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Tuesday 19 April 2016
Federal jury finds Kentucky veteran guilty of defrauding the Veterans Health AdministrationRead the Press Release
HUNTINGTON, W.Va. – Acting United States Attorney Carol Casto announced that a federal jury sitting in Huntington returned a guilty verdict yesterday in the trial of a Kentucky veteran for defrauding the Veterans Health Administration. Phillip M. Henderson, 50, of Olive Hill, Kentucky, was convicted following a five-day jury trial. The jury required only an hour of deliberations before finding Henderson guilty.
Henderson served in the United States Army from 1983 to 1986. After he was discharged, Henderson filed multiple claims for benefits with the United States Department of Veterans Affairs (VA). In 1995, Henderson received a diagnosis from the VA of Retinitis Pigmentosa, an inherited and degenerative eye disease which can lead to total blindness. After this diagnosis, Henderson continued to undergo VA eye examinations through 2013, during which time VA medical staff continued to conduct tests to determine the extent of his vision loss. The results of these tests relied significantly, if not completely, on Henderson’s cooperation and accurate reporting of his vision levels.
Witnesses for the United States, including four medical doctors, testified that Henderson falsely responded to the vision testing and significantly misrepresented his vision loss. Witnesses further testified that Henderson pretended he could barely read the letters on the eye charts and pretended that his peripheral vision was severely reduced. As part of his scheme to defraud the VA, Henderson did not reveal that he had a Kentucky driver’s license and that he could and did drive.
Henderson received the maximum disability and healthcare benefits he could get for his claimed disability and vision loss. VA benefits representatives testified that from 1996 to 2015, Henderson received approximately $697,000 in disability compensation. In addition to this monthly monetary compensation, Henderson also received an $11,000 grant to purchase an automobile in 2006, which was intended for another person to drive Henderson, and another $10,000 grant towards the installation of an in-ground swimming pool, which was intended for his exercise and to maintain his well-being as a blind veteran. Further, Henderson received the maximum healthcare benefits possible for him and his family based upon his claimed diagnosis and vision loss. During the same time period, Henderson received the highest priority in getting medical treatment from the VA, free medical and dental services, free prescriptions, reimbursement for travel from his home in Kentucky to the VA Medical Center in Huntington for medical appointments, free training for the blind in Connecticut and Alabama for extended periods of time, and free equipment designed to assist the blind, such as canes, computers, talking telephones, and night vision goggles. In sum, Henderson received over $75,000 in VA healthcare benefits to which he was not entitled.
Henderson faces up to 10 years in federal prison, a fine of up to twice the gain or loss that resulted from his conduct, and an order of restitution when he is sentenced on August 1, 2016.
The United States Department of Veterans Affairs – Office of Inspector General, Pittsburgh Resident Agency, and the Federal Bureau of Investigation conducted the investigation. Assistant United States Attorneys Eumi Choi and Jennifer Rada Herrald handled the prosecution and tried the case before a federal jury. Chief United States District Judge Robert C. Chambers presided over the trial.
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Fargo Man Pleads Guilty in Connection with Shooting During Taco John’s RobberyRead the Press Release
FARGO - U. S. Attorney’s Christopher C. Myers announced that on April 19, 2016, Carl Eugene Smith, 24, Fargo, ND, pled guilty before U. S. District Judge Ralph R. Erickson to a two-count Indictment charging him with Interference with Commerce by Threats or Violence- Hobbs Act Robbery, as well as Use of a Firearm in Furtherance of a Crime of Violence.
On or about September 3, 2015, Smith and other co-conspirators were involved in robbing the Taco John’s restaurant located at 2601 32nd Ave. S., Fargo, as the restaurant was beginning to close. During the robbery Smith fired two shots, with one of the shots hitting an employee in the leg, causing injury that required medical treatment.
Judge Erickson has set sentencing for July 15, 2016, at the U. S. District Court in Fargo, ND.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) as well as the Fargo Police Department.
U. S. Attorney Christopher C. Myers is prosecuting the case.
Fairfax Man Pleads Guilty to Sex Trafficking a 15 Year-Old GirlRead the Press Release
ALEXANDRIA, Va. – Derek Leon Mantilla, 21, formerly of Fairfax, pleaded guilty today to sex trafficking of minor.
Based on court documents, from at least November 2014 through February 2015, Mantilla, together with Ismael Antonio Mendez and Caitlyn Ann Smith, recruited a 15 year-old girl to engage in commercial sex acts to pay off a debt that was owed to Mantilla by Mendez. The adults taught the girl how to prostitute, took photos of her to use in advertisements, and created advertisements for commercial sex that were posted on the Internet. The three adults knew the girl was a minor and instructed her to lie about her age to customers. Over a three month period, the adults traveled with the girl through various states, including Virginia, for the purposes of advertising and engaging the girl in commercial sex. During that period, the girl worked seven days a week and saw an average of 10 to 12 customers a night. Once the girl had earned enough to pay off the debt, the Mantilla directed her to leave the adults, and she did.
Co-defendants Ismael Antonio Mendez and Caitlyn Ann Smith previously pleaded guilty in the case.
Mantilla faces a mandatory minimum of 10 years and a maximum penalty of life in prison when sentenced on July 8. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Colonel Edwin C. Roessler, Jr., Chief of the Fairfax County Police Department, made the announcement after the plea was accepted by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorney Whitney Dougherty Russell and Special Assistant U.S. Attorney Lauren Britsch are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-91.
Estranged Joplin Couple Sentenced to 20 Years for Child Porn After Reporting Each OtherRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man and woman were sentenced in federal court today for receiving child pornography over the Internet after the estranged couple turned each other in to law enforcement.
Ernest “Andy” Britten, 37, of Joplin, Mo., and his ex-wife, Kendra Britten, 34, of Miami, Okla., formerly of Joplin, were sentenced in separate appearances before U.S. District Judge Stephen R. Bough. Ernest and Kendra Britten were each sentenced to 20 years in federal prison without parole, the maximum statutory penalty. The court also ordered them to each pay a $40,000 fine and sentenced them to supervised release for the rest of their lives following incarceration.
On Jan. 19, 2016, Kendra Britten pleaded guilty to receiving child pornography over the Internet. On Oct. 5, 2015, Ernest Britten pleaded guilty to receiving child pornography over the Internet.
On Nov. 10, 2011, Kendra Britten brought a computer into the Joplin Police Department because there was child pornography on the computer. The computer, a Smildon Raidmax Gaming Deluxe, was utilized by Kendra and her then-husband, Ernest Britten. Kendra Britten decided to turn in the computer after Ernest Britten threatened to report her for possessing child pornography.
Investigators discovered 59 videos and 29 images of child pornography on the computer. The videos included children ages 3 to 14. The videos included bondage. According to court documents, the Brittens utilized a peer-to-peer file-sharing network to download child pornography.
Officers were unable to locate the Brittens and the case was suspended. On Jan. 8, 2014, officers were contacted by the Miami, Okla., Police Department, which requested information for their investigation of the Brittens for manufacturing child pornography and sexually abusing an 8-year-old victim.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crime Task Force and the Missouri State Highway Patrol.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Elma Man Arrested, Charged with Possession and Receipt of Child PornographyRead 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 Kevin D. Waczkowski, 31, of Elma, NY, was arrested and charged by criminal complaint with possession and receipt of child pornography. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 20 years and a fine of $250,000.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that according to the complaint, on April 15, 2016, following an online undercover investigation, a search warrant was executed at the residence of the defendant who is a maintenance technician with the Iroquois Central School District. Law enforcement officers seized a desktop computer and a laptop computer. An initial forensic analysis recovered images of child pornography.
The complaint is the result of an investigation by the Federal Bureau of Investigation’s Child Exploitation Task Force, under the direction of Special Agent in Charge Adam S. Cohen. The task force includes the Buffalo Police Department, Cheektowaga Police Department, and Niagara County Sheriff’s Office.
Elkins man pleads guilty to role in counterfeit money schemeRead the Press Release
ELKINS, WEST VIRGINIA – Marc G. Collett, 34, of Elkins, pled guilty to fraudulently using counterfeit money to obtain authentic currency and other goods, United States Attorney William J. Ihlenfeld, II, announced.
Collett conspired with other individuals to repeatedly exchange counterfeit money in order to obtain authentic United States currency, debit cards, and merchandise in Harrison County, West Virginia in late 2014.
Collett pled guilty to one count of “Uttering Counterfeit Obligations or Securities – Aiding and Abetting.” He faces up to 20 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah Montoro prosecuted the case on behalf of the government. The United States Secret Service, the Clarksburg, West Virginia Police Department, and the West Virginia State Police are investigating.
Draper Woman Sentenced to Four Years Imprisonment After Passing $35 in Counterfeit CurrencyRead the Press Release
ABINGDON, VIRGINIA – A local woman, who previously pled guilty to a pair of federal counterfeiting charges, was sentenced today in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr. announced today.
Kendra Lane Dalton, 38, of Draper, Virginia, was serving a sentence of supervised release from a 2014 conviction for possessing and passing counterfeit currency when she was arrested in November 2015 after passing $35 in counterfeit currency at convenience stores in Abingdon and Washington County, Virginia. At the time of her arrest, she was in possession of almost $1,300 in additional counterfeit bills.
She pled guilty in February 2016 to two counts of possessing and attempting to use counterfeit United States currency. Today in District Court, Dalton was sentenced to two years imprisonment on those charges and an additional two years for violating the terms of her supervised release. The sentences are to be served consecutively. She was also ordered to repay the stores.
“Defending and protecting the integrity of our currency is imperative to maintaining the public’s trust in government,” United States Attorney John P. Fishwick Jr. said today.
According to evidence presented at previous hearings by Assistant United States Attorney Jennifer R. Bockhorst, Dalton admitted that on two separate occasions, November 8, 2015 and November 9, 2015, she attempted to pass counterfeit U.S. currency. At the sentencing hearing, Dalton also admitted to having manufactured the counterfeit currency in her possession.
The investigation of the case was conducted by the Washington County Sheriff’s Office and the United States Secret Service. Assistant United States Attorney Jennifer R. Bockhorst prosecuted the case for the United States.
Department of Justice Releases the 2016 National Strategy for Child Exploitation Prevention and InterdictionRead the Press Release
Attorney General Loretta E. Lynch today announced that the Department of Justice released the 2016 National Strategy for Child Exploitation Prevention and Interdiction. The strategy provides a comprehensive threat assessment of the nature and scope of the current dangers facing our nation’s children, including child pornography offenses, sextortion and live-streaming of child sexual abuse, child sex trafficking, child sex tourism and sex offense registry violations. For the first time, the strategy also dedicates an entire section to the unique challenges confronting child exploitation in Indian Country.
“No matter what form child exploitation takes and no matter how technologically advanced it is, it demands the full attention of law enforcement, policymakers, community leaders and service providers alike,” said Attorney General Loretta Lynch. “This strategy examines existing efforts, assesses new threats and plots a course for the future. It identifies innovative ways in which the federal government and its partners can address child exploitation. And it reaffirms our unwavering commitment to ensure that every child in America is able to reach his or her potential, free of violence and abuse.”
The strategy analyzes the work of federal law enforcement agencies and prosecutors, as well as other agencies and offices that play important roles by supporting victims, providing grants to state, local and tribal governments and non-profit partners and educating the public about the dangers of child exploitation. Since FY 2011, the Department of Justice has filed 20,260 Project Safe Childhood (PSC) cases against 19,111 defendants. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes.
Despite the vigorous and coordinated efforts to combat the different aspects of child exploitation, the department also recognized that more work remains and that the response must continue to evolve with the threat. To that end, the strategy outlines four goals and objectives that build upon the department’s accomplishments in combating child exploitation: investigations and prosecutions; outreach and education; victim services; and policy initiatives.
