanning 10 years and covering more than 30 jurisdictions. The working group also expanded its web-based toolbox on competition advocacy, providing examples of agency messages to business on the benefits of competition.
The results of the ICN’s Second Decade initiative reinforced the network’s commitments to inclusive engagement with its members and non-governmental advisors, experience sharing and the exchange of best practices among members, promotion of convergence and cooperation around sound enforcement approaches, and international advocacy for competition principles to the benefit of member agencies, consumers, and economies worldwide.
The ICN was created in October 2001, when the FTC and the Justice Department joined antitrust agencies from 13 other jurisdictions to increase understanding of competition policy and promote convergence toward best practices around the world. The ICN now comprises 132 member agencies from 120 jurisdictions.
More resources are available on the ICN website.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Ostby in Billings on April 28, 2016 and entering pleas of Not Guilty were:
- TAWNYA BEARCOMESOUT, a 39-year-old resident of Lame Deer, appeared on charges of voluntary manslaughter, and involuntary manslaughter. If convicted of the most serious charge contained in the indictment, BEARCOMESOUT faces 15 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-13
Appearing before U.S. Magistrate Ostby in Billings on April 26, 2016 and entering pleas of Not Guilty were:
- DUANE TIMOTHY SMITH, a 34-year-old resident of Billings, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm not registered in National Firearms Registration and Transfer Record. If convicted of the most serious charges contained in the indictment, SMITH faces life in prison, $10,000,000 in fines, and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-46
- THOMAS DEAN SMITH, a 42-year-old resident of Billings, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, felon in possession of a firearm, and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious charges contained in the indictment, SMITH faces life in in prison, $10,000,000 in fines, and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-46
Appearing before U.S. Magistrate Johnston in Great Falls on April 25, 2016 and entering pleas of Not Guilty were:
- RAFAEL RAMOS-ROMERO, a 29-year-old resident of Mexico, appeared on charges of illegal reentry. If convicted of the charge contained in the indictment, RAMOS-ROMERO faces 10 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Department of Homeland Security. PACER Case Reference. 16-14
- RYAN JASON TATSEY, a 31-year-old resident of Spokane, Washington, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, TATSEY faces life in prison, $10,000,000 in fines, and 5 years supervised release. The case was investigated by the Bureau of Indian Affairs, Drug Enforcement Administration and Glacier County Sheriff’s Office. PACER Case Reference. 16-16
Appearing before U.S. Magistrate Ostby in Billings on April 25, 2016 and entering pleas of Not Guilty were:
- PEDRO CARRASCO, JR., a 33-year-old resident of Billings, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine, felon in possession of a firearm, possession of a firearm in furtherance of a drug trafficking crime, and conspiracy to commit money laundering. If convicted of the most serious charges contained in the indictment, CARRASCO faces life in prison, $10,000,000 in fines, and 5 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference. 16-41
- MATTHEW DENNIS COZZENS, a 32-year-old resident of Billings, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, COZZENS faces life in prison, $10,000,000 in fines, and 5 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference. 16-43
- JOSHUA DON RAY, a 37-year-old resident of Ashland, appeared on charges of distribution of methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, RAY faces 20 years in prison, $1,000,000 in fines, and 3 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 16-47
- GEORGIA ANN WILSON, a 40-year-old resident of Ashland, appeared on charges of distribution of methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, WILSON faces 20 years in prison, $1,000,000 in fines, and 3 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 16-47
- TROY DEE WILSON, a 21-year-old resident of Ashland, appeared on charges of distribution of methamphetamine. If convicted of the most serious charge contained in the indictment, WILSON faces 20 years in prison, $1,000,000 in fines, and 3 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 16-47
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Hagerstown Drug Trafficker Sentenced to 5 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Eric Christopher Smallwood, a/k/a “Big Baby” and “E,” age 40, of Hagerstown, Maryland today to five years in prison followed by four years of supervised release for conspiring to distribute and possession with intent to distribute cocaine in the Hagerstown area.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Captain Paul “Joey” Kifer, Acting Chief of the Hagerstown Police Department; Washington County Sheriff Douglas W. Mullendore; and Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office.
According to his plea agreement, Smallwood regularly obtained bulk quantities of cocaine from Abdul Smith, which he re-sold to customers in the Hagerstown area. Smallwood provided the proceeds of these sales to Smith to pay for prior supplies of cocaine. Agents obtained a wiretap on phone lines used by Smith and Smallwood, and intercepted numerous calls between them discussing the distribution of cocaine.
Over the course of the conspiracy, Smallwood obtained at least 400 grams of cocaine from Smith, which he then re-distributed to customers in Maryland.
Co-defendants Abdul Jamel Smith, age 40; Rory Slade Jenkins, a/k/a/”Malik,” age 56; Altonia Sylvester Henderson, age 40; and Johnathan Woodley, a/k/a “Ming”: age 39, all from Hagerstown, previously pleaded guilty to their participation in the drug conspiracy and were sentenced from five years of probation to 51 months in prison.
United States Attorney Rod J. Rosenstein praised the FBI, DEA, Hagerstown Police Department and Washington County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kenneth S. Clark and Matthew C. Sullivan, who prosecuted the case.
Grand Jury Returns Indictment Charging Kaysville Man with Attempt to Evade Payment of Taxes, Failure to Pay TaxesRead the Press Release
SALT LAKE CITY – A federal grand jury returned a five-count indictment this week charging David Brian Bybee, age 55, of Kaysville, Utah, a Utah businessman and CPA, with two counts of tax evasion and three counts of failure to pay taxes. The indictment alleges Bybee has taken steps to evade payment of personal tax debt and payroll taxes for his employees through the use of nominees and misrepresentations to IRS revenue officers.
According to the indictment, Bybee managed and controlled several companies from his home in Kaysville or at other business addresses in Davis County. Bybee hired and managed employees for the Bybee companies. His duties included generating revenue, keeping books and records, paying expenses, making employee payroll, withholding and paying over taxes from employee payroll, and filing all required business returns. Bybee issued payroll checks from Bybee companies and withheld Medicare and Social Security (often referred to as Federal Insurance Contribution Act or “FICA” taxes) and federal income tax withholdings, collectively referred to as “payroll taxes.”
The first count of the indictment, attempt to evade and defeat payment of tax, alleges Bybee attempted to evade a large part of the income tax he owned to the federal government for calendar years 2000, 2001, 2002, 2005, 2006, 2007, 2008 and 2009, in an amount totaling about $153,569.41. The indictment alleges he took steps to conceal and attempt to conceal the nature, extent and location of his assets from the IRS to avoid paying the taxes.
A second count of attempt to evade and defeat payment of tax relates to efforts the indictment alleges Bybee took to evade paying payroll taxes to the federal government on behalf of the employees of three companies he controlled from about April 30, 2000, to about March 14, 2011. Bybee deducted and collected payroll taxes totaling at least $39,244.49 but did not report the payroll taxes with the exception of one employment tax payment of $899.32 in April 2012. Bybee was determined to be responsible for the payroll taxes and was assessed penalties totaling $47,919.06 for the unpaid taxes. According to the indictment, he has failed to make any payments.
The final three counts of the indictment allege Bybee failed to truthfully account for and pay over to the IRS all of the federal income taxes withheld and FICA taxes due to the United States on behalf of the Bybee companies and its employees for three calendar quarters, including approximate payroll taxes of $2,247.51 for the fourth quarter of 2010; $1,800 for the fourth quarter of 2011; and $1,830.66 for the fourth quarter of 2012.
A summons will be issued to Bybee to appear for an arraignment in federal court. The maximum potential penalty for each of the five counts in the indictment is five years, a fine of $250,000, and the costs of prosecution.
Indictments are not findings of guilt. Individuals charged in an indictment are presumed innocent unless or until proven guilty in court.
The case is being prosecuted by the U.S. Attorney’s Office in Salt Lake City and investigated by special agents of IRS-Criminal Investigation.
Grafton couple who owned head shop chain sentenced to prison for distributing synthetic cannabinoids known as spiceRead the Press Release
A Grafton couple who owned a chain of head shops were sentenced to prison for conspiring to distribute synthetic cannabinoids known as spice, law enforcement officials said.
Sean Lightner, 41, was sentenced to three years in prison while Sherry Lightner, 40, was sentenced to two years in prison.
Nathan Albright, 30, of Glendale, Arizona, was sentenced earlier this month to two years in prison.
All three previously pleaded guilty to one count each of conspiracy to possess with intent to distribute a controlled substance analogue, as well as engaging in monetary transactions in property derived from specified unlawful activity.
“This couple operated stores throughout the state to sell dangerous synthetic drugs to anyone who walked through the front door,” said Acting U.S. Attorney Carole Rendon. “They knew what they were doing was illegal.”
"This is an important victory for the residents of Northern Ohio. Not only are criminals going to jail for their crimes, but the government has seized a significant portion of the illegal proceeds through asset forfeiture,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs. Without these ill-gotten gains, the traffickers could not finance their organizations.”
Dale Drummond, 41, of Cleveland, and Mark Picard, 34, of Whittier, Calif., have pleaded guilty to their roles in the case and are awaiting sentencing.
Synthetic cannabinoids are a large family of chemically unrelated structures functionally similar to THC. Synthetic cannabinoids may contain Schedule I controlled substances or controlled substance analogues and have purported physchotropic effects when smoked or ingested.
The Lightners operated a chain of head shops -- retail stores specializing in drug and smoking paraphernalia -- doing business as Twilight Boutique, where they sold synthetic cannabinoids along with accessories such as bongs, pipes and rolling papers, according to court documents.
They franchised the Twilight Boutique on Madison Avenue in Lakewood to Drummond for a percentage of the store’s monthly revenue. Drummond also sold synthetic cannabinoids from the store, according to the court documents.
The Lightners expanded their business to include several locations in Ohio after they began selling synthetic cannabinoids. They controlled Twilight Corp., located on Royalton Road in Grafton, and the Twilight Boutique stores located on State Route 43 in Streetsboro, Cleveland Road West in Sandusky, Pearl Road in Brunswick, North Abbe Road in Elyria, Lorain Road in Fairview Park, Whipple Avenue in Plain Township, North Court Street in Athens, Midway Plaza in Tallmadge, South Alex Road in West Carrollton, West Fourth Street in Ontario and Clinton Plaza Drive in Oneonta, N.Y., according to court documents.
The Lightners presented laboratory reports to others, including employees, alleging that the synthetic cannabinoids sold in the Twilight Boutique stores did not contain controlled substances or controlled substance analogues in an effort to give the appearance that the synthetic cannabinoids were legal when the Lightners knew they were illegal, according to court documents.
Albright manufactured and sold synthetic cannabinoids through his company, Desert Distribution, LLC and Albright and Picard sold synthetic cannabinoids through their company, Royal Dutch, LLC.
Prosecutors forfeited nearly $400,000 in cash as well as several firearms and automobiles as part of the case.
This case is being prosecuted by Assistant United States Attorneys Carmen Henderson, Teresa Dirksen and Christian M. Stickan following an investigation by the Drug Enforcement Administration -- Tactical Diversion Squad, Internal Revenue Service -- Criminal Investigations, Lorain County Drug Task Force, Medina County Drug Task Force, Portage County Drug Task Force, Westshore Enforcement Bureau, MEDWAY Drug Enforcement Agency, METRICH Enforcement Unit, Cuyahoga County Sheriff’s Office, Linndale Police Department, Lakewood Police Department, Cleveland Police Department, Ontario Police Department, Sandusky Police Department, Ohio HIDTA and the Ohio State Patrol.
Georgia Man Sentenced for Conspiracy to Possess Fraudulent Identification DocumentsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JARED HARRIS, age 26, of Riverdale, Georgia, was sentenced yesterday after previously pleading guilty to a one-count Superseding Bill of Information charging him with conspiracy to possess with intent to use five or more fraudulent identification documents.
U.S. District Judge Mary Ann Vial Lemmon sentenced HARRIS to serve 21 months in prison, to be followed by three years of supervised release. Additionally, HARRIS was ordered to pay restitution in the amount of $13,170 to the victim, Wal-Mart Corporation.
According to court documents, HARRIS, together with another Georgia man, co-conspirator TERRELL WASHINGTON, drove through several states in possession of multiple stolen U.S. Treasury checks, fraudulent forms of identification, and proceeds of their illegal check cashing scheme. The pair was ultimately caught in a Kenner Wal-Mart after a cashier identified HARRIS and WASHINGTON, as the individuals who had first attempted to use fake IDs to cash a stolen U.S. Treasury check. WASHINGTON’s trial is scheduled for June 13, 2016.
U.S. Attorney Polite praised the work of the U.S. Secret Service in investigating this matter. Assistant U.S. Attorney Michael M. Simpson was in charge of the prosecution.
Four Individuals Sentenced on Federal Charges Related to Tax Refund SchemeRead the Press Release
St. Louis, MO – The final of four individuals that participated in a scheme to file false claims for federal tax refunds for tax years 2008 through 2011 was sentenced today to two years in prison. Ninety-three false federal income tax returns were filed by the defendants as part of a scheme, which claimed approximately $335,297 in fraudulent refunds and which caused a loss to the United States government of $184,464.
"The object of these fraudulent refund schemes is to defraud the government and the taxpaying public," said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation. "The prosecution of these individuals is a vital element in maintaining public confidence in our tax system."
Romel Tomlin, with addresses in Grand Prairie, TX and Phoenix, AZ, was sentenced today; Tyra Tomlin, Phoenix, AZ, was sentenced in January to 24 months in prison; Keith Hebb, St. Louis, and Jermaine Irons, St. Louis, were each sentenced in January to five years of probation. They appeared before United States District Judge Rodney W. Sippel.
This case was investigated by Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Charles Birmingham handled the case for the U.S. Attorney's Office.
Fort Apache Man Sentenced to Prison for Sexual AbuseRead the Press Release
PHOENIX – On April 18, 2016, Jerome Remijo Reano, 21, of Whiteriver, Arizona, a member of the Fort Apache Indian Reservation, was sentenced by U.S. District Judge Susan R. Bolton to 336 months in federal prison to be followed by lifetime supervised release. Reano had previously pleaded guilty to one count of sexual abuse.
The investigation revealed Reano had sexually abused two minors, and the abuse occurred on the Fort Apache Indian Reservation where the victims were also member/eligible.
The investigation in this case was conducted by the Bureau of Indian Affairs and the White Mountain Apache Tribal Police Department. The prosecution was handled by Anthony W. Church, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-15-08073-PCT-SRB
RELEASE NUMBER: 2016-036_ Reano
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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.
Former U.S. Postal Letter Carrier Admits Role in Stealing Tax Refund Checks as Part of ScamRead the Press Release
CAMDEN, N.J. – A former U.S. Postal employee from Burlington County, New Jersey, today admitted his role in a conspiracy to steal income tax refund checks from the U.S. Mail, U.S. Attorney Paul J. Fishman announced.
Earl Champagne, 47, of Willingboro, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with one count of theft of U.S. Mail and one count of theft of government money.
Stolen Identity Refund Fraud
Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that results in more than $2 billion in losses annually to the Treasury. SIRF schemes generally share a number of hallmarks:
• SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico.
• Participants complete Individual Income Tax Return 1040 Forms using the fraudulently obtained information, falsifying wages earned, taxes withheld and other data and always ensuring the fraudulent form generates a tax refund check from the U.S. Treasury.
• They direct the U.S. Treasury Department to mail the fraudulently obtained checks to locations the perpetrators control or can access. In some cases, SIRF perpetrators bribe mail carriers to remove the checks from their mail routes.
• With the checks in hand, they generate cash proceeds by depositing the Treasury checks into bank accounts that they control.
According to documents filed in this case and statements made in court:
From 1995 to November 2014, Champagne was employed by the U.S. Postal Service as a mail carrier. He was required to deliver mail that had been placed in the mail stream for delivery and was assigned to deliver mail to locations in Pennsauken, New Jersey.
Champagne admitted that from March 2014 to July 2014 he stole U.S. Treasury Checks from the mail and gave them to others. He said he was approached by two individuals who asked him to retrieve checks from the mail with the promise that he would be paid. The individuals told Champagne that the checks were IRS checks and that they would mostly be addressed to individuals with “Spanish” names. The individuals expected to either pick up the checks from Champagne or for him to notify them that the checks were in the mailbox so that they could retrieve the checks themselves. For this service, Champagne was paid $50 per check for every check stolen from the mail. Champagne admitted that he stole 72 U.S. checks totaling $442,776.
The theft of U.S. Mail and theft of government money charges to which Champagne pleaded guilty each carry a maximum potential penalty of 15 years in prison and a fine of $250,000. Champagne's sentencing is scheduled for Aug. 3, 2016.
U.S. Attorney Fishman credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan Larsen, and U.S. Postal Service, Office of Inspector General, under the direction of Special Agent in Charge Monica Weyler, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney's Office Criminal Division in Camden.
