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3 June 2016
Heroin Trafficker Sentenced to 5 Years in PrisonRead the Press Release
PROVIDENCE, R.I. – Wilkins Robles-Tejada, 29, of Providence, was sentenced today to 60 months in federal prison for trafficking heroin. Tejada was arrested by Providence and Cranston Police in February 2015.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Tejada to serve 5 years supervised release upon completion of his prison term. Tejada pleaded guilty on February 8, 2016, to one count of possession with the intent to distribute 100 grams or more of heroin.
Tejada’s sentence is announced by United States Attorney Peter F. Neronha, Providence Police Chief Colonel Hugh T. Clements, Jr., and Cranston Police Chief Colonel Michael J. Winquist.
According to court documents, in February 2015, Providence Police detectives initiated an investigation into Tejada’s drug dealing activities in and around the City of Providence. On at least two occasions, an individual assisting Providence Police made purchases of heroin from Tejada while subject to police surveillance. During the course of the investigation, Tejada was seen by law enforcement visiting a Cranston residence on numerous occasions.
On February 20, 2015, members of the Providence Police Narcotics Unit and Cranston Police Special Investigations Unit executed a court authorized search warrant at the Cranston residence Tejada repeatedly visited. From inside a locked basement room law enforcement determined Tejada was using for his drug trafficking activities, law enforcement seized approximately 981 grams of heroin, 95 grams of cocaine, 19 grams of fentanyl, and a firearm.
Tejada has been detained since his arrest on February 20, 2015.
The case was prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
Members of the Rhode Island DEA Drug Task Force assisted Providence Police and Cranston Police in the investigation of this matter.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Fourth Individual Charged in Ongoing New York Power Authority Procurement Fraud InvestigationRead the Press Release
The Department of Justice, the Internal Revenue Service (IRS) and the New York State Inspector General, which are all conducting a joint federal and state investigation into bid-rigging, fraud and tax-related offenses in the award of contracts at the New York Power Authority (NYPA), announced today that a Westchester County, New York, resident pleaded guilty today to aiding and assisting in the filing of a false tax return.
According to the one-count felony charge filed in the U.S. District Court for the Southern District of New York, in White Plains, New York, John Simonlacaj caused another individual to file a Form 1040 for the tax year 2010 that substantially understated that individual’s taxable income. Simonlacaj pleaded guilty to aiding and assisting in the filing of a false tax return, which carries a maximum penalty of three years in prison and a $250,000 fine.
“Our investigation into bid rigging and fraud by companies supplying the New York Power Authority has uncovered a variety of criminal activity,” said Principal Deputy Assistant Attorney General Renata Hesse, head of the Justice Department’s Antitrust Division. “Filing a false tax return is a serious offense and we are pleased to have worked with our partners in law enforcement to prosecute the criminal violation.”
“We say many times the FBI won’t stop until we find everyone responsible for their roles in a criminal investigation,” said Assistant Director in Charge Diego Rodriguez of the FBI’s New York Field Office. “These charges prove our tenacity in digging until we hit the bottom of the pile and uncover anyone who had a part in criminal wrongdoing.”
"Today’s plea marks yet another defendant admitting guilt following a bid rigging investigation that began at the state level. My office and those of my federal law enforcement partners, will continue to follow the evidence wherever it may lead," said New York State Inspector General Catherine Leahy Scott.
“Mr. Simonlacaj is now held accountable for his role in filing a false tax return,” said Special Agent in Charge Shantelle P. Kitchen of the IRS Criminal Investigation New York Field Office. “Towards pursuing its goal of ensuring that that everyone pays their fair share of taxes, IRS Criminal Investigation remains committed to this ongoing investigation.”
The investigation is being conducted by the Antitrust Division’s New York Office with the assistance of the FBI, IRS Criminal Investigation and the New York State Office of the Inspector General. NYPA is cooperating with the investigation. Anyone with information on bid rigging or other anticompetitive conducted related to the award or performance of municipal and state contracts should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258 or visit http://www.justice.gov/atr/contact/newcase.html.
Fourth Guilty Plea in Drug Conspiracy RingRead the Press Release
BOISE – Stacy Duane Wilfong, 39, of Boise, Idaho, pleaded guilty yesterday to conspiracy to distribute a controlled substance, U.S. Attorney Wendy J. Olson announced. Wilfong was indicted by a federal grand jury on December 8, 2015.
In approximately January 2015, law enforcement agents began investigating ongoing drug distribution by Stacy Wilfong and others. Wilfong and his other coconspirators acted together to distribute methamphetamine, heroin, bath salts, and pills including oxycodone and hydromorphone in the Treasure Valley. Wilfong was arrested on August 25, 2015 in Jackpot, Nevada. Law enforcement agents found approximately one ounce of methamphetamine in co-defendant Jocelin Gonzalez’s backpack. Agents searched Wilfong’s vehicle and located nineteen grams of a synthetic controlled substance called Alpha-pyrrolidinopentiophenone, known as "a-PVP," or “bath salts.” During the search of the vehicle agents located three firearms and approximately $10,000.
Eleven people were indicted on conspiracy to distribute drugs as part of the investigation of Wilfong. He was the fourth person to plead guilty. Jocelin Jessica Gonzalez, 19, and Elizabeth Ann Gaytan, 37, both from Nampa, Idaho, pleaded guilty on May 5, 2016, and will be sentenced on July 28, 2016. Regina Wade, 50, of Boise pleaded guilty on May 19, 2016. Six co-defendants are currently set for trial: David Anthony Wales, 31, of Boise; John Matthew Caviness, Jr., 34, of Caldwell; Breeannyn Nicole Pederson, 25, of Parma; Adam William Dillon, 28, of Nampa; Isela F. Garza, 36, of Nampa; and Jason Lee Burgess, 44, of Garden City. Anthony James Kitchen, 47, of Nampa, has given notice of his intent to plead guilty and is set for a plea change on June 30, 2016, in U.S. District Court.
The crime of conspiracy to distribute a controlled substance is punishable by up to twenty years in prison, a maximum fine of $1,000,000 and three years of supervised release. Sentencing is set for August 16, 2016, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
These cases are the result of a joint investigation by the Treasure Valley Metro Violent Crime Task Force and the Organized Crime and Drug Enforcement Task Force (OCDETF). The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. The Organized Crime and Drug Enforcement Task Force (OCDETF), includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
These cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Four Youngstown men indicted for trafficking crack cocaine; indictment also alleges firearms violationsRead the Press Release
A federal grand jury returned a 15-count indictment charging four Youngstown men with narcotics and firearms violations, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
Tawayme Jett, 36; Jamal Pusey, 37; Michael Reynolds, 33, and Olajuwon Perkins, 26, were charged with conspiracy to distribute and distribution of crack cocaine. Jett and Pusey are also charged with being felons in possession of firearms and ammunition.
Pusey maintained two residences in Youngstown for the purposes of selling narcotics. Pusey, Reynolds, Perkins and Jett then used these two residences to store and sell crack cocaine and store firearms, according to the indictment.
Pusey and Jett possessed firearms to protect themselves and their drug proceeds, according to the indictment.
The defendants, between March and June 2015, sold crack cocaine to confidential sources, possessed firearms, ammunition, crack cocaine, digital scales and drug proceeds, according to the indictment.
Pusey and Jett are also charged with being convicted felons who possessed multiple firearms on June 23, 2015.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including each of 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.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mahoning Valley Law Enforcement Task Force and the U.S. Marshals Fugitive Task Force. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and 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.
Four Charged with Defrauding more than $900,000 from Clifton-Based Trucking CompanyRead the Press Release
NEWARK, N.J. – Four people have been arrested and charged with stealing more than $900,000 from a New Jersey-based trucking company, U.S. Attorney Paul J. Fishman announced today.
Lisa Popewiny, 53, of Clifton, New Jersey, and brothers Angel D. Vidal, 24, and Angel Gabriel Vidal, 22, of Paterson, New Jersey, and Miguel Vidal, 22, of Jersey City, New Jersey, are each charged by complaint with one count of wire fraud. Federal authorities arrested Popewiny, Angel D. Vidal and Angel Gabriel Vidal on June 2, 2016. Miguel Vidal was arrested today. All four defendants appeared before U.S. Magistrate Judge Stephen C. Mannion in Newark federal court; Miguel Vidal appeared today and the remaining defendants appeared yesterday.
According to the complaint:
Popewiny was the payroll clerk at Clifford B. Finkle Jr. Inc, a Clifton company that provided transportation and freight services to various public and private entities located in New Jersey, New York, and elsewhere. From June 2012 to April 2015, Popewiny, Angel D. Vidal, Angel Gabriel Vidal, and Miguel Vidal – a former truck driver for the Company – allegedly engaged in a scheme to defraud the company out of $920,380.
Popewiny falsified payroll records in order to generate fraudulent paychecks payable to non-existent employees. Angel D. Vidal, Angel Gabriel Vidal, and Miguel Vidal then converted the paychecks, many of which were deposited into their bank accounts and then funneled out in cash. The scheme came to light when owners of the company, in an effort to investigate suspected fraud, distributed the payroll checks to employees – a task normally completed by Popewiny. After all of the payroll checks had been distributed, six paychecks remained that turned out to be fraudulently issued. Further investigation revealed that Popewiny input false hours for at least 12 different individuals.
The count of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000 or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited criminal investigators in the U.S. Attorney’s Office, postal inspectors from the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Cynthia Shoffner, and members of the U.S. Marshals’ Fugitive Task Force, under the direction of U.S. Marshal Juan Mattos Jr., with the investigation leading to the arrests and charges.
The charge and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Cari Fais of the Special Prosecution Division in Newark. finkle_trucking_complaint.pdf
Four Charged with Defrauding More Than $900,000 from Clifton-Based Trucking CompanyRead the Press Release
NEWARK, N.J. – Four people have been arrested and charged with stealing more than $900,000 from a New Jersey-based trucking company, U.S. Attorney Paul J. Fishman announced today.
Lisa Popewiny, 53, of Clifton, New Jersey, and brothers Angel D. Vidal, 24, and Angel Gabriel Vidal, 22, of Paterson, New Jersey, and Miguel Vidal, 22, of Jersey City, New Jersey, are each charged by complaint with one count of wire fraud. Federal authorities arrested Popewiny, Angel D. Vidal and Angel Gabriel Vidal on June 2, 2016. Miguel Vidal was arrested today. All four defendants appeared before U.S. Magistrate Judge Stephen C. Mannion in Newark federal court; Miguel Vidal appeared today and the remaining defendants appeared yesterday.
According to the complaint:
Popewiny was the payroll clerk at Clifford B. Finkle Jr. Inc, a Clifton company that provided transportation and freight services to various public and private entities located in New Jersey, New York, and elsewhere. From June 2012 to April 2015, Popewiny, Angel D. Vidal, Angel Gabriel Vidal, and Miguel Vidal – a former truck driver for the Company – allegedly engaged in a scheme to defraud the company out of $920,380.
Popewiny falsified payroll records in order to generate fraudulent paychecks payable to non-existent employees. Angel D. Vidal, Angel Gabriel Vidal, and Miguel Vidal then converted the paychecks, many of which were deposited into their bank accounts and then funneled out in cash. The scheme came to light when owners of the company, in an effort to investigate suspected fraud, distributed the payroll checks to employees – a task normally completed by Popewiny. After all of the payroll checks had been distributed, six paychecks remained that turned out to be fraudulently issued. Further investigation revealed that Popewiny input false hours for at least 12 different individuals.
The count of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000 or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited criminal investigators in the U.S. Attorney’s Office, postal inspectors from the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Cynthia Shoffner, and members of the U.S. Marshals’ Fugitive Task Force, under the direction of U.S. Marshal Juan Mattos Jr., with the investigation leading to the arrests and charges.
The charge and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Cari Fais of the Special Prosecution Division in Newark.
Defense counsel:
Angel D. Vidal: K. Anthony Thomas Esq., Assistant Federal Public Defender, Newark
Former Waterloo Resident Sentenced to Federal PrisonRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that on June 3, 2016, Nicholas J. Perjak, 35, formerly of Waterloo, IL, was sentenced on a four-count Superseding Indictment charging him, in Count 1, with Attempt to Access with Intent to View Child Pornography; and, in Counts 2 through 4, with Access with Intent to View Child Pornography. Perjak received 60 months in federal prison on all counts, to run concurrently, followed by 10 years of supervised release on each count, also to run concurrently. Perjak was fined $100 on each count, for a total fine of $400, and ordered to pay a $400 special assessment.
The charges arose from an investigation by the Federal Bureau of Investigation’s New Orleans’ Office in which IP addresses were captured when an individual, using a particular IP address, visited a website that contained links to child pornography and subsequently clicked on a link that indicated, through the description of the link, that the link would lead to child pornography. An administrative subpoena issued as part of the investigation determined that one of the captured IP addresses was registered to Perjak at his prior residence in Waterloo. The investigation by the New Orleans’ office revealed that Perjak attempted to access child pornography on this website on May 14, May 18, and June 25, 2011 (Count 1).
Based on this information, Task Force Officers with the FBI’s Child Exploitation Task Force conducted an interview with Perjak on December 13, 2012. Perjak provided a statement in which he identified a Dell laptop computer as the computer he primarily used for work and
personal business. Perjak also admitted viewing child pornography for approximately two years, and indicated that he viewed child pornography "in the last week." Perjak admitted being addicted to child pornography, and said that he had been addicted to it for the past three years. Perjak also admitted viewing child pornography of girls aged between ten and sixteen. Perjak said that he never saved or stored any child pornography on his Dell laptop computer.
A forensic review of the Dell laptop computer revealed approximately 6,164 image files of child pornography. The forensic review also revealed that on November 11, November 24, and December 3, 2012, Perjak searched for and accessed both image and video files of child pornography using Internet Explorer (Counts 2-4).
