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9 June 2016
Cincinnati Man Pleads Guilty to Distribution of Drugs Resulting in DeathRead the Press Release
COVINGTON, Ky. – A Cincinnati man has admitted in federal court that he conspired to provide illicit drugs to a woman who then died of an overdose.
Michael Howard, 41, pleaded guilty yesterday, before U.S. District Judge Amul Thapar, to conspiracy to distribute fentanyl and morphine that resulted in death.
Howard admitted selling heroin to co-defendant Kimberly Mullins on a regular basis, during a four-month period in 2015, knowing that Mullins could arrange to get the drugs to Jamie Green, who was incarcerated. Howard knew that distributing these drugs could cause death.
Howard further admitted supplying what he believed to be heroin to Mullins, on September 4, 2015, who was to then get the drugs to Green. The substance actually contained a combination of fentanyl (a dangerous opiate that is much more powerful than heroin) and morphine.
Mullins arranged to deliver the substance to Green though Lynnette Ball and Lisa Lattimore, who were also inmates in the Kenton County Detention Center. On September 5, 2015, Green took the drugs and died of an overdose.
“Those who traffick in heroin and fentanyl cause tremendous damage to our communities and demonstrate a wanton disregard for human life,” said Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky. “Our office and our law enforcement partners intend to use every available tool to combat the heroin and fentanyl epidemic that has taken deep root in so many of our communities. The twenty-year mandatory minimum sentence imposed by federal law on drug dealers who traffick in narcotics that cause a death is one such tool. Drug dealers should be on notice – we intend to seek these stiff penalties when their criminal conduct results in death or serious injury – an all too predictable occurrence.”
Howard, Mullins, Lattimore, and Ball were charged with their involvement in the conspiracy in November of 2015. Mullins, Lattimore, and Ball pleaded guilty earlier this year. Two other individuals, Mabry Baioni and Heather Tucker – who were not involved in the events leading to Green’s death – were later charged and pleaded guilty to conspiring with Howard and Mullins to distribute heroin to Green.
U.S. Attorney Harvey and Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration, jointly announced the guilty pleas. The investigation was conducted by the Cincinnati Resident Office of the Drug Enforcement Administration and the Kenton County Police Department. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Tony Bracke.
Howard is scheduled to be sentenced on September 23, 2016. Mullins, Ball and Lattimore are scheduled to be sentenced on July 21, 2016. Each faces a maximum of life in prison. Baioni is set for sentencing on July 21, 2016 and Tucker is set for sentencing on September 15, 2016. They face up to 20 years in prison. Any sentences, however, will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statutes.
Charleston dealer pleads guilty to Federal drug crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man pleaded guilty today to a federal drug charge, announced Acting United States Attorney Carol Casto. Terrance Wilson, 27, entered his guilty plea to distributing crack.
Wilson admitted that on January 25, 2016, he sold crack to a confidential informant working with law enforcement authorities. The drug deal took place at a local business on Bigley Avenue in Charleston. Wilson further admitted that he also sold crack to a confidential informant on January 26 and 27, 2016.
Wilson faces up to 20 years in federal prison when he is sentenced on September 14, 2016.
This case was investigated by the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
This prosecution was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat illegal drugs in our communities. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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California Resident Convicted of Conspiring to Illegally Export Fighter Jet Engines and an Unmanned Aerial Vehicle to ChinaRead the Press Release
A California resident was convicted by a Southern District of Florida jury of conspiring to export and cause the export to the People’s Republic of China of fighter jet engines, an unmanned aerial vehicle, commonly known as a drone, and related technical data, in violation of the Arms Export Control Act.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, John P. Carlin, Assistant Attorney General for National Security, Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI), and John Khin, Special Agent in Charge, Department of Defense, Defense Criminal Investigative Service (DCIS), made the announcement.
Wenxia Man a/k/a “Wency Man,” age 45, of San Diego, California, was convicted at trial of conspiring to export and cause the export of defense articles without the required license, in violation of Title 22, United States Code, Section 2778. She faces a statutory maximum penalty of 20 years in prison. Sentencing is scheduled for August 19, 2016 at 2:00 p.m., before Judge Beth Bloom in Miami.
The evidence at trial established that between approximately March 2011 and June 2013, Man conspired with Xinsheng Zhang, who was located in the People’s Republic of China, to illegally acquire and export to China defense articles including: Pratt & Whitney F135-PW-100 engines used in the F-35 Joint Strike Fighter; Pratt & Whitney F119-PW-100 turbofan engines used in the F-22 Raptor fighter jet; General Electric F110-GE-132 engines designed for the F-16 fighter jet; the General Atomics MQ-9 Reaper/Predator B Unmanned Aerial Vehicle, capable of firing Hellfire Missiles; and technical data for each of these defense articles. During the course of the investigation, when talking to an HSI undercover agent, Man referred to Zhang, as a “technology spy” who worked on behalf of the Chinese military to copy items obtained from other countries, and stated that he was particularly interested in stealth technology.
“Protecting our nation from the illegal movement of technology and defense articles is a top national security concern,” stated U.S. Attorney Wifredo Ferrer. “In the interests of our national defense, the U.S. Attorney’s Office and our law enforcement partners will continue to target for criminal prosecution those who attempt to unlawfully procure military equipment, munitions, tools and materials.
"Man was convicted of conspiring to evade U.S. export laws by agreeing to illegally acquire and send to China fighter jet engines, a highly sophisticated military drone and related technical data," said Assistant Attorney General Carlin. "Circumventing U.S. laws designed to safeguard our most sensitive materials serves to undermine our national security interests and we will aggressively pursue those who try to do so. I would like to thank the many members of law enforcement whose tireless efforts led to this verdict."
“ICE-HSI works very closely with numerous domestic and international partners to deny prohibited recipients access to restricted arms, munitions, weapons and controlled technologies,” said HSI Acting Special Agent in Charge Robert C. Hutchinson.
“Today’s conviction of Wenxia Man demonstrates the commitment of the Defense Criminal Investigative Service (DCIS) and our partner agencies to ensure that those intent on harming our national security are brought to justice,” said Special Agent in Charge John F. Khin, DCIS. “The nation’s security relies upon our military possessing the most sophisticated technology and weapon systems in the world while simultaneously preventing these items from finding their way into the hands of our adversaries.”
Mr. Ferrer commended the investigative efforts of the ICE-HSI Counter Proliferation Unit and DCIS offices in Fort Lauderdale, Florida. The case is being prosecuted by Assistant United States Attorney Michael Walleisa and Thea D. R. Kendler of the National Security Division’s Counterintelligence and Export Control Section.
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
California Resident Convicted of Conspiring to Illegally Export Fighter Jet Engines and Unmanned Aerial Vehicle to ChinaRead the Press Release
Wenxia Man, aka Wency Man, 45, of San Diego, was convicted today by a federal jury in the Southern District of Florida of conspiring to export and cause the export of fighter jet engines, an unmanned aerial vehicle – commonly known as a drone – and related technical data to the People’s Republic of China, in violation of the Arms Export Control Act.
The conviction was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Acting Special Agent in Charge Robert C. Hutchinson of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in Miami and Special Agent in Charge John F. Khin of the Department of Defense’s Defense Criminal Investigative Service (DCIS).
“Man was convicted of conspiring to evade U.S. export laws by agreeing to illegally acquire and send to China fighter jet engines, a highly sophisticated military drone and related technical data,” said Assistant Attorney General Carlin. “Circumventing U.S. laws designed to safeguard our most sensitive materials serves to undermine our national security interests and we will aggressively pursue those who try to do so. I would like to thank the many members of law enforcement whose tireless efforts led to this verdict.”
“Protecting our nation from the illegal movement of technology and defense articles is a top national security concern,” said U.S. Attorney Ferrer. “In the interests of our national defense, the U.S. Attorney’s Office and our law enforcement partners will continue to target for criminal prosecution those who attempt to unlawfully procure military equipment, munitions, tools and materials.”
“ICE-HSI works very closely with numerous domestic and international partners to deny prohibited recipients access to restricted arms, munitions, weapons and controlled technologies,” said Acting Special Agent in Charge Hutchinson.
“Today’s conviction of Wenxia Man demonstrates the commitment of the Defense Criminal Investigative Service (DCIS) and our partner agencies to ensure that those intent on harming our national security are brought to justice,” said Special Agent in Charge Khin. “The nation’s security relies upon our military possessing the most sophisticated technology and weapon systems in the world while simultaneously preventing these items from finding their way into the hands of our adversaries.”
Man was convicted at trial of conspiring to export and cause the export of defense articles without the required license.
According to evidence presented at trial, between approximately March 2011 and June 2013, Man conspired with Xinsheng Zhang, who was located in China, to illegally acquire and export to China defense articles including: Pratt & Whitney F135-PW-100 engines used in the F-35 Joint Strike Fighter; Pratt & Whitney F119-PW-100 turbofan engines used in the F-22 Raptor fighter jet; General Electric F110-GE-132 engines designed for the F-16 fighter jet; the General Atomics MQ-9 Reaper/Predator B Unmanned Aerial Vehicle, capable of firing Hellfire Missiles; and technical data for each of these defense articles. During the course of the investigation, when talking to an HSI undercover agent, Man referred to Zhang, as a “technology spy” who worked on behalf of the Chinese military to copy items obtained from other countries and stated that he was particularly interested in stealth technology.
Man faces a statutory maximum penalty of 20 years in prison. Sentencing is scheduled for Aug. 19, 2016, at 2:00 p.m. before U.S. District Judge Beth Bloom of the Southern District of Florida.
Assistant Attorney General Carlin joined U.S. Attorney Ferrer in commending the investigative efforts of the ICE-HSI Counter Proliferation Unit and DCIS offices in Fort Lauderdale, Florida.
The case is being prosecuted by Assistant U.S. Attorney Michael Walleisa of the Southern District of Florida and Thea D. R. Kendler of the National Security Division’s Counterintelligence and Export Control Section.
Birmingham Man Sentenced to 30 Years in Prison for Child Exploitation and Child PornographyRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Birmingham man to 30 years in prison for sexually exploiting a 5-year-old child and possessing and distributing child pornography, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
U.S. District Judge R. David Proctor sentenced AHKEEM JAMAR JOHNSON, 24, on one count of sexual exploitation of a child, one count of distributing child pornography and one count of possessing child pornography. Johnson pleaded guilty to the charges in March. Following today’s hearing, the judge ordered Johnson immediately into the custody of U.S. Marshals.
According to court documents, Johnson took sexually explicit images of the 5-year-old girl and distributed some of those images. He also possessed more than 96 images of child pornography involving children other than the 5-year-old. Most of those images showed prepubescent girls engaged in sexual intercourse with adult men.
The FBI investigated the case, which Assistant U.S. Attorney Jacquelyn M. Hutzell prosecuted.
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Berlin Armed Bank Robber Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Jeff V. Hare, age 54, of Berlin, Maryland, today to 10 years in prison followed by five years of supervised release for armed bank robbery and brandishing a firearm during a crime of violence.
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; Worcester County Sheriff Reggie T. Mason, Sr.; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Worcester County State’s Attorney Beau Oglesby.
According his plea agreement, on March 13, 2015, Hare entered the BB&T branch located on Racetrack Road in Berlin, wearing a ski mask and brandishing a handgun. Hare told the bank tellers that he had a gun and was robbing the bank. Hare moved through the lobby from employee to employee, pointing the handgun at each employee and demanding money. Hare also demanded each teller give him their car keys and purse, but the tellers told Hare they did not have them available. Hare stole approximately $2,850 in cash from the bank.
Hare admitted that after robbing the tellers in the lobby, he found a bank employee who had locked herself in a back room of the bank. Hare forced open the locked door and demanded her car keys and her purse. The employee gave Hare her purse, which contained cash and personal effects, and the keys to her car. Hare fled in the stolen car, which he abandoned at a nearby business.