As part of its public outreach efforts, the department is also unveiling a public service announcement that specifically addresses the issue of sextortion – a crime where someone threatens to distribute your private and sensitive material if you don’t provide them images of a sexual nature, sexual favors or money. Made in conjunction with the National Center for Missing and Exploited Children, the video highlights the ways in which malicious actors can use the internet to obtain and use private material to extort innocent individuals of all ages. The announcement concludes by directing individuals with tips or leads regarding suspected crimes of sexual exploitation to file a report at www.cybertipline.org.
This year marks the 10th anniversary of the Project Safe Childhood (PSC) initiative. PSC is a department initiative launched in May 2006 that aims to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.
For more information regarding the National Strategy to Combat Child Exploitation, Prevention and Interdiction, please visit: https://www.justice.gov/psc/national-strategy-child-exploitation-prevention-and-interdiction.
Crack-Cocaine Supplier and Dealer for New Jersey Grape Street Crips Gang Plead Guilty to Drug Trafficking ChargesRead the Press Release
NEWARK, N.J. – Two Newark, New Jersey, men admitted their roles in a drug trafficking conspiracy controlled by the New Jersey set of the Grape Street Crips, U.S. Attorney Paul J. Fishman announced today.
Leonardo Arroyo, a/k/a “Leo,” 32, pleaded guilty today before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging him with conspiracy to distribute 280 grams or more of crack-cocaine. Rakeem Hankerson, a/k/a “Rocco,” 25, pleaded guilty yesterday before U.S. District Judge Madeline Cox Arleo to a superseding information charging him with conspiracy to distribute 28 grams or more of crack-cocaine.
According to documents filed in this case and statements made in court:
The New Jersey Grape Street Crips gang controlled drug trafficking and other criminal activities in various areas of Newark, including the neighborhood of 6th Avenue and North 5th Street. Arroyo supplied both cocaine and crack-cocaine to gang members who used and shared a dedicated cell phone to accept orders for, and distribute, thousands of clips of crack-cocaine to other crack-cocaine distributors. These gang-members included Hakeem Vanderhall, a/k/a “Keem,” a/k/a “Sugar Bear,” Eric Concepcion, a/k/a “Eddie Arroyo,” a/k/a “E-Wax,” a/k/a “Wax,” Tyquan Clark a/k/a “Tah,” Christopher Coelho, a/k/a “Brazil,” and Rashan Washington, a/k/a “Shoota.”
Hankerson was a member of the New Jersey Grape Street Crips who purchased distribution quantities of crack-cocaine from more senior gang members and sold it to retail level customers on the street.
To protect their gang and drug territory, the New Jersey Grape Street Crips operating in the 6th Avenue and North 5th Street location used “community guns” that were easily accessible to gang members. During the course of the investigation, law enforcement agents seized numerous firearms, including a .410 caliber assault rifle, a.45 caliber Thompson semi-automatic carbine, a 7.62 caliber assault rifle, and numerous semi-automatic handguns.
The charge to which Arroyo pleaded guilty carries a minimum of 10 years in prison, a maximum of life in prison, and a $10 million fine. The charge to which Hankerson pleaded guilty carries a minimum of five years in prison, a maximum of 40 years in prison, and a $5 million fine. Sentencing for Arroyo and Hankerson are set for July 26, 2016 and July 25, 2016, respectively.
Clark, Hamilton, Coelho, and numerous other gang members and associates have pleaded guilty to their role in the conspiracy and await sentencing. Charges against Vanderhall, Concepcion, and Washington remain pending. The charges and allegations against them are merely accusations, and they are presumed innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski, and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, for the investigation leading to the guilty pleas. U.S. Attorney Fishman also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, police officers and detectives of the Department of Public Safety and Newark Police Division, under the direction of Director Anthony A. Ambrose, and the Essex County Sheriff’s Office, under the direction of Armando B. Fontoura, for their work on the investigation.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry A. Kamar of the OCDETF/Narcotics Unit of the Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
Defense counsel:
Arroyo: Susan Cassell, Ridgewood, New Jersey
Hankerson: John P. Holliday, Trenton, New Jersey
Convenience Store Owner Admits to Million Dollar Food Stamp Fraud SchemeRead the Press Release
PROVIDENCE, R.I. – Sami Almuhtaseb, 45, of Smithfield, R.I., owner of Oasis Market, a convenience store located in Providence, pleaded guilty in federal court on Friday to defrauding the Supplemental Nutrition Assistance Program (SNAP) of more than $1.1 million dollars. Almuhtaseb admitted to the court that he allowed SNAP recipients to exchange food stamp benefits for cash, in return charging them a surcharge of 100% which he pocketed.
Sami Almuhtaseb’s guilty plea is announced by United States Attorney Peter F. Neronha, William G. Squires, Special Agent in Charge of the Northeast Region of the United States Department of Agriculture Office of Inspector General, and Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI.
According to information presented to the court, between November 2009 and December 2015, the defendant’s store redeemed $2,755,125 in SNAP benefits. Over $1,259,320.99 or 45% of the food stamp transactions were for transactions of $100 or more. Over 72% of the SNAP transactions at the store were from transactions in excess of $50. Legitimate SNAP transactions at a convenience store rarely involve a transaction of $50 or more.
According to court documents, at least $1.1 million dollars worth of the SNAP funds received by Almuhtaseb were the result of fraudulent transactions. These fraudulently obtained funds were deposited into two bank accounts controlled by Almuhtaseb. The defendant withdrew over $770,000 in cash or checks payable to himself from these two accounts. An analysis of bank records revealed that the Almuhtaseb also withdrew over $40,000 of cash from one of the accounts at ATMs located at casinos.
Appearing before U.S. District Court Chief Judge William E. Smith, Sami Almuhtaseb pleaded guilty to conspiracy to commit Supplemental Nutrition Assistance Program fraud and to money laundering.
He is scheduled to be sentenced on July 22, 2016.
The matter was investigated by the United States Attorney’s Office, the United States Department of Agriculture Office of Inspector General, and the FBI.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Clinton Man Pleads Guilty to Distributing Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Clinton, Mo., man pleaded guilty in federal court today to distributing child pornography over the Internet.
Benjamin A. Bowers, 27, of Clinton, pleaded guilty before U.S. District Judge Dean Whipple to the charge contained in an April 15, 2015, federal indictment.
By pleading guilty today, Bowers admitted that he shared images of child pornography over the Internet using a peer-to-peer file-sharing network.
Law enforcement officers from the Clay County, Mo., Sheriff’s Department and the Missouri State Highway Patrol were conducting an investigation into peer-to-peer networks that shared child pornography online. In November 2013, they downloaded multiple images of child pornography that were being shared from Bowers’s computer.
Officers with the Clinton Police Department and the Missouri State Highway Patrol executed a search warrant at Bowers’s residence on Dec. 10, 2013, and seized several items, including computers and external components. Examiners discovered approximately 7,699 photos and 177 videos that contained child pornography, as well as 3,032 images of child erotica, on his computers and related media. The content includes depictions of toddlers and prepubescent minors.
Under federal statutes, Bowers is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole. 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 David Luna. It was investigated by the FBI, the Clinton, Mo., Police Department, the Missouri State Highway Patrol and the Clay County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Chinese National Sentenced to Home Detention for Role in Test Taking SchemeRead the Press Release
PITTSBURGH - A Chinese national has been sentenced in federal court to six months home detention on her conviction of conspiracy in relation to a scheme involving the fraudulent taking of college entrance exams, United States Attorney David J. Hickton announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Yue Zou, 22, of Blacksburg, Virginia.
According to information presented to the court, Yue Zou paid two individuals to take the SAT and TOEFL examinations on her behalf. Using counterfeit passports that contained Zou’s identifying information and the impostor’s photograph, two test-takers earned scores on the two college entrance examinations, which were then used by Zou to earn admission to Virginia Tech University. Zou was also able to obtain an F-1 Visa to enter the United States as a student on the basis of that fraudulent admission.
Prior to imposing sentence, Judge Conti stated that her sentence reflected the seriousness of the offense in that it allowed people who otherwise would not have been eligible to enter the U.S. to enter and also brought unfairness to the American education system.
Assistant United States Attorney James T. Kitchen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Department of Homeland Security, Homeland Security Investigations and the Department of State for the investigation leading to the successful prosecution of Zou.
Champaign Real Estate Developer Pleads Guilty to Bank FraudRead the Press Release
Urbana, Ill. - A Champaign, Ill., real estate developer, Gene T. Hardwick, 73, entered a plea of guilty yesterday to a single count of bank fraud related to a $3.9 million bank loan he received in 2007.
Hardwick obtained the bank loan to construct a 64-unit apartment building in Champaign. After receiving the loan, Hardwick admitted that he used some of the loan proceeds to purchase the lot, at 611 East Park Street, but diverted other loan proceeds to personal expenses. During yesterday’s court proceedings, the government advised the court that these personal expenses included a trip to France and multiple credit card payments.
The fraud was discovered when a FDIC examiner drove to 611 East Park Street in Champaign to inspect the building and discovered an empty lot. At the time the FDIC examiner discovered the fraud, the amount loaned was approximately $2.4 million.
Under the terms of the plea agreement, the defendant has agreed to continue to make restitution payments to the bank and may be imprisoned for up to two years. Hardwick is scheduled for sentencing before U.S. District Judge Colin S. Bruce on Aug. 22, 2016.
The FDIC Inspector General’s Office conducted the investigation; Assistant U.S. Attorney Jason M. Bohm is prosecuting the case.
California Resident Pleads Guilty to Mortgage Fraud Conspiracy ChargesRead the Press Release
Tampa, Florida - United States Attorney A. Lee Bentley, III announces that Gary Hughes (36, San Diego, CA) today pleaded guilty to one count of mortgage fraud conspiracy involving bank fraud. He faces a maximum penalty of 30 years’ imprisonment.
According to the plea agreement and court proceedings, in 2005, entities controlled by co-conspirators entered into a contract to purchase The Arbors, an apartment complex in Hillsborough County, Florida. The new owners of The Arbors then engaged in a plan to convert the complex from rental to condominium units.
Hughes and his co-conspirator, Brendan Bolger, aided the developers in the sale of numerous condominium units at The Arbors through his company, Capital Management Guarantee, LLC. In order to induce buyers to purchase units, Bolger created an addendum to the purchase contract that offered buyers various incentives, such as rental supplements, money to defray maintenance costs, and a design credit to upgrade the unit’s amenities. When the buyers cancelled the design credit within 10 days of signing the addendum, Bolger paid a kickback for the amount of the design credit to the buyer from Capital Management’s bank account. In this manner, Bolger and other co-conspirators failed to disclose to buyers’ mortgage lenders material facts about the financing of the sale of The Arbors condominiums. Bolger and others referred prospective buyers to Hughes in order to obtain financing for their unit purchases.
Specifically, Hughes’s role in the conspiracy as a mortgage broker consisted of originating mortgages for units through Envision Lending and Set 2 Go Loans. The loan applications Hughes submitted contained material misrepresentations, including false occupancy and inflated borrower income and asset information. These loan applications were submitted to FDIC insured institutions and other mortgage lenders. Additionally, through his company, HUMAR Investments, Hughes and a co-conspirator provided the borrowers cash to close loans without disclosing the payments to the lenders.
This case was investigated by the Federal Bureau of Investigation and the Federal Housing Finance Agency, Office of Inspector General. It is being prosecuted by Special Assistant United States Attorney Chris Poor and Assistant United States Attorney Jay Hoffer.
Bridgeport Man Charged with Conspiring with Easton Man to Defraud Distressed HomeownersRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Bridgeport has returned a superseding indictment charging BRADFORD BARNEYS, 50, of Odenton, Maryland, with conspiring with TIMOTHY W. BURKE in a long-running fraud scheme that targeted distressed homeowners throughout Connecticut. BARNEYS is an attorney licensed to practice in Connecticut and has an office in Bridgeport.
The 12-count superseding indictment, which was returned on March 30, 2016, was unsealed today.
BURKE, also known as “Bill Burke,” “William Burke,” “Kerry Saunders,” “Pat Riley,” “Jim Caldwell,” “Jim Saunders,” “Tom Morrisey,” “Jimmy,” “Phil Burke,” “Phil,” “Burt,” “James Burke,” and “M. Soler,” 64, of Easton, was originally charged by indictment on February 10, 2016, with mail fraud, wire fraud, tax evasion, money laundering and identity theft offenses. The superseding indictment charges him with additional mail fraud and money laundering counts.
According to the indictment, since at least April 2011 and continuing to at least September 2014, BURKE and BARNEYS conspired to defraud individuals, mortgage lenders and the U.S. Department of Housing and Urban Development (HUD) by falsely representing to homeowners who were in, or facing, foreclosure on their homes that he would purchase their homes and pay off their mortgages. The distressed homeowners agreed to sign various documents, including quitclaim deeds, indemnification agreements, management agreements and third party authorization letters, which BURKE and BARNEYS presented to them on the understanding that, by signing the documents, they would be able to walk away from their homes without the burdens of their mortgage or other costs associated with home ownership. BURKE also told homeowners that the process of negotiating with the lenders can take time and that, in the meantime, to ignore any notices regarding foreclosure. After he gained control of these houses, BURKE rented out the properties to tenants by advertising the properties on craigslist.com and other means and falsely representing to tenants that BURKE owned the property. BARNEYS, acting as BURKE’s attorney, met or spoke with homeowners to reassure them about their sale to BURKE.
The indictment further alleges that BURKE or one of his agents then collected rent from tenants, in person, and BURKE used the funds for his own benefit. When tenants failed to pay rent, BARNEYS would evict them so that BURKE could obtain another tenant for the property.
BURKE failed to negotiate with the homeowners’ mortgage lender or pay expenses associated with the home, including the homeowners’ mortgages and property taxes, and he failed to pay any rental income he was collecting to the homeowners. Many of the properties BURKE purportedly purchased were ultimately foreclosed upon by the mortgage lender.
It is alleged that BURKE undertook extensive efforts to disguise his true identity from his victims through the use of multiple aliases and business entities, and to conceal the sources of and expenditures from his criminal proceeds. BURKE is associated with multiple entities, including Quality Asset Management Services, LLC; Birmingham Investments, LLC; the Birmingham Group of Companies; Saunders Associates; New Haven Investments; Realty Partners Group; Preston Associates II; Landlord Maintenance Services, LLC; Turnkey Construction Services LLC; The Complete Handyman, LLC; and Woodbridge Associates. He is also alleged to have used the name of another individual in connection with his fraud without that person’s knowledge or consent.
The indictment also alleges that BURKE evaded paying more than $1 million in federal taxes.
The indictment further alleges that in approximately 2002, BURKE was indicted by a federal grand jury in New Jersey on charges of conspiracy, mail fraud, and equity skimming. BURKE subsequently pleaded guilty to conspiracy to commit both equity skimming and mail fraud, and he was sentenced to prison. BURKE was released from federal custody in approximately August 2007 and began his federal supervised release at that time. One of the special conditions of BURKE’s supervised release was that he refrain from employment in the real estate business or mortgage industry.
The indictment charges BURKE with one count of conspiracy, five counts of mail fraud, one count of wire fraud, one count of aggravated identity theft, one count of tax evasion, and three counts of money laundering. If convicted, BURKE faces a maximum term of imprisonment of 20 years on each count of conspiracy, mail fraud, wire fraud, and money laundering; a maximum term of imprisonment of five years for tax evasion, and a mandatory, consecutive two-year term of imprisonment for aggravated identity theft.
The indictment charges BARNEYS with one count of conspiracy and one count of mail fraud, each of which carries a maximum term of 20 years in prison.
BARNEYS and BURKE appeared today before U.S. Magistrate Judge Donna F. Martinez and entered pleas of not guilty to the charges.
BURKE has been detained since November 19, 2015, when he was arrested on a criminal complaint. BARNEYS is released on a $50,000 bond.
The case is assigned to U.S. District Judge Michael P. Shea in Hartford.
This matter is being investigated by Internal Revenue Service – Criminal Investigation Division, the U.S. Department of Housing and Urban Development – Office of Inspector General, and U.S. Postal Inspection Service, with the critical assistance of the Middletown, Plainville, Easton and Coventry Police Departments, the Connecticut State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case is being prosecuted by Assistant U.S. Attorney David T. Huang.
U.S. Attorney Daly stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Individuals who believe they have been victimized by this alleged scheme and citizens with information that will be helpful to this ongoing investigation are encouraged to call 860-240-9735.
Boone County felon sentenced to Federal prison for gun crimeRead the Press Release
CHARLESTON, W.Va. – A Boone County man was sentenced to a year and a day in federal prison for a gun crime, announced Acting United States Attorney Carol Casto. Blain Salmons, Jr., 40, of Alum Creek, previously pleaded guilty to being a felon in possession of a firearm.
Salmons admitted that on October 29, 2015, he was arrested by the Boone County Sheriff’s Department. At the time of his arrest, it was determined that Salmons had been hunting out of season and he was found to be in possession of a Glenfield Model 30A, .30-30 rifle. Salmons was prohibited from possessing any firearm under federal law because of felony convictions from 1997 in Kanawha County Circuit Court for kidnapping and aggravated robbery.
The Boone County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney Timothy D. Boggess handled the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Baton Rouge Man Convicted of Mailing Threatening Letters to Federal and State CourthousesRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that BRIAN CAVALIER, age 33, of Baton Rouge, Louisiana, has been convicted of making threats by mail, in violation of Title 18, United States Code, Section 844(e). As a result of his conviction, the defendant faces a term of imprisonment, fines, restitution, and a term of supervised release following his release from imprisonment. The defendant is scheduled to appear before Chief U.S. District Judge Brian A. Jackson for sentencing on August 18, 2016, at 9:30 a.m.
During his guilty plea hearing in court today, CAVALIER admitted that on November 1, 2013, he mailed a threatening letter to the United States District Court for the Middle District of Louisiana in which he falsely and maliciously conveyed that a bomb had been planted in the federal courthouse and that the bomb was set to detonate within twenty-four (24) hours. CAVALIER had also placed a small amount of a white powdery substance inside the letter’s envelope, and the letter falsely stated that anyone who inhaled the powder would die a “painful death” within 24 hours. CAVALIER’S letter also falsely stated that there were “shooters” outside the federal courthouse and that anyone who attempted to exit the courthouse would be “shot to death.”
In connection with his plea, CAVALIER also admitted that approximately one month later, on or about December 2, 2013, he mailed a second threatening letter, this time to the 19th Judicial District Court in Baton Rouge, which also falsely and maliciously conveyed that a bomb had been planted in the state courthouse and that the bomb would soon detonate. The defendant also falsely represented that there were armed men with “high power guns” watching the building and that they would kill people inside the building, too. This second letter also contained a small amount of suspicious white powder, wrapped in plastic. At the time CAVALIER sent both letters, he was in state custody in the Avoyelles Detention Center, in Cottonport, Louisiana, on unrelated charges.
This matter is being investigated by the Federal Bureau of Investigation, working in close coordination with the Louisiana Department of Corrections, the Baton Rouge Fire Department, the East Baton Rouge Parish Sheriff’s Office, and other law enforcement agencies. The matter is being prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Chief of the Criminal Division.
Andrew Ford Sentenced to Federal Prison for Role in Crime WaveRead the Press Release
FARGO - U. S. Attorney Christopher C. Myers announced that on April 19, 2016, Andrew Jerome Ford, 28, Fargo, ND, was sentenced before U. S. District Judge Ralph R. Erickson to serve eight (8) years and six (6) months in prison for Interference with the Commerce by Threats and Violence- Hobbs Act Robbery and Possession of a Firearm in Furtherance of a Crime of Violence. Judge Erickson also sentenced Ford to serve three (3) years of supervised release and required him to pay a $200 special assessment to the Crime Victims’ Fund.
On September 28, 2015, Bottle Barn Wine and Liquor, 2515 South University Dr., Fargo, and The Spirit Shop Liquor Store, 1404 33rd St. S., Fargo, were robbed within an hour of each other. Co-defendant Carlos Bethel pled guilty to robbing Bottle Barn while brandishing a firearm, while Ford pled guilty to possessing a firearm while robbing the Spirt Shop. Both men acknowledged being the getaway driver for one another in the robberies.
As part of the plea agreement Ford acknowledged he participated or aided and abetted the following crimes:
(a) A home invasion on June 24, 2015, in Hillsboro, North Dakota, where currency was stolen;
(b) A burglary resulting in a stolen firearm in Hillsboro in or about July through September 2015;
(c) A burglary of a vehicle in Fargo, North Dakota, in which monetary instruments were stolen on or about August 24, 2015, and on or about September 24, 2015;
(d) A burglary of a residence in Fargo, resulting in the theft of five firearms on or about September 24, 2015;
(e) Setting fire to four dumpsters in Fargo in an effort to determine law enforcement response time on or about September 28, 2015, as well as robbery of The Spirit Shop Liquor Store in Fargo;
(f) The pistol whipping assault of a victim by Carlos Bethel resulting in serious bodily injury including unconsciousness on or about September 19, 2015 in Fargo; and,
(g) Conspiracy to distribute marijuana in North Dakota.
U.S. Attorney Chris Myers noted after the sentencing: "This sentence sends a strong message that violent crime will not be tolerated in Fargo, Hillsboro, or any community we serve and will use all tools available to fight violent crime and the illegal use and possession of firearms. This case is another great example of local, state, and federal partners joining together to solve what can be best described as a wave of criminal activity that started last summer in the Red River Valley."
Co-defendant Carlos Bethel is scheduled to be sentenced April 25, 2016, at 2:15 PM, in U. S. District Court, Fargo, ND.
This case was investigated by the Fargo Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATFE).
U. S. Attorney Christopher C. Myers prosecuted the case.
Acting U.S. Attorney Meets with Islamic Center Leadership to Highlight Continued Partnership to Combat Anti-Muslim BacklashRead the Press Release
CINCINNATI – Acting U.S. Attorney Benjamin C. Glassman met this morning with members of the board of directors of the Islamic Center of Greater Cincinnati. The gathering is part of a continued effort to foster understanding and safety for Muslim American communities within the Southern District of Ohio.
Today’s meeting was one of 14 events in 11 federal judicial districts across the United States. The series of events around the country are addressing backlash against Muslim, Arab, Sikh and South Asian Americans following the tragic terrorist attacks in Brussels, Paris and San Bernardino, Calif. The events are also designed to build on both the Justice Department’s prosecutorial work in countering post-September 11th backlash, as well as its outreach efforts, including the new interagency initiative to combat religious discrimination throughout the country.
From April 12 through May 6, U.S. Attorneys in California, Colorado, Idaho, Louisiana, Massachusetts, Michigan, Minnesota, New Jersey, Ohio and Utah will work with community leaders and law enforcement to address discrimination, violence and harassment targeting people because of what they look like, which country they come from or where they worship. The aim is to reaffirm the Department of Justice’s commitment to protecting civil rights and preventing and prosecuting hate crimes.
“Divisive rhetoric and religious intolerance directed toward Muslim Americans are wrong,” Acting U.S. Attorney Glassman said. “Just like every religious group, Muslim Americans should not be blamed for the criminal actions of a few individuals. Places like the Islamic Center of Greater Cincinnati serve our community by building bridges of understanding with other faith communities, providing education for young people, and enriching worship for many of our neighbors.”
“It was extremely important to have Mr. Glassman visit the Islamic Center of Greater Cincinnati today, as a positive relationship with law enforcement is a priority for the Center,” said Shakila T. Ahmad, President of the Board of Directors of the Islamic Center of Greater Cincinnati. “The hate rhetoric and rise in discrimination towards Muslim Americans is at such a high level that collaboration between the Muslim American community, the greater community and law enforcement is imperative for all Americans and our founding American values.”
Since Sept. 11, 2001, the Department of Justice has investigated more than 1,000 incidents involving acts of violence, threats, assaults, vandalisms and arsons targeting Arab, Muslim, Sikh and South Asians, and those perceived to be members of these groups. The Civil Rights Division and the U.S. Attorney’s Offices throughout the country have brought prosecutions against more than 60 defendants in such cases, with 57 convictions to date.
The Civil Rights Division is leading the interagency initiative to combat religious discrimination, which includes combatting illegal restrictions on religious properties like mosques.
Monday 18 April 2016
Winnfield resident sentenced to 70 months in prison for failure to register as a sex offenderRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that a Winnfield resident was sentenced last week to 70 months in prison for failing to register as a sex offender after moving to Louisiana from Michigan.
Dexter Lavar Powell, 38, of Winnfield, La., was sentenced Friday by U.S. District Judge Dee D. Drell on one count of failure to register as a sex offender. Powell was also sentenced to five years of supervised release. According to the January 12, 2016 guilty plea, Powell traveled to Louisiana from Michigan between November 2013 and May 2014. On May 7, 2014, Powell applied for and received a Louisiana identification card that did not have the required “sex offender” label listing a Winnfield address. He began living and working in Winn Parish in May 2014. Even after being contacted by authorities and told to register, he never registered as a sex offender in Louisiana. While not registered as a sex offender, Powell committed and pleaded guilty in March 2015 to felony cruelty to a juvenile in Winn Parish. After repeated attempts to capture him, the U.S. Marshals Service arrested him on September 2, 2015. Powell is required to register as a sex offender for life based on a 2000 conviction for attempted kidnapping of a 9-month-old child in Michigan.
The U.S. Marshal’s Service and Winnfield Police Department conducted the investigation. Assistant U.S. Attorney Michael O’Mara is prosecuting the case.
Vermont Man Sentenced to Ten Years on Federal Heroin and Gun ChargesRead the Press Release
CONCORD, N.H. – Robert Orth, 30, of South Ryegate, Vermont, was sentenced in United States District Court for the District of New Hampshire on federal charges of possessing with intent to distribute more than 100 grams of heroin, possessing a firearm in furtherance of his heroin trafficking, and possessing a firearm as a previously convicted felon. The Court imposed a term of ten years’ imprisonment.
On May 29, 2014, at approximately 9:45 P.M., a Nashua police officer witnessed a Gold Nissan Maxima, bearing New Hampshire plates, drive through a stop sign, travel over a double yellow line, and come to an abrupt halt in the middle of the road with its left turn-signal on. The officer initiated a vehicle stop, and upon making contact, noted that there were three male occupants in the vehicle. Occupying the front passenger seat was Robert Orth. During the traffic stop Orth became argumentative and yelled to one of the other occupants to, “…take the [stuff and]… run and hide it.” That occupant grabbed a jacket that was inside the vehicle and ran from the scene. During a foot pursuit, the occupant dropped the jacket and was subsequently captured by the police. A search of the jacket revealed more than 200 grams of heroin and a loaded handgun. During a subsequent interview, Orth admitted that both the heroin and the handgun belonged to him.
The Nashua, New Hampshire Police Department was the lead investigative agency and received assistance from by agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives in New Hampshire. The case was prosecuted by Assistant United States Attorneys Nick Abramson and Seth Aframe.
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Van Buren, Arkansas Man Pleads Guilty to Possession of Counterfeit ObligationRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that MARK BRANDON WEEKS, age 41, of Van Buren, Arkansas, pled guilty to POSSESSION OF A COUNTERFEIT OBLIGATION, in violation of Title 18, United States Code, Section 472 and 2, punishable by not more than 20 years imprisonment, a fine of up to $250,000.00 or both.
The charges are a result of an investigation by the Muskogee Police Department, the Sallisaw Police Department and the United States Secret Service. The defendant was indicted in January, 2016.
The Indictment alleged that on or about August 10, 2015, in the Eastern District of Oklahoma, the defendant, MARK BRANDON WEEKS, did with intent to defraud, possess counterfeit obligations of the United States, that is: Seventy (70) counterfeit $100 Federal Reserve Notes, which he knew to be falsely made, forged and counterfeited.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshals Service pending sentencing.
Assistant United States Attorney Timothy Hammer represented the United States.
United States Attorneys Available to Receive Election ComplaintsRead the Press Release
ROBERT L. CAPERS and PREET BHARARA, the United States Attorneys for the Eastern and Southern Districts of New York, respectively, announced today that special telephone numbers have been set up to receive complaints of possible violations of federal election laws relating to the upcoming primary elections in New York City and other counties in their districts.
The United States Attorneys said that their Offices will be available to receive complaints at the following numbers on Tuesday, April 19, 2016:
(718) 254-6323 (for Brooklyn, Queens, Staten Island, Nassau and Suffolk counties)
(212) 637-0840 (for Manhattan, Bronx, Dutchess, Orange, Putnam, Rockland,
Sullivan and Westchester counties)
In addition, complaints of possible violations of federal election laws may be made directly to the Federal Bureau of Investigation (FBI) at (212) 384-1000.
Spokespeople for the United States Attorneys said that the enforcement of federal laws protecting the rights of all eligible persons to vote for the candidates of their choice is a high priority of the Department of Justice.
It is unlawful under federal law to deny or abridge anyone’s right to vote because of race, color or national origin. Federal laws also require local election authorities to make voting accessible to disabled and elderly voters. Voters who require assistance because of blindness, disability or inability to read and write have the right to receive such assistance from a person of their own choosing. In counties with substantial numbers of non-English speaking voters, federal laws prohibit the denial or abridgement of a voter’s ability to participate in the election process in certain languages other than English (i.e., Spanish, Chinese, Korean).
In addition, certain activities designed to subvert the integrity of the election process are federal crimes. It is a federal crime, for example, to deprive citizens of their right to fair elections or to conspire to do so. Specific election laws also make it a crime to bribe or intimidate voters, to cause ballots to be cast fraudulently in the names of individuals who did not vote (“ballot stuffing”), to vote more than once, or to alter or falsely report the vote count. It can also be a federal offense to challenge qualified voters without cause and in bad faith or to harass persons seeking to vote for the purpose of discouraging their vote.
The Offices of the United States Attorneys said that the ability of federal law enforcement authorities to detect and eliminate improper restrictions on voting rights and to prosecute election fraud depends to a large extent on the watchfulness and cooperation of the voters. It is therefore imperative that those who have been asked to participate in illegal election practices, who have been the subject of such practices, who have observed such practices, or who have information bearing on such practices, make that information known promptly to the FBI or the United States Attorneys at the telephone numbers listed above.
The United States Attorneys also noted that the following additional telephone numbers are available on April 19 for citizens to call for routine inquiries, such as where to vote or how late the polls are open, or to register complaints that may concern violations of New York State election laws:
IN NEW YORK CITY
City Board of Elections
Main Office (212) 487-5300
(212) 868-3692
Bronx (718) 299-9017
Brooklyn (718) 797-8800
Manhattan (212) 886-2100
Queens (718) 730-6730
Staten Island (718) 876-0079
IN COUNTIES OUTSIDE NEW YORK CITY
County Boards of Elections
Dutchess (845) 486-2473
Nassau (516) 571-2411
Orange (845) 291-2444
Putnam (845) 278-6970
Rockland (845) 638-5172
Suffolk (631) 852-4500
Sullivan (845) 794-3000
Westchester (914) 995-5700
Assistant United States Attorney Catherine M. Mirabile is responsible for overseeing the handling of complaints of voting rights abuses and election fraud for the Eastern District of New York.
Assistant United States Attorney David J. Kennedy is responsible for overseeing the handling of complaints of voting rights abuses and election fraud for the Southern District of New York.
United States Attorneys Available to Receive Election ComplaintsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Robert L. Capers, the United States Attorney for the Eastern District of New York, announced today that special telephone numbers have been set up to receive complaints of possible violations of federal election laws relating to the upcoming primary elections in New York City and other counties in their districts.
The United States Attorneys said that their Offices will be available to receive complaints at the following numbers on Tuesday, April 19, 2016:
(212) 637-0840 (For Manhattan, Bronx, Dutchess, Orange, Putnam, Rockland, Sullivan and Westchester counties)
(718) 254-6323 (For Brooklyn, Queens, Staten Island, Nassau and Suffolk counties)
In addition, complaints of possible violations of federal election laws may be made directly to the Federal Bureau of Investigation at (212) 384-1000.
It is unlawful under federal law to deny or abridge anyone’s right to vote because of race, color, or national origin. Federal laws also require local election authorities to make voting accessible to disabled and elderly voters. Voters who require assistance because of blindness, disability, or inability to read and write have the right to receive such assistance from a person of their own choosing. In counties with substantial numbers of non-English speaking voters, federal laws prohibit the denial or abridgement of a voter’s ability to participate in the election process in certain languages other than English (i.e., Spanish, Chinese, Korean).
In addition, certain activities designed to subvert the integrity of the election process are federal crimes. It is a federal crime, for example, to deprive citizens of their right to fair elections or to conspire to do so. Specific election laws also make it a crime to bribe or intimidate voters, to cause ballots to be cast fraudulently in the names of individuals who did not vote (“ballot stuffing”), to vote more than once, or to alter or falsify the vote count. It can also be a federal offense to challenge qualified voters without cause and in bad faith or to harass persons seeking to vote for the purpose of discouraging their vote.
The United States Attorneys also noted that the following additional telephone numbers are available on Election Day for citizens to call for routine inquiries, such as where to vote or how late the polls are open, or to register complaints that may concern violations of New York State election laws:
IN NEW YORK CITY
City Board of Elections
Main Office (212) 487-5300
(212) 868-3692
Bronx (718) 299-9017
Brooklyn (718) 797-8800
Manhattan (212) 886-2100
Queens (718) 730-6730
Staten Island (718) 876-0079
IN COUNTIES OUTSIDE NEW YORK CITY
County Boards of Elections
Dutchess (845) 486-2473
Nassau (516) 571-2411
Orange (845) 291-2444
Putnam (845) 278-6970
Rockland (845) 638-5172
Suffolk (631) 852-4500
Sullivan (845) 794-3000
Westchester (914) 995-5700
Assistant United States Attorney David J. Kennedy is responsible for overseeing the handling of complaints of voting rights abuses and election fraud for the Southern District of New York.
Assistant United States Attorney Catherine Mirabile is responsible for overseeing the handling of complaints of voting rights abuses and election fraud for the Eastern District of New York.
Two Massachusetts Men Plead Guilty to Fentanyl Distribution ConspiracyRead the Press Release
CONCORD, N.H. – Israel Garcia, 56, of Lawrence, Massachusetts and Maximo Brito-Tejeda, 36, a citizen of the Dominican Republic most recently residing in Lawrence, Massachusetts, pleaded guilty in United States District Court for the District of New Hampshire to five counts of distribution of the Schedule II controlled substance fentanyl and one count of conspiracy to distribute fentanyl, announced United States Attorney Emily Gray Rice.
During a law enforcement investigation, officers received information from a cooperating source indicating that Garcia and an individual later identified as Brito-Tejeda were actively involved in the distribution of drugs in and around the Massachusetts and Southern New Hampshire areas. As part of the investigation, law enforcement officers used the cooperating individual and an undercover officer to make controlled purchases of the Schedule II narcotic controlled drug fentanyl from Garcia and Brito-Tejeda on five occasions in August and September, 2015. On each occasion, Garcia and Brito-Tejeda met the cooperating individual and/or the undercover officer in New Hampshire and sold them approximately ten grams of fentanyl.
On September 25, 2015, officers approached Garcia and Brito-Tejeda in an attempt to arrest them. Garcia fled but was apprehended within seconds and Brito-Tejeda locked himself in his car, emptied bags containing fentanyl onto the floor mat and poured his drink over the drugs. He also attempted to swallow plastic bags containing additional quantities of fentanyl. That same day, the Drug Enforcement Administration executed a search warrant at the residence occupied by Brito-Tejeda where Garcia and Brito-Tejeda stored and packaged drugs. A scale, packaging materials, and an additional quantity of fentanyl were recovered at this residence.
Garcia and Brito-Tejeda will be detained pending sentencing hearings which are both presently scheduled for July 14, 2016. The statutory maximum sentence for the conspiracy charge is forty years in prison and criminal fines of up to $5,000,000. Each distribution charge carries a statutory maximum sentence of twenty years in prison and criminal fines of up to $1,000,000. The actual sentences will be determined by the court at sentencing after a presentence investigation report is completed.
The case was investigated by the Drug Enforcement Administration and is being prosecuted by Assistant United States Attorneys Georgiana L. Konesky and Seth Aframe.
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Three Texas Tax Return Preparers Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
Defendants Prepared Tax Returns for Clients that Contained False and Inflated Expenses and Credits
Three El Paso, Texas, residents were sentenced to prison for preparing and conspiring to prepare false income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Richard L. Durbin Jr. for the Western District of Texas.
Belia Mendoza, 60; Margarita Hernandez, 36; and Denise Duchene, 46, were convicted on Feb. 3 following a jury trial of conspiracy to defraud the United States for their involvement in a fraudulent tax return preparation scheme and numerous counts of aiding and assisting in the preparation and filing of materially false tax returns.
“Tax return preparers owe a duty to their clients to prepare true and accurate tax returns for filing with the Internal Revenue Service (IRS),” said Acting Assistant Attorney General Ciraolo. “When preparers intentionally include false items on tax returns, they are not only violating that duty to their clients, but they are also violating the law and exposing themselves to significant penalties, including incarceration.”
“The sentencing of these three tax return preparers sends a clear warning to unscrupulous tax preparers who break the law and abuse the tax system,” said Special Agent in Charge William Cotter of the IRS-Criminal Investigation’s San Antonio Field Office. “Knowingly falsifying documents filed with the IRS is a crime and IRS-Criminal Investigation works year-round pursuing those tax preparers who enrich themselves while cheating their clients and the U.S. Treasury.”
At today’s sentencing hearing, U.S. District Judge Frank Montalvo sentenced Mendoza to 96 months in prison, followed by five years of supervised release and ordered her to pay restitution to the IRS in the amount of $35,391. On April 15, Hernandez was sentenced to 10 months in prison, followed by three years of supervised release and ordered to pay $18,150 in restitution to the IRS. Also on Friday, Duchene was sentenced to 33 months in prison, followed by three years of supervised release and ordered to pay $2,394 in restitution to the IRS.
According to evidence and witness testimony introduced at the trial, Mendoza was the owner of Mendez Tax Services (MTS), a tax preparation business she operated out of her home in El Paso. Hernandez and Duchene, relatives of Mendoza’s, were employees of MTS hired and trained by Mendoza to prepare tax returns for clients for tax years 2008, 2009 and 2010. From February 2009 until June 2011, Mendoza, Hernandez and Duchene conspired to prepare and submit to the IRS numerous false Forms 1040 (U.S. Individual Income Tax Returns).
To maximize their clients’ fraudulently claimed income tax refunds, Mendoza, Hernandez and Duchene placed materially false items on the clients’ tax returns, at times without the knowledge or consent of the clients, including false or inflated figures for unreimbursed employee business expenses, child and dependent care expenses and education credits. Income tax returns prepared by the defendants also included false filing statuses and improperly claimed Earned Income Tax Credits.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Durbin commended special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorney Joseph M. Giannullo of the Tax Division and Assistant U.S. Attorneys Adrian Gallegos and Rifian Newaz of the Western District of Texas, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Southside York Gang Member Enters Guilty Plea to Racketeering ConspiracyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania and the Bureau of Alcohol, Tobacco, Firearms and Explosives announced today that a member of the “Southside” located in York, Pennsylvania pled guilty to racketeering conspiracy.
According to United States Attorney Peter Smith, Richard Nolden, age 30, of York, entered a guilty plea in federal court today to racketeering conspiracy. Under the agreement, Nolden will receive a sentence of 25 years. Nolden is currently serving a sentence of 15 to 40 years’ incarceration for the January 23, 2012, murder of Sherrod Snellings.
Nolden’s plea comes as the last defendant in the Southside indictment. The federal indictment, which was returned on September 17, 2014, brought racketeering and drug trafficking charges against twenty-one members of the Southside. In the indictment, the Southside is identified as a criminal enterprise whose purpose is to protect its territory and power through intimidation, violence and threats, generate profits primarily through open-air drug dealing within its territory and violent crime, defend and retaliate on behalf of gang members, and assist members through retaliation against witnesses and thwarting efforts of law enforcement.
From September to November 2015, twelve other co-defendants went to trial. All twelve were convicted of racketeering conspiracy, drug trafficking conspiracy and/or drug trafficking after an eight-week jury trial this fall. The other eight co-defendants entered guilty pleas to racketeering conspiracy in the case. All of these defendants are being scheduled for sentencing before U.S. District Court Judge Yvette Kane.
In this case, the maximum penalty Richard Nolden faces is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Sierra National Forest Marijuana Cultivator Sentenced to 3 Years in PrisonRead the Press Release
FRESNO, Calif. — Humberto Ceballos-Rangel (Ceballos), 38, of Tuxpan, Jalisco, Mexico, was sentenced today to three years in prison in connection with his involvement in a large marijuana cultivation operation found by law enforcement last summer in the Sierra National Forest in Madera County, United States Attorney Benjamin B. Wagner announced.
According to court documents, Ceballos was found at a campsite within a marijuana cultivation site that caused significant damage to public land and natural resources. Native vegetation was cut to accommodate the marijuana plants, foot trails, and cooking and sleeping areas. Water was also diverted from a nearby creek to irrigate the marijuana plants. Agents found and removed from the site insecticide, propane tanks, and a large quantity of trash and hose line. Ceballos pleaded guilty on January 19, 2016.
In sentencing Ceballos, U.S. District Judge Lawrence J. O’Neill ordered Ceballos to pay $8,750 in restitution to the U.S. Forest Service for the costs of cleaning up the site.
The case was the product of an investigation by the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California Department of Justice’s Campaign Against Marijuana Planting (CAMP), the California Department of Fish and Wildlife, and Madera County Narcotic Enforcement Team (MADNET). Assistant United States Attorney Karen A. Escobar prosecuted the case.
Quebec Man Sentenced for Lying to Border OfficersRead the Press Release
PLATTSBURGH, NEW YORK – Torran Mitchell-Terrance, age 23, of Snye, Quebec, was sentenced on Friday for making false statements to border officers.
The announcement was made by United States Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations.
United States District Court Judge David N. Hurd sentenced Mitchell-Terrance to serve 141 days in jail – time that Mitchell-Terrance had already served as of Friday – and to serve an additional 1 year of supervised release.
On April 2, 2012, Mitchell-Terrance presented himself at the Massena Point of Entry, New York, for inspection by United States Customs and Border Protection officers. During that inspection, he signed a written declaration representing himself to be another person, who was his relative.
The government filed a complaint on April 3, 2012 and arrested Mitchell-Terrance, and he was released on conditions including that he remain in the United States. Mitchell-Terrance fled pretrial supervision in September 2012 and was indicted by a Plattsburgh grand jury in November 2012. Mitchell-Terrance remained a fugitive until early 2016, when he turned himself in.
This case was investigated by Homeland Security Investigations and U.S. Customs and Border Protection, and was prosecuted by Assistant U.S. Attorney Elizabeth Horsman.
Pittsburgh Man Pleads Guilty in Drug Trafficking ConspiracyRead the Press Release
PITTSBURGH – An Allegheny County man pleaded guilty in federal court to a charge of conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine, United States Attorney David J. Hickton announced today.
Aaron Reed, 35, of Pittsburgh, PA, pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Aaron Reed was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Judge Hornak scheduled sentencing for Aug. 16, 2016. The law provides for a minimum sentence of five years in prison, a maximum sentence of 40 years in prison, a fine of not more than $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s detention.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Reed.
Orange County Tax Return Preparer Arrested on Tax Fraud ChargesRead the Press Release
LOS ANGELES – The owner of a Tustin tax preparation business called First Quality Tax Services was arrested this morning on federal charges that allege he prepared and filed fraudulent federal income tax returns claiming false deductions for his clients.
Thomas P. Butcher, 61, of Rancho Santa Margarita, was arrested by special agents with IRS Criminal Investigation pursuant to an indictment returned by a federal grand jury on April 13.
The 38-count indictment charges Butcher with 37 counts of aiding and assisting in the preparation of fraudulent income tax returns and one count of obstructing the administration of Internal Revenue laws.
The indictment alleges that for tax years 2009 through 2011, Butcher prepared and filed tax returns that claimed false credits and deductions that clients were not entitled to receive. The tax returns included fraudulent education credits, as well as false deductions for charitable donations and unreimbursed employee expenses. The fraudulent deductions and credits lowered the taxpayers’ income tax liability.
The indictment also alleges that Butcher submitted bogus receipts for charitable donations and employee-related expenses when filing 2009 tax returns.
“Today’s tax deadline reminds us that our system depends on every citizen filing honest income tax returns,” said United States Attorney Eileen M. Decker. “Butcher is charged with systematically filing false and fraudulent returns for his clients without their knowledge. Butcher’s arrest underscores this office’s commitment to protect innocent taxpayers and preserve the integrity of our tax system through the prosecution of corrupt tax professionals.”
Butcher is expected to be arraigned on the indictment this afternoon in United States District Court in Santa Ana, California.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
Each of the 38 counts in the indictment carries a statutory maximum penalty of three years in federal prison.
This case is the product of an investigation by IRS Criminal Investigation.
“On this final day of the 2016 tax filing season, those who might consider preparing false tax returns are reminded of the extremely negative consequences of doing so,” stated IRS Criminal Investigation’s acting Special Agent in Charge Anthony J. Orlando. “Today’s arrest of Mr. Butcher again emphasizes that the Internal Revenue Service and U.S. Attorney’s Office will continue their aggressive pursuit of those who attempt to defraud America’s tax system.”
Return preparer fraud is one of the Internal Revenue Service’s Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer, and has launched a free directory of federal tax preparers. Additional information about and enforcement efforts by the United States Department of Justice may be found on the Tax Division’s website.
Ninth Defendant Pleads Guilty in Methamphetamine ConspiracyRead the Press Release
ABINGDON, VIRGINIA – The ninth member of a methamphetamine conspiracy that trafficked large quantities of the drug from Atlanta, Georgia to Southwest, Virginia, pled guilty today in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr. announced today.
Brandin Travis Hyde, 38, pled guilty today to one count of conspiring to possess with the intent to distribute methamphetamine and one count of possessing a firearm while being an unlawful user of a controlled substance.
“Methamphetamine is being brought into the Western District of Virginia in waves and is devastating our communities,” United States Attorney John P. Fishwick Jr. said today. “We will continue to work with our partners in law enforcement to dismantle large, wide-ranging distribution conspiracies like the one this defendant was involved with.”
According to evidence presented at previous hearings by Assistant United States Attorney Zachary T. Lee, Hyde was part of a methamphetamine conspiracy that transported and distributed multiple pounds of crystal methamphetamine between Atlanta, Georgia, Northeast Tennessee and Southwest Virginia.
In April 2015, Hyde was interviewed in Bristol, Virginia and admitted that on multiple occasions he accompanied Jeremy Bartley to Atlanta, Georgia to pick up five ounces of crystal methamphetamine. Hyde also admitted to carrying a firearm trafficking in methamphetamine. Hyde returned to Southwest Virginia with the methamphetamine and further distributed it to others.
To date, eight other individuals have pled guilty to being part of the conspiracy. Dawn Rossalyn Vincente, Summer Deborah Booher, Dakota Wayne Barker, Carrie Taylor, Jeffrey Bruce Bartley, Stacey Lee Doane, Melissa Mendora Harless and Connie Diane Strouth have each pled guilty to one count of conspiring to possess with the intent to distribute methamphetamine.
The investigation of the case was conducted by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bristol, Virginia Police Department, the Bristol, Tennessee Police Department, the Abingdon Police Department and the Washington County Sheriff’s Office. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Missouri Man Pleads Guilty to Arson at Mosque and Attempted Arson at Planned ParenthoodRead the Press Release
Jedediah Stout, 32, of Joplin, Missouri, pleaded guilty in the Western District of Missouri today to the arson of a Joplin mosque and two attempted arsons of a Planned Parenthood clinic in Joplin, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Tammy Dickinson of the Western District of Missouri.
Stout pleaded guilty before U.S. Magistrate Judge David P. Rush of the Western District of Missouri to a four-count information that charges him with one count of damage to the Islamic Society of Joplin mosque, two counts of arson at a Planned Parenthood facility in Joplin and one count of violating the Freedom of Access to Clinic Entrances Act. He remains in federal custody without bond.
Stout, who told investigators that he did not like Islam as a religion, pleaded guilty to setting a fire that destroyed the Islamic Society of Joplin mosque on Aug. 6, 2012. The mosque served families from neighboring states, many of whom provided funding for the operation of the mosque. As a direct result of the fire, many donations made during the Muslim holy period of Ramadan were destroyed.
Stout admitted that he committed the mosque arson using the same kind of incendiary device he later used in two Planned Parenthood arson attempts.
On Oct. 3 and Oct. 4, 2013, Stout was captured on surveillance cameras as he made consecutive attempts to set fire to the Planned Parenthood facility in Joplin. In both instances, he threw items containing an accelerant onto the roof of the facility and then ignited material attached to the accelerant. Stout was apprehended soon after the Planned Parenthood arson attempts. He admitted to investigators that he was responsible for both Planned Parenthood arson attempts and for the mosque arson. Stout further admitted that he targeted Planned Parenthood because they provide reproductive health care services.
“In pleading guilty, Stout admitted that he attempted to burn the Planned Parenthood because it provides reproductive health services, and that he set fire to the Islamic Society of Joplin mosque because of its religious character,” said Principal Deputy Assistant Attorney General Gupta. “The Justice Department will continue to vigorously prosecute violence against reproductive health services providers and crimes motivated by religious animus.”
“I am committed to protecting and preserving the Constitutional rights of all Americans,” said U.S. Attorney Dickinson. “The Islamic Society of Joplin and Planned Parenthood were direct victims of these acts of arson, along with those whom they serve. But our entire community is impacted by hate crimes that strike at the heart of the principles by which we all live in a democracy. We will not tolerate the use of violence by anyone who threatens others in the free exercise of their religious and civil rights.”
Under federal statutes, Stout is subject to a maximum sentence of 61 years in federal prison without parole. 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 U.S. Probation Office.
The case was investigated by the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Missouri State Highway Patrol; and the Joplin Police Department. This case is being prosecuted by Assistant U.S. Attorney Jim Kelleher of the Western District of Missouri in conjunction with the Justice Department’s Civil Rights Division.
Stout Superseding Information
Stout Plea Agreement
Miami Resident Guilty of Receiving Child PornographyRead the Press Release
A Miami resident pled guilty to receiving child pornography.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Juan Perez, Director, Miami-Dade Police Department (MDPD), made the announcement.
On April 4, 2016, Kelly Lee Fisher, of Miami, pled guilty to receipt of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2) and (b)(1). Fisher is scheduled to be sentenced on June 23, 2016 before United States Chief District Judge K. Michael Moore.
According to court documents, on February 16, 2016, law enforcement searched Fisher’s residence, pursuant to a federal warrant. During a search of Fisher’s bedroom, law enforcement found several electronic devices, a disconnected desk cable and an air conditioning vent with missing and partially removed screws. Law enforcement discovered that a Toshiba Satellite laptop had been secreted in the air conditioning vent. A preliminary forensic review of the laptop revealed hundreds of images of child pornography and child erotica.
A subsequent forensic analysis of the laptop revealed that the computer contained 20 videos and 3,903 picture files depicting minors engaged in sexually explicit conduct. Several of the children depicted in these videos and pictures are under twelve years of age. The forensic analysis further revealed that Fisher used GrabIt, a newsgroup client, to search for child pornography newsgroups. On February 11, 2016, Fisher received at least 11 movies containing child pornography through GrabIt.
This case was brought as part of Project Safe Childhood (PSC), 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, 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 the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
Mr. Ferrer commended the investigative efforts of the FBI and MDPD. The case is being prosecuted by Assistant United States Attorney Joshua S. Rothstein.
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.
Miami Physician Sentenced to 108 Months in Prison for His Role in $30 Million Health Care Fraud SchemeRead the Press Release
A Miami physician was sentenced today to 108 months in prison for his role in a Medicare fraud scheme that caused approximately $30 million in losses.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Division and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Henry Lora, 51, was sentenced by U.S. District Judge Federico A. Moreno of the Southern District of Florida, who also ordered Lora to pay $30,278,542 in restitution and to forfeit the same amount. Lora pleaded guilty in February 2016 to one count of conspiracy to commit health care fraud and one count of conspiracy to defraud the United States, receive health care kickbacks and make false statements relating to health care matters.
According to admissions made as part of his plea agreement, Lora was the medical director of Merfi Corporation, a Miami-area clinic that employed physicians, physician assistants and other medical professionals. Lora admitted that in exchange for kickbacks and bribes, he and his co-conspirators wrote prescriptions for home health care and other services for Medicare beneficiaries that were not medically necessary or not provided. Lora and his co-conspirators also falsified patient records to make it appear as if the beneficiaries qualified for these services, he admitted.
Lora admitted that his and his co-conspirators’ actions caused multiple Miami-Dade home health care agencies and other providers to bill Medicare for services that were not medically necessary or not provided, and that Medicare made payments on these fraudulent claims.
In March 2014, Isabel Medina, the owner of Merfi, who was charged separately, was sentenced to nine years in prison for conspiracy to commit health care fraud.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Fraud Section Trial Attorney A. Brendan Stewart prosecuted the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Mexican National Arrested in New Mexico Based on DEA Seizure of Almost Four Pounds of HeroinRead the Press Release
ALBUQUERQUE – Juan Francisco Cruz-Neri, 23, of Mexico City, Mexico, made his initial appearance today in federal court in Albuquerque, N.M., on a criminal complaint charging him with possessing almost four pounds of heroin with intent to distribute. Cruz-Neri remains in federal custody pending a preliminary hearing and a detention hearing scheduled for April 19, 2016.
Cruz-Neri was arrested at the Greyhound Bus Station in Albuquerque on April 15, 2016, after the DEA allegedly found 1.70 kilograms (3.80 pounds) of heroin concealed in his backpack.
If convicted of the charge in the criminal complaint, Cruz-Neri faces a statutory penalty of a mandatory minimum of ten years and a maximum of life in federal prison. Charges in criminal complaints are merely accusations, and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the DEA. The case is being prosecuted by Assistant U.S. Attorney Rumaldo Armijo as part of the New Mexico Heroin and Opioid Prevention and Education (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 Bernalillo County, the Albuquerque City Council, DEA, Healing Addiction in our Community (HAC) and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. 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.
Meth Dealer and Money Launderer Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Marlon Alberto Chirinos-Saleno, 32, a citizen of Honduras, was sentenced today in federal court to the statutory minimum mandatory sentence of 120 months for his participation in a drug trafficking organization operating between Texas and Alabama. Chirinos pled guilty to conspiracy to possess with intent to distribute methamphetamine and conspiracy to launder money in October of 2015.
At the sentencing hearing today, the prosecution presented evidence to support certain guideline enhancements, including testimony that a stolen gun was seized from Chirinos’ residence in Austin, Texas, when he was arrested on the charges last May. Chirinos gave a statement to Homeland Security agents that he bought the gun as protection against a death threat which resulted from a drug deal gone wrong. Two of Chirinos’ co-defendants testified against him at the hearing, establishing that Chirinos held a gun to one of them and that he directed their activities in obtaining the drugs in Texas, transporting them to Mobile, distributing them here and getting the drug money back to Texas. When approximately $57,000 in drug proceeds was seized from a co-defendant, Chirinos opened bank accounts in the names of others which were used to make cash deposits. The evidence at the hearing showed that the drug money was deposited in Mobile into the accounts controlled by Chirinos, and he would immediately have the money withdrawn in Austin, Texas, and at other locations as necessary to pay for more drugs. Through the conspiracy, Chirinos and the others distributed at least six pounds of methamphetamine and 200 pounds of marijuana. Approximately $161,000 in drug proceeds was laundered through the bank accounts.
United States District Court Judge Kristi K. Dubose found that the prosecution evidence established that Chirinos occupied a position of leadership and that the weapon was possessed in connection with the drug trafficking activities. The judge imposed the statutory minimum sentence of 120 months. She also ordered a five-year term of supervised release to follow his release from custody, but further ordered that he be turned over to immigration officials for consideration of deportation when he is released. No fine was imposed but Chirinos was ordered to pay $200 in special mandatory assessments.
The investigation was conducted by the Mobile County Sheriff’s Office, the Department of Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.Member of the Simple City Criminal Organization Pleads Guilty to a Racketeering ConspiracyRead the Press Release
Greenbelt, Maryland – Stefon Janey, a/k/a “Stef,” and “Stef Luva,” age 23, of Marlow Heights, Maryland pleaded guilty today to conspiring to participate in the activities of the Simple City Criminal Organization (SCCO), a racketeering enterprise engaged in fraud and related activity in connection with access devices, wire fraud, bank fraud and interstate transportation of stolen property.
The guilty plea 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; Chief Hank Stawinski of the Prince George’s County Police Department; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to his plea agreement, from at least 2009 to July 2015, the conspirators met on a regular basis, and planned criminal activity, including vehicle theft, the interstate transportation of stolen property, identity theft and access device fraud. The SCCO received money and income from criminal activities, including the sale of motor vehicles and stolen property by other SCCO members, as well as bank fraud, wire fraud and access device fraud.
More specifically, on March 30, 2015, Janey and a coconspirator attempted to steal money from two ATMs located on Piney Orchard Parkway in Odenton, Maryland.
On April 18, 2015, Janey and another coconspirator robbed a gas station located on Baltimore Avenue in Beltsville, Maryland. They used a crowbar to forcibly enter the employee vestibule area, and took an employee’s cell phone and money from the cash register. Janey and the coconspirator also forced opened an ATM in the gas station. They fled in an Acura MDX that had previously been stolen in Prince George’s County.
On May 14, 2014, Janey and two coconspirators attempted to steal money from an ATM located in a furniture warehouse in College Park, Maryland.
Janey faces a maximum sentence of 20 years in prison. U.S. District Judge George J. Hazel has scheduled sentencing for July 26, 2016 at 9:30 a.m.
Co-defendant Jessica Rubio, age 38, of Washington, D.C. previously pleaded guilty to her participation in the racketeering conspiracy and to aggravated identity theft. Judge Hazel has scheduled her sentencing for June 3, 2016.
United States Attorney Rod J. Rosenstein praised the FBI, Prince George’s County Police Department, Montgomery County Police Department and the members of the Washington Area Vehicle Enforcement Unit for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Thomas M. Sullivan and Nicolas A. Mitchell, who are prosecuting the case.
Massachusetts Man Pleads Guilty to Fentanyl Distribution ConspiracyRead the Press Release
CONCORD, N.H. – Euris Daniel Paulino Guerrero, 24, a citizen of the Dominican Republic residing in Lawrence, Massachusetts, pleaded guilty in United States District Court for the District of New Hampshire to two counts of distribution of the Schedule II controlled substance fentanyl and one count of conspiracy to distribute fentanyl, announced United States Attorney Emily Gray Rice.
During the spring and summer of 2015, law enforcement officers investigated a drug trafficking organization operating in Massachusetts and Southern New Hampshire. As part of the investigation, cooperating individuals and an undercover law enforcement officer purchased heroin, fentanyl, and oxycodone from the defendant and his co-conspirators. Four sales occurred in Massachusetts and two, on July 29, 2015 and August 12, 2015, took place in Salem, New Hampshire. Lab results have confirmed that over 140 grams of the substance sold contained fentanyl and additional quantities remain to be tested. On September 17, 2015, the Drug Enforcement Administration executed search warrants at three residences in Lawrence, Massachusetts associated with the organization. In one residence, officers located over 400 grams of fentanyl, an instrument used to compress drugs into ten-gram quantities for sale, blenders, and other packaging materials.
Guerrero will be detained pending sentencing, which is presently scheduled for July 14, 2016 at 10:00 a.m. The statutory maximum sentence for the conspiracy charge is forty years in prison and criminal fines of up to $5,000,000. Each distribution charge carries a statutory maximum sentence of twenty years in prison and criminal fines of up to $1,000,000. Guerrero’s actual sentence will be determined by the court at sentencing after a presentence investigation report is completed.
The case was investigated by the Drug Enforcement Administration and is being prosecuted by Assistant United States Attorneys Georgiana L. Konesky and John J. Farley.
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Martin County Convicted Felons Sentenced to Prison for Possessing Firearms at Jensen Beach Indoor Firing RangeRead the Press Release
Two Martin County convicted felons were sentenced to prison for unlawfully possessing firearms and ammunition at an indoor firing range in Jensen Beach, Florida.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Carlos A. Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Office, David Dyess, Chief, Stuart Police (SPD), and William D. Snyder, Sheriff, Martin County Sheriff’s Office (MCSO), made the announcement.
Aldrick James Lott, 30, and John Robert Rucker, Jr., 46, both of Stuart, were sentenced to imprisonment by U.S. District Court Judge Robin L. Rosenberg on April 15, 2016. On January 20, 2016, Rucker pleaded guilty to being a felon in possession of firearms, in violation of Title 18, United States Code, Section 922(g)(1). Rucker was sentenced to 57 months in prison, to be followed by 3 years of supervised release. On January 26, 2016, Lott pleaded guilty to being a felon in possession of firearms and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(e). Lott was sentenced to 185 months in prison, to be followed by 3 years of supervised release.
According to the court record, on November 7, 2015, Lott and Rucker, entered a gun shop and indoor shooting range in Jensen Beach, Florida. During their visit, Lott and Rucker were recorded on video surveillance shooting targets with multiple firearms, including a Glock 30 .45ACP caliber pistol, Smith and Wesson M&P40 .40 caliber pistol, and High-Point 9mm pistol. The Glock and Smith and Wesson pistols were left at the store for cleaning, examined by law enforcement and determined to have been stolen.
On December 1, 2015, federal and local law enforcement agencies executed three search warrants, on residences connected to Lott and Rucker. Law enforcement recovered the High-Point 9mm pistol, a second firearm, and various rounds of ammunition from one home connected to Lott. From a second residence connected to Lott, officers recovered a magazine and ammunition matching the Smith and Wesson M&P40 .40 caliber pistol. From a residence connected to Rucker, officers recovered narcotics.
Mr. Ferrer commended the investigative efforts of ATF, SPD, MCSO, Federal Bureau of Investigation, Drug Enforcement Administration and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. This case was prosecuted by Assistant U.S. Attorney Carmen Lineberger.
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.
MS-13 Member Sentenced to 45 Years in Prison for Double-MurderRead the Press Release
Earlier today at the federal courthouse in Central Islip, New York, Rene Mendez Mejia, also known as “Zorro,” a member of La Mara Salvatrucha, also known as the MS-13 street gang, was sentenced to 45 years in prison by United States District Judge Joseph F. Bianco.
As established in prior filings, court proceedings, and sentencing memoranda, Mejia and two other MS-13 members, Adalberto Ariel Guzman and Juan Garcia, shot and killed 19-year-old Vanessa Argueta and her two-year-old son, Diego Torres, in Central Islip, New York, on February 5, 2010, after luring them to a secluded wooded area. Mejia and Garcia shot Argueta in the head and chest, respectively, and Guzman shot Torres twice in the head. Mejia and other MS-13 members, including MS-13 leader, Heriberto Martinez, Guzman, and Garcia had plotted to kill Argueta because they believed she had disrespected the MS-13 by sending rival gang members to attack Garcia.
After committing the murders, Mejia and his co-conspirators fled to El Salvador. Guzman and Mejia were arrested in May 2010 when they returned to the United States, but Garcia remained a fugitive for four years until March 2014, when, after being placed on the FBI’s Ten Most Wanted Fugitives List, he surrendered to law enforcement authorities in Nicaragua, waived extradition, and was returned to the United States for prosecution. Mejia pled guilty on June 15, 2011.
The sentencing was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, Diego Rodriguez, Assistant Director-in-Charge, FBI, New York Field Office, and Timothy Sini, Commissioner, Suffolk County Police Department.
“Mejia and his fellow MS-13 members brutally and senselessly executed a young woman and her two-year-old child. While nothing can reverse this tragedy, we hope that today’s sentence and the convictions and sentencings of Mejia’s co-conspirators have brought the victims’ families some measure of justice and comfort,” stated United States Attorney. “My Office and our law enforcement partners will continue to be vigilant and aggressively prosecute the MS-13 and other criminal organizations who unleash violence on our communities.” United States Attorney Capers expressed his sincere gratitude to the members of the FBI’s Long Island Gang Task Force for their tenacious investigation and unwavering commitment to bring Mejia and his co-conspirators to justice for the Argueta and Torres murders.
“As the last defendant is sentenced for the brutal murders of a young woman and her toddler son by MS-13 gang members, we hope the victims’ family can finally feel justice has been served. The FBI is committed to working with our partners to not only root-out gangs in our communities but also bring their crimes to justice no matter how long it takes,” said FBI Assistant Director-in-Charge Rodriguez.
“This prosecution exemplifies the ruthless and senseless violence committed at the hands of MS-13 gang members, which threatens the very fabric of our communities. The Suffolk County Police Department will continue to aggressively work with our law enforcement partners to bring these violent criminals to justice,” stated Commissioner Sini.
Mejia’s three co-conspirators, Martinez, Guzman, and Garcia were also arrested and indicted in connection with the Argueta and Torres murders. Martinez was convicted in March 2013, following a six-week trial, in connection with the Argueta murder, as well as the March 6, 2010, murder of Nestor Moreno in Hempstead, New York, and the March 17, 2010 murder of Mario Alberto Canton Quijada in Far Rockaway, New York, and later sentenced to life in prison, plus 60 years. Guzman was convicted on charges relating to the Argueta and Torres murders in September 2013, following a three-week trial, and later sentenced to life in prison, plus 35 years. Garcia pled guilty and was sentenced to life in prison for his role in the Argueta and Torres murders.
The convictions of Mejia and his co-defendants are the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent international criminal organization. The MS-13’s leadership is based in El Salvador and Honduras, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. With numerous branches, or cliques, the MS-13 is the largest and most violent street gang on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in this district. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders, and assaults. Since 2010 alone, this Office has obtained indictments charging MS-13 members with carrying out more than 30 murders, and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Department, Rockville Centre Police Department, and Suffolk County Police Department.
The government’s case is being prosecuted by Assistant United States Attorneys John J. Durham and Raymond A. Tierney from the Office’s Long Island Criminal Division.
The Defendant:
RENE MENDEZ MEJIA
Age: 22
East Patchogue, New YorkE.D.N.Y. Docket No. 10-CR-074 (JFB)
Lakewood man writes off expenses, including use of yacht and luxury world travel, to underreport income by $2 millionRead the Press Release
A Lakewood man was charged in federal court for taking improper write-offs and not reporting more than $2 million in taxable income, said Carole S. Rendon, Acting United States Attorney for the Northern District of Ohio, and Kathy Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Thomas G. Klocker, 47, was charged via criminal information with four counts of tax evasion. The counts cover the tax years 2007 through 2010.
“Nobody likes paying taxes, but we all have to pay our fair share, which includes being honest about deductions and expenses,” Rendon said. “Those who underreport their income and take improper deductions will be held accountable.”
“As this tax filling season comes to a close, we are reminded of our collective duty to accurately file and pay our taxes,” Enstrom said. “Those who willfully abscond from this duty will be pursued and brought to justice.”
Klocker was the sole shareholder and operator of All Metal Sales (AMS) in Westlake. He also operated TT Charter Leasing, which was in the business of chartering the luxury yacht “Tommy Time”, according to the information.
Klocker diverted corporate funds from AMS for his own use to benefit his personal lifestyle and avoid personal income liabilities between 2007 and 2010, according to the information.
For example, Klocker diverted funds from AMS to construct a waterfront residence in Lakewood and to maintain his 68’ Sunseeker yacht, as well as to pay for luxury travel and to make cash withdrawals. He reported substantial business losses arising from the operating costs and expenses arising from the personal use of the TT Charter Leasing yacht, according to the information.
He also misrepresented his personal expenses entered into AMS’ books and records by falsely describing them as legitimate business expenses. Klocker also provided false information to his tax-return preparers about expenses he described as business-related which were, in fact, personal in nature – including luxury travel with his family, according to the information.
Klocker underreported his taxable income by more than $2 million during tax years 2007, 2008, 2009 and 2010. He owes at least an additional $611,000 in taxes for that period, according to the information.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
This case is being prosecuted by Assistant U.S. Attorney Robert J. Patton following an investigation by the Internal Revenue Service – Criminal Investigations, with assistance from the Federal Bureau of Investigation – Cleveland Field Office.
Justice Department Sues to Stop Miami Tax Return Preparer from Preparing Federal Tax Returns for OthersRead the Press Release
Return Preparer Allegedly Claimed Fraudulent Education, Fuel Credits
Rose M. Chazulle, a tax return preparer in Miami has prepared fraudulent federal tax returns that claim education and fuel credits to which her clients are not entitled, according to a civil lawsuit filed by the Justice Department today. The suit seeks to bar Chazulle and her company, RMC Professional Services Corporation, from preparing federal tax returns for others.
According to the complaint, Chazulle prepared federal income tax returns for customers that falsely claimed refundable credits, including American Opportunity Tax Credit and Lifetime Learning Credit. Chazulle included the false education credits for customers who did not incur educational costs and otherwise did not qualify for this credit, the complaint alleges. In addition, the complaint states Chazulle prepared tax returns that falsely claimed:
- Fuel tax credits for customers who had no businesses of any kind, even though the credit can only be taken when fuel is used for certain business purposes or to operate a school bus;
- Fabricated business losses, claimed on Schedule C, Profit or Loss from Business, even though the customers did not have a business; and
- Wages described as household help income in order to falsely claim a larger Earned Income Tax Credit than the customer otherwise would have been able to claim.