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. 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."
The case was investigated by the FBI’s New Orleans’ Office and the FBI’s Springfield Child Exploitation Task Force. The case was assigned to Assistant United States Attorney Angela Scott.
Former Tampa Resident Indicted for Fraudulent Mortgage Repayment SchemeRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Leigh Fiske (52) with two counts of bank fraud. If convicted, he faces a maximum penalty of 30 years in federal prison on each count.
According to the indictment, Fiske submitted two fraudulent financial instruments to the servicer and the bank trustee of a mortgage that he had used to finance the purchase of property in Tampa in 2005. The fraudulent instruments and accompanying documentation directed the financial institutions, both of which had received funds from the Treasury Department’s Troubled Asset Relief Program, to apply the face value of the instruments to his outstanding mortgage debt in separate attempts to extinguish that obligation. In truth, neither instrument had or conveyed anything of monetary value. The intended loss of the scheme was over $650,000.
In March 2016, Fiske was indicted in a separate fraud case for a scheme in which he allegedly funneled monies obtained from counterfeit or altered business checks through a trust account that he had created for a shell company he controlled. That case is pending trial.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Office of the Special Inspector General for the Troubled Asset Relief Program, the Federal Bureau of Investigation, and the Office of the Comptroller of the Currency. It will be prosecuted by Assistant United States Attorney Eric K. Gerard.
Former Maryland Resident Pleads Guilty to Conspiracy to Defraud the United StatesRead the Press Release
Greenbelt, Maryland – A South Carolina man pleaded guilty to a criminal information charging conspiracy to defraud the United States for the purpose of obstructing the functions of the Internal Revenue Service (IRS), announced U.S. Attorney Rod J. Rosenstein of the District of Maryland and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to information presented in court, Menachem Shoham, age 67, of Rockville, Maryland, conspired with several family members and with Martin Lack, a former asset manager at a firm in Zurich, to maintain undeclared offshore bank accounts in order to conceal assets and income from the IRS. Lack pleaded guilty in 2014 to a charge of conspiracy to defraud the United States.
“In today’s plea, Menachem Shoham admitted to conspiring to defraud the IRS through the use of undeclared offshore bank accounts, secretly tapping into the funds through large cash withdrawals abroad and employing credit cards directly linked to the accounts to pay personal expenses,” said Acting Deputy Assistant Attorney General Goldberg. “This case is another step in the department’s ongoing efforts, along with its partners in the IRS, to actively investigate and prosecute the illegal use of offshore bank accounts, not just in Switzerland, but around the world.”
“No matter how you attempt to disguise your income, one is still legally required to pay taxes on it,” said Special Agent in Charge Thomas Jankowski of IRS-Criminal Investigation (CI) Washington, D.C., Field Office. “Today’s plea is a reminder that IRS Criminal Investigation is committed to following the money trail across the globe and will not be deterred by sophisticated financial transactions.”
As part of the conspiracy, Shoham and his family members traveled both within the United States and to the Bahamas, the United Kingdom and Switzerland in order to meet with Lack and obtain at least $379,930 in cash withdrawals from their offshore accounts. The co-conspirators further obtained credit cards linked to their offshore accounts as an additional means of accessing the funds while at the same time concealing them from the IRS. Shoham and his family members also provided false information to their tax return preparers in order to conceal the ownership and control of the offshore accounts.
For the years 2005 to 2010, Shoham filed false U.S. individual income tax returns with the IRS on which he failed to report his offshore bank accounts. For the years 1999 to 2010, Shoham was required to file annual Reports of Foreign Bank and Financial Accounts (FBARs) with the IRS; however, despite maintaining account balances which at times exceeded $500,000, Shoham failed to file the required FBARs. As a result of the conspiracy, Shoham caused a tax loss to the United States of $36,287.
At his August 15 sentencing, Shoham faces a statutory maximum sentence of five years in prison. He also faces monetary penalties and restitution.
U.S. Attorney Rosenstein and Acting Deputy Assistant Attorney General Goldberg commended the IRS-Criminal Investigation, who investigated the case, and Senior Litigation Counsel Mark F. Daly and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney David Salem of the District of Maryland, who are prosecuting this case.
Former Maryland Resident Pleads Guilty to Conspiracy to Defraud the United StatesRead the Press Release
Used Secret Foreign Accounts to Hide over $500,000 in Funds and Avoid Paying Taxes
A South Carolina man pleaded guilty to a criminal information charging conspiracy to defraud the United States for the purpose of obstructing the functions of the Internal Revenue Service (IRS), announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Rod J. Rosenstein of the District of Maryland.
According to information presented in court, Menachem Shoham, 67, conspired with several family members and with Martin Lack, a former asset manager at a firm in Zurich, to maintain undeclared offshore bank accounts in order to conceal assets and income from the IRS. Lack pleaded guilty in 2014 to a charge of conspiracy to defraud the United States.
“In today’s plea, Menachem Shoham admitted to conspiring to defraud the IRS through the use of undeclared offshore bank accounts, secretly tapping into the funds through large cash withdrawals abroad and employing credit cards directly linked to the accounts to pay personal expenses,” said Acting Deputy Assistant Attorney General Goldberg. “This case is another step in the department’s ongoing efforts, along with its partners in the IRS, to actively investigate and prosecute the illegal use of offshore bank accounts, not just in Switzerland, but around the world.”
“No matter how you attempt to disguise your income, one is still legally required to pay taxes on it,” said Special Agent in Charge Thomas Jankowski of IRS-Criminal Investigation (CI) Washington, D.C., Field Office. “Today’s plea is a reminder that IRS Criminal Investigation is committed to following the money trail across the globe and will not be deterred by sophisticated financial transactions.”
As part of the conspiracy, Shoham and his family members traveled both within the United States and to the Bahamas, the United Kingdom and Switzerland in order to meet with Lack and obtain at least $379,930 in cash withdrawals from their offshore accounts. The co-conspirators further obtained credit cards linked to their offshore accounts as an additional means of accessing the funds while at the same time concealing them from the IRS. Shoham and his family members also provided false information to their tax return preparers in order to conceal the ownership and control of the offshore accounts.
For the years 2005 to 2010, Shoham filed false U.S. Individual Income Tax Returns, Forms 1040, with the IRS, on which he failed to report his offshore bank accounts. For the years 1999 to 2010, Shoham was required to file annual Reports of Foreign Bank and Financial Accounts (FBARs) with the IRS; however, despite maintaining account balances which at times exceeded $500,000, Shoham failed to file the required FBARs. As a result of the conspiracy, Shoham caused a tax loss to the United States of $36,287.
At his Aug. 15 sentencing, Shoham faces a statutory maximum sentence of five years in prison. He also faces monetary penalties and restitution.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Rosenstein commended special agents of IRS-CI, who investigated the case, and Senior Litigation Counsel Mark F. Daly and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney David Salem of the District of Maryland, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Federal Jury Convicts Three Minnesota Men for Conspiring to Join ISIL and Commit Murder in SyriaRead the Press Release
Nine Members of the Conspiracy Convicted of Terrorism Charges in Largest Multi-Defendant ISIL-Related Case in United States
Guled Ali Omar, Abdurahman Yasin Daud and Mohamed Abdihamid Farah were convicted by a federal jury today of conspiring to commit murder in Syria on behalf of the Islamic State of Iraq and the Levant (ISIL) and to provide material support to the designated foreign terrorist organization. Omar was also convicted of one count of attempted financial aid fraud, and Farah was also convicted of one count of perjury and providing a false statement.
The convictions were announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Andrew M. Luger of the District of Minnesota and Special Agent in Charge Richard T. Thornton of the FBI’s Minneapolis Division.
“In the first multi-defendant ISIL-related trial, Mohamed Farah, Abdirahman Daud and Guled Omar were convicted of conspiring to provide material support to the foreign terrorist organization and other federal offenses,” said Assistant Attorney General Carlin. “The defendants conspired with a larger group of individuals to travel to Syria to fight on behalf of ISIL. Countering terrorist threats remains the highest priority of the National Security Division. We will continue to work to disrupt the recruitment and radicalization of Americans by terrorist organizations, and bring to justice those who conspire to provide material support to terrorists. I would like to thank the many agents, analysts and prosecutors who worked tirelessly to secure these convictions.”
“The evidence in this case made clear that the defendants made a deeply personal and deliberate decision back in 2014,” said U.S. Attorney Luger. “They wanted to fight for a brutal terrorist organization, kill innocent people and destroy their own families in the process. This trial should serve as a wake-up call that it will take the entire community to stop terror recruiting in Minnesota.”
“These verdicts affirm the FBI's investigative efforts,” said Special Agent in Charge Thornton. “The FBI will not induce people to break our laws. However, the FBI, through all legal means at its disposal, will investigate and pursue those who aim to bring about harm to others.”
Between May 2014 and April 19, 2015, the three defendants and their co-conspirators made multiple attempts to join ISIL in Syria.
In May 2014, some members of the conspiracy, including Omar and co-conspirators Abdi Nur and Abdullahi Yusuf, traveled or attempted to travel to Syria to join ISIL. To facilitate the travel of his co-conspirators, Daud provided contact information for an ISIL member in Turkey to Nur and Yusuf so that they could gain assistance crossing the border from Turkey into Syria. Nur succeeded in his plan, joining ISIL in Syria in June 2014. Yusuf was stopped at the Minneapolis/St. Paul Airport and was later arrested.
Omar and two other members of the conspiracy also made an attempt to join ISIL by traveling across the U.S.–Mexico border near San Diego in May 2014, but failed when members of Omar’s family prevented his travel.
In October 2014, members of the conspiracy communicated with “Antar,” a self-described member of ISIL in Syria, about how best to travel to Syria to join ISIL. Members of the conspiracy met with one another to discuss routes, methods and the timing of leaving the United States to join ISIL in Syria.
Omar again attempted to join ISIL in Syria on Nov. 6, 2014, by flying from Minneapolis/St. Paul International Airport to San Diego, crossing the border into Mexico and traveling onward to Syria. Before he could board the flight in Minnesota, Omar was stopped at the airport and prevented from boarding the plane. In order to fund this second attempt to join ISIL in Syria, Omar intended to use federal financial aid provided to him by the U.S. Department of Education to attend college.
Also in November 2014, Farah and three of his co-conspirators, Zacharia Abdurahman, Hanad Musse and Hamza Ahmed, took a bus from Minneapolis to New York City and attempted to board flights to Europe with an eventual destination of Syria. Federal agents in New York prevented the four from traveling abroad.
In April 2015, Daud and Farah drove from Minneapolis to San Diego, where they intended to purchase fake passports, cross the border into Mexico and travel to Syria to join ISIL. Unbeknownst to them, the individual from whom they purchased the fake passports was a law enforcement officer and both were arrested by federal agents immediately after obtaining the phony travel documents.
Ten Minnesotans were charged as part of this conspiracy to provide material support to ISIL. The men are all associates and friends of one another. Six defendants pleaded guilty before trial and Nur remains a fugitive.
This case is the result of an investigation conducted by the FBI-led Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorneys Andrew R. Winter, John Docherty and Julie Allyn of the District of Minnesota with assistance provided by the National Security Division’s Counterterrorism Section. The department would also like to thank the FBI’s San Diego and New York Field Offices and the U.S. Attorney’s Office of the Southern District of California for their contributions.
Eastern District of Tennessee United States Attorney’s Office Employees Honored by Department of Justice at Executive Office for United States Attorneys Director’s Awards CeremonyRead the Press Release
WASHINGTON – Sharry A Dedman-Beard, Public Information Officer/Law Enforcement Coordinator and Amy K. Veatch, Paralegal Specialist with the U.S. Attorney’s Office in the Eastern District of Tennessee were two of 160 recipients recognized by Deputy Attorney General Sally Yates and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 32nd annual Director’s Awards Ceremony on Thursday, June 1, 2016, in Washington D.C.
The Eastern District of Tennessee was one of 33 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In her prepared remarks, Deputy Attorney General Yates said, “The achievements being recognized today reflect the breadth of the department’s responsibilities, and some of our most significant challenges. From dismantling dangerous gangs, drug cartels and human trafficking operations to tackling political corruption, white collar crimes, and international terrorism, these awardees have taken on our toughest cases. And the citizens of our country are safer because of their work.”
“We honor the truly talented and dedicated legal and administrative personnel in the 94 U.S. Attorneys’ offices and our law enforcement partners who everyday touch lives in our communities, protect the American people, and work to ensure the fair and impartial administration of justice,” said Director Wilkinson.
Sharry A. Dedman-Beard received the 2016 Director’s Award for Superior Performance in Public Affairs. She was recognized for her extraordinary efforts in coordinating the media response in July 2015, when a homegrown violent extremist shot and killed five soldiers at a Marine recruiting station and National Guard facility in Chattanooga. Ms. Dedman-Beard worked closely with the U.S. Attorney, FBI, and other federal, state and local public information officers to facilitate the controlled release of information to international and domestic media representatives. She consulted with the public affairs contacts at EOUSA and the Department’s National Security Division; composed press releases; organized press conferences; and served as a contact for those state and local political and public figures that were anxious to be a part of the response and investigation. She was also recognized for demonstrating her expertise in media relations by her response to the press in other high profile criminal cases throughout the district. Her relationship with the district’s media and law enforcement agencies and her expertise enhanced the public relations efforts of the U.S. Attorneys’ office.
