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25 May 2016
Pill Mill Doctor and Wife Sentenced to Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore has sentenced Dr. Edward Neil Feldman (76, Tampa) to 25 years in federal prison for conspiracy to prescribe controlled substances not for a legitimate medical purpose and not in the usual course of professional practice, for prescribing controlled substances that resulted in the deaths of three patients, and for money laundering. Yesterday, Kim Xuan Feldman (66, Tampa), Feldman’s wife, was sentenced to four years in federal prison for her part in the conspiracy to launder proceeds of the couple’s criminal medical clinic, Feldman Orthopedic and Wellness Center (FOWC), and for her role in the conspiracy to distribute prescription medications for no legitimate purpose and outside the usual course of professional practice. The couple dispensed primarily oxycodone and methadone, as well as alprazolam and diazepam. The Court also ordered the Feldmans to forfeit their home, a Mercedes Benz, an Infinity EX35, and $489,000 in cash, which are traceable to proceeds of the offense. They were also ordered to forfeit the building that housed FOWC, as a property that facilitated their crimes. In addition, the Court entered a money judgment in the amount of $6,787,103.99, the proceeds of the criminal conduct. In partial satisfaction of the money judgment, the defendants forfeited jewelry, gold coins, and precious metals valued at $116,131, and a 2011 Porsche.
A federal jury found the Feldmans guilty on February 24, 2016.
According to testimony and evidence presented at trial, from October 2009 through December 2014, the Feldmans operated FOWC in Pinellas Park. The clinic saw between 80-100 patients a day, with new patients paying $300 in cash for visits, and follow-up patients paying $150-$225 for visits. Insurance was not accepted at FOWC. The Feldmans gave the patients prescriptions for controlled substances, usually in significant quantities, not for any legitimate medical purpose.
During the trial, Pinellas-Pasco Medical Examiners opined that three individuals had died as a result of multi-drug toxicity related to the large amounts of methadone, oxycodone, alprazolam, and diazepam found in their systems. Two of those patients had visited Dr. Feldman only once before their respective deaths.
Evidence also showed that the couple deposited more than $5 million in cash in dozens of bank accounts during the period of the charged crimes. They used proceeds from FOWC to purchase their home and property for their business, and to fund investment accounts.
This case was investigated by the Drug Enforcement Administration and the Organized Crime Drug Enforcement Task Forces (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. It was prosecuted by Assistant United States Attorneys Shauna S. Hale and Kaitlin R. O’Donnell.
Pawtucket Man Detained on Federal Firearm ChargeRead the Press Release
PROVIDENCE, R.I. – Justice Reyes, 19, of Pawtucket, was ordered detained in federal custody on Wednesday, having been indicted by a federal grand jury on Tuesday on a charge of possession of a firearm with an obliterated serial number.
According to information presented to the court at the time of Reyes’ arraignment before U.S. District Court Magistrate Lincoln D. Almond, it is alleged that on April 1, 2016, an undercover ATF agent bought a .22 caliber semi-automatic rifle from Reyes for $350. Reyes allegedly specified that the serial number had been obliterated, and that he could get the undercover and the undercover’s associates additional guns with obliterated serial numbers. The transaction allegedly occurred outside Reyes’s residence, the place where he was to be serving home confinement.
According to Rhode Island state court records, Reyes was sentenced on March 17, 2016, to one year home confinement for violating a suspended sentence imposed on January 29, 2016, having pleaded nolo contendre to a charge of simple assault domestic. Reyes began serving his home confinement sentence two weeks prior to allegedly selling the firearm to an ATF agent.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The matter was investigated by ATF and the Rhode Island AFT Task Force, with the assistance of the Pawtucket Police Department. The Rhode Island ATF Task Force is comprised of law enforcement agents and officers from the Central Falls, Providence and Cranston Police Departments, the Department of Corrections, and the Providence Fire Department.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Opelousas man sentenced to a year in prison for role in major computer hacking forumRead the Press Release
LAFAYETTE – United States Attorney Stephanie A. Finley announced today that an Opelousas man was sentenced to 12 months and one day in prison for using a computer to steal money, hacking computers to obtain passwords, and attempting to sell information on the online hacking forum known as “Darkode.”
Rory Stephen Guidry, 29, aka [email protected], of Opelousas, La., was sentenced by U.S. District Judge Dee D. Drell on one count of obtaining information by computer from a protected computer. He was also sentenced to three years of supervised release. According to the February 5, 2016 guilty plea, in July of 2014 while living in Liberty Hill, Texas, Guidry participated in an online hacking attack on a server in Austin, Texas. He moved to his grandparents’ home in Opelousas in March of 2015 after an investigation ensued as a result of the server attack. While in Opelousas, he continued to use his skills to hack into personal computers and controlled them with malware and a botnet. Guidry attempted to hack into and control more than 5,000 computers, and he attempted to sell the botnet to another hacker on Darkode. Guidry also used his hacking skills and conspired with another individual to steal more than $80,000 in bitcoin. He received half, $40,000, of the bitcoin and converted some of it to money, which he spent. Guidry also admitted to hacking another computer to take more than 5,000 active credit card accounts. He was in possession of the credit card numbers and personal identifiers when he was arrested by the FBI.
In July of 2015, the Department of Justice and other agencies dismantled Darkode. Criminal charges were filed in the Western District of Louisiana, the Western District of Pennsylvania and elsewhere against 12 individuals associated with the forum. As alleged in the charging documents, Darkode was an online, password-protected forum in which hackers and other cyber-criminals convened to buy, sell, trade and share information, ideas, and tools to facilitate unlawful and unauthorized intrusions on computers and electronic devices. Before becoming a member of Darkode, prospective members were allegedly vetted through a process in which an existing member invited a prospective member to the forum for the purpose of presenting the skills or products that he or she could bring to the group. Darkode members used each other’s skills and products to infect computers and electronic devices of victims around the world with malware. They would then gain access to, and control over, those devices.
The takedown of the forum and the charges were announced on July 15, 2015 as a result of the FBI’s infiltration of the Darkode’s membership. Twenty nations participated in the coordinated effort of law enforcement to charge, arrest or search 70 Darkode members and associates around the world.
“Cybercrime threatens anyone and everyone in our ever-increasingly internet-connected world,” Finley stated. “Computer criminals will not be able to hide or maintain their anonymity, and they will be prosecuted locally, nationally and internationally. Through coordinated responses and international cooperation of our law enforcement partners, defendants such as Mr. Guidry who are involved in computer hacking forums will see their organizations dismantled and individuals prosecuted to the fullest extent of the law.”
This investigation, Operation Shrouded Horizon, is being conducted by the FBI with assistance from Europol and their European Cyber Crime Center (EC3). This case is being prosecuted by Assistant U.S. Attorneys James T. Kitchen and Charles A. Eberle of the Western District of Pennsylvania and Trial Attorneys Gavin A. Corn, Marie-Flore Johnson and Harold Chun of CCIPS, Assistant U.S. Attorney Erica O’Neil of the Eastern District of Wisconsin and Assistant U.S. Attorney Myers Namie of the Western District of Louisiana. The Criminal Division’s Office of International Affairs also provided significant assistance.
New York Pharmacist Pleads Guilty to Medicare and Medicaid Fraud and Tax FraudRead the Press Release
Earlier today, Andrew Barrett, a New York pharmacist and pharmacy owner, pleaded guilty to health care fraud and filing false tax returns. From January 2011 to December 2012, Barrett operated pharmacies in Bronx, Rockland, and Queens counties in New York State. From his Queens pharmacy, Barrett fraudulently billed Medicare and Medicaid approximately $2.7 million for prescription medications that he never dispensed to patients. Barrett also siphoned off over $2.6 million for personal expenses from the Bronx and Rockland pharmacy accounts while falsely claiming those funds as business expenses on his tax returns. When sentenced, Barrett faces up to ten years in prison, as well as restitution, criminal forfeiture, and a fine.
The guilty plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Scott J. Lampert, Special Agent-in-Charge, Department of Health and Human Services, Office of Inspector General, New York Office (HHS-OIG); and Shantelle P. Kitchen, Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation, New York (IRS-CI).
In announcing the guilty plea, Mr. Capers extended his grateful appreciation to the agencies that led the government’s investigation and thanked the New York Office of the Medicaid Inspector General for its cooperation and assistance in the case.
According to the court filings and facts presented at the guilty plea hearing, from his Queens pharmacy, Barrett falsely billed government health care programs approximately $2.7 million for drug products, including a substantial number of HIV-AIDs medications which he never dispensed to patients. Barrett’s scheme involved billing for refills of costly medications even although patients never requested or received them, and doctors had not authorized the refills to be dispensed. Barrett also wrote checks for over $2.6 million to himself to pay for his personal expenses from the Bronx and Rockland pharmacy accounts while falsely claiming those funds as business expenses on his personal and corporate tax returns.
Today’s plea took place before United States Magistrate Judge Viktor V. Pohorelsky.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys William P. Campos and Erin E. Argo are in charge of the prosecution. Assistant United States Attorney Karin Orenstein of the Office’s Civil Division is responsible for the forfeiture of assets.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
The Defendant:
ANDREW BARRETT
Age: 57
E.D.N.Y. Docket No. 15-CR-103
New Orleans Businessman Pleads Guilty to Defrauding InvestorsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOHN F. KELLY, III, age 55, of Metairie, pled guilty today to wire fraud.
According to court documents, KELLY operated a tax sale investment business with investor monies from 2011 through 2014. During this time period, KELLY defrauded his investors by diverting their investment funds for his own personal use and benefit. As part of the scheme to defraud, KELLY used investor monies to pay off personal loans and to purchase real estate properties in New Orleans that he titled in separate corporate entities he controlled.
The maximum penalty for wire fraud is twenty years imprisonment and a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victims. U.S. District Judge Kurt D. Engelhardt set sentencing for August 24, 2016.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigations Division, in investigating this matter. Assistant United States Attorneys Richard R. Pickens, II, Andre J. Lagarde, and Hayden M. Brockett are in charge of the prosecution.
Man Sentenced to over 13 Years in Prison for being a Career Offender in Possession of a Machine GunRead the Press Release
ATLANTA - Franklin Latimore has been sentenced to thirteen years, three months in federal prison for possessing an unregistered machine gun while being a felon. Latimore is considered a “career offender” under federal law because he has two prior felony convictions for either a crime of violence or a drug trafficking offense.
“Machine guns are an especially dangerous category of firearms,” said U. S. Attorney John Horn. “When these weapons are possessed by individuals with serious criminal histories, the threat that machine guns pose increases exponentially.”
“The law abiding citizens of this community are safer because of today’s sentence which will ensure the incarceration of a dangerous criminal and contribute to the restoration of order and peace to this area,” said ATF Special Agent in Charge Carl Walker.
According to U.S. Attorney Horn, the charges and other information presented in court: Latimore first came to the attention of police after a court-authorized wiretap intercepted a conversation concerning the sale of a large amount of cocaine. Police did not know who the buyer was going to be, but knew the location and time of the supposed deal. On that date and time, police made a lawful traffic stop of a vehicle that Latimore was driving near the drug deal and found over $100,000 in the trunk.
A few days later, a search warrant was served on Latimore’s residence and police found the loaded machine gun, a second firearm, a kilogram press typically used by drug dealers to create brick-shaped blocks of drugs, and material commonly used to package drugs. Latimore’s criminal history is so severe that special enhanced sentencing applies to him.
Franklin Latimore, 60, of Atlanta, Georgia, was sentenced by United States District Judge Timothy C. Batten, Sr., to thirteen years, three months in prison to be followed by six years of supervised release, and ordered to forfeit all firearms. Latimore has been convicted on these charges on December 15, 2015, after he pleaded guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorneys Suzette A. Smikle, Michael Brown, and Kim S. Dammers prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Major Narcotics Supplier for New Jersey Drug Trafficking Organization Convicted of Drug Distribution, Weapons ChargesRead the Press Release
TRENTON, N.J. – A Jersey City, New Jersey, man was convicted by a federal jury today for his role as a heroin and cocaine supplier to a large-scale drug trafficking organization that operated in Ocean and Monmouth Counties and elsewhere in New Jersey, U.S. Attorney Paul J. Fishman announced.
Thomas Shannon, a/k/a “Cuzzo,” 37, was convicted of four counts of an indictment charging him with one count of conspiracy to distribute cocaine and more than a kilogram of heroin, one count of possession with intent to distribute heroin and cocaine, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of engaging in a monetary transaction in criminally derived property. Shannon was convicted following a two-week trial before U.S. District Judge Peter G. Sheridan in Trenton federal court. The jury deliberated for three hours before returning the verdict.
Between March and May 2014, 21 other individuals, including numerous alleged members of the drug trafficking organization to which Shannon supplied narcotics, were charged in two separate criminal complaints with conspiring to distribute heroin and other related offenses. The complaint referred to the drug trafficking organization as the “Britt-Young DTO,” after its leaders, Robert Britt, a/k/a “True,” and Rufus Young, a/k/a “Equan,” a/k/a “E-Money,” a/k/a “Kintock.” Of the 22 individuals charged, 21 have been convicted to date.