Hare was arrested later that evening at a residence in Ocean Pines, Maryland. At the time of his arrest, Hare was still in possession of the money stolen from the bank.
Hare has been detained since his arrest. During that time, Hare attempted to impede the investigation of the armed bank robbery and carjacking by seeking to arrange for the disposal of evidence of the crimes. On May 1, 2015, an associate of Hare visited him at the Worcester County Detention Center in Snow Hill, Maryland. During that visit, Hare told his associate that he was being framed and that unidentified persons had a box of garbage that would incriminate him. Hare asked the person to retrieve the box from his former residence in Ocean Pines. On May 6, Hare called his associate and asked if he got rid of the “trash,” referring to the box Hare had asked the associate to retrieve. The box contained the ski mask Hare wore during the robbery and carjacking, a .38 caliber revolver believed to have been used during the robbery, and the purse Hare stole from the bank employee, including her driver’s license.
United States Attorney Rod J. Rosenstein praised the FBI, Worcester County Sheriff’s Office, Maryland State Police and the Worcester County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Matthew J. Maddox and Zachary A. Myers, who prosecuted the case.
Baltimore Man Sentenced to 20 Years in Prison for Armed RobberyRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Derek Anthony Davis, age 31, of Baltimore, Maryland today to 20 years in prison followed by five years of supervised release for robbery conspiracy and possession of a firearm by a convicted felon.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Frank Riehl of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore Police Commissioner Kevin Davis; and Baltimore City State’s Attorney Marilyn Mosby.
According to his plea agreement, from June 17 to June 30, 2015, Davis and a co-conspirator committed five armed robberies of a hair academy on Dundalk Avenue North in Dundalk; a barber shop on Eastern Avenue in Baltimore; a beauty parlor on Reisterstown Road in Baltimore; a barber shop on Garrison Boulevard in Baltimore; and a hair salon on Edmondson Avenue in Baltimore.
During each robbery, Davis brandished a firearm. Davis and his co-conspirator stole cash and products from employees, customers and the businesses.
While robbing the barber shop on Eastern Avenue, Davis demanded that an employee give him cash. When the employee initially resisted, Davis yelled that the employee was going to be the reason they all got shot.
At least $1,208 was stolen during the robberies.
On July 29, 2015, a police officer saw Davis walking out of an alley in the 500 block of Normandy Avenue in Baltimore. Davis fled when he saw the officer. When the officer caught up with him, Davis tossed a .22 caliber pistol onto a nearby porch roof. Davis had previously been convicted of a felony and was prohibited from possessing a firearm.
Davis also admitted that he is an armed career criminal.
United States Attorney Rod J. Rosenstein praised commended the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Seema Mittal, who prosecuted the case.
BPD Cell Block Attendant Charged with Violating the Civil Rights of an Individual in CustodyRead 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 Matthew Jaskula, 26, of Buffalo, NY, was charged by criminal complaint with deprivation of rights under color of law. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
“As our Office has demonstrated in the past, we will not tolerate the alleged abuse of any individual in custody,” said U.S. Attorney Hochul. “I commend the Buffalo Police Department for once again immediately bringing this incident to our attention.”
Assistant U.S. Attorney Joseph M. Guerra, who is handling the case, stated that Jaskula has been working as a Cell Block Attendant with the Buffalo Police Department since 2013. On May 19, 2016, the defendant was promoted to the position of Senior Cell Block Attendant.
According to the complaint, on that same day, May 19, 2016, the Victim was arrested by two Buffalo Police officers and transported to the cell block area of police headquarters. At approximately 10:00 p.m., the Victim, whose hands were handcuffed behind his back, was taken into the fingerprint and mug shot room. The officers and the Victim were met by Jaskula and another cell block attendant.
The Victim, with his hands still handcuffed behind him, was instructed to face a wall. Within a few seconds, Jaskula grabbed the Victim from behind and shoved the Victim face-first into a door. The force of the defendant’s actions not only caused the Victim to strike his face on the door, it caused the door to fly open and the Victim to fall to the ground. On the way to the ground, the Victim’s face struck the ledge of a shelf, before striking the floor – once again, face-first.
The defendant’s actions caused the Victim to become limp and unresponsive. Jaskula thereafter grabbed the Victim by his handcuffed arms and dragged him down a hallway for approximately 10-15 feet to an open cell. The Victim began bleeding profusely as he was dragged by the defendant and taken into an open cell. As the Victim was pulled into the room, the Victim’s head hit the door frame, causing blood to pool on the floor. Once in the room, the Victim’s facial injuries caused a large amount of blood to fall onto the seat and floor of the cell.
The Victim was later taken by Jaskula and another and put into a restraint chair used for non-compliant prisoners. The defendant left the Victim in this chair, without seeking medical treatment for the extensive facial injuries, for approximately an hour and 45 minutes. The cell block area in Buffalo Police headquarters is equipped with a video recording system and Jaskula’s actions were captured on videotape.
As also described in the complaint, Jaskula told two lieutenants on duty that a prisoner had a bloody nose, giving the impression that the Victim had the bloody nose when he was brought in by the officers. After one of the lieutenants indicated the Victim should go to the Erie County Medical Center, the defendant replied that the Victim’s nose was not bleeding anymore and he was refusing medical treatment. At approximately 11:30 p.m., the Victim complained of chest pains. The Victim was taken to ECMC and treated for nasal bone fractures and a laceration between his nose and right eye.
The defendant will make an initial appearance on June 10, 2016 at 9:00 a.m. before U.S. Magistrate Judge Michael J. Roemer.
The complaint is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Alexandria Man Charged with Providing Material Support to ISILRead the Press Release
ALEXANDRIA, Va. – In a criminal complaint unsealed here today, Mohamad Jamal Khweis, 26, of Alexandria, has been charged with providing, and conspiring to provide, material support to the Islamic State of Iraq and the Levant (ISIL).
Khweis was detained by Kurdish Peshmerga military forces on March 14 in northern Iraq after leaving an ISIL-controlled neighborhood in Tal Afar, Iraq. According to the affidavit in support of the criminal complaint, Khweis admitted to flying out of Baltimore-Washington International Airport to begin his travel to join ISIL in mid-December 2015. His travel included a stop in the United Kingdom and the Netherlands before ultimately crossing into Syria through the Republic of Turkey with the help of ISIL facilitators. Khweis admitted that he stayed in an ISIL safe house in Raqqa, Syria with other ISIL recruits who were going through an intake process, and at one point during the intake process he answered yes when asked by ISIL if he would be a suicide bomber. Khweis also admitted to participating in ISIL-directed religious training for nearly one month in preparation for his service to ISIL.
Khweis will have his initial appearance at the federal courthouse in Alexandria today at 2 p.m. in front of U.S. Magistrate Judge John F. Anderson.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John Carlin, Assistant Attorney General for National Security; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the unsealing of the criminal complaint. The case is being prosecuted by Assistant U.S. Attorney Dennis Fitzpatrick and Trial Attorney Raj Parekh of the Justice Department’s National Security Division’s Counterterrorism Section. This case is being investigated by the FBI’s Joint Terrorism Task Force.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-mj-213.
The criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Additional charges for Iberia Parish Sheriff and other officials on civil rightsRead the Press Release
LAFAYETTE, La. – Principal Deputy Assistant Attorney General Vanita Gupta, head of the Department of Justice’s Civil Rights Division, and U.S. Attorney Stephanie A. Finley announced today that Iberia Parish Sheriff Louis Ackal, Lieutenant Colonel Gerald Savoy and former Captain Mark Frederick were charged in a superseding indictment with civil rights violations arising out of the beatings of two men.
The superseding indictment charges Ackal with one count of conspiracy against rights for conspiring in the spring of 2014 to assault a man who had been arrested on battery charges for allegedly assaulting one of Ackal’s relatives. The superseding indictment also charges Savoy and Frederick with one count of deprivation of rights under color of law for allegedly assaulting another man, a pre-trial detainee at the Iberia Parish Jail (IPJ) in September of 2011. Ackal and Savoy had previously been charged related to beatings of pre-trial detainees at the IPJ on April 29, 2011.
Nine former Iberia Parish Sheriff’s Office employees previously entered guilty pleas in related cases before U.S. District Judge Patricia Minaldi of the Western District of Louisiana. The nine officers are former IPJ Warden Wesley Hayes, former IPJ Assistant Warden Jesse Hayes, former Lieutenant Bret Broussard of the Narcotics Unit, former narcotics agent Wade Bergeron, former narcotics agent Jason Comeaux, former narcotics agent David Hines, former narcotics agent Byron Benjamin Lassalle and former K-9 handlers Robert Burns and Jeremy Hatley.
An indictment is merely an allegation, and the defendants are presumed innocent until proven guilty. If convicted, Ackal, Savoy and Frederick each face a maximum sentence of 10 years in prison for each of the civil rights violations, as well as a potential $250,000 fine for each count.
The case is being investigated by the FBI’s Lafayette Resident Agency. The case is being prosecuted by Senior Litigation Counsel Joseph G. Jarzabek of the Western District of Louisiana and Special Litigation Counsel Mark Blumberg and Trial Attorney Tona Boyd of the Civil Rights Division’s Criminal Section.
8 June 2016
“Babysitter” Admits to Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A Mathis woman who was supposed to care for a young child but who instead recorded her sexual assault has pleaded guilty, announced U.S. Attorney Kenneth Magidson.
Rosa Linda Ganceres, 53, entered a guilty plea to sexual exploitation of a child, otherwise known as production child pornography.
The court heard today that Ganceres and her boyfriend - Daniel Benson Billman, 42, of Aransas Pass, and a registered sex offender - placed an ad on craigslist offering babysitting services. The victim’s mother answered the ad and Ganceres was supposed to care for the child. Instead, Billman sexually assaulted the two-year-old girl while Ganceres recorded the assault.
In August 2015, authorities executed a search warrant at Billman’s residence and seized a cellular telephone. Forensic examination led to the discovery of a video of the child involved in sexual explicit conduct that Ganceres recorded.
Billman has also pleaded guilty for his crimes. In March 2016, Senior U.S. District Judge Janis Graham Jack sentenced him to 50 years in federal prison.
Ganceres is set for sentencing Sept. 22, 2016, before U.S. District Judge Nelva Gonzales Ramos. At that time, she faces a minimum of 15 and up to 30 years in federal prison as well as a possible $250,000 fine. Upon completion of any prison term imposed, Ganceres also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
The charges are the result of the investigative efforts of Homeland Security Investigations, Aransas Pass Police Department and Corpus Christi Police Department’s Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Woman Who Embezzled $852,041 from St. Luke’s Pleads GuiltyRead the Press Release
BOISE -- Sara Curnow, 45, of Portland, Oregon, pleaded guilty today to wire fraud in connection with her scheme to embezzle $852,041 from St. Luke’s Health System employees’ Flexible Spending Accounts, U.S. Attorney Wendy J. Olson announced. Curnow waived her right to indictment and pleaded guilty before Chief U.S. Magistrate Judge Ronald E. Bush to a single count felony information filed by the U.S. Attorney.
According to the plea agreement, from approximately 2008 through 2015, Curnow was an employee of Pinnacle Pension Services (“Pinnacle”), headquartered in Boise, Idaho. As part of its business, Pinnacle administered health care and dependent care Flexible Spending Accounts (“FSAs”) for employees of client firms. Employees of client firms who elected to participate in an FSA program had pre-tax funds withheld from their paycheck and deposited into a bank account from which they can make claims for disbursement for health care and dependent care expenses throughout the year. At the end of the year, if the employee had not exhausted his or her FSA deposits, they were forfeited to the employer. In approximately 2009, Curnow assumed the job of FSA Administrator at Pinnacle. In that role, she had responsibility for reviewing and approving payment of FSA disbursement claims.
St. Luke’s Health System (“St. Luke’s”) was a client of Pinnacle. St. Luke’s maintained bank accounts at Wells Fargo Bank into which withholdings of pre-tax FSA funds from participating employees were deposited and from which disbursements were made to these employees after they were approved by Pinnacle.
The plea agreement provided that, beginning in April of 2009 and continuing until October of 2015, Curnow embezzled $852,041 from St. Luke’s FSA accounts at Wells Fargo Bank. On the internal Pinnacle computer system, she saw which St. Luke’s employees left forfeitures at plan year end and in what amounts. These amounts were supposed to be forfeited to St. Luke’s at plan year end. Instead, Curnow manipulated the Pinnacle claims system to create dummy elections and claims payments for St. Luke’s employees. Rather than directing the claims payments to the bank accounts of the St. Luke’s employees, Curnow directed these claims payments to be sent by interstate ACH wire transfer from St. Luke’s FSA account at Wells Fargo Bank to Pinnacle’s trust account at Wells Fargo Bank, and then, to Curnow’s bank accounts at Ally Bank, Mountain America Federal Credit Union, and Navy Federal Credit Union. She did so on approximately 294 separate occasions in denominations ranging from approximately $600 to $9,100. Because St. Luke’s had between 5,000 and 11,000 employees from 2009 through 2015, St. Luke’s did not discover the fraudulent transfers of forfeited funds that belonged to it.
The charge of wire fraud is punishable by up to 20 years in prison, a maximum fine of $250,000, and up to 3 years of supervised release.
Sentencing for Curnow is set for August 30, 2016, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was investigated by the U.S. Department of Labor, Employee Benefits Security Administration and the Boise Police Department.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
Watertown Man Sentenced for Possessing Synthetic DrugsRead the Press Release
SYRACUSE, NEW YORK – Lakendrick Cobey, 40, of Watertown, New York, was sentenced to serve fifty (50) months in prison followed by a three (3) year term of supervised release in connection with his possession with intent to distribute ethylone, a synthetic drug similar to ecstasy, announced United States Attorney Richard S. Hartunian and Homeland Security Investigations (HSI) Special Agent in Charge James C. Spero.
Special Agents of the U.S. Department of Homeland Security Investigations (HSI) executed a federal search warrant at Cobey’s residence in Watertown, New York on April 28, 2015, during which they recovered $978.00 in drug proceeds, an electric money counter, two mobile telephones and drug paraphernalia. Lakendrick Cobey pled guilty on December 14, 2015 to possessing with intent to distribute approximately two (2) pounds of the synthetic drug that he ordered from Chinese suppliers.
As part of his plea of guilty, Lakendrick Cobey admitted that he ordered two shipments of synthetic drugs from China that were seized by U.S. Customs officials when they entered the United States. The seizure of these drugs led to the issuance and execution of a federal court search warrant and the arrest of the defendant. At the time of his arrest, Lakendrick Cobey was serving a sentence of probation in connection with his previous conviction for a New York State felony drug offense.
This case was investigated by the United States Department of Homeland Security Investigations (HSI), and was prosecuted by Assistant U.S. Attorney Richard R. Southwick.
Washington Resident Charged with Immigration Fraud Scheme Targeting Vietnamese CommunityRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Matthew Etre, Special Agent in Charge of HSI Boston, announced that a federal grand jury in Hartford returned a 23-count indictment today charging HAI VAN NGUYEN, 41, of Lynnwood, Wash., on charges stemming from fraud scheme targeting members of the Vietnamese community in Connecticut and other states.
As alleged in court documents and statements made in court, NGUYEN advertised through Facebook a purported avenue for legal sponsorship for individuals to come to the United States from Vietnam. When contacted, NGUYEN guaranteed clients that he could obtain legal entry into the U.S. for their family members through his company, New Saigon Entertainment. NGUYEN guaranteed a green card upon arrival in the U.S. and U.S. citizenship within five years. Through fraudulent and false representations, NGUYEN convinced two Connecticut residents to assist him in recruiting clients for his purported company. The Connecticut residents collected deposits towards NGUYEN’s $35,000 fee pursuant to more than 50 contracts from clients in Connecticut, South Carolina, Maine and Arizona. Additional victims of NGUYEN’s fraudulent scheme have been identified in Ohio and Texas.
Through this alleged scheme, NGUYEN defrauded members of the Vietnamese community seeking legal entry for family members into the U.S. of more than $500,000.
NGUYEN has been detained since his arrest on May 5, 2016.
The indictment charges NGUYEN with one count of conspiracy to commit wire and mail fraud, two counts of mail fraud and 20 counts of wire fraud. The charges carry a maximum term of imprisonment of 20 years on count.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Jacabed Rodriguez-Coss.
Versailles Woman Pleads Guilty to $400,000 Fraud SchemeRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Versailles, Mo., woman has pleaded guilty in federal court to a fraud scheme in which she stole nearly $400,000 from her employer.
Abbie Martin Stemper, 43, of Versailles, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth on Tuesday, June 7, 2016, to one count of wire fraud and one count of bank fraud.
Stemper worked as a bookkeeper and purchasing agent at Smith Paper & Janitor Supply (SP&JS) in Eldon, Mo., from the spring of 2009 to February 2015, when her employment was terminated.
By pleading guilty today, Stemper admitted that she embezzled $397,122 from Smith Paper & Janitor Supply and its wholly owned subsidiary, White Castle Service and Supply in Springfield, Mo., from June 2010 to February 2015.
The thefts took several forms:
Stemper had entered into an agreement with SP&JS to purchase some of SP&JS’ product and sell it to customers who were not customers of SP&JS. Payments for these sales were made via cash, check or PayPal, and were deposited into financial accounts Stemper owned or controlled. Stemper received payments totaling $233,806 for products that she sold through her own business entities but she did not reimburse SP&JS for the products she took (except for $688).
Stemper also admitted that she created false refunds for various SP&JS customers, and then directed the refunds to her debit cards or a card that she controlled at various banks, in a total amount of $22,704. In addition, Stemper stole cash from SP&JS and made $74,518 in cash deposits into her personal checking accounts.
SP&JS had an Amazon customer account in which its products were sold through Amazon. Amazon collected the payments received for sales of SP&JS’s products, and forwarded those payments to the company’s bank accounts. Stemper admitted that, on several occasions, she altered SP&JS’s Amazon account profile information to direct withdrawals from this account to be deposited into her personal bank account. Stemper admitted that she caused Amazon to wire a total of $13,422 in payments due SP&JS to her personal bank account.
In October 2013, SP&JS acquired White Castle Service and Supply, which also sold cleaning and janitorial supplies. Stemper admitted that she intercepted and stole 234 customer checks totaling $53,358 payable to White Castle and deposited them into her personal bank account. Stemper had registered “White Castle Service” with the Missouri Secretary of State as a fictitious name with a business address that was her personal residence, then added “DBA White Castle Service” to her personal bank account in order to mislead her bank that deposits of checks from customers of White Castle (SP&JS’s subsidiary) were legitimate deposits, and thereby conceal and facilitate the theft.
Under federal statutes, Stemper is subject to a sentence of up 30 years in federal prison without parole on each of the two counts and an order of restitution. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Larry Miller. It was investigated by the FBI, the Missouri State Highway Patrol and the Eldon, Mo., Police Department.
U.S. Attorney Announces New Civil Rights Practice at Civil Civil Rights Symposium Held in Jackson TodayRead the Press Release
Jackson, Miss – Principal Deputy Assistant Attorney General Vanita Gupta, head of the Department of Justice’s Civil Rights Division, delivered remarks during a Civil Rights Symposium hosted by the U.S. Attorney’s Office for the Southern District of Mississippi in Jackson today, announced U.S. Attorney Gregory K. Davis.
The purpose of the symposium was the announcement of a new Civil Rights Section within the Civil Division of the U.S. Attorney’s Office for the Southern District of Mississippi that will investigate and remedy civil rights violations within the district. The new Civil Civil Rights Section welcomes information from the public regarding possible violations of our nation’s civil rights laws.
The new Civil Civil Rights Section will collaborate with local community members, advocacy groups and other federal and state agencies in the area of civil rights, working to civilly enforce federal civil rights laws including the Fair Housing Act, Equal Credit Opportunity Act, Religious Land Use and Institutionalized Persons Act, Servicemembers Civil Relief Act, Americans with Disabilities Act, Title VII of the Civil Rights Act of 1964, and the Uniformed Services Employment and Reemployment Rights Act. Civil remedies under these statutes may include monetary penalties, injunctions, civil judgments and more.
Coinciding with the 25th Anniversary of the Americans with Disabilities Act of 1990 (ADA), the newly created Civil - Civil Rights Section has already been busy with a Polling Place Initiative launched in March, where the office reviewed polling places in Hinds County and Forrest County. The ADA prohibits discrimination on the basis of disability by places of public accommodation, including polling places, and requires such places comply with the accessibility standards established by the ADA’s implementing regulations. This initiative is in accordance with the Department of Justice’s congressionally-mandated responsibility to review compliance with the ADA and is not in response to any specific complaint against a polling place.
Today’s symposium, held at the Jackson Medical Mall, focused on the nation’s federal civil rights laws in the areas of disability, housing and education and highlighted the role of the U.S. Attorney’s Office in ensuring compliance and effective monitoring in the areas of affirmative civil rights enforcement. Other topics covered by various speakers during the event included: civil rights enforcement; military rights; disability rights; LGBT rights; discrimination in access to housing and credit; juvenile justice; school discipline; jails and policing; equal educational opportunities; and improving local communities through an active civil rights practice.
Participants, including members of various civil rights organizations, members of state and local bar associations, and local, state and federal officials, were able to raise questions or concerns regarding civil rights issues in the Southern District of Mississippi.
"Today’s Civil Civil Rights Symposium is an effort to let the public know that the United States Attorney’s Office is indeed a partner with other community advocates and organizations in enforcing the civil rights of all Mississippians," said Civil Division Chief Mitzi Dease Paige. "We are committed to advancing equal opportunity and we look forward to continuing to do justice for all people wherever and whenever we can."
Two dealers sentenced to Federal prison for drug crimesRead the Press Release
BECKLEY, W.Va. – Two men were sentenced today for federal drug crimes, announced Acting United States Attorney Carol Casto. Wilbur Arnold, Jr., 50, of White Sulphur Springs, was sentenced to three years in federal prison for possession with intent to distribute cocaine. In a separate prosecution, Michael Shepard, 23, of Beckley, was sentenced to ten months in federal prison for distribution of heroin.
Arnold admitted that on July 22, 2015, law enforcement authorities seized cocaine from his home that he intended to distribute. Along with the cocaine, Arnold further admitted to the possession of two handguns.
In a separate drug prosecution, Shepard admitted that on January 7, 2015, he sold heroin to a confidential informant cooperating with law enforcement. The drug deal took place on Hartley Avenue in Beckley.
The Arnold case was investigated by the Greenbrier County Sheriff’s Department and the Greenbrier Valley Drug and Violent Crime Task Force. The Southern Regional Drug and Violent Crime Task Force conducted the investigation of Shepard. United States District Judge Irene C. Berger imposed the sentences.
These cases were prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat illegal drugs in our communities. The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Two Charged with Distributing Heroin Involved in Overdose of Teenager in GrotonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that an investigation into a recent drug overdose death of a teenager in Groton has resulted in federal heroin distribution charges against two individuals. The charges stem from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
ADELE BOUTHILLIER, 42, of Groton, was arrested today on a federal criminal complaint charging her with possession with intent to distribute, and distribution of, heroin, and conspiracy to distribute heroin. RAMON GOMEZ, also known as “B.I.,” 40, of Uncasville, has been charged by complaint with the same offenses.
According the criminal complaint, in the early morning hours of May 29, 2016, members of the Groton Police Department and emergency services personnel responded to a Groton motel room on the report of a suspected drug overdose. The victim, a 17-year-old female, was administered two doses of NARCAN, which were deemed unsuccessful, before she was transported to the hospital and died later that morning.
It is alleged that GOMEZ brought the victim to the motel to engage in prostitution, and that the victim was staying in a room there with BOUTHILLIER. On the morning of May 28, 2016, BOUTHILLIER purchased a quantity of heroin from GOMEZ and gave it to the victim, who snorted it. At approximately 10:00 p.m. that day, BOUTHILLIER awoke to find the victim to be unresponsive with vomit coming out of her mouth. BOUTHILLIER waited approximately four hours before calling 911.
Following her arrest, BOUTHILLIER appeared before U.S. Magistrate Judge Joan G. Margolis and was ordered detained.
GOMEZ is currently in state custody on related charges.
U.S. Attorney Daly stressed that a complaint 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 Drug Enforcement Administration, Groton Police Department and Regional Community Enhancement Task Force. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Tax Return Preparer Pleads Guilty to Filing False Tax Returns with the IRSRead the Press Release
A tax return preparer pled guilty to filing false tax returns with the Internal Revenue Service (IRS).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Erica Antoinette Hollingsworth, 37, of Opa Locka, pled guilty to one count of aiding and assisting tax fraud, in violation of Title 26, United States Code, Sections 7206(2) and 2.
According to court documents, the IRS received information that Hollingsworth prepared a false tax return for an unemployed student claiming a $4,000 refund. Based on this information, an undercover agent (UC) met with Hollingsworth in an office at her house to discuss the filing of a tax return. The UC provided identification and a Form W-2 to Hollingsworth. In exchange, the defendant explained the tax filing process and advised that a refund in the “thousands” was possible.
IRS agents then executed a search warrant at Hollingsworth’s residence, where agents recovered tax returns and a computer. During the investigation, Hollingsworth stated that she was a self-employed tax return preparer and had compiled returns through her current company, EH&S Professional Services, LLC, and previous company, A&E Professional Services. Hollingsworth advised that she learned how to prepare tax returns from another individual, who taught her how to get clients inflated refunds even if they were not entitled to such refunds.
Hollingsworth ultimately admitted to entering false amounts on some of her clients' Form W-2s. Hollingsworth made between $60 to $500 for each return that she prepared. Hollingsworth filed approximately thirty-five fraudulent returns that falsely represented that the taxpayer worked for a company, earned wages, and had federal taxes withheld from those wages, even though the taxpayer never actually worked for the company.
Sentencing is scheduled for August 3, 2016 before U.S. District Judge Jose E. Martinez. At sentencing, Hollingsworth faces a maximum statutory sentence of three years in prison.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney John R. Byrne.
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.
Syracuse Man Sentenced for Social Security FraudRead the Press Release
SYRACUSE, NEW YORK - Blair Taylor, 51, of Syracuse, New York, was sentenced yesterday in United States District Court to one year in prison and three years of supervised release, after having previously pled guilty to defrauding the Social Security Administration ("SSA") of more than $87,000 over a period of several years, announced United States Attorney Richard S. Hartunian and Edward J. Ryan, Special Agent in Charge, Social Security Administration, Office of Inspector General.
Taylor was charged in a three-count indictment with theft of government money, making a false statement in an application for Social Security Disability Insurance Benefits ("DIB"), and concealing from the Social Security Administration ("SSA") years of employment income he earned while receiving DIB payments.
Taylor admitted that he applied for DIB in April 2006, claiming that he was totally disabled. Between April 2006 and January 2015, SSA paid Taylor approximately $87,138.90 as a result of his disability claim. While he was receiving these payments on a monthly basis, Taylor also earned income from various jobs using a different Social Security number than the one under which he and his dependent children were receiving Social Security benefits. Taylor concealed from SSA his employment and employment income under the second Social Security number, which would have affected his eligibility for benefits. In September 2010, Taylor attempted to obtain additional Social Security benefits to which he was not entitled by filing a disability claim under the second Social Security number. In his September 2010 application, Taylor falsely reported that he had never previously applied for benefits from SSA.
As part of his sentence, Taylor was ordered to make restitution payments to the Social Security Administration, in addition to serving his one-year term of imprisonment.
This case was investigated by the Social Security Administration, Office of Inspector General, and it was prosecuted by Assistant United States Attorney Michael F. Perry.
Southern Texas Man Sentenced for Drug ConspiracyRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that Sigifredo Bazan, a Mexican national, was sentenced on June 7, 2016, by United States District Court Judge Nancy J. Rosenstengel to 57 months in federal prison (there is no parole in the federal system) for conspiracy to distribute and possess with intent to distribute controlled substances, namely cocaine and methamphetamine.
According to Court documents, Bazan pled guilty in February 2016. Bazan admitted to distributing or agreeing to distribute 10 kilograms of cocaine and over 1300 pounds of marijuana during the conspiracy. In addition to the prison sentence, Judge Rosenstengel also ordered Bazan to serve a 2-year term of supervised release and to pay $100 in court fees.
Evidence obtained in this prosecution was under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Agencies participating in this case include the Drug Enforcement Administration and the Internal Revenue Service, Criminal Investigations. This case was prosecuted by Assistant United States Attorney Monica A. Stump.
Southco Enterprises, Inc. of Sherman, Texas, Ordered to Pay Penalties and Fines After Admitting it Unlawfully Stored Hazardous WasteRead the Press Release
DALLAS — The President and Chief Executive Officer of Southco Enterprises, Inc. of Sherman, Texas, James Alexander, who pleaded guilty last month on behalf of the corporation to a one-count Information charging treating, storing or disposing of hazardous waste without a permit, was in federal court again today for the corporation’s sentencing, announced U.S. Attorney John Parker of the Northern District of Texas.
U.S. District Judge Ed Kinkeade ordered Southco Enterprises, Inc. to pay $250,000 in monetary penalties consisting of: 1) a $150,000 criminal fine payable to the U.S. District Clerk; 2) $50,000 payable to the Southern Environmental Enforcement Network Training Fund in Birmingham, Alabama; and 3) $50,000 payable to Hutchins Fire and Rescue. The payments to Hutchins Fire and Rescue are to be specifically used to acquire, purchase, lease, contract for, maintain, calibrate, test, transport, stage or store specialized equipment and gear used exclusively for actions related to spills, leaks, emissions or release of toxic or hazardous materials constituting, or possibly leading to, environmental pollution in North Texas.
In addition, Judge Kinkeade ordered that Southco Enterprises, Inc. is subject to suspension and disbarment at the discretion of the U.S. Environmental Protection Agency.
“For years, the defendants knowingly stored hazardous waste with no regard to the serious public health and environmental dangers it posed and continued to ignore these risks when told to stop this dangerous practice,” said Christopher R. Brooks, Special Agent in Charge of EPA’s criminal enforcement program for Texas. “Today’s sentencing shows that those who refuse to comply with the law will be held to account and prosecuted.”
According to documents filed in the case, Southco Enterprises, Inc. operated several waste transportation vehicles in the Dallas area that were stored at facilities including Al-Kel Chemical, located on Goode Road in Hutchins, Texas. In approximately December 2007, Al-Kel Alliance, Inc., (Al-Kel) received a Notice of Violation from the Texas Commission on Environmental Quality for storing numerous 55-gallon drums and 350-gallon totes that contained unknown chemicals. The Notice of Violation also noted two stationery “box trailers” with totes and fiber pack drums. TCEQ instructed Al-Kel to evaluate all the containers, including the contents of the two trailers, conduct an adequate waste determination, and ship the waste to the appropriate facility.
From approximately October 1, 2010, through August 1, 2011, accumulated hazardous wastes were again stored on several “box trailers” owned by Southco and located at the Al-Kel facility. Southco knew the accumulated hazardous waste in the “box trailers” must be disposed of at an appropriate facility.
The case was investigated by the U.S. Environmental Protection Agency and the Texas Commission on Environmental Quality. Assistant U.S. Attorney Errin Martin and Deputy Criminal Chief Assistant U.S. Attorney Lisa J. Dunn prosecuted the case.
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Slidell Man Charged with Defrauding InvestorsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOHN GIBSON, age 31, of Slidell, was charged today in a one-count Bill of Information with mail fraud.
According to court documents, GIBSON solicited funds from individuals by falsely representing that he would use their funds to establish investment accounts from 2008 to 2014. During this time period, GIBSON defrauded his investors by diverting their investment funds for his own personal use and benefit.
GIBSON faces the maximum penalty of 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.
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 United States Postal Inspection Service in investigating this matter. Assistant United States Attorney Sean Toomey is in charge of the prosecution.
Shreveport man sentenced to 38 months in prison for stealing almost $400,000 from hospice providerRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Shreveport man was sentenced last week to 38 months in prison for stealing more than $397,000 from a privately held hospice company.
Demar Crozier Watson, 50, of Shreveport, was sentenced Friday by U.S. District Judge Elizabeth E. Foote on one count of federal program theft. He was also sentenced to three years of supervised release and ordered to pay $397,255.68 in restitution. According to evidence presented at the December 8, 2015 guilty plea, Watson worked as the office manager for a Shreveport hospice provider in 2012 and 2013. Watson was responsible for paying bills, payroll and reconciling the financials for the company. On November 7, 2013, Watson asked the owner to sign three blank checks he said would be used to pay bills for the company. After the hospice received a Medicare deposit for $176,442 on November 14, 2013, Watson wrote one of the checks to himself for $210,000. Watson obtained a cashier’s check funded with the stolen money to buy a 2014 Mercedes SL550 for a female escort for $140,000. According to evidence presented at sentencing, Watson also stole more than $90,000 by electronically transferring funds from the hospice’s bank accounts to his personal bank accounts. Watson made the transfers look legitimate by using a shell company he established and labeling them as legal fees. Watson also stole more than $96,000 from the hospice by fraudulently using a business credit card for personal items from various stores, a trip to Cabo San Lucas, Mexico, with the female escort, and a number of very expensive gifts.
The FBI, Bossier City Police Department, Shreveport Police Department and the Houston Police Department conducted the investigation. Assistant U.S. Attorneys Mike O’Mara and Cytheria D. Jernigan prosecuted the case.
Seven Arrested for Running Heroin Distribution ConspiracyRead the Press Release
DALLAS — Seven north Texas residents remain in federal custody following their arrests last week on federal charges outlined in a just-unsealed indictment that alleges various offenses related to their roles in a heroin distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
The arrests were made last Thursday by Special Agents with the Drug Enforcement Administration with assistance from officers with the Garland, Allen, and Rockwall Police Departments. The defendants made their initial appearances in federal court on Friday and detention hearings are being held this week.
Each of the below-listed defendants is charged with one count of conspiracy to possess with the intent to distribute heroin:
Brittany Anders, 31, of Rowlett
Sixto Rivera Bustillos, 43, of Garland
Jancs Fraire, aka “Jesus Luis Friar,” “Jesus Fraire,” and “Jay,” of Dallas
Rene Rodriguez, 30, of Dallas
Yovani Loyd Rodriguez, 22, of Dallas
Daniel Rojo, 31, of Allen
Marcus Stokes, 30, of PlanoAnders and Rojo are also each charged with one count of possession with intent to distribute heroin, one count of possession with intent to distribute methamphetamine, and one count of possession of a firearm in furtherance of a drug trafficking crime. Anders is also charged with one count of possession with intent to distribute and distribution of heroin.
Bustillos is also charged with one count of possession with intent to distribute methamphetamine and one count of possession with intent to distribute and distribution of heroin.
Fraire is also charged with one count of possession with intent to distribute heroin and one count of possession with intent to distribute heroin and distribution of heroin.
Rodriguez is also charged with one count of possession with intent to distribute heroin and two counts of possession with intent to distribute and distribution of heroin.
Stokes is also charged with one count of possession with intent to distribute heroin.
A federal indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. However, if convicted, the conspiracy count carries a maximum statutory penalty of 20 years; the firearm count carries a minimum penalty of five years and a maximum statutory penalty of life; the heroin distribution counts each carry a maximum statutory penalty of 20 years; and the methamphetamine distribution counts carry a mandatory minimum penalty of five years and a maximum statutory penalty of 40 years. Fines could range from $250,000 to $4,000,000. The indictment also includes a forfeiture allegation that would require the defendants, upon conviction, to forfeit a business on Corinth Street in Dallas and various firearms.
The case is being prosecuted by Assistant U.S. Attorney Suzanna Etessam.
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Schenectady Man Sentenced to 15 Months for Dealing Firearms Without a LicenseRead the Press Release
ALBANY, NEW YORK – Sharma Sukdeo, age 21, of Schenectady, New York, was sentenced today to serve 15 months in prison for dealing firearms without a license.
The announcement was made by United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Federal Bureau of Investigation, Albany Division.
Senior United States District Judge Lawrence E. Kahn also imposed a $3,000 fine and a 2-year term of supervised release, to begin after Sukdeo’s release from prison.
Sukdeo was indicted on March 18, 2015 on one count of dealing firearms without a license and pled guilty on December 30. According to the plea agreement, between September 18, 2014 and October 19, 2014, Sukdeo sold three firearms and ammunition to a person working with the Federal Bureau of Investigation: (1) a Glock Model 23 .40-caliber pistol and 13 bullets; (2) a Star Firestar Plus 9mm pistol; and (3) a Cobra Model FS .380-caliber handgun. Each sale was completed at a convenience store in Schenectady. As part of his plea agreement, Sukdeo admitted that he sold these firearms for profit and that he made the sales despite not being licensed to do so by the federal government or any state.
This case was investigated by the Federal Bureau of Investigation and the Capital District Safe Streets Task Force, and was prosecuted by Assistant U.S. Attorneys Sean O’Dowd and Kofi Sansculotte.
Saratoga Springs Man Indicted for Distributing Heroin that Resulted in DeathRead the Press Release
ALBANY, NEW YORK – Matthew P. Charo, age 34, of Saratoga Springs, New York, was indicted today and accused of distributing heroin to a woman who died from taking it.
The announcement was made by United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.
Charo has been in jail since October 26, 2015, when he was arrested on a criminal complaint. According to that complaint, on the night of October 2, 2014, Charo provided heroin to a woman identified in the complaint as “K.S.,” who took the heroin and was found dead later that night at her home in Saratoga County; the cause of death was acute heroin intoxication.
U.S. Attorney Richard S. Hartunian stated: “Any dose of heroin can kill, and we have seen so many heroin overdose deaths in our communities. Heroin dealers are playing Russian roulette, not only with the lives of their customers, but also with their own fates. Since any dose can kill, any dose could send a heroin dealer to prison for many years.”
Special Agent in Charge Andrew W. Vale stated: “Heroin is death. Between 2002 and 2013, the rate of heroin-related deaths nearly quadrupled. This is an epidemic touching every segment of society, and the FBI remains dedicated to pursuing those who seek to poison our communities with drugs.”
The charges in the complaint and indictment are merely accusations. The defendant is presumed innocent until proven guilty.
If convicted of the offense of distributing heroin resulting in death, Charo faces at least 20 years and up to life in prison. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorney Daniel Hanlon.
Rochester Man Sentenced on Firearms and Heroin Possession ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr., announced today that Timothy C. Fitzpatrick, 40, of Rochester, NY, who was convicted of possession of heroin with intent to distribute and possession of a firearm and ammunition while being a previously convicted felon, was sentenced to 151 months in prison by U.S. District Elizabeth A. Wolford.
Assistant U.S. Attorney Charles E. Moynihan, who handled the case, stated that on April 23, 2015, law enforcement officers from the Greater Rochester Area Narcotics Enforcement Team executed a search warrant at 127 Evergreen Street, Apartment #2, in the Rochester. Upon entry, officers detained Fitzpatrick inside of the location and searched it. They seized a loaded Raven Arms .25 caliber semi-automatic pistol, along with heroin and cocaine packaged for sale. Officers also seized drug paraphernalia. Fitzpatrick also had United States currency in his front pants pocket.
The investigation revealed that Fitzpatrick had previously been convicted of Criminal Possession of a Controlled Substance in the Third Degree in 2005, Criminal Sale of a Controlled Substance in the Fifth Degree, in 200, and Attempted Criminal Sale of a Controlled Substance in the Third Degree in 1999. As a result, the defendant is unable to lawfully possess a firearm.
The sentencing is the culmination of an investigation on the part the Greater Rochester Area Narcotics Enforcement Team composed of law enforcement personnel from the Bureau of Alcohol, Tobacco, Firearms and Explosives under the direction of Special Agent in Charge Delano A. Reid, New York Field Office and the Monroe County Sheriff’s Office, under the direction of Monroe County Sheriff Patrick O’Flynn.
Rapid City Man Indicted for Using the Internet to Engage in Illegal Sexual ActivityRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Sexual Exploitation of a Minor, Enticement of a Minor Using the Internet, and Receipt of Child Pornography.
Shane Douglass Davison, age 35, was indicted on May 24, 2016, and appeared before U.S. Magistrate Judge Daneta Wollmann on June 3, 2016. He pleaded not guilty to the Indictment.
The penalty upon conviction is a mandatory minimum of 15 years of imprisonment, a $250,000 fine, lifetime of supervised release, and a $5,000 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Davison using a cell phone and computer to engage in illegal sexual activity with minor females located in the Philippines. The charges are merely an accusation and Davison is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Davison was detained pending trial. A trial date has been set for July 26, 2016.
Rapid City Man Indicted for EscapeRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Escape from Custody.
Elias LaPointe, age 23, was indicted on May 24, 2016, and appeared before U.S. Magistrate Judge Daneta Wollmann on June 3, 2016. He pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 5 years of imprisonment, a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to LaPointe leaving the Community Education Center halfway house and not returning as instructed. The charge is merely an accusation and LaPointe is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
LaPointe was detained pending trial. A trial date has been set for July 26, 2016.
Railroad Derailments: Preparedness is the Key to Ensure Public SafetyRead the Press Release
CEDAR RAPIDS, IA – Last August, the United States Attorney’s Office for the Northern District of Iowa organized and hosted the Iowa Railroad Safety Symposium on the Des Moines Area Community College campus in Ankeny, Iowa. The purpose of the program was to bring together members of the various disciplines and agencies that work in all aspects of public safety at the federal, state and local level to better understand and be better prepared to address safety challenges connected to railroad, pipeline, and hazardous materials transportation.
Since the Symposium was held, the Iowa Department of Transportation and the Iowa Homeland Security and Emergency Management Department completed a study of crude oil and biofuels railroad transportation incident response preparedness in Iowa, which provides excellent information and analysis on several of the topics discussed last August. The final study is called the Iowa Crude Oil and Biofuels Rail Transportation Study.
The full study as well as summary documents can be found at: http://www.iowadot.gov/iowarail.
The oil train derailment that occurred in Oregon last week again demonstrates the importance of continued vigilance of federal, state and local agencies in working together to be prepared to address safety challenges connected to railroad, pipeline, and hazardous materials transportation. An AP story on that derailment can be found at:
http://abcnews.go.com/International/wireStory/oil-train-derailment-fire-damaged-oregon-city-water-39626260.
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Pine Ridge Man Indicted for Assault and KidnappingRead the Press Release
United States Attorney Randolph J. Seiler announced that a Pine Ridge, South Dakota, man has been indicted by a federal grand jury for Kidnapping, Assault with a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, and Assault by Strangulation and Suffocation.
Tommy Blue Bird, age 27, was indicted on May 24, 2016. Blue Bird appeared before U.S. Magistrate Judge Daneta Wollmann on June 3, 2016, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is life imprisonment and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Blue Bird holding a female against her will and assaulting her at Pine Ridge. The charges are merely an accusation and Blue Bird is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Blue Bird was remanded to the custody of the U.S. Marshals Service pending trial.
Physician Sentenced to One Year in Prison for Accepting More Than $174,000 in Bribes for Referrals to Mobile Diagnostic CompanyRead the Press Release
TRENTON, N.J. – An internal medicine physician practicing in Jamesburg, New Jersey, was sentenced today to 12 months in prison for accepting bribes in exchange for patient referrals to a mobile diagnostic company, U.S. Attorney Paul J. Fishman announced.
Paresh Patel, 55, of Franklin Township, New Jersey, previously pleaded guilty before U.S. District Judge Mary L. Cooper to an information charging him with violating the Anti-Kickback Statute. Judge Cooper imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
From September 2009 through December 2013, Paresh Patel accepted more than $174,000 in bribes for referring his patients to the Morris County-based mobile diagnostic testing company, Biosound Medical Services (referenced in the Information as “Company 1”), operated by Nita K. Patel and Kirtish N. Patel (no relation to Paresh Patel). As part of the bribes, Biosound Medical Services paid Paresh Patel’s property tax obligations and home renovation expenses.
In addition to the prison term, Paresh Patel was also ordered to pay a $6,000 fine. He has also forfeited more than $174,000 he received as part of the bribery scheme.
Nita K. Patel and Kirtish N. Patel, pleaded guilty on Nov. 17, 2015 to health care fraud for forging physician signatures on diagnostic reports that were never reviewed by a specialist physician and were actually authored by Kirtish N. Patel, who did not have a medical license. Both await sentencing.
U.S. Attorney Fishman credited special agents of the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge
Scott J. Lampert, and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
U.S. Attorney Fishman reorganized the health care fraud practice shortly after taking office, creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.29 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Riza Dagli Esq.
Peosta Warehouseman Pleads Guilty to Stealing over $400,000 and to Making False Statements to Obtain LoansRead the Press Release
A Dubuque area man, who sold over $400,000 worth of goods from his employer using the Internet, pled guilty today to mail and financial fraud charges in federal court in Cedar Rapids.
Chad Michael Saeugling, 39, currently from Asbury, Iowa, was convicted of one count of mail fraud and two counts of making a false statement to a financial institution.
At the plea hearing, and in a written plea agreement, Saeugling admitted he was employed as a supervisor at a Peosta, Iowa, warehouse between 2004 and 2014. Beginning no later than calendar year 2009, and continuing until August 2014, Saeugling executed a scheme to defraud his employer by selling the company’s goods on the Internet. Specifically, Saeugling advertised goods found in the warehouse on eBay, an Internet marketplace. Once an eBay shopper paid him for items, often using PayPal, Saeugling placed his own UPS or FedEx shipping label on the stolen goods, and then shipped the stolen goods out of the warehouse along with the items the company was shipping to its customers. Saeugling then, to further evade detection, used his access to the computerized inventory system to falsely adjust the stolen item out of the company’s inventory.
Shortly after Saeugling’s mail fraud scheme was discovered (and his employer fired him), Saeugling agreed to purchase a house from his father. In order to secure a home mortgage loan for the property in late 2014, Saeugling made a false statement concerning his income to a federally insured credit union. Saeugling also falsely told the credit union that his father had gifted him $22,000 to purchase the home when, in truth, Saeugling had previously supplied his father with the money, which his father then routed through two different bank accounts before providing the it back to Saeugling at the time of closing on the home.
Finally, in early 2015, Saeugling and his wife applied for a home-equity loan on the house he had purchased from his father. In that application he submitted false statements to his credit union. To receive the home equity loan, Saeugling later made another false statement to the credit union concerning his income.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Saeugling remains free subject to certain terms and conditions pending sentencing. He faces a possible maximum sentence of 80 years’ imprisonment, a $2.25 million fine, $300 in special assessments, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Timothy L. Vavricek and was investigated by the Dubuque County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-1023-LRR.
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Paul Hebert Sentenced to Four Year Term of Probation and $5,000 Fine for Social Security and Medicaid FraudRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Paul Hebert, 51, of Gloucester, Massachusetts, formerly of Barre, Vermont, was sentenced today for Social Security fraud and Medicaid fraud. Chief District Judge Christina Reiss sentenced Hebert to a four year term of probation, a $5,000 fine, and ordered to pay restitution totaling $53,660.57.
According to Court records, Hebert applied for Supplemental Security Income (SSI) in May 2009 while residing in the State of Vermont. After Hebert’s application was denied, he requested a formal hearing before an Administrative Law Judge. During that hearing, Hebert made multiple material false statements under oath regarding his ability to perform basic life activities, such as driving and lifting household objects. Yet before and after the hearing, Hebert worked as a commercial fisherman. Hebert’s material false statements resulted in the Administrative Law Judge finding him to be both disabled and financially eligible to receive SSI benefits.
On November 18, 2010, Hebert received formal notification of the approval of his SSI application, and was informed of his obligation to review his prior statements regarding his income, correct any errors, and report any future changes to the Social Security Administration (SSA). The November 18, 2010 letter included Hebert’s prior statements that he had no income beyond state assistance. In fact, Hebert had been gainfully employed on commercial fishing vessels throughout October 2010. Hebert proceeded to collect SSI disability payments until April 4, 2013 by direct deposit into his bank account, totaling $34,555.88. In addition, Hebert signed a contract on September 13, 2011 to appear on the reality television show “Wicked Tuna,” with shooting that began on September 25, 2011, and regularly occurred thereafter. Episodes of “Wicked Tuna” began to air on television in April 2012. In total, defendant Hebert received approximately $2,565 of earned income in 2009; approximately $8,301.81 of earned income in 2010; $13,114.29 of earned income in 2011; and $38,893.05 of earned income in 2012; all while he continued to receive SSI disability payments. None of this income was declared to SSA, as required by law.
On February 24, 2009, Hebert applied for Medicaid through the Vermont Agency of Human Services while he was residing in Vermont. Questions on his initial application, designed to ascertain whether he was financially eligible for Medicaid, included whether he owned a vehicle, whether he had income, whether he lived with anyone, and whether he owned real estate, a mobile home, land, or a house. Hebert falsely responded that he lived alone, had no income, had no vehicles, and did not own any listed assets.
Hebert received notice, as part of the Medicaid program, that he was obligated to report changes in circumstances from those listed on the form. He was also required to complete interim reports with the Vermont Agency of Human Services. In his October 6, 2011 interim report, Hebert declared he had no new income when, in fact, he had received income from fishing since 2009, and had just begun shooting the television show 11 days prior to completing the report. In total, Medicaid claims of $9,506.59 were paid for health care services provided to Hebert in the State of Vermont before his benefits were terminated in approximately October 2012. At no point did Hebert report his changes in income or the above asset transactions as he was required to do.
“It is outrageous that Paul Hebert pretended to be disabled and poor in order to collect Medicaid benefits, while at the same time starring as a captain of a fishing boat in a national TV reality show,” said Special Agent in Charge Phillip M. Coyne, Department of Health and Human Services Office of Inspector General, Boston Regional Office. “Our agency will continue to work hard with our law enforcement partners to protect this taxpayer-funded program from such fraud schemes.”
"Mr. Hebert falsely claimed to be disabled and concealed income information to defraud Social Security and the State of Vermont, while his tuna fishing activities were featured in a reality television series," said Scott Antolik, Special Agent-in-Charge of the SSA Office of the Inspector General, Boston Field Division. "This is an unacceptable offense, because Supplemental Security Income and Medicaid are intended to benefit our most vulnerable citizens. As this case demonstrates, the SSA Office of the Inspector General is committed to upholding the integrity of these critical programs through collaborative efforts with State and Federal agencies."
United States Attorney Eric S. Miller commended the efforts of the SSA Office of Inspector General, Boston Field Division; HHS Office of the Inspector General, Boston Regional Office; and the National Oceanic Atmospheric Administration, Office of Law Enforcement, in the investigation and prosecution of Hebert. Miller added, “Mr. Hebert’s flagrant abuse of the Social Security system is galling. He demonstrated a profound disrespect for the taxpayers who fund our social safety net and for the Vermonters who must rely upon it to help meet their most basic needs. I am pleased that our prosecution forced Mr. Hebert to repay every cent he stole.”
Hebert was represented by Paul S. Volk, Esq. The United States was represented by Assistant U.S. Attorney Jonathan A. Ophardt.
Orlando Man Arrested for Possessing Child PornographyRead the Press Release
Fort Myers, FL – United States Attorney A. Lee Bentley, III announces the arrest and filing of criminal complaint charging Jorge Guerrero-Torres (28, Orlando) with possessing child pornography. If convicted, he faces a maximum penalty of 20 years in federal prison. Guerrero-Torres made his initial appearance in federal court on June 6, 2016, in Fort Myers. He remains detained pending further proceedings. A preliminary hearing is scheduled for June 20, 2016, at 1:30 p.m., before U.S. Magistrate Judge Mac R. McCoy.
According to the complaint, on May 29, 2016, the Lee County Sheriff’s Office responded to a call regarding a missing child. During the ensuing investigation, officers learned that Guerrero-Torres had resided at that home for several months, and had recently moved out. Law enforcement officers contacted Guerrero-Torres, who provided a statement regarding his whereabouts on the day of the child's disappearance. Investigators later obtained a search warrant for the recovery of records related to Guerrero-Torres’ cellphone, including historical geographical tracking data. The phone, abandoned by Guerrero-Torres, was ultimately recovered by law enforcement and a forensic examination of the device revealed multiple images of child pornography.
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 was investigated by the Lee County Sheriff’s Office, the Federal Bureau of Investigation and the Florida Department of Law Enforcement. It will be prosecuted by Assistant United States Attorney Jesus M. Casas.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Ohio couple plead guilty to marijuana traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Robert Bamberger, 53, and Tammy Bamberger, 47, both of Martins Ferry, Ohio, pled guilty in federal court in Wheeling today to marijuana trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Robert and Tammy Bamberger were discovered in November 2015 in possession of a package containing more than 14 pounds of marijuana that had been shipped from California to Ohio County, West Virginia.
They each pled guilty today to one count of “Possession with Intent to Distribute Marijuana.” They each face up to five years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Vogrin prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, the Pennsylvania State Police, and the United States Postal Inspection Service investigated.
U.S. Magistrate Judge James E. Seibert presided.
Ohio Lobbyist Sentenced to 15 Months for Extortionate Role in Conduit Campaign Contribution SchemeRead the Press Release
WASHINGTON – An Ohio lobbyist was sentenced today to 15 months for engaging in extortion in connection with a bribery and fraud scheme involving conduit contributions to the campaigns of elected officials.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio and Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division made the announcement.
John P. Raphael, 61, of Columbus, Ohio, was sentenced by U.S. District Judge Michael H. Watson of the Southern District of Ohio. Raphael pleaded guilty to a one-count information charging him with a violation of the Hobbs Act on Oct. 15, 2015.
According to the plea agreement, Raphael was a consultant and lobbyist based in Columbus. From March 2005 to February 2013, a red light camera enforcement company engaged Raphael to seek and obtain lucrative contracts with the cities of Columbus and Cincinnati, he admitted. During that time, according to admissions made in his plea, Raphael conveyed to the company specific solicitations for campaign contributions on behalf of elected officials in Columbus and Cincinnati, and repeatedly pressured and induced the company to make contributions by advising the company that it would lose its contracts if it did not.
Raphael admitted that, as a result of his actions, the company made over $70,000 in campaign contributions, which were funneled through Raphael in his own name and in the names of his family members, friends and business associates.
Karen L. Finley, the former CEO of the red light camera vendor, previously pleaded guilty to conspiracy to commit federal programs bribery and honest services wire and mail fraud.
The FBI Cincinnati Division’s Columbus Resident Agency investigated the case with the assistance of IRS-Criminal Investigations and the Ohio Bureau of Criminal Investigation. Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney J. Michael Marous of the Southern District of Ohio are prosecuting the case.
Ohio Lobbyist Sentenced to 15 Months for Extortionate Role in Conduit Campaign Contribution SchemeRead the Press Release
An Ohio lobbyist was sentenced today to 15 months for engaging in extortion in connection with a bribery and fraud scheme involving conduit contributions to the campaigns of elected officials.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio and Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division made the announcement.
John P. Raphael, 61, of Columbus, Ohio, was sentenced by U.S. District Judge Michael H. Watson of the Southern District of Ohio. Raphael pleaded guilty to a one-count information charging him with a violation of the Hobbs Act on Oct. 15, 2015.
According to the plea agreement, Raphael was a consultant and lobbyist based in Columbus. From March 2005 to February 2013, a red light camera enforcement company engaged Raphael to seek and obtain lucrative contracts with the cities of Columbus and Cincinnati, he admitted. During that time, according to admissions made in his plea, Raphael conveyed to the company specific solicitations for campaign contributions on behalf of elected officials in Columbus and Cincinnati, and repeatedly pressured and induced the company to make contributions by advising the company that it would lose its contracts if it did not.
Raphael admitted that as a result of his actions, the company made over $70,000 in campaign contributions, which were funneled through Raphael in his own name and in the names of his family members, friends and business associates.
Karen L. Finley, the former CEO of the red light camera vendor, previously pleaded guilty to conspiracy to commit federal programs bribery and honest services wire and mail fraud.
The FBI Cincinnati Division’s Columbus Resident Agency investigated the case with the assistance of IRS-Criminal Investigation and the Ohio Bureau of Criminal Investigation. Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney J. Michael Marous of the Southern District of Ohio are prosecuting the case.
Nurse-Practitioner Indicted on Federal Charges, Accused of Illegally Distributing OxycodoneRead the Press Release
WASHINGTON - Ivan Lamont Robinson, a licensed nurse practitioner who was based in Southeast Washington, has been indicted on federal charges that he distributed oxycodone outside the legitimate scope of professional practice and without a legitimate medical purpose.
The indictment was announced by U.S. Attorney Channing D. Phillips; Karl C. Colder, Special Agent in Charge of the Washington Division Office of the Drug Enforcement Administration (DEA); Nicholas DiGiulio, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), for the region that includes Washington, D.C.; Robert E. Craig, Jr., Special Agent in Charge of the Mid-Atlantic Field Office of the Defense Criminal Investigative Service (DCIS), and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Robinson, 44, of Washington, D.C., was indicted on June 7, 2016, by a grand jury in the U.S. District Court for the District of Columbia, on a total of 55 felony counts. The indictment became public today, and Robinson is to appear in court at a later date. The case is assigned to the Honorable Colleen Kollar-Kotelly. Each of the 55 counts carries a statutory maximum of 20 years in prison and a maximum fine of $1 million. Under federal sentencing guidelines, the charges carry a potential range of 97 to 121 months in prison.
According to the government’s evidence, Robinson conducted a pain management practice from 2011 until 2013 in the 2000 block of Martin Luther King Jr. Avenue SE. His practice received numerous complaints from civilians in the area and from other health care professionals, including pharmacists, who suspected that he was operating a “pill mill” rather than a medical pain management practice.
Law enforcement executed numerous search warrants involving his practice on June 19, 2013. After a meeting with officials of DEA, he voluntarily relinquished his DEA license, which had authorized him to write prescriptions for controlled substance medication. Under D.C. Board of Health rules, he had been permitted to write prescriptions and treat certain patients without supervision by a licensed physician. The indictment alleges that he wrote 55 prescriptions for various patients. Each patient received the same prescription, that is, 60 tablets of 30 mg oxycodone.
“Pill mill” prosecutions are common in the United States, but this appears to be the first of its kind to be prosecuted by the U.S. Attorney’s Office for the District of Columbia. “Pill mill” is a shorthand terminology for a medical practice which begins selling prescriptions to customers, usually for cash. Pill mill practices are characterized by practitioners who cease treating patients. For example, when a health care professional ceases conducting medical histories of patients, refrains from conducting physical examinations, neglects to keep adequate medical records listing diagnosis and treatment plans, and simply sells patients prescriptions for opioids, like oxycodone, in exchange for cash, then such conduct is not in the usual course of professional practice. In those instances, health care professionals can face prosecution for distribution of controlled substances.