Defense counsel: Michael Riley Esq., Mount Holly, New Jersey
Former SunTrust Mortgage VP and Loan Officers Sentenced to PrisonRead the Press Release
ALEXANDRIA, Va. – Mohsin Raza, 51, and his wife, Humaira Iqbal, 40, of Woodbridge, were sentenced to 24 months and 15 months in prison, respectively, for conspiracy and wire fraud affecting a financial institution.
The four defendants were convicted by a federal jury on Feb. 3. According to court documents and evidence presented at trial, in 2005 Raza was hired by SunTrust Mortgage (STM) as a vice-president tasked with opening an office in Annandale. Raza hired his wife and her brothers, Farukh Iqbal, 41, and Mohammad Ali Haider, 33, both of Chantilly, to work as loan officers at SunTrust Mortgage. From 2006 until 2007, when the defendants left SunTrust Mortgage, they falsified loan applications for borrowers and purchased fake tax documents to support the false loan applications. SunTrust Mortgage underwriters in Richmond approved the loans totaling several million dollars based in large part upon the fake documents in the files, and ultimately borrowers were given loans to buy homes that they could not afford.
Iqbal and Haider were each sentenced today to one year and one day in prison. In addition to their prison sentences, Raza and Humaira Iqbal were also ordered to forfeit two properties and $40,000 and pay restitution to victims in the amount of $1,923,324.53.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Olga Acevedo, Special Agent in Charge, Federal Housing Finance Agency Office of Inspector General, made the announcement after sentencing by U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Jack Hanly and Special Assistant Attorney Joseph Capone prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-118.
Former Newburgh City Fire Chief Pleads Guilty to Wire Fraud for Fraudulently Obtaining Retirement BenefitsRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, announced that MICHAEL J. VATTER pled guilty today to wire fraud in connection with state pension benefits before U.S. District Judge Cathy Seibel in White Plains federal court.
Manhattan U.S. Attorney Preet Bharara said: “Michael Vatter, the former Newburgh City Fire Chief, cheated the public he swore to serve by double-dipping, receiving both a public pension and a paycheck at the same time. Today, he admitted to his fraud, and he will be held accountable for his corruption.”
According to the Indictment:
VATTER served in the Newburgh City Fire Department in various capacities from in or about 1980 until his retirement in May 2000. Following his retirement, VATTER attended law school and practiced law. In November 2009, the Indictment charges, VATTER returned to the Newburgh Fire Department as its Chief. The Indictment further alleges that VATTER failed to report his return to the public sector New York State and Local Police and Fire Retirement System despite knowing he had a duty under state law to do so. As a result, VATTER received more than $95,000 in pension benefits that he was not entitled to receive.
Under New York State law, a public sector retiree who is receiving a pension and who returns to public service cannot receive both pension payments and a public sector paycheck. The law permits public sector retirees to earn up to $30,000 per year from public sector employment before their pension benefits are cut off for that year.
VATTER, 57, of Walkill, New York, faces a maximum sentence of 20 years in prison.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation, the Office of the New York State Comptroller, and the Orange County Sheriff’s Office.
This prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney James McMahon is in charge of the prosecution.
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Former IRS Employee Pleads Guilty to Theft of Government FundsRead 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 Yvonne E. Borders, 43, of Cheektowaga, NY, pleaded guilty to theft of government funds before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. The charge carries a maximum penalty of one year in jail and a $100,000 fine.
Assistant U.S. Attorney Elizabeth R. Moellering, who is handling the case, stated that Borders applied for and collected unemployment benefits from the United States Department of the Treasury that she was not entitled to because she was working at the time for the Internal Revenue Service. Individuals are eligible for unemployment benefits when they become unemployed through no fault of their own and meet certain eligibility requirements. However, the defendant certified claims for benefits while she was employed as a contact representative with the IRS and failed to report this work to the New York State Department of Labor.
In total, Borders collected $18,550 in benefits that she was not entitled to from January 2009 through December 2013.
The plea is the result of an investigation by the Department of the Treasury, Treasury Inspector General for Tax Administration, under the direction of Robert E. O’Malley, the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Jonathan Mellone, New York Region, and the New York State Department of Labor, under the direction of Commissioner Roberta Reardon.
Sentencing is scheduled for July 27, 2016 at 10:30 a.m. before Judge Schroeder.