The complaint estimates that Chazulle’s conduct cost the United States over $14 million for the tax years 2011 to 2013.
Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Asks Federal Court to Shut Down South Florida Tax Return PreparerRead the Press Release
A Broward County, Florida, man prepares fraudulent tax returns and should be barred from preparing federal tax returns for others, according to a civil complaint filed by the Justice Department today.
The civil complaint against Eli St. Phard was filed in the U.S. District Court for the Southern District of Florida. The complaint alleges that St. Phard prepares income tax returns that fraudulently understate his customers’ tax liabilities by falsely claiming deductions for business expenses his customers never incurred, fraudulently overstating his customers’ claims for refunds by falsely claiming education or fuel tax credits to which his customers are not entitled, or both. According to the complaint, the Internal Revenue Service (IRS) audited 340 of the more than 3,132 returns St. Phard prepared since 2009 and found that St. Phard understated the tax owed on all but five of the 340 returns—a total of more than $1.8 million in understatements. As a result of St. Phard’s fraudulent activities, many of his customers are now liable for significant tax deficiencies, penalties and interest, the complaint alleges.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Jamestown Man Is Sentenced for Making False StatementsRead 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 Tyrell Fuqua-Hayes, 38, of Jamestown, NY, who was convicted of making false statements and representations to the FBI, was sentenced to 27 months in prison by Chief U.S. District Judge Frank P. Geraci.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that in January 2015, Hayes alleged that he met a man who was arrested in another federal case while they were in custody together at the same jail. The defendant claimed that the man provided him with contact information and advised Hayes that he would be reaching out to him.
In May 2015, Hayes advised the Federal Bureau of Investigation that he was receiving text messages from the man he met in jail indicating that the man wanted to pay the defendant $5000 to kill witnesses in that man’s case. The defendant later admitted he created the text messages himself and that lied about the recent conversations between the man and himself.
The sentencing is the result of an investigation by the Federal Bureau of Investigation Child Exploitation Task Force which includes the Rochester Police Department, the Monroe County Sheriff’s office and Immigration and Customs Enforcement, Homeland Security Investigations.
Highlands County Man Sentenced to 30 Years in Prison for Distributing, Receiving and Possessing Child PornographyRead the Press Release
A resident of Highlands County, Florida was sentenced to 30 years in prison, by United States District Judge Robin L. Rosenberg, for distributing, receiving, and possessing images that depicted the sexual exploitation of minors.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
Martin Jay Van Deurzen, 60, of Lake Placid, pleaded guilty on January 27, 2016, to two counts of distribution of material containing visual depictions of sexual exploitation of minors, in violation of Title 18, United States Code, Sections 2252(a)(2) and (b)(1); receipt of material containing visual depictions of sexual exploitation of minors, in violation of Title 18, United States Code, Sections 2252(a)(2) and (b)(1); and possession of matter containing visual depictions of sexual exploitation of minors, in violation of Title 18, United States Code, Sections 2252 (a)(4)(B) and (b)(2). On April 15, 2016, Van Deurzen was sentenced to the statutory maximum term of 240 months in prison for the distribution and receipt of visual depictions of sexual exploitation of minors, to be followed by the statutory maximum term of 120 months in prison for possession of visual depictions of sexual exploitation of minors. Upon completion of his prison term, Van Deurzen will be placed on supervised release for the remainder of his life and is ordered to register as a sex offender.
According to court documents and information disclosed during court proceedings, on March 6, 2015, an HSI Special Agent based in Delaware, using a computer connected to the Internet, utilized a publicly available P2P file sharing program and observed numerous files containing visual depictions of the sexual exploitation of minors. The agent was able to download 50 image files from an IP address assigned to Van Deurzen’s registered account in Lake Placid, Florida. On November 16, 2015, an HSI Taskforce Agent in Martin County discovered that an individual, determined to be Van Deurzen, was logged into the P2P network and engaged in a one-on-one chat, where he discussed the sharing of child pornography and his personal collection of the sexually explicit images. The agent observed numerous visual depictions of the sexual exploitation of minors in Van Deurzen’s shared folders and downloaded several of the files directly from the defendant’s computer.
On November 24, 2015, HSI agents executed a search warrant at Van Deurzen’s residence in Lake Placid. During the search Van Deurzen identified his Dell laptop computer, in the living room area, which was on and actively sharing pictures and videos depicting minors engaged in sexually explicit conduct. A forensic review of Van Deurzen’s computer revealed hundreds of thousands of pictures and videos depicting minors engaged in sexually explicit conduct. Many of the minors were prepubescent and under the age of 12 years of age, engaged in sexually explicit conduct, including sado-masochistic, bondage and bestiality. Also on Van Deurzen’s computer were images of the defendant sexually abusing a minor.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Ferrer commended the investigative efforts of ICE-HSI. This case was prosecuted by Assistant U.S. Attorney Carmen Lineberger.
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.
Hagerstown Man Sentenced to Eight Years in Prison for Conspiracy to Distribute HeroinRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Cory Allen Kline, age 32, of Hagerstown, Maryland today to eight years in prison, followed by three years of supervised release, for conspiracy to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Washington County Sheriff Douglas Mullendore; and Acting Hagerstown Police Chief Paul Kifer.
Assistant Special Agent in Charge Don A. Hibbert stated, “ A successful prosecution in cases like this one, where the distribution of heroin is directly linked to a fatality, shows that DEA is not only committed to investigating large scale traffickers, but is also dedicated to working with our local counterparts to make sure that dealers in death are held accountable.”
According to Kline’s plea agreement, early on April 13, 2015 Kline and a co-defendant went to a residence in Hagerstown, Maryland with a 19-year old woman from Clear Spring, Maryland. The woman was a recovering heroin addict who had recently been released from jail. While at the residence, Kline and his co-defendant agreed to provide heroin to the woman. After injecting the heroin, the woman became very high. Kline left the residence sometime before 6:00 a.m. The woman left the residence in her car at about 6:15a.m. and spoke to another individual on her cell phone from that time until approximately 7:06 a.m. on April 13. According to this individual, the victim stated she was very high and did not feel right, and the individual could hear the victim throwing up. The victim reported driving to a convenience store parking lot, and then to a nearby church. Toward the end of the call, the victim began nodding off and then stopped speaking. The victim’s body was discovered the following day in her car in a church parking lot in Hagerstown. The medical examiner reported that the cause of death was heroin intoxication. There were no drugs or drug paraphernalia found inside the vehicle, nor does the victim’s cell phone reflect any completed calls or outgoing messages after 7:06 a.m. on April 13. Kline admitted that his distribution of heroin resulted in the victim’s death.
United States Attorney Rod J. Rosenstein commended the DEA and the Washington County Narcotics Task Force for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Christina Hoffman and Robert R. Harding, who prosecuted the case.
Granby Man Sentenced for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Granby, Mo., man was sentenced in federal court today for receiving child pornography over the Internet.
Kyle Christopher Largen, 30, of Granby, was sentenced by U.S. District Judge M. Douglas Harpool to nine years in federal prison without parole. Today’s sentence must be served consecutively to any sentence Largen receives in state court. The court also ordered Largen to pay $1,000 in restitution to one of the victims whose images of child sexual abuse he received.
On Oct. 20, 2015, Largen pleaded guilty to receiving child pornography.
The case began on Feb. 25, 2015, when a detective with the Joplin, Mo., Police Department became involved in a child sexual abuse investigation regarding Largen following a child abuse hotline report. On April 15, 2015, law enforcement officers executed a search warrant at Largen’s residence and seized his laptop, which contained images of child pornography. According to court documents, Largen possessed 1,769 images of child pornography and 235,554 images of pornographic anime, many of which depicted sadistic or masochistic conduct.
According court documents, Largen was showing pornography to two 4- and 5-year-old children.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crime Task Force and the Joplin, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Four Restaurant Owner/Managers in State College Area Sentenced and Property Forfeited in Illegal Alien Harboring CaseRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that four restaurant owner/managers in the State College area were sentenced on April 15, 2016 by United States District Court Judge Matthew W. Brann in Williamsport in a case involving conspiracy to transport, harbor and conceal illegal aliens.
Jing Mei Jiang, sentenced to 15 months’ imprisonment and ordered to report to prison on May 16, 2016. The other three defendants are Xin Xing Jiang; Yan Jin Jiang; and Yu Mei Chen. All three were sentenced to two years’ probation. All four defendants pleaded guilty in September 2015. All are residents of Boalsburg, Pennsylvania.
Four other defendants previously pleaded guilty in August 2015 and were sentenced to two years’ probation: Zue Jiang; Jian Bin Chen; Yong Cheng Chen; and Hua Zhen Dong. All are resident of State College, Pennsylvania.
According to U.S. Attorney Peter Smith, charges were filed in July 2015 in U.S. District Court in Harrisburg against the eight restaurant owners and managers accusing them of conspiring to transport, harbor and conceal illegal aliens to work in their restaurants. Jing Mei Jiang, identified as the leader of the conspiracy, was also charged with defrauding the United States and the Commonwealth of Pennsylvania by underreporting the actual number of employees in audit and tax documents and by creating falsified financial records on his Employer’s Quarterly Report of Wages Paid to each employee.
Jing Mei Jiang and his co-conspirators engaged in recruiting unauthorized aliens to work in restaurants and transporting the aliens by commercial buses, vans and other vehicles to and from restaurants in the State College area, where they would work and be housed during their employment.
The workforce consisted of Hispanic and Chinese aliens from Mexico, Guatemala, Thailand and China. The workers were recruited and employed by the defendants for commercial advantage and private financial gain. Unauthorized alien workers were hired to staff restaurant kitchen operations, thereby cutting costs and maximizing profits. As part of the conspiracy, the aliens were paid in cash, at a rate well below the minimum wage. State and/or federal taxes were not withheld from wages, unauthorized aliens were not required to present documents establishing identity and/or employment eligibility, housing and transportation was provided and costs were shared among the conspirators to maximize profits, and fraudulent documents relating to unemployment compensation were filed.
Judge Brann ordered the following assets forfeited, consisting of property or cash directly tied to the criminal activity:
210 Limerock Terrace, State College, PA
458 East College Avenue, Unit 211, State College, PA
458 East College Avenue, Unit 406, State College, PA
691 Westerly Parkway, State College, PA
$21,890 in cash seized from the China Dragon Restaurant, State College, PA
$43,108 in cash seized from 210 Limerock Terrace, State College, PA
The case is part of an investigation by Homeland Security Investigations, the Pennsylvania Office of the Attorney General, and the U.S. Department of Labor, Office of Inspector General assisted by the State College Police Department. Assistant U.S. Attorneys William A. Behe and Gordon Zubrod, and Special Assistant U.S. Attorney Robert LaBar of the Pennsylvania Attorney General’s Office prosecuted the case.
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Fort Myers Man Sentenced to More Than Seven Years in Prison for Illegal Possession of A FirearmRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces that U.S. District Judge Sheri Polster Chappell today sentenced Basilio Amaury Bron, Jr. (35, Fort Myers) to seven years and three months in federal prison for possessing a firearm as a convicted felon. The Court also ordered him to forfeit the handgun and ammunition that had been used in the offense.
Bron was found guilty on November 12, 2015, following a bench trial before Judge Chappell.
According to court documents, an officer from with the Fort Myers Police Department (FMPD) Violent Crimes Task Force observed Bron discard litter from the passenger window of a vehicle. FMPD officers stopped the vehicle and learned that Bron had an active warrant for unpaid child support. During the course of the traffic stop, officers also discovered that Bron was carrying a .25 caliber handgun, loaded with three rounds, in his front waistband.
At the time of the incident, Bron had four previous felony convictions and was therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Federal Bureau of Investigation’s Violent Crimes Task Force, which includes members of the FMPD Violent Crimes Task Force, with additional assistance provided by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney David G. Lazarus.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.