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24 May 2016
Illegal Alien Removed Four Times from U.S. Found Again in Pittsburgh-areaRead the Press Release
PITTSBURGH - An illegal alien found in Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of re-entry into the United States after deportation, United States Attorney David J. Hickton announced today.
The one-count indictment named Martin Esquivel-Hernandez, 35, formerly from Mexico, as the sole defendant.
According to the indictment, Martin Esquivel-Hernandez, an illegal alien, was removed from the United States by United States Immigration and Customs Enforcement on Nov. 4, 2011, Dec. 8, 2011, April 11, 2012 and May 19, 2012.
The law provides for a maximum total sentence of two years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul E. Hull is prosecuting this case on behalf of the government.
The U.S. Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment or information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Honduran National Pleads Guilty to Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ALLAN WENDERLAY DOMINGUEZ, age 47, a citizen of Honduras, pled guilty today to a one-count Indictment for illegal reentry of removed alien previously convicted of an aggravated felony.
According to the Indictment, on or about February 11, 2016, DOMINGUEZ was found in the United States after having been officially deported on or about June 24, 2011 and September 12, 2012, following a conviction for theft of goods.
DOMINGUEZ faces a maximum term of imprisonment of twenty (20) years and a fine of $250,000, up to three (3) years supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Jay C. Zainey set sentencing for August 23, 2016.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, U.S. Border Patrol, in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
High-Ranking Gang Members Among Several Defendants Arrested for Dealing Narcotics and Guns on Chicago’s South SideRead the Press Release
CHICAGO — Several suspects, including high-ranking members of a Chicago street gang, are facing drug or gun charges for their alleged roles in dealing narcotics and firearms on the city’s South Side.
The investigation, dubbed “Operation Cornerstone,” spanned more than two years and included seizures of distribution quantities of cocaine and heroin, as well as confiscations of firearms and cash proceeds from drug sales. Authorities uncovered the criminal activity through the use of wiretapped cellular phones, cooperating witnesses, controlled purchases of narcotics and guns, and extensive surveillance.
Several suspects were arrested today without incident. While attempting to arrest a suspect at a residence in Park Forest, two agents of the Federal Bureau of Investigation were wounded. The agents survived the shooting and their injuries are not believed to be life threatening. The suspect, MELVIN TORAN, 50, of Park Forest, was later found dead inside the home. Toran was a high-ranking member of the Black P-Stone Nation street gang. He was set to be charged in federal court with distributing heroin.
Several defendants will be charged in criminal complaints to be filed in federal court in Chicago. One defendant will be charged in a complaint filed in state court.
In addition to Toran, the investigation revealed that a number of the suspects are ranking members of the Black P-Stone Nation. One of them arranged for the sale of 225 grams of heroin for $15,700 on Nov. 6, 2015. Unbeknownst to him, the buyer was cooperating with law enforcement and had surreptitiously recorded both the negotiation – in a restaurant in the Back of the Yards neighborhood – and the transaction itself in a residence in Englewood.
The investigation also uncovered a heroin and cocaine operation being run out of a South Side clothing store. A source cooperating with law enforcement informed authorities that when picking up narcotics from the store, the normal practice was to purchase an item of clothing as a pretext. When paying for the clothing at the checkout counter, the owner of the store or one of the employees would bag the item of clothing and also pass over an additional bag containing the narcotics. In the summer of 2015, a cooperating source – working at the direction of investigators – purchased more than 1,000 grams of heroin from the store owner for $72,720.
In addition to the drug offenses, the investigation also involved a probe into federal gun violations. On Feb. 23, 2015, a .380-caliber firearm and chrome magazine was sold by a suspect for $500 to an individual who was cooperating with law enforcement. In a related case indicted last month, JAMES JONES, 41, of Chicago, was charged with being a felon in possession of a firearm. Chicago Police officers arrested Jones after a traffic stop on Dec. 7, 2015. In the backseat of Jones’ vehicle were an infant child and two loaded semiautomatic pistols hidden in a baby bag, according a complaint filed in December in Jones’ case. Jones has pleaded not guilty and is being held without bond while awaiting trial.
The investigation was conducted by a joint gang task force of the FBI and Chicago Police Department.
The arrests were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the FBI; Anita Alvarez, Cook County State’s Attorney; and Eddie T. Johnson, Superintendent of the Chicago Police Department. The Park Forest Police Department provided assistance.
Assistant United States Attorneys Shoba Pillay, Sean J.B. Franzblau and Christine M. O’Neill will represent the government in the federal cases. The Cook County State’s Attorney’s Office will prosecute the state case.
Grand Prairie Man Faces 10 Years in Federal Prison after Pleading Guilty to Felony Offense Stemming from his Work with FAIM Economic Development CorporationRead the Press Release
DALLAS — Ellis Wamsley, IV of Grand Prairie, Texas, appeared in federal court today, before U.S. Magistrate Judge Irma C. Ramirez, and pleaded guilty to a felony offense stemming from his work with Kevin Kenard Howard and the FAIM Economic Development Corporation, announced U.S. Attorney John Parker of the Northern District of Texas.
Wamsley, 46, pleaded guilty to one count of engaging in a monetary transaction with property derived from specified unlawful activity and aiding and abetting. He faces a maximum statutory penalty of 10 years in federal prison, a fine not to exceed $250,000, or twice any pecuniary gain to the defendant, and restitution. He will remain on bond pending sentencing, which is set for September 8, 2016, before U.S. District Judge Jane J. Boyle.
Co-defendant Kevin Kenard Howard, 34, of Dallas, pleaded guilty last week to one count of wire fraud. He faces a maximum statutory penalty of 20 years in federal prison a fine not to exceed $250,000 or twice any pecuniary gain to the defendant, and restitution. He, too, will remain on bond pending sentencing, which is set for September 1, 2016, before Judge Boyle.
According to documents filed in the case, Wamsley formed FAIM in 2003, and in 2010, as its CEO, hired Howard to work as a financial consultant to assist in recruiting investors for FAIM. In summer 2010, while trying to recruit these investors to supply additional cash revenue for FAIM, Howard and Wamsley recruited “M.R.,” the owner/operator of “Company R,” in Flower Mound, Texas. They advised M.R. that a proposed joint venture between FAIM and Company R would generate funding for FAIM economic development projects in the southern sector of Dallas and throughout the U.S. FAIM and Company R signed a joint venture agreement in July 2010 that represented to investor M.R. and Company R that FAIM would provide a monthly financial report regarding the performance of the trading. Wamsley and Howard told M.R. that M.R.’s funds would only be invested in certain types of investments identified in the agreement and that all investment profits would be split equally between FAIM and M.R.
In August 2010, M.R. wired $2 million to a FAIM brokerage account at Charles Schwab. Approximately one month later, Wamsley transferred $1,791,703 in Company R’s investment funds from that account to a FAIM Merrill Lynch brokerage account that he had established and to which M.R. did not have access.
Wamsley told Howard that Howard would be FAIM’s primary point of contact with M.R. After the first few trades, the joint venture began to lose money. Wamsley told Howard to hide the investment losses from M.F. Howard agreed to, and did, lie to M.R. about the trading losses and the true balance of the investment account.
Howard, with Wamsley’s knowledge and consent, knowingly participated in the fraud scheme by sending lulling emails to M.R. that contained false information about the true balance and value of the account. In November 2010, Howard sent an email to M.R. falsely assuring M.R. that profits in the investment account had increased. In December 2010, Howard sent an email to M.R. in which he falsely represented that the account balance was $2,436,611. In January 2011, Howard sent another email saying the total account balance was $2,500,000. In fact, from October 2010 to August 2011, Howard, at Wamsley’s instruction, sent several emails to M.R. with the specific intent to deceive, mislead and confuse M.R. about the account’s true balance. Wamsley and Howard also concealed that fact that Wamsley was diverting some of the funds in the account for his own personal benefit and use.
For instance, from October 2010 through April 2012, Wamsley fraudulently transferred more than $1.7 million of Company R investment funds to FAIM’s business accounts, and he unlawfully spent those funds for his, Howard’s and others’ personal benefits. For example, in November 2010, Wamsley used $40,024 in Company R investment funds to purchase a 2008 Cadillac Escalade for Howard; $41,764 of investment funds to purchase a 2008 Cadillac Escalade for a family member; and $125,477 in investment funds to purchase a 2007 Aston Martin for himself. Wamsley also used more than $200,000 in investment funds to host a Super Bowl fund-raising event in 2011.
This case is one of several felony prosecutions of bankruptcy-related crimes generated by the Bankruptcy Fraud Initiative in the Northern District of Texas. Wamsley is the 14th defendant convicted since July 2014 as part of that initiative.
Internal Revenue Service Criminal Investigation investigated the case. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
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Fort Hall Woman Pleads Guilty to Assault on an OfficerRead the Press Release
POCATELLO – Somber March, 30, of Fort Hall, Idaho, pleaded guilty today in United States District Court to assault on an officer, U.S. Attorney Wendy J. Olson announced. March was indicted by the federal grand jury in Pocatello on November 25, 2014.
On or about September 19, 2014, Officer Riley Degnan of the Fort Hall Police Department was dispatched to the intersection of War Bonnet Road and Eagle Road on the Fort Hall Indian Reservation to contact a person identified as Somber March, who had a warrant for her arrest from Fort Hall Tribal Court. Officer Degnan contacted March on War Bonnet Road and found her to be incoherent. He believed her to be under the influence of a controlled substance and attempted to take her into custody on the Tribal Court warrant. As he began to handcuff her, she turned and hit him in the face, knocking Officer Degnan’s sunglasses off. She again tried to grab Officer Degnan and, with the assistance of another officer, was taken to the ground and handcuffed. March was later interviewed and admitted hitting the officer in the face. Under the specific federal law that March pleaded guilty to violating, Fort Hall police officers are considered “federal officers.”
The charge of assault on an officer is punishable by up to eight years in prison, up to three years of supervised release, and a fine of up to $250,000.
March is scheduled to be sentenced on August 2, 2016, before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Pocatello.
The case was investigated by the Fort Hall Police Department and the Federal Bureau of Investigation.
Former TSA Employee Pleads Guilty to Distribution of Child PornographyRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Homeland Security Investigations Special Agent in Charge Raymond R. Parmer, Jr., announced today that Raymond Kinney, 54, of Jacksonville, has pleaded guilty to child pornography charges.
Kinney, who was a Transportation Security Inspector for the Transportation Security Administration (TSA) prior to his arrest, pleaded guilty on Tuesday to distribution of child pornography before United States District Judge Susan Webber Wright, who will sentence him at a later date. Kinney was indicted on February 4, 2015. As part of the plea agreement, the parties will jointly recommend a sentence of 20 years, the maximum allowed by law, in exchange for the United States not charging Kinney with additional criminal conduct that was also uncovered in the investigation, including enticement of a minor.
Kinney was arrested in January 2015, after arriving at a motel where he planned to meet a person he thought was a 10-year-old girl. According to online chats that were recovered from his account, Kinney planned to have sex with this minor. A search incident to arrest revealed that Kinney had brought sex toys and children’s clothing with him.
"This defendant planned to sexually abuse a 10-year-old little girl," Thyer said. "Thanks to the work of law enforcement officers, he was not able to follow through with that plan. Fortunately, the minor in this case was actually undercover law enforcement, but online predators will seize any opportunity to take advantage of our children.
"There is no higher priority in my office than protecting the children of Arkansas, and, as I have said many times, parents must be aware of the potential for danger online and monitor their children’s internet activity just as closely as they would monitor them in any other public place."
According to facts read at the hearing, this investigation began in January 2015, when undercover officers monitoring a social networking site encountered an individual seeking a minor for sexual contact. Under the username "luvsyngteengirls," this individual sent several pictures and videos of child pornography over the internet. Kinney admitted that "luvsyngteengirls" was his username. Agents ultimately arranged a meeting at a motel with Kinney using this username, and when Kinney arrived, officers arrested him.
"Today’s guilty plea is a victory and it sends a clear cut message to those who want to take advantage of our children. We will find you and you will be prosecuted to the fullest extent of the law," Parmer, Jr., said. "We are committed to protecting the most vulnerable members of our society. HSI and its local, state and federal partners will continue to work together to put these predators behind bars."
The indictment charges that on or about January 27, 2015, Kinney knowingly distributed child pornography. The statutory penalty for distribution of child pornography is at least five but not more than 20 years of imprisonment, up to a $250,000 fine, and five years of supervised release.
The investigation was conducted by Homeland Security Investigations with substantial assistance from Russellville Police Department. The case is being prosecuted by Assistant United States Attorneys Allison W. Bragg and Kristin Bryant.