Amy K. Veatch received the 2016 Director’s Award for Superior Performance in a Litigative Support Role. Ms. Veatch was recognized for her outstanding organizational and technological skill in preparing discovery, trial exhibits, and electronic presentations of evidence at complex trials in the Chattanooga Division. Specifically, her management of a recent high profile case demonstrated her unsurpassed value to the office. She led discovery and preparation of 502 electronic trial exhibits, which stemmed from her tackling the inventory and management of 275,000 pages of medical records seized from several pill mills. She devised a medical reports tracking system for data from multiple agencies, spanning several years of investigation. She also created timelines, maps, summary charts, and edited audio and video exhibits taken from hours of video surveillance, undercover recordings, and 60 days of wire interceptions of thousands of pertinent calls. The defendant’s conviction and 280-year prison sentence - and the resulting chilling effect on would-be pill mill operators in the district and elsewhere - were made possible by Ms. Veatch’s technological and organizational expertise, intelligence, and heartfelt commitment to the mission of the Department.
“These awards are tangible proof of the respect that Sharry Dedman-Beard and Amy Veatch have earned through their dedication to the mission of the Department of Justice in the Eastern District of Tennessee. Our district takes great pride in their achievement and accomplishments, and joins the Director in thanking them for their service to the United States,” said Acting U.S. Attorney Nancy Stallard Harr.
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
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District Man Sentenced to 33 Years in Prison for Sexually Assaulting Two Women in AlleyRead the Press Release
WASHINGTON - Hassain Smart, 20, of Washington, D.C., was sentenced today to 33 years in prison on charges stemming from sexual assaults he committed against two women in an alley in Northwest Washington, U.S. Attorney Channing D. Phillips announced.
Smart pled guilty in December 2015, in the Superior Court of the District of Columbia, to charges of first-degree sexual abuse while armed, first-degree sexual abuse with aggravating circumstances, robbery while armed, and kidnapping while armed. The plea, which was contingent upon the Court’s approval, called for a prison term of 27 to 33 years. The Honorable Jennifer Anderson accepted the plea today and sentenced the defendant accordingly. Following his prison term, Smart will be placed on supervised release for the rest of his life. Smart also will be required to register as a sex offender for the remainder of his life.
According to the government’s evidence, at about 1 a.m. on June 25, 2015, the two victims began to open the door to their home in the unit block of T Street NW when Smart, a stranger, approached from behind and brandished what appeared to be a black handgun. He led both women through a dark alley into a muddy area between a fence and a vacant house under construction. Smart raped both women in the alley while continuing to brandish the weapon.
After the sexual assaults, Smart refused to allow the victims to leave until they surrendered their cell phones and a debit card to him. When he finally left, the victims contacted law enforcement, and detectives from the Sexual Assault Unit of the Metropolitan Police Department (MPD) responded and immediately began an investigation.
An MPD patrol officer in the Seventh District spotted the defendant, who matched the description given by the victims. Smart was arrested after police found the victims’ cell phones and debit card and the weapon in his possession. Smart then confessed to kidnapping, robbing, and sexually assaulting both women while brandishing the weapon.
After reporting the assault to the police, the victims were transported to Washington Hospital Center for a Sexual Assault Nurse Examination (SANE), which included collection of forensic evidence. Bode Technologies later conducted DNA testing and concluded that the major male profile found on intimate swabs from a victim’s SANE kit matched the DNA profile of the defendant.
On April 2, 2016, while incarcerated pending sentencing, Smart attempted to escape from the Correctional Treatment Facility (CTF) in Washington, D.C., but his escape attempt was thwarted by correctional officers. During his attempt, Smart first jumped over the jail recreation yard’s inner perimeter fence. After jumping that fence, he pulled a white bed sheet that he had hidden in his pants leg. Smart spent several minutes surveying the outer perimeter fence while holding the sheet, until he was ordered by correctional officers to drop the sheet and lay on the ground. On May 13, 2016, Smart pled guilty to a charge of escape. He was sentenced today to six months in prison for that offense, to run consecutively to his other prison sentence.
In announcing the sentence, U.S. Attorney Phillips commended the work of the detectives of the Metropolitan Police Department’s Sexual Assault Unit, the Fifth and Seventh Police Districts, and crime scene technicians. He also expressed appreciation to Bode Technologies. He also commended those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Veronica Vaughan and Paralegal Specialists Tierra Nanches and Jason Manuel. Finally, he acknowledged the efforts of Assistant U.S. Attorneys Amy Zubrensky and Julianne Johnston, who prosecuted the case.
Deputy Attorney General Sally Q. Yates Statement on the President's Recent Clemency DecisionsRead the Press Release
Deputy Attorney General Sally Q. Yates released the following statement following President Obama’s clemency announcement today:
"Our responsibility at the Department of Justice is to seek justice and that includes rectifying disproportionately long sentences for certain drug offenders sentenced under outdated laws. The President has used his clemency authority today to give more individuals a second chance to live law abiding lives and we are confident that there will be many more commutations in the months
Defense Lawyer Pleads Guilty to Disrupting State Court ProceedingRead the Press Release
BOSTON – A Boston lawyer pleaded guilty today to disrupting a state court proceeding by repeatedly encouraging the victim of a hate crime to ignore calls from state and federal law enforcement officials.
Timothy R. Flaherty, 51, of Cambridge, was indicted in May 2015 on federal witness tampering charges. Today, he pleaded guilty to related state charges in Middlesex Superior Court in order to resolve the federal charges. According to the plea agreement, Flaherty will be placed on probation for one year, must refrain from practicing law during that period, and submit to professional discipline by the Massachusetts Board of Bar Overseers.
Flaherty is a criminal defense attorney and was retained to represent a defendant in Cambridge District Court who was facing state civil rights charges. Shortly after Flaherty’s client was arraigned in state court, Flaherty contacted the victim of the case and offered him cash in exchange for informing state authorities that the victim was too busy to pursue the case and no longer wanted to assist in the prosecution of Flaherty’s client. On Dec. 24, 2014, Flaherty met the victim and provided him with an envelope that contained $2,500 in cash. He instructed the victim to ignore contact from law enforcement authorities and in the event he received a subpoena to appear, he was to immediately call Flaherty. On March 12, 2015, during a hearing at Cambridge District Court, Flaherty pressed for a trial date and then asked the Assistant District Attorney whether the Middlesex District Attorney’s Office had been able to contact the victim.
On May 6, 2015, the victim informed Flaherty that he had received a letter from the District Attorney’s Office. Flaherty instructed the victim to tell the District Attorney’s Office, “I have no interest in this. I’d have to come to court, I really don’t want anything to do with it. Um, you know the guy had a bad day and I’m just not going to testify ….” Flaherty also told the victim, “…they won’t press you, they won’t subpoena you, if they try to, just duck it….”
The victim then informed Flaherty that he had received a voice message from an employee of the United States Attorney’s Office who wanted him to call her back regarding the alleged indictment. Flaherty told the victim to, “blow her off.” The victim stated to Flaherty that this U.S. Attorney’s Office employee said she was from “civil rights.” Flaherty continued to advise the victim not to call her back.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney William Bloomer of Ortiz’s Public Corruption Unit who was sworn in as a Special Assistant Attorney General to handle this matter in Middlesex Superior Court.
Davenport Man Sentenced to Prison for Felon in Possesion of a Firearm ChargeRead the Press Release
DAVENPORT, IA – On June 2, 2016, Ali Suarez, 21, of Davenport, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 60 months in prison, following Suarez’s guilty plea on March 2, 2016, to a felon in possession of a firearm charge announced Acting United States Attorney Kevin E. VanderSchel. Suarez was ordered to serve three years of supervised release after his prison term and to pay $100 to the Crime Victim’s Fund.
On October 15, 2015, Davenport police officers were dispatched to a gun shots fired complaint. Officers searched the area and recovered a Hi-Point .45 caliber semiautomatic handgun. The investigation revealed Suarez and his fellow gang members were feuding with a rival gang. During the altercation, Suarez fired the handgun recovered by the police.
This matter was investigated by the Davenport Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.
Convicted Felon Sentenced to 8 Years for Buying Firearms at Gun ShowRead the Press Release
ALEXANDRIA, Va. – Josiah John Weiss, 36, of Suitland, Maryland, was sentenced today to 96 months in prison for possession of firearms as a convicted felon.
Weiss was found guilty by a federal jury on March 9. According to court documents and evidence presented at trial, on April 25, 2015, Weiss purchased two semiautomatic pistols and an AR-15 rifle, along with magazines and gun cases for each, from a private seller at The Nation’s Gun Show in Chantilly. Weiss was observed doing so by Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Due to his suspicious behavior, he was followed by ATF agents as he drove away from the parking lot of the Dulles Expo Center, where the gun show was being held. When Weiss discovered that he was being followed, he began driving erratically and at high speeds and eventually eluded the agents. Later that day agents executed a search warrant at an apartment Weiss had been living in at the time in Alexandria. Neither Weiss nor the three firearms were found there. Law enforcement remained unaware of Weiss’ whereabouts until Nov. 10, 2015, when he was arrested outside one of his two apartments in Suitland. Despite a search of those two apartments, the firearms were not recovered. Weiss had been convicted of aggravated identity theft and passport fraud, both felonies, in 2011, and thus was prohibited from possessing firearms.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Michael Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorneys Carina A. Cuellar and Michael E. Rich prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-354.
Catoosa Man Pleads Guilty to Wire Fraud, Money Laundering and Failure to Pay Employment TaxRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma, announced that DAVID GLENN MOORE, JR., age 49, of Catoosa, Oklahoma, entered a guilty plea yesterday to an Information filed on May 26, 2016 charging MOORE with WIRE FRAUD, in violation of Title 18, United States Code, Section 1343, punishable by not more than 20 years imprisonment, up to a $250,000.00 fine or both; MONEY LAUNDERING, in violation of Title 18, United States Code, Section 1956(a)(1)(A)(i), punishable by not more than 20 years imprisonment, up to a $500,000.00 fine or both; and FAILURE TO ACCOUNT AND PAY OVER EMPLOYMENT TAX, in violation of Title 26, United States Code, Section 7202, punishable by not more than 5 years imprisonment, up to a $250,000.00 fine or both and a CRIMINAL FORFEITURE ALLEGATION.
The Information alleged during the period of on or about July 1, 2009 through on or about June 12, 2014, defendant MOORE, the former Executive Director of the Tahlequah Area Chamber of Commerce (TACC), devised and intended to devise a scheme to defraud TACC, and to obtain money and property by means of materially false and fraudulent pretenses, representations and promises. The Information further alleged that the Manner and Means of the scheme to defraud included the following:
- MOORE used a debit card on the TACC checking account to make unauthorized Automated Teller Machine (ATM) transactions for cash and to make unauthorized purchases and ATM withdrawals at casinos, racetracks and online gaming websites.
- MOORE caused checks from the TACC checking account to be made payable to MOORE and also caused checks from the TACC checking account to be made payable to “Cash” which he negotiated and kept the money.
- MOORE, acting without the consent or authority of the TACC Board of Directors, applied for and obtained an unauthorized loan from Bank of Cherokee County, a financial institution involved in interstate and foreign commerce. MOORE also obtained unauthorized loans from various individuals.
During the term of the scheme to defraud, MOORE defrauded TACC, and unlawfully obtained approximately $439,660.62. The Information further alleged that MOORE willfully failed to truthfully account for and pay over to the Internal Revenue Service payroll taxes totaling $45,556 for the years 2011, 2012 and 2013 which were due and owing to the United States on behalf of the TACC and its employees.
The charges are a result of an investigation by the Tahlequah Police Department, the Oklahoma State Bureau of Investigation, the Oklahoma State Auditor and Inspector, and the Internal Revenue Service – Criminal Investigative Division.
Assistant United States Attorney Christopher Wilson represented the United States.
- MOORE used a debit card on the TACC checking account to make unauthorized Automated Teller Machine (ATM) transactions for cash and to make unauthorized purchases and ATM withdrawals at casinos, racetracks and online gaming websites.
California Woman Sentenced for Possession and Distribution of NarcoticsRead the Press Release
BISMARCK – U.S. Attorney Christopher C. Myers announced that on June 2, 2016, Victoria Elaine Reyes, a/k/a Victoria Elaine Allen, 46, Taft, California, was sentenced before U.S. District Daniel L. Hovland on charges of Possession with Intent to Distribute a Controlled Substance (Methamphetamine) and Possession with Intent to Distribute a Controlled Substance (Heroin).
Reyes pled guilty to the charges on February 17, 2015. Judge Hovland sentenced Reyes to serve 15 years in federal prison, to be followed by five years of supervised release on each count, to be served concurrently. Reyes was ordered to pay a $200 special assessment to the Crime Victim’s Fund.
In early 2014, law enforcement officials with the Southwest Narcotics Task Force in Dickinson, North Dakota, were investigating the distribution of methamphetamine and heroin in western North Dakota. On March 23, 2014, related to this investigation, a traffic stop was made near Bowman, North Dakota, and law enforcement officials seized approximately two pounds of methamphetamine and a half pound of heroin that had been transported from California. Three individuals in the vehicle were arrested, including Reyes. Reyes had arranged for the transportation of the drugs and intended to distribute them in western North Dakota.
The case was investigated by the Southwest Narcotics Task Force, the North Dakota Bureau of Criminal Investigation, and the Drug Enforcement Administration (DEA).
Assistant U.S. Attorney David Hagler prosecuted the case.
Brothers Sentenced on Visa Fraud ConvictionsRead the Press Release
DALLAS — Two brothers who were convicted at trial in November 2015 on felony offenses stemming from a conspiracy they ran to commit visa fraud to secure a low-cost workforce at their information technology consulting company headquartered in Carrollton, Texas, were sentenced today to lengthy federal prison terms, announced U.S. Attorney John Parker of the Northern District of Texas.
Atul Nanda, 46, and his brother, Jiten “Jay” Nanda, 45, were each sentenced by Chief U.S. District Judge Barbara M. G. Lynn to 87 months in federal prison. Each was convicted on one count of conspiracy to commit visa fraud, one count of conspiracy to harbor illegal aliens, and four counts of wire fraud. The brothers, who have been on bond, were remanded to the custody of the U.S. Marshals Service.
Dibon Solutions is an information technology consulting company located on Chenault Drive in Carrollton; it is a family operation created by the Nanda family. Atul and Jiten Nanda created, established, and ran the corporation that they used to commit fraud through the H1-B visa program.
“The H-1B visa program is a powerful and positive tool for businesses and foreign workers alike when properly used,” said U.S. Attorney Parker. “When employers abuse the program, however, the foreign workers become a captive stable of cheap labor, victimized to the company’s financial benefit.”
“This federal investigation uncovered Dibon’s deeply rooted conspiracy of maximizing its profits at all costs,” said Katrina W. Berger, special agent in charge of Homeland Security Investigations (HSI) Dallas. “These two brothers created a highly profitable, and highly illegal business model at the extreme expense of the alien workforce that they recruited. In addition, this same illegal business model operated at an unfair advantage to Dibon’s competition since it had a much lower operating overhead.”
The H-1B visa program allows businesses in the U.S., such as Dibon, to temporarily employ foreign workers with specialized or technical expertise in a particular field such as accounting, engineering, or computer science.
The Nanda brothers recruited foreign workers with expertise who wanted to work in the U.S. They sponsored the workers’ H-1B visa with the stated purpose of working at Dibon headquarters in Carrolton, but, in fact, did not have an actual position at the time they were recruited and knew the workers would ultimately provide consulting services to third-party companies located throughout the U.S. Contrary to representations made by the conspirators to the workers (and the government), Jay and Atul Nanda directed that the workers only be paid for time spent working at a third-party company and only if the third-party company actually first paid Dibon for the workers’ services. Additionally, in Dibon’s visa paperwork, the conspirators falsely represented that the workers had full-time positions and were paid an annual salary, as required by regulation to secure the visas.
This scheme provided the conspirators with a labor pool of inexpensive, skilled foreign workers who could be used on an “as needed” basis. The scheme was profitable because it required minimal overhead and Dibon could charge significant hourly rates for a computer consultant’s services. Thus, the Nandas, as Dibon’s owners, earned a substantial profit margin when a consultant was assigned to a project and incurred few costs when a worker was without billable work. This scheme is known as “benching.” Dibon actively recruited H-1B workers for the “bench.”
The Nandas required the H-1B visa candidates to pay the processing fees that the law requires to be paid by the company. The Nandas attempted to hide this, however, by having the H-1B candidates pay the fees directly to Dibon either with cash or a check written to “Dibon Training Center.”
The three other defendants charged in the case, Siva Sugavanam, 37, Vivek Sharma, 48, and Rohit Mehra, 39, who each pleaded guilty before trial to one count of aiding and abetting visa fraud, were each sentenced earlier this month by Judge Lynn to two years’ probation. Sugavanam was the lead recruiter for Dibon; Sharma acted as Dibon’s office manager; and Mehra recruited employees for the bench and transported benched employees to and from Dibon Headquarters. All three had knowledge of and/or involvement in the filing of false documents with the Department of Labor and the Department of Homeland Security (DHS) in securing recruits’ employment with Dibon.
The case was investigated by U.S. Immigration and Customs Enforcement, HSI and the U.S. Department of State.
Special Assistant U.S. Attorney Danial Gividen and Assistant U.S. Attorney Paul Yanowitch prosecuted the case.
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Brevard County Elementary School Principal Charged with Possession of Child PornographyRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Ricky Delano Sheppard (59, Brevard County) was arrested and charged by criminal complaint today with possession of child pornography. If convicted, he faces up to 20 years in federal prison, and up to a lifetime of supervision. At the time of the incident, Sheppard was working as a principal at the Holland Spessard Elementary School, in Brevard County.
According to court records, on June 3, 2016, agents assigned to the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and Brevard County Sheriff’s Office task force executed a search warrant at Sheppard’s residence in Brevard County. During a forensic examination of Sheppard’s computer media, computer experts found hundreds of images of child pornography.
Sheppard made his initial appearance in federal court earlier today, in Orlando. He remains detained pending further proceedings. A preliminary and detention hearing has been scheduled for Wednesday, June 8, 2016, before U.S. Magistrate Judge Gregory J. Kelly.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with the assistance from the Brevard County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Bloods Gang Member Sentenced to Prison for Prostituting a MinorRead the Press Release
NORFOLK, Va. – Cordario Marcell Uzzle, 23, of Virginia Beach, was sentenced today to 151 months in prison for sex trafficking of a child. He was also sentenced to 10 years of supervised release.
Uzzle pleaded guilty on February 19. According to court documents, Uzzle was a member of a set of the Bloods street gang based in Virginia Beach. Along with several other Bloods gang members, Uzzle prostituted a 16 year-old foster-care runaway over a two-week period in the fall of 2015. The girl was forced to work for several different gang members, and performed commercial sex acts from hotels in Norfolk and Virginia Beach. Uzzle posted prostitution advertisements on the Internet, rented rooms in which prostitution appointments were performed, collected the proceeds earned, and carried a firearm to protect himself and his victims, as well as to intimidate his victims and their customers.
In October 2015, the sex trafficking ring was discovered when the 16 year-old victim was transported to the hospital after Uzzle violently attacked her. As a result of the ensuing federal investigation, seven total Bloods gang members or associates have been charged for their roles in this conspiracy to engage in sex trafficking of minor and three other victims have been identified.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office; and James A. Cervera, Chief of Virginia Beach Police, made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen. Assistant U.S. Attorney V. Kathleen Dougherty prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-2.
Atlantic County, New Jersey, Woman Sentenced to Six Years in Prison for $3 Million Time-Share Mortgage Fraud SchemeRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, woman was sentenced today to 72 months in prison for her role in a $3 million conspiracy to scam customers by offering phony consulting services to owners of timeshares through the New Jersey-based Vacation Ownership Group LLC, U.S. Attorney Paul J. Fishman announced.
Ashley Lacerda, 36, of Egg Harbor Township, New Jersey, was convicted in September 2013 of one count of conspiracy to commit mail and wire fraud, one count of mail fraud and four counts of wire fraud following a seven-week trial before U.S. District Judge Noel L. Hillman in Camden federal court.
According to documents filed in this case and the evidence presented at trial:
Ashley Lacerda and her codefendants schemed to defraud hundreds of timeshare owners by offering fraudulent consulting services through their company, the Vacation Ownership Group (now VO Financial). Her husband, Adam Lacerda, 32, the company founder, president and chief executive officer, devised the company’s fraudulent sales pitches. He directed his sales force to tell numerous lies to VO customers, including that VO worked with the banks holding the customers’ loans, would use money sent by customers to pay off the customers’ loans on their timeshares, and could cancel customers’ timeshares with money back. Ashley Lacerda, the company vice president and chief operating officer, sent fraudulent contracts to customers and managed the office.
Three codefendants were convicted with Ashley Lacerda at the same trial: Ian Resnick, 41, of Absecon, New Jersey, a convicted bank robber, started as a salesman giving the fraudulent sales pitch but became Adam Lacerda’s enforcer, with the title “director of compliance.” Genevieve Manzoni, 50, of Lake Worth, Fla. was a top VO sales representative who falsely told one victim she worked with a bank, another victim that she worked with a timeshare developer. Adam Lacerda was sentenced in June 2015 to 324 months in prison; Resnick was sentenced in April 2016 to 18 years in prison and Manzoni was sentenced in December 2015 to 42 months in prison.
The 15 victims who testified at trial – including business executives, veterans, senior citizens, a lawyer and a professor – were defrauded out of a total of $200,000 by the defendants’ sophisticated scheme.
In addition to the prison term, Judge Hillman sentenced Ashley Lacerda to three years of supervised release. Restitution will be determined at a later date.
U.S. Attorney Fishman credited special agents of FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher in Newark; and special agents from the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent Cheryl Garcia, New York Region, for the investigation. He also thanked the N.J. Department of Labor and Workforce Development for its assistance.
The government is represented by Assistant U.S. Attorney R. David Walk Jr. of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel:
Adam Lacerda: Mark E. Cedrone Esq., Philadelphia
Ashley Lacerda: Charles Nugent Esq., Marlton, New Jersey
Ian Resnick: Michael E. Riley Esq., Philadelphia
Genevieve Manzoni: Robert L. Tarver Jr. Esq., of Toms River, New Jersey
Ashburn Man Sentenced for Sex Trafficking a Child and Sex Tourism CrimesRead the Press Release
ALEXANDRIA, Va. – Eric Noe Araujo Flores, of Ashburn, was sentenced today to 300 months in prison for various sex tourism and sex trafficking crimes. Araujo Flores was also ordered to pay approximately $40,000 in restitution to his victim.
“Sex tourism and sex trafficking of children are vicious crimes that result in irreparable harm to the victims,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “We will continue to work diligently to prosecute those who travel to foreign countries to prey upon children.”
“Today’s sentencing sends a strong message: Diplomatic Security is committed to making sure that those who commit sex trafficking of children, and sex trafficking customers, face consequences for their criminal actions,” said Bill A. Miller, Director of the U.S. State Department’s Diplomatic Security Service. “Diplomatic Security’s strong relationship with the U.S. Attorney’s Office and other law enforcement agencies around the world continues to be essential in the pursuit of justice.”
According to court documents and testimony at trial, Araujo Flores was introduced to a 14-year-old victim while she lived in El Salvador. Araujo Flores learned that street gangs were threatening her and her family with violence and he offered to help them escape from the gangs, promising financial support in exchange for sexual acts with the minor. In July 2013, he travelled to his native El Salvador with gifts and money, and after meeting with the victim’s mother, he had sex with the victim in a hotel room. After he left, Araujo Flores continued to contact the victim via telephone and later made two more trips to El Salvador to have sex with the victim. He paid cash for some of the sex acts, and also provided money for rent, food, clothing, and jewelry to the victim and her family.
In June 2014, Araujo Flores arranged for the victim and her mother to be smuggled from El Salvador into the United States through Texas. Ultimately, the victim and her mother stayed at a house Araujo Flores owned in Sterling, and periodically he would come to the home to have sex with the victim. Araujo Flores provided the victim with a counterfeit permanent resident card which included a false birthdate indicating she was over the age of 18. When the victim expressed that she did not want to have sex with Araujo Flores, he threatened her and said that if she told Araujo Flores’ wife about the sex, his wife would beat her and he would have the victim and her mother deported to El Salvador. Araujo Flores also threatened to stop providing food and to evict the victim and her mother from their apartment if she stopped having sex with him.
On Feb. 19, 2016, a federal jury convicted Araujo Flores of nine offenses, including four counts of sex trafficking of a child, three counts of foreign travel with intent to engage in illicit sexual conduct (also known as sex tourism), coercion and enticement, and harboring an alien for an immoral purpose.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Bill A. Miller, Director of the Diplomatic Security Service (DSS) for the U.S. Department of State; Colonel Edwin C. Roessler, Jr., Fairfax County Chief of Police; and Michael L. Chapman, Loudoun County Sheriff, made the announcement after sentencing by U.S. District Judge Liam O’Grady.
The case was investigated by DSS, the Loudoun County Sheriff’s Office, and the Fairfax County Police Department. Assistant U.S. Attorney Michael J. Frank prosecuted the case.
If you believe you are a victim in this case, please call the Fairfax County Police Department non-emergency number at 703-691-2131.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-CR-320.
3 New Defendants, including Chiropractor, Plead Guilty in Scheme involving nearly $600 Million in Fraudulent Claims by SoCal HospitalsRead the Press Release
Santa Ana, California – As two criminal cases became public this week, the Justice Department today announced three cases in which additional defendants have pleaded guilty to federal charges for participating in a long-running health care fraud scheme that illegally referred thousands of patients for spinal surgeries and generated nearly $600 million in fraudulent billings over an eight-year period.
The three new defendants join six others who were previously charged in relation to the government’s ongoing investigation into kickbacks for patient referrals and fraudulent bills for spinal surgeries performed at Pacific Hospital in Long Beach. The scheme involved tens of millions of dollars in illegal kickbacks to dozens of doctors, chiropractors and others. As a result of the illegal payments, thousands of patients were referred to Pacific Hospital, where they underwent spinal surgeries that led to more than $580 million in fraudulent bills being submitted during the last eight years of the scheme alone. Many of the fraudulent claims were paid by the California worker’s compensation system and the federal government through the Federal Workers’ Compensation System.
Two of the three new cases were recently ordered unsealed by United States District Judge Josephine L. Staton. The documents in the two unsealed cases became publicly available this week. In the now-unsealed cases and another case recently filed:
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Michael R. Drobot, 44, of Newport Beach, the son of Pacific Hospital owner Michael D. Drobot (Drobot Senior), pleaded guilty on March 4 to conspiracy and illegal kickback charges. Drobot Junior is scheduled to be sentenced on November 18.
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Chiropractor Michael E. Barri, 48, of San Clemente, who owned and operated the Santa Ana companies Tri-Star Medical Group and Jojaso Management Company, pleaded guilty on March 11 to a conspiracy count and admitted that he received illegal kickbacks for referrals to Pacific Hospital from 2009 through October 2013. During a nine-month period that ended in 2013, Barri admitted receiving $158,555 in illegal kickbacks after referring a dozen patients to Pacific Hospital, where they had back surgeries. As a result of his referrals, Pacific Hospital billed insurance carriers approximately $3.9 million for spinal surgeries. Barri is scheduled to be sentenced by Judge Staton on January 13, 2017.
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Linda Martin, 66, of Clovis, California, who was a marketer for Pacific Hospital who recruited medical professionals and others to refer patients with promises of kickbacks, pleaded guilty to a conspiracy charge on May 27. She is scheduled to be sentenced on August 19.
These three defendants join six others – including Drobot Senior – who have also pleaded guilty. All nine defendants have agreed to cooperate with the government’s ongoing investigation – dubbed “Operation Spinal Cap” – into the kickback scheme, which involved dozens of surgeons, orthopedic specialists, chiropractors, marketers and other medical professionals.
“Federal law prohibits kickbacks to health care professionals because these payments impose additional costs on all patients and corrupt the relationship between the doctor and patient,” said United States Attorney Eileen M. Decker. “This scheme resulted in what can only be called a massive amount of fraudulent billing. The continuing investigation into the scheme demonstrates our commitment to protecting patients and prosecuting those in the health care industry who care more about money than those in their care.”
“The guilty pleas announced today are the latest step in holding accountable the individuals who co-opted doctors and other specialized healthcare workers to carry out multiple kickback conspiracies that abused the state and federal healthcare systems for more than a decade,” said Deirdre Fike, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “The continuing results of Operation Spinal Cap are based on a tremendous effort by investigators and prosecutors handling this case, which is among the largest healthcare fraud schemes to be perpetrated in the state of California.”
As described in court documents, Drobot Senior – who was the owner and/or CEO of Pacific Hospital of Long Beach until late 2013 and who pleaded guilty in April 2014 – ran a 15-year-long scheme in which he and others submitted hundreds of millions of dollars in bills to workers’ compensation insurers and the U.S. Department of Labor for spinal surgeries and other procedures performed on patients who had been referred by dozens of doctors, chiropractors and others who were paid illegal kickbacks.
As part of the scheme, members of the conspiracy typically paid a kickback of $15,000 for each lumbar fusion surgery and $10,000 for each cervical fusion surgery. Some of the patients lived hundreds of miles away from Pacific Hospital, and closer to other qualified medical facilities. The patients were not informed that medical professionals had been offered kickbacks to induce them to refer the surgeries to Pacific Hospital. From 2005 through 2013 (which is only part of the overall scheme), Pacific Hospital billed insurers more than $580 million for spinal surgeries related to over 4,400 patients. Insurers paid the hospital more than $226 million for the surgeries performed as a result of illegal kickbacks.
Those involved in the scheme concealed the kickback payments by entering into bogus contracts to provide a “cover story” for the doctors, chiropractors and others who received illegal payments. For example, a number of doctors entered into agreements with a company owned by Drobot Senior, Pacific Specialty Physician Management (PSPM), under which the doctors received as much as $100,000 per month from PSPM in return for the right to purchase their medical practices – an option that was never exercised. In other cases, Pacific Hospital entered into contracts with doctors under which the doctors were to help the hospital collect on its surgery bills to insurance companies, but the hospital’s own collection staff, rather than the doctors, actually performed the collections work. Several doctors entered into lease agreements under which PSPM or Pacific Hospital paid rent for the use of office space, but rarely used the space. And other doctors had agreements to provide consulting services to Drobot’s companies, but did not actually provide the services. Still others, including marketers who introduced doctors to Pacific Hospital, had additional agreements with Drobot’s companies.
Two other Drobot companies – California Pharmacy Management (CPM) and its successor, Industrial Pharmacy Management (IPM) – were also important players in the scheme. Both companies set up and managed what were essentially mini-pharmacies within doctors’ offices. CPM and IPM bought and dispensed medication that the doctors prescribed to their patients, and these businesses received a portion of the money reimbursed by insurance companies for the medications. Drobot Senior, along with others at CPM and IPM, often agreed to increase the doctors’ shares of the insurance claims in return for those doctors’ referral of patients to Pacific Hospital. In many cases, for doctors who made such referrals, the conspirators “advanced” payments from CPM and IPM before the companies had collected any money for the medications or even prescribed them, and often simply wrote off these payments as losses when collections fell short. Drobot Junior was involved in these companies for over a decade, first as the manager of CPM, and then as co-owner and manager of IPM.
In his plea agreement, Drobot Junior admitted participating in the kickback scheme, primarily through his operation of CPM and IPM. As far back as 2005, Drobot Junior began personally soliciting doctors and chiropractors to enter into contracts with CPM and specifically discussed kickback arrangements, which were finalized by his father. Drobot Junior later acted a liaison when disputes arose concerning the payment of kickbacks to medical professionals or when those kickback recipients did not refer as many patients as expected.
Drobot Junior also admitted that he induced doctors who had contracted with CPM or IPM to also use products and services by companies he was affiliated with, including Medi-Lab Corporation. In return for referrals to Medi-Lab, Drobot Junior received monthly payments, some of which he used to make kickback payments to the doctors.
“These unscrupulous defendants thought they had figured out a clever scheme to line their pockets in their bilking of the insurance system. Federal and state worker’s compensation programs were not designed as a slush fund for the greedy,” stated IRS Criminal Investigation Acting Special Agent in Charge Anthony J. Orlando. “Law enforcement is serious about investigating these crimes and holding accountable those who defraud government health care programs and deprive patients of their right to honest services.”
“Kickback schemes such as these threaten the financial integrity of public healthcare programs,” said Special Agent in Charge Scott Pierce, USPS Office of Inspector General, Contract Fraud Investigations Division. “The workers’ compensation program benefits thousands of postal employees who have received legitimate on-the-job injuries. This case should send a clear message to all health care providers that workers’ compensation fraud is a federal crime that carries serious consequences and will not be tolerated.”
When he is sentenced, Drobot Junior will face a statutory maximum penalty of 10 years in federal prison.
Barri and Martin each face potential prison sentences of five years as a result of their guilty pleas.
Last year, the United States Attorney’s Office announced charges against five other defendants, including two doctors involved in the Pacific Hospital kickback scheme, and a similar scheme involving Tri-City Regional Medical Center in Hawaiian Gardens.
The ongoing investigation into abuses involving kickbacks paid for spinal surgery patients is being conducted by the Federal Bureau of Investigation; the United States Postal Service, Office of Inspector General; IRS Criminal Investigation; and the California Department of Insurance.
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2 June 2016
Woodinville Drywall Installation Company Sentenced for Immigration ViolationRead the Press Release
A Woodinville, Washington drywall company and its owner were sentenced today in U.S. District Court in Seattle to financial penalties and a probationary sentence for repeated violations of the Immigration Reform and Control Act of 1986, announced U.S. Attorney Annette L. Hayes. DJ DRYWALL, INC., and owner DAVID L. JONES, 47, pleaded guilty in February 2016 to knowingly encouraging and inducing a Mexican national to reside in the United States in violation of law. The guilty plea follows three different investigations and two civil fines regarding the company’s practice of illegally hiring undocumented workers.
“This employer repeatedly hired an illegal workforce as though the rules did not apply to him,” said U.S. Attorney Annette L. Hayes. “Allowing some businesses to ignore hiring rules creates an uneven playing field for all. These prosecutions are aimed at stopping this conduct and eliminating conditions for workers that are often unsafe and unsound.”
According to records filed in the case, DAVID L. JONES has a long work history in the drywall industry. He incorporated DJ DRYWALL in 2006 and is the company president and sole stockholder. In both 2008 and 2011, DJ DRYWALL was audited by Immigration and Customs Enforcement (ICE) and paid fines for violating immigration rules related to I-9’s -- a form required for employment. Due to the violations in 2008, DJ DRYWALL paid a $32,316 fine. Following a second audit in 2011, the company paid $27,405 for knowingly hiring 21 unauthorized aliens. A third investigation in 2013 again revealed a pattern of hiring unauthorized workers and paying them ‘off the books,’ or encouraging them to submit false I-9 documents or green cards.
Under the terms of the plea agreement, DAVID L. JONES forfeited $25,000 to the United States today at the sentencing hearing. JONES will be on two years of probation. The company will be on probation for five years and will pay a $75,000 fine over the next five years. While on probation JONES will be required to qualify all his employees through the E-Verify internet system.
“ICE is committed to holding businesses accountable when they knowingly hire an illegal workforce,” said Brad Bench, special agent in charge for ICE HSI in Seattle. “Employers who willfully violate our nation’s hiring laws gain an unfair economic advantage over their law abiding competitors. Our goal is to protect job opportunities for the nation’s legal workers and level the playing field for those businesses that play by the rules.”
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigation (HSI) and was prosecuted by Special Assistant United States Attorney Don Reno. Mr. Reno is an attorney with U.S. Immigration and Customs Enforcement specially designated to prosecute immigration crimes in federal court.
Wilkes-Barre Man Sentenced in Federal Court for Failing to Comply with Sex Offender Registration RequirementsRead the Press Release
SCRANTON-The United States Attorney's Office for the Middle District of Pennsylvania announced that a Wilkes-Barre man was sentenced today in federal court in Scranton by United States District Judge James M. Munley, to serve 41 months in prison on the charge of failing to comply with sex offender registration requirements.
According to United States Attorney Peter Smith, Joseph Brant, age 56, a resident of the Sherman Hills Apartments in Wilkes-Barre, pleaded guilty to being a person required to comply with the Sex Offender Registration and Notification Act by reason of a sexual abuse conviction under the laws of the State of New York, but failed to do so upon establishing a residence in Pennsylvania. The indictment charged that Brant traveled interstate to Pennsylvania, established a residence in Wilkes-Barre, but failed to register or update his sex offender registration information in Pennsylvania as required by the law.
In addition to the prison term, Judge Munley also ordered that Brant be supervised by a probation officer for five years following his release from prison, that he undergo sexual offender treatment, and that he comply with all registration requirements of the Sexual Offender Registration and Notification Act.
The charges were the result of an investigation by the United States Marshals Service - Scranton and New York offices. The case is being prosecuted by Assistant United States Attorney Michelle Olshefski.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Wheeling woman pleads guilty to heroin traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Angel Rae Klein, 27, of Wheeling, pled guilty today to heroin trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Klein possessed and sold heroin throughout late 2014 and early 2015 in Ohio County, West Virginia. In several instances, Klein sold heroin that contained fentanyl.
Klein pled guilty today to one count of “Conspiracy to Distribute Heroin and Fentanyl.” She faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
U.S. Attorney William J Ihlenfeld, II, and Assistant U.S. Attorney Randy Bernard are prosecuting the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
West Columbia Man Sentenced for Distributing Child PornographyRead the Press Release
GALVESTON – West Columbia resident Joseph Robert Shoemake, 36, has been sentenced to federal prison following his conviction of distribution of child pornography, announced U.S. Attorney Kenneth Magidson. Shoemake pleaded guilty Dec. 16, 2015.
Today, U.S. District Judge George C. Hanks Jr. ordered Shoemake to serve 151 months in federal prison. The sentence will be immediately followed by 15 years of supervised release, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender.
A federal grand jury indicted Shoemake Aug. 19, 2015, following an investigation conducted by the Houston FBI Child Exploitation Task Force. That investigation revealed Shoemake was making child pornography available to others through the use of peer-to-peer software over the Internet. The images included children under the age of 12 being sexually violated by adults and children under the age of 12 in positions which caused their genitalia to be displayed in a lewd/lascivious manner. Bondage involving children was also present on his computer. Several images and videos also depicted minors under the age of five.
Law enforcement executed a search warrant at the home of a third party where Shoemake was using the Internet connection at that residence to receive and distribute child pornography in an attempt to avoid detection. The examination of the computer media ultimately obtained from Shoemake revealed more than 1,229 digital images and approximately 15 videos which contained child pornography.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case, prosecuted by Assistant U.S. Attorneys Julie N. Searle and Sherri L. Zack, 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."
USNCB Meets with Chinese CounterpartsRead the Press Release
On June 1st, officials from NCB Beijing and Chinese Embassy visited the USNCB. Director Shank, Chief of Staff Graham, and General Counsel Smith met with them to discuss the valuable relationship between our NCBs, and their ability to promote cooperation.
Two dealers plead guilty to Federal drug crimesRead the Press Release
CHARLESTON, W.Va. – Two defendants pleaded guilty today to federal drug crimes, announced Acting United States Attorney Carol Casto. Jamarrio Dobbs, 35, of Detroit, pleaded guilty to distribution of heroin. In a separate drug prosecution, Keri Browning, 28, of Logan, pleaded guilty to distribution of oxycodone.
Jamarrio Dobbs admitted that on three occasions in February and March of 2016, he sold heroin to a confidential informant cooperating with law enforcement. On April 27, 2016, law enforcement executed a search warrant on the residence where Dobbs was staying and seized a handgun, over $7,000 in cash, and approximately 48 grams of crack. Dobbs was arrested immediately prior to the search and he informed officers that he had swallowed several bags of heroin. Officers took Dobbs to the hospital for treatment and recovered over two grams of heroin. Dobbs faces up to 20 years in federal prison when he is sentenced on September 7, 2016.
In a separate prosecution, Keri Browning admitted that on February 4, 2016, she sold oxycodone to a confidential informant working with law enforcement. The drug deal took place at Browning’s Rossmore Road residence in Logan. Browning faces up to 20 years in federal prison when she is sentenced on August 25, 2016.
The Metropolitan Drug Enforcement Network Team conducted the investigation of Dobbs. Assistant United States Attorney Monica D. Coleman is handling the prosecution of Dobbs. The plea hearing for Dobbs was held before United States District Judge Thomas E. Johnston.
The investigation of Browning was conducted by the United States Drug Enforcement Administration. Assistant United States Attorney John J. Frail is responsible for Browning’s prosecution. Browning’s plea hearing was held before United States District Judge Joseph R. Goodwin.
These prosecutions are part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
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Two Men Plead Guilty in Hacking, Spamming Scheme That Stole Personal Information from Millions of AmericansRead the Press Release
NEWARK, N.J. – Two men today admitted their roles in a computer hacking and identity theft scheme that hijacked customer email accounts, stole personally identifiable information (PII) from millions of people, and generated more than $2 million in illegal profits, U.S. Attorney Paul J. Fishman announced.
Tomasz Chmielarz, 33, of Rutherford, New Jersey, pleaded guilty to Count One and Count Three of an indictment charging him with conspiracy to commit fraud and related activity in connection with computers and conspiracy to commit fraud and related activity in connection with electronic mail. Devin James McArthur, 28, of Ellicott City, Maryland, pleaded guilty to Count Two of the indictment charging him with conspiracy to commit wire fraud. Both defendants pleaded today before U.S. District Judge William J. Martini in Newark federal court.
According to documents filed in this case and statements made in court:
Beginning as early as 2011, Timothy Edward Livingston, 30, of Boca Raton, Florida, and others allegedly operated A Whole Lot of Nothing LLC — a business that specialized in sending unsolicited, or “spam,” emails on behalf of its clients. Livingston’s clients included legitimate businesses, such as insurance companies that wished to send bulk emails to advertise their businesses, as well as illegal entities, such as online pharmacies that sold narcotics without prescriptions. Typically, Livingston charged $5 to $9 for each spam email that resulted in a completed transaction for a client.
Many internet service providers use filters to prevent spam from reaching their customers’ email accounts. Chmielarz admitted that beginning in January 2012, Livingston solicited him to write computer programs that send spam in a manner that conceals the true origin of the email and bypasses spam filters. In addition, Livingston and Chmielarz used proxy servers and botnets to remain anonymous, hide the true origin of the spam, and evade anti-spam filters and other spam blocking techniques. Livingston also allegedly registered certain websites used in the spam campaigns in the name of his alias, “Mark Lloyd,” to avoid detection.
Chmielarz admitted that he and Livingston hacked into individual email accounts and seized control of corporate mail servers to further their spam campaigns. For instance, they created custom software designed to hack into the customer email accounts of a company identified in the indictment as “Corporate Victim 1.” Once their email account software gained access to a Corporate Victim 1 user’s account, it created sub-accounts and used them to send out spam. By using proxy servers and Corporate Victim 1’s customer accounts, Livingston and Chmielarz were able to send out massive amounts of spam without identifying themselves as the senders.
Chmielarz also admitted that he and Livingston created custom software that exploited vulnerabilities in a number of corporate websites, including one identified in the indictment as “Corporate Victim 2,” which allowed Livingston and Chmielarz to use Corporate Victim 2’s email servers to send out spam that appeared to be from Corporate Victim 2, but in reality was from Livingston and his conspirators.
Livingston, Chmielarz and McArthur also worked together to steal databases containing the PII of millions of Americans for use in spam campaigns. In May of 2013, Livingston and Chmielarz discussed stealing confidential business information from “Corporate Victim 3,” as identified in the indictment. In an online chat, Livingston told Chmielarz, “here is the site I need scrapped (sic),” and provided Chmielarz with an address for Corporate Victim 3’s website and the login credentials for an employee. “Scraping” is a technique employed to extract large amount of data from websites.
In another online chat, Livingston told Chmielarz that the database they were going to steal from Corporate Victim 3 contained 10 million records. Livingston subsequently paid Chmielarz to write a computer program to steal the database.
From February 2014 through February 2015, McArthur worked as a sales representative at a corporation identified in the indictment as “Corporate Victim 4.” In a series of online chats in August 2014, Livingston, Chmielarz, and McArthur discussed using McArthur’s position at Corporate Victim 4 to steal confidential business information, including the PII of millions of the company’s customers.
McArthur admitted that on Aug.11, 2014, he gave Livingston unauthorized access to a remote administration tool on a computer connected to Corporate Victim 4’s network. Livingston and Chmielarz used the access to steal the names, addresses, phone numbers, and email addresses of potential, current, and former Corporate Victim 4 customers for use in spam campaigns.
In an online chat dated Sept. 3, 2014, Livingston and McArthur discussed the contents of the database that they had stolen from Corporate Victim 4. McArthur estimated that they had succeeded in stealing 24.5 million records.
The charges of conspiracy to commit fraud and related activity in connection with computers and conspiracy to commit fraud and related activity in connection with electronic mail to which Chmielarz pleaded guilty each carry a maximum potential penalty of five years in prison and $250,000 fine, or twice the gain or loss from the offense. The conspiracy to commit wire fraud charge to which McArthur pleaded guilty carries a potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing for both defendants is scheduled for Sept. 13, 2016.
Livingston is scheduled for trial on Oct. 13, 2016, before Judge Martini. The charges and allegations against him are merely accusations and he is considered innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Daniel Shapiro of the Computer Hacking and Intellectual Property Section of the Economic Crimes Unit in Newark, Senior Trial Attorney William Hall of the Department of Justice’s Criminal Division Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Peter Gaeta of the Asset Forfeiture-Money Laundering Unit in Newark.
Defense counsel:
Chmielarz: Michael Koribanics Esq., Clifton, New Jersey
McArhtur: Joshua P. Cohn, Saddle Brook, New Jersey
Two Lansing "Homeless IRS Scam" Defendants Get Prison TimeRead the Press Release
GRAND RAPIDS, MICHIGAN — Two additional defendants connected to a Lansing, Michigan area family-run tax scam were sentenced in federal court, U.S. Attorney Patrick Miles announced today. Defendant Ruqayya Aida Abdul-Hakim was sentenced to a term of 72 months (six years) in prison, three years of supervised release and restitution in the amount of $707,444.73. Ms. Abdul-Hakim admitted filing 587 false federal tax returns during a two year time period. Defendant Imran Dawood Ibn-Abdurrahim was sentenced to a term of 54 months (four and a half years) in prison, three years of supervised release and restitution in the amount of $254,142.60. Mr. Ibn-Abdurrahim admitted filing 200 false federal tax returns.
In earlier hearings, defendant Tsiidzoyedu Callista Chiwocha, the mother of Ruqayya Aida Abdul-Hakim and Imran Dawood Ibn-Abdurrahim, was sentenced to a term of incarceration of 12 months plus one day for filing false tax returns; and, Qasim Ibn-Ishaq Verser was sentenced to a term of 36 months of incarceration for filing false tax returns. Mr. Verser’s federal sentence will be served consecutively to his state felony drug-trafficking convictions. And in an earlier prosecution, Taka Chiwocha-Crowell pled guilty to filing false tax returns and was sentenced to 42 months’ incarceration. Two additional co-defendants still face federal charges in this district for this same alleged tax scheme; they remain innocent until proven guilty.
The tax scheme involved deceiving citizens into providing their personal identification information by promising them "free stimulus money." Many of the victims in this case were homeless persons or suffered from addiction and disability issues. The tax returns typically contained false reporting of undocumented income and abusive use of the Earned Income credit. Complaints by local citizens prompted the FBI to open a criminal investigation, including obtaining multiple search warrants to seize evidence of a tax fraud scheme. During the multi-year investigation, more than fifty subpoenas were issued to track down the tax refunds which had been paid into numerous bank accounts. In some instances, the personal identification information was used to file a tax return in a successive year.
"My office has no tolerance for those who take advantage of the trust of the vulnerable only to scam the system and line their own pockets," stated U.S. Attorney Miles. He was joined in the announcement by Jarod J. Koopman, Special Agent in Charge, Internal Revenue Service – Criminal Investigation and David P. Gelios, Special Agent in Charge, FBI Detroit Division.
The investigation was conducted by the Lansing Office of the FBI and the Lansing Office of IRS Criminal Investigations. The case is being prosecuted by Assistant U.S. Attorney Michael A. MacDonald.
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Two Harrisburg Men Charged Federally with Possession of Child PornographyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that John L. Gilbert, III, age 36, and Timothy Rissmiller, age 44, both residents of Harrisburg, Pennsylvania were indicted yesterday by a grand jury in Harrisburg and charged with possession of child pornography.
According to U.S. Attorney Peter Smith, Gilbert and Rissmiller were taken into custody by the Harrisburg Bureau of Police after they allegedly printed photographs containing child pornography at a store in Harrisburg. Harrisburg police also searched the residence of the two men and found additional evidence of alleged child pornography.
This investigation is being conducted by the Federal Bureau of Investigation and the Harrisburg Bureau of Police and is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
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."
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of 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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Two Former Deutsche Bank Employees Indicted on Fraud Charges in Connection with Long-Running Manipulation of LiborRead the Press Release
Note: The court entered judgments of acquittal as to Matthew Connolly and Gavin Campbell Black on all counts alleged in the indictment.
Two former Deutsche Bank AG (Deutsche Bank) traders—the bank’s supervisor of the Pool Trading Desk in New York and a derivatives trader in London—were indicted for their alleged roles in a scheme to manipulate the U.S. Dollar (USD) London InterBank Offered Rate (LIBOR), a benchmark interest rate to which trillions of dollars in interest rate contracts were tied.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office made the announcement after the indictment was unsealed today.
On May 31, a federal grand jury in the Southern District of New York returned a 10-count indictment charging Matthew Connolly, 51, of Basking Ridge, New Jersey, and Gavin Campbell Black, 46, of London, with one count of conspiracy to commit wire fraud and bank fraud and nine counts of wire fraud for their participation in a scheme to manipulate the USD LIBOR rate in a manner that benefited their own or Deutsche Bank’s financial positions in derivatives that were linked to those benchmarks. Connolly was taken into custody today and is expected to make his initial appearance this afternoon. The case has been assigned to Chief U.S. District Judge Colleen McMahon of the Southern District of New York.
Michael Curtler, 43, of London, a former Deutsche Bank derivatives trader and manager of the London Money Market Derivatives (MMD) Desk in London, pleaded guilty in October 2015 to one count of conspiracy to commit wire and bank fraud in connection with his role in the scheme.
“This indictment charges two senior traders with manipulating LIBOR to gain an illegal advantage in the market,” said Assistant Attorney General Caldwell. “Millions of people around the world rely on LIBOR and other global financial benchmarks as accurate and honestly-reported rates. Manipulation of these rates undermines the integrity of our financial system and the Justice Department will continue to hold accountable both the financial institutions and the individuals responsible for this conduct.”
“Healthy financial markets are crucial to a successful economy,” said Deputy Assistant Attorney General Snyder. “By corrupting this important benchmark rate, the defendants undermined the integrity of financial markets here and around the world. The department is committed to holding individuals accountable for the roles they play in committing complex financial crimes.”
“These federal charges outline the alleged criminal actions perpetrated by two banking insiders to manipulate the LIBOR interest rate, which is used to set interest rates for consumer loan products, including mortgages and credit cards,” said Assistant Director in Charge Abbate. “This indictment comes as a result of the dedicated and tireless efforts of agents, analysts and prosecutors committed to holding accountable those who deliberately compromise the integrity of our financial markets for personal gain.”
According to the indictment, LIBOR was an average interest rate, calculated based on submissions from leading banks around the world, reflecting the honest and unbiased rates those banks believed they would be charged if borrowing from other banks. LIBOR was published by the British Bankers’ Association, a trade association based in London. The published LIBOR “fix” for USD currency was the result of a calculation based upon submissions from a panel of 16 banks, including Deutsche Bank.
According to allegations in the indictment, Connolly was Deutsche Bank’s director of the Pool Trading Desk in New York, where he supervised traders who traded USD LIBOR-based derivative products. Black was a director on Deutsche Bank’s MMD Desk in London, who also traded USD LIBOR-based derivative products. In order to increase Deutsche Bank’s profits on derivatives contracts tied to the USD LIBOR, Connolly allegedly directed his subordinates, and Black allegedly asked Curtler and others at Deutsche Bank, to submit false and fraudulent LIBOR contributions consistent with the traders’ or the bank’s financial interests rather than the honest and unbiased costs of borrowing.
The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In April 2015, Deutsche Bank entered into a deferred prosecution agreement to resolve wire fraud and antitrust charges and Deutsche Bank Group Services (UK) Limited pleaded guilty to one count of wire fraud, collectively agreeing to pay a $775 million fine, for the bank’s role in engaging in a scheme to defraud counterparties to interest rate derivatives trades by secretly manipulating USD LIBOR and other currencies submissions.
The Justice Department has previously announced resolutions with five other banks for their roles in manipulation of benchmark interest rates, including Barclays Bank PLC, UBS AG, The Royal Bank of Scotland plc, Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. and Lloyds Banking Group plc. The department has also charged 13 individuals as a result of this investigation. Three of those individuals have pleaded guilty, two have been convicted at trial, and the charges against the others are pending.
Special agents, forensic accountants and intelligence analysts of the FBI’s Washington Field Office are conducting the investigation. Senior Trial Attorney Carol L. Sipperly and Trial Attorneys Alison L. Anderson and Richard A. Powers of the Criminal Division’s Fraud Section and Trial Attorney Daniel M. Tracer of the Antitrust Division’s New York Office are prosecuting the case. Fraud Section Deputy Chief Benjamin D. Singer and Assistant Chief Jennifer L. Saulino have also provided valuable assistance in this matter.
The investigation leading to this case has required, and has greatly benefited from, a diligent and wide-ranging assistance among various enforcement agencies both in the United States and abroad. In particular, the department acknowledges and expresses its appreciation for this assistance from the Commodity Futures Trading Commission’s Division of Enforcement, the U.K. Financial Conduct Authority and the U.K. Serious Fraud Office. More than 20 individuals have been charged by the U.K. Serious Fraud Office for their roles in engaging in benchmark rate manipulation.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit www.stopfraud.gov.
Tuscaloosa Men Indicted for Conspiracy to Distribute Marijuana through the U.S. MailRead the Press Release
BIRMINGHAM – The FBI today arrested one of two Tuscaloosa men indicted in May on charges that they conspired to distribute marijuana and to bribe U.S. Postal Service employees to deliver the drug, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton, U.S. Postal Inspector in Charge Adrian Gonzalez and West Alabama Narcotics Squad Capt. Wayne Robertson.
A federal grand jury in May indicted QUINCY TERRELL DOSS and MANUEL JOHNSON JR., both 35, for conspiracy to distribute marijuana in Tuscaloosa County between August 2014 and July 30, 2015. The grand jury’s five-count indictment also charges Doss and Johnson with conspiring, between April 2015 and July 30, 2015, to bribe Postal Service employees, and with possessing with intent to distribute marijuana on May 14, 2015. The indictment also charges Johnson with bribing a mail carrier on June 22, 2015, and charges Doss, individually, with possessing with intent to distribute marijuana on July 30, 2015.
Agents arrested Doss this morning at his at home. He was detained following an appearance before U.S. Magistrate Judge John E. Ott. Johnson already was in custody on state charges related to the marijuana distribution. Johnson is scheduled for arraignment in U.S. District Court on June 9.
“We are entitled to expect integrity and honesty from Postal Service employees,” Vance said. “My office is committed to prosecuting corrupt postal employees, as well as those who attempt to bribe postal workers in order to further their own criminal activities.”
“The Postal Service is in the business of moving the U.S. mail. It has no interest in being an unwitting accomplice to anyone using the U.S. mail to distribute illegal drugs, and is committed to root out such conspiracies,” Gonzalez said. “Part of the mission of the Postal Inspection Service is to ensure a safe and secure work environment for our employees. This alleged activity by these defendants posed a significant threat to the postal employees and community we strive to protect. I commend the hard work and countless hours put forth by all of the law enforcement agencies involved in this investigation."
“Today’s arrest shows the FBI’s commitment to working together with our law enforcement partners in addressing drug conspiracy, bribery, and corruption at every level,” Stanton said.
Robertson, of the West Alabama Narcotics Squad, said, "Our team is focused on stopping illegal drugs from coming onto Tuscaloosa County streets, whether those drugs come here by traditional means, or through mail and package services. We will continue to work with our law enforcement partners to stem that flow."
Three Postal Service employees involved in this case were charged previously and have entered guilty pleas for their roles in the conspiracy.
The maximum penalty for the charges of conspiracy to distribute marijuana, conspiracy to bribe a public official, and possession with intent to distribute marijuana is five years in prison and a $1 million fine. The maximum penalty for bribing a public official is two years in prison and a $250,000 fine.
The FBI, U.S. Postal Inspection Service and West Alabama Narcotics Squad investigated the case, which Assistant U.S. Attorney Brad Felton is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Texas man sentenced to 60 months in prison for possession with intent to distribute cocaineRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Texas man was sentenced Wednesday to 60 months in prison for possessing cocaine.
Laraymeon Jevon Watson, 32, of Lufkin, Texas, was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of possession with intent to distribute cocaine. He was also sentenced to three years of supervised release. According to the February 25, 2016 guilty plea, Watson received cocaine powder and Ecstasy pills from a supplier in Texas. When his vehicle was stopped on June 24, 2015 near Greenwood, La., for a traffic violation, approximately 8 ounces of cocaine powder and more than 3,000 Ecstasy pills were found. He admitted he planned to sell the drugs.
The defendant was arrested as part of Organized Crime Drug Enforcement Task Force (OCDETF) Operation “River City Blues.” The DEA, the Louisiana State Police, and the Lufkin Police Department investigated the case. The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for targeting national and regional level drug trafficking organizations, coordinating the necessary law enforcement entities and resources to disrupt and dismantle the targeted criminal organization, and to seize its assets.
Assistant U.S. Attorney James G. Cowles Jr. prosecuted the case.
Tennessee Man Sentenced to Prison on Perjury Charges for Falsely Impersonating His BrotherRead the Press Release
ASHEVILLE, N.C. - Today, U.S. District Judge Martin Reidinger sentenced Robby Lynn Hawkins, 36, of Rockwood, Tennessee to 15 months in prison on perjury charges for falsely impersonating his brother in court proceedings, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Judge Reidinger also ordered Robby Hawkins to serve two years under court supervision after he is released from prison.
U.S. Attorney Rose is joined in making today’s announcement by Steve Kloster, Chief Ranger of the Great Smoky Mountains National Park.
According to filed documents and statements made in court, on November 28, 2015, Park Rangers conducted a traffic stop of the vehicle Robby Hawkins was driving within the Great Smoky Mountains National Park. The vehicle had been reported as stolen in Jackson City, Tennessee. Robby Hawkins told law enforcement that his name was “Ricky Lynn Hawkins,” which is his brother’s name, and gave his brother’s date of birth. Subsequently, Robby Hawkins was arrested for driving with a revoked license and possession of a stolen vehicle.
According to court records, during court proceedings that followed, Robby Hawkins was addressed by the court as “Ricky Hawkins,” and signed court documents using his brother’s name. Court records show that, under his brother’s name, Robby Hawkins was then sentenced to 15 days in prison after pleading guilty to a petty offense charge of possession of a stolen vehicle. According to court records, law enforcement discovered soon thereafter that “Ricky Hawkins” was incarcerated in Indiana, and that Robby Hawkins had falsely impersonated him in court proceedings. Robby Hawkins was then charged with one count of perjury in a court document. He pleaded guilty to the charge in February 2016.
The investigation was handled by the Rangers of the .The prosecution was handled by the U.S. Attorney’s Office in Asheville.
Sixteen Charged in Drug Conspiracy Operating in Buncombe and Rutherford CountiesRead the Press Release
ASHEVILLE, N.C. – United States Attorney Jill Westmoreland Rose announced today that 16 individuals are facing multiple federal drug charges for their involvement in a drug conspiracy. A criminal indictment was returned on May 18, 2016, and was unsealed today in federal court. Law enforcement arrested 11 of the 16 charged on Tuesday during an early morning round-up. Of the remaining five defendants, one is currently in state custody on state charges and four others have not been arrested yet.
According to allegations contained in the criminal indictment, from on or about September 2014, to about December 2015, the defendants operated as a drug conspiracy responsible for trafficking crack cocaine in and around Buncombe and Rutherford Counties and surrounding areas.The 16 defendants named in the 91-count indictment are each charged with conspiracy to distribute crack cocaine and related drug offenses.They are:
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Marquise Brown, 27, of Asheville, NC. (not arrested)
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Carlos Byrd, 34, of Asheville, NC. (arrested)
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Christopher Drayton, 27, of Black Mountain, NC. (arrested)
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Charles Eric Freeman, 50, of Rutherfordton, NC. (arrested)
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Tyquise Deandre Griffin, 22, of Asheville, NC. (arrested)
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Aaron Jones, 35, of Asheville, NC. (in state custody)
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Richard Kimble, 44, of Asheville, NC. (arrested)
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Kevin Lamont Logan, 42, of Rutherfordton, NC. (arrested)
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Roderick Martin, 34, of Asheville, NC. (not arrested)
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Caliph Devon Mayo, 27, of Canton, NC. (arrested)
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Tyler McAfee, Age, 23, of Asheville, NC. (arrested)
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Michael Tyrone Moore, 27, of Asheville, NC. (not arrested)
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Levar William Morris, 36, of Asheville, NC. (arrested)
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Quinton Javon Mosley, 33, of Rutherfordton, NC. (not arrested)
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Danyail Antonio Pea, 32, of Asheville, NC. (arrested)
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Reco Lamar Mosley, 33, of Asheville, NC. (arrested)
(See chart below for federal charges and penalties for each defendant).
“Today’s arrests are the culmination of a 15-month long investigation conducted by our federal and local law enforcement partners.The defendants charged in the indictment, some of whom have alleged gang ties, operated a drug conspiracy distributing crack cocaine, an illegal substance known for its incredibly high addiction rates and severe, even deadly, effects.The arrest of these individuals will bring immediate relief to neighborhoods affected by their drug trafficking activities and drug-fueled violence. We will continue to work alongside our law enforcement partners to conduct targeted investigations and stem the flow of drugs in our communities,” said U.S. Attorney Rose.
Special Agent in Charge Daniel R. Salter of the Drug Enforcement Administration (DEA) stated, “Today is a victory not only for the multitude of law enforcement agencies who dismantled this organization, but for the citizens of Buncombe and Rutherford Counties. Now that these criminals have been removed from the streets, the poisonous drugs that they would have sold will never reach the consumer. This effort would not have been successful without the high level of cooperation between our federal, state and local law enforcement counterparts.”
“ATF will continue to work closely with our federal, state and local law enforcement partners to focus on reducing violent crime in our communities by targeting drug traffickers and the associated violent criminal activity,” said C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives.
“The strong working relationship between the Rutherford County Sheriff's Office, DEA and the U.S. Attorney's Office is a beneficial force multiplier. Many times, narcotics investigations leave county lines and even cross into other states. Having the ability to reach out and further an investigation with federal assistance is the only answer to cases like these. The results of this investigation will have positive effects in our county for a long time,” said Sheriff Chris Francis of the Rutherford County Sheriff’s Office.
Those arrested this week will appear in federal court today before U.S. Magistrate Judge Dennis Howell. Arrest warrants have been issued for Marquise Brown, Reco Lamar Mosely, Michael Tyrone Moore and Roderick Martin. Aaron Jones is currently in state custody and will appear in federal court on the federal charges at a later date.
The charges contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney Rose praised the outstanding efforts of special agents of the Drug Enforcement Administration (DEA) under the direction of Special Agent in Charge Daniel R. Salter; the Internal Revenue Service - Criminal Investigation (IRS-CI) under the direction of Special Agent in Charge Thomas J. Holloman III; the Federal Bureau of Investigation (FBI), under the direction of Special Agent in Charge John A. Strong; the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Special Agent in Charge C.J. Hyman; deputies of the Buncombe County Sheriff’s Office under the direction of Sheriff Van Duncan and the Rutherford County Sheriff’s Office under the direction of Sheriff Chris Francis; and officers of the Asheville Police Department under the direction of Chief Tammy Hooper for their work in investigating this case. U.S. Attorney Rose also noted the invaluable assistance provided by the Columbus Police Department.
Assistant U.S. Attorney Thomas Kent of the U.S. Attorney’s Office in Asheville is prosecuting the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
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Sex Offender Sentenced to 21 Months for Failing to Register While Living in StephentownRead the Press Release
ALBANY, NEW YORK – Walter Boutwell, age 56, was sentenced today to serve 21 months in prison for failing to update his sex offender registration after moving to Stephentown, New York from Massachusetts.
The announcement was made by United States Attorney Richard S. Hartunian and United States Marshal David McNulty.
United States District Judge Mae A. D’Agostino also sentenced Boutwell to serve 5 years of supervised release, to begin after his release from prison.
Boutwell was designated a Level 3 Sex Offender – the highest level – by the Massachusetts Sex Offender Registry Board following his 1982 conviction for aggravated rape.
Federal law requires a sex offender to register where he or she resides, is employed, or is enrolled as a student, and to keep any registration current. Boutwell registered at an address in Pittsfield, Massachusetts on April 21, 2015. By June, 2015, Boutwell was living in Stephentown, New York and did not update his registration.
This case was investigated by the United States Marshals Service Sex Offender Investigation Branch, North East Region, and the United States Marshals New York/New Jersey Regional Fugitive Task Force. The case was prosecuted by Assistant United States Attorney Solomon B. Shinerock.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Sentencing in Heroin and Methamphetamine SeizureRead the Press Release
EUGENE, Ore. – Miguel Angel Reyna-Ramos, 38, was sentenced to serve 72 months in federal prison after pleading guilty to possession with intent to distribute 50 grams, or more, of a mixture and substance containing methamphetamine.
The defendant was stopped by police in May 2015 while driving on Interstate 5 near Medford, Oregon. The defendant did not have a driver’s license and also admitted the car he was driving was not registered to him. After the defendant declined consent to search, a narcotics detection dog was deployed. The dog alerted to 2 kilograms of heroin and 8 kilograms of methamphetamine in the car’s luggage compartment.
In handing down the sentence, U. S. District Judge Michael McShane considered the defendant’s background, including his lack of prior arrests, and the nature and circumstances of the crime, including the quantity of methamphetamine and heroin. Judge McShane noted that, as an illegal alien, the defendant would most likely be deported after serving his prison sentence.
This case was investigated by the Oregon State Police and the DEA. Assistant U.S. Attorney William “Bud” Fitzgerald prosecuted the case.
Romanian National Pleads Guilty to ATM Skimming FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MIHAI ALEXANDRU DINU, age 41, of Romania, pled guilty to one count of bank fraud related to the use of ATM “skimming” devices.
According to court records, in January of 2015, the United States Secret Service and the Louisiana Financial Crimes Task Force began investigating the unauthorized collection of debit card numbers through the installation of “skimming devices” on various ATM machines and the subsequent illegal use of fake debit cards in the Eastern District of Louisiana. In March of this year, DINU and another man were captured on surveillance video using fake debit cards to withdraw funds from three local bank accounts. Subsequently, DINU admitted to investigators that he had illegally entered the United States and joined in with a group of individuals who used fake passports and fake driver’s licenses to travel within the United States for the purpose of making the illegal ATM withdrawals. DINU also participated in a similar ATM skimming conspiracy in Virginia prior to arriving in Louisiana.
DINU faces a maximum sentence of thirty (30) years in prison, a maximum of $250,000 in fines, and up to three (3) years of supervised release. U.S. District Judge Nannette Jolivette Brown set sentencing on September 8, 2016.
U.S. Attorney Polite praised the work of the Agents from the United States Secret Service and the Louisiana Financial Crimes Task Force, along with the St. Tammany Parish Sheriff’s Office in investigating this matter. Assistant United States Attorneys Edward J. Rivera and Carter Guice are in charge of the prosecution.
Project Safe Childhood Salem Man Sentenced for Child Pornography PossessionRead the Press Release
CONCORD, NEW HAMPSHIRE: Matthew Castricone, 27, of Salem, New Hampshire, was sentenced to 36 months in federal prison by the United States District Court for the District of New Hampshire after pleading guilty to one count of possessing child pornography, announced United States Attorney Emily Gray Rice.
A federal investigation revealed that an individual had accessed a website devoted to child pornography from the defendant’s Salem residence. When a search warrant was subsequently obtained and executed at the defendant’s residence in October 2015, agents discovered dozens of videos of child pornography on the defendant’s personal computer.
The case was investigated by the Federal Bureau of Investigation (Boston and New Hampshire offices), and the Salem New Hampshire Police Department.
The case was prosecuted by Assistant United States Attorney Nick Abramson.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
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President of Pharmaceutical Companies Sentenced to 60 Months in Prison for Long-Running Scheme to Sell Misbranded and Unapproved Chemotherapy and Other Prescription DrugsRead the Press Release
Earlier today in Central Islip, NY, William Scully, the president of Pharmalogical, Inc. (Pharmalogical) d/b/a Medical Device King and MDK, and Taranis Medical Corp. (Taranis), was sentenced to 60 months’ imprisonment and ordered to forfeit to the government close to $900,000 in criminal proceeds, following his conviction on November 12, 2015, after a six-week jury trial, of 64 felonies for mail and wire fraud, violations of the Food Drug & Cosmetic Act (FDCA), unlicensed wholesale distribution of prescription drugs, and multiple related conspiracy charges.
The convictions arose from Scully’s leadership role in a long-running scheme to sell misbranded and unapproved pharmaceutical products, including chemotherapy drugs for infusion into Stage 4 cancer patients, to medical providers across the United States. Evidence elicited at trial from 40 witnesses established that Scully deceived a wide array of doctors and cancer clinics into believing that he was selling legitimate FDA-approved products when, in reality, he was selling unapproved products imported through a series of unidentified middlemen in Turkey and elsewhere overseas. Many of the products Scully sold were highly sensitive, so-called “cold-chain” biologic drugs that did not have FDA-required warnings of potentially deadly side effects. The sentencing proceedings were held before U.S. District Judge Arthur D. Spatt.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Director George M. Karavetsos, Food and Drug Administration, Office of Criminal Investigations, New York.
“Those considering bypassing the FDA’s regulatory authority by selling unapproved and misbranded pharmaceutical products jeopardize the health and well-being of our nation’s patient population. All such individuals are on notice that they will be prosecuted to the fullest extent of the law,” stated United States Attorney Capers. Mr. Capers expressed his grateful appreciation to the FDA for its assistance in the investigation and prosecution of the defendant.
“This sentence reflects the serious nature of the defendant’s actions,” said FDA Office of Criminal Investigations Director Karavetsos. “Americans must have confidence that the drugs they are receiving are safe, effective and fully comply with U.S. laws. Our office will aggressively pursue those who place patients at risk and who seek to profit from the importation and distribution of potentially dangerous foreign unapproved drugs.”
Scully owned and operated Pharmalogical, MDK, and Taranis, which collectively sold over $17 million in pharmaceutical drugs and devices. Scully purchased these products through wholesalers overseas and received them in the United States with shipping labels stating “product samples” with “no commercial value,” even though the packages often contained tens of thousands of dollars of misbranded and unapproved prescription drugs. Scully would then execute “bait-and-switch” transactions with doctors by advertising FDA-approved products on his website but then sending them misbranded and unapproved products. Several doctors and health care professionals testified at trial that Scully deceived them into believing that the drugs they were purchasing were FDA-approved and legal. Ultimately, the drugs were infused into patients, including cancer patients and patients with Crohn’s disease.
Scully continued to sell these drugs well after his office was searched by FDA agents and all of his existing products were seized. To conceal the continued sales, he covertly set up a new company, Taranis, which he operated without a license and out of a storage space where he kept the drugs. Even after that storage space was searched and additional products were seized, Scully continued selling products to unsuspecting doctors.
The government’s case was prosecuted by Assistant United States Attorneys Charles P. Kelly and Kenneth M. Abell.
The Defendant:
WILLIAM SCULLY
Age: 47
Residence: Commack, New YorkPottawattamie County Man Sentenced to Prison for Firearms OffensesRead the Press Release
COUNCIL BLUFFS, IA – On June 1, 2016, Nicholas M. Malone, 27, of Pottawattamie County, was sentenced by Chief United States District Court Judge John A. Jarvey to 60 months in prison, followed by three years of supervised release, for felon in possession of a firearms and possession of stolen firearms charges, announced Acting United States Attorney Kevin E. VanderSchel.
Malone entered his guilty pleas on February 23, 2016, to illegally possessing stolen firearms, based on his arrest on June 5, 2015, by the Council Bluffs Police Department. At the time of his arrest, Malone was operating a stolen pick-up truck and was found to be in possession of methamphetamine, drug paraphernalia, a loaded .40 caliber hand-gun, a Tikka .204 Rifle, and assorted ammunition. The firearms and ammunition had been reported stolen from Oakland, Iowa prior to Malone’s arrest.
This matter was investigated by the Council Bluffs Police Department, with support from the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Pittsburgh Man Pleads Guilty in Heroin Trafficking ConspiracyRead the Press Release
PITTSBURGH – An Allegheny County resident pleaded guilty in federal court to a charge of conspiracy to possess with intent to distribute and distribute a quantity of heroin, United States Attorney David J. Hickton announced today.
William Blair, 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, William Blair was intercepted over the wire conspiring with others to possess with intent to distribute and distribute heroin, which the conspirators obtained in Cleveland, OH, and transported to the Western District of Pennsylvania for further distribution.
Judge Hornak scheduled sentencing for Jan. 7, 2016. The law provides for a maximum sentence of 20 years in prison, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s bond.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of William Blair.
Piedmont Man Sentenced for Failing to Pay Taxes and Concealing Bankruptcy AssetsRead the Press Release
United States Attorney Randolph J. Seiler announced that a Piedmont, South Dakota, man convicted of Failure to Withhold, Properly Account For, and Pay Over Tax, and Concealment of Bankruptcy Assets was sentenced on May 27, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court. The Defendant was charged on January 26, 2016, and pleaded guilty on February 12, 2016.
Bernard Haag, age 58, was sentenced to 18 months of imprisonment, 3 years of supervised release, ordered to pay a $200 special assessment to the Federal Crime Victims Fund, $230,854.85 in restitution to the Internal Revenue Service, and $70,000 to various bankruptcy creditors.
During the years 2005 through 2009, Haag was the president and sole shareholder of Big Dog Industries, Inc. (“Big Dog”), a corporation located in Piedmont. During the years 2010 through 2012, Haag was the sole member of Concept Development, LLC (“Concept Development”), a limited liability company located in Piedmont. From 2005 through 2012, Haag used Big Dog and Concept Development to operate a day care business in Piedmont, under the business name Piedmont Preschool and Child Care Center (“PPCCC”).
During the same time period, Haag withheld taxes from his employees’ wages, including federal income tax, social security, and Medicare taxes for employees of Big Dog and Concept Development, and willfully failed to pay over those taxes to the United States for all of 2005 through 2011, and three quarters of 2012. Haag also willfully failed to pay the employer’s portion of taxes on wages paid to employees of Big Dog and Concept Development for all of 2005 to 2012. Rather than paying over the taxes, Haag used a portion of the withholdings for his own personal use.
In 2006, Haag filed for a bankruptcy. During the pendency of his bankruptcy proceeding (2006-2012), Haag knowingly concealed property belonging to his bankruptcy estate from the bankruptcy trustee, including taxes he withheld from employee’s paychecks but failed to pay over to the government during the years 2005 through 2011. Haag also concealed substantial amounts of gross income related to the operation of PPCCC from the bankruptcy trustee.
The investigation was conducted by the Internal Revenue Service Criminal Investigation Division. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Philadelphia Man Sentenced for Sex TraffickingRead the Press Release
PHILADELPHIA - Jerel Jackson, 30, of Philadelphia, PA, was sentenced today to 30 years in prison for five counts of sex trafficking of minors and adults by force. On March 18, 2015, Jackson pleaded guilty to the charges. In addition to the prison term, U.S. District Court Judge C. Darnell Jones ordered a $500 special assessment and five years of supervised release. A separate restitution hearing will be held at a later date.
The case was investigated by the Federal Bureau of Investigation, with assistance from the Philadelphia Police Department Special Victims Unit, the Tinicum Township Police Department, and the Dover (Delaware) Police Department, and is being prosecuted by Assistant United States Attorney Michelle L. Morgan.
Owner and Chief Financial Officer of Healthcare Company Sentenced to Prison for Their Roles in Fraud SchemeRead the Press Release
BATON ROUGE, LA – BARBARA A. SADLER, age 63, of Zachary, Louisiana, and SEDRIC C. BLAKES, age 42, of Zachary, Louisiana, have been sentenced to federal prison arising out of their convictions in a multi-million dollar scheme to defraud the Louisiana Medicaid program through Extraordinary Care Network, Inc. (“Extraordinary”), an attendant care services company that SADLER and BLAKES owned and operated.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Walt Green of the Middle District of Louisiana, Special Agent in Charge CJ Porter of the Dallas Region of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG), Special Agent in Charge Jeff Sallet of the FBI’s New Orleans Division and Louisiana State Attorney General Jeff Landry made the announcement.
SADLER and BLAKES were previously charged by a federal grand jury, in a Superseding Indictment returned on June 25, 2015, with conspiring with others to commit healthcare fraud and wire fraud, in violation of Title 18, United States Code, Section 1349. The Superseding Indictment also included a forfeiture allegation requiring SADLER and BLAKES to forfeit the proceeds of their fraud if convicted. In connection with their guilty pleas previously entered before Chief U.S. District Judge Brian A. Jackson, both defendants admitted that they engaged in a multi-year scheme to defraud Medicaid, through the health care company that they owned and operated. SADLER admitted that she and others submitted fraudulent claims to Medicaid in which they falsely represented that Extraordinary Care had provided one-on-one attendant care services, when in fact such services had not been provided as represented. In furtherance of the scheme, SADLER admitted that she and her co-conspirators would fabricate progress notes, forge the signatures of unwitting company employees, and then use such documents as support for fraudulent claims to Medicaid for reimbursement. In her written plea agreement, SADLER admitted that the scheme caused a loss of more than $1 million. BLAKES also admitted that he, too, participated in the scheme and that he would fabricate progress notes and forge signatures of other employees in support of his and SADLER’s false claims.
At today’s sentencing, SADLER was sentenced to serve 44 months in federal prison, and BLAKES was sentenced to serve 36 months in prison. The defendants were ordered to make restitution in the amount of $1,200,000 to the Louisiana Department of Health and Hospitals. SADLER and BLAKES were each ordered to forfeit an additional $1,200,000 as the proceeds of their criminal activity. Finally, following their releases from prison, each defendant will be required to serve a 3-year term of supervised release.
U.S. Attorney Green stated: “Today’s sentences should serve as strong reminders of our strong commitment to combatting health care fraud in this district. Our office’s partnerships with the U.S. Department of Justice’s Criminal Fraud Section and the Louisiana Medicaid Fraud Control Unit continue to root out fraud and wrongdoing, and we will continue to aggressively pursue those who steal from the Medicare and Medicaid programs.”
FBI Special Agent in Charge Jeff Sallet said, “In close coordination with our state and federal partners, the New Orleans Division of the FBI will continue to work tirelessly in an effort to identify and pursue any individual or entity who would use fraud and deceit to steal taxpayer funds from the Medicare and Medicaid programs.”
Louisiana Attorney General Jeff Landry added, “It is unfortunate that there are people who defraud a program that was created to help those in need. I am proud of my Medicaid Fraud Control Unit for their assist on this investigation. My office is committed to protecting taxpayer money by prosecuting those who take advantage of the Medicaid system.”
This ongoing matter is being investigated by the Federal Bureau of Investigation (FBI) and the Medicaid Fraud Control Unit of the Louisiana State Attorney General’s Office (MFCU), and is being brought as part of the Medicare Fraud Strike Force, under the supervision of the United States Attorney’s Office and the Fraud Section of the Criminal Division of the U.S. Department of Justice. This case is being prosecuted by DOJ Trial Attorney Dustin M. Davis, current DOJ Trial Attorney and former Assistant U.S. Attorney Shubhra Shivpuri, and Assistant U.S. Attorney J. Brad Casey.
North Country Uncle, Nephew Indicted for False Statements Made in Firearms PurchaseRead the Press Release
PLATTSBURGH, NEW YORK – Donald J. Shappy, Jr., age 57, of Keeseville, NY, and Jonathon P. Shappy, age 27, of Schuyler Falls, NY, were arraigned today on an indictment alleging that Donald Shappy made false statements during the purchase of a firearm, and that Jonathon Shappy aided and abetted the statements.
The announcement was made by United States Attorney Richard S. Hartunian, Delano A. Reid, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New York Field Division, and New York State Police Superintendent Joseph A. D’Amico.
The Shappys were arrested yesterday. Donald Shappy was released pending a detention hearing on June 7, 2016, while Jonathon Shappy was detained pending his detention hearing on the same date.
The indictment alleges that on March 7, 2016, Donald Shappy falsely certified that he was the true purchaser of a Henry Repeating Arms .22 caliber rifle when he knew that he was purchasing the firearm for Jonathon, who had been denied the ability to purchase the same rifle two days earlier. Jonathan Shappy is charged with aiding and abetting the false statements.
The charges in the indictment are merely accusations. The defendants are presumed innocent until proven guilty.
If convicted, each defendant faces a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by the ATF and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Douglas Collyer.