According to documents filed in this case and the evidence presented at trial:
Between October 2013 and March 2014, Shannon conspired with others to distribute heroin and cocaine in Ocean and Monmouth counties, including to the Britt-Young DTO. Shannon obtained some of his narcotics from conspirators in California, who shipped packages containing large quantities of heroin and cocaine from California to Shannon in New Jersey. The packages were sent to a residence in Perth Amboy, New Jersey, and received by another conspirator, who then gave the packages to Shannon. Shannon then transported the narcotics to stash house locations that he controlled in Asbury Park and Long Branch, New Jersey, where he packaged the heroin and cocaine and prepared it for distribution to other dealers. Shannon packaged some of the heroin in small plastic bags that were “stamped” with brand names or markings to distinguish it from other narcotics sold in or around the Monmouth County area.
To pay for the drug shipments, Shannon and others acting at his direction deposited cash into numerous third-party bank accounts provided by the conspirators in California, who then withdrew the cash at bank branch locations in California.
Shannon used numerous cellular telephones to communicate with his conspirators, including through text messages, and he and his conspirators often spoke in code to disguise the illegal nature of their communications. For example, Shannon and a leader of the Britt-Young DTO referred to cocaine as “Kristine.” Shannon also acquired and possessed firearms in furtherance of the drug trafficking conspiracy, including a Smith and Wesson .38 caliber revolver and a Sturm, Ruger & Co. Inc. .40 caliber handgun.
The conspiracy count carries a minimum potential penalty of 10 years in prison, a maximum of life in prison, and a $10 million fine. The possession of controlled substances count with which Shannon is charged carries a minimum potential penalty of five years in prison, a maximum of 40 years in prison, and a $5 million fine. The possession of a firearm in furtherance of a drug trafficking offense count carries a minimum potential penalty of five years in prison and a maximum of life in prison, which must be served consecutive to any sentence imposed in connection with the underlying drug trafficking offenses. The engaging in a monetary transaction in criminally derived property count carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Aug. 30, 2016.
U.S. Attorney Fishman credited special agents of the FBI, Red Bank Resident Office, under the direction of Special Agent in Charge Timothy Gallagher in Newark; officers of the Brick Township Police Department, under the direction of Chief James Riccio: and officers of the Toms River Police Department, under the direction of Chief Mitchell A. Little, with the investigation leading to today’s verdict.
He also thanked special agents of the Bureau of Alcohol Tobacco Firearms and Explosives (ATF), under the direction of Special Agent in Charge George P. Belsky; inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Cynthia Shoffner; officers of the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Christopher Gramiccioni; and officers of the Ocean County Prosecutor’s Office, under the direction of Prosecutor Joseph D Coronato. He also thanked the Monmouth County Sheriff’s Office and the Neptune Township, Asbury Park, Marlboro, and Long Branch police departments for their roles in the case.
The government is represented by Assistant U.S. Attorney Nicholas Grippo and Brendan Day of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense Counsel: Edward Bertucio Esq., Eatontown, New JerseyLegal Resident from El Salvador Pleads Guilty to Federal Methamphetamine Trafficking Charges in New MexicoRead the Press Release
ALBUQUERQUE – Cecilia Pocasangre, 41, a legal permanent resident from El Salvador, pled guilty today in federal court in Las Cruces, N.M., to a methamphetamine trafficking charge arising out of a 7.5-pound seizure of methamphetamine at a U.S. Border Patrol checkpoint.
Pocasangre was arrested in April 2016, and charged in a criminal complaint with possession of methamphetamine with intent to distribute. The complaint alleged that Pocasangre committed the crime on April 6, 2016, in Doña Ana County, N.M. Pocasangre was arrested after U.S. Border Patrol agents at the Border Patrol Checkpoint on Interstate 25 in Doña Ana County found approximately 3.41 kilograms (7.5 pounds) of methamphetamine concealed in Pocasangre’s vehicle during a routine inspection.
During today’s proceedings, Pocasangre pled guilty to a felony information charging her with possession of methamphetamine with intent to distribute and admitted possessing 3.41 kilograms of methamphetamine, which were found during a routine inspection of her vehicle at a U.S. Border Patrol checkpoint.
At sentencing, Pocasangre faces a statutory minimum penalty of ten years and a maximum of life in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the U.S. Border Patrol and the Las Cruces office of the DEA. Assistant U.S. Attorneys John A. Balla and Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case.
Lawrence Lusk Sentenced for Being A Felon in Possession of A FirearmRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Lawrence Lusk, 30, of South Bend, Indiana was sentenced before Judge Jon E. DeGuilio, for being a felon in possession of a firearm.
Lusk was sentenced to 34 months imprisonment and 1 year of supervised release.
According to documents filed in this case, on September 2, 2015, Lusk was arrested for domestic violence and was searched incident to arrest. During the search officers located a purple bag in his waist that contained marijuana, cocaine and heroin. Officers also located a .45 caliber firearm in the vehicle where Lusk was seated. During an interview Lusk admitted to possessing the firearm. Lusk has multiple prior convictions which classified him as a felon.
This case was prosecuted as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the South Bend Police Department. This case was prosecuted by Assistant United States Attorney Jesse M. Barrett.
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Law Day 2016 Celebrated in Cedar Rapids: Students Urged to Push for Positive ChangesRead the Press Release
CEDAR RAPIDS, IA – Law Day is an annual event originally conceived in 1957 when the American Bar Association suggested recognizing a special national day to mark our Nation’s commitment to the rule of law. It was made official in 1961 when Congress issued a joint resolution designating May 1 as the official recognition date.
Last year the Cedar Rapids community came together for the first time to celebrate Law Day with area high school students. The theme, “From Selma to Cedar Rapids” highlighted civil rights workers’ fight for civil rights and included a discussion of the Selma marches for the right to vote. The connection between historical events and current day issues were examined. Area students participated in a symbolic march along the river starting at the Federal Courthouse and ending at the Veterans Memorial Building, which was followed by a day of programming.
Today, the United States Attorney’s Office for the Northern District of Iowa joined community leaders in a special day of celebrating Law Day 2016. The theme, Mighty Times: The Children’s March highlighted how youth can serve as catalysts for positive social change. This historical event eventually brought segregation to its knees when in 1963 young people in Birmingham, Alabama braved arrest, fire hoses, and police dogs to protest injustice. The connection between this event and current day issues were examined in a series of breakout sessions.
Cedar Rapids Mayor Ron Corbett made opening remarks during which he delivered a Proclamation declaring today as Law Day 2016 to three students from area high schools. The Proclamation read, “Law Day is an occasion of public acknowledgement of our Nation’s and Iowa’s heritage of justice, liberty and equality under the law.” By celebrating Law Day in Cedar Rapids, it is hoped to promote a better understanding of the roots of our freedoms and serves as a reminder that even the youngest members of our society can effect positive social change.
United States Attorney for the Northern District of Iowa, Kevin W. Techau, stated that today’s program is aimed at challenging students to think about the fundamental ideals upon which this country was founded and reminded them that they have the power to put their energy and skills to work for the common good. Techau added, “To challenge one another – and our nation – to aim higher; to become better.”
The keynote speaker for this year’s event was Betty C. Andrews who serves as the President of the Iowa-Nebraska NAACP. She touched on the subject of racial equity and stressed engagement by young people to make a difference in their community by serving as positive change agents. Andrews challenged the students to dream big and dream bold.
Metro High School Principal, Dr. Carlos Grant, has been a key participant in the planning and execution of Law Day this year and last. He stated, “Law Day is a special time for people to appreciate the liberties afforded to us as Americans. The core essence of it is to cultivate a sound respect for the law and our democratic way of life. I believe it is critical that we engage young people in relevant activities related to the law. Oftentimes, our young people do not know about the power they possess and how their passion can ensure their ability to thrive. This year's focus on how young people fight against segregation laws in 1960's Birmingham, AL will be a catalyst for modern teens to impose positive social change.”
Area high school students were invited to participate in program activities designed to encourage them to be a positive change agent in their community. Follow this event at: #CRLawDay2016.
L to R: USA Kevin Techau, Betty C. Andrews, Dr. Carlos Grant
Follow us on Twitter @USAO_NDIA.
Last of 17 Defendants Convicted in Methamphetamine Trafficking Conspiracy is Sentenced to 20 Years in Federal PrisonRead the Press Release
FORT WORTH, Texas — Octavio Colin, 34, of Cleburne, Texas, was sentenced on Monday by U.S. District Judge Reed C. O’Connor to 240 months (20 years) in federal prison, following his guilty plea earlier this year to one count of conspiracy to possess with intent to distribute methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Co-conspirator Jason Ziegler, 32, of Justin, Texas, who pleaded guilty to the same offense, was sentenced on Monday to 60 months in federal prison.
According to documents filed in their cases, since approximately 2013, Ziegler received methamphetamine on consignment from Colin and another convicted defendant, Erica Ayala. In turn, Ziegler distributed the methamphetamine to various customers in the Fort Worth, Texas, area, returning to Ayala for additional supply. From approximately July to August 2014, Ayala received ounce and multi-ounce quantities of methamphetamine on consignment from Colin that she distributed in the Fort Worth and Richland Hills, Texas, area, returning to Colin for additional supply. Ayala was sentenced in July 2015 to 160 months in federal prison for her role in the conspiracy.
A total of 17 defendants were charged in the case; all pleaded guilty and have been sentenced. In February 2016, Miguel Bonilla, 36, of Dallas, was sentenced by Judge O’Connor to 360 months in federal prison, following his guilty plea in October 2015 to one count of conspiracy to possess with intent to distribute methamphetamine. Four other defendants convicted in the case received federal prison sentences of 240 months. The remaining 10 defendants received prison sentences ranging from 72 to 210 months.
The Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Texas Department of Public Safety investigated. Assistant U.S. Attorney Shawn Smith was in charge of the prosecution.
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Last of 14 defendants in Acadiana methamphetamine distribution conspiracy sentencedRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that a Texas man was sentenced to 120 months in prison for his role in a methamphetamine distribution conspiracy in Lafayette, New Iberia and the surrounding areas.
Gary Hunt, 60, of Splendora, Texas, was sentenced by U.S. District Judge Dee D. Drell on one count of conspiracy to distribute and possess with intent to distribute methamphetamine. He was also sentenced to five years of supervised release. According to the February 5, 2016 guilty plea, the defendants conspired to distribute and possess with intent to distribute methamphetamine in New Iberia, Lafayette and the surrounding areas. Elliot Jolet, 36, and Anita Desormeaux, 44, both of New Iberia, purchased methamphetamine from Hunt in Texas and then transported it to the south central Louisiana area where it was distributed. The investigation also resulted in the seizure of crystal methamphetamine, more than $5,400, a vehicle and several firearms.
Jolet was sentenced on December 8, 2015 to 180 months in prison and five years of supervised release. Desormeaux was sentenced on November 24, 2015 to 157 months in prison and four years of supervised release.
The other 11 defendants who also pleaded guilty to the conspiracy count are:
Ko Chanhkongshinh, 39, of Youngsville, La., was sentenced on January 14, 2016 to 75 months in prison and three years of supervised release;
Jenee Lynn Hargrave, 30, of Scott, La., was sentenced on January 14, 2016 to 120 months in prison and five years of supervised release;
David Lowery, 34, of New Iberia, was sentenced on October 28, 2015 to 30 months in prison and two years of supervised release;
Everette Dupuis, 40, of New Iberia, was sentenced on January 13, 2016 to 40 months in prison and two years of supervised release;
Michael Guidry, 46, of Erath, La., was sentenced on October 28, 2015 to 66 months in prison and three years of supervised release;
Tyrone Howard, 44, of Youngsville, was sentenced on January 11, 2016 to 40 months in prison and two years of supervised release;
Kevin Jefferson, 32, of New Iberia, was sentenced on January 11, 2016 to 68 months in prison and five years of supervised release;
Nared Souphannavong, 30, of New Iberia, was sentenced on January 13, 2016 to 24 months in prison and five years of supervised release;
Brandi Boullion, 29, of New Iberia, was sentenced on January 13, 2016 to time served and two years of supervised release;
Dewey Migues, 37, of New Iberia, was sentenced on November 24, 2015 to 60 months in prison and three years of supervised release; and
Corey Freyou, 39, of New Iberia, was sentenced on November 18, 2015 to 18 months in prison and three years of supervised release.
The investigation is part of an Organized Crime Drug Enforcement Task Force (OCDETF) Operation. The DEA, Iberia Parish Sheriff’s Office, Lafayette Parish Sheriff’s Office, Vermilion Parish Sheriff’s Office and the Lafayette Police Department participated in this OCDETF investigation. The U.S. Marshal’s Service, U.S. Department of Homeland Security and the Lafayette City Marshal’s Office assisted in the arrests. The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for targeting national and regional level drug trafficking organizations, coordinating the necessary law enforcement entities and resources to disrupt and dismantle the targeted criminal organization, and to seize its assets.
“Methamphetamine drug traffickers distribution networks are priority prosecutions for this office,” Finley stated. “The poison these defendants sell hurts our communities and spawns more crimes. I’m thankful to the law enforcement agents and prosecutors who worked hard to make sure our communities are safe and ensured a successful conclusion to this case.”
Assistant U.S. Attorneys Myers P. Namie, Daniel J. McCoy and Robert F. Moore prosecuted the case.
Justice Department Sues Palm Beach, Florida, County School Board for Discriminating Against Pregnant EmployeeRead the Press Release
The Department of Justice filed a lawsuit today alleging that the Palm Beach, Florida, County School Board discriminated against a female employee on the basis of her sex and retaliated against her when she complained about discrimination.
Anne Williams Dorsey was an Assistant Principal at Turning Points Academy, a public school in the Palm Beach County School District. According to the complaint, she was subjected to unlawful changes to her work hours and pay after she began a period of maternity leave, in violation of Title VII of the Civil Rights Act of 1964. Title VII is a federal statute that prohibits employment discrimination on the basis of race, color, religion, sex or national origin.
The department’s complaint, filed in the U.S. District Court for Southern District of Florida, further alleges that the principal at Turning Points Academy subjected Dorsey to discrimination and retaliation by reducing her responsibilities as an Assistant Principal after she announced her intention to become a mother. Specifically, when Dorsey went on maternity leave, the principal reassigned her to a position with a lower salary and fewer assigned days, and then replaced her with a male employee whom she had previously trained. The complaint also alleges that the principal retaliated against Dorsey because she reported another female employee’s sexual harassment allegations against the male employee who eventually replaced her.
The complaint seeks a court order requiring the board to develop and implement policies that would prevent its employees from being subjected to discrimination and retaliation. The United States also seeks monetary relief for Dorsey to compensate her for the damages she sustained as a result of the alleged discrimination and retaliation.
“Federal law requires employers to maintain a workplace free of sex-based discrimination of any kind,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “No employee should be punished at work for the decision to start a family.”
“All employers must respect the civil rights of all of their employees, and sex-based discrimination of any kind has no place in the work environment,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida. “As this lawsuit shows, the Department of Justice will work vigorously to make sure that our community’s workplaces are free from such discrimination.”
The Equal Employment Opportunity Commission (EEOC) received a charge of sex discrimination filed by Dorsey. The EEOC’s Miami Field Office investigated the matter and found reasonable cause to believe the board discriminated against her. After unsuccessful conciliation efforts, the EEOC referred the matter to the Justice Department.
The continued enforcement of Title VII is a priority of the Justice Department’s Civil Rights Division. Additional information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at www.justice.gov/crt.
Palm Beach County School Board Complaint
Justice Department Sues Palm Beach, Florida, County School Board for Discriminating Against Pregnant EmployeeRead the Press Release
The Department of Justice filed a lawsuit today alleging that the Palm Beach, Florida, County School Board discriminated against a female employee on the basis of her sex and retaliated against her when she complained about discrimination.
Anne Williams Dorsey was an Assistant Principal at Turning Points Academy, a public school in the Palm Beach County School District. According to the complaint, she was subjected to unlawful changes to her work hours and pay after she began a period of maternity leave, in violation of Title VII of the Civil Rights Act of 1964. Title VII is a federal statute that prohibits employment discrimination on the basis of race, color, religion, sex or national origin.
The department’s complaint, filed in the U.S. District Court for Southern District of Florida, further alleges that the principal at Turning Points Academy subjected Dorsey to discrimination and retaliation by reducing her responsibilities as an Assistant Principal after she announced her intention to become a mother. Specifically, when Dorsey went on maternity leave, the principal reassigned her to a position with a lower salary and fewer assigned days, and then replaced her with a male employee whom she had previously trained. The complaint also alleges that the principal retaliated against Dorsey because she reported another female employee’s sexual harassment allegations against the male employee who eventually replaced her.
The complaint seeks a court order requiring the board to develop and implement policies that would prevent its employees from being subjected to discrimination and retaliation. The United States also seeks monetary relief for Dorsey to compensate her for the damages she sustained as a result of the alleged discrimination and retaliation.
“All employers must respect the civil rights of all of their employees, and sex-based discrimination of any kind has no place in the work environment,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of New York. “As this lawsuit shows, the Department of Justice will work vigorously to make sure that our community’s workplaces are free from such discrimination.”
“Federal law requires employers to maintain a workplace free of sex-based discrimination of any kind,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “No employee should be punished at work for the decision to start a family.”
The Equal Employment Opportunity Commission (EEOC) received a charge of sex discrimination filed by Dorsey. The EEOC’s Miami Field Office investigated the matter and found reasonable cause to believe the board discriminated against her. After unsuccessful conciliation efforts, the EEOC referred the matter to the Justice Department.
The continued enforcement of Title VII is a priority of the Justice Department’s Civil Rights Division. Additional information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at www.justice.gov/crt.
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
Jury finds Patterson man guilty in tax fraud schemeRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that a federal jury found a man from Patterson guilty in a scheme to use stolen identities to file false tax returns and pocket refunds.
Louis W. Carbins Jr., 36, of Patterson, La., was found guilty of one count of conspiracy to defraud the United States, seven counts of theft of government money and one count of aggravated identity theft. The three-day trial started Monday and ended today with the jury deliberating for 30 minutes. United States District Judge Dee D. Drell presided over the trial. According to the testimony and evidence presented, from February 2013 to August of 2013, Carbins and co-defendant Laphrida T. Watts, 39, from Morgan City, La., knew and allowed individuals from overseas to use stolen identities to file tax returns. The overseas individuals then directed the IRS to deposit the refunds into Carbins’ bank accounts. Carbins and Watts would then wire some of the money overseas and keep the rest. The IRS issued more than $815,000 in refunds to Carbins’ accounts. Carbins and Watts spent $45,681.22 of the funds.
Watts pleaded guilty on January 13, 2016 to one count of conspiracy to defraud the United States and one count of aggravated identity theft. She faces up to 10 years in prison and three years of supervised release for the conspiracy count and an additional two years in prison for the identity theft count, which will be served consecutive to the penalty imposed for the conspiracy count. Carbins faces the same counts as Watts in addition to the seven counts of government money theft. The theft count carries a penalty of 10 years in prison. They both also face three years of supervised release and a $250,000 fine. Watts is scheduled to be sentenced on June 28, 2016, and Carbins is scheduled to be sentenced August 29, 2016.
The IRS conducted the investigation. Assistant U.S. Attorneys Kelly P. Uebinger and Robert F. Moore are prosecuting the case.
Iraqi-Born U.S. Citizen Sentenced to 48 Months in Prison for Making False Statements to the FBIRead the Press Release
Bilal Abood, 38, of Mesquite, Texas, was sentenced today by U.S. District Judge Ed Kinkeade of the Northern District of Texas to four years in prison for one count of making a false statement to a federal agency.
The sentence was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney John Parker of the Northern District of Texas and Special Agent in Charge Thomas M. Class Sr. of the FBI’s Dallas Division.
“My office’s highest priority is and will remain the security of our homeland and the safety of all Americans,” said U.S. Attorney Parker. “We remain more committed than ever to aggressively fighting all terrorism-related acts in north Texas. We appreciate the outstanding work by the Dallas FBI and the assistance of the department’s National Security Division during this investigation and prosecution.”
“It remains among the highest priorities of the FBI to identify individuals who seek to join the ranks of foreign fighters traveling in support of ISIL,” said Special Agent in Charge Class. “Bilal Abood lied to the FBI about the true purpose of his travel to Syria and his allegiance to ISIL, and now he will face the consequences.”
Abood has been in federal custody since his May 2015 arrest by the FBI related to a criminal complaint. He pleaded guilty in October 2015 to a one-count superseding indictment.
Abood admitted that on March 29, 2013, he attempted to depart the United States at Dallas Fort Worth International Airport, but was not allowed to board the international flight. While at the airport, FBI special agents asked Abood about his planned travel and he stated he was merely planning to travel to Iraq to visit family. During a subsequent interview, Abood admitted to FBI special agents that his intent was to travel to Syria to fight the regime of Bashar al-Assad.
On approximately April 29, 2013, Abood left the United States through Mexico and traveled through various countries into Syria. On Sept. 16, 2013, Abood returned to the United States and admitted to FBI special agents that he had traveled to Syria, but he denied supporting any terrorist groups.
A search warrant was executed on Abood’s computer on July 9, 2014. A review of that computer revealed that on approximately June 19, 2014, Abood stated, while using his Twitter handle @ibnalislaam, “I pledge obedience to the Caliphate Abu Bakr al-Baghdadi.” Abood admitted that he knew that al-Baghdadi is the self-proclaimed leader of ISIL and was designated as a specially designated global terrorist on Oct. 4, 2011, and remains so to date.
Abood also admitted that on April 14, 2015, FBI special agents advised him that lying to a federal agent is a crime. He further admitted that on that date, he falsely told FBI special agents that he had never pledged allegiance to al-Baghdadi and that he was aware that the agents were investigating a matter that they suspected could involve international terrorism.
The case was investigated by the FBI’s Dallas Division. The prosecution was handled by the U.S. Attorney’s Office of the Northern District of Texas with assistance from the National Security Division’s Counterterrorism Section.
Iraqi-Born U.S. Citizen Sentenced to 48 Months in Federal Prison for Making False Statements to the FBIRead the Press Release
DALLAS – A Mesquite, Texas man, Bilal Abood, 38, was sentenced this morning by U.S. District Judge Ed Kinkeade to 48 months in federal prison, following his guilty plea in October 2015 to a superseding indictment charging one count of making a false statement involving international terrorism to a federal agency, announced Assistant Attorney General for National Security John P. Carlin, U.S. Attorney John Parker of the Northern District of Texas and Special Agent in Charge Thomas M. Class Sr. of the FBI’s Dallas Field Office.
“My office’s highest priority is and will remain the security of our homeland and the safety of all Americans,” said U.S. Attorney Parker. “We remain more committed than ever to aggressively fighting all terrorism-related acts in north Texas. We appreciate the outstanding work by the Dallas FBI and the assistance of the Department’s National Security Division during this investigation and prosecution.”
“It remains among the highest priorities of the FBI to identify individuals who seek to join the ranks of foreign fighters traveling in support of ISIL,” said Special Agent in Charge Class. “Bilal Abood lied to the FBI about the true purpose of his travel to Syria and his allegiance to ISIL, and now he will face the consequences.”
Abood has been in federal custody since his arrest in May 2015 by special agents with the FBI on a related criminal complaint.
Abood admitted that on March 29, 2013, he attempted to depart the U.S. at Dallas Fort Worth International Airport, but was not allowed to board the international flight. While at the airport, FBI special agents asked Abood about his planned travel, and he stated he was merely planning to travel to Iraq to visit family. During a subsequent interview, Abood admitted to FBI special agents that his intent on March 29, 2013, was to travel to Syria to fight the regime of Bashar Al Assad.
On approximately April 29, 2013, Abood left the U.S. through Mexico and traveled through various countries into Syria. On September 16, 2013, Abood returned to the U.S. and admitted to FBI special agents that he had traveled to Syria, but he denied supporting any terrorist groups.
A search warrant was executed on Abood’s computer on July 9, 2014. A review of that computer revealed that on approximately June 19, 2014, Abood stated, while using his Twitter handle @ibnalislaam, “I pledge obedience to the Caliphate Abu Bakr al-Baghdadi.” Abood stipulated that Abu Bakr al-Baghdadi is the self-proclaimed leader of ISIL and was designated as a Specially Designated Global Terrorist on October 4, 2011, and remains so to date.
Abood also admitted that on April 14, 2015, FBI special agents advised him that lying to a federal agent is a crime. He further stipulated that on that date, he falsely told FBI special agents during a terrorism investigation that he had never pledged allegiance to Abu Bakr-al-Baghdadi. He also stipulated that he was aware the FBI special agents were investigating a matter that they suspected could involve international terrorism.
The FBI’s Dallas Division investigated the case. The prosecution was handled by the U.S. Attorney’s Office for the Northern District of Texas, with assistance from the National Security Division’s Counterterrorism Section.
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International Arms Trafficker Found Guilty for Conspiring to Kill Americans and Provide Material Support to a Designated Foreign Terrorist OrganizationRead the Press Release
Romanian Citizen Agreed to Provide Military-Grade Weapons to be Used to Shoot Down American Aircraft in Colombia
Virgil Flaviu Georgescu, 43, of Romania, was convicted by a federal jury today of conspiring to sell large quantities of military-grade weaponry to the Fuerzas Armadas Revolucionarias de Colombia (the FARC), a designated foreign terrorist organization, to be used to kill Americans in Colombia. Georgescu’s conviction followed a 10-day trial before U.S. District Judge Ronnie Abrams of the Southern District of New York.
The conviction was announced by Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Preet Bharara of the Southern District of New York.
“As the jury swiftly found, Virgil Flaviu Georgescu conspired to kill American officers and provide material support to the FARC,” said U.S. Attorney Bharara. “In concert with his co-defendants, Georgescu conspired to obtain and sell to the FARC military weapons, including anti-aircraft cannons and rocket propelled grenades, to be used against American personnel and aircraft in Colombia. Having sought to profit from the murder of U.S. officers abroad, Georgescu has now been convicted in the U.S. by a unanimous jury.”
According to the allegations in the indictment, other documents publicly filed in federal court and the evidence introduced at trial:
Between May 2014 and December 2014, Georgescu, a Romania-based weapons broker, conspired with his co-defendants, a former Romanian government official and a former member of the Italian Parliament, to sell an arsenal of weapons, including machine guns and anti-aircraft cannons, to the FARC, with the understanding that the FARC would use the weapons against U.S. personnel in Colombia. During a series of recorded telephone calls and in-person meetings, Georgescu and his co-conspirators agreed to sell the weapons to three confidential sources (CSs), who represented that they were acquiring these weapons for the FARC but were, in fact, working with the Drug Enforcement Administration (DEA). Georgescu and his co-conspirators agreed to provide these weapons to the CSs with the specific understanding that the weapons would be used to kill Americans and, in particular, to shoot down American helicopters and airplanes.
Georgescu first spoke with a CS in May 2014. Thereafter, Georgescu recruited both of his co-conspirators to help obtain the weapons for the CSs, with the understanding that the former Romanian government official would provide weapons expertise and the former Italian Parliament member would help secure fraudulent end-user certificates, in order to make the illegal sale of weapons look legitimate. Georgescu instructed his co-conspirators and others involved in the deal to use encrypted applications when communicating about the weapons deal to avoid detection by U.S. authorities.
Over the course of five consensually-recorded meetings with the CSs in Romania and Montenegro, Georgescu and his co-conspirators provided the CSs with catalogues of weapons that included anti-aircraft cannons, rocket propelled and thermobaric grenades and other high-powered weapons, as well as military-grade optical equipment. During these meetings, the CSs explained that the arms would be used to kill Americans and Georgescu offered his thoughts on what weapons would best suit the FARC’s needs.
Between September 2014 and December 2014, Georgescu and his co-conspirators traveled to Romania, Montenegro, Italy, Germany, Albania, Poland and Bulgaria to advance the weapons deal. During this period, the co-conspirators met with weapons suppliers, obtained sample fraudulent end-user certificates and test-fired military-grade rifles. In December 2014, Georgescu and his co-conspirators secured a signed contract from a European weapons supplier to provide more than $17 million worth of weapons to a straw purchaser. On Dec. 15, 2014, Georgescu met with the CSs, showed them the signed contract and discussed means of payment and transportation of the weapons to Colombia.
Georgescu was arrested by Montenegrin authorities on the charges in the indictment on Dec. 15, 2014, and extradited to the United States on Feb. 25, 2015.
Georgescu was convicted of one count of conspiracy to kill U.S. officers or employees, which carries a maximum sentence of life in prison, and one count of conspiracy to provide material support or resources to a designated foreign terrorist organization, which carries a maximum sentence of 15 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. Georgescu is scheduled to be sentenced by Judge Abrams on Sept. 16, 2016, at 3:00 p.m. EDT.
Assistant Attorney General Carlin joined U.S. Attorney Bharara in praising the outstanding investigative efforts of the DEA’s Special Operations Division, the DEA’s Bucharest Country Office, the DEA’s Rome Country Office, the Montenegrin National Police and the Romanian Authorities. Assistant Attorney General Carlin and U.S. Attorney Bharara also thanked the Department of Justice’s Office of International Affairs.
This case is being prosecuted by Assistant U.S. Attorneys Andrea Surratt and Ilan Graff of the Southern District of New York, with assistance from Trial Attorney Josh Parecki of the National Security Division’s Counterterrorism Section.
International Arms Trafficker Found Guilty in Manhattan Federal Court for Conspiring to Kill Americans and Provide Material Support to A Foreign Terrorist OrganizationRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and John P. Carlin, Assistant Attorney General for National Security, announced that VIRGIL FLAVIU GEORGESCU was convicted today by a jury of conspiring to sell large quantities of military-grade weaponry to the Fuerzas Armadas Revolucionarias de Colombia (the “FARC”) – a designated foreign terrorist organization – to be used to kill Americans in Colombia. GEORGESCU’s conviction followed a 10-day trial in Manhattan before U.S. District Judge Ronnie Abrams.
Manhattan U.S. Attorney Preet Bharara said: “As the jury swiftly found, Virgil Flaviu Georgescu conspired to kill American officers and provide material support to the FARC. In concert with his co-defendants, Georgescu conspired to obtain and sell to the FARC military weapons, including anti-aircraft cannons and rocket propelled grenades, to be used against American personnel and aircraft in Colombia. Having sought to profit from the murder of U.S. officers abroad, Georgescu has now been convicted in the U.S. by a unanimous jury.”
According to the allegations in the Indictment, other documents publicly filed in Manhattan federal court, and the evidence introduced at trial:
Between May 2014 and December 2014, GEORGESCU, a Romania-based weapons broker, conspired with his co-defendants, a former Romanian government official and a former member of the Italian Parliament, to sell an arsenal of weapons, including machine guns and anti-aircraft cannons, to the FARC, with the understanding that the FARC would use the weapons against United States personnel in Colombia. During a series of recorded telephone calls and in-person meetings, GEORGESCU and his co-conspirators agreed to sell the weapons to three confidential sources (the “CSs”), who represented that they were acquiring these weapons for the FARC but were, in fact, working with the Drug Enforcement Administration (“DEA”). GEORGESCU and his co-conspirators agreed to provide these weapons to the CSs with the specific understanding that the weapons would be used to kill Americans and, in particular, to shoot down American helicopters and airplanes.
GEORGESCU first spoke with a CS in May 2014. Thereafter, GEORGESCU recruited both of his co-conspirators to help obtain the weapons for the CSs, with the understanding that the former Romanian government official would provide weapons expertise and the former Italian member of Parliament would help secure fraudulent end-user certificates, in order to make the illegal sale of weapons look legitimate. GEORGESCU instructed his co-conspirators and others involved in the deal to use encrypted applications when communicating about the weapons deal to avoid detection by U.S. authorities.
Over the course of five consensually recorded meetings with the CSs in Romania and Montenegro, GEORGESCU and his co-conspirators provided the CSs with catalogues of weapons that included anti-aircraft cannons, rocket propelled and thermobaric grenades, and other high-powered weapons, as well as military-grade optical equipment. During these meetings, the CSs explained that the arms would be used to kill Americans and GEORGESCU offered his thoughts on what weapons would best suit the FARC’s needs.
Between September 2014 and December 2014, GEORGESCU and his co-conspirators traveled to Romania, Montenegro, Italy, Germany, Albania, Poland, and Bulgaria to advance the weapons deal. During this period, the co-conspirators met with weapons suppliers, obtained sample fraudulent end-user certificates, and test-fired military-grade rifles. In December 2014, GEORGESCU and his co-conspirators secured a signed contract from a European weapons supplier to provide more than $17 million dollars’ worth of weapons to a straw purchaser. On December 15, 2014, GEORGESCU met with the CSs, showed them the signed contract, and discussed means of payment and transportation of the weapons to Colombia.
GEORGESCU was arrested by Montenegrin authorities on the charges in the Indictment on December 15, 2014, and extradited to the United States on February 25, 2015.
* * *
GEORGESCU, 43, of Romania, was convicted of one count of conspiracy to kill United States officers or employees, which carries a maximum sentence of life in prison, and one count of conspiracy to provide material support or resources to a designated foreign terrorist organization, which carries a maximum sentence of 15 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. GEORGESCU is scheduled to be sentenced by Judge Abrams on September 16, 2016, at 3:00 p.m.
Mr. Bharara praised the outstanding investigative efforts of the DEA’s Special Operations Division, the DEA’s Bucharest Country Office, the DEA’s Rome Country Office, the Montenegrin National Police, and the Romanian Authorities. Mr. Bharara also thanked the Counterterrorism Section of the Department of Justice’s National Security Division and the Department of Justice’s Office of International Affairs.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Andrea Surratt and Ilan Graff are in charge of the prosecution, with assistance from Trial Attorney Josh Parecki of the Counterterrorism Section.
Indictments Unsealed Charging 36 in Sumter in Cocaine Trafficking ConspiracyRead the Press Release
Contact Person: JD Rowell (803) 929-3000
United States Attorney Bill Nettles advised today that the Columbia Violent Gang Task Force (CVGTF), of which the City of Sumter is a member, arrested several defendants who are charged in 3 separate indictments charging a conspiracy to possess with intent to distribute and to distribute cocaine and crack cocaine in the midlands of South Carolina. All defendants who were arrested today in connection with the unsealing of these indictments will make their initial appearances at the Mathew J. Perry Federal Courthouse in Columbia, South Carolina, tomorrow at 10:00 am before the Honorable Paige J. Gossett, United States Magistrate Judge.
The arrests today mark the next step in the CVGTFs efforts to combat violent crime linked to drug trafficking in the Sumter and Columbia areas of South Carolina.
This investigation began over a year ago when FBI, DEA and City of Sumter Task Force Officers targeted the cocaine sources of supply who were selling cocaine to the defendants referenced above. Agents and Task Force Officers previously conducted arrest operations on June 16, 2015, and October 20, 2015. As of the date of today’s takedown, this investigation has resulted in the seizure of over 9 kilograms of powder cocaine, the seizure of almost $900,000.00, the seizure of 8 firearms that were used in furtherance of drug trafficking, and convictions/guilty pleas of 14 defendants who were previously arrested and prosecuted in connection with this investigation. Agents have learned that this group was directly responsible for the distribution of well over 150 kilograms (wholesale value of $6,000,000.00) of cocaine in Sumter and Richland Counties during the time frame of the conspiracy.
To date, the following defendants have entered guilty pleas to drug trafficking conspiracy charges and/or money laundering offenses:
JUAN PABLO CONTRERAS
a/k/a Juan David Montoya
EDUARDO ESAID CONTRERAS-REYES
MARCO ANTONIO CASTRO
a/k/a “Chino”
JAVIER TOSCANO-SERRANO
PATAR ONEAL MONTGOMERY
a/k/a Patrick Montgomery
a/k/a “Dink”
a/k/a “Dinky”
ANDRE LEWAYNE BROOKS
JIMMY TONY MCDOWELL
a/k/a “Jimmy Fingers”
JERMAINE TERRELL HILTON
a/k/a “Fifty”
MICHAEL ANTONIO FLOYD
a/k/a “Tony”
a/k/a “Tone”
a/k/a “Fat Tony”
RAYSHON JAMAAL FOSTER
a/k/a “Shon”
a/k/a “Terry Brown
DONALD ANTWON DINGLE
a/k/a “Red”
a/k/a “Flash”
COREY EMANUEL WHITE
a/k/a “Chopper”
a/k/a “Choppa”
a/k/a “El Chop”
HAROLD MATTHEW MCFADDEN
BRYANT CHRISTOPHER FORD
This case is yet another example of the fine work being done by Federal, State and local law enforcement agencies working together in South Carolina.
The CVGTF is consists of the following agencies:
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Federal Bureau of Investigation, SAC David A. Thomas, [email protected]
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South Carolina Law Enforcement Division, Chief Mark Keel, [email protected]
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Columbia Police Department, Chief Skip Holbrook [email protected]
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Richland County Sheriff’s Department, Sheriff Leon Lott [email protected]
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Sumter Police Department, Chief Russell Roark [email protected]
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South Carolina Army National Guard Counterdrug Unit, LTC Walter Ginn, [email protected]
The United States Attorney stated that all charges in these indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Illegal Alien from Mexico Sentenced for Leading Alien Smuggling Ring Resulting in DeathRead the Press Release
CORPUS CHRISTI, Texas – A 24-year-old illegal alien from Mexico has been ordered to federal prison for transporting illegal aliens, announced U.S. Attorney Kenneth Magidson. Juan Diego Lozano-Salgado pleaded guilty March 2, 2016, to transporting undocumented aliens on Dec. 13, 2015.
Today, U.S. Senior District Judge Hayden Head sentenced Lozano-Salgado to 60 months in federal prison. Not a U.S. citizen, he is expected to face deportation proceedings following his release from prison.
Lozano-Salgado was responsible for coordinating the transportation of illegal aliens from the brush north of the Border Patrol checkpoints to Houston. His role included being a foot guide through the brush and coordinating the pick-up of the aliens by vehicle on Highway 281 near Falfurrias.
On the evening of Dec. 13, 2015, a group of aliens Lozano-Salgado guided entered a pick-up truck near Brooks County and travelled North on U.S. Highway 281. A total of 14 people including Lozano-Salgado were in the pick-up, both in the interior cab and in the bed. Law enforcement spotted the truck and attempted to conduct a traffic stop, at which time the truck sped off in an attempt to elude capture. Shortly thereafter, officers in the area responded to a vehicle accident where it was discovered that the truck had left the road and had hit a tree in a head-on collision. The driver and one passenger had been pronounced dead at the scene and several others were transported to area hospitals. Twelve additional subjects were later determined to be unlawfully present in the United States. The deceased passenger still remains unidentified.
Lozano-Salgado will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation along with the Texas Department of Public Safety, U.S. Border Patrol and the Brooks County Sherriff’s Office. Assistant U.S. Attorney Brittany L. Jensen is prosecuting the case.
Illegal Alien from Mexico Sentenced for Leading Alien Smuggling Ring Resulting in DeathRead the Press Release
CORPUS CHRISTI, Texas – A 24-year-old illegal alien from Mexico has been ordered to federal prison for transporting illegal aliens, announced U.S. Attorney Kenneth Magidson. Juan Diego Lozano-Salgado pleaded guilty March 2, 2016, to transporting undocumented aliens on Dec. 13, 2015.
Today, U.S. Senior District Judge Hayden Head sentenced Lozano-Salgado to 60 months in federal prison. Not a U.S. citizen, he is expected to face deportation proceedings following his release from prison.
Lozano-Salgado was responsible for coordinating the transportation of illegal aliens from the brush north of the Border Patrol checkpoints to Houston. His role included being a foot guide through the brush and coordinating the pick-up of the aliens by vehicle on Highway 281 near Falfurrias.
On the evening of Dec. 13, 2015, a group of aliens Lozano-Salgado guided entered a pick-up truck near Brooks County and travelled North on U.S. Highway 281. A total of 14 people including Lozano-Salgado were in the pick-up, both in the interior cab and in the bed. Law enforcement spotted the truck and attempted to conduct a traffic stop, at which time the truck sped off in an attempt to elude capture. Shortly thereafter, officers in the area responded to a vehicle accident where it was discovered that the truck had left the road and had hit a tree in a head-on collision. The driver and one passenger had been pronounced dead at the scene and several others were transported to area hospitals. Twelve additional subjects were later determined to be unlawfully present in the United States. The deceased passenger still remains unidentified.
Lozano-Salgado will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation along with the Texas Department of Public Safety, U.S. Border Patrol and the Brooks County Sherriff’s Office. Assistant U.S. Attorney Brittany L. Jensen is prosecuting the case.
INTERPOL Washington's Media Outreach Event 2016Read the Press Release
On May 24, 2016, INTERPOL Washington Director Geoffrey S. Shank held a media briefing where correspondents from the national news networks received information regarding INTERPOL Washington. The correspondents were given the opportunity to field questions regarding INTERPOL and INTERPOL Washington, and the event concluded with the correspondents receiving a tour of the INTERPOL Operations and Command Center.
To hear the interview conducted by NPR with Director Shank, please click here
Huntsville Man Indicted for Bank Fraud and Aggravated Identity TheftRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted a Huntsville man on fraud and aggravated identity theft charges in connection with a scheme to steal and counterfeit business checks in November and December 2014, announced U.S. Attorney Joyce White Vance and U.S. Postal Inspector Frank Dyer.
An eight-count indictment filed in U.S. District Court charges that BERNARD EUGENE MCKINNEY II, 28, with the aid of others, counterfeited legitimate business checks that had been stolen from the U.S. mail, changed the payee names to himself or others, and then cashed the checks at north Alabama BBVA Compass Bank branches.
According to the indictment, McKinney would obtain stolen business checks or counterfeit checks. He would then forge the signature of the person who signed the original checks, which were used to make counterfeits, and/or change the name of the payee to his or other peoples’ names on the stolen business checks. McKinney would then cash, or assist others in cashing, the counterfeit checks and get cash for his personal use, thereby exposing the banks to financial loss.
The indictment’s six fraud counts list six fraudulent checks totaling nearly $53,000 cashed at BBVA branches.
The maximum penalty for bank fraud is 30 years in prison and a $1 million fine. The penalty for aggravated identity theft is a minimum two-year prison sentence served consecutively with any penalty imposed for a related crime, and a maximum $250,000 fine.
The U.S. Postal Inspection Service investigated the case, which Assistant U.S. Attorney David H. Estes is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Houma Postal Worker Pleads Guilty to Theft of MailRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ELVIRA DUTHU DUPLANTIS, age 51, of Houma, pled guilty today for theft of mail.
According to court records, as a result of a complaint from the Postmaster of the Houma Post Office regarding missing mail, the United States Postal Service, Office of Inspector General (“Postal OIG”) initiated an investigation into DUPLANTIS, who was a letter carrier assigned to the Houma Post Office. The investigation determined that DUPLANTIS stole approximately 113 gift cards, which included Visa debit cards and gift cards for major retail stores and restaurants, with a total value of over $3,200.
DUPLANTIS faces a maximum penalty of five (5) years imprisonment, followed by up to three (3) years of supervised release, and a $250,000 fine. U.S. District Judge Kurt D. Engelhardt set sentencing for August 24, 2016.
U.S. Attorney Polite praised the work of the United States Postal Service, Office of Inspector General, for investigating this matter. Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba is in charge of the prosecution.
Honduran National Sentenced for Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ORLI DAGOBERTO ARGUETA-SANCHEZ, a/k/a "Orli Dagoberto Argueta," age 27, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Bill of Information for illegal reentry of removed alien.
U.S. District Judge Ivan L.R. Lemelle sentenced ARGUETA-SANCHEZ to time served, one (1) year supervised release and $100 mandatory assessment. ARGUETA-SANCHEZ will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.
According to court records, on or about January 6, 2016, ARGUETA-SANCHEZ was found illegally present in the United States after having been officially deported and removed on or about November 7, 2008.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Honduran Man Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that HECTOR ORLANDO RECATE-REYES, age 30, a citizen of Honduras, was sentenced today after previously pleading guilty to illegal reentry of a removed alien.
U.S. District Judge Ivan L.R. Lemelle sentenced RECATE-REYES to time served, to be followed by one year on supervised release. RECATE-REYES will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court records, RECATE-REYES reentered the United States after having been previously deported on August 8, 2012.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U S. Attorney Spiro G. Latsis is in charge of the prosecution.
Hingham Woman Pleads Guilty to Mortgage FraudRead the Press Release
BOSTON – A Hingham woman pleaded guilty today in U.S. District Court in Boston to defrauding mortgage companies in connection with multiple mortgages she obtained on a single residence.
Denise Bruce, 56, pleaded guilty to five counts of bank fraud. U.S. District Court Senior Judge Douglas P. Woodlock scheduled sentencing for Aug. 18, 2016.
Between 2004 and 2008, Bruce fraudulently obtained five mortgage loans from different banks in amounts ranging from $325,000 to $487,500 on her Hingham property by submitting false information regarding her employment history, income, assets, and debt. Bruce also filed fraudulent discharges of mortgages with the Plymouth County Registry of Deeds to create the appearance that earlier loans had been paid in full, when in fact, none of the loans had been paid. In total, Bruce obtained $2,129,000 in proceeds from her fraudulent loans.
United States Attorney Carmen M. Ortiz; Steven Perez, Special Agent in Charge of the Federal Housing Finance Agency, Office of Inspector General, Northeast Region; and Christy Goldsmith Romero, Special Inspector General for the Office of the Special Inspector General for the Troubled Asset Relief Program, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Victor A. Wild of Ortiz’s Economic Crimes Unit.
Heroin Dealer Pleads Guilty Drug Trafficking and Firearm ChargesRead the Press Release
NORFOLK, Va. – Michael Lanell Easley, Jr., 36, of Portsmouth, pleaded guilty today to conspiracy to distribute and possess with intent to distribute heroin and possession of firearms in furtherance of drug trafficking.
According to court documents, Easley was the subject of an undercover buy operation. He maintained a residence on Riverview Avenue in Portsmouth for the purpose of manufacturing and distributing heroin. On Nov. 23, 2015, federal agents and state law enforcement officers attempted to execute an arrest and search warrant related to Easley. As the agents and officers approached Easley, he ingested a significant amount of heroin. In an effort to save Easley’s life, an ambulance was called and he was rushed to the hospital. Easley came close to cardiac arrest several times during the trip, but doctors were able to stabilize him and he survived.
During the search of Easley’s home, agents and officers recovered heroin and a .45 caliber semi-automatic handgun. They also recovered digital scales and strainers commonly used to prepare heroin for sale.
Easley will be sentenced on September 21 and faces a maximum penalty of life in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and James A. Cervera, Chief of Police, Virginia Beach Police Department, made the announcement after Magistrate Judge Douglas E. Miller accepted the plea. The case is being prosecuted by Assistant U.S. Attorneys Joseph E. DePadilla and Andrew C. Bosse, and Special Assistant U.S. Attorney John F. Butler.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-44.
Grand Jury Returns Indictment Charging West Valley Man in Connection with Alleged Forgery, Identity Theft SpreesRead the Press Release
SALT LAKE CITY – A federal grand jury returned a 31-count indictment Wednesday morning charging Kevin Russell Humphreys, age 35, of West Valley City with multiple violations of federal law in connection with alleged forgery and identity theft crime sprees in 2013 and 2015 in Salt Lake County.
The indictment alleges 21 counts of bank fraud for his alleged attempts to defraud banks by cashing stolen and forged checks.
The first six bank fraud counts relate to Humphreys’ alleged efforts to obtain, typically via theft of mail, identifications and checks belonging to other people or organizations. He then forged checks in various amounts, made checks payable to people whose identities he illegally possessed or forged, and then cashed or attempted to cash the checks at various financial institutions in Salt Lake County. The amount of money involved in the bank fraud alleged in these six counts is $19,531.10.
The remaining 15 bank fraud counts relate to lines of credit Humphreys applied for and received using personal identifiers that belonged to other people. He received $93,300 in credit based on the alleged fraud in the 15 counts. Because he didn’t use all of the credit, actual losses to the banks were about $6,448.70.
Three counts in the indictment allege fraud in relation to Treasury securities in connection with three stolen U.S. Treasury checks. Humphreys is also charged with five counts of aggravated identity theft; one count of access device fraud for his alleged use of a credit card belonging to a person identified in the indictment as S.P. The indictment alleges Humphreys used the card at various locations in Salt Lake County, accumulating $4,464.16 in charges.
The final count of the indictment alleges possession of stolen mail in connection with one of the Treasury checks.
The maximum potential penalty for each count of bank fraud is 30 years in prison. The counts alleging fraud in relation to Treasury securities and access device fraud have potential sentences of 10 years and mail fraud is up to five years. Aggravated identity theft carries a minimum-mandatory sentence of two years per count, and can be added to the end of any sentence imposed on other counts. Humphreys is currently in state custody. A federal arrest warrant will be issued based on the charges in the indictment.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
The Utah Identity Theft Task Force case is being prosecuted by the U.S. Attorney’s Office in Utah. It is being investigated by task force officers with the Unified Police Department’s Kearns/Magna Precinct and Inspectors with the U.S. Postal Inspection Service. The investigation also included significant investigative efforts by detectives with the Draper Police Department and the UPD’s Midvale Precinct.
Gang Member Convicted of Making False Statements at the Jamal Dean SentencingRead the Press Release
A member of the same gang as Jamal Dean, who made false statements while testifying as a witness at the sentencing of Jamal Dean, was convicted by a jury on April 12, 2016, after a two-day trial in federal court in Sioux City.
Cesar Ramos, age 27, from Sioux City, Iowa was convicted of three counts of making false material declarations. The verdict was returned following about one hour of jury deliberations.
The evidence at trial revealed the following facts. Ramos and Jamal Dean were in the same gang and Jaime Espinoza was in another gang. After Espinoza was shot, Ramos – according to statements he gave to investigators – drove Jamal Dean away from near the scene of the shooting. When he was asked about these observations at the sentencing of Jamal Dean, however, he feigned a memory lapse repeatedly answering: “I don’t remember.” The jury found these answers were made under oath, were false, that Ramos knew they were false, and were material to district court’s sentencing inquiry; and, therefore, constituted perjury.
Sentencing before United States District Court Judge Lenard T. Strand will be set after a presentence report is prepared. Ramos remains in custody of the United States Marshal pending sentencing. Ramos faces a possible maximum sentence of 5 years’ imprisonment, a $250,000 fine, $100 special assessment, and up to three years of supervised releases following any imprisonment, on each of the three charges.
The case was investigated by the Sioux City Police Department and the United States Department of Justice – Bureau of Alcohol Tobacco Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Forde Fairchild
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-4058.
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Four Men Indicted for Trafficking Methamphetamine in North AlabamaRead the Press Release
BIRMINGHAM – A federal grand jury today indicted four men on charges of trafficking methamphetamine in north Alabama. The indictment follows the four men’s arrest last week and the seizure of more than 23 pounds of methamphetamine, announced U.S. Attorney Joyce White Vance and Drug Enforcement Administration Assistant Special Agent in Charge Clay A. Morris.
An indictment filed in U.S. District Court charges ALFREDO LIZARRAGA ALARCON, 43, of Cleveland, Ala., FRANCISCO ALVAREZ “Edgar Alarcon” MONTES, 55, of Birmingham, DANIEL MORA “Moralejos” GONZALEZ, 43, of Tarrant, and GUILLERMO OLEA PEREZ, 44, of Phoenix, Ariz., with conspiring to distribute 500 grams or more of methamphetamine in Jefferson County and elsewhere in north Alabama between January 2014 and May 2016. Alarcon, Montes and Gonzalez are all Mexican nationals, and Perez is a Cuban national.