Former Port St. Lucie Police Officer Sentenced to Life in Prison for Child ExploitationRead the Press Release
A former police officer with the Port St. Lucie Police Department was sentenced yesterday to life in prison by United States District Judge Robin L. Rosenberg in Fort Pierce, Florida. He had previously pled guilty to multiple federal child exploitation charges.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, and John A. Bolduc, Chief, Port St. Lucie Police Department, made the announcement.
Michael Edwin Harding, 28, of Port St. Lucie, was sentenced to life in prison for the charge of attempt to coerce and entice a minor to engage in sexual activity, in violation of Title 18, United States Code, Section 2422(b); 240 months for each count of distributing material involving sexual exploitation of minors, in violation of Title 18, United States Code, Section 2252(a)(2); 240 months for possession of material involving sexual exploitation of minors, in violation of Title 18, United States Code, Section 2252(a)(4)(B); and 360 months for producing child pornography, in violation of Title 18, United States Code, Section 2251(a)(e). All of the sentences imposed will run concurrently. Additionally, the court imposed a lifetime term of supervised release and Harding will be required to register as a sex offender.
According to filed documents and statements made in court, Harding distributed videos and still images involving the sexual exploitation of minors on three separate dates. Between July 23, 2015, and August 4, 2015, Michael Harding posted multiple images and videos to a chat room on a popular social media application. The still images and videos depicted minor children engaging in sexually explicit acts. The images posted to the chat room were discovered during a forensic examination of a cell phone owned by Harding.
During the execution of a search warrant at Harding’s house, HSI agents located electronic devices and thumb drives containing hundreds of videos and still images depicting the sexual exploitation of minors. A large number of the images and videos depicted prepubescent minors engaging in sexual acts with adults.
Additionally, Harding attempted to coerce and entice a minor to engage in sexual activity over the internet. Chat messages recovered from Harding’s cell phone memorialized a conversation between the defendant and another individual, wherein they claimed to have custody of minor children whom they offered to exchange for their own sexual gratification.
Harding also produced child pornography by using his cell phone to create a video depicting his sexually explicit contact with a child under the age of 12. The video was discovered on Harding’s cell phone during a computer forensic examination.
This case is part of Operation Predator, an international law enforcement initiative, led by ICE-HSI, to combat the sexual exploitation of children. Through this collaborative effort, law enforcement strives to protect children from sexual predators, including individuals who travel overseas in order to engage in sexual conduct with minors, individuals who possess, trade and produce child pornography, criminal alien sex offenders, and sex traffickers of children. Anyone with information about suspected child exploitation is encouraged to call 1‑866‑872-4973. For additional information regarding the initiative and resources, visit www.ice.gov.
Mr. Ferrer commended ICE-HSI for their investigative efforts and the Port St. Lucie Police Department for their assistance with this investigation. The case is being prosecuted by Assistant United States Attorneys Daniel E. Funk and Russell R. Killinger.
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 Monroe Public Works Director Sentenced to 31 Months for BriberyRead the Press Release
Acting United States Attorney for the Middle District of Georgia, G. F. “Pete” Peterman, III, announced today that Hugh Stephen Worley, age 54, of Bethlehem, Georgia was sentenced to 31 months in federal prison on May 24, 2016, for one count of bribery by the Honorable C. Ashley Royal, U.S. District Court Judge, in Macon, Georgia. Mr. Worley is also ordered to pay $18,000 in restitution to the City of Monroe and forfeit an additional $18,000. He entered a plea of guilty to this charge on August 28, 2015 in Athens, Georgia.
Mr. Worley served as Director of Public Works for the City of Monroe in Walton County, Georgia for approximately seventeen years. He was terminated in January of 2013 for “violations of personnel policies and procedures.” One such violation involved the rental of an Asphalt Paver from a local company.
In 2008 or 2009, Sims Paving, Inc., a Monroe business, acquired an Asphalt Paver that could be used for small patching and paving jobs. Mr. Worley went to see the owner, Mr. Sims, about a paver that could be used for smaller jobs, such as paving the driveways in the City of Monroe Cemetery. In 2012, Mr. Sims and Mr. Worley came to a verbal agreement that the City would rent the paver for a total of $20,000 over four months. After the agreement, Mr. Worley told Mr. Sims on four separate occasions that he could use $1,000. He did not tell Mr. Sims about his need for the cash until after the agreement for the Paver rental. Fearful that Mr. Worley would renege on the rental deal, Mr. Sims gathered $1,000 together on the four separate occasions. The Paver was never used to pave the cemetery driveways or for any other municipal purpose. It sat idle at a cost of $20,000 to the City of Monroe. Mr. Worley admitted that he engaged in an illegal course of conduct regarding the rental agreement.
“Mr. Worley abused the trust placed in him by the people of the City of Monroe,” said Acting United States Attorney Peterman. “Now, as a direct result, he will face the consequences of violating public corruption laws by serving time.”
The case was investigated by the Federal Bureau of Investigation, Athens division. Assistant United States Attorney Danial Bennett prosecuted the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Former Mansfield Special Needs Instructor Sentenced to 60 Years in Federal Prison for Producing Child PornographyRead the Press Release
FORT WORTH, Texas — Kelly Dan Williams, Jr., a former special needs instructor at Mansfield Independent School District’s (ISD) Mary Orr Intermediate School, who admitted sexually exploiting children, was sentenced this morning by U.S. District Judge Terry R. Means to serve a total of 720 months (60 years) in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Williams, Jr., 62, has been in custody since his arrest in June 2015 on a related federal criminal complaint. He was indicted by a federal grand jury in Fort Worth in July 2015 on two counts of the sexual exploitation of children, and he pleaded guilty to that indictment in January 2016. Today, Judge Means sentenced him to 360 months on each of those to counts, to run consecutively.
According to documents filed in the case, on June 1, 2015, an individual at Mary Orr Intermediate School observed Williams, Jr. performing a sex act on an 11-year-old male student in a school bathroom stall. This individual reported this to the school’s administration, and Williams, Jr. was directed to report to the Human Resources office.
Mansfield Police obtained a search warrant for Williams’ Jr., residence, where they seized electronic storage devices, to include an SD card. A forensic examination revealed that a video located on the SD card depicted Williams, Jr. performing a sex act on a minor male, who appears to be younger than age 12, in what appears to be a school bathroom stall. Further forensic analysis indicates that the video was created on or about February 3, 2010.
Williams admitted that on approximately January 13, 2010, he used a minor boy to engage in sexually explicit conduct that he video-recorded. He further admitted that on approximately February 3, 2010, he used a minor boy to engage in sexually explicit conduct with him and video- recorded that conduct.
This year marks the 10th anniversary of the Project Safe Childhood (PSC) initiative. PSC is a department initiative launched in May 2006 to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Since FY 2011, the Department of Justice has filed 20,260 PSC cases against 19,111 defendants. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Mansfield ISD Police Department, the Mansfield Police Department and the Tarrant County District Attorney’s Office investigated the case.
Assistant U.S. Attorney A. Saleem was in charge of the prosecution.
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Former Federal Employee Pleads Guilty to Using Stolen Money Order Receipts in Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former federal employee pleaded guilty in federal court today to using stolen money order receipts in a fraud scheme to avoid paying his medical bills.
Byron G. Gorman, 51, of St. Joseph, Mo., pleaded guilty before U.S. District Judge Dean Whipple to the charge contained in a Sept. 10, 2015, federal indictment.
Gorman was employed as an information technology specialist for the U.S. Department of Agriculture's Office of Inspector General, assigned to the Heart of America Regional Computer Forensics Laboratory in Kansas City, Mo., where he was being trained to become a computer forensic examiner.
By pleading guilty today, Gorman admitted that he used stolen money order receipts – taken by Gorman as he participated in a criminal investigation – as fraudulent evidence in court, both to defend himself against a lawsuit against him by his creditors and in his own lawsuit against his creditors.
Gorman was a defendant in a civil collection lawsuit in Buchanan County, Mo., in which a judgment had been entered against him and a garnishment of his wages had been ordered to recover monies owed on medical bills incurred at the Heartland Regional Medical Center in St. Joseph. On Sept. 28, 2012, Gorman’s creditors filed a second civil collection lawsuit against him in Buchanan County to recover monies owed on additional unpaid medical bills.
On May 22, 2012, Gorman participated in the execution of a federal search warrant at the offices of a private business in Kansas City, Kan. Gorman was there to search for computer-related evidence. He found and took five blank U.S. Postal Service money order receipts belonging to the private business and used them to facilitate the scheme to defraud Heartland Regional Medical Center.
Gorman used the stolen money order receipts and other fraudulent documents created as evidence in his defense. Gorman claimed that he had submitted postal money orders to his creditors, but the payments had not posted. As evidence, he provided the five stolen money order receipts, which were filled out to make it appear that money orders had been made out to Heartland Regional Medical Center, as well as a number of forged letters displaying the names and purported signatures of postal employees.
Gorman also used the stolen money order receipts and other fraudulent documents he created as evidence in a lawsuit he caused to be filed against his creditors. Gorman placed the names and forged signatures of the actual persons onto letters purporting to be from the U.S. Postal Service and the U.S. Federal Trade Commission onto two letters and two certified mail receipts as part of his wire fraud scheme.
Under federal statutes, Gorman is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
As an examiner in training, Gorman did not perform any computer forensic examinations unless under the supervision of a fully certified Heart of America Regional Computer Forensic Laboratory (HARCFL) examiner.
Upon learning of the allegations regarding Gorman, the Heart of America Regional Computer Forensic Laboratory did a complete and thorough review of any cases which Gorman may have assisted in the examination of computer forensic evidence. No inconsistencies, errors or issues were noted with any evidence. The Heart of America Regional Computer Forensic Laboratory is a fully accredited laboratory facility following a strict protocol for the examination of evidence and the training protocol for examiners in training.
This case is being prosecuted by Assistant U.S. Attorney Brent Venneman. It was investigated by the FBI, the U.S. Postal Inspection Service and the U.S. Department of Agriculture, Office of Inspector General – Office of Compliance and Integrity.
Former Credit Union Employee Sentenced for $34,000 EmbezzlementRead the Press Release
KANSAS CITY, KAN. - A former credit union employee in Overland Park was sentenced today to three years supervised release for embezzling from the credit union where she worked, Acting U.S. Attorney Tom Beall said. In addition, she was ordered to pay $34,035 in restitution.
Susan Wooten-Robb, 25, pleaded guilty to one count of wire fraud. In her plea, she admitted the crime occurred while she worked for Community America Credit Union at 5601 W. 95th in Overland Park, Kan. In February 2014 two account holders complained about unauthorized debits from their accounts. Investigation revealed Wooten-Robb had made unauthorized debits totaling $34,035. In one instance, she attempted to cover up an unauthorized debit by filing a false currency transaction report claiming the account holders took out the money to assist a family member with paying tuition
Beall commended the U.S. Secret Service and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Former City Clerk Pleads Guilty to Federal Fraud and Arson ChargesRead the Press Release
DES MOINES, IA - On May 24, 2016, Dorothy L. Dillinger pled guilty to one count of mail fraud and one count of malicious use of fire announced Acting United States Attorney Kevin E. VanderSchel. Dillinger, age 61, admitted to engaging in a scheme to defraud the City of Casey, Iowa, from around 2009 until August 2014, while serving as the City Clerk. As part of that scheme, Dillinger admitted that she used the City’s credit card and funds to purchase items for personal use without the knowledge or approval of the City Council. Dillinger used the United States Postal Service to mail City checks to pay the resulting credit card statements. Dillinger also admitted to making unauthorized payments to herself for personal expenses without City Council approval or knowledge. Dillinger failed to disclose these expenditures to both the City Council, as well as in minutes from City Council meetings. Dillinger also admitted to maliciously destroying the City of Casey Community Building, which was used in activities affecting interstate commerce, by means of fire. The city building was destroyed by fire from the late night of August 19th into the morning of August 20th in 2014.
Dillinger faces a statutory sentence of at least five (5) years and up to twenty (20) years in prison, as well as financial penalties and a term of supervised release. As part of the plea agreement, Dillinger agreed to pay restitution in an amount to be determined by the court at sentencing. Sentencing is scheduled for at 10:30 a.m. on September 26, 2016, before the Honorable James E. Gritzner, Senior United States District Court Judge, at the United States Courthouse in Des Moines.
Former Bookkeeper for the Pinckneyville Rural Fire Protection District Sentenced to Prison for FraudRead the Press Release
Tammy L. Kellerman, 53, of Pinckneyville, Illinois, the former bookkeeper for the Pinckneyville Rural Fire Protection District (PRFPD), was sentenced today in United States District Court in Benton to 33 months in prison for defrauding the tax-payer funded municipal entity of over $444,000.00, announced James L. Porter, Acting United States Attorney for the Southern District of Illinois. Kellerman had previously pled guilty on February 2nd to an Information charging her with four counts of mail fraud.
Information introduced in support of the guilty pleas and sentence showed that between 2004 and 2013, Kellerman used her trusted position with PRFPD to steal funds from PRFPD by sending unauthorized checks drawn on PRFPD’s bank account through the United States mail to pay her personal credit card bills and other expenses and, thereafter, made false entries in PRFPD’s accounting software to conceal her theft from the board.
In addition to the 33 month term in prison, Kellerman was ordered to pay the United States $400 in special assessments and to pay a total of $441,390.32 in restitution (consisting of $406,640.32 to PRFPD and $34,750 to its insurer). Kellerman was also placed on a 3 year term of supervised release to follow her time in prison.
The investigation leading to Kellerman’s conviction and sentence was a cooperative effort by the Federal Bureau of Investigation, the Illinois State Police, the Criminal Investigations Division of the Illinois Department of Revenue, and the Illinois Attorney General’s Office. The federal case was prosecuted by Assistant United States Attorney James M. Cutchin.
Former Background Investigator for Federal Government Sentenced for Making a False StatementRead the Press Release
WASHINGTON – Jason A. Razo, 39, a former background investigator who did work under contract for the U.S. Office of Personnel Management (OPM), was sentenced today to two months of incarceration, to be followed by four months of home detention, on a charge stemming from his falsification of work on background investigations of federal employees and contractors, announced U.S. Attorney Channing D. Phillips and Norbert E. Vint, Acting Inspector General for the Office of Personnel Management.
Razo, of Van Nuys, Calif., pled guilty in February 2016, in the U.S. District Court for the District of Columbia, to making a false statement. He was sentenced by the Honorable Senior Judge Gladys Kessler. Following his prison term, Razo will be placed on three years of supervised release, during which he will serve the four months of home detention. Also, Razo has agreed to pay $85,779 in restitution to the federal government.
According to a statement of offense submitted to the Court, Razo was employed by KeyPoint Government Solutions as an investigator under contract to conduct background investigations on behalf of OPM’s Federal Investigative Services.
Between October 2010 and July 2011, in approximately 50 Reports of Investigations on background investigations, Razo represented that he had interviewed a source or reviewed a record regarding the subject of the background investigation. In fact, he had not conducted the interviews or obtained the records of interest. These reports were utilized and relied upon by the agencies requesting the background investigations to determine whether the subjects were suitable for positions having access to classified information, for positions impacting national security, for receiving or retaining security clearances, or for positions of public trust.
Razo’s false representations have required Federal Investigative Services to reopen and rework numerous background investigations that were assigned to him during the time period of his falsifications, at an estimated cost of at least $85,779 to the U.S. government.
Federal Investigative Services has a robust integrity assurance program which utilizes a variety of methods to ensure the accuracy of reported information. The falsification of investigative case work by the defendant was detected through the program.
This is one of numerous cases prosecuted by the U.S. Attorney’s Office for the District of Columbia since 2008 involving false representations by background investigators and record checkers working on federal background investigations. In addition to Razo, 21 other background investigators and two record checkers have been convicted of charges.
Federal Investigative Services, through its workforce of approximately 6,000, including 5,200 field investigators, is responsible for conducting background investigations for numerous federal agencies and their contractors, on individuals either employed by or seeking employment with those agencies or contractors. Federal Investigative Services conducted more than 2.4 million investigations during the 2015 fiscal year. More than 600,000 of these investigations involved applicants for access or continued access to classified information.
In performing background investigations, the investigators conduct interviews of individuals who have information about the person who is the subject of the review. In addition, the investigators seek out, obtain, and review documentary evidence, such as employment records, to verify and corroborate information provided by either the subject of the background investigation or by persons interviewed during the investigation. After conducting interviews and obtaining documentary evidence, the investigators prepare a Report of Investigation containing the results of the interviews and document reviews, and electronically submit the material to OPM in Washington, D.C. OPM then provides a copy of the investigative file to the requesting agency, which can use the information to determine an individual’s eligibility for employment or a security clearance.
In announcing the sentence, U.S. Attorney Phillips and Acting Inspector General Vint praised the efforts of Special Agent Christopher Sulhoff, OPM, Office of the Inspector General, and Philip Kroop, Kevin Cassidy, and Jeffrey Addicks, OPM, Federal Investigative Services. They also acknowledged the work of Paralegal Specialists Donna Galindo and Julie Dailey of the U.S. Attorney’s Office, as well as Assistant U.S. Attorney Ellen Chubin Epstein, who investigated and prosecuted this matter.
Felon Sentenced for Possessing A Firearm After Firing into Athens Apartment, Obstructing Justice at His SentencingRead the Press Release
G. F. Peterman, III, Acting United States Attorney for the Middle District of Georgia, announced that Sadarrevin Kendrick, age 26, of Washington, Georgia, was sentenced today to serve 84 months in federal prison for possession of a firearm by a convicted felon. Mr. Kendrick was sentenced by the Honorable C. Ashley Royal, United States District Judge, in Macon, Georgia, who enhanced the sentence based on a finding that Mr. Kendrick had obstructed justice by testifying falsely under oath at his sentencing.
On March 13, 2015, Mr. Kendrick fired a .45 caliber pistol through the floor of an Athens apartment into the apartment below. There were four individuals in the apartment through which the bullet passed, but no one was injured. Mr. Kendrick fled the scene, but was arrested shortly thereafter by an Athens-Clarke County police officer and found to be in possession of the loaded, stolen .45 caliber firearm, 82.2 grams of marijuana, and digital scales. Mr. Kendrick, who has prior convictions for burglary and possession with intent to distribute marijuana, subsequently admitted to the police that he had fired the weapon, which he said was an accident.
“This case is a good example of why felons are prohibited from possessing firearms,” said Acting U.S. Attorney G.F. “Pete” Peterman, III. “Mr. Kendrick not only possessed a loaded, stolen gun, but he fired it, endangering innocent, unrelated people in his vicinity.”
The case was investigated by the Athens-Clarke County Police Department. Assistant United States Attorney Peter D. Leary prosecuted the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Easthampton Man Sentenced for Cocaine and Marijuana DistributionRead the Press Release
BOSTON – An Easthampton man was sentenced today in U.S. District Court in Worcester for distributing cocaine and marijuana.
David Dulchinos, 51, of Easthampton, was sentenced by U.S. District Court Judge Timothy S. Hillman to 18 months in prison and three years of supervised release. In February 2016, Dulchinos pleaded guilty to one count each of distribution of cocaine and distribution of marijuana.
On Feb. 7, 2014, Dulchinos distributed cocaine and marijuana to an individual cooperating with federal agents. The transaction was captured on video and audio recordings. Dulchinos pleaded guilty to distributing nearly 400 grams of cocaine and 27 grams of marijuana in connection with that transaction.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Easthampton Police Chief Bruce McMahon, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Deepika Bains Shukla of Ortiz’s Springfield Branch Office.
Drug User Involved in Exchange of Gunfire in Dubuque Sentenced to PrisonRead the Press Release
An admitted user of a controlled substance who possessed a firearm and ammunition was sentenced yesterday to just over four years in federal prison.
Martin Lewis Smith, 21, from Dubuque, Iowa, received the prison term after a guilty plea on January 13, 2016, to being a prohibited person in possession of a firearm and ammunition. He was prohibited from possessing a weapon and ammunition because he was a regular user of marijuana.
The evidence showed that Smith exchanged gunfire with another individual in a Dubuque neighborhood with residents present, including small children. When he was approached by one citizen, he advised that citizen to “Go inside before you get popped.” He had smoked marijuana the day prior. At sentencing, the Court noted that Smith created a serious danger to the public and was a high risk to reoffend because of his criminal background and attitude.
Smith was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. He was sentenced to 51 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Smith is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Steve Young and investigated by the Dubuque Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-1028.
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District Man Sentenced to 42 Months in Prison for Robbing Bank in Southeast WashingtonRead the Press Release
WASHINGTON – Francis Davis, 69, of Washington, D.C., was sentenced today to 42 months in prison for robbing a bank last year in Southeast Washington, announced U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Davis pled guilty in February 2016 to a charge of bank robbery. He was sentenced by the Honorable Christopher R. Cooper of the U.S. District Court for the District of Columbia. Upon completion of his prison term, Davis will be placed on three years of supervised release.
According to the government’s evidence, on Monday, Nov. 9, 2015, at approximately 9:15 a.m., Davis entered the rear door of the SunTrust Bank in the 300 block of Pennsylvania Avenue SE. Once inside, he walked to a teller station. Davis then passed the bank teller a note which demanded money. The teller read the note and paused in disbelief. At that time, Davis stated, “Quit stalling … Somebody is gonna’ get hurt.”
The teller opened the cash drawer and passed $1,589 to the defendant. Davis stated, “That’s good,” and then walked swiftly out the door. Law enforcement officers submitted images taken from the bank’s surveillance video to the law enforcement community. The defendant was subsequently identified from several surveillance video photos from the robbery. He was arrested on Dec. 11, 2015 and has been in custody ever since.
In announcing the sentence, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Chief Lanier commended the actions of the FBI and Metropolitan Police Department officers who worked to solve this case. They also expressed appreciation for the work of Paralegal Specialists Jeannette Litz and Teesha Tobias of the U.S. Attorney’s Office. Finally, they commended efforts of Assistant U.S. Attorney Emory V. Cole, who investigated and prosecuted the case.
Davenport Man Sentenced in Federal Court for Felon in Possession of a Firearm ChargeRead the Press Release
DAVENPORT, IA – On May 23, 2016, Jonathan Earl Moore, 29, of Davenport, Iowa, was sentenced to 36 months imprisonment by District Court Judge Stephanie M. Rose, after pleading guilty to a felon in possession of a firearm charge, announced Acting United States Attorney Kevin E. VanderSchel. Moore was ordered to serve three years on supervised release and pay $100 to the Crime Victims’ Fund. On July 5, 2015, Davenport Police Department officers found Moore in possession of a Talon 9mm handgun. Moore pled guilty on January 15, 2016.
This matter was investigated by the Davenport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.
DEA and Pittsburgh Police Investigation Leads to Drug Charges Against Pittsburgh ManRead the Press Release
PITTSBURGH – An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
The two-count indictment named Michael Mills-Allen, 29, of Pittsburgh, Pennsylvania, as the sole defendant.
According to the indictment, on or about Dec. 12, 2015, the defendant possessed with intent to distribute a quantity of heroin and 28 grams or more of crack.
The law provides for a maximum sentence of not less than five years and up to 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Stephen S. Gilson is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the City of Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Centre County Couple Indicted for Explosives and Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Scranton has indicted a husband and wife from Centre Hall, Pennsylvania for explosives and firearms offenses.
According to United States Attorney Peter Smith, the indictment charges James Woodring, age 50, and Christina Woodring, age 43, with conspiring to manufacture and deal in explosives from May 1 through 18, 2016, and associated offenses. The indictment also charges James Woodring with being a felon in possession of firearms and with possessing a stolen firearm. James Woodring was arrested on May 20, 2016, and charged by criminal complaint with similar offenses premised on the same conduct. On May 20, 2016, he was brought before Chief U.S. Magistrate Judge Martin C. Carlson who ordered that Woodring be held in custody pending an indictment or preliminary hearing.
According to the indictment, and the complaint, the Woodrings conspired to purchase and transport commercial grade fireworks, to increase the fireworks’power and volatility, and sell them, all without a license to do so.
James Woodring also allegedly also possessed the following: a stolen semi-automatic pistol, a shotgun, a pump rifle and a rifle. As a previously convicted felon, Woodring is prohibited from possessing the firearms.
The government is also seeking forfeiture of the firearms.
The investigation was conducted by the Bureau of Alcohol, Tobacco, and Firearms Enforcement, the Pennsylvania State Police, the Centre Hall Police Department, and the Springettsbury Township Police Department. The case is being prosecuted by Assistant United States Attorney Phillip J. Caraballo.
Indictments contain only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the most severe charges is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Cedar Hill, Texas, Man Faces up to Five Years in Federal Prison for Making a False Statement in a Bankruptcy Petition FilingRead the Press Release
DALLAS — Haywood Bernard Hall, 34, of Cedar Hill, Texas, appeared in federal court today before U.S. Magistrate Judge Renée Harris Toliver and pleaded guilty to one count of making a false statement under penalty of perjury in a filing in a bankruptcy petition, announced U.S. Attorney John Parker of the Northern District of Texas.
Hall, who remains on bond, faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. Sentencing is set for September 9, 2016, before Chief U.S. District Judge Barbara M. G. Lynn.
According to documents filed in the case, in November 2010, Hall filed a second voluntary bankruptcy petition in U.S. Bankruptcy Court in the Northern District of Texas. In that petition, Hall knowingly and fraudulently made a material false statement, under the penalty of perjury, by causing a “Statement of Social Security,” (Form B21) to be filed that falsely represented his assigned Social Security number.
This case is one of several felony prosecutions of bankruptcy-related crimes generated by the Bankruptcy Fraud Initiative in the Northern District of Texas. Hall is the 15th defendant convicted since July 2014 as part of that initiative.
Social Security Administration, Office of the Inspector General investigated the case. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
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Canby Man Pleads Guilty to Stealing More than $300,000 in Social Security BenefitsRead the Press Release
PORTLAND, Ore. – The grandson of a deceased Social Security beneficiary admitted to stealing more than $300,000 of benefits mistakenly paid to his grandmother following her death. Ricky Lee Carlson, 63, pled guilty to theft of government funds before U.S. District Court Judge Marco Hernandez on Monday, and admitted he committed the theft over a course of 27 years.
According to court records, Carlson’s grandmother was using two different names and Social Security numbers at the time of her death in 1986. The Social Security Administration (SSA) was notified of the death under one identity, but her benefits continued to be paid each month under the other identity. In April 1995, Carlson caused a bank account to be opened in his grandmother’s name, and directed SSA to deposit her benefits into that account. Carlson then converted the funds to his own use by writing checks payable to himself, paying bills, and making ATM withdrawals. Between March 1986 and December 2013, Social Security benefits in the amount of $303,960.60 were improperly paid on the grandmother’s behalf.
According to the plea agreement, Carlson is agreeing to serve 12 months and one day in jail, although the actual sentence will be determined by Judge Hernandez. Carlson’s sentencing hearing is scheduled for September 7, 2016.
The case was investigated by the Social Security Administration Office of the Inspector General, Office of Investigations. The case is being prosecuted by Special Assistant United States Attorney Helen Cooper as part of a partnership venture between the Seattle Region, SSA Office of the General Counsel and the U.S. Attorney’s Office in Portland, Oregon.
Burlington Man Sentenced to Home Confinement and Supervised Release for Heroin DealingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on May 23, 2016, Samuel Spivack, 32, of Burlington, Vermont was sentenced to three years of supervised release after his guilty plea to charges that he distributed heroin. U.S. District Court Judge William K. Sessions III ordered that Spivack serve the first three months of supervised release confined to his home with location monitoring, perform 100 hours of community service, and pay a $2,000 fine. Judge Sessions also ordered Spivack to write the court a yearly report detailing his progress at rehabilitation.
According to court records, Spivack was a long-time heroin dealer in the Burlington area who sold heroin to support his own addiction to the substance. During the course of his career as a heroin dealer, Spivack worked for multiple different out-of-state suppliers. In 2015, the Burlington Police Department narcotics unit used a confidential informant to conduct a series of controlled purchases of heroin from Spivack. This investigation led to Spivack’s federal prosecution.
For his crime, Spivack faced a statutory maximum term of 20 years in prison. The United States Sentencing Guidelines, which are advisory, recommended that Spivack receive a prison term between 27 and 35 months. In determining that a significantly more lenient sentence was appropriate in this case, Judge Sessions considered Spivack’s lack of a serious criminal record, the fact that he sold heroin to support his own severe addiction, and his successful efforts at drug treatment.
United States Attorney Eric Miller commended the efforts of the Burlington Police Department, the Drug Enforcement Administration, the Vermont State Police, and the Northern Vermont Drug Task Force for their coordinated work in this investigation. United States Attorney Miller noted that this case is part of the U.S. Attorney’s Office’s Vermont Heroin Initiative, which is a coordinated effort by the U.S. Attorney’s Office and federal, state, and local law enforcement agencies to combat heroin distribution in Vermont. According to United States Attorney Miller, one aspect of the Vermont Heroin Initiative is to focus law enforcement and prosecutorial resources on local dealers, like Spivack, who regularly facilitate the illegal activities of out-of-state heroin traffickers.
The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Spivack is represented by Burlington defense attorney Mark Kaplan.
Brooklyn Resident Arrested for Conspiring to Launder Multi-Million Dollar Prostitution Service ProceedsRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn, New York, charging Michael Rizzi, a retired NYPD Police Officer, with conspiring to launder the proceeds of a multi-million dollar prostitution operation. Rizzi was arrested earlier today, and his initial appearance is scheduled for this afternoon before United States Magistrate Judge Viktor Pohorelsky at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York; and William J. Bratton, Commissioner, New York City Police Department (NYPD).
As is alleged in the complaint, between June 2012 and May 2016, Rizzi owned and operated BJM/Manhattan Stakes and Entertainment (BJM), a company that provided high-end prostitution services to customers in the New York metropolitan area. Until January 2016, BJM had an office located at 466 Wild Avenue in Staten Island. BJM advertised its services on more than 50 websites, including janeblow.com, nycescortsnyc.com, alluringcompanions.com, lushplaymates.com, plushplaymates.com, lusciouscompanions.com, iconcompanionsnyc.com, pureplaymates.com, perfect10club.com, flygirlsnyc.com, and eliteescortsnyc.com. BJM’s employees included telephone bookers who arranged appointments between prostitutes and BJM’s customers, as well as drivers who collected cash and receipts from BJM’s prostitutes.
The government’s investigation revealed that Rizzi accepted applications for his “escort” business using his email account. One applicant responded, “I am a fun loving girl who loves sex… I love sex and if I can get paid for it why not?”
BJM is a successor to Pure Platinum Models, a company that offered prostitution services. In 2012, the NYPD and HSI opened an investigation into Pure Platinum Models for various criminal offenses, including promotion of prostitution and money laundering. Pure Platinum Models was closed in 2014, and its owner was convicted of laundering more than one million dollars through the company. In 2012, BJM began providing many of the same prostitution services as Pure Platinum Models and used many of the same websites, employees, and prostitutes to conduct its business.
The prostitutes working for BJM charged their customers as much as $2,000 an hour. The investigation into the company’s financial records revealed that several of BJM’s customers each spent more than $100,000 for the company’s services, and that some clients paid more than $25,000 for a single night. Over the course of its operations, BJM collected millions of dollars of payments, including more than $2 million in credit card payments alone between October 2012 and March 2016. A review of various personal and business bank accounts maintained by Rizzi revealed that they were used to promote the prostitution business by laundering almost $200,000 disbursed via Paychex for BJM employee salaries, $25,000 to tollforwarding.com for forwarding phone numbers listed on various of Rizzi’s websites to his phone bookers, $10,000 to GoDaddy.com through which Rizzi registered over 80 websites pertaining to his prostitution business, and $112,000 to Electronic Merchant Services for processing the more than $2 million customer credit card transactions referred to above.
Earlier today, law enforcement executed search warrants at two addresses associated with BJM, as well as a vehicle paid for with business proceeds. The government also took steps to restrain more than 50 domain names registered to Rizzi that were associated with BJM and unsealed a civil complaint seeking the forfeiture of a residence in Florida which Rizzi purchased with the alleged criminal proceeds from his prostitution enterprise.
United States Attorney Capers stated, “The investigation and prosecution of money laundering offenses is a priority program of this Office. With this arrest, we continue to unmask organizations that launder millions of dollars through alleged criminal networks.”
“Rizzi, a former police officer, once entrusted to enforce the law now finds himself accused of breaking it by allegedly laundering money from the proceeds of an on-line prostitution ring,” stated HSI New York Special Agent-in-Charge Melendez. “Working with our local partners at the NYPD, this arrest and HSI’s seizure of dozens of websites signify the end to this high end prostitution ring and money laundering scheme.”
NYPD Commissioner Bratton stated, “The anonymity of the internet stretches only so far. Today, Michael Rizzi’s alleged scheme of prostitution and money laundering is up.”
The charge in the complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted of money laundering conspiracy, the defendant faces a maximum sentence of 20 years’ imprisonment.
The government’s case is being prosecuted by Assistant United States Attorneys Jennifer S. Carapiet, Erik D. Paulsen, and Claire Kedeshian.
The Defendant:
MICHAEL RIZZI
Age: 44
Brooklyn, New YorkE.D.N.Y. Docket No. 16-MJ-00487
Bronx Man Charged in White Plains Federal Court with Discharging A Firearm While Robbing A Yonkers Bank in October 2013Read the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Charles Gardner, the Commissioner of the Yonkers Police Department, announced the unsealing of a Complaint charging GIOVANNY MARTE, a/k/a “Gio,” with robbing a Wells Fargo Bank branch in October 2013 and discharging a firearm in furtherance of the robbery. MARTE was arrested yesterday morning in the Bronx and was presented yesterday before U.S. Magistrate Judge Lisa Margaret Smith in White Plains federal court.
U.S. Attorney Preet Bharara stated: “As alleged, Giovanny Marte committed a dangerous, violent bank robbery in broad daylight. Together with his co-conspirators, he allegedly entered a Wells Fargo branch carrying a loaded firearm. Marte allegedly fired two shots during the robbery – and fortunately did not hit anyone – before making off with more than $300,000 in cash. This frightening crime occurred more than two years ago, but thanks to the tireless efforts of the FBI, the Yonkers Police Department, and the NYPD, this defendant will now be held to account in federal court.”
FBI Assistant Director-in-Charge Diego Rodriguez stated: “The subject in this case was so intent on allegedly getting his hands on money that wasn’t his that he put lives in danger. He’s accused of firing his weapon several times in his rush to get into the vault. No bag of cash is worth a life.”
Yonkers Police Commissioner Charles Gardner stated: “This case demonstrates that we will work with our federal and local partners to make sure those who choose to engage in violent crime in our city are held accountable. I would like to thank the F.B.I., the U.S. Attorney’s Office, and the N.Y.P.D. for their persistence in this lengthy investigation.”
According to the allegations in the Complaint[1]:
On or about October 29, 2013, at approximately 3:17 p.m., MARTE and three co-conspirators (“CC-2,” “CC-3,” and “CC-4”) approached a Wells Fargo Bank branch located at 500 Odell Avenue in Yonkers, New York (the “Wells Fargo Branch”). MARTE, CC-2, and CC-3 entered the bank, while CC-4 remained in their vehicle. The robbers all wore gloves and clothing hiding their faces. MARTE and CC-3 each brandished a handgun, and CC-2 brandished a wood saw. The robbers ordered everyone to the ground. MARTE climbed onto the teller counter and pointed his gun at one of the tellers. He then entered the vault room and demanded that the manager assist him in opening the vault. As the manager tried to open the vault, MARTE fired two shots. No one was hit. Ultimately, MARTE accessed the vault, filled a bag with approximately $303,500 in cash, and fled the Wells Fargo Branch with CC-2 and CC-3. The robbers re-entered their vehicle, and CC-4 drove them away.
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The Complaint charges GIOVANNY MARTE, a/k/a “Gio,” age 25, of the Bronx, New York, with conspiring to rob the Wells Fargo Branch in or about October 2013, robbing the Wells Fargo Branch on or about October 29, 2013, and carrying and discharging a firearm in furtherance of a violent crime. The maximum and mandatory minimum sentences are as follows: a maximum of five years in prison on Count One (conspiracy); a maximum of 20 years in prison on Count Two (bank robbery); and a maximum of life in prison, with a mandatory minimum of 10 years in prison, on Count Three (firearm offense). The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the FBI’s Westchester Violent Crimes Task Force, which comprises agents and detectives of the FBI, United States Probation, the City of Yonkers Police Department, the City of Peekskill Police Department, the New York City Police Department, the Westchester County Police, and the Westchester County District Attorney’s Office.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Douglas Zolkind is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the descriptions of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Bronx Man Charged in Manhattan Federal Court with Attempting to Provide Material Support to IsilRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, John P. Carlin, Assistant Attorney General for National Security, Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and William J. Bratton, the Commissioner of the Police Department for the City of New York (“NYPD”), announced that SAJMIR ALIMEHMETI, a/k/a “Abdul Qawii,” was arrested today in the Bronx, for attempting to provide material support to the Islamic State of Iraq and the Levant (“ISIL”), a designated foreign terrorist organization, as well as for making a false statement in an application for a United States passport. ALIMEHMETI is expected to be presented later today before U.S. Magistrate Judge Gabriel W. Gorenstein in Manhattan federal court.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Sajmir Alimehmeti, a Bronx man and an ISIL sympathizer, took steps to travel overseas to support ISIL’s terror campaign. As the Complaint alleges, Alimehmeti also bought military-type weapons and helped someone he believed to be a fellow ISIL supporter get travel documents, equipment, and encryption technology purportedly to get to Syria to fight with ISIL. Alimehmeti is charged today with actions that show a clear intention to support a terrorist organization that is hell-bent on murder and mayhem. For that, thanks to the incredibly dedicated work of the FBI-NYPD Joint Terrorism Task Force, Alimehmeti is under arrest and facing federal criminal charges.”
Assistant Attorney General John P. Carlin said: “Alimehmeti was charged for his attempt to provide material support to ISIL by assisting a person who he believed was traveling to Syria to join ISIL. The National Security Division will continue to work with our partners to identify, disrupt and hold accountable those who seek to provide material support to designated foreign terrorist organizations.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “The subject in this case was allegedly having a hard time getting overseas to fight with ISIL. But when he couldn’t leave, he allegedly seemed more than willing to help others tread the same path to join an insidious and deadly terrorist organization. Cases like this keep the FBI JTTF and our partners at the NYPD going day in and day out, protecting our city from individuals who plot to help murderers.”
NYPD Commissioner William Bratton said: “As alleged, Alimehmeti continued his quest to support ISIL’s deadly terrorist agenda, after being denied entry into Europe with a bag full of military gear. When he returned home, to the Bronx, he allegedly turned to helping others join the terrorist organization as he built his own arsenal of weapons. Today’s case is the latest example of collaboration at its best, a case worked through the Joint Terrorism Task Force with undercover officers from the NYPD’s Intelligence Bureau.”
As alleged in the criminal Complaint,[1] unsealed today in Manhattan federal court:
In October 2014, ALIMEHMETI attempted to enter the United Kingdom but was denied entry after U.K. authorities found camouflage clothing and nunchucks in his luggage. Two months later, in December 2014, ALIMEHMETI was again denied entry into the United Kingdom, this time after U.K. authorities found that his cellphone contained images of ISIL flags and improvised explosive device attacks. Further forensic examination of images of the cellphone and ALIMEHMETI’s laptop computer showed numerous indicia of ALIMEHMETI’s support for ISIL, including a picture of ALIMEHMETI with an ISIL flag in the background, pictures of ISIL fighters in the Middle East, a picture of ALIMEHMETI making a gesture of support for ISIL, and numerous audio files relating to jihad and martyrdom.
After returning to the United States, ALIMEHMETI continued to express his support for ISIL, by displaying an ISIL flag in his apartment in the Bronx, among other things. In meetings with undercover law enforcement employees, ALIMEHMETI played multiple ISIL videos on his computer and his phone, including videos of ISIL decapitating prisoners.
Further, over the last 11 months, ALIMEHMETI made multiple purchases of military-style knives and other military-type equipment, including masks, handcuffs, a pocket chain-saw, and steel-knuckled gloves.
In October 2015, ALIMEHMETI applied for a new United States passport, claiming his previous passport had been lost. However, ALIMEHMETI later told an undercover law enforcement employee that his prior passport had not been lost and, instead, that he was applying for a new passport because he believed rejection stamps on his old passport, including rejection stamps from his attempted entries into the United Kingdom, would make it difficult to travel.
In May 2016, ALIMEHMETI attempted to assist an individual who was purportedly traveling from New York to Syria to train and fight with ISIL but who was actually an undercover law enforcement employee (the “UC”). On May 17, 2016, ALIMEHMETI met with the UC in Manhattan, where the UC was purportedly en route to John F. Kennedy International Airport to take an overseas flight later that night in order to join ISIL.
ALIMEHMETI agreed to help the UC with several tasks before the UC went to the airport, including by locating stores so that the UC could purchase supplies to use while traveling to, and fighting with, ISIL, including a cellphone, boots, a compass, a bag, and flashlight, among other items. ALIMEHMETI provided the UC with advice and suggestions on the best boots to purchase and on which items to purchase. The defendant also advised the UC on the use of different kinds of encrypted communications applications, including an application that ALIMEHMETI stated was currently being used by “the brothers,” and downloaded three encrypted communications applications onto the UC’s new cellphone.
Further, ALIMEHMETI assisted the UC in traveling from Manhattan to a hotel in Queens, so that the UC could purportedly meet with an individual who was preparing travel documents that the UC would use to travel to Syria (“Document Facilitator”). ALIMEHMETI, who had repeatedly expressed his own desire to travel to join ISIL, gave the UC a piece of paper with his name and contact information so that the UC could provide that information to the supposed Document Facilitator. In voicing his interest in joining ISIL, ALIMEHMETI stated, excitedly, “I’m ready to . . . go with you man . . . you know I would. I’m done with this place.” After leaving the hotel in Queens, ALIMEHMETI brought the UC to John F. Kennedy International Airport via public transportation.
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ALIMEHMETI, 22, of the Bronx, is charged with one count of provision of material support to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison, and one count of making a false statement in an application for a United States passport, which carries a maximum sentence of ten years’ imprisonment. 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.
Mr. Bharara praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD, and the NYPD’s Intelligence Division. Mr. Bharara also thanked the Counterterrorism Section of the Department of Justice’s National Security Division, the Department of Justice’s Office of International Affairs, and British authorities for their assistance.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Brendan F. Quigley and Emil J. Bove III are in charge of the prosecution, with assistance from Trial Attorney Kiersten Korczynski of the National Security Division's Counterterrorism Section.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Bristol Woman, 2 Others Charged with Health Care FraudRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Phillip Coyne, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General, and Chief State’s Attorney Kevin T. Kane today announced that a federal grand jury in New Haven has returned an indictment charging RONNETTE BROWN, 43, of Bristol, with 23 counts of health care fraud and one count of conspiracy to commit health care fraud.
Brown was arrested yesterday. She appeared before U.S. Magistrate Judge Donna F. Martinez in Hartford, entered a plea of not guilty to the charges in the indictment, and was released on a $100,000 bond.
This matter stems from an ongoing health care fraud investigation being conducted by the Office of the Inspector General of the U.S. Department of Health and Human Services, the Medicaid Fraud Control Unit of the Chief State’s Attorney’s Office, and the Connecticut Office of the Attorney General. The investigation identified fraudulent activity in the area of behavioral health services. Through the Medicaid program, the State of Connecticut provides coverage for mental health and counseling services to citizens who cannot otherwise afford health insurance. “Behavioral health” includes a wide variety of health care providers who provide care on an outpatient basis, including psychiatrists, psychologists, licensed clinical social workers, licensed marriage and family therapists, licensed professional counselors, and licensed alcohol and drug counselors.
The indictment alleges that Brown owned and operated WeMPACT, LLC, a social services business with offices in Bristol and Torrington. Between August 2010 and April 2014, Brown billed Medicaid for psychotherapy services that were not performed. The indictment separately alleges that Brown conspired with Beverly Coker and another unnamed individual to bill Medicaid for psychotherapy services that represented Coker had performed the services, when in fact the services were provided by unlicensed individuals, or were not provided at all.
Each of the 24 counts in the indictment carries a maximum term of imprisonment of 10 years.
According to court documents and statements made in earlier court proceedings, Coker, a licensed clinical social worker, owned and operated New Beginnings Family Center, LLC, in Hartford. On April 8, 2016, Coker, 68, of Windsor, waived her right to indictment and pleaded guilty to one count of health care fraud, admitting that between October 2010 and November 2011, she engaged in a scheme to defraud Medicaid by permitting two individuals to bill Medicaid for psychotherapy services using Coker’s Medicaid provider number. The services were either performed by unlicensed individuals or not performed at all. Under the scheme, Coker kept 30 percent of the proceeds, and paid the remaining 70 percent to the other two individuals. As part of her plea, Coker admitted to defrauding Medicaid of approximately $214,555 through the scheme.
In addition, on May 2, 2016, Anne Charlotte Silver, 62, of Morris, pleaded guilty to one count of health care fraud. Silver, a licensed clinical social worker, owned and operated Silver Counseling Services, LLC, in Canton and Bantam. As part of her guilty plea, Silver admitted that between June 2011 and July 2015, she engaged in a scheme to defraud Medicaid by permitting an unnamed individual to bill Medicaid for psychotherapy services using Silver’s Medicaid provider number. The services were either performed by unlicensed individuals or not performed at all. Under the scheme, Silver kept 25 percent of the proceeds, and paid the remaining 75 percent to the other two individuals. Silver admitted to defrauding Medicaid of approximately $1.6 million through the scheme.
Coker and Silver await sentencing.
“Behavior health specialists provide individuals of all ages the critical counseling needed to address serious mental health conditions,” said U.S. Attorney Daly. “It is imperative that providers both deliver needed care to their patients, and bill Medicaid and other insurance programs honestly and accurately. This ongoing investigation into the activities of a handful of unscrupulous providers is the result of coordination and joint investigation by HHS-OIG, the Medicaid Fraud Control Unit, the Attorney General’s Office, and our Office. We also appreciate the invaluable work of the Connecticut Department of Social Services in identifying Medicaid fraud and promptly referring matters to law enforcement. Through this partnership, we will continue to work to identify Medicaid fraud and bring civil and criminal prosecutions wherever warranted. ”
“Working with our federal and state partners, we will continue to protect the integrity of Medicare and Medicaid, which are designed to ensure the most vulnerable members of society receive the healthcare services they need,” said Special Agent in Charge Coyne.
“This is yet another example of how much we can achieve when agencies at all levels of government work together in collaboration,” said Chief State’s Attorney Kane. “The charges announced today also will hopefully put all health care providers on notice that we are committed at all levels of government to detecting, investigating and prosecuting fraud that steals scarce resources from the programs that serve people in need.”
As to Ronnette Brown, U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being prosecuted by Assistant U.S. Attorney David J. Sheldon and Auditor Susan Spiegel.
U.S. Attorney Daly and Connecticut Attorney General George Jepsen also announced that Naimetulla Syed, M.D., a physician with a private practice in Newtown, has agreed to pay $422,641.70 to resolve allegations that Syed submitted false claims to Medicare and Medicaid. The investigation revealed that on numerous occasions between July 2009 and December 2013, Syed billed Medicare and Medicaid for psychotherapy services using a code for individual psychotherapy lasting 45 to 50 minutes, face to face with a patient, and medical evaluation and management services. In the vast majority of these cases, Syed saw his patients for between five and 30 minutes, at most, and did not perform medical evaluation and management services.
This matter was handled by Assistant U.S. Attorney Anne Thidemann, and Assistant Attorney General Gregory O’Connell.
“I appreciate the continued close coordination with the U.S. Attorney and our other federal and state agency partners on cases such as this, which seek to protect Connecticut taxpayer funded public healthcare programs from fraud and abuse,” said Attorney General Jepsen.
The U.S. Attorney’s Office, Chief State’s Attorney’s Office and Attorney General’s Office meet regularly as part of The Medicaid Fraud Working Group. The Working Group also includes representatives from the Connecticut Department of Social Services; the Connecticut Department of Public Health; the Drug Control Division of the Connecticut Department of Consumer Protection; the Office of the Inspector General of the U.S. Department of Health and Human Services, and the FBI. The Working Group reviews pending issues and cases, identifies trends that might indicate fraudulent activity, and coordinates efforts for maximum results.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Bay Area Resident Sentenced to 45 Months for Aggravated Identity Theft and Use of A Counterfeit Access DeviceRead the Press Release
SAN FRANCISCO – William Monroe Mills, Jr., was sentenced yesterday to 45 months in prison and ordered to pay $21,132 in restitution for committing aggravated identity theft and using counterfeit California driver’s licenses announced United States Attorney Brian J. Stretch and United States Secret Service Special Agent in Charge Dave Thomas.
Mills, 63, pleaded guilty on February 8, 2016, to three counts of use of a counterfeit access device, in violation of 18 U.S.C. § 1029(a)(1)(A), and three counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A(a)(1). According to the plea agreement, Mills admitted he possessed fraudulent California driver’s licenses with the true identifying information of six victims, but bearing his photograph. He acknowledged he presented these fraudulent California driver’s licenses at financial institutions throughout the Bay Area and at one retail store, and used them to impersonate his victims. Mills obtained $21,132 by using the counterfeit licenses. Mills, was indicted by a federal grand jury on July 30, 2015. Pursuant to his plea agreement, Mills, Jr., pleaded guilty to all six counts in the indictment.
The sentence was handed down by the Honorable Thelton E. Henderson, U.S. District Judge. Judge Henderson also sentenced the defendant to a 3-year period of supervised release and ordered him to pay a total of $21,132.40 in restitution to his victims. The defendant has been in continuous federal custody since November 25, 2015.
Assistant U.S. Attorney Sheila A.G. Armbrust is prosecuting the case with the assistance of Patricia Mahoney. The prosecution is the result of an investigation by the United States Secret Service.
Australian Man Arrested after Allegedly Traveling to the Southland Seeking to Have Sex with 6-Year-Old ChildRead the Press Release
LOS ANGELES – An Australian man was arrested over the weekend when he arrived at a Los Angeles-area hotel allegedly to buy a 6-year-old boy for sex.
Michael Quinn, 33, of Melbourne, was charged in a criminal complaint filed in federal court on Monday with traveling to the United States for the purpose of engaging in illicit sexual conduct with a minor. The complaint also charges Quinn with attempted sex trafficking of a minor.
Quinn was arrested Saturday by special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). After the complaint was filed on Monday afternoon, Quinn made his initial appearance in United States District, where he was ordered held in jail pending a detention hearing on Friday.
“Predators who travel overseas to sexually exploit children do not just victimize children in faraway lands,” said United States Attorney Eileen M. Decker. “As this case shows, children everywhere are vulnerable to such predators, including children right here in Los Angeles. The Internet has helped to enable the child sex tourism industry by making the world a smaller place, but this case, and others like it by my office, show that such international predators can and will be brought to justice.”
According to the affidavit filed in support of the criminal complaint, the investigation began earlier this month after undercover HSI special agents met Quinn on a social networking site that caters to individuals with a sexual interest in children. Quinn told undercover agents he was traveling to Los Angeles and wanted to “meet up with a dad who shares his young ones.” Quinn explained to the undercover agent he was hoping to meet “other pervs” in the U.S. and ultimately agreed to pay a human trafficker $250 to provide him with a young boy with whom he could engage in illicit sex.
On Saturday afternoon, Quinn went to a Los Angeles-area hotel expecting to meet with three fellow child predators for a party, during which the men would engage in sex with boys provided by the sex trafficker. Quinn went to the hotel room not realizing the men inside were actually undercover HSI special agents. A short time later, another undercover agent, posing as the sex trafficker, arrived to collect payment for the children. After Quinn handed the sex trafficker his money, law enforcement authorities came into the hotel room and took him into custody.
“Millions of tourists flock to Los Angeles every year for all this city has to offer, but if you’re coming here to sexually exploit children, expect to be met by law enforcement, not a welcome mat,” said Joseph Macias, special agent in charge for HSI Los Angeles. “As this case vividly illustrates, the advent of the Internet means youth are now vulnerable to exploitation by sexual predators not just around the corner, but around the globe. Pedophiles should be on notice, HSI and its law enforcement partners are using all of the resources at our disposal to combat this reprehensible behavior and hold the perpetrators responsible for their crimes.”
The ongoing investigation is being conducted by HIS, with assistance from the FBI and the Los Angeles Police Department’s Internet Crimes Against Children Task Force.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The child sex trafficking charge is punishable by a mandatory minimum sentence of 15 years in federal prison and a maximum term of life without parole. Traveling with the intent of engaging in illicit sexual conduct with a minor carries a maximum penalty of 30 years in prison.
This case is a product of Project Safe Childhood, a Department of Justice initiative launched in 2006 to combat the growing epidemic of child sexual exploitation and abuse, and HSI’s Operation Predator, an international initiative to protect children from sexual predators.
Led by the U.S. Attorneys’ Offices and the DOJ Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals state and local resources to locate, apprehend and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Since the launch of Operation Predator in 2003, HSI has arrested more than 12,000 individuals for crimes against children, including the production and distribution of online child pornography, traveling overseas for sex with minors, and sex trafficking of children. In fiscal year 2014, more than 2,000 individuals were arrested by HSI special agents under this initiative.
HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form. Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-THE-LOST.
Attorney General Loretta E. Lynch Statement on the Case of Dylann RoofRead the Press Release
Attorney General Loretta E. Lynch today released the following statement regarding the United States v. Dylann Roof:
“Following the department’s rigorous review process to thoroughly consider all relevant factual and legal issues, I have determined that the Justice Department will seek the death penalty. The nature of the alleged crime and the resulting harm compelled this decision.”
Ambulance Company Owner and Brother Arrested in $6 Million Health Care Fraud ConspiracyRead the Press Release
HOUSTON - A 20-count federal indictment has been unsealed following the arrest of the owner of KMD Healthcare Services Inc., and his brother on charges they engaged in a conspiracy involving fraudulent Medicare and Medicaid billing for ambulance services, announced U.S. Attorney Kenneth Magidson.
Authorities arrested Melvin Davies, 28, and his brother Kevin Davies, 27, both of Houston today. They are expected to make their initial appearances before U.S. Magistrate Judge Frances H. Stacy tomorrow at 10:00 am.
The indictment alleges the defendants billed Medicare and Medicaid for ambulance services that were not medically necessary and not provided, as well as ambulance transport miles that were not provided. Melvin and Kevin Davies allegedly operated the ambulance business from their gated community townhouse and billed for ambulance services provided by vans and not ambulances. According to the indictment, Medicare and Medicaid were billed for services that were not documented on ambulance transport run sheets. The Davies brothers are also charged with spending more than $10,000 of criminally derived property.
If convicted of any of the charges, each defendant faces up to 10 years in federal prison and a possible $250,000 maximum fine.
The charges are the result of a joint investigation conducted by the FBI, IRS – Criminal Investigation and the Texas Attorney General’s Medicaid Fraud Control Unit. Assistant U.S. Attorney Julie Redlinger is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Albuquerque Felon Sentenced to Prison for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Jessie Dominguez, 35, of Albuquerque, N.M., was sentenced today in federal court to 40 months in federal prison followed by three years of supervised release for violating the federal firearms laws.
Dominguez was arrested in Sept. 2015, and was charged in an indictment with illegally possessing a firearm on May 11, 2015, in Bernalillo County, N.M. At the time, Dominguez was prohibited from possessing firearms or ammunition because she previously had been convicted for second-degree murder and forgery. Before her federal arrest, Dominguez was facing state charges that were later dismissed in favor of federal prosecution.
Dominguez pled guilty to the indictment on Feb. 9, 2016, without the benefit of a plea agreement.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department with assistance from the 2nd Judicial District Attorney’s Office.
Assistant U.S. Attorney Presiliano Torrez prosecuted the case under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, N.M., under this initiative.
23 May 2016
Yonkers Gang Leader Sentenced to 30 Years in Prison for Murder, Racketeering, and Narcotics CrimesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that DA’QUAN JOHNSON was sentenced on Friday, May 20, 2016, in White Plains federal court to a prison term of 30 years for crimes committed as part of a Yonkers-based street gang, the “Grimy Motherfuckers” (“GMF”), including the murder of Tyrone Arthur on December 27, 2013. JOHNSON pled guilty on January 7, 2016, to participating in the GMF racketeering conspiracy and to conspiring to murder rival gang members, resulting in the death of Arthur. JOHNSON pled guilty before U.S. District Judge Cathy Seibel, who imposed Friday’s sentence.
U.S. Attorney Preet Bharara stated: “Da’Quan Johnson was a leader of a violent, vicious street gang that terrorized the streets of southwest Yonkers with shootings, assaults, and drug dealing. On December 27, 2013, Johnson and his fellow gang members participated in a shooting that resulted in the senseless murder of an innocent man, Tyrone Arthur. Thanks to the hard work of the FBI and Yonkers Police Department, Johnson and the other members of GMF have been brought to justice.”
According to documents filed in this case and statements made in related court proceedings:
GMF, formed in or about 2008, was based in the Schlobohm Housing Project. GMF was initially aligned with the Strip Boyz, a different gang likewise based in the Schlobohm Housing Project. Up until late June and early July 2012, when 20 members of the Strip Boyz were arrested and charged with narcotics and firearms offenses, GMF and the Strip Boyz together controlled crack cocaine and marijuana distribution in and around the Schlobohm Housing Project, including an area of Palisade Avenue known as the “Strip.”
Following the 2012 arrests of the Strip Boyz, GMF members continued to engage in acts of violence and intimidation to preserve GMF’s dominance within the Schlobohm Housing Project and the surrounding areas. Members of GMF worked together to distribute narcotics, but above all, they were aligned in their disputes with rival gangs in southwest Yonkers. GMF members had disputes with gang members from various nearby neighborhoods, including Cottage Place Gardens, Warburton Avenue, Highland Avenue, and Riverdale Avenue. These disputes resulted in a number of violent incidents among the gangs, including assaults, stabbings, and shootings.
From approximately 2008 to 2014, GMF was engaged in a violent dispute with members of a rival gang from Highland Avenue known as “Highland.” This dispute resulted in a lethal cycle of shootings and acts of violence. The dispute culminated on the evening of December 27, 2013, when a shooting occurred in the vicinity of Palisade Avenue and Elm Street in Yonkers, which was territory controlled by GMF. After the shooting, members of GMF received information that members of Highland were responsible for the shooting. The same night, DA’QUAN JOHNSON obtained a loaded firearm and traveled with other GMF members to territory controlled by Highland with the intent of retaliating. A GMF member then shot into a crowd that had congregated for a candlelight vigil at the intersection of Highland Avenue and Jackson Street. One of the bullets hit Tyrone Arthur in the chest, killing him.
On July 16, 2014, a grand jury returned an indictment charging JOHNSON and two other defendants in connection with the murder of Tyrone Arthur. On December 10, 2014, a grand jury returned a superseding indictment charging thirteen members and associates of GMF – including the initial three – with the same offenses as the original indictment, as well as additional racketeering, narcotics, and firearms offenses. To date, all but one of the remaining defendants have pled guilty in satisfaction of the charges in the superseding indictment.
DA’QUAN JOHNSON, 25, of Yonkers, New York, was sentenced to 20 years in prison on the racketeering conspiracy and 10 years in prison on the murder conspiracy, to run consecutively, to be followed by three years of supervised release.
Mr. Bharara praised the outstanding investigative work of the FBI’s Westchester Violent Crimes Task Force, which comprises agents and detectives of the FBI, United States Probation, the City of Yonkers Police Department, the City of Peekskill Police Department, the New York City Police Department, the Westchester County Police, and the Westchester County District Attorney’s Office.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Scott Hartman and Douglas Zolkind are in charge of the prosecution.
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Woman Who Operated Heroin Processing Mill in Hartford Sentenced to 46 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that AMANDA GAMBARDELLA, 26, formerly of Hartford and Cheshire, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 46 months of imprisonment, followed by three years of supervised release, for operating a heroin processing mill in Hartford.
According to court documents and statements made in court, the Drug Enforcement Administration’s Hartford Task Force received information that a drug trafficking organization was obtaining large quantities of heroin in New York City, transporting the drug to Connecticut in a vehicle equipped with a hidden compartment, and distributing it in the Hartford area. The investigation revealed that GAMBARDELLA was employed by the organization to store and package heroin at her apartment on Adelaide Street in Hartford, and that she had rented a storage unit in East Hartford on behalf of the organization.
On November 4, 2015, investigators conducted a court-authorized search of the East Hartford storage unit and seized approximately $795,990 in cash. On November 5, 2015, investigators searched the Adelaide Street apartment and seized a approximately 778 grams of heroin, as well as cutting agents, packaging materials and other paraphernalia associated with a large scale heroin processing mill. The seized heroin included more than 17,000 bags packaged for street sale and approximately 200 grams of unpackaged heroin.
GAMBARDELLA has been detained since her arrest on November 5, 2015. On February 29, 2016, she pleaded guilty to one count of possession with intent to distribute heroin.
The DEA’s Hartford Task Force includes participants from the Hartford, Wethersfield, Bristol, East Hartford, Manchester, New Britain and Willimantic Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Woman Pleads Guilty to Embezzlement from Real Estate Firm in SalinaRead the Press Release
TOPEKA, KAN. - An Ottawa County woman pleaded guilty Tuesday to embezzling from a real estate company in Salina where she worked, Acting U.S. Attorney Tom Beall said.
Janetta Marie Buttery, 42, Bennington, Kan., pleaded guilty to one count of interstate transportation of stolen funds. A criminal information filed in March alleged Buttery embezzled more than $109,000 from her employer.
In her plea, Buttery admitted the crime occurred while she worked as a secretary, bookkeeper and executive assistant at Realty Associates of Salina. Buttery used her access to the company’s credit cards, bank accounts, books and records to divert the company’s funds to herself, her mother and her husband.
Sentencing is set for Aug. 22. She faces a penalty of up to 10 years in federal prison, a fine up to $250,000 and restitution. Beall commended the FBI and Assistant U.S. Attorney Rich Hathaway for their work on the case.
United States Files Civil Complaint Seeking Injunctive Relief, Penalties and Forfeiture of Assets Tied to Suffolk County Clinic’s Illegal Distribution of Prescription PainkillersRead the Press Release
Robert L. Capers, United States Attorney for the Eastern District of New York, and James J. Hunt, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division, today announced the filing of a civil complaint seeking injunctive relief and penalties against Roger Kaplan and Choice Medical Services, P.C. (“Choice”), formerly known as Choice Spine Joint & Neurology, a clinic that was located in Rocky Point, New York. The complaint also seeks the forfeiture of 13 pieces of real property located in New York and Florida, approximately $400,000 held in bank accounts, as well as a Bentley and other vehicles. Each of the named assets is linked to Choice’s illegal distribution of highly addictive opioids, such as oxycodone and hydrocodone. The action, filed in federal court in Central Islip, has been assigned to United States District Judge Leonard D. Wexler. United States v. Roger Kaplan, et al., 16-CV-2601.
As alleged, Choice was managed by Kaplan, a chiropractor who, through a family-owned company, owned the Rocky Point premises where the clinic operated and, who, along with family members, received most of the clinic’s millions of dollars in revenue. The complaint focuses on the period from 2006 to the Spring of 2015, during which doctors employed by Choice prescribed highly addictive opioids to patients despite the absence of any legitimate medical need. One Choice doctor lost her medical license following a proceeding before the New York State Department of Health, Office of Professional Medical Conduct. At the proceeding, that doctor, through her attorney, acknowledged that Choice was a “pill mill.” Another Choice doctor, a sleep specialist, pled guilty in federal court in Central Islip to one count of distribution of a controlled substance in violation of the Controlled Substances Act.
The civil complaint describes the enormous number of opioids prescribed at Choice. For example, according to records maintained by the New York State Bureau of Narcotic Enforcement, during a sample 17-month period, the sleep specialist at Choice wrote prescriptions for nearly half a million 30 mg oxycodone tablets alone. On one particular day, the sleep specialist wrote prescriptions for approximately 4,634 dosage units of opioids for the 49 patients he claimed to have seen that day.
In its complaint, the government seeks civil penalties and an injunction against Kaplan and Choice for their roles in issuing prescriptions in violation of federal law. In addition, the government seeks the forfeiture of millions of dollars in ill-gotten gains amassed by Choice and disbursed to Kaplan and his family members, who used the funds to, among other things, pay for a number of residences located in Manhattan and in Shoreham, New York, as well as in Florida. The government also seeks to forfeit the clinic and accounts containing the clinic’s illegal proceeds, and vehicles purchased by Kaplan and members of his family with the proceeds, including the Bentley, which Kaplan purchased for more than $163,000.
“We are all too familiar with the devastating harm caused to individuals, and our community as a whole, by the abuse of prescription painkillers. Today’s filing serves as a warning to those who prey on, and profit from, people who have developed addictions to opioids,” stated United States Attorney Capers. “We thank our partners in this coordinated investigation and prosecution to combat the unlawful distribution of opioids.”
DEA Special Agent in Charge Hunt stated, “Roger Kaplan’s alleged offenses are an example of how an unscrupulous medical professional can take advantage of vulnerable patients and reap millions of dollars through the illegal prescription of opioids. During the course of an eighteen-month investigation, law enforcement learned that doctors employed by Choice Medical Services, P.C., a now defunct Long Island pill mill which Kaplan controlled, prescribed thousands of pain pills a day to numerous patients in disregard of the patients’ medical conditions and needs. I commend the men and women who worked on this investigation. Identifying and dealing with prescription drug diversion and abuse, and depriving those who engage in such conduct of their ill-gotten gains, is critical to the mission of the DEA.”
Opioid abuse has reached epidemic proportions throughout the United States. According to the United States Department of Health & Human Services Centers for Disease Control and Prevention (“CDC”), on average 78 Americans died every day from an opioid overdose in 2014. In response to the overwhelming number of prescriptions, and the mounting number of overdoses and deaths, two months ago the CDC issued new guidelines recommending that doctors prescribe less addictive and less powerful pain relievers before prescribing highly addictive drugs, and that they prescribe limited amounts.
This case is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York as part of the Prescription Drug Initiative. In January 2012, this Office and the DEA,[1] in conjunction with the five District Attorneys in this district, the Nassau and Suffolk County Police Departments, the New York City Police Department, and New York State Police, along with other key federal, state and local government partners, launched the Initiative to mount a comprehensive response to the increase in opioid abuse. To date, the Initiative has brought over 160 federal and local criminal prosecutions, including the prosecution of 22 health care professionals. The Initiative also has resulted in civil enforcement actions against a hospital, a pharmacy and a pharmacy chain, the removal of prescription authority from numerous rogue doctors, and the expansion of information-sharing among enforcement agencies to better target and pursue drug traffickers.
The United States’ case is being prosecuted by Assistant United States Attorneys Madeline O’Connor, Laura D. Mantell and Elliot M. Schachner, with assistance from Paralegal Specialist Brian S. Gappa.
E.D.N.Y. Docket No. 16-CV-2601
[1] The investigation was led by DEA’s Long Island Tactical Diversion Squad comprising agents and officers of the DEA, Nassau County Police Department, Rockville Centre Police Department, Port Washington Police Department and Suffolk County Police Department. In addition, the investigation was assisted by HHS/OIG and the FBI. The Nassau County Police Department Asset Forfeiture Unit also provided invaluable assistance.
Uniontown Drug Dealer Sentenced to 10 Years in Federal PrisonRead the Press Release
PITTSBURGH - A Fayette County resident has been sentenced in federal court to a term of imprisonment of 10 years on his conviction of conspiracy to distribute heroin and cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Andre Saunders, 35, formerly of Uniontown, Pa.
According to information presented to the court, Saunders had regular loads of 20 or more kilograms of cocaine, and multiple kilograms of heroin, shipped from California, hidden in compartments inside of cars. Saunders then supplied multiple drug dealers in the Uniontown area, and laundered more than $350,000 through an account at 84 Lumber and through a Home Equity Line of Credit. Saunders also laundered his drug proceeds by using cash to buy postal money orders, which he would use to pay off luxury cars and other debts.
In addition to the sentence of 10 years’ imprisonment, Saunders will forfeit the following property to the United States: a 2008 BMW sedan; five luxury watches and a necklace; $325,120.00 in cash; his home in Uniontown; the proceeds of the sale of a property in Uniontown; a 9mm pistol; and a money judgment of $100,000.00.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, which led the multi-agency investigation of this case. The investigation also included the Drug Enforcement Administration, the Fayette County Drug Task Force, the Pennsylvania Attorney General’s Office, the Pennsylvania State Police, and the United States Postal Inspection Service. Assistant United States Attorneys Barbara K. Doolittle and Conor Lamb prosecuted this case on behalf of the government.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Two St. Clair County Residents Charged with Methamphetamine OffensesRead the Press Release
Two St. Clair County residents were indicted on May 3, 2016, for methamphetamine-related offenses, Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
Ricky M. Carle, 27, and Misty D. Calvert, 27, both of Marissa, are charged in a two-count indictment with conspiracy to manufacture and distribute methamphetamine and possession of pseudoephedrine knowing that it would be used to manufacture methamphetamine. The indictment alleges that the offenses occurred between 2014 and March 2016, in Williamson, Randolph, and Franklin Counties. Carle appeared in federal court on May 23, 2016. He was ordered held without bond pending a July 5, 2016, jury trial. During a previous May 10, 2016, detention hearing, Calvert was also ordered held without bond pending trial.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The methamphetamine offenses carry a maximum penalty of up to 20 years’ imprisonment, to be followed by 3 years’ supervised release, and a $1,000,000 fine.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, and Marissa Police Department.
Two Solano County Women Charged with Fraud Conspiracy, Filing Fraudulent Income Tax Returns, and Aggravated Identity TheftRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a six-count indictment on May 19, 2016, against Pamela Dawn Pierson, 50, of Vallejo, and Michelle Louise Travis, 50, of Suisun City. The indictment, which was unsealed today, charges both Pierson and Travis with conspiracy to commit wire fraud, conspiracy to defraud the United States government, filing false claims against the United States government, and aggravated identity theft, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, Pierson and Travis used identity theft victims’ personal identifying information to file fraudulent tax returns in order to obtain income tax refunds to which they were not entitled.
This case is the product of an investigation by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the Fairfield Police Department, with assistance from the University of California – San Francisco Police Department. Assistant United States Attorney Brian A. Fogerty is prosecuting the case.
If convicted, Pierson and Travis face a maximum statutory penalty of 20 years in prison for the conspiracy to commit wire fraud charge, a maximum of 10 years in prison for conspiracy to defraud the United States government, a maximum of five years in prison for the false claims charges, and a mandatory term of two years in prison for the aggravated identity theft charges. Each of the charges carries a maximum fine of $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Two Sent to Prison for Meth DistributionRead the Press Release
McALLEN, Texas – Two local men have been ordered to federal prison for their roles in a conspiracy to possess with intent to distribute methamphetamine, announced U.S. Attorney Kenneth Magidson. Guadalupe Trevino Jr., 43, and Guadalupe Trevino III, 24, both of Edinburg, pleaded guilty Aug. 28, 2015.
Today, U.S. District Judge Randy Crane handed Trevino Jr. a sentence of 48 months in federal prison, while Trevino III was ordered to serve 132 months.
A third defendant - Hiram Medina-Rodriguez, 51 of Pesqueria, Nuevo Leon, Mexico – was convicted by a jury Sept. 10, 2015. He will be sentenced June 3, 2016.
On Feb. 6, 2015, agents with the Drug Enforcement Administration (DEA) learned that a tractor containing a large quantity of methamphetamine was parked at a Chili’s restaurant in McAllen. Agent’s located the trailer and initiate surveillance. They son observed the driver - Medina-Rodriguez - acting in a suspicious manner. Authorities then approached him and obtained consent to search, at which time they found two air tanks containing approximately 60 kilograms of methamphetamine.
Upon further investigation, agents identified Trevino III who had arranged for the transportation of a large quantity of narcotics from the Rio Grande Valley to Dallas and Atlanta, Georgia. He installed two air tanks onto a tractor trailer which contained approximately 34.7 kilograms of methamphetamine.
Guadalupe Trevino Jr. admitted that his role in the conspiracy was to rent a warehouse to temporarily store the methamphetamine before it was delivered. He further admitted he knew the narcotics were concealed within the air and that it would be transported to another location.
The charges were the result of an investigation conducted by the Drug Enforcement Administration. Assistant U.S. Attorney Robert Wells Jr. prosecuted the case.
Two Men Sentenced to Prison for Multi-State Scheme to Obtain New Cell Phones through FraudRead the Press Release
BOSTON – Two men were sentenced today in U.S. District Court in Boston in connection with a fraudulent scheme to obtain and re-sell more than $330,000 in new cell phones.
David Hul, 34 of North Arlington, NJ, was sentenced by U.S. District Court Senior Judge Mark L. Wolf to 21 months in prison. Judge Wolf also sentenced Curtis Peebles, 26 of Boston and New York, NY to 18 months in prison. In February 2016, they pleaded guilty to wire fraud conspiracy. Co-defendants Jimmy Phan and Lee Tran previously pleaded guilty. Tran is scheduled to be sentenced on Sept. 12, 2016, and Phen’s hearing has yet to be scheduled.
Hul, Peebles and their co-conspirators gained access to T-Mobile customer records, including customer names, phone numbers, and information regarding those customers’ eligibility for free phone upgrades.
From at least January 2014 through October 17, 2014, Phan, Hul, Peebles, and other co-conspirators called T-Mobile customer service centers and, impersonating T-Mobile employees, used dealer codes that enabled them to add any name as an authorized user on T-Mobile accounts. They then recruited “runners”, including Tran and others, to go into T-Mobile stores and impersonate the customers. Phan, Hul, and Peebles used the dealer codes, among other methods, to cause either the runners’ real names or false identities to be added the customer accounts, sometimes using false names that closely matched the runners’ real names to reduce the likelihood of T-Mobile detecting the fraud.
Runners then went to T-Mobile stores in Massachusetts, Nevada, New Hampshire, New York, Pennsylvania, Rhode Island, New Jersey, Florida, and elsewhere, presented identification in the real or assumed names, and acquired one or more new cell phones on accounts that were eligible for upgrades. Runners then returned the new phones to Phan, Hul, Peebles, and others, who paid them a portion of the phone’s value. Although T-Mobile regularly alerted its customers to changes to their accounts, the affected customers frequently did not learn of the fraudulent modifications in time to prevent the distribution of the phones.
Phan, Hul, and others re-sold the cell phones to other coconspirators for distribution in the United States and abroad. In total, Phan, Hul, Peebles, Tran, and other co-conspirators obtained at least $330,000 worth of new cell phones by defrauding T-Mobile.
Co-defendants Kevin Johnson, 24, of New York, NY, and Khoa Doan, 32 of Manchester, NH, are currently scheduled to stand trial on a date to be set by the Court.
United States Attorney Carmen M. Ortiz; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service’s Boston Field Office, made the announcement today. The U.S. Attorney’s Office acknowledges T-Mobile for its assistance with the investigation. The case is being prosecuted by Assistant U.S. Attorney Seth B. Kosto of Ortiz’s Cybercrime Unit.
Two Men Plead Guilty to Charges Stemming from Multi-State Burglary SpreeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that ALIONIS PEREZ, 40, a citizen of Cuba last residing in New Jersey, and YOANDRYS CUE, 30, a citizen of Cuba last residing in Florida, have pleaded guilty in Hartford federal court to engaging in a conspiracy to burglarize outlet stores in six states between August and November 2013. PEREZ also pleaded guilty to engaging in a separate conspiracy to burglarize stores in Kansas and Tennessee in August 2014. CUE pleaded guilty on May 20, 2016, and PEREZ pleaded guilty today.
According to court documents and statements made in court, on August 2, 2013, PEREZ, CUE and others traveled from New Jersey to Connecticut. On August 3, 2013, PEREZ, CUE and others broke into the Fossil store located in Clinton, Connecticut, disabled the alarm system and stole watches valued at approximately of $250,000. Following the burglary, they returned to New Jersey with the stolen merchandise.
On August 18, 2013, PEREZ, CUE and others attempted to break into the Movado store located in Kittery, Maine.
On September 19, 2013, PEREZ, CUE and others broke into the Fossil store located in Miramar Beach, Fla., and stole watches valued at approximately of $170,000.
On October 4, 2013, PEREZ, CUE and others broke into the Fossil store located in Hagerstown, Md., and stole watches valued at approximately $750,000.
On October 24, 2013, PEREZ, CUE and others broke into the Fossil store located in Grove City, Penn., and stole watches valued at approximately $195,000.
On November 22, 2013, PEREZ, CUE and others traveled from New Jersey to Massachusetts and stole a van. On November 23, 2013, PEREZ, CUE and others broke into the Michael Kors store in Lee, Mass., disabled the alarm system and stole watches and bag valued at approximately $500,000. The conspirators then traveled from Massachusetts, disposed of the stolen van in Staten Island, New York, and returned to New Jersey with the stolen merchandise.
In relation to this scheme, PEREZ and CUE each pleaded guilty to one count of conspiracy to engage in the interstate transportation of stolen property.
PEREZ also pleaded guilty to the same charge in relation to a separate burglary scheme.
During the evening of August 7 or early morning hours of August 8, 2014, PEREZ and others burglarized a Radio Shack store located in Chesterfield, Mo. However, the burglary was interrupted and they were able to steal only a small amount of cash.
The following evening, PEREZ and others burglarized a Sunglass Hut Store located in Leawood, Kan., and stole 623 pairs of sunglasses valued at approximately $113,000.
In the early morning hours of August 10, 2014, PEREZ and others burglarized a Radio Shack in Franklin, Tenn., and stole approximately 50 smartphones valued at approximately $28,000. Later that day, PEREZ and his co-conspirators were arrested in a hotel room in Nashville, Tenn. The property stolen from the Sunglass Hut in Kansas and Radio Shack in Tennessee was recovered in connection with the arrest.
In relation to this scheme, PEREZ was charged by indictment in the Middle District of Tennessee. The case was transferred to the District of Connecticut for further prosecution.
PEREZ and CUE are scheduled to be sentenced by U.S. District Judge Robert N. Chatigny in Hartford on August 18 and August 12, respectively. PEREZ faces a maximum term of imprisonment of 10 years and CUE faces a maximum term of imprisonment of five years. Each defendant also faces a maximum fine of approximately $3.6 million, and an order of restitution in the amount of $1.865 million. They are both detained.
This ongoing investigation is being conducted by the Federal Bureau of Investigation, Clinton (Conn.) Police Department, Kittery (Maine) Police Department, Walton County (Fla.) Sheriff’s Office, Washington County (Md.) Sheriff’s Office, Pennsylvania State Police, Lee (Mass.) Police Department, Berkshire County (Mass.) Sheriff’s Office, Franklin (Tenn.) Police Department and Nashville (Tenn.) Police Department. The case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Heather Cherry in the District of Connecticut, and Assistant U.S. Attorney Lee Deneke in the Middle District of Tennessee.
Two Men Indicted on Multiple ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that two men were indicted by a federal grand jury on April 19, 2016, for multiple offenses on the Pine Ridge Indian Reservation.
Timothy Buckman, age 31, of Pine Ridge, South Dakota, and Daelan High Wolf, age 29, of Wakpamni, South Dakota, were indicted for Tampering with a Victim by Threat, Robbery, and Assault with a Dangerous Weapon. High Wolf was also charged with Using Firearm During Crime of Violence.
Buckman and High Wolf appeared before U.S. Magistrate Judge Daneta Wollmann on May 20, 2016, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction for Buckman is 20 years of imprisonment; the maximum penalty for High Wolf is life imprisonment. Each charge also carries a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Buckman and High Wolf assaulting a man while robbing his home, and then threatening him against testifying.
The charges are merely an accusation and Buckman and High Wolf are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Buckman and High Wolf were detained pending trial. A trial date has not been set.
Two Jackson Men Plead Guilty to Using a Firearm During a Drug Trafficking Crime Causing the Death of an IndividualRead the Press Release
Jackson, Miss - Anthony Watson, 26, and Joshua Martin, 24, both from Jackson, pled guilty on Friday, May 20, 2016, before U.S. District Judge Carlton W. Reeves, to using a firearm during a drug trafficking offense, U.S. Attorney Gregory K. Davis announced today.
Watson and Martin admitted to killing Sharod Vaughn, 22, of Jackson, Mississippi, during the early morning hours of August 13, 2013, at 2034 Wisteria Drive in Jackson, Mississippi. Vaughn died of multiple gunshot wounds from the SKS rifle and .45 caliber pistol used by the defendants. The defendants were meeting with Vaughn to exchange the firearms for marijuana when the shooting occurred.
Watson and Martin will be sentenced by U.S. District Judge Carlton W. Reeves on September 1, 2016 at 1:30 p.m.
The investigation was led by the Bureau of Alcohol, Tobacco, Firearms, and Explosives with assistance from the Jackson Police Department. Also contributing to the investigation were the Hinds County Sheriff’s Office and the Mississippi Department of Corrections. Assistant United States Attorneys Mary Helen Wall and Pat Lemon are prosecuting the case.
Two Anchorage Residents Charged in a 22-Count Indictment with Conspiracy, Bank Fraud and Aggravated Identity TheftRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that two Anchorage residents were charged in a 22-count indictment alleging that the two conspired to obtain checks stolen from vehicle break-ins–including stealing checks from vehicles being serviced at local automotive mechanics, and checks obtained from burglaries, and mail theft. The charged individuals then negotiated the stolen checks at different banks and grocery stores in Anchorage.
Victoria Kosetatino, 24, and Jeremy Tamapolu, 31, both of Anchorage, were charged in a 22-count indictment that includes charges of conspiracy, bank fraud, possession of stolen mail, and aggravated identity theft.
According to Assistant U.S. Attorney Aunnie Steward, who presented the case to the grand jury, Kosetatino and Tamapolu conspired together to use stolen checks at banks and grocery stores in Anchorage from December 2015, through at least April 2016, to obtain over $9,500.
Kosetatino appeared in court today on the charges. Tamapolu’s whereabouts are unknown. Anyone with information regarding the location of Jeremy Tamapolu please contact the U.S. Postal Inspection Service in Anchorage at 907-261-6321. See the photos at the end of this release.
The law provides for a maximum sentence of 30 years in prison and a fine of $1 million or both. Under federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The United States Postal Inspection Service and the Anchorage Police Department conducted the investigation leading to the indictment in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Topeka Man Pleads Guilty to Conspiracy in Fort Riley Bomb PlotRead the Press Release
TOPEKA, KAN. – A Topeka man pleaded guilty Monday to conspiring with another man who devised a plot to detonate a vehicle bomb at Fort Riley military base near Manhattan, Kan., Acting U.S. Attorney Tom Beall and Assistant Attorney General for National Security John P. Carlin announced today.
Alexander E. Blair, 30, Topeka, Kan., pleaded guilty to one count of conspiracy. During a plea hearing, Blair admitted he conspired with co-defendant John T. Booker, Jr., 21, Topeka. Asked after he was arrested about the fact Booker’s plan called for America service members to die in the bombing, Blair said: “That’s what they signed (up) for.”
In March 2014, the FBI began an investigation into Booker, who called himself Mohammed Abdullah Hassan, concerning statements he made online indicating he wanted to wage jihad and to die in the process. Booker was arrested April 10, 2015, and charged with attempting to use a weapon of mass destruction and two other counts.
During the investigation of Booker, law enforcement officers learned that Blair shared some of Booker’s extremist views and loaned Booker money for the purpose of renting a storage unit that Booker used to store components for a bomb. Blair knew of Booker’s intent to detonate a bomb at Fort Riley and to “kill as many soldiers as possible.” Despite being convinced that Booker was serious about carrying out the plot, Blair chose not to report what he knew to the authorities.
Blair is set for sentencing Aug. 23. He faces a maximum penalty of five years in federal prison.
Booker pleaded guilty to one count of attempted use of a weapon of mass destruction and one count of attempted destruction of government property. He is awaiting sentencing.
Beall commended the FBI Joint Terrorism Task Force, Assistant U.S. Attorneys Tony Mattivi and David Smith of the District of Kansas, and Trial Attorneys Josh Parecki and Rebecca Magnone of the National Security Division’s Counterterrorism Section for their work on the case.
Six Tax Return Preparers Plead Guilty to Filing False Tax Returns with the IRS Using Stolen IdentitiesRead the Press Release
Six additional tax return preparers pled guilty to filing false tax returns with the Internal Revenue Service (IRS) in a scheme that claimed more than $6,663,976 in fraudulent tax refunds.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Raymond D. Moss, Acting Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.
Natalie Mitchell, 42, Artrice Reid, a/k/a Artrice Nelson, 40, Tomeka Anderson, a/k/a Tomeka Owens, 36, Tiffany Gaines, a/k/a Tiffany Morris, 38, Artravette Thomas, a/k/a Artravette Wilson, 41, and Danny Horne, 30, each pled guilty to one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286, one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(1).
On December 15, 2015, Tameka Walker, 38, Celia Cromer, 43, and Maritynque Cromer, 25 previously pled guilty and were sentenced to 78 months, 50 months, and 36 months in prison, respectively, followed by three years of supervised release, and were all ordered to pay joint and several restitution in the amount of $796,535. On September 29, 2015, Marlin Mejia, 29, was sentenced to 21 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $17,428.
Trial is scheduled to begin on June 13, 2016 for Paganini Fleurantin, a/k/a Hu’Ra Al’Dey, 28.
According to court documents, from September 2010 through May 22, 2013, the defendants conspired to defraud the IRS by filing fraudulent tax returns claiming fraudulent tax refunds. Defendant Walker owned and operated Family Tree Taxes, Inc., a tax preparation business in Miami Gardens. Walker purchased stolen personal identification information (PII) from various sources, including defendant Mejia, to file fraudulent tax returns. Mejia worked as a radiology transporter at a hospital and stole documents (face sheets) containing patients’ PII (including names, dates of birth, and Social Security numbers) from patient files at the hospital. Mejia knew the PII belonged to real people who did not authorize him to possess their personal information. Mejia sold the face sheets to Walker knowing that Walker would use the stolen PII to file fraudulent tax returns.
Defendants Mitchell, Reid, Anderson, Gaines, Thomas, Horne, Fleurantin, Celia Cromer and Maritynque Cromer were employed by Walker as tax preparers at Family Tree Taxes. The employees filed tax returns using stolen identities to claim fraudulent tax refunds, and also filed tax returns claiming fraudulent overinflated tax refunds. Specifically, the stolen PII of 95 hospital patients was used by the employees to claim over $76,757 in fraudulent tax refunds. And in 2012, Mejia authorized Walker to file a tax return for him claiming a fraudulent overinflated tax refund of $3,452.
Gaines is scheduled to be sentenced on July 20, 2016. Thomas, Mitchell, Anderson and Reid are scheduled to be sentenced on July 22, 2016. Horne is scheduled to be sentenced on August 8, 2016.
At sentencing, the defendants each face a maximum of ten years imprisonment for the conspiracy to defraud the government charge, a maximum of twenty years imprisonment for the conspiracy to commit wire fraud charge, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of IRS-CI, ICE-HSI, and USPIS. The case is being prosecuted by Assistant United States Attