Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
2 June 2016
Another Defendant Pleads Guilty in Methamphetamine ConspiracyRead the Press Release
ABINGDON, VIRGINIA – Another member of a methamphetamine conspiracy that trafficked large quantities of the drug from Atlanta, Georgia to Southwest Virginia, pled guilty today in the United States District for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr. announced.
Matthew Charles Blevins, 35, pled guilty today to one count of conspiring to possess with the intent to distribute methamphetamine.
“In recent years we have seen an increase in the amount of methamphetamine being brought into Southwest Virginia and is devastating our communities,” United States Attorney John P. Fishwick Jr. said today. “We will continue to work with our partners, not only in Virginia but throughout the country, to dismantle these large-scale trafficking organizations.”
According to evidence presented at previous hearings by Assistant United States Attorney Zachary T. Lee, Blevins was part of a methamphetamine conspiracy that trafficked and distributed multiple pounds of crystal methamphetamine between Atlanta, Georgia, Northeast Tennessee and Southwest Virginia.
To date, more than ten other individuals have pled guilty to conspiring to possess with the intent to distribute methamphetamine as part of the investigation.
The investigation of the case was conducted by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bristol, Virginia Police Department, the Bristol, Tennessee Police Department, the Abingdon Police Department and the Washington County Sheriff’s Office. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Additional Criminal Charges Brought Against Indicted Penn National Horse TrainerRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury brought additional criminal charges yesterday against a thoroughbred horse trainer already under indictment for wire fraud and criminal conspiracy.
According to United States Attorney Peter Smith, Murray L. Rojas, age 50, of Grantville, Pennsylvania was charged in a 21 count superseding indictment with additional charges relating to the dispensing of misbranded drugs and criminal conspiracy. Rojas was previously indicted in August 2015 on charges of wire fraud and criminal conspiracy for conduct related to 11 races in which she had horses entered at Penn National Race Course in early 2013. Two additional wire fraud charges were brought relating to two additional races bringing the total to 13 races.
In addition to the misbranded drug distribution charges, the indictment also expands the time frame for the wire fraud conspiracy to at least 2009 and identifies additional races in which Rojas allegedly had prohibited substances administered to the horses. The superseding indictment alleges that Rojas directed and conspired with unnamed and unindicted coconspirator veterinarian(s) to administer substances to horses on the day they were entered to race, in violation of the criminal laws of Pennsylvania and the racing rules and regulations prohibiting the administering of those substances.
The indictment also alleges that steps were taken to conceal this conduct by the backdating of invoices for the sale and administration of drugs to the horses on race day, as well as the submission of fraudulent veterinarian treatment reports to the Pennsylvania Horse Racing Commission.
The purse money for the races is funded by the interstate electronic transfer of funds and, therefore, the involvement of the transmission of these funds that are used to pay successful owners/trainers is essential to the alleged scheme to defraud. The superseding indictment now alleges that Rojas won a total of $124,756 from the races in which it is alleged she directed the administration of prohibited substances to her horses.
“As with human prescription drugs, veterinary prescription drugs may only be administered under the supervision of a licensed medical professional” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations’ Metro Washington Office. “The FDA works to ensure that prescription drugs used on our animals are safe and effective, and issued with a valid prescription. When that does not happen, we will take action.”
The case was investigated by the by the Federal Bureau of Investigation, the Pennsylvania Department of Agriculture’s Horse Racing Commission and the Federal Drug Administration, Office of Criminal Investigations. Prosecution is assigned to Assistant United States Attorney William A. Behe.
Indictments 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 on the wire fraud and conspiracy to commit wire fraud counts. The counts alleging the distribution of misbranded drugs and conspiracy to do so are each punishable by up to 3 years in prison. A term of supervised release following imprisonment and a fine are also part of the possible sentence. 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.
# # #
Additional Charges, Additional Defendants in Case of Robbers Who Disguised Themselves as PoliceRead the Press Release
PHILADELPHIA – A superseding indictment was unsealed today in a case involving a violent robbery conspiracy that included armed robbery, kidnapping, carjacking, and drug trafficking, announced United States Attorney Zane David Memeger and Special Agent-in-Charge Sam Rabadi with the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The superseding indictment adds four defendants and 13 charges, including two counts of kidnapping, armed robbery, and six more firearms counts.
The defendants allegedly conspired in a scheme to commit armed robberies dressed in disguises that included police uniforms, badges, bulletproof vests, masks, gloves, and wigs. The indictment alleges that the robbers also tracked targeted victims with GPS devices to rob them in their homes. Various defendants are charged in violent home invasion robberies or attempted robberies that included shooting one victim, water boarding and pouring boiling water on others, and, in one incident, assisting the scheme by playing the role of a robbery victim.
Added to the superseding indictment are: Sei Stone, 42, Edwin Robinson, 42, Louis Miller, 38, James Haines, 25, all of Philadelphia, PA. Also charged (in the original indictment) are: Khalil Smith, Mark Woods, Terrace Munden, Robert Hartley, Hasan Chaney, Levern Jackson, Braheim Ballard, William Jefferson, Romel Anthony, Brandon Segers, Michael Queen, Jeffrey Bellamy, Eric Scott, Daniel Hayes, Marcus Bowens, all of Philadelphia, PA, and Jamal Doggett, of Willingboro, NJ.
Among the charges added to the original indictment, on October 18 and 19, 2013, defendants Mark Woods, Terrance Munden, Hasan Chaney, Robert Hartley, and Louis Miller went to the 3000 block of Master Street to find the victim, a drug dealer that Woods had been following. When the victim tried to get in his car, the defendants, wearing police paraphernalia, identified themselves as officers, assaulted and restrained the victim, covered his head, and drove him from the area against his will and forced him to call a second victim so the defendants could gain access to that victim’s apartment. Once inside the home, the defendants held the second victim, his girlfriend, and a child at gunpoint while they demanded money and drugs. They stole cocaine, cash, and other items.
On March 19, 2014, the superseding indictment alleges that Khalil Smith, Mark Woods, Terrance Munden, Robert Hartley, Hasan Chaney, Levern Jackson, and others, planned a kidnapping for ransom. The defendants approached the victim, assaulted, restrained and kidnapped him. They forced him to strip, threatened and assaulted him, and poured boiling water on him while demanding to know where his drugs and drug money were. The defendants forced the victim to call a family member and instruct that person on where to get $50,000 in ransom money to pay for his release. After Khalil Smith retrieved the ransom money from the drop off point, the victim was released.
If convicted of all charges, each defendant is facing a statutory maximum sentence of life in prison with mandatory minimum terms of imprisonment.
The investigation was led by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the Philadelphia Police Department, the Hatfield Township Police Department, the Whitpain Township Police Department, and the Cherry Hill Police Deparment. It is being prosecuted by Assistant United States Attorneys Salvatore Astolfi and Jeanine Linehan.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
1 June 2016
Woonsocket Resident Pleads Guilty to Trafficking OxycodoneRead the Press Release
PROVIDENCE, R.I. – Jeffrey Pare, 29, of Woonsocket, pleaded guilty in federal court in Providence on Tuesday to trafficking Oxycodone. Pare pleaded guilty as charged in a federal indictment returned on August 19, 2015, to three counts of distribution of Oxycodone.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Pare admitted to the court that on three occasions, between July 17 and August 14, 2014, he sold Oxycodone tablets to an undercover Providence Police Department detective assigned to the Rhode Island DEA Drug Task Force. According to information presented to the court, on July 17, 2014, Pare sold the undercover law enforcement officer 69 Oxycodone tablets in exchange for $2,100 in cash; on July 25, 2014, Pare sold 200 tablets to the undercover officer for $5,800 in cash; and on August 14, 2014, Pare sold the undercover officer 491 Oxycodone tablets in exchange for $22,400 in cash. All of the transactions occurred in Woonsocket.
Pare’s guilty plea is announced by United States Attorney Peter F. Neronha, Michael J. Ferguson, Special Agent in Charge of the DEA in New England, Woonsocket Acting Police Chief Captain Michael R. Lemoine, and Providence Police Chief Hugh T. Clements, Jr.
Pare was charged by way of a federal criminal complaint and arrested by DEA Drug Task Force agents and Woonsocket Police on July 15, 2015. At his initial appearance in U.S. District Court on July 22, 2015, Pare was ordered released on $50,000 unsecured bond to home confinement with electronic monitoring.
Pare, who remains on home confinement, is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on August 18, 2016.
The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Washington Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
BOISE – Sergio Maldonado-Farias, 39, of Monroe, Washington, was sentenced today to 18 months in prison for possession with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. Maldonado-Farias, a Mexican national, is likely to be deported to Mexico at the end of his prison term. Maldonado-Farias pleaded guilty on March 22, 2016.
According to the plea agreement, Maldonado-Farias had stopped his vehicle on the shoulder of I-84 near Jerome, Idaho. An Idaho State Police trooper arrived to assist Maldonado-Farias and subsequently asked for consent to search his vehicle. Maldonado-Farias granted consent and the officer located two bricks containing methamphetamine. Maldonado-Farias admitted that he was transporting methamphetamine to distribute to another individual.
The case was investigated by the Drug Enforcement Administration and the Idaho State Police.
WDTX Prosecutors Honored by DOJ at Executive Office for United States Attorneys Director’s Awards CeremonyRead the Press Release
WASHINGTON – Western District of Texas Assistant United States Attorneys Gregg N. Sofer, Rifian S. Newaz and Robert Almonte, II were 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 today in Washington D.C.
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.
Gregg N. Sofer was recognized for his exceptional contributions to Operation Temple Granite, which focused on members of a homegrown violent extremist group in Austin, Texas that was radicalizing others in addition to providing material support to terrorism. Over a two-year period, Mr. Sofer supervised the use of numerous advanced surveillance techniques and undercover operations to ferret out the defendants’ material support of terrorism. Mr. Sofer’s work led to the conviction of Michael Todd Wolfe and Rahatul Ashikim Khan for conspiring to provide material support to a foreign terrorist organization.
Rifian S. Newaz and Robert Almonte, II were recognized for the human trafficking prosecution of members of the Folk Nation Gang in United States v. Deion Lockhart, et al. The prosecution stemmed from a one-year Anti-Trafficking Coordination Team investigation into sex trafficking by members of the gang. Vulnerable victims, including at-risk youth and adult addicts, were recruited to engage in commercial sex acts. Gang members forced the victims to continue by inflicting brutal violence on them. One defendant was employed as a Juvenile Probation Officer when he recruited a child probationer to engage in commercial sex acts for him and the group. Six defendants were convicted on various human trafficking and sexual exploitation charges, and sentences of up to life imprisonment were imposed after a difficult and lengthy trial.
“These lawyers exemplify the excellence that has long characterized the Assistant United States Attorneys that work in the Western District of Texas. All three of these lawyers put in long hours of hard work in the interest of protecting the citizens in this District. I am proud to call them colleagues and am grateful the Department of Justice has recognized their outstanding work,” stated United States Attorney Richard L. Durbin, Jr.
The Western District of Texas 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. Sofer, Newaz and Almonte were among the total 160 award recipients.
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.
Virginia Man Pleads Guilty to Federal Drug ChargeRead the Press Release
CHARLOTTESVILLE, VIRGINIA – A Virginia man, who conspired with at least one other person to distribute methamphetamine, pled guilty today to a federal drug conspiracy charge, United States Attorney John P. Fishwick Jr. announced.
David Valencia, 27, of North Garden, Virginia, pled guilty this morning in the United States District Court for the Western District of Virginia in Charlottesville to one count of conspiring to distribute and possess with the intent to distribute methamphetamine. Valencia’s co-defendant, Ramon Gabriel Jr., pled guilty last month to similar conspiracy charge.
“Methamphetamine trafficking continues to be a growing threat throughout the Western District of Virginia,” United States Attorney John P. Fishwick Jr. said today. “We will continue to work with our partners on the local, state and federal levels to slow the influx of this deadly and addictive substance into our communities.”
At sentencing, Valencia faces a maximum statutory penalty of 20 years in prison and/or a fine of up to $1 million dollars. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors.
The investigation of the case was conducted by the Drug Enforcement Administration, the Jefferson Area Drug Enforcement Task Force and the Federal Bureau of Investigation. Assistant United States Attorney Ronald M. Huber prosecuted the case for the United States.
Victim Witness Coordinator Honored by Department of Justice at Executive Office for United States Attorneys Director's Awards CeremonyRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Washington – Clarissa Whaley, Victim Witness Coordinator of the U.S. Attorney’s Office in the District of South Carolina was one 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 today in Washington D.C.
The District of South Carolina 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.
Mrs. Whaley has served as the Victim Witness Coordinator for the Florence and Charleston branches of the U.S. Attorney’s Office since 2008. A consummate professional, she is dedicated and creative. Mrs. Whaley relentlessly pursues justice and ensures that victims get the very best in services, as well as prompt and reliable information about their cases.
United States Attorney William N. Nettles stated that Mrs. Whaley’s knowledge, empathy, grace and grit make her an outstanding victim’s advocate, and that she is most deserving of this prestigious recognition.
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.
#####
Veteran Assistant U.S. Attorney in Utah Honored by Department of Justice at Awards CeremonyRead the Press Release
WASHINGTON – Stewart C. Walz, who has been an Assistant U.S. Attorney in Utah since 1980, was honored for Superior Performance as an Assistant U.S Attorney at a Department of Justice ceremony Wednesday morning in Washington, D.C. Walz, a criminal attorney, was one of 160 nationwide 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 held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
Walz was recognized for his lifetime of distinguished service as an Assistant United States Attorney. Walz began his professional career in 1976 as an Attorney for Chief Counsel for the IRS. Most of his 35-year career in the U.S. Attorney’s Office has been spent prosecuting white collar crime cases involving investment, securities, and tax fraud. He currently serves as Senior Litigation Counsel in the office.
“Assistant U.S. Attorney Walz has made significant contributions to the integrity and effectiveness of the United States Attorney’s office through his successful prosecution of complex white collar cases and his exemplary service as a leader in the District of Utah. He has distinguished himself as a highly-skilled and well-respected prosecutor and leader who has served as an influential role model and mentor for lawyers throughout the country,” U.S. Attorney John W. Huber said today.
Walz teaches extensively around the country for the Department of Justice on trial advocacy, grand jury practice, evidence, and white collar crimes.
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.
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.
Uniontown Man Sentenced to 25+ Years in Prison for Producing Child PornographyRead the Press Release
PITTSBURGH - A former resident of Fayette County, Pennsylvania, was sentenced in federal court to 310 months imprisonment, followed by a lifetime supervised release, on charges of production and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill imposed the sentence on David Kinteay Carson, age 39, of Uniontown, Pennsylvania. During the sentencing, Judge Cohill remarked “having served as judge here for some years, the facts are amongst the most horrific before me.”