The indictment also charges various defendants with specific distribution counts. Those counts are as follows:
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Alarcon and Gonzalez, distributing 50 grams or more of methamphetamine in Jefferson County on May 3;
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Alarcon and Montes, distributing 50 grams of methamphetamine on May 17 in Jefferson County;
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Alarcon, Montes and Perez, possessing with intent to distribute 500 grams or more of methamphetamine on May 18 in Jefferson and Blount counties;
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Gonzalez, possessing with intent to distribute 50 grams or more methamphetamine on May 18 in Jefferson County.
The indictment contains 26 counts of using a telephone to facilitate a drug-trafficking crime. All of the telephone counts include Alarcon, 14 include Montes and four include Gonzalez.
The conspiracy charge and the possession with intent to distribute more than 500 grams of methamphetamine both carry a penalty of 10 years to life in prison and a maximum $10 million fine. The charges involving distributing 50 grams or more of methamphetamine carry a penalty of five to 40 years in prison and a maximum $5 million fine.
The charge of using a telephone to facilitate a drug-trafficking crime carries a maximum penalty of four years in prison and a $250,000 fine for each count.
DEA investigated the case, which Assistant U.S. Attorney Austin D. Shutt is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Four Individuals Sentenced to Prison for International Fraud and Money Laundering Scheme Involving Sale of GoldRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Michael Skillern (49, Houston, Texas) to 10 years’ imprisonment, Jon Craig Nelson (69, Houston, Texas) to 8 years’ imprisonment, Naadir Cassim (40, Barcelona, Spain and Orlando, Florida) to 5 years’ imprisonment, and Adriana Maria Camargo, a/k/a Adriana Palomino (37, Barcelona, Spain) to 2 years’ imprisonment for conspiracy, money laundering conspiracy, and mail fraud. Some were also sentenced for wire fraud and illegal monetary transactions. The Court also ordered Cassim and Camargo to pay a money judgment of approximately $3.3 million. Nelson and Skillern were ordered to pay a money judgment of approximately $7.3 million, the proceeds of the charged criminal conduct.
These individuals were convicted on February 3, 2016.
According to testimony and evidence presented at trial, from August 2011 through February 2014, Cassim, Nelson, Skillern, and Camargo, along with others, engaged in a fraud scheme where they directed and caused the sale of purported but nonexistent gold ore or gold doré from mines owned or controlled by them, through a company called OWN GOLD, LLC. The conspirators then caused victims to wire funds to bank accounts controlled by them. The conspirators used the victims' funds to perpetuate the scheme and for their own personal enrichment. Trial evidence established that approximately 440 victims wired over $7.3 million to the conspirators during the course of the fraud scheme.
“The dismantling of this transnational criminal organization is the result of international law enforcement agencies working together,” said Susan L. McCormick, special agent in charge of HSI Tampa. “HSI will continue to leverage our unique international authority to protect victims and bring criminals to justice.”
The case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the U.S. Secret Service, with assistance from the City of London Police, Spanish National Police, and U.S. Department of Interior’s Bureau of Land Management. It was prosecuted by Assistant United States Attorneys Sara C. Sweeney and Rachelle DesVaux Bedke.
Former University of Miami Director of Finance Pleads Guilty to Tax Evasion ChargesRead the Press Release
A former University of Miami Director of Finance pled guilty to tax evasion charges for failing to report to the Internal Revenue Service (IRS) $2.3 million that she embezzled from the university.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Kimberly Jean Miller, 58, pled guilty to four counts of tax evasion, in violation of Title 26, United States Code, Section 7201.
According to court documents, from 2002 until 2012, Miller was the director of finance at the University of Miami's Rosensteil School of Marine and Atmospheric Science (RSMAS). The defendant's job responsibilities included overseeing the payment of RSMAS's vendor invoices. Between 2002 and 2012, Miller used her authority at RSMAS to embezzle $2.3 million from the University of Miami by falsifying invoices from a vendor called International Assets. Specifically, Miller altered the International Assets invoices so that the company name would appear as "Inter, Inc." and the checks would be mailed back to RSMAS, instead of to International Assets directly. Miller then deposited the "Inter, Inc." checks into a business bank account in the name Intercontinental Oceans, Inc., a company Miller opened in 1993.
Between 2008 and 2011, Miller prepared her own tax returns and knowingly failed to report to the IRS the money she had unlawfully obtained through her embezzlement scheme. Miller owes the IRS an additional $329,020 in income taxes for her 2008 through 2011 tax returns.
Sentencing is scheduled for August 16, 2016 before U.S. District Judge Robert N. Scola, Jr. At sentencing, Miller faces a maximum statutory sentence of five years in prison per count.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Amanda Perwin.
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.
Former Town Manager Pleads Guilty to Bank FraudRead the Press Release
ABINGDON, VIRGINIA – The former town manager of the Town of Coeburn, who admitted to applying for and receiving credit in the town’s name, pled guilty earlier this week in the United States District Court for the Western District of Virginia in Abingdon, announced United States Attorney John P. Fishwick Jr.
Loretta Ilene Mullins Mays, 48, of Coeburn, Virginia, waived her right to indictment and pled guilty earlier this week to a one count Information charging her with bank fraud. In addition to restitution to be paid to the credit card companies, Mays agreed to pay $20,313 in restitution to the Town of Coeburn.
“This defendant was trusted by the Town of Coeburn to serve with integrity and instead used her position to enrich herself,” United States Attorney John P. Fishwick Jr. said today. “When public officials abuse the power placed in them the citizens it is imperative we hold them accountable.”
Mays was the Town Manager for the Town of Coeburn, Virginia from March 27, 2006 to February 14, 2013.
On April 24, 2006, Mays fraudulently applied for a Bank of America Business Visa credit card in the name of the Town of Coeburn when, in fact, Mays had no intent to use the card for Town of Coeburn business. To keep her fraudulent activity hidden from town employees and Bank of America, Mays did not use the Town’s address on the application, but instead used her own address. After receiving the card, Mays used the card to obtain a $10,000 cash advance on the card and subsequently used the card for personal expenses resulting in a total of more than $30,000 in fraudulent cash advances and purchases.
Mays admitted earlier this week to obtaining two additional Bank of America credits cards in the name of the Town of Coeburn that she used for personal expenses, as well as a BB&T credit card in the name of the Town of Coeburn that was also used for personal expenses. In total, Mays fraudulently received over $60,000 in cash advances and purchases.
The investigation of the case was conducted by the Virginia State Police and the Federal Bureau of Investigation with assistance provided by the Dickenson County Commonwealth’s Attorney’s Office. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Former NBA Player Indicted on Charity Fraud SchemeRead the Press Release
A federal grand jury sitting in Kansas City, Missouri, returned an indictment Monday, which was unsealed this morning, against a former professional basketball player and representative for the National Basketball Players Association (NBPA), charging him with corruptly interfering with the internal revenue laws, conspiracy to commit wire fraud, obstruction of justice and aggravated identity theft, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Tammy Dickinson of the Western District of Missouri.
The indictment alleges that Kermit Alan Washington, 64, used a charity he founded and operated, Project Contact Africa (PCA), to defraud donors, eBay and PayPal and the Internal Revenue Service (IRS). In order to induce individuals, including former professional athletes, to make donations to PCA, Washington falsely represented that 100 percent of the donations would go to Africa. However, Washington diverted charitable donations from PCA to buy gifts and pay personal expenses, including rent, vacations, jewelry and entertainment.
“Individuals who use charitable organizations to defraud donors and evade tax obligations inflict substantial harm on every U.S. taxpayer and cause untold damage to well-intentioned charitable endeavors,” said Acting Assistant Attorney General Ciraolo. “The Department is committed to identifying those engaged in such criminal conduct and holding them accountable.”
“The federal indictment alleges this former NBA player used his celebrity status to exploit the good intentions of those who donated to a charity he founded, called Project Contact Africa,” said U.S. Attorney Dickinson. “According to the indictment, Washington profited by diverting hundreds of thousands of dollars in donations that was supposed to benefit a clinic in Africa for needy families and children, but instead bankrolled his own personal spending.”
It is alleged that Washington referred professional athletes to Ron Mix, a former professional football player and an attorney licensed in the state of California, whose practice focused on the filing of workers’ compensation claims on behalf of former professional athletes. In exchange for the referrals, Mix made payments to PCA and claimed those amounts as charitable deductions on his personal tax returns. Upon receipt of these payments, Washington diverted the funds for his own personal benefit. Washington filed false individual income tax returns for 2010 through 2013, failing to report the funds he diverted from PCA and false Forms 990-EZ on behalf of PCA. Washington also falsified PCA’s corporate minutes to obstruct the investigation and used the identity of another individual to perpetrate this scheme.
It is further alleged that Washington conspired with others to defraud eBay and PayPal, customers and donors of PCA by allowing the co-conspirators to use PCA’s name, tax-exempt status and IRS Employee Identification Number (EIN) with eBay and PayPal so the co-conspirators could avoid substantial listing and registration fees incurred in operating online, for-profit businesses. Moreover, customers who made purchases falsely believed that 100 percent of the proceeds from the co-conspirators’ online eBay sales benefited PCA. In exchange for allowing the co-conspirators to use PCA’s tax-exempt status, Washington received payments from the co-conspirators.
Washington was arrested yesterday in Los Angeles and had his initial appearance in U.S. District Court in the Central District of California. Washington was ordered to surrender his passport and released on bond and must wear a location monitoring device. Washington’s next court date is tentatively scheduled on June 16 before U.S. Magistrate Judge John T. Maughmer in the Western District of Missouri.
If convicted, Washington faces a statutory maximum sentence of three years in prison on the charge of corrupt interference with the internal revenue laws, 20 years in prison on the charge of conspiring to commit wire fraud, 20 years in prison on the charge of obstruction and a mandatory sentence of two years in prison for the charge of aggravated identity theft, which will be in addition to any other term of imprisonment he receives. He also faces supervised release, a maximum fine of $250,000 on each count and restitution.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Dickinson commended special agents of IRS-Criminal Investigation, Immigration and Customs Enforcement’s Homeland Security Investigations, who investigated the case and Assistant U.S. Attorneys Patrick Daly and Curt Bohling of the Western District of Missouri, and Trial Attorney Ryan Raybould of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Miami-Dade Police Department Officer Convicted of Wire FraudRead the Press Release
Following an eight-day trial, a jury before United States District Judge Jose E. Martinez convicted Rafael Duran, a former police officer with the Miami-Dade Police Department (MDPD), of one count of conspiracy to commit wire fraud and seven counts of wire fraud. Duran had been employed as an officer with the MDPD from May 1994 until March 2016, when the MDPD terminated him following his 2015 indictment in this case.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge of the Miami Field Office of the Federal Bureau of Investigation (FBI), and Juan J. Perez, Director of the MDPD, made the announcement.
Duran’s offenses arose out of his use of his position as an officer with the MDPD to facilitate a fraud scheme operating out of a local credit repair company. The credit repair company would attempt to repair the credit histories and credit scores of its customers by making false claims to the major credit reporting bureaus that its customers had been victims of identity theft.
In 2010, Duran was assigned to as a detective on the MDPD’s Mortgage Fraud Task Force, which was part of the Economic Crimes Bureau. The evidence at trial showed that between April 2010 and June 2010, Duran wrote 10 offense-incident reports in which he falsely claimed that customers of the credit repair company had reported to him that they had been victims of identity theft. However, the customers never made the reports, and Duran never met with them. Moreover, the alleged victims in the reports written by Duran had not been victims of identity theft. Duran also wrote a false identity theft report for an employee of the credit repair company.
After completing the false police reports, Duran delivered them to the credit repair company, which sent them to the major credit reporting bureaus, along with letters that mirrored the false claims in Duran’s police reports. As a result of Duran’s false police reports, several customers of the credit repair companies obtained commercial lines of credit which subsequently went into default.
Duran also falsified identity theft reports for both himself and a family member. However, Duran put those reports in the name of a fellow detective without telling the detective. Duran delivered the reports to the credit repair company so that it could attempt to remove derogatory items from their credit histories through false claims of identity theft.
Duran had the credit repair company use the false police report in his name to try to remove from his credit repair history a $210,000 mortgage on a condominium in Naples, FL. The mortgage had not been the product of any identity theft. Rather, Duran had taken out the mortgage in June 2007 and stopped making payments on the mortgage sometime in 2008.
Following the verdict, the Court revoked the defendant’s bond and remanded him into custody. The Court set Duran’s sentencing for July 26, 2016, at 1:30 pm. Duran faces a maximum sentence per count of twenty years imprisonment and a $250,000 fine.
Mr. Ferrer expressed appreciation for the investigative efforts of the FBI Miami Area Public Corruption Task Force and the Professional Compliance Bureau of the Miami-Dade Police Department. This case is being prosecuted by Assistant U.S. Attorneys Michael Davis and Ilham Hosseini.
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.
Former Chief Financial Officer of Company Receiving Federal Funds and Contractor for That Company Charged with Bribery, Fraud, and Other Offenses in 47-Count IndictmentRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announces that a federal grand jury in Wilmington returned a 47 count Indictment on Tuesday, May 24, 2016.
The superseding Indictment charged WILLIAM ROBERT CANUPP, the Chief Financial Officer for a company that is the local manager of the public sector behavioral health system for several counties in eastern North Carolina, and RONNIE L DAVIS, a contractor, with Conspiracy, Bribery, Organization Fraud, and Wire Fraud. It also charged CANUPP with money laundering.
If convicted of Count 1 (Conspiracy), the defendants face a maximum imprisonment of 5 years. Each of counts 2-37 and count 47 carries a maximum imprisonment term of 10 years. Each of counts 38-46 carries a maximum imprisonment term of 20 years. The Indictment also seeks forfeiture of proceeds traceable to the offenses charged, including gross proceeds of $577,595.
The charges and allegations contained in the indictment are merely accusations. The defendants are considered innocent unless and until proven guilty in a court of law.
The case is being investigated by the Federal Bureau of Investigation (FBI), the Internal Revenue Service - Criminal Investigation (IRS-CI), the United States of Department of Health and Human Services, Office of Inspector General (HHS-OIG), and the United States Department of Housing and Urban Development, Office of Inspector General (HUD-OIG).
"These allegations are serious because people trusted with the resources to care for others should not use that access to defraud the healthcare system. The FBI will work tirelessly to ensure federal funding is spent in an appropriate and legal manner,” said John Strong, Special Agent in Charge of the FBI in North Carolina.
"As alleged, embezzling hundreds of thousands of taxpayer dollars meant for crucial federal and state programs to include care for mentally ill and developmentally disabled patients just to enrich yourself is a serious betrayal of trust," said Special Agent in Charge Derrick L. Jackson. "HHS/OIG is dedicated to ensuring the integrity of taxpayer-funded programs and we will aggressively pursue executives who steal from vulnerable beneficiaries."
“The theft and subsequent concealment allegedly perpetrated by Canupp and Davis are prime examples of the extraordinary lengths individuals go to in order to steal and launder their ill-gotten gains,” said Thomas J. Holloman, III, Special Agent in Charge, IRS Criminal Investigation. “This indictment contains serious allegations, and IRS Criminal Investigation is committed to the pursuit of such criminal activity, that would harm any business, but in this case one that provides valuable service for those in need.”
“At such a critical time for a Department with programs that are vital to the well-being of the less fortunate in our nation, it is all the more important that those entrusted to public service are completely committed to those in need,” said Nadine E. Gurley, Special Agent in Charge of the Department of Housing and Urban Development Office of Inspector General. “The recipients of our funding deserve honest and efficient service and, in this case, have allegedly been let down by individuals who were supposed to be devoted to their best interests.”
Former Bank CEO Sentenced to 18 Months for Obstructing an Examination by the Federal Reserve BoardRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of TIMOTHY PAUL OWENS, 55, to 18 months in federal prison for obstructing an examination by the Board of Governors of the Federal Reserve (Federal Reserve Board). OWENS was indicted on December 15, 2014, and pleaded guilty on July 30, 2015. He was sentenced today before Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minn.
“Mr. Owens’ obstruction of a Federal Reserve Board examination is the type of criminal conduct that harms federal regulators’ ability to appropriately supervise banking institutions,” said Mark Bialek, Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau. “Today’s sentencing is another step in a joint effort with our law enforcement partners to hold accountable those who undermine the integrity of the examination process.”
“The integrity of the examination process is central to ensuring the safety and soundness of the nation’s banking system,” said Fred W. Gibson, Jr., Acting Inspector General for the Federal Deposit Insurance Corporation. “When a bank official misuses his position of trust to obstruct that process, he needs to be held accountable. The Federal Deposit Insurance Corporation Office of Inspector General is pleased to have joined the U.S. Attorney’s Office and our law enforcement colleagues in assisting with this case and bringing about today’s sentencing of Mr. Owens.”
“This case is a perfect example of how well various law enforcement agencies in Minnesota work together to combat financial crimes,” said Assistant U.S. Attorney Robert Lewis. “Agents from OIG and FBI worked together to get to the bottom of Mr. Owens’ conduct. That level of cooperation makes these prosecutions possible.”
According to the defendant’s guilty plea and documents filed in court, OWENS served as CEO and Chairman of Voyager Bank (“Voyager”) and the President and CEO of Voyager Financial Services Corporation (“VFSC”). In June 2009 the Federal Reserve Board (“FRB”) conducted an examination of VFSC, focusing specifically on loans made to VFSC insiders, including OWENS. During the examination, FRB representatives found that VFSC had issued four direct loans to OWENS, totaling more than $5.4 million, and had purchased participation in a letter of credit (“LOC”), worth $7.5 million, obtained by OWENS from another bank.
According to the defendant’s guilty plea and documents filed in court, the FRB formally demanded in writing that the VFSC Board of Directors review OWENS’ loans and submit documentation showing that the loans to OWENS had been reviewed by the Board of Directors and were consistent with existing bank policies. On July 7, 2009, OWENS received the letter from the FRB, but did not disclose it to the VFSC board, and secretly prepared a response that was false and misleading. OWENS’ response to the FRB stated that the VFSC board had reviewed the loans, that OWENS had only three loans and had exclusive access to a $3.6 million family trust, that the board had approved his loans pursuant to a revised loan policy, and that OWENS was reducing his overall debt levels. In addition, OWENS submitted a false and misleading three-page “Policy Statement” that had not been approved by the VFSC board; he also submitted documents that inaccurately portrayed his financial circumstances and ability to repay his loans by exaggerating his wealth and concealing his liabilities.
This case is the result of an investigation conducted by the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau; the Federal Deposit Insurance Corporation, Office of Inspector General; the Federal Housing Finance Agency, Office of Inspector General; and the Federal Bureau of Investigation.
The Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau provides independent oversight to improve their programs and operations and to prevent and detect fraud, waste, and abuse.
Assistant U.S. Attorney Robert Lewis prosecuted this case.
Defendant Information:
TIMOTHY PAUL OWENS, 55
Wayzata, MN
Convicted:
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Obstructing Examination of a Financial Institution, 1 count
Sentenced:
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18 months in federal prison
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2 years supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
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Forest Grove Man Convicted of Foreign Sex Tourism and Child Pornography Charges Following Jury TrialRead the Press Release
PORTLAND, Ore. – Billy J. Williams, United States Attorney for the District of Oregon, announced that a federal jury in Portland found Steven Douglas Rockett, 47, of Forest Grove, guilty of producing child pornography outside of the United States, engaging in illicit sexual conduct in a foreign country, five counts of producing or attempting to produce child pornography, and possession of child pornography. U. S. District Judge Michael H. Simon presided over the seven day trial, which concluded on May 24, 2016. It is the first foreign sex tourism trial held in Oregon. A sentencing hearing is scheduled for August 30, 2016.
The evidence presented at trial established that Rockett traveled to the Philippines, where he sexually abused Filipino children, and produced or attempted to produce child pornography depicting them. The evidence also established that Rockett solicited children (either directly or through a parent) both in the Philippines and in Oregon, to take and send him sexually explicit images of themselves. In addition, Rockett surreptitiously recorded children undressing and showering at his residence in Forest Grove, at a former residence in Aloha, and in hotel rooms in the Philippines.
The investigation was a collaborative effort on the part of the Forest Grove Police Department, the Washington County Sheriff’s Office, and the Federal Bureau of Investigation. Investigators executed search warrants at Rockett’s residence, and seized computer equipment and digital data storage devices. Investigators found a pin-hole camera hidden in a wall in a guest bathroom, which Rockett used to record images of naked children. Another spy camera, hidden inside a clock radio, contained surreptitious video recordings of naked Filipino children in the bathroom and shower of Rockett’s hotel room. Rockett appeared in some of the videos.
FBI Special Agents traveled to Cebu City, Philippines, where they identified and interviewed some of the victims depicted in the videos, and some of the children who Rockett solicited to send him sexually explicit images. The jury heard testimony from seven victims who were sexually abused or exploited by Rockett in Oregon and overseas. The jury deliberated several hours before reaching their verdict.
“This verdict is a testament to the dedication and hard work of federal, state, and local authorities who diligently followed the evidence in this case,” Williams said. “It is a shining example of interagency cooperation in the hard fight to keep children safe here in Oregon and outside the United States. It is vindication for the courageous child victims who spoke out against their abuser.” Williams added, “This verdict serves notice to all sexual predators that we will pursue you wherever you commit your crimes and wherever you hide – whether on the internet, in the shadows of our community, or abroad.”
The investigation was hindered by Rockett’s use of computer encryption and disc-wiping software. As a result, investigators cannot be certain that they have identified all of Rockett’s child victims.
This case was investigated by the Forest Grove Police Department, the Washington County Sheriff’s Office, the Northwest Regional Computer Forensics Laboratory, the Washington County District Attorney’s Office, and the FBI, and was prosecuted in federal court by Assistant United States Attorneys Paul T. Maloney and Gary Y. Sussman, Project Safe Childhood Coordinator for the District of Oregon.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the U.S. Department of Justice and led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Five Individuals Charged with Burglary from Rosebud Dialysis CenterRead the Press Release
United States Attorney Randolph J. Seiler announced that three Rosebud, South Dakota men, one Rosebud, South Dakota woman, and one Mission, South Dakota woman have been indicted by a federal grand jury for Third Degree Burglary.
Jonathan Anthony Jones, a/k/a DJ Jones, age 36; Robert Pomani, age 24; Seryl Leroy Pomani, Jr., a/k/a Leroy Pomani, age 28; Alicia Good Shield, age 30; and Michelle Iron Cloud, age 30 were all indicted for Third Degree Burglary. They all appeared before United States Magistrate Judge Mark A. Moreno and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to five years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
It is alleged that on January 23, 2016, Jones, Robert Pomani, Leroy Pomani, Good Shield and Iron Cloud unlawfully entered the DaVita Dialysis Center with the intent to commit larceny and aided and abetted each other in doing so.
The charge is merely an accusation and all individuals are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk W. Albertson is prosecuting the case.
Iron Cloud, Leroy Pomani, Robert Pomani and Jones were remanded to the custody of the U.S. Marshals Service pending trial. Good Shield was released on bond. A trial date has not been set.
Felon Admits Illegally Possessing Loaded HandgunRead the Press Release
PITTSBURGH - On May 23, 2016, a former resident of Pittsburgh and Gibsonia, pleaded guilty in federal court to a charge of violating federal firearms laws, United States Attorney David J. Hickton announced today.
Issa Jamal Battle, aka “Ees-Bay,” pleaded guilty to the one-count federal indictment before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that Battle had been previously convicted of several prior felony charges and was wanted on an outstanding arrest warrant for an unrelated incident when members of the United States Marshal Fugitive Task Force and Detectives from the Pittsburgh Bureau of Police stopped him on California Avenue while driving a rental vehicle. Despite the clear and direct orders of the officers, the defendant was observed making hand movements toward the seat belt lock area. There, police located a 45 Auto caliber semi-automatic handgun loaded with ammunition.
Judge Schwab scheduled sentencing for Sept. 7, 2016 at 9:30am. The law provides for a total sentence of at least 15 years and up to life in prison and a fine of up to $250,000.00 for defendants who qualify as an “Armed Career Criminal” with at least three prior convictions for crimes of violence or serious drug offenses. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
The Judge ordered the United States Marshals Service to transport Battle back to jail and incarcerate him until his September sentencing date.
Assistant United States Attorney Ross E. Lenhardt of the Violent Crime Section of the United States Attorney’s Office is prosecuting Battle on behalf of the government.
United States Attorney David J. Hickton commended all of the law enforcement efforts that brought Battle to justice.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crimes. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the United States Marshal Service Fugitive Task Force, and the Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case.
Essex County, New Jersey, Man Pleads Guilty to Role in Oxycodone Distribution RingRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted his role in a conspiracy to illegally obtain and distribute oxycodone in New Jersey, U.S. Attorney Paul J. Fishman announced.
Rickie Horvath, 54, of Belleville, New Jersey, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an indictment charging him with one count of conspiracy to distribute oxycodone.
According to documents filed in this case and statements made in court:
Using confidential sources, physical surveillance, and recorded text messages and telephone calls, investigators with the Drug Enforcement Administration (DEA) discovered that members and suppliers of a drug-trafficking organization secured prescriptions for oxycodone and other controlled substances from various doctors in New Jersey, filled them at pharmacies in Belleville and elsewhere, and sold the drugs for a profit. The investigation identified Horvath as a member of the drug trafficking organization.
Horvath admitted that from Feb. 5, 2014, to Aug. 13, 2014, he personally went to various doctors’ offices and obtained prescriptions for pills containing oxycodone, had the prescriptions filled, and sold the pills to members of the conspiracy and others. He said that on a single day in June 2014, he traveled to a doctor’s office in Livingston, New Jersey, where he and two conspirators each obtained a prescription for 60 Endocet pills. Horvath and his conspirators dropped off the three prescriptions to be filled by a pharmacy in East Orange, New Jersey. Horvath admitted that he and his two conspirators then found a fourth conspirator to buy the 180 Endocet pills. Horvath and his conspirators traveled to the East Orange pharmacy with the third conspirator buyer, where Horvath used the fourth conspirator’s money to purchase the filled prescriptions. Horvath and his conspirators then sold the 180 Endocet pills to the fourth conspirator.
Oxycodone is a Schedule II controlled substance – meaning that it has a high potential for
abuse, a currently accepted medical use with severe restrictions, and abuse of the drug may lead
to severe psychological or physical dependence. The Endocet pills obtained and sold by Horvath each contained 10 milligrams of oxycodone.
The charge to which Horvath pleaded guilty carries a maximum potential penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for Sept. 12, 2016.
Of the individuals originally charged with Horvath – Victoria Horvath, 43, of Belleville, New Jersey; Monica Horvath, 22, Tony Marco, 47, and Steven Horvath, 45, all of Rutherford, New Jersey; and Justin Farraj, 24, of Newark, New Jersey – all have pleaded guilty and await sentencing. Brian Perez, 23, was sentenced in September 2014 to 40 months in prison. Luis Rivera, 25, was sentenced in August 2015 to 54 months in prison. In April 2016, Daniel Horvath, 27, was sentenced to 27 months in prison and Johnny Horvath, 46, was sentenced to 30 months in prison. Charges were dismissed against Belleville pharmacist Vincent Cozzarelli after his death in April 2014.
The indictment remains pending against five other conspirators; the charges and allegations in the indictment against them are merely accusations, and they remain innocent unless and until proven guilty.
U.S. Attorney Fishman credited the DEA’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the OCDETF/Narcotics Unit of the U.S. Attorney’s Office in Newark. The principal mission of the OCDETF program, under which this investigation was conducted, is to identify, disrupt and dismantle the most serious drug-trafficking, weapons-trafficking and money-laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Defense counsel: Damian Conforti Esq., Newark
Eagle Pass Businessman Sentenced for Cocaine DistributionRead the Press Release
In Del Rio today Felipe Carmona-Rodriguez, 51, of Eagle Pass, Texas was sentenced on federal narcotics trafficking charges announced United States Attorney Richard L. Durbin, Jr., DEA Special Agent in Charge Joseph Arabit, Houston Division, and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Carmona-Rodriguez was convicted by a federal jury on April 11, 2015 of conspiracy to possess with the intent to distribute 500 grams or more of cocaine from January 1, 2009 until March 21, 2014, and two counts of possession with intent to distribute less than 500 grams of cocaine.
Appearing before U. S. District Judge Alia Moses, Carmona-Rodriguez was sentenced to 262 months for conspiring to possess with the intent to distribute cocaine from January 1, 2009 until March 21, 2014. He was also sentenced to 240 months on each of the two counts of possession with intent to distribute cocaine. These sentences will be served concurrently. He was also ordered to pay a $60,000 money judgment to the United States.
Evidence presented at the sentencing hearing showed that Carmona-Rodriguez had approximately six persons distributing cocaine for him. The evidence showed that Carmona-Rodriquez used his home and two businesses, Felipe’s Auto Detail Shop and Felipe’s Auto Sales, as fronts to sell cocaine. Carmona-Rodriguez hired others to sell cocaine for him and collected the street tax from these dealers on behalf of the Mexican Mafia. It was revealed that Carmona-Rodriguez had been involved in the distribution of narcotics for twenty-eight (28) years and had assisted in the transportation of $500,000 - $1,000,000 in drug proceeds from Chicago to Mexico on a number of occasions.
The case resulted from a joint investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations and United States Border Patrol. Also assisting in the investigation was the Texas Department of Public Safety - Criminal Investigations Division. This case was prosecuted by Assistant United States Attorneys Ralph Paradiso and Timothy Duree.
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Durant Man Sentenced to 72 Months for Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that ESDGAR AVILA, age 27, of Durant, Oklahoma, was sentenced to 72 months imprisonment, followed by 3 years of supervised release for FELON IN POSSESSION OF FIREARM AND AMMUNITION, in violation of Title 18, United States Code, Section 922 (g)(1) and 924(a)(2).
The charge arose from an investigation by the Durant Police Department and the Federal Bureau of Investigation. The defendant pled guilty in December, 2015.
The Indictment alleged that on or about October 18, 2015, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition, which had been shipped and transported in interstate commerce.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which he will serve his nonparoleable sentence.
Assistant United States Attorney Dean Burris represented the United States.
Detroit heroin dealer pleads guilty to Federal drug crimeRead the Press Release
CHARLESTON, W.Va. – A Detroit drug dealer pleaded guilty today to a federal heroin crime, announced Acting United States Attorney Carol Casto. Jason Matthew Brown, 35, entered his guilty plea to possession with intent to distribute heroin.
Brown admitted that on January 24, 2015, he was traveling with Justin Randolph from Detroit to Charleston with approximately 100 grams of heroin that Brown and Randolph intended to sell. The Kanawha County Sheriff’s Department stopped the vehicle and located the heroin, which was hidden in a spare tire in the trunk and wrapped in black tape. Brown further admitted that he had been responsible for bringing up to 1000 grams of heroin from Detroit for distribution in the Rand area of Kanawha County.
Brown faces up to 20 years in federal prison when he is sentenced on August 31, 2016. Justin Randolph, of Rand, previously pleaded guilty to distribution of heroin and faces up to 20 years in federal prison when he is sentenced on June 22, 2016.
The Kanawha County Sheriff’s Department, the Metropolitan Drug Enforcement Network Team, and the West Virginia State Police conducted the investigation. Assistant United States Attorney John J. Frail is handling the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Department of Justice Continues to Refine Strategies to Fight Child ExploitationRead the Press Release
SIOUX CITY, IA - The United States Attorney’s Office and the Mercy Child Advocacy Center held a joint press conference today at Mercy Medical Center to commemorate the 10th Anniversary of Project Safe Childhood (PSC), a Department of Justice nationwide initiative to combat child sexual exploitation. Assistant United States Attorney Timothy Duax and Child Advocacy Center Forensic Interviewer Sherrie Schweder, discussed national and local strategies designed to combat the sexual exploitation of children.
Although originally intended to combat technology-facilitated sexual exploitation of children, the success of the PSC over the past 10 years resulted in its expansion to encompass all federal child exploitation offenses. Just last year, 61 coordinated Internet Crimes Against Children (ICAC) task forces nationwide, representing more than 3,500 federal, state, tribal, and local law enforcement, conducted investigations leading to the arrest of more than 8,500 individuals. Those prosecutions not only rescued victims already being harmed, but also helped prevent other children from becoming victimized.
However, to continue their success, law enforcement agencies and prosecutorial agencies must respond to emerging technological advances, such as encryption technologies, and anonymization networks, which are used by online sex offenders to obscure their identities. These offenders have also increasingly migrated to organized group enterprises, where they can collaborate with other like-minded predators to perpetrate their offenses.
In addition to investigating child exploitation offenses, the United States Attorney’s Office and its partners are also committed to providing community-based outreach efforts. These outreach efforts include internet safety presentations at local schools, and for community groups.
United States Attorney Kevin Techau stated, “Public awareness and education about the current and future threats to children in our district are fundamental to any successful strategy to combat child exploitation. Although the identification of those threats and the investigation and prosecution of offenders are essential, our greatest achievement would be to prevent those crimes from happening in the first place. Consequently, we intend to take measures to positively impact the awareness, understanding, and responses of parents, educators, community members, and children of potential dangers.”
A particular area of emphasis will be placed on combatting the ever-increasing incidence of sextortion offenses. Sextortion is a form of exploitation where an offender obtains information or an image from a child and then uses the compromising information or image to extort the child to create sexually explicit images. Sextortion offenders typically threaten minors ages 10-17, the typical age range for juvenile Internet users, but increasingly, investigations have revealed that offenders manipulate the victim to abuse younger siblings or friends, thereby extending the threat to even younger and more vulnerable victims.
Going forward, the United States Attorney’s Office and its partners in the fight against child exploitation will continue to utilize a victim-centered approach in pursuing justice. Investigative and prosecution agencies, educational institutions, mental health professionals, victim advocates, medical experts, child service agencies, juvenile justice systems, non-profits, and others who are engaged in responding to sexually exploited children and youth will prioritize the provision of timely, victim centered, individualized, trauma informed, culturally competent, and comprehensive services to these victims.
To learn more about Project Safe Childhood, visit: https://www.justice.gov/psc.
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Delaware Repeat Offender Sentenced to 15 Years in Prison for Receiving Child PornographyRead the Press Release
A Delaware man was sentenced today to 180 months in prison for receipt of child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Charles M. Oberly III of the District of Delaware.
Eric Aldrich, 25, of Milford, Delaware, previously pleaded guilty to one count of receipt of child pornography. U.S. District Judge Leonard P. Stark of the District of Delaware presided over today’s sentencing.
At sentencing, the court found that Aldrich has a prior conviction in Delaware for dealing in child pornography and as part of his federal offense, he possessed over 600 images of child pornography, including material involving prepubescent minors and sadistic or masochistic conduct.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Delaware Internet Crimes Against Children Task Force investigated this case. Trial Attorney Leslie Williams Fisher of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Edmond Falgowski of the District of Delaware prosecuted this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Defendant Pleads Guilty for his Role in Cashing Stolen Tax Refund ChecksRead the Press Release
Gregorie Garcon, 57, pled guilty for his role in a scheme involving the cashing of stolen tax refund checks.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Garcon pled guilty to one count of theft of public money, in violation of Title 18, United States Code, Section 641. As part of his plea agreement, Garcon agreed to forfeit $29,792 in U.S. currency.
According to court documents, Garcon purchased stolen tax refund checks from a tax return preparer for a percentage of the face value of the checks. Garcon then gave the checks to a co-conspirator who took the checks to a check casher. Unbeknownst to the co-conspirator or Garcon, the check casher was in fact an IRS undercover agent (UCA) who agreed to cash the checks for a fee of 35% of the checks’ face value. From March to June 2013, the co-conspirator provided the UCA with seventeen (17) stolen tax refund checks totaling $110,259.97. The UCA paid the co-conspirator $29,792 for these checks.
During an interview with IRS-CI Special Agents, Garcon stated that the tax return preparer gave him the stolen refund checks in exchange for Garcon’s agreement to find a way to cash the checks. Garcon admitted that the checks he received from the tax return preparer were the same seventeen (17) checks that Garcon gave to the co-conspirator, which were ultimately cashed by the UCA.
Sentencing is scheduled for August 5, 2016, before U.S. District Judge Beth Bloom. At sentencing, Garcon faces a maximum statutory sentence of ten years in prison.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Alicia E. Shick.
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
Dayton Man Sentenced to 25 Years for Kidnapping and RobberyRead the Press Release
DAYTON – Shellie Woods, 42, of Dayton, was sentenced in U.S. District Court to 300 months in prison for conspiracy to commit kidnapping as well as robbery.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division and Dayton Police Chief Richard Biehl announced the sentence handed down yesterday by U.S. District Judge Walter H. Rice.
According to court documents, between late 2011 and early 2012, Woods and several others worked together to rob businesses in Southern Ohio. The co-defendants include: Terrell Mabry, 46, of Dayton; Dion Gullatte, 43, of Dayton, and Eric Black, 39, of Dayton.
On November 10, 2011, they completed the robbery of St. Elizabeth pharmacy, a store in the Dayton area that sold prescription drugs. The four men unlawfully entered the home of an employee of the pharmacy and seized and restrained the employee and his wife before demanding that the employee provide them with security codes and keys necessary to gain access to the pharmacy.
Gullatte used the codes to steal hundreds of prescription pills, including oxycodone, from the pharmacy. He and Woods took the pills to a Dayton residence where they split the robbery proceeds with Black and Mabry.
On one other occasion, Woods, Gullatte and Mabry worked together with another person, Jason Brice, 29, of Columbus, to rob the US Bank on Gettysburg Avenue in Dayton. Again the defendants unlawfully entered the home of an employee, a bank teller, to hold her and her family hostage until she agreed to help them gain access to the bank’s vault.
They held the teller’s family hostage at her home for almost twenty-four hours before attempting to move the family to another location. The defendants ultimately instructed the teller to enter the bank and to request that the bank give her abductors money to secure the release of her family.
Woods pleaded guilty on June 23, 2015 to conspiracy to commit kidnapping as well as robbery. Brice was sentenced on December 16, 2014 to 124 months in prison and Mabry was sentenced yesterday to 168 months in prison for their roles in the scheme. Black and Gullatte are scheduled for sentencing in the coming weeks.
Acting U.S. Attorney Glassman commended the cooperative investigation by the FBI and the Dayton Police Department, as well as Assistant United States Attorney Brent Tabacchi, who is representing the United States in this case.