“Doctors and health care professionals have a responsibility to the public to prescribe opioid medications carefully, and when there is a legitimate medical purpose to do so, and not merely to feed someone’s addiction,” said U.S. Attorney Phillips. “Together with our law enforcement partners, we are committed to combatting the problem of opioid abuse.”
“Most health care professionals adhere to strict standards when caring for their patients,” said Special Agent in Charge Colder. “However, in this instance, Mr. Robinson is accused of using his position to prescribe oxycodone for the sole purpose of making money, ultimately putting lives in danger. This indictment, numerous search warrants and subsequent arrest demonstrates that DEA is dedicated to dismantling “pill mill” operations. When prescriptions are obtained through rogue pain management clinics and then sold on the streets, it creates and feeds a new generation of users and addicts. These addicts will continue to abuse the illegal prescriptions, or switch to a cheaper and more potent drug; heroin. DEA would like to thank its law enforcement partners for their diligent efforts to keep the citizens of Washington, D.C. safe.”
“This indictment is part of an ongoing effort by the Defense Criminal Investigative Service (DCIS) to aggressively investigate allegations of health care fraud that affect the Department of Defense and put its personnel at risk,” said Special Agent in Charge Craig. “DCIS will continue working with our law enforcement partners to make health care fraud an investigative priority.”
According to the Center for Disease Control, in 2011, three-quarters of prescription overdose deaths involved a prescription for an opioid pain reliever, such as oxycodone. While these medicines have a legitimate medical use for alleviating pain, they are in such great demand that opioids and heroin are now the number one drug threat to our region and to the nation. As President Obama pointed out in May 2016, "Drug overdoses now take more lives every year than traffic accidents. Deaths from opioid overdoses have tripled since 2000. A lot of the time, they're from legal drugs prescribed by a doctor.”
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the indictment, U.S. Attorney Phillips, Special Agent in Charge Colder, Special Agent in Charge DiGiulio, Special Agent in Charge Craig, and Chief Lanier commended the work of Assistant U.S. Attorneys John P. Dominguez and John Han, who are prosecuting the case. They also expressed appreciation for the assistance provided by Paralegal Specialist Jeannette Litz of the U.S. Attorney’s Office. Finally, they acknowledged the work of those who are investigating the case, including Metropolitan Police Department Officer Karen Taylor Arikpo and DEA Drug Diversion Investigator Shirley Powell, both from the DEA’s Tactical Drug Diversion Squad; Special Agent Tracy McFadden of the Office of Inspector General for the U.S. Department of Health and Human Services; and Special Agent Nacieve Owens of the Department of Defense, Defense Criminal Investigative Service.
North Carolina Man Sentenced in Tax Refund Fraud SchemeRead the Press Release
A Raleigh, North Carolina, man was sentenced to 71 months in prison today after pleading guilty in February to one count of conspiracy to commit theft of public money and one count of theft of public money, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Wilfredo Acosta Hidalgo, 47, in 2011 and 2012, conspired with check cashers to cash U.S. Treasury refund checks issued as a result of fraudulently-filed tax returns, according to court documents. Hidalgo provided the check cashers with U.S. Treasury checks issued to third parties in whose name the fraudulent returns were filed. The check cashers deposited the U.S. Treasury checks into their business bank accounts and provided Hidalgo with cash equal to the value of the U.S. Treasury checks, less a check-cashing fee. The third-party payees were not present when the checks were cashed.
In addition to the prison term, Hidalgo was ordered to serve three years of supervised release and pay $4,280,871 in restitution to the Internal Revenue Service (IRS).
Acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Lauren Castaldi and Nathan Brooks of the Tax Division, who prosecuted this case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Norman Seabrook, President of Correction Officers’ Benevolent Association, Arrested for Demanding and Accepting Bribes in Exchange for Investing Union Money in New York-Based Hedge FundRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that NORMAN SEABROOK and MURRAY HUBERFELD were arrested this morning and charged in Manhattan federal court with committing honest services wire fraud, in connection with HUBERFELD’s payment of a $60,000 bribe to SEABROOK, the President of the Correction Officers’ Benevolent Association (“COBA”), and the promise of future bribe payments, in exchange for SEABROOK’s investment of $20 million of COBA money in HUBERFELD’s hedge fund. SEABROOK was arrested this morning by FBI agents in the Bronx, and HUBERFELD was arrested this morning by FBI agents in Manhattan. They will be presented before U.S. Magistrate Judge Kevin N. Fox in Manhattan this afternoon.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Norman Seabrook and Murray Huberfeld engaged in a straightforward and explicit bribery scheme. For a Ferragamo bag stuffed with $60,000 in cash, Seabrook allegedly sold himself and his duty to safeguard the retirement funds of his fellow correction officers. Norman Seabrook, as COBA’s president for over two decades, allegedly made decisions about how to invest the nest egg for thousands of hard-working public servants, based not on what was good for them, but on what was good for Norman Seabrook.”
FBI Assistant Director-in-Charge Diego Rodriquez said: “When an official takes advantage of his or her position as steward of an organization’s financial resources in order to line their own pockets, it is a dereliction of duty for someone trusted to protect the financial contributions of the hard working men and women who belong to the organization. When a hedge fund manager provides bribe payments to organizations to gain their business, he or she puts the financial security of the fund’s investors at risk. This kind of criminal collusion destabilizes the system and undermines investors’ confidence in the integrity of the marketplace. The FBI, along with our partners, will continue to work to protect our citizens from the destructive consequences of corruption and deceit.”
According to the allegations in the Complaint filed yesterday in Manhattan federal court[1]:
COBA is New York City’s largest correction officers union and the largest municipal jail union in the United States. COBA represents over 9,000 correction officers in New York City, including at Riker’s Island. NORMAN SEABROOK, the defendant, is the President of COBA and has been for over 20 years. SEABROOK’s power over the affairs of COBA is rarely questioned by his Executive Board due to his ability to affect their assignments, pay, and hours. SEABROOK’s control extends to the union’s finances, including the administration of its “Annuity Fund,” a retirement benefits program funded by the City of New York that invests more than $70 million for correction officers’ retirements.
Toward the end of 2013, on a trip to the Dominican Republic with, among others, an individual who is now a cooperating witness for the Government (“CW-1”), SEABROOK told CW-1 that he worked hard to invest COBA’s money and was not getting anything out of it, and it was time that “Norman Seabrook got paid.” CW-1 was friendly with and had done business with MURRAY HUBERFELD, a founder and part owner of Platinum Partners (“Platinum”), a Manhattan-based hedge fund that principally ran two funds. CW-1 was aware that Platinum was looking to attract public and institutional investors – as opposed to its more typical investor set of high net-worth individuals – and told HUBERFELD that SEABROOK would likely invest COBA money in Platinum if HUBERFELD were willing to pay SEABROOK money. HUBERFELD agreed to the proposition, and HUBERFELD worked out a formula in which SEABROOK would be paid a kickback of a portion of the profits from COBA’s investment that HUBERFELD estimated could be between $100,000 and $150,000 per year.
SEABROOK then began investing COBA’s money, at first going through the motions of having Platinum make a pitch to COBA’s Annuity Fund board and having advisers conduct diligence. Those advisers included attorneys who expressed concern that public pensions like COBA do not typically invest in higher-risk vehicles like hedge funds. In March 2014, COBA’s Annuity Fund made a $10 million investment in one of Platinum’s funds. In June 2014 – this time without running the investment by the COBA Board or seeking any approval – SEABROOK invested $5 million, or 40 percent, of COBA’s own assets in the same fund. In August 2014, the Annuity Fund invested another $5 million in Platinum. By that point, COBA was the largest investor in that Platinum fund for all of 2014, and amounted to more than half of all incoming investments for the fund. At the same time, the fund was experiencing significant redemptions by other investors.
Toward the end of 2014, SEABROOK wanted the first of his kickback payments, and demanded it from CW-1. HUBERFELD told CW-1 that the fund had not performed as well as expected, and that he could pay SEABROOK only $60,000. CW-1 agreed to lay out the cash, and HUBERFELD agreed to reimburse CW-1 on Platinum’s behalf. HUBERFELD suggested that to paper over the reimbursement, CW-1 invoice Platinum for a number of CW-1’s tickets to the Knicks, in the amount of $60,000, and Platinum would then cut a check to CW-1.
CW-1 paid SEABROOK the first $60,000 kickback on December 11, 2014. Before meeting SEABROOK that evening, CW-1 went to one of SEABROOK’s favorite stores, Salvatore Ferragamo on Fifth Avenue in Manhattan, and bought an expensive bag for SEABROOK. CW-1 put the money in the bag, and met SEABROOK a few blocks away in SEABROOK’s COBA vehicle, where he handed SEABROOK the bag. CW-1 and SEABROOK had dinner with two other persons, then attended a Torah dedication ceremony, after which SEABROOK left Manhattan. These events have been corroborated by, among other things, phone records, e-mails, license plate reader records, and a receipt from Salvatore Ferragamo. On the same day, CW-1’s assistant prepared a $60,000 invoice to Platinum for Knicks tickets, which CW-1 forwarded by e-mail to HUBERFELD. Three days later, Platinum paid CW-1 by check.
HUBERFELD, through another co-conspirator not identified in the Complaint, continued to lobby SEABROOK for more money in 2015. However, after a lawsuit filed by a former COBA board member referred to the Platinum investments, and the U.S. Attorney’s Office grand jury investigation resulted in subpoenas to Platinum and COBA in May 2015, no further investments were made.
* * *
SEABROOK, 56, of the Bronx, New York, and HUBERFELD, 55, of Manhattan New York, have been charged with one count of conspiracy to commit honest services wire fraud, and one count of honest services wire fraud. Each of the two counts carries a maximum term of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the investigative work of the FBI, the NYPD Internal Affairs Bureau, and the Internal Revenue Service’s Criminal Investigations Division, and noted that the investigation is continuing.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Martin Bell, Russell Capone, and Kan M. Nawaday are in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[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.
Niagara County Man Pleads Guilty to Threatening the PresidentRead 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 Jared Brown, 19, of Niagara County, NY, pleaded guilty to threatening the President of the United States. The charge carries a maximum penalty of 5 years in prison.
Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that on September 6, 2015, the defendant called the Lockport City Police Department through the 911 Emergency Call Center and made oral threats over the telephone. During this call, Brown stated to an employee that he would kill President Obama. When a Secret Service Agent asked the hypothetical question what Brown would do if the President walked into the interview room, Brown said he would shoot him.
The plea is the result of an investigation by the United States Secret Service, under the direction of Assistant Special Agent in Charge Thomas Braun.
Sentencing is scheduled for September 15, 2016 at 12:30 p.m.
New York Man Sentenced to over 16 Years for Drug Conspiracy and Firearm ChargeRead the Press Release
Contact: Daniel J. Perry
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Wayman Sparrow a/k/a “Blaze”, 25, of Bronx, New York, was sentenced yesterday in U.S. District Court by Chief Judge Nancy Torresen to 196 months in prison and three years of supervised release for conspiring to distribute heroin and crack and firing a firearm while trafficking drugs. Sparrow pleaded guilty to the charges on December 22, 2015.
According to court records, Sparrow was one of a group of New York men who came to Maine in 2011 and proceeded to regularly distribute heroin and crack cocaine from various apartments in Portland. In late 2012, Sparrow had a falling out with the group and began distributing the drugs for himself. In March 2013, Sparrow was distributing heroin from an apartment at the Lafayette Arms Apartment in Portland when the leader of the conspiracy confronted him. Sparrow and this leader engaged in a shootout inside the Lafayette Arms Apartments. In June 2013, Sparrow was arrested in South Portland by state drug agents and found in possession of heroin and the firearm that he used in the shootout.
This case resulted from a joint investigation conducted by the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency and the Portland Police Department, with valuable assistance provided by Maine State Police Crime Lab.
New York Doctor Sentenced to 37 Months in Prison for Taking Bribes in Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A doctor who admitted taking bribes in connection with a long-running and elaborate test referral scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates was sentenced today to 37 months in prison, U.S. Attorney Paul J. Fishman announced.
Bret Ostrager, 51, of Woodbury, New York, a doctor with practices in Nassau County, New York, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to Counts One, Two and Five of an indictment charging him with conspiracy to violate the Anti-Kickback Statute and the Federal Travel Act by accepting bribes, one substantive violation of the Anti-Kickback Statute, and one substantive violation of the Federal Travel Act. Judge Chesler imposed the sentence today in Newark federal court.
Ostrager is one of 39 people – 26 of them doctors – who have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case. The investigation has to date recovered more than $12 million through forfeiture.
According to documents filed in this case and statements made in court:
Ostrager admitted that, between February 2011 and April 2013, he received monthly cash bribes of approximately $3,300 from BLS employees and associates. He periodically solicited and received from the BLS employees and associates tickets and meals that cost thousands of dollars. These additional bribes in response to specific requests from Ostrager included tickets to a New York Mets baseball game, a New York Knicks basketball game, a Katy Perry concert, a Justin Bieber concert, and the Broadway show “Newsies.” In exchange, Ostrager referred patient blood samples to BLS. Ostrager’s referrals generated approximately $909,000 in lab business for BLS.
In addition to the prison term, Judge Chesler sentenced Ostrager to one year of supervised release, fined him $30,000 and ordered forfeiture of $101,271.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher; inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Cynthia Shoffner; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the ongoing investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Joseph N. Minish, Danielle Alfonzo Walsman, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.29 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Marc Agnifilo Esq., New York
New London Man Sentenced to 51 Months in Federal Prison for Illegally Possessing FirearmsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ELIJAH GRIFFIN, 25, of New London, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 51 months of imprisonment, followed by three years of supervised release, for illegally possessing firearms.
According to court documents and statements made in court, on April 30, 2015, members of the New London Police Department and the Connecticut State Police executed a state search and seizure warrant at GRIFFIN’s apartment on West Street in New London. Inside a closet in GRIFFIN’s room, officers located and seized a loaded .38 caliber revolver and a loaded .45 caliber pistol.
GRIFFIN has a prior state felony conviction for sale of narcotics. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
GRIFFIN has been detained since his arrest on April 30, 2015. On December 2, 2015, he pleaded guilty one count of possession of firearms by a previously convicted felon.
This matter was investigated by the New London Police Department, Norwich Police Department, Connecticut State Police and Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Sarah P. Karwan and Senior Assistant State’s Attorney Paul Narducci.
Mo Money Tax Return Preparers Sentenced to Prison for Conspiracy to Defraud the United States and Filing False Tax ReturnsRead the Press Release
Two Memphis, Tennessee, area residents were sentenced to prison today for conspiring to defraud the United States and aiding and assisting in the preparation of false tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Dana J. Boente of the Eastern District of Virginia.
Jeremy Blanchard, 35, and Erik Pittman, 35, both of Memphis, were sentenced to serve 70 and 33 months in prison, respectively, to be followed by three years and one year of supervised release, respectively. Blanchard and Pittman previously pleaded guilty to one count of conspiracy to defraud the United States and one count of aiding and assisting in the preparation of false tax returns. The defendants were ordered to pay $549,000 in restitution to the Internal Revenue Service (IRS).
“Mr. Blanchard and Mr. Pittman inflated the deductions and credits claimed on their clients’ income tax returns to line their own pockets at the expense of the U.S. Treasury,” said Acting Assistant Attorney General Ciraolo. “Taxpayers seeking assistance with their returns should expect and are entitled to honest and accurate advice and representation. When preparers seek to abuse our nation’s tax system for their own personal gain, the department stands ready with its law enforcement partners to investigate, prosecute and hold the offenders accountable for their criminal conduct to the fullest extent of the law.”
“While most tax return preparers provide excellent service to their clients, it only takes a few dishonest return preparers to give the industry a black eye,” said Special Agent in Charge Thomas Jankowski of the IRS-Criminal Investigation’s (CI) Washington, D.C., Field Office. “IRS-CI works year round to investigate dishonest return preparers and protect the American taxpayers’ money. Return preparers must comply with the same tax obligations as the clients that they serve. No one is above the law.”
According to court documents, Blanchard and Pittman were partners in a return preparation business, Mo Money Taxes, which operated three locations in the Richmond, Virginia, area. Blanchard, Pittman and others prepared numerous false tax returns for their customers for the 2011 tax year. Blanchard and Pittman admitted that they created and inflated fictitious and fraudulent tax credits, including the Earned Income Credit and the American Opportunity Credit, to claim tax refunds that customers were not entitled to receive. Blanchard and Pittman admitted that their conduct caused a loss to the IRS of more than $250,000, but less than $550,000.
Another participant in this scheme, Corey Taylor, 25, of Richmond, was sentenced on March 22 to serve 20 months in prison for one count of conspiracy to defraud the United States and one count of aiding and assisting in the preparation of a false tax return.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Boente thanked special agents of IRS-CI, the FBI and the U.S. Postal Inspection Service, who investigated the case, and Trial Attorneys Kevin F. Sweeney and Todd P. Kostyshak of the Tax Division and Assistant U.S. Attorney Stephen Miller of the Eastern District of Virginia, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Mo Money Tax Return Preparers Sentenced for Tax FraudRead the Press Release
RICHMOND, Va. – Jeremy Blanchard, 35, and Erik Pittman, 35, both of Memphis, Tennessee, were sentenced today to serve 70 and 33 months in prison, respectively, to be followed by three years of supervised release, for conspiracy to defraud the United States and one count of aiding and assisting in the preparation of a false tax return. Both were ordered to pay $549,000 in restitution.
Blanchard and Pittman pleaded guilty on March 10. According to the statement of facts filed with their plea agreements, Blanchard and Pittman, along with others, prepared numerous false tax returns for the 2011 tax year for customers of their tax return preparation business. Blanchard and Pittman were preparers in Mo Money Taxes, which operated three locations in Richmond. Blanchard and Pittman admitted that they created and inflated fictitious and fraudulent tax credits, including the Earned Income Credit and the American Opportunity credit, to claim tax refunds that customers were not entitled to receive. As part of their guilty pleas, Blanchard and Pittman admitted that their conduct caused a loss to the Internal Revenue Service (IRS) of more than $250,000, but less than $550,000.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Caroline D. Ciraolo, Acting Assistant Attorney General of the Justice Department’s Tax Division; and Thomas Jankowski, Special Agent in Charge of IRS-Criminal Investigations, Washington D.C. Field Office, made the announcement after sentencing by U.S. District Judge John A. Gibney. Assistant U.S. Attorney Stephen Miller, and Trial Attorneys Kevin F. Sweeney and Todd Kostyshak of the Tax Division prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-136.
Mexican National and Edgewood Man Charged with Distributing Heroin Resulting in the Death of the UserRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez and Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division announced today that two men have been charged with distributing heroin that resulted in the death of the person who used the drug. The “death resulting” heroin distribution charge is contained in an 18-count superseding indictment that was filed May 25, 2016 by a federal grand jury.
The two men, Rosendo Flores Angulo, 38, a Mexican national who was illegally residing in Albuquerque, and Curtis Hutchinson, 30, of Edgewood, N.M., were arraigned on the superseding indictment this morning in federal court in Albuquerque. Both entered not guilty pleas to the superseding indictment.
This case was initiated on Sept. 18, 2015, by the filing of a criminal complaint charging Angulo with heroin trafficking charges. The criminal complaint alleged that Angulo repeatedly distributed heroin to two undercover DEA agents in Bernalillo and Sandoval Counties, N.M., between July 2015 and Sept. 2015.
On Oct. 20, 2015, the grand jury returned a 17-count indictment charging Angulo and Hutchinson with participating in a heroin trafficking conspiracy. The indictment charged both men with two counts of heroin distribution and Angulo alone with an additional 14 counts of heroin distribution. According to the indictment, Angulo and Hutchinson committed these crimes between July 2015 and Sept. 2015, when they allegedly sold heroin to two undercover DEA agents.
The superseding indictment on which Angulo and Hutchinson were arraigned today added the “death resulting” heroin distribution charge. According to the superseding indictment, on April 29, 2015, Angulo and Hutchinson distributed heroin to person who died as a result of using that heroin. The men allegedly committed this crime in Bernalillo County.
If convicted on the “death resulting” heroin distribution charge, Angulo and Hutchinson each face a statutory mandatory minimum of 20 years and a maximum of life in prison. If convicted on the other heroin trafficking charges, Angulo and Hutchinson each face a statutory mandatory minimum of five years and a maximum of 40 years in prison. Charges in criminal complaints and indictments are merely accusations, and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
The Albuquerque office of the DEA investigated this case, which is being prosecuted by Assistant U.S. Attorney Timothy S. Vasquez, as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative.
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, which 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 the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools 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. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Man Charged with Using an Improvised Explosive Device to Damage A BuildingRead the Press Release
ASHEVILLE, N.C. – United States Attorney Jill Westmoreland Rose announced today that a federal grand jury sitting in Asheville has returned a criminal indictment against Larry Dean Bowlsby, 49, for detonating an improvised explosive device inside a Walmart store in 2007. Bowlsby was first charged by a criminal complaint filed in the Western District of North Carolina on April 15, 2016, and was arrested in Missouri on May 24, 2016.
C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; Jim Schandevel, Special Agent in Charge of the North Carolina State Bureau of Investigation’s Western District Office; Chief Davis Woodard of the Sylva Police Department and Sheriff Chip Hall of the Jackson County Sheriff’s Office join U.S. Attorney Rose in making today’s announcement.
According to allegations contained in the charging documents, on September 26, 2007, Bowlsby detonated an improvised explosive device, namely a pipe bomb, inside a Walmart store located in Sylva, N.C. Court documents allege that Bowlsby placed the pipe bomb in a shopping cart after entering the store.When the pipe bomb was set off it was located in the sporting goods section next to small camping propane cylinders.Court documents allege that a fingerprint recovered from the shopping cart used by Bowlsby was submitted at the time to a nationwide database, however a match was not returned.In January 2016, the fingerprint was resubmitted, this time returning a positive match to the defendant stemming from a 2009 conviction in Colorado.
“As alleged in the indictment, Bowlsby detonated a pipe bomb inside a busy store, injuring at least one person and putting at risk the lives of many others. Law enforcement have continued to investigate this case and their persistence has paid off. Bowlsby will be appearing in federal court in this district to be prosecuted for a crime he committed nearly nine years ago,” said U.S. Attorney Rose.
“Detonating a pipe bomb in a Walmart in the middle of the day is an extremely cowardly act of violence. We were very fortunate that there were no serious injuries. ATF will continue to work closely with our law-enforcement partners to prosecute those who commit heinous crimes like this,” said Special Agent in Charge Hyman.
“Today’s indictment signifies how important it is for law enforcement to remain diligent in its search for the truth, regardless of the hurdles encountered,” said Special Agent in Charge Schandevel.
Bowlby is currently in federal custody and will be transferred to appear in federal court in Asheville. He is charged with one count of use of an explosive or incendiary instrument to damage or destroy a building or business entity involved in interstate commerce, which carries a maximum prison term of up to 40 years, and one count of unlawful use of fire and an explosive to commit a felony, which carries a mandatory minimum prison term of 10 years, consecutive to any other term imposed.
The charges contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney Rose praised the work the ATF, SBI, the Sylva Police Department and the Jackson County Sheriff’s Office which handled the investigation.
Assistant U.S. Attorney Don Gast of the U.S. Attorney’s Office in Asheville is prosecuting the case.