According to information presented to the court, the court was advised that on or about Sept. 26, 2014, Carson produced visual depictions of his sexual exploitation of two minors.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Uniontown City Police Department for conducting the investigation leading to the successful prosecution of Carson.
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.justice.gov/psc.
U.S. Customs and Border Protection Officers Arrest St. Thomas Man for Possession of a FirearmRead the Press Release
St. Thomas, USVI – Eugene Monsanto, Jr., 40, made his initial appearance yesterday before U.S. Magistrate Judge Ruth Miller after being charged in a complaint with being a felon in possession of a firearm, United States Attorney Ronald W. Sharpe announced. Monsanto was remanded to the custody of the United States Marshals Service after preliminary and detention hearings today pending further proceedings.
According to the complaint, on Monday, May 30, 2016, Monsanto, who was aboard the M/V Sundance Queen, presented himself for inspection at the U.S. Customs and Border Protection’s (CBP) St. John Port of Entry. A CBP officer conducted a routine inspection and found a fully loaded .38 caliber Smith and Wesson revolver inside of Monsanto’s carry-on.
Under federal law if convicted of being a felon in possession of a firearm, Monsanto faces a maximum of 10 years in prison and a $250,000 fine. This case is being investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Kim L. Chisholm.
United States Attorney Sharpe reminds the public that a complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
U.S. Citizen Residing in Mexico Sentenced for Mailing Threatening Communications Containing a White Powdery SubstanceRead the Press Release
John Milton Nagel, 47, was sentenced by United States District Judge Jose E. Martinez to one year and one day in prison, to be followed by three years of supervised release, after having previously pled guilty to three counts of mailing threatening communications from a foreign country, in violation of Title 18, United States Code, Section 877.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
According to court documents, between September 1, 2015 and September 18, 2015, John Nagel entered the Mexico City main post office located at Palacio Postal, Avenida Tacuba No. 1, Centro Historico, Delegacion Cuachtemoc, 06002 Mexico City, Mexico, and knowingly deposited for mailing thirty-seven (37) envelopes all addressed to prominent U.S. political figures and business leaders, each containing a threatening letter and a white powdery like substance. A sample of the powder removed from within the suspect letters was thereafter sent to both Mexican and U.S. laboratories for analysis, which ultimately revealed that the contents were bicarbonate. Nagel was identified and apprehended in Mexico by Mexican Postal employees and ultimately deported to the United States to stand trial.
The first page of each letter read “FREE SAMPLE OF EXECUTIVE TOOTH POWDER - ACTIVATES WITH HYDROGEN PEROXIDE. DO NOT SWALLOW! H2O2 MAY BE POISONOUS IF SWALLOWED DON’T PANIC, EVACUATE OR CALL 911…or there will be consequences...Mathew 13:49.” According to the King James version of the Bible, Matthew 13:49 states: “So shall it be at the end of the world: the angels shall come forth, and sever the wicked from among the just.”
Mr. Ferrer commended the investigative efforts of the FBI. The case was prosecuted by Assistant U.S. Attorneys Marc S. Anton and Ricardo A. Del Toro.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
U.K. Citizen Admits Role in Oversses Investment ScamRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Martin Rhys-Jones, 52, a citizen of the United Kingdom, who was extradited from Spain, pleaded guilty to laundering money derived in a wire fraud conspiracy before U.S. District Judge Elizabeth A. Wolford. The charges carry a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Russell T. Ippilito, who along with retired Assistant U.S. Attorney John E. Rogowski, handled the case, stated that Jones oversaw a “boiler room” scam in Barcelona, Spain, which conned investors in the United Kingdom and Canada into buying nearly worthless shares of restricted stock at severely inflated prices. Customers were told they were buying more valuable, regular shares of stock.
Approximately 250 investors lost more than $2,900,000 in the scam. A portion of the criminal proceeds were funneled through a bank account in Western New York before being sent to numerous overseas accounts controlled by Jones and his co-conspirator, Arnold Wrobel, a former resident of Buffalo. Wrobel was convicted in December 2015 and is awaiting sentencing.
A total of 12 defendants were arrested in the case, four have been convicted.
The plea is the result of an investigation on the part of Department of Homeland Security, Homeland Security Investigations, under the direction of James S. Spero, Special Agent in Charge of the Buffalo Office, and the Internal Revenue Service, Criminal Investigations Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge.
Sentencing is scheduled for August 24, 2016 before Judge Wolford.
Two LRGP Members Plead Guilty to Rico ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Timothy Finch, 27, and John Hayward, also known as “Frizz,”33, both of Buffalo, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to RICO conspiracy. In addition, Hayward also pleaded guilty to conspiracy to possess with intent to distribute and distribute 280 grams or more of crack cocaine. Finch faces up to 20 years in prison and a $250,000 fine. Hayward faces a mandatory minimum penalty of 10 years in prison, a maximum of life and a $10,000,000 fine.Assistant U.S. Attorneys Thomas S. Duszkiewicz and Joel L. Violanti, who are handling the case, stated that between 2009 and January 23, 2012, Finch and Hayward were members of the LRGP gang which operates primarily in the area of Lombard, Rother, Gibson and Playter Streets in the City of Buffalo. It is alleged to be an organization engaged in violent criminal activity, including the distribution of cocaine and crack cocaine and the use of firearms.
In April 2011, the defendants and others, while at 318 Sobieski Street in Buffalo, agreed that a member of the Cold Springs Gang, a rival criminal organization, should be murdered in retaliation for the killing Alonzo Scott, in March 2011. Scott was the brother of LRGP leader Dewayne Gray. The individuals settled upon killing Amir Chambers, whom they believed to be associated with the Cold Springs Gang, and who had an ongoing social relationship with Alexis Mills.
After a failed attempt by Mills to poison Amir Chambers, it was agreed that Chambers would be killed by shooting him. Mills was to use her relationship with Chambers to get the victim to open his residence door. On April 20, 2011, Finch and others went to a residence at 111 Mills Street in Buffalo where they dropped off co-defendants Fred Keys and Alexis Mills. Chambers opened the residence door upon seeing Alexis Mills at which time Keys allegedly killed Chambers by shooting him in the head. Mills, for her part, kicked the victim in the head following the shooting to ensure that Chambers was in fact deceased.
John Hayward was convicted of distributing crack cocaine in the Buffalo area.
Alexis Mills was convicted previously and is awaiting sentencing. Fred Keys is scheduled to go to trial on June 14, 2016 along with do-defendant Philip Brown. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The pleas are the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen, the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Office and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Timothy Finch will be sentenced on September 15, 2016 at 1:00 p.m.; John Hayward will be sentenced on September 19, 2016 at 12:30 p.m., both before Judge Arcara.
Two Doctors from Mexican Clinic Plead Guilty in Scheme to Commit Wire FraudRead the Press Release
McALLEN, Texas ‐ Two physicians from a family medicine clinic in Mexico have been convicted of conspiracy to commit wire fraud for their role in a scheme to submit false and fraudulent insurance claims, announced U.S. Attorney Kenneth Magidson.
Dr. Mayolo Melchor, 59, and Dr. Bertha Hernandez-Melchor, 61, both of Reynosa, Tamaulipas, Mexico, pleaded guilty to conspiring with policyholders of the American Family Life Assurance Company (AFLAC) to fax fraudulent claim forms and accident reports to AFLAC for accidents and injuries that never occurred. Both plea agreements were entered today before U.S. District Judge Micaela Alvarez.
The defendants admitted AFLAC policyholders paid them to prepare and sign fictitious reports for accidents and injuries that never occurred. AFLAC policyholders filled out the fictitious claim forms in the McAllen area and delivered them to the defendants’ family medicine clinic in Mexico where Melchor and Hernandez-Melchor prepared and signed corresponding accident reports for each fake accident and injury. The policyholders then faxed the fictitious claim and accident forms to AFLAC headquarters in Columbus, Georgia.
The defendants admitted the fraudulent claim forms and accident reports that were faxed to AFLAC from September 2001 to August 2010 resulted in the disbursement of approximately $2,585,219.50 in fraudulent benefit checks to the policyholders.
Judge Alvarez has set sentencing for Aug. 18 at 2:00 p.m., at which time both defendants face up to 20 years in federal prison and a possible $250,000 fine. They will remain in custody pending that hearing.
The FBI investigated. Assistant U.S. Attorneys Michael Day and Tina Ansari are prosecuting the case.
Town Hall Discusses Heroin Epidemic and Treatment OptionsRead the Press Release
CEDAR RAPIDS, IA – Last night the downtown Cedar Rapids Main Library hosted a follow-on Town Hall to discuss treatment options available to tackle the opioid and heroin epidemic facing the greater Cedar Rapids community.
To help raise awareness and to educate young people on the dangers of addiction, the FBI and DEA released the documentary Chasing the Dragon: The Life of an Opiate Addict, a compilation of heart-wrenching first-person accounts by addicts and family members of addicts about their experiences. This 49 minute film was shown. A Q&A session followed with a discussion of drug treatment options from four service providers that are available in Linn County.
The Eastern Iowa Heroin Initiative launched C.R.U.S.H. (Community Resources United to Stop Heroin), which is a community outreach initiative designed to involve schools, law enforcement, treatment providers, community leaders and health care organizations to address the growing epidemic. This community response was recently initiated in Dubuque and Clinton counties. Attendees were encouraged to join and told they could do so by texting “Heroin” to 51555.
United States Attorney Kevin W. Techau described the forum as a necessary step to address the heroin and opioid threat facing the community. He stated, “The three-prong approach includes not only engaging treatment but includes prevention and prosecution, when necessary.”
To learn more about the Eastern Iowa Heroin Initiative, visit Facebook at www.facebook.com/EasternIowaHeroinInitiative.
Follow us on Twitter @USAO_NDIA.
Topeka Real Estate Developer Indicted on Bankruptcy Fraud ChargesRead the Press Release
TOPEKA, KAN. - Topeka real estate developer Kent E. Lindemuth was indicted Wednesday on federal bankruptcy fraud charges, Acting U.S. Attorney Tom Beall said.
A federal grand jury returned an indictment charging Lindemuth, 64, Topeka, Kan., with 103 counts of bankruptcy fraud. In November 2012 Lindemuth filed for Chapter 11 bankruptcy protection, reporting to the court he had more than $3.5 million in debt. Under federal law, any property acquired after the date of the bankruptcy filing belongs to the bankruptcy estate, which includes assets that may be used to reimburse creditors and pay off or reduce the debt.
The indictment alleges that from August 2013 to December 2014 Lindemuth purchased more than 100 firearms valued at more than $80,000. The indictment alleges he did not disclose to his creditors or the bankruptcy trustee either the firearms or the money used to purchase the firearms. The indictment contains a list of firearms, charging Lindemuth with one count of bankruptcy fraud for each firearm. The indictment seeks a money judgment of $80,000 against Lindemuth in addition to a criminal penalty.
If convicted, Lindemuth faces a penalty of up to five years and a fine up to $250,000 on each count. The FBI investigated. Assistant U.S. Attorney Tony Mattivi is prosecuting.
OTHER GRAND JURY INDICTMENTS
John McNett, 50, Yates Center, Kan., is charged with one count of assaulting two U.S. Department of Veterans Affairs police officers. The crime is alleged to have occurred Jan. 29, 2016, in Topeka, Kan.
If convicted, he faces a penalty of up to eight years in federal prison and a fine up to $250,000. The Veterans Administration – Office of the Inspector General investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Three Maryland U.S. Attorney’s Office Employees Honored by Department of Justice at Executive Office for United States Attorneys Director’s Awards CeremonyRead the Press Release
Baltimore, Maryland – Assistant U.S. Attorneys Michael C. Hanlon and William D. Moomau, and Law Enforcement Coordinator Steven J. Hess of the U.S. Attorney’s Office in the District of Maryland, were three 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 today in Washington D.C.
The District of Maryland 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.
Hanlon, Moomau and Hess were recognized for superior performance in prevention and reentry activities for their Project Safe Neighborhoods program which includes a personalized deterrence message to repeat offenders, while offering them assistance and community reintegration services. Hanlon, Moomau and Hess organize and conduct meetings for ex-offenders, known as call-ins, in Baltimore, Prince George’s County, and other areas throughout the state, in cooperation with federal agencies, local police, prosecutors, state parole and probation officers, community groups and non-governmental organizations. The awardees research the participants’ criminal histories to develop individual risk assessments, which are shared with the participants during the meeting, while also making the participants aware of services that are available to assist them. Since 2009, Hanlon, Moomau and Hess have conducted approximately 46 call-ins across the state, reaching an estimated 700 violent repeat offenders.
"The call-in programs are an effective way to communicate a deterrent message directly to the persons most likely to reoffend,” said U.S. Attorney Rod J. Rosenstein. “We warn them about the consequences of getting caught with a gun or drugs, and we offer opportunities for them to pursue legitimate employment.”
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.
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
The Leader in the Largest Methamphetamine Distribution Organization in Okeechobee County History Sentenced to 25 Years in PrisonRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office, Paul C. May, Sheriff, Okeechobee County Sheriff’s Office (OSO), and John J. Burke, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), Fort Myers Regional Operation Center-Sebring Field Office, announce the sentencing of Steven Lee Oakes, a/k/a “Wildman,” 59, of Davenport, the leader in a methamphetamine distribution network involving fifteen co-conspirators that operated in and around Okeechobee and Highlands Counties. Each of the fifteen defendants pled guilty to various narcotics trafficking offenses, in the matter of United States v. Steven Lee Oakes, et al., 15-CR-14046.
United States District Judge Jose E. Martinez sentenced Oakes to 300 months in prison, to be followed by five years of supervised release. Oakes was the last of the defendants to be sentenced, as part of a coordinated law enforcement effort to combat the methamphetamine epidemic. The co-conspirators were previously sentenced to the following terms of imprisonment:
-
Steven Lee Oakes300 months
-
Jetta Lyn Frake 70 months
-
Lacy Junior Locklear188 months
-
Stephen Patrick Hall, Jr.190 months
-
Daniel John Alsdorf96 months
-
James “Buddy” Carter87 months
-
Teresa Lee Green90 months
-
Tanner Lynn Carter48 months
-
Felisha Michelle Leitner70 months
-
David Allen Sparks60 months
-
Jamie Lea Hewitt121 months
-
Jessica Marie Bell65 months
-
Vickie Lynn Johnson90 months
-
Travis Wayne Carr70 months
-
Timothy Dale Reid70 months
United States Attorney Wifredo A. Ferrer stated, “Steven Lee Oakes and his organization poisoned our communities with illicit drugs. Mr. Oakes was held accountable in a court of law for infecting our local neighborhoods with his narcotics trafficking enterprise. However, the prosecution of Oakes and his conspirators has not put an end to this problem. The unlawful distribution of methamphetamines continues to pose a risk to our communities at alarming rates. The U.S. Attorney’s Office and our federal, state and local law enforcement partners are committed to identifying for prosecution those who place the public’s safety and quality-of-life in jeopardy.”
DEA Special Agent in Charge A.D. Wright stated, “These convicted drug traffickers rightfully deserved the sentences they received. Justice was served for the residents of Okeechobee County. Methamphetamine is a poison. Those who were selling this poison in their neighborhoods can no longer continue to do so. The DEA is proud to work with our law enforcement partners in achieving such outstanding results. Our partnership is a strong and unstoppable force to be reckoned with.”
Sheriff Paul C. May, Okeechobee County, stated, “The defendants brought large amounts of methamphetamines into Okeechobee County and surrounding areas. With the help of our federal, state and local law enforcement partners, the defendants were brought to justice and a dent was placed in the illegal trafficking of methamphetamines, in and around our county. We will continue to work with our allies to identify for prosecution those who bring illicit narcotics into our communities.”
FDLE Special Agent in Charge John J. Burke stated “FDLE remains committed to combatting the problem of illicit narcotics throughout our state. We welcome the opportunity to partner with federal and local agencies to ensure that those who seek to poison our population to feed their own greed find no safe haven in Florida. This operation is a credit to the agencies who investigated as well as the prosecutors who guided the case to this successful conclusion.”
The federal indictment was prosecuted by Assistant U.S. Attorney Courtney L. Coker and Special Assistant United States Attorney Ryan L. Butler.
This case was the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Mr. Ferrer commended the collaborative efforts of the U.S. Attorney’s Office for the Middle District of Florida and the Okeechobee County Office of the State Attorney. Mr. Ferrer thanked the OCDETF law enforcement agencies that assisted with this multi-faceted investigation, including the DEA, Okeechobee County Sheriff’s Office Narcotics Task Force, FDLE’s Fort Myers Regional Operations Center Sebring Field Office, Highlands County Sheriff’s Office, the Okeechobee Police Department, Glades County Sheriff’s Office, Saint Lucie County Sheriff’s Office, Fort Pierce Police Department, the Fort Pierce Offices of the United States Marshals Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HIS), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Port Saint Lucie Police Department, Martin County Sheriff’s Office, United States Border Patrol, and Indian River County Sheriff’s Office
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
-
State Prison Inmate Sentenced to 21 Months in Federal Prison for Mailing Threatening Letter to the PresidentRead the Press Release
PITTSBURGH – An inmate of SCI Somerset, in Somerset, Pennsylvania, pleaded guilty and was sentenced in federal court on a charge of making threats against the President, United States Attorney David J. Hickton announced today.
Julio Segura, Jr., 22, pleaded guilty to one count and was sentenced to 21 months of imprisonment by United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that while housed at SCI Somerset, Segura mailed a letter to the White House threatening President Obama.
Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation that led to the prosecution of Julio Segura, Jr.
South Carolina Club Owners Sentenced to More Than Three Years in Prison for Money Laundering and Drug ConspiracyRead the Press Release
SAN FRANCISCO – South Carolina businessmen Vladimir Handl and Michael Rose each were sentenced to more than three years in prison for their respective roles in a racketeering, money-laundering, and drug trafficking scheme, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. Pursuant to the sentences handed down yesterday by United States District Judge William Alsup, Handl was sentenced to 44 months in prison, and Rose was sentenced to 40 months in prison.
Handl, 38, and Rose, 45, both operated clubs and restaurants in Myrtle Beach, South Carolina at the time of their involvement in the charged scheme. Handl owned and operated a night club called Heat Lounge in Myrtle Beach, and Rose operated several strip clubs in South Carolina, Delaware, and New Hampshire under the name “The Gold Club.”
Handl and Rose are two of the eleven defendants charged in a superseding indictment filed on March 24, 2015, for their alleged participation in a conspiracy to conduct a criminal enterprise through a pattern of racketeering. According to the indictment, between 2011 and 2015, the defendants knowingly accepted more than $2.3 million that they believed either had been fraudulently diverted from a bankruptcy court proceeding or were the proceeds of drug trafficking. After they each received cash from undercover FBI agents, the defendants laundered the money through fake business entities. As part of the scheme, the defendants created fraudulent invoices, contracts, and other business records to make it appear that the cash they received and then returned as “cleaned” funds was for legitimate business transactions. During the scheme, Handl also sought to purchase kilograms of cocaine, and Rose agreed to assist with the drug transaction. Handl and Rose, among others, where charged with racketeering conspiracy, in violation of 18 U.S.C. § 1962(d). Handl and Rose also were charged with substantive racketeering, in violation of 18 U.S.C. § 1962(c), and conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h). In addition, Handl was charged with 118 counts of money laundering, in violation of 18 U.S.C. § 1956(a)(3); and conspiring to distribute cocaine, in violation of 21 U.S.C. § 846. Rose was charged with 105 counts of substantive money laundering and conspiring to distribute cocaine. Rose pleaded guilty to all the charges. Handl was found guilty after a bench trial before Judge Alsup in which Handl acknowledged he would not contest any of the facts alleged in the superseding indictment.
In addition to the prison terms, Judge Alsup also imposed a term of three years of supervised release on each defendant. Rose also was ordered to pay a fine of $15,000. Both defendants remain free on bond. The defendants have been ordered to surrender and begin serving their sentence no later than August 1, 2016, for Handl and August 2, 2016, for Rose.
Assistant United States Attorneys Lloyd Farnham and Andrew Dawson are prosecuting the case with the assistance of Michelle Alter, Yanira Osorio, and Marina Ponomarchuk. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
San Diego’s Harper Construction Pays $5.4 Million to Resolve Allegations of Defrauding the United StatesRead the Press Release
Assistant U.S. Attorney Dylan M. Aste (619) 546-7621
NEWS RELEASE SUMMARY – June 1, 2016
SAN DIEGO – Harper Construction Company, Inc. has paid $5.4 million to the United States to resolve allegations that it fraudulently billed the government for work on multiple projects on military bases. It was alleged that Harper knowingly used sham small disadvantaged businesses and then falsely certified to the government that it used legitimate small disadvantaged businesses.
Harper is a large, privately-held general contractor headquartered in San Diego. Harper earns a substantial portion of its revenue through government contracting on construction projects across the country.
The settlement involves four government contracts to construct facilities at Camp Pendleton and Camp Lejeune. The contracts required Harper to subcontract a certain percentage of work to small disadvantaged businesses. Such requirements arise from measures intended to ensure that a fair proportion of federal contract and subcontract dollars are awarded to small businesses. It was alleged that Harper claimed it met this requirement when, in fact, it subcontracted with sham small disadvantaged businesses. Also, Harper allegedly required the sham small businesses to pass through all of their work to an affiliated large business, Frazier Masonry Corporation.
This settlement resolves a False Claims Act lawsuit filed by Rickey Howard, a former employee of Harper subcontractor Frazier Masonry Corporation. The whistleblower, or qui tam, provisions of the False Claims Act permit the whistleblower (or relator) to recover a portion of the proceeds obtained by the government. As part of today’s resolution, Mr. Howard will receive $1,485,000.
“This type of fraud siphons taxpayer dollars and takes away opportunities for legitimate small businesses for which this money was set aside,” said U.S. Attorney Duffy. “Whistleblowers are essential in our efforts to recover taxpayer dollars and combat fraud. We commend the whistleblower for coming forward and making the United States aware of this alleged fraud, and we welcome others who are aware of fraudulent conduct to also blow the whistle on fraudsters.”
“DCIS and its investigative partners work diligently to expose corrupt contractors that manipulate or circumvent Federal contracting requirements,” stated Special Agent in Charge John F. Khin, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “DCIS’ earlier investigation of the subcontractors involved in this matter resulted in both criminal and civil actions. We applaud efforts by concerned citizens and relators to assist our investigative efforts, and help the Government hold companies accountable for undermining the integrity of our contracting system.”
This case is captioned United States ex rel. Howard v. Harper Constr. Co. Inc., et al., Case No. 3:15-CV-02910-H (KSC) (S.D. Cal.). In conjunction with an earlier settlement with co-defendants FMC; F-Y, Inc.; CTI Concrete & Masonry, Inc.; Masonry Technology, Inc.; Masonry Works, Inc.; Russell Frazier; and Robert Yowell (United States ex rel. Howard v. Harper Constr. Co. Inc., et al., Case No. 7:12-CV-215-D (E.D.N.C.)), the United States has recovered over $7,000,000 in this matter.
This matter was handled by Assistant U.S. Attorney Dylan M. Aste of the Affirmative Civil Enforcement Unit of the U.S. Attorney’s Office for the Southern District of California, along with the Commercial Litigation Branch, Fraud Section, Department of Justice and the Defense Criminal Investigative Service.
SDTX Employees Honored by Department of Justice at Executive Office for U.S. Attorneys Director’s Awards CeremonyRead the Press Release
WASHINGTON – Six current and one former employee of the U.S. Attorney’s Office for the Southern District of Texas (SDTX) were some of the 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 today in Washington D.C.
The SDTX 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, 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 Wilkinson.
“These awards demonstrate the significance of the matters we handle every day,” said U.S. Attorney Magidson. “The Assistant U.S. Attorneys (AUSAs) recognized today worked on complex and noteworthy cases, conducting themselves in a truly remarkable fashion that brought national honor to the work we do. They are a great credit to this district and to our community.”
Three employees received commendations for superior performance as a criminal Assistant U.S. Attorney (AUSA).
AUSA James H. Sturgis was recognized for the prosecution of members of the Panama Unit, an elite counter-drug task force in Hidalgo County. Instead of capturing drug dealers, the Panama Unit’s law enforcement officers stole from those dealers and selling the drugs for a profit. Sturgis ultimately obtained indictments against more than a dozen people, including the Hidalgo County Sheriff, his top commander and several deputies, local police officers, the local CrimeStoppers coordinator and others on drug, money laundering and conspiracy charges. The corrupt officers pleaded guilty and were sentenced to a combined total of 114 years in prison. Thanks to Sturgis’ diligence, the citizens of Hidalgo County and South Texas are reassured that no law enforcement officer is above the law, and that those who violate the laws, especially those in positions of public trust, will be prosecuted and punished.
AUSAs Martha A. Minnis and Katherine L. Haden were recognized for their successful criminal prosecution of a family-run fraud business. The Jariv family operated a telemarketing timeshare scheme out of Las Vegas, Chicago, Los Angeles and Houston. Using nearly a dozen company names, the Jariv family and their employees targeted nearly 1,000 timeshare owners, many retired and elderly, in a $13 million advance fee fraud which lasted from 2007 until 2012. The prosecution resulted in the conviction of seven defendants and the immediate restitution of $2.25 million for the victims.
Also honored today was AUSA Andrew A. Bobb for superior performance as a civil AUSA.
Bobb reached remarkable civil fraud settlements in eight separate matters, recovering nearly $115 million that had been defrauded from the nation’s taxpayers. Assembling and leading teams of investigators from various federal agencies, Bobb overcame determined opposition from physicians, hospitals, diagnostic testing facilities and corporations, and achieved unparalleled positive results in the fight against fraud. Through his outstanding professionalism, acumen and diligence, he achieved the largest short-stay settlement - $98.15 million - against a single health care provider in our nation’s history, as well as the largest settlement - $4.3 million - against a solo physician in the history of the SDTX. Bobb’s accomplishments are truly exceptional, distinguish him among his peers and reflect great credit upon himself and the Department of Justice.
Three others – AUSAs Renata A. Gowie and Lauretta D. Bahry and former AUSA Jason S. Varnado – were recognized for superior performance as appellate AUSAs.
They were honored for their outstanding efforts in United States v. Kuhrt, an appeal of a complex international investment fraud scheme perpetrated by Stanford Financial Group. Corporate officers Mark Kuhrt and Gilbert Lopez Jr. helped Robert Allen Stanford commit one of the largest investment fraud schemes in U.S. history. The scheme involved a certificate of deposit program at Antigua-based Stanford International Bank, Limited. The investment fraud occurred over decades and involved tens of thousands of victims from many countries and multi-billion dollar losses. The Fifth Circuit affirmed the wire fraud convictions and 20-year prison sentences for Kuhrt and Lopez in a published opinion.
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.
R.I. Resident Admits to Manufacture, Detonation of a Pipe BombRead the Press Release
PROVIDENCE, R.I. – Vincent A. Fasano, 26, of Cranston, pleaded guilty in U.S. District Court in Providence today to manufacturing an explosive device, admitting to the court that in October 2015, he manufactured and detonated a pipe bomb which he had placed inside a refrigerator and left in a gravel pit in West Greenwich. The explosion destroyed the appliance.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Fasano admitted to the court that on October 18, 2015, using items he purchased at a home improvement store in Warwick, including a steel pipe, end caps for the pipe, gun powder, and a cannon fuse, he assembled an explosive device with the intent to detonate it and cause damage.
Fasano’s guilty plea is announced by United States Attorney Peter F. Neronha, Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police, West Greenwich Police Chief Richard Ramsay, and Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of ATF.
According to court records, an investigation by West Greenwich Police, the State Fire Marhsal’s Office and agents from ATF led investigators to a home improvement store in Warwick. A check for purchases of items used to build a pipe bomb, as well as scrutiny of store video surveillance, led investigators, with the assistance of the retailer, to determine that Fasano purchased some of those items at the Warwick store. Fasano is seen on story security video making the purchase.
According to court records, during an interview with investigators on November 10, 2015, Fasano admitted that on October 18, 2015, he manufactured and transported an explosive device, along with a refrigerator, to a remote area of West Greenwich. He admitted that he ignited the explosive device inside the refrigerator and drove away. Fasano told investigators that as he drove away he heard, but did not see the explosion.
According to court records, Fasano also admitted to investigators that he previously built and detonated pipe bombs, causing significant damage to mailboxes, a portable latrine outside a pizza shop, and to a toilet.
Fasano, who has been free on unsecured bond since his arrest on November 17, 2015, is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on August 23, 2016.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.
###
Providence Man Pleads Guilty to Trafficking Heroin and FentanylRead the Press Release
PROVIDENCE, R.I. – Wilson Garcia, 33, of, Providence, pleaded guilty in federal court in Providence today to trafficking heroin and fentanyl. Garcia admitted to the court that on multiple occasions he sold heroin and fentanyl in Rhode Island while on bail and awaiting trial in Massachusetts for allegedly trafficking heroin.
Wilson, appearing before U.S. District Court Judge John J. McConnell, Jr., pleaded guilty as charged in a federal indictment returned on February 16, 2016, to five counts of distribution heroin, one count of distribution of fentanyl, and one count of distribution of heroin aiding and abetting.
Garcia’s guilty plea is announced by United States Attorney Peter F. Neronha and Michael J. Ferguson, Special Agent in Charge of DEA in New England.
According to information presented to the court, on April 9, 2014, Wilson Garcia was arrested on a heroin trafficking charge brought in Wrentham District Court for the Commonwealth of Massachusetts as a result of an investigation conducted by the Norfolk County Police Anti-Crime Task Force. When it was determined that Garcia was continuing to sell heroin while on bail and awaiting trial in Massachusetts, a subsequent investigation was launched by the DEA Task Force 1 in Boston.
During the course of the subsequent investigation, between December 2014 and September 2015, an undercover DEA Task Force agent arranged for the purchase of heroin from Garcia on at least six occasions and the purchase of fentanyl on at least one occasion. Six of the deliveries were made to the agent by Garcia at Twin River Casino in Lincoln. One delivery was made to the agent at Garcia’s Providence residence. The transactions resulted in the purchase from Garcia of a total of 20.7 grams of heroin for $2,200 in cash and 2.1 grams of fentanyl for $280 in cash.
Garcia, who was detained in federal custody at the time of his arrest on September 23, 2015, and subsequently released on $5,000 bond with surety, remains free on $5,000 bond pending sentencing by U.S. District Court Judge John J. McConnell, Jr., on August 23, 2016.
The case in U.S. District Court in Providence is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Private Equity Fund Manager Indicted in $54 Million Embezzlement SchemeRead the Press Release
BOSTON – A Greenwich, Conn. man was indicted today in U.S. District Court in Boston in connection embezzling $54 million from the private equity firm for which he worked.
Iftikar Ali Ahmed, aka Ifty, 44, was indicted on four counts of wire fraud and three counts of making false statements on income tax returns. Ahmed is currently a fugitive from justice. He was charged in a separate scheme in April 2015, and fled the county while on pre-trial release.
The indictment alleges that between 2004 and April 2015, Ahmed embezzled more than $54 million from the private equity firm for which he worked as a general partner and fund manager. Ahmed embezzled the money through an elaborate scheme to defraud in which he submitted false invoices, substantially overstated the prices of international business deals he orchestrated on behalf of his employer, and by setting up fraudulent bank accounts in the name of the private equity firm for which he worked and the companies in which his employer invested. The indictment further alleges that Ahmed used the proceeds of his fraud to purchase a $9.6 million residence in Greenwich, Conn. and a luxury condominium in New York for approximately $8.6 million.
On one occasion in November 2014, it is alleged that Ahmed recommended to his private equity firm that it invest $20 million in an international company and justified the price by submitting fraudulent financial documents. At the same time, Ahmed informed the international company that his employer had agreed to purchase shares for $2 million. The indictment alleges that Ahmed then directed the private equity firm to wire $2 million to another company and the remaining $18 million to an account that Ahmed falsely claimed was the company’s account, but actually belonged to Ahmed. The indictment further alleges that on Jan. 12, 2015, Ahmed transferred the $18 million in fraud proceeds to his spouse and a portion of these funds was used to purchase a luxury condominium in New York City.
The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 on each count. The charge of making false statements in income tax returns provides for a sentence of no greater than three years in prison, one year of supervised release, and a fine of $1 million on each count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Division in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Neil J. Gallagher, Jr. of Ortiz’s Economic Crimes Unit.
The details contained in the Indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Peabody Man Pleads Guilty to Child Pornography ChargesRead the Press Release
BOSTON – A Peabody man pleaded guilty today in U.S. District Court in Boston to receipt and possession of child pornography.
Patrick Lynch, 24, pleaded guilty to one count of receipt of child pornography and one count of possession of child pornography. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Sept. 14, 2016.
Beginning in May 2013, Lynch began receiving emails containing images and videos of children as young as one year old being sexually exploited. On Dec. 12, 2014, during the execution of a search warrant at his residence, Lynch admitted to law enforcement officers that he received emails containing pictures of elementary school-aged children naked, posing, and engaging in sexual acts. He admitted to viewing images of child pornography on a website and to viewing child pornography on his laptop while at a Boy Scout camp in New Mexico. Lynch also communicated online with children and exchanged sexually explicit images. Prior to law enforcement executing the search warrant, Lynch deleted the application and cleared his phone’s Internet history.
A further investigation revealed that Lynch had been employed at the Greater Beverly YMCA, and had recently begun employment with Beanstalk Adventure Ropes Course in Reading, Mass.
The charge of receipt of child pornography provides for a mandatory minimum term of five years and no greater than 20 years in prison. The charge of possession of child pornography provides for no greater than 20 years in prison. Both statutes provide for a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistance was also provided by the Massachusetts State Police and the Peabody Police Department. The case is being prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz’s Major Crimes Unit.
The case is 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 www.projectsafechildhood.gov/.
Pair Pleads Guilty to Methamphetamine ChargesRead the Press Release
ABINGDON, VIRGINIA – A pair of Southwest Virginia residents pled guilty today in Federal Court to charges related to the manufacturing of methamphetamine, United States Attorney John P. Fishwick Jr. and Virginia Attorney General Mark R. Herring announced.
Travis Michael Felty, 34, of Wytheville, Virginia, pled guilty today to one count of conspiring to manufacturing methamphetamine, one count of creating a substantial risk of harm to human life while illegally manufacturing or attempting to manufacture methamphetamine, and one count of manufacturing or attempting to manufacture methamphetamine where a minor resided or was present.
Shanna Ariz Castillo, 31, of Marion, Virginia, pled guilty to one count of conspiring to manufacturing methamphetamine, one count of creating a substantial risk of harm to human life while illegally manufacturing or attempting to manufacture methamphetamine, and one count of manufacturing or attempting to manufacture methamphetamine where a minor resided or was present.
“We must be vigilant in prosecuting individuals that manufacture this highly dangerous and addictive substance, especially where children are present or reside,” United States Attorney John P. Fishwick Jr. said today. “We will continue to work with our partners in law enforcement to slow the spread of this deadly drug throughout Virginia.”
“In recent years, so many families and communities in Southwest Virginia have been hit hard by addiction and by methamphetamine, in particular,” said Attorney General Herring. “Not only can distribution and use of these dangerous drugs put Virginians at risk, but just manufacturing these drugs is an inherently dangerous process that poses significant risk to the public and the community. My team and I take these cases very seriously and we will continue to work with our federal and local partners to keep Southwest Virginia safe.”
Agencies involved in this investigation included the Washington County Sheriff’s Office, Town of Abingdon Police Department, Bristol Virginia Police Department, and the Drug Enforcement Administration. Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, prosecuted the case for the United States.
Owners of Home Health Care Agency Sentenced to Prison for Taking Part in $80 Million Medicaid FraudRead the Press Release
Defendants Used Money to Finance a Lavish Lifestyle
Florence Bikundi, 53, and her husband, Michael D. Bikundi Sr. 63, of Mitchellville, Maryland, and the owners of Global Healthcare Inc., a home care agency, were sentenced today to prison terms for health care fraud, money laundering, and other charges stemming from a scheme in which they and others defrauded the District of Columbia Medicaid program of over $80 million.
The sentences were announced by U.S. Attorney Channing D. Phillips for the District of Columbia; Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office; Special Agent in Charge Nicholas DiGiulio of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), for the region that includes Washington, D.C.; Special Agent in Charge Brian J. Ebert of the U.S. Secret Service’s Washington Field Office, and Inspector General Daniel W. Lucas for the District of Columbia (D.C. OIG).
The two defendants were found guilty on Nov. 12, 2015 in the U.S. District Court for the District of Columbia. The Honorable Chief Judge Beryl A. Howell sentenced Florence Bikundi to 10 years in prison. She sentenced Michael D. Bikundi Sr. to seven years in prison. Following their prison terms, the Bikundis will be placed on three years of supervised release. Judge Howell earlier ordered them to forfeit over $11 million seized from 76 bank accounts; their residence, worth approximately $1 million; $73,000 in cash seized from their residence and five luxury vehicles with a total purchase price of more than $400,000. She also imposed a forfeiture money judgment of $39,989,956 on both defendants. Finally, Judge Howell ordered the defendants to pay $80,620,929 in restitution to D.C. Medicaid.
“The investigation of this case exposed a massive health care fraud that cheated the District of Columbia Medicaid program of more than $80 million that could have been spent on people who needed services,” said U.S. Attorney Phillips. “Florence and Michael Bikundi enriched themselves for years by operating a rogue home care agency. Hopefully the sentences today will serve as a deterrent to other unscrupulous health care providers who aim to steal the taxpayers’ money.”
“The Bikundis funded their lavish lifestyle by defrauding the District of Columbia’s Medicaid program designed to provide for those in need,” said Assistant Director in Charge Abbate. “The FBI will continue to pursue criminals who target our health care system in order to protect its integrity and to prevent fraud. I commend the dedicated agents, analysts and prosecutors who worked to bring this case to justice.”
“It’s outrageous that fraudster couple Florence and Michael Bikundi stole millions of Medicaid funds meant to provide home health services to vulnerable patients just to fuel their own lavish lifestyle,” said Special Agent in Charge DiGiulio. “But today’s prison sentences show the results of our continued work with other law enforcement agencies to crack down on greedy individuals who rip off government health care programs.”
“Health care fraud and other similar elaborate fraudulent schemes are not victimless crimes,” said Special Agent in Charge Ebert. “This type of fraud can have a significant detrimental effect on our nation’s financial infrastructure and our local community’s economy. The Secret Service will continue to tirelessly pursue justice by investigating and dismantling these types of fraudulent schemes.”
“I hope this sentence sends a clear message that we will continue to investigate and propose prosecution for anyone who engages in corruption or fraudulent activities against the District government,” said Inspector General Lucas. “I applaud the hard work of my D.C. OIG Medicaid Fraud Control Unit (MFCU) staff for bringing this case to its rightful close.”
Florence Bikundi aka Florence Ngwe and Florence Igwacho, has been in custody since her arrest in February 2014. She was found guilty by the jury of 12 charges: one count of conspiracy to commit health care fraud; one count of conspiracy to commit money laundering, two counts of health care fraud; one count of Medicaid fraud; and seven counts of money laundering. Michael D. Bikundi Sr. was found guilty of 10 charges: one count of conspiracy to commit health care fraud; one count of conspiracy to commit money laundering, one count of health care fraud; and seven counts of money laundering.
According to evidence presented at trial, Florence Bikundi, a former nurse and her husband owned Global Healthcare Inc. According to the government’s evidence, Florence Bikundi was not entitled to take part in the Medicaid program and fraudulently got approval as a provider. Then, the government’s evidence showed, she and her husband led a scheme to bill Medicaid for services that were not fully provided – recruiting others, including family members, into the scam and creating fraudulent paperwork to hide the illegal activity.
The D.C. Medicaid program is funded jointly by District of Columbia tax dollars and federal tax dollars. Medicaid provides for home care services to be performed by personal care aides, working for eligible home care agencies. Doctors or advanced practice registered nurses must examine beneficiaries and authorize them to receive these services. The aides are to follow a plan of care and assist Medicaid beneficiaries in performing activities of daily living, such as getting in and out of bed, bathing, dressing, keeping track of medication and so forth.
In 1999, Florence Bikundi went by her maiden name of Florence Igwacho. In August 1999, the Virginia Board of Nursing revoked the nursing license of Florence Igwacho. In March 2000, the U.S. Department of Health and Human Services, Office of Inspector General notified Florence Igwacho in writing that she was excluded from participation in Medicare, Medicaid, and all federal health care programs due to the revocation.
Florence Bikundi subsequently concealed her past – namely, the Medicaid exclusion and the revocation of her nursing license - when she applied for a Medicaid provider number for Global Healthcare in June 2009 using the name of Florence Bikundi. She also used three forged signatures on her Medicaid provider application. Florence Bikundi married Michael Bikundi in September 2009.
From August 2009 through February 2014, Florence and Michael Bikundi used Global HealthCare to carry out a massive fraud, the government’s evidence showed. Year after year, the D.C. Medicaid program was billed for personal home health aide services that were not fully provided to Medicaid beneficiaries. Phony time sheets, patient files and employment files were created. Global Healthcare generated increasing amounts of payments as the years continued, going from roughly $1.35 million in 2009 to $14.27 million in 2011 to $27.16 million in 2013.
According to the government’s evidence, the Bikundis used the proceeds to finance a lavish lifestyle. In just over three years, they spent $1.3 million to purchase and renovate a newly built home. They also used the proceeds for a $140,000 Land Rover, a $120,000 Porsche, a $75,000 Mercedes Benz, a $70,000 Cadillac and a $36,000 BMW.
Seven others earlier pleaded guilty to charges in the investigation. They include Florence Bikundi’s son, Carlson M. Igwacho, 35, of Bowie, Maryland; Florence Bikundi’s two sisters, Irene M. Igwacho, 50, of Bowie, and Berenice W. Igwacho, 31, of Bowie, James Mbide, 55, of Laurel, Maryland; Nicola C. White, 34, of Laurel; Elvis N. Atabe, 57, of Adelphia Maryland, and Melissa A. Williams, 33, of Silver Spring, Maryland.
Two others were indicted on charges in the investigation but remain fugitives: Christian S. Asongcha, 39, formerly of Lanham, Maryland, and Atawan Mundu John, 39, formerly of Washington, D.C.
In announcing the sentence, U.S. Attorney Phillips, Assistant Director in Charge Abbate, Special Agent in Charge DiGiulio, Special Agent in Charge Ebert and Inspector General Lucas commended the work of those who investigated the case from the FBI’s Washington Field Office, the U.S. Department of Health and Human Services, Office of Inspector General and the U.S. Secret Service, as well as a team from the Medicaid Fraud Control Unit of the District of Columbia’s Office of the Inspector General that included Director Brent Wolfingbarger; Special Agents Mike Kellam, Sandra Adams, Victor Richardson and Senior Auditor LaShawn Brooks. They also expressed appreciation for the assistance of the District of Columbia’s Department of Health Care Finance and other agencies.
They commended the work of those who prosecuted the case, including Assistant U.S. Attorneys Lionel A. André, Anthony Saler and Michelle Bradford, of the Office’s Fraud and Public Corruption Section. They acknowledged the efforts of Assistant U.S. Attorney Christopher B. Brown of the Asset Forfeiture and Money Laundering Section, who assisted during the forfeiture proceedings and Criminal Investigator Nicole Hinson, also of the U.S. Attorney’s Office, who was the prosecution’s law enforcement representative during the trial.
Finally, they expressed appreciation for the assistance in this case and related investigations that was provided by Chief Arvind K. Lal of the Asset Forfeiture and Money Laundering Section; Assistant U.S. Attorneys Zia Faruqui, Ted Radway, Michael Friedman, Chrisellen Kolb and Michelle Zamarin; Financial Analyst Bryan J. Snitselaar; Deputy U.S. Marshal Wayne Rollock of the U.S. Marshals Service; Paralegal Specialists Toni Donato, Donna Galindo, Krishawn Graham, Tasha Harris, Corinne Kleinman and Kristy Penny; Legal Assistants Angela Lawrence, Jessica McCormick and Christopher Samson; Litigation Support Specialist Ron Royal, and former Forensic Accountant Maria Boodoo.
Owners of Home Health Care Agency Sentenced to Prison for Taking Part in $80 Million Medicaid FraudRead the Press Release
WASHINGTON –Florence Bikundi and her husband, Michael D. Bikundi, Sr., the owners of Global Healthcare, Inc., a home care agency, were sentenced today to prison terms for health care fraud, money laundering, and other charges stemming from a scheme in which they and others defrauded the District of Columbia Medicaid program of over $80 million.
The sentences were announced by Channing D. Phillips, U.S. Attorney for the District of Columbia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Nicholas DiGiulio, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), for the region that includes Washington, D.C.; Brian J. Ebert, Special Agent in Charge, Washington Field Office, U.S. Secret Service, and Daniel W. Lucas, Inspector General for the District of Columbia (D.C. OIG).
The two defendants, of Mitchellville, Md., were found guilty on Nov. 12, 2015 in the U.S. District Court for the District of Columbia. The Honorable Chief Judge Beryl A. Howell sentenced Florence Bikundi to 10 years in prison. She sentenced Michael D. Bikundi, Sr. to seven years in prison. Following their prison terms, the Bikundis will be placed on three years of supervised release. Judge Howell earlier ordered them to forfeit over $11 million seized from 76 bank accounts; their residence, worth approximately $1 million; $73,000 in cash seized from their residence, and five luxury vehicles with a total purchase price of more than $400,000. She also imposed a forfeiture money judgment of $39,989,956 on both defendants. Finally, Judge Howell ordered the defendants to pay $80,620,929 in restitution to D.C. Medicaid.
“The investigation of this case exposed a massive health care fraud that cheated the District of Columbia Medicaid program of more than $80 million that could have been spent on people who needed services,” said U.S. Attorney Phillips. “Florence and Michael Bikundi enriched themselves for years by operating a rogue home care agency. Hopefully the sentences today will serve as a deterrent to other unscrupulous health care providers who aim to steal the taxpayers’ money.”
“The Bikundis funded their lavish lifestyle by defrauding the District of Columbia’s Medicaid program designed to provide for those in need,” said Assistant Director in Charge Abbate of the FBI’s Washington Field Office. “The FBI will continue to pursue criminals who target our health care system in order to protect its integrity and to prevent fraud. I commend the dedicated agents, analysts, and prosecutors who worked to bring this case to justice.”
“It’s outrageous that fraudster couple Florence and Michael Bikundi stole millions of Medicaid funds meant to provide home health services to vulnerable patients just to fuel their own lavish lifestyle,” said Special Agent in Charge DiGiulio of the HHS Office of Inspector General. “But today’s prison sentences show the results of our continued work with other law enforcement agencies to crack down on greedy individuals who rip off government health care programs.”
“Health care fraud and other similar elaborate fraudulent schemes are not victimless crimes,” said Special Agent in Charge Ebert of the U.S. Secret Service’s Washington Field Office. “This type of fraud can have a significant detrimental effect on our nation’s financial infrastructure and our local community’s economy. The Secret Service will continue to tirelessly pursue justice by investigating and dismantling these types of fraudulent schemes.”
“I hope this sentence sends a clear message that we will continue to investigate and propose prosecution for anyone who engages in corruption or fraudulent activities against the District government,” said Inspector General Lucas. “I applaud the hard work of my D.C. OIG Medicaid Fraud Control Unit (MFCU) staff for bringing this case to its rightful close.”
**
Florence Bikundi, 53, also known as Florence Ngwe and Florence Igwacho, has been in custody since her arrest in February 2014. She was found guilty by the jury of 12 charges: one count of conspiracy to commit health care fraud; one count of conspiracy to commit money laundering, two counts of health care fraud; one count of Medicaid fraud; and seven counts of money laundering. Michael D. Bikundi, Sr., 63, was found guilty of 10 charges: one count of conspiracy to commit health care fraud; one count of conspiracy to commit money laundering, one count of health care fraud; and seven counts of money laundering.
According to evidence presented at trial, Florence Bikundi, a former nurse, and her husband owned Global Healthcare, Inc. According to the government’s evidence, Florence Bikundi was not entitled to take part in the Medicaid program and fraudulently got approval as a provider. Then, the government’s evidence showed, she and her husband led a scheme to bill Medicaid for services that were not fully provided – recruiting others, including family members, into the scam, and creating fraudulent paperwork to hide the illegal activity.
The D.C. Medicaid program is funded jointly by District of Columbia tax dollars and federal tax dollars. Medicaid provides for home care services to be performed by personal care aides, working for eligible home care agencies. Doctors or advanced practice registered nurses must examine beneficiaries and authorize them to receive these services. The aides are to follow a plan of care and assist Medicaid beneficiaries in performing activities of daily living, such as getting in and out of bed, bathing, dressing, keeping track of medication, and so forth.
In 1999, Florence Bikundi went by her maiden name of Florence Igwacho. In August 1999, the Virginia Board of Nursing revoked the nursing license of Florence Igwacho. In March 2000, the U.S. Department of Health and Human Services, Office of Inspector General notified Florence Igwacho in writing that she was excluded from participation in Medicare, Medicaid, and all federal health care programs due to the revocation.
Florence Bikundi subsequently concealed her past – namely, the Medicaid exclusion and the revocation of her nursing license - when she applied for a Medicaid provider number for Global Healthcare in June 2009 using the name of Florence Bikundi. She also used three forged signatures on her Medicaid provider application. Florence Bikundi married Michael Bikundi in September 2009.
From August 2009 through February 2014, Florence and Michael Bikundi used Global HealthCare to carry out a massive fraud, the government’s evidence showed. Year after year, the D.C. Medicaid program was billed for personal home health aide services that were not fully provided to Medicaid beneficiaries. Phony time sheets, patient files and employment files were created. Global Healthcare generated increasing amounts of payments as the years continued, going from roughly $1.35 million in 2009 to $14.27 million in 2011 to $27.16 million in 2013.
According to the government’s evidence, the Bikundis used the proceeds to finance a lavish lifestyle. In just over three years, they spent $1.3 million to purchase and renovate a newly built home. They also used the proceeds for a $140,000 Land Rover, a $120,000 Porsche, a $75,000 Mercedes Benz, a $70,000 Cadillac and a $36,000 BMW.
Seven others earlier pled guilty to charges in the investigation. They include Florence Bikundi’s son, Carlson M. Igwacho, 35, of Bowie, Md.; Florence Bikundi’s two sisters, Irene M. Igwacho, 50, of Bowie, Md., and Berenice W. Igwacho, 31, of Bowie, Md.; James Mbide, 55, of Laurel, Md; Nicola C. White, 34, of Laurel, Md.; Elvis N. Atabe, 57, of Adelphia Md., and Melissa A. Williams, 33, of Silver Spring, Md.
Two others were indicted on charges in the investigation but remain fugitives: Christian S. Asongcha, 39, formerly of Lanham, Md., and Atawan Mundu John, 39, formerly of Washington, DC.
In announcing the sentence, U.S. Attorney Phillips, Assistant Director in Charge Abbate, Special Agent in Charge DiGiulio, Special Agent in Charge Ebert, and Inspector General Lucas commended the work of those who investigated the case from the FBI’s Washington Field Office, the U.S. Department of Health and Human Services, Office of Inspector General, and the U.S. Secret Service, as well as a team from the Medicaid Fraud Control Unit of the District of Columbia’s Office of the Inspector General that included Director Brent Wolfingbarger; Special Agents Mike Kellam, Sandra Adams, Victor Richardson, and Senior Auditor LaShawn Brooks. They also expressed appreciation for the assistance of the District of Columbia’s Department of Health Care Finance and other agencies.
They commended the work of those who prosecuted the case, including Assistant U.S. Attorneys Lionel A. André, Anthony Saler, and Michelle Bradford, of the Office’s Fraud and Public Corruption Section. They acknowledged the efforts of Assistant U.S. Attorney Christopher B. Brown, of the Asset Forfeiture and Money Laundering Section, who assisted during the forfeiture proceedings, and Criminal Investigator Nicole Hinson, also of the U.S. Attorney’s Office, who was the prosecution’s law enforcement representative during the trial.
Finally, they expressed appreciation for the assistance in this case and related investigations that was provided by Arvind K. Lal, Chief of the Asset Forfeiture and Money Laundering Section; Assistant U.S. Attorneys Zia Faruqui, Ted Radway, Michael Friedman, Chrisellen Kolb, and Michelle Zamarin; Financial Analyst Bryan J. Snitselaar; Deputy U.S. Marshal Wayne Rollock of the U.S. Marshals Service; Paralegal Specialists Toni Donato, Donna Galindo, Krishawn Graham, Tasha Harris, Corinne Kleinman, and Kristy Penny; Legal Assistants Angela Lawrence, Jessica McCormick, and Christopher Samson; Litigation Support Specialist Ron Royal, and former Forensic Accountant Maria Boodoo.
Owner of Real Estate Investment Firm Pleads Guilty to $17 Million Securities FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that CARLTON P. CABOT, the former owner and chief executive officer of Cabot Investment Properties LLC (“CIP”), pled guilty yesterday to one count of securities fraud for participating in a scheme to defraud investors in numerous CIP-sponsored real estate investments. As part of the fraud, CABOT and his co-defendant misappropriated over $17 million of investor funds to pay for personal and business expenses, and concealed the fraud from the investors with manipulated financial statements. CABOT pled guilty before U.S. District Judge Jesse M. Furman.
U.S. Attorney Preet Bharara said: “Yesterday, Carlton Cabot, CEO of Cabot Investment Properties LLC, admitted to taking over $17 million in investor funds and spending it on himself, including for private school tuition for his family and a luxury vacation apartment. Cabot camouflaged his fraud by doctoring financial statements and lying to his investors.”
According to the allegations contained in the criminal complaint against CABOT, the indictment to which CABOT pled guilty, and statements made during CABOT’S plea proceeding:
From 2003 through 2012, CIP – which was controlled by CABOT – sponsored and oversaw approximately 18 so-called tenants-in-common (“TIC”) securities offerings to investors located all over the United States (collectively, the “TIC Investments” and the “TIC Investors”). A TIC investment is a real estate investment in which investors collectively own a piece of commercial real estate and are entitled to receive a portion of the rental income from the property.
From 2008 through 2012, CABOT engaged in a scheme to defraud the TIC Investors by misappropriating funds belonging to the TIC Investments and concealing his misappropriations by knowingly providing false and misleading financial reports and other information to the TIC Investors.
According to the representations in the offering prospectuses for the TIC Investments, CIP was only allowed to collect “excess” rental income from the TIC Investments – i.e., any additional money left over after the TIC Investments had paid the operating expenses for the properties and the disbursements due to the TIC Investors. Despite these representations, CABOT repeatedly transferred money out of bank accounts belonging to the TIC Investments and into CIP bank accounts that he controlled (the “CIP Operating Accounts”) before these funds could be used to pay for operating expenses and disbursements to the TIC Investors.
CABOT then used these funds to pay for unauthorized purposes without the knowledge or authorization of the TIC Investors, including: (1) to cover the operating expenses and investor distributions of other TIC Investments that had no available funds; (2) to pay for millions of dollars of personal expenses, including expensive cars, rental apartments, and private school tuition; and (3) to pay for CIP business expenses, including an approximately $1,125,651 civil settlement to certain TIC Investors who had sued CABOT and others.
To conceal the misappropriation of TIC Investment funds from the TIC Investors, CABOT and his co-defendant, Timothy J. Kroll, CIP’s chief operating officer, provided false and misleading financial reports to the TIC Investors that intentionally hid the fact that CIP owed large sums of money to the TIC Investments.
By in or about the end of 2012, when CIP ceased its day-to-day operations, CIP and its principals, CABOT and Kroll, owed approximately $17 million to the TIC Investments, which has never been repaid.
* * *
CABOT, 53, of Stamford, Connecticut, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison and three years of supervised release. According to the agreement with the Government to which he pled guilty, CABOT owes $17 million in restitution and forfeiture. CABOT is scheduled to be sentenced on September 15, 2016, before Judge Furman.
On October 7, 2015, Kroll pled guilty for his role in the scheme. Kroll is scheduled to be sentenced on July 19, 2016, before Judge Furman.
The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding efforts of the U.S. Postal Inspection Service and Internal Revenue Service’s Criminal Investigation Division.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Christian R. Everdell and Edward A. Imperatore are in charge of the prosecution.
###
Northern District of California Litigative Team and Paralegal Specialist Honored by Department of Justice at Executive Office for United States Attorneys Director’s Awards CeremonyRead the Press Release
WASHINGTON – Former and current Assistant United States Attorneys Wilson Leung, Stephen J. Meyer, Andrew M. Scoble, Benjamin P. Tolkoff, Acadia Leigh Senese, along with Kevin Costello, Maureen French, Ponly J. Tu, Daniel Charlier-Smith and Maryam Beros of the Northern District of California U.S. Attorney’s office; in addition to Anthony R. Tillett, Travis Jones, Jill Brenny, Paul Viglienzone, Anthony L. Bordigon, and Michael Carlos Garcia were among the 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 today in Washington D.C.
The Northern District of California 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.
The Northern District of California litigative team was recognized for their exceptional contributions to the investigation and prosecution of the 500 Block/C Street Gang. After an 18-month investigation by Homeland Security Investigations and the South San Francisco and Daly City Police Departments, a three-month trial resulted in the convictions of 18 members and associates of the gang on various charges including racketeering conspiracy, racketeering murder and attempted murder, Hobbs Act robbery, obstruction of justice, and attempted murder of federal agents. The 500 Block/C Street Gang terrorized the streets of South San Francisco and was responsible for one of the most violent episodes in the city’s history – a shooting that killed three young men and wounded three federal agents.
Paralegal Specialist Maryam Beros was honored with an individual award for providing more than 20 years of innovative and exceptional leadership in her development of policies, procedures, and systems for the management of health care fraud cases in the United States Attorney’s. Ms. Beros received the Director’s Award for Superior Performance in a Litigative Support Role. Her efforts have assisted law enforcement with developing leads and uncovering evidence of potential health care fraud violations, and allowed her office to track health care fraud cases from the moment of referral through sentencing and appeal. She has also developed processes for organizing, managing, and producing in discovery the voluminous, yet highly-sensitive records acquired in the course of large-scale health care fraud investigations. Ms. Beros has shared her knowledge and techniques within this district and nationwide by training Assistant United States Attorneys and paralegals in annual discovery and orientation courses, and by leading classes at the National Advocacy Center on issues unique to health care fraud cases.
“I congratulate all the recipients of the Director’s Awards and I am especially proud of the 16 exceptional employees of the Northern District of California who have received this well-deserved recognition,” said U.S. Attorney Brian J. Stretch. “The contributions made by these public servants reflect not only the deep well of talent that resides in this district but also the hard work, dedication, and sacrifice it takes to serve so honorably in the law enforcement profession.”
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.
Non-Indian Man from Vanderwagon Facing Federal Sexual Abuse and Kidnapping Charges Involving Navajo ChildRead the Press Release
ALBUQUERQUE – William Detwiler, 67, a non-Indian who resides in Vanderwagon, N.M., made his initial appearance today in federal court in Albuquerque, N.M., on an indictment charging him with child sexual abuse and kidnapping charges. Detwiler remains in federal custody pending an arraignment and detention hearing, which are scheduled for tomorrow.
The charges against Detwiler were announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, and New Mexico State Police Chief Pete N. Kassetas.
The four-count indictment, filed by a grand jury on May 24, 2016, charges Detwiler with two counts of aggravated child sexual assault and two counts of kidnapping. According to the indictment, Detwiler kidnapped an Indian child under the age of 16 years and sexually abused the victim in Nov. 2013. It alleges that Detwiler kidnapped and sexually abused the victim again on a date between Nov. 2013 and June 2014. Detwiler allegedly committed the four crimes on the Navajo Indian Reservation in McKinley County, N.M.
If convicted, Detwiler faces a penalty of a statutory mandatory minimum 30 years to a maximum of life in prison on each of the aggravated sexual assault charges and a statutory mandatory minimum of 20 years to a maximum of life in prison on each of the kidnapping charges. Detwiler’s penalty on the aggravated sexual assaults charges may be enhanced to a mandatory term of life imprisonment based on his prior conviction for criminal sexual contact with a minor. Charges in indictments are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Gallup office of the FBI and the New Mexico State Police. It is being prosecuted by Assistant U.S. Attorney Nicholas Marshall as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates under this initiative.
Nine People Charged in Multi-State Dog Fighting ConspiracyRead the Press Release
Six New Jersey residents were among nine individuals charged today in four states for their alleged roles in an interstate dog-fighting network spanning from New Mexico to New Jersey, announced Assistant Attorney General John Cruden for the Department of Justice’s Environment and Natural Resources Division and U.S. Attorney Paul Fishman for the District of New Jersey.
The federal Animal Welfare Act makes it a felony punishable by up to five years in prison to fight dogs or to possess, train, sell, buy, deliver, receive or transport dogs intended for use in dog fighting.
Criminal complaints filed in New Jersey named the following individuals, eight of whom were arrested:
- Anthony “Monte” Gaines, 35, of Vineland, New Jersey (already in state custody on unrelated charges)
- Justin Love, 36, of Westville, New Jersey
- Lydell Harris, 30, of Vineland
- Mario Atkinson, 40, of Asbury Park, New Jersey
- Frank Nichols, 39, of Millville, New Jersey
- Tiffany Burt, 34, of Vineland
- Dajwan Ware, 43, of Fort Wayne, Indiana
- Pedro Cuellar, 46, of Willow Springs, Illinois
- Robert Arellano, 62, of Albuquerque, New Mexico
According to documents filed in this case and statements made in court:
The three criminal complaints charge residents of New Jersey and out-of-state residents for their alleged involvement in a multi-state dog fighting network. The charges include alleged criminal acts related to transporting, delivering, buying, selling, receiving and possessing pit bull-type dogs for dog fighting ventures and conspiring to commit these acts in New Jersey and elsewhere throughout the United States.
From October 2015 through the present, the defendants and their associates participated in dog-fighting ventures in which pit bull-type dogs were set up for matches to maul and attack each other and fight – often until one or both dogs die – and facilitated these ventures by transporting and delivering dogs between dog fighters in various states. The federal undercover investigation revealed that the defendants discussed graphic accounts of prior dog fights they and their associates staged and furthered their dog-fighting ventures through the exchange of information concerning dog-fighting bloodlines, training methods, fighting techniques and the market for buying and selling dogs.
Federal agents found and saw evidence of the dog-fighting ventures on some of the defendants’ properties. This included scarred dogs and dogs stacked in crates; dog fighting paraphernalia, such as dog treadmills, “flirt” poles used to build jaw strength and increase aggression and animal pelts. Also found and seen were surgical instruments, syringes and other tools used to mend dogs in lieu of seeking veterinary attention.
This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog-fighting “victories.”
“Dog fighting is truly an organized criminal activity, as well as a deplorable trade in the suffering of animals,” said Assistant Attorney General Cruden. “This case marks the beginning of a coordinated effort at the Department of Justice to meet organized dog fighting head-on with a strategic, aggressive federal response.”
“There is no place in New Jersey – or anywhere else, for that matter – for a vicious blood sport like dog fighting,” said U.S. Attorney Fishman. “Not only is it unspeakably cruel to the animals that are raised to participate in dog fighting, but animals trained in this way can be extremely dangerous to the public.”
Operation Grand Champion is a continuing investigation by the U.S. Department of Agriculture, Office of the Inspector General, under the direction of Special Agent in Charge William G. Squires; Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola; and the FBI, under the direction of Special Agent in Charge Timothy Gallagher, in coordination with the Department of Justice.
The government is represented by Justice Department’s Environmental Crimes Section Trial Attorneys Ethan Eddy and Shennie Patel and Assistant U.S. Attorneys Jihee Suh and Kathleen O’Leary of the District of New Jersey and the, with the assistance of the U.S. Attorney’s Offices in the District of New Mexico, Northern District of Illinois and Northern District of Indiana.
The Humane Society of the United States is assisting with the care of the dogs seized by federal law enforcement.
A criminal complaint is an allegation based upon a finding of probable cause by a magistrate judge. A defendant is presumed innocent unless and until convicted. If convicted, each defendant faces up to five years in prison and a $250,000 fine per count of animal fighting charges. The investigation is ongoing.
Nine People Charged in Multi-State Dog Fighting ConspiracyRead the Press Release
WASHINGTON – Six New Jersey residents were among nine individuals charged today in four states for their alleged roles in an interstate dog-fighting network spanning from New Mexico to New Jersey, announced Assistant Attorney General John Cruden for the Department of Justice’s Environment and Natural Resources Division and U.S. Attorney Paul Fishman for the District of New Jersey.
The federal Animal Welfare Act makes it a felony punishable by up to five years in prison to fight dogs or to possess, train, sell, buy, deliver, receive or transport dogs intended for use in dog fighting.
Criminal complaints filed in New Jersey named the following individuals, eight of whom were arrested:
-
Anthony “Monte” Gaines, 35, of Vineland, New Jersey (already in state custody on unrelated charges)
-
Justin Love, 36, of Westville, New Jersey
-
Lydell Harris, 30, of Vineland
-
Mario Atkinson, 40, of Asbury Park, New Jersey
-
Frank Nichols, 39, of Millville, New Jersey
-
Tiffany Burt, 34, of Vineland
-
Dajwan Ware, 43, of Fort Wayne, Indiana
-
Pedro Cuellar, 46, of Willow Springs, Illinois
-
Robert Arellano, 62, of Albuquerque, New Mexico
According to documents filed in this case and statements made in court:
The three criminal complaints charge residents of New Jersey and out-of-state residents for their alleged involvement in a multi-state dog fighting network. The charges include alleged criminal acts related to transporting, delivering, buying, selling, receiving and possessing pit bull-type dogs for dog fighting ventures and conspiring to commit these acts in New Jersey and elsewhere throughout the United States.
From October 2015 through the present, the defendants and their associates participated in dog-fighting ventures in which pit bull-type dogs were set up for matches to maul and attack each other and fight – often until one or both dogs die – and facilitated these ventures by transporting and delivering dogs between dog fighters in various states. The federal undercover investigation revealed that the defendants discussed graphic accounts of prior dog fights they and their associates staged and furthered their dog-fighting ventures through the exchange of information concerning dog-fighting bloodlines, training methods, fighting techniques and the market for buying and selling dogs.
Federal agents found and saw evidence of the dog-fighting ventures on some of the defendants’ properties. This included scarred dogs and dogs stacked in crates; dog fighting paraphernalia, such as dog treadmills, “flirt” poles used to build jaw strength and increase aggression and animal pelts. Also found and seen were surgical instruments, syringes and other tools used to mend dogs in lieu of seeking veterinary attention.
This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog-fighting “victories.”
“Dog fighting is truly an organized criminal activity, as well as a deplorable trade in the suffering of animals,” said Assistant Attorney General Cruden. “This case marks the beginning of a coordinated effort at the Department of Justice to meet organized dog fighting head-on with a strategic, aggressive federal response.”
“There is no place in New Jersey – or anywhere else, for that matter – for a vicious blood sport like dog fighting,” said U.S. Attorney Fishman. “Not only is it unspeakably cruel to the animals that are raised to participate in dog fighting, but animals trained in this way can be extremely dangerous to the public.”
Operation Grand Champion is a continuing investigation by the U.S. Department of Agriculture, Office of the Inspector General, under the direction of Special Agent in Charge William G. Squires; Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola; and the FBI, under the direction of Special Agent in Charge Timothy Gallagher, in coordination with the Department of Justice.
The government is represented by Justice Department’s Environmental Crimes Section Trial Attorneys Ethan Eddy and Shennie Patel and Assistant U.S. Attorneys Jihee Suh and Kathleen O’Leary of the District of New Jersey and the, with the assistance of the U.S. Attorney’s Offices in the District of New Mexico, Northern District of Illinois and Northern District of Indiana.
The Humane Society of the Unites States is assisting with the care of the dogs seized by federal law enforcement.
A criminal complaint is an allegation based upon a finding of probable cause by a magistrate judge. A defendant is presumed innocent unless and until convicted. If convicted, each defendant faces up to five years in prison and a $250,000 fine per count of animal fighting charges. The investigation is ongoing.
# # #
16-635
DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007
-
Nine People Charged in Multi-State Dog Fighting ConspiracyRead the Press Release
Approximately 66 Dogs Rescued
NEWARK, N.J. – Six New Jersey residents were among nine individuals charged today in four states for their alleged roles in an interstate dog-fighting network spanning from New Mexico to New Jersey, U.S. Attorney Paul Fishman for the District of New Jersey and Assistant Attorney General John Cruden for the Environment and Natural Resources Division of the Department of Justice announced.
The federal Animal Welfare Act makes it a felony punishable by up to five years in prison to fight dogs or to possess, train, sell, buy, deliver, receive, or transport dogs intended for use in dog fighting.
Criminal complaints filed in New Jersey named the following individuals, eight of whom were arrested:
-
Anthony “Monte” Gaines, 35, of Vineland, New Jersey (already in state custody on unrelated charges)
-
Justin Love, 36, of Westville, New Jersey
-
Lydell Harris, 30, of Vineland, New Jersey
-
Mario Atkinson, 40, of Asbury Park, New Jersey
-
Frank Nichols, 39, of Millville, New Jersey
-
Tiffany Burt, 34, of Vineland, New Jersey
-
Dajwan Ware, 43, of Fort Wayne, Indiana
-
Pedro Cuellar, 46, of Willow Springs, Illinois
-
Robert Arellano, 62, of Albuquerque, New Mexico
According to documents filed in this case and statements made in court:
The three criminal complaints charge residents of New Jersey and out-of-state residents for their alleged involvement in a multi-state dog fighting network. The charges include alleged criminal acts related to transporting, delivering, buying, selling, receiving, and possessing pit bull-type dogs for dog fighting ventures and conspiring to commit these acts in New Jersey and elsewhere throughout the United States.
From October 2015 through the present, the defendants and their associates participated in dog-fighting ventures in which pit bull-type dogs were set up for matches to maul and attack each other and fight – often until one or both dogs die – and facilitated these ventures by transporting and delivering dogs between dog fighters in various states. The federal undercover investigation revealed that the defendants discussed graphic accounts of prior dog fights they and their associates staged and furthered their dog-fighting ventures through the exchange of information concerning dog-fighting bloodlines, training methods, fighting techniques and the market for buying and selling dogs.
During the investigation, various indications of the dog-fighting ventures were found and seen on some of the defendants’ properties. These included scarred dogs and dogs stacked in crates; dog fighting paraphernalia, such as dog treadmills, “flirt” poles used to build jaw strength and increase aggression, and animal pelts. Also found and seen were surgical instruments, syringes and other tools used to mend dogs in lieu of seeking veterinary attention.
This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog-fighting “victories.”
“There is no place in New Jersey – or anywhere else, for that matter – for a vicious blood sport like dog fighting,” U.S. Attorney Fishman said. “Not only is it unspeakably cruel to the animals that are raised to participate in dog fighting, but animals trained in this way can be extremely dangerous to the public.”
“Dog fighting is truly an organized criminal activity, as well as a deplorable trade in the suffering of animals.” Assistant Attorney General Cruden said. “This case marks the beginning of a coordinated effort at the Department of Justice to meet organized dog fighting head-on with a strategic, aggressive federal response.”
Operation Grand Champion is a continuing investigation by the U.S. Department of Agriculture, Office of the Inspector General, under the direction of Special Agent in Charge William G. Squires; Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola; and the FBI, under the direction of Special Agent in Charge Timothy Gallagher, in coordination with the Department of Justice.
The government is represented by Assistant U.S. Attorneys Jihee Suh and Kathleen O’Leary of the District of New Jersey, and the Justice Department’s Environmental Crimes Section Trial Attorneys Ethan Eddy and Shennie Patel, with the assistance of the U.S. Attorney’s Offices in the District of New Mexico, Northern District of Illinois and Northern District of Indiana.
A criminal complaint is an allegation based upon a finding of probable cause by a magistrate judge. A defendant is presumed innocent unless and until convicted. If convicted, each defendant faces up to five years in prison and a $250,000 fine per count of animal fighting charges. The investigation is ongoing.
The Humane Society of the Unites States is assisting with the care of the dogs seized by federal law enforcement.
-
Nine Defendants Charged with Social Security FraudRead the Press Release
SYRACUSE, NEW YORK – Indictments charging eight defendants from the Syracuse area and one defendant from St. Lawrence County were unsealed today in federal court. The indictments charge each defendant with fraud against the Social Security Administration, announced United States Attorney Richard S. Hartunian and Social Security Administration, Office of Inspector General, NY Field Division Special Agent-in-Charge Edward J. Ryan. Seven of the defendants were arrested today and appeared before the Hon. David E. Peebles, United States Magistrate Judge. St. Lawrence County resident Pauline House will make her court appearance pursuant to a summons on June 15, 2016. Defendant Janysha Richardson’s court date is not yet scheduled. Each of the nine defendants, identified below, is charged with one count of fraud on the Social Security Administration, in violation of 42 U.S.C. § 408(a)(3).
DEFENDANT
Age
City
Antoine Jenkins
32
Syracuse
Janysha Richardson
25
Syracuse
Jikia Jones
31
Syracuse
Lakena Gamble
39
Syracuse
Lily Brown
58
Syracuse
Lori Caputo
47
Manlius
Monique Starkey
45
Syracuse
Pauline House
62
De Peyster
The indictments allege each defendant caused the Social Security Administration to record self-employment income that they had not actually earned. Such false claims of employment affect current and future payments made by the Social Security Administration.
If convicted, each defendant faces up to five years imprisonment, a fine of up to $250,000, court ordered restitution, and up to 3 years supervised release on the charges.
The case was investigated by the Social Security Administration Office of the Inspector General. The case is being prosecuted by Assistant U.S. United States Attorney Carl Eurenius.
The charges are merely accusations and the defendants are presumed innocent until and unless proven guilty.
Nine Defendants Charged in White Plains Federal Court with Narcotics and Firearms Offenses as Part of the Yellow Tape Money Gang in NewburghRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), Delano Reid, the New York Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), Joseph A. D’Amico, the Superintendent of the New York State Police (“NYSP”), Daniel C. Cameron, the Chief of the City of Newburgh Police Department, and Bruce Campbell, the Chief of the Town of Newburgh Police Department, today announced the unsealing of an Indictment charging a total of nine defendants with committing various narcotics and firearms offenses as part of an organization known as the “Yellow Tape Money Gang” in Newburgh, New York.
Manhattan U.S. Attorney Preet Bharara stated: “These defendants allegedly sought to invoke the violence of a crime scene by calling themselves the ‘Yellow Tape Money Gang,’ and using this vivid imagery, they allegedly pumped large quantities of crack cocaine into the streets of Newburgh. Those who deal in these dangerous drugs destroy communities and fuel a cycle of drug-induced violence. Working with our partners at the FBI, ATF, the New York State police, and the Newburgh Police Department, we seek to stamp out this type of drug trade in Newburgh.”
FBI Assistant Director-in-Charge Diego Rodriguez stated: “We believe the arrests today will make a significant dent in the violent crime that has been escalating recently in the City of Newburgh. Our actions should also serve as a warning to others that the FBI Hudson Valley Safe Streets Task Force and the City of Newburgh Police Department are not going away. If gang members and drug pushers choose to fill the void left behind today, we will be there tomorrow, and the next day and the next, to protect the law abiding citizens in the City of Newburgh.”
ATF New York Special Agent in Charge Delano Reid stated: “ATF’s mission to combat gun violence in our community remains our highest priority. The crimes committed by this organization will not be tolerated by the ATF or our law enforcement partners. We will continue to work tirelessly until gangs like the Yellow Tape Money Gang, and others that would follow their destructive patterns, no longer terrorize the citizens of Newburgh.”
City of Newburgh Police Chief Daniel C. Cameron stated: “We operate under the national Group Violence Intervention model wherein we tirelessly target those individuals who cause the majority of the violence in our City. Today’s operation is an example of how our law enforcement partnership is strong and that violence will not be accepted in our community. The individuals arrested today are charged with narcotics offenses of the kind that often bring violence in our City. Those causing violence are on notice. Our collaborative efforts will continue as we move Newburgh forward.”
As alleged in the Indictment unsealed today in White Plains federal court[1]:
From at least October 2015 through May 2016, TYRIN GAYLE, a/k/a “Spazzo,” LAQUAN FALLS, a/k/a “Greedy,” GABRIEL WARREN, a/k/a “Stackz,” DAVID BROWN, a/k/a “Baby Thot,” BRENDAN GERMAINE, a/k/a “Brandan Germain,” RASHUN EVANS, LAQUAVIOUS BOYKIN, BRITTANY HALL, and CHRISTOPHER JOHNSON, conspired to sell crack cocaine in and around Newburgh, New York, referring to themselves as the “Yellow Tape Money Gang,” or “YTMG” for short. The conspiracy was led, at different times, by GAYLE, FALLS, and WARREN.
In May 2016, EVANS used, carried, and possessed a firearm in furtherance of the crack cocaine conspiracy in which he was a member.
According to statements made during bail hearings this afternoon, YTMG members advertised their affiliation with their drug trafficking organization through posts on social media websites such as Facebook. Based on these posts, law enforcement learned that the “Yellow Tape Money Gang” name referred to the yellow caution tape that law enforcement uses to cordon off dead bodies following a murder. The reference was apparently meant as a warning to rival gang members that they would need yellow tape if they crossed YTMG. These Facebook posts included photographs and videos of YTMG members with what appear to be guns, large amounts of cash, and narcotics. At least three firearms were seized during the execution of search warrants this morning in connection with the arrests.
* * *
Nine defendants were taken into federal custody this morning. These defendants were presented in White Plains federal court today before U.S. Magistrate Judge Paul E. Davison.
Charts containing the names of the defendants who were charged today, and the charges and maximum penalties they face, are attached. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the FBI, ATF, the New York State Police, the City of Newburgh Police Department, the Town of Newburgh Police Department, and the Orange County Sheriff’s Department.
The case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Maurene Comey, Jacqueline Kelly, and Lauren Schorr are in charge of the prosecutions.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
United States v. Tyrin Gayle, et al., 16 Cr. 361
CHARGE(S)
DEFENDANT(S)
MAXIMUM PENALTIES
Narcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute 28 grams or more of crack cocaine.)
TYRIN GAYLE,
a/k/a “Spazzo,”
LAQUAN FALLS,
a/k/a “Greedy,”
GABRIEL WARREN,
a/k/a “Stackz”
DAVID BROWN,
a/k/a “Baby Thot,”
BRENDAN GERMAINE,
a/k/a “Brandan Germain,”
RASHUN EVANS,
LAQUAVIOUS BOYKIN,
BRITTANY HALL, and
CHRISTOPHER JOHNSON
40 years in prison
Mandatory minimum: five years in prison
Possession of a firearm in furtherance of a drug trafficking crime
RASHUN EVANS
Life in prison
Mandatory minimum: five years in prison, to be imposed consecutively to any other sentence
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
New Jersey Leaders and Members of Violent, International Street Gang Convicted of Racketeering-Related ChargesRead the Press Release
NEWARK, N.J. – Eight members of the New Jersey branch of the international street gang “La Mara Salvatrucha,” or “MS-13” – including the branch’s founding member – were convicted by a federal jury today of racketeering-related crimes, including multiple acts of violence, U.S. Attorney Paul J. Fishman and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division announced.
Santos Reyes-Villatoro, a/k/a “Mousey,” 43, of Bound Brook, New Jersey; Mario Oliva, a/k/a “Zorro,” 29, of Plainfield, New Jersey; Roberto Contreras, a/k/a “Demonio,” 27, of Bound Brook; Julian Moz-Aguilar, a/k/a “Humilde,” 28, of Plainfield; Hugo Palencia, a/k/a “Taliban,” 24, of Plainfield; Jose Garcia, a/k/a “Chucky” and “Diabolico,” 24, of Plainfield; Esau Ramirez, a/k/a “Panda,” 25, of Plainfield; and Cruz Flores, a/k/a “Bruja,” 30, of Bound Brook, were convicted following a 16-week trial before U.S. District Judge Stanley R. Chesler in Newark federal court. The jury deliberated for approximately four days before returning the verdicts. Sentencing is set for Sept. 7, 2016. A chart outlining the counts of which each defendant was found guilty and the maximum potential penalties associated with each of those counts is attached.
According to the documents filed in this case and the evidence presented at trial:
MS-13 is a national and transnational gang with branches or “cliques” operating throughout the United States, including in Plainfield. All of the defendants were members of the “Plainfield Locos Salvatruchas” (PLS) clique of MS-13 that was founded by Reyes-Villatoro and operated in Union, Somerset, and Middlesex Counties. Reyes-Villatoro, Oliva and Contreras all served as “First Word,” or leader, of the PLS.
From 2007 through September 2013, MS-13 members from the PLS committed five murders in furtherance of MS-13’s objectives. On Feb. 9, 2009, Reyes-Villatoro, acting as the leader of the PLS, drove Moz-Aguilar and other MS-13 members through the streets of Plainfield searching for rival gang members, eventually stopping at the Plainfield train station. There, Moz-Aguilar used a firearm previously provided by Reyes-Villatoro to murder a victim who was believed to be a member of the Latin Kings, a rival gang.
On Feb. 27, 2010, Oliva drove a female member of MS-13 to an empty parking lot in Piscataway, New Jersey, and murdered her because she was suspected of working with law enforcement. Oliva then fled New Jersey with the assistance of Contreras and hid from law enforcement with the MS-13 Pinos clique in Oxon Hill, Maryland.
On Nov. 11, 2010, Palencia drove another MS-13 member to the area around Barack Obama Academy in Plainfield, where they encountered students challenging MS-13. Palencia pulled over, handed a firearm to another MS-13 member and instructed him to shoot at one of the individuals. The MS-13 member shot into the crowd, killing a bystander.
On Jan. 10, 2011, Moz-Aguilar, Roberto Contreras and other MS-13 members were in a car when they spotted a suspected 18th Street gang member in front of a restaurant. Contreras stopped the vehicle and an MS-13 member exited, approached the suspected rival gang member and shot him in the head.
On May 8, 2011, Flores murdered a victim who was caught socializing with 18th Street gang members. Flores and another MS-13 member cut his throat, beat him with a bat and stabbed him in the back 17 times. An MS-13 member involved in this murder fled New Jersey and was driven to Maryland soon after law enforcement began searching for him.
Garcia also recruited and hired MS-13 members from the Maryland-based Pinos clique to come to New Jersey and murder a woman in exchange for $40,000. The Pinos clique members were arrested by authorities as they pulled into Plainfield.
After several MS-13 members were arrested in July 2011, Ramirez and Garcia used phones from inside the Union County, New Jersey, jail to order the murder of three witnesses believed to be cooperating with police and responsible for their arrests. According to evidence presented at trial, members of the PLS also were responsible for an attempted murder of suspected Latin King members near a car wash in Plainfield; the attempted murder of suspected Latin King members in January 2009; a machete attack in May 2011 and another in June 2011 on the train tracks passing through Plainfield; an attempted murder shooting in Plainfield in May 2011; and several other violent crimes, including extortion, robbery and several weapons offenses.
The defendants were originally charged in a 26-count indictment returned by a federal grand jury in September 2013. After today’s verdicts, 13 of the 14 individuals charged in that indictment have been convicted. One defendant remains a fugitive.
U.S. Attorney Fishman and Assistant Attorney General Caldwell credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; Immigration and Customs Enforcement, Enforcement and Removal Operations (ERO), under Newark Field Office Director John Tsoukaris; and Homeland Security Investigations (ICE-HSI), under the direction of Special Agent in Charge Terence S. Opiola, with the investigation. They also thanked the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Grace H. Park, for long, close collaboration on the case.
They also thanked the Somerset County Prosecutor’s Office, under the direction of Acting Prosecutor Michael H. Robertson, and the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Andrew C. Carey, for their roles. They also acknowledged the U.S. Attorney’s Offices for the Eastern District of Virginia and the District of Maryland, as well as the Plainfield Police Department, Union County Police Department, Union County Sheriff’s Office, Elizabeth Police Department, North Plainfield Police Department, Union County Department of Corrections, Prince George’s County, Maryland, Police Department and the U.S. Marshal’s Service for their assistance.
The government is represented by Assistant U.S. Attorneys James M. Donnelly and J. Jamari Buxton of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark and by Kevin L. Rosenberg of the Organized Crime and Gangs Section of the Department of Justice.
Defendant
Found Guilty/Max Penalties
Reyes-Villatoro
Count 1: Racketeering Conspiracy- Life in Prison;
Count 2: Murder in Aid of Racketeering (Victim 5)- Mandatory life sentence
Count 3: Use of Firearm in Violent Federal Crime (Victim 5)- Life in prison; 10-year mandatory minimum
Count 4: Murder Resulting from Federal Firearm Crime (Victim 5)- Life in Prison
Oliva
Count 1: Racketeering Conspiracy- Life in Prison
Count 8: Murder in Aid of Racketeering (Victim 10)- Mandatory life sentence
Count 9: Use of Firearm in Violent Federal Crime (Victim 10)- Life in prison; 10-year mandatory minimum
Count 10: Murder Resulting from Federal Firearm Crime (Victim 10)- Life in Prison
Contreras
Count 1: Racketeering Conspiracy- 20 years in prison
Count 11: Accessory After the Fact to Murder in Aid of Racketeering (Victim 10)- 15 years
Moz-Aguilar
Count 1: Racketeering Conspiracy- Life in Prison
Count 2: Murder in Aid of Racketeering (Victim 5)- Mandatory life sentence
Count 3: Use of Firearm in Violent Federal Crime (Victim 5)- Life in prison; 10-year mandatory minimum
Count 4: Murder Resulting from Federal Firearm Crime (Victim 5)- Life in Prison
Palencia
Count 1: Racketeering Conspiracy- Life in Prison
Count 12: Murder in Aid of Racketeering (Victim 11)- Mandatory life sentence
Count 13: Use of Firearm in Violent Federal Crime (Victim 11)- Life in prison; 10-year mandatory minimum
Count 14: Murder Resulting from Federal Firearm Crime (Victim 11)- Life in Prison
Garcia
Count 1: Racketeering Conspiracy- 20 years
Count 15: Murder-for-Hire Conspiracy- 10 years
Count 16: Interstate Travel with Intent to Commit Murder-for-Hire- 10 years
Count 20: Conspiracy to Commit Murder in Aid of Racketeering- 10 years
Count 26: Conspiracy to Commit Murder in Aid of Racketeering (Victim 16, Victim 22, Victim 23)- 10 years
Ramirez
Count 1: Racketeering Conspiracy- 20 years
Count 26: Conspiracy to Commit Murder in Aid of Racketeering (Victim 16, Victim 22, Victim 23)- 10 years
Flores
Count 18: Conspiracy to Commit Murder in Aid of Racketeering (Victim 15)- 10 years
Count 19: Murder in Aid of Racketeering (Victim 15)- Mandatory life sentence
Defense counsel:
Reyes-Villatoro: Anthony Iacullo Esq. and David Glazer Esq.
Oliva: Henry Klingeman Esq. and Kenneth Kayser Esq.
Contreras: Marc Liebman Esq.
Moz-Aguilar: John Whipple Esq.
Palencia: Joseph Rubino Esq. and Kelley Sharkey Esq.
Garcia: Charles Alvarez Esq.
Ramirez: Michael Koribanics Esq..
Flores: David Ruhnke Esq. and Linwood Jones Esq.
Navajo Man Pleads Guilty to Federal Assault ChargesRead the Press Release
ALBUQUERQUE – Patrick Yazzie-Tso, 28, an enrolled member of the Navajo Nation who resides in Santa Fe, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to assault charges.
Yazzie-Tso was arrested in Jan. 2016, on a criminal complaint charging him with assault. According to the complaint, on Dec. 13, 2015, the Pojoaque Pueblo Tribal Police Department responded to a report regarding a domestic violence situation occurring on Pojoaque Pueblo in Santa Fe County, N.M. The complaint alleged that Yazzie-Tso assaulted the victim, a non-Indian, by punching her repeatedly on the head and face, slamming a large painting canvas on her, and strangling her by wrapping his hands around her neck and throat.
Yazzie-Tso was subsequently indicted on Feb. 9, 2016, and charged with assault resulting in serious bodily injury and strangling an intimate partner. During today’s proceedings, Yazzie-Tso pled guilty to the indictment without the benefit of a plea agreement.
Yazzie-Tso was remanded into federal custody after entering his guilty plea. He will remain detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Yazzie-Tso faces a statutory maximum penalty of ten years in federal prison.
This case was investigated by Northern Pueblos Agency of the BIA’s Office of Justice Services and the Pojoaque Pueblo Tribal Police Department, and is being prosecuted by Assistant U.S. Attorney Joseph Spindle.
Mohamed Fadiga Found Guilty After Two-Day Jury TrialRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David A. Capp, announced that Mohamed L. Fadiga, 42, of Indianapolis, Indiana, was found guilty, after a two- day jury trial, of possession of 15 or more counterfeit or unauthorized debit gift cards.
The defendant will be sentenced in September and is currently on bond.
This case was prosecuted as a result of an investigation by the U.S. Department of Homeland Security, Homeland Security Investigations. This case was prosecuted by Assistant United States Attorneys Toi Denise Houston and Maria N. Lerner.
# # #
Middle District of Georgia Employees Honored by Department of Justice at Executive Office for United States Attorneys Director's Awards CeremonyRead the Press Release
WASHINGTON – Alan Dasher, Erika Antonio, Patrick H. Hearn, Mary M. Englehart, Lashanda Freeman, Cynthia L. Allard, Marc B. Imes and Richard Hartline were recognized for “Superior Performance by a Litigation Team” 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 today in Washington D.C.
The Middle District of Georgia 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.
Mr. Dasher, Ms. Antonio, Mr. Hearn, Ms. Englehart, Ms. Freeman, Ms. Allard, Mr. Imes and Mr. Hartline are recognized for their efforts in the investigation and prosecution of the corporate officials of Peanut Corporation of America, involving the knowing sale of Salmonella contaminated peanut butter and products to commercial food vendors, resulting in nine deaths and thousands of victims of illness. This case demonstrated the Department’s focus on personal responsibility of corporate officers for corporate misdeeds and resulted in the longest sentences ever given in a food products case. The lengthy trial followed nearly 7 years of investigation and preparation, and netted sentences of 28 years for the Peanut Corporation of America’s president, 20 years for the food broker, and 5 years for the office manager. This case serves as an outstanding example of interagency cooperation between the United States Attorney’s Office, the Civil Division, the Federal Bureau of Investigation, and the Food and Drug Administration.
Acting United States Attorney G.F. Peterman, III stated, “This case was extraordinarily difficult from a legal, factual, logistical and emotional standpoint. The prosecutorial/investigative team worked tirelessly and with great dedication to bring this matter to a successful and just conclusion. They are extremely deserving of this accolade.”
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.
Miami-Dade County Resident Sentenced to 10 Years in Prison for Attempting to Coerce and Entice a Minor in Sexual ActivityRead the Press Release
A Miami-Dade County resident was sentenced to prison today for attempting to coerce and entice a minor to engage in sexual activity and for attempting to transfer obscene material to a minor.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.
Gerald D. Jenkins, 59, of Homestead, Florida, was sentenced to 120 months’ imprisonment, to be followed by 20 years of supervised release. Jenkins previously pled guilty to one count of attempting to coerce and entice a minor to engage in sexual activity, in violation of Title 18, United States Code, Section 2422(b), and two counts of attempting to transfer obscene material to a minor, in violation of Title 18, United States Code, Section 1470.
According to court documents, on September 29, 2015, law enforcement, while acting in an undercover capacity, responded to Jenkins’ advertisement on an online chat, soliciting sexual contact. Law enforcement, posing as the father of a thirteen-year-old female (identified as “Mia”) responded to the defendant’s online advertisement via email. During the conversation between the defendant and law enforcement, Jenkins professed his interest in having sexual contact with the thirteen-year-old.
During communications on November 2, 2015, Jenkins stated that he was willing to purchase intimate clothing for “Mia” and to pay $1,000 in exchange for being able to have sexual contact with the minor.
On November 4, 2015, Jenkins requested the minor’s email address so that he could contact her directly. Later that day, Jenkins sent an email to the account he believed belonged to the thirteen-year-old and expressed his desire to have sexual contact with the minor. Jenkins also sent the minor a sexually explicit photograph.
On November 11, 2015, Jenkins emailed “Mia,” who was actually an undercover law enforcement officer posing as the thirteen-year-old, and provided graphic detail of his sexual desires and sent additional sexually explicit photographs.
Thereafter, Jenkins continued to have contact with the individuals he believed were the minor and her father, regarding his interest in engaging in sexual contact with the thirteen-year-old.
Mr. Ferrer commended the investigative efforts of ICE-HSI. The case was prosecuted by Assistant United States Attorney Joshua S. Rothstein.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Mexican National Charged with Possessing 15 Kilograms of CocaineRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Mexican national was charged in federal court today after law enforcement officers seized his suitcase containing more than 15 kilograms of cocaine from a Greyhound bus.
Jose Manual Gomez-Monzon, 21, of Sinoloa, Mexico, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo.
Today’s federal criminal complaint charges Gomez-Monzon with possessing cocaine with the intent to distribute.
According to an affidavit filed in support of the complaint, law enforcement officers noticed a suspicious suitcase in the passenger compartment of a Greyhound bus that originated in Los Angeles, Calif., and was stopped at the Greyhound Bus Station at 1101 Troost, Kansas City, Mo., on Tuesday, May 31, 2016. The suitcase had a strong order of a chemical smell, the affidavit says, and no identifiers or tags. When passengers re-loaded the bus, officers asked who the bag belonged to, the affidavit says, but none of the passengers claimed ownership.
Officers removed the suitcase and opened it. Beneath a thin layer of women’s clothing items, the affidavit says, they found 15 bundles of cocaine with a total weight of 15.69 kilograms (34.6 pounds).
According to the affidavit, Gomez-Monzon, who was traveling with a woman who appeared to match the clothing size that was located in the suitcase, had been questioned earlier by officers and had been acting visibly nervous. Officers questioned Gomez-Monzon and his girlfriend and asked to search the girlfriend’s duffel bag. She told the officer there was clothing missing from her bag, and identified the clothing found in the suitcase with the cocaine as her missing clothing. Gomez-Monzon and his girlfriend were placed under arrest. Gomez-Monzon told officers that he had traveled from Mexico to Los Angeles in order to pick up a suitcase and transport it to Philadelphia, Penn.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Adam Caine. It was investigated by the Kansas City, Mo., Police Department and the Drug Enforcement Administration.
Member of U.S. Attorney’s Office Receives Director’s AwardRead the Press Release
NEWARK, N.J. – Executive Assistant U.S. Attorney Sabrina G. Comizzoli of the U.S. Attorney’s Office in the District of New Jersey was one 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 today in Washington D.C.
The District of New Jersey 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.
Comizzoli was honored with the Director’s Award for Superior Performance in a Managerial or Supervisory Role. Since joining the U.S. Attorney’s Office in 2002, Comizzoli served with distinction in the Office’s Appeals Division, Criminal Division, and as Counsel to the U.S. Attorney before becoming the Executive Assistant U.S. Attorney and Chief of Staff to U.S. Attorney Paul J. Fishman in 2013. Comizzoli is being recognized for her contributions to the U.S. Attorney's Office for the District of New Jersey over the past several years.
“I am proud to celebrate this extremely talented member of our staff,” U.S. Attorney Fishman said. “And I’m delighted that the Department of Justice recognizes the important contributions our Office makes to law enforcement nationwide.”
MEDIA ADVISORY -- New Mexico HOPE Initiative Partners to Meet with Silver Barelas Downtown Neighborhood AssociationRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez and Dr. Cristina V. Beato, Executive Director for Health Policy and International Medicine, UNM Health Sciences Center, will participate in the June 2, 2016 meeting of the Silver Barelas Downtown Neighborhood Association as part of the prevention and education efforts of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. U.S. Attorney Martinez and Dr. Beato will be joined by representatives of the U.S. Attorney’s Office, Drug Enforcement Administration and UNM College of Pharmacy-Generation Rx.
WHO:
U.S. Attorney Damon P. Martinez
Cristina V. Beato, M.D., FFAFP, Executive Director for Health Policy and International Medicine, UNM Health Sciences Center
Representatives of the U.S. Attorney’s Office, Drug Enforcement Administration and UNM College of Pharmacy-Generation Rx
WHAT:
HOPE Initiative Prevention and Education Presentation
WHEN:
THURSDAY, JUNE 2, 2016, 5:30 p.m.
WHERE:
Greater Albuquerque Chamber of Commerce
115 Gold Street SW, Suite 201
Albuquerque, NM 87102
The HOPE Initiative was launched in Jan. 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national heroin and opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC) and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico. The Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The new community education program is part of the prevention and education component of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Lynchburg Woman Sentenced on Fraud ChargesRead the Press Release
LYNCHBURG, VIRGINIA – United States Attorney John P. Fishwick Jr. announced the sentencing of a Lynchburg woman on a variety of fraud charges.
Catherine Pankey, 62, of Lynchburg, Va., who previously pled guilty in the United States District Court for the Western District of Virginia in Lynchburg to one count of conspiracy to commit mail and wire fraud and two counts of student loan fraud. Yesterday in District Court, Pankey was sentenced to 24 months in prison and ordered to pay approximately $120,000 in restitution.
“This sentence holds accountable a number of individuals who committed a variety of frauds,” United States Attorney John P. Fishwick Jr. said today. “The United States Attorney’s Office will continue to work with our partners in law enforcement to pursue federal charges in cases involving financial fraud.”
The investigation of the case was conducted by The investigation of the case was conducted by the United States Department of Education- Office of the Inspector General, the United States Secret Service, the Virginia State Police, the Campbell County Sheriff’s Office and the Lynchburg Police Department. Assistant United States Attorney Jennifer R. Bockhorst will prosecute the case for the United States. Assistant United States Attorney Jennifer Bockhorst is prosecuting the case for the United States.
Las Cruces Residents Plead Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Two residents of Las Cruces, N.M., pleaded guilty this afternoon in federal court to methamphetamine trafficking charges.
Chayanne Armando Nino, 25, and Michael Angelo Strubhar, 47, were arrested in Jan. 2016, on a criminal complaint charging them with methamphetamine trafficking offenses. According to the criminal complaint, Nino and Strubhar sold methamphetamine to an undercover agent on July 13, 2015.
Nino and Strubhar were subsequently indicted on Feb. 17, 2016, and charged with conspiracy to distribute methamphetamine and distribution of methamphetamine on July 13, 2015, in Doña Ana County. N.M.
During today’s proceedings, Nino and Strubhar each pled guilty to a felony information charging them with conspiracy to distribute methamphetamine and distribution of methamphetamine. Each admitted that on July 13, 2015, Nino distributed methamphetamine to Strubhar who then distributed the methamphetamine to a law enforcement agent who was acting in an undercover capacity. The weight of the methamphetamine distributed was 12.2 grams.
Under the terms of his plea agreement, Nino will be sentenced to ten years in federal prison followed by a term of supervised release to be determined by the court. At sentencing, Strubhar faces a maximum penalty of 20 years in federal prison. Both men remain in custody pending sentencing hearings which have yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA and is being prosecuted by Assistant U.S. Attorney John Balla of the U.S. Attorney’s Las Cruces Branch Office.
Justice Department Reaches Agreement to Protect the Rights of Spanish-Speaking Voters in Napa County, CaliforniaRead the Press Release
The Justice Department announced today that it has reached an agreement with Napa County, California, to ensure compliance with provisions of the Voting Rights Act that require the county to provide bilingual election materials and information in Spanish to voters.
The Voting Rights Act requires that jurisdictions determined by the Census Bureau to have a substantial population of minority-language citizens with limited English proficiency, such as Napa County, provide voting materials and assistance in the minority language as well as in English.
“The right to vote forms the foundation of our democracy, and language barriers should never keep eligible voters from accessing that right,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “This agreement ensures that Napa County’s eligible Spanish-speaking voters can access the election process and participate in our democracy by casting effective ballots. The Justice Department commends Napa County for resolving the issue quickly and cooperatively.”
The agreement with Napa County requires implementation of a comprehensive Spanish language elections program for the county’s Spanish-speaking limited English proficient voters. Under the terms of the agreement, the county will disseminate bilingual election-related information, materials and announcements. Napa County will also ensure that Spanish-language assistance is available at all locations where election-related transactions are conducted, including polling places and voter assistance centers.
Napa County already has hired a bilingual elections coordinator to assist in implementing the Spanish language elections program. The county has also established an advisory group of interested community members and organizations to assist the county in determining how to most effectively provide election information and assistance to Spanish-speaking voters. To assist in ensuring the effectiveness of the agreement’s bilingual assistance procedures, the agreement provides that Justice Department election monitors may monitor during training and early voting as well as on Election Day.
To file complaints about discriminatory voting practices, voters may contact the Voting Section of the Civil Rights Division at 1-800-253-3931 or at [email protected]. Complaints can also be filed online here.
More information about the Voting Rights Act and other federal voting rights laws are available on the Justice Department’s website at www.justice.gov/crt/about/vot/.
Napa County Memorandum of Agreement
Jury Convicts Albany Man of Stealing Government PropertyRead the Press Release
ALBANY, NEW YORK – A jury today voted to convict John E. Szumigata, age 69, of Albany, of theft of government property, for stealing Social Security benefits deposited into his deceased mother’s bank account.
The announcement was made by United States Attorney Richard S. Hartunian and Edward J. Ryan, Special Agent-In-Charge of the Social Security Administration (SSA) Office of the Inspector General.
The jury reached a verdict after a two-day trial. Szumigata faces a maximum of 10 years of imprisonment and up to 3 years of post-imprisonment supervised release. He may also be ordered to pay restitution to the SSA. Senior United States District Judge Gary L. Sharpe is scheduled to sentence Szumigata on September 26, 2016. 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.
Szumigata’s mother died in October 1999, but Szumigata continued to withdraw more than $76,000 in Social Security benefits deposited in her account from the time of her death until September 2012. Szumigata used the Social Security benefits to write checks to himself, pay personal expenses, and transfer money to businesses that he owned.
This case was investigated by the SSA Office of the Inspector General and is being prosecuted by Special Assistant U.S. Attorney Jason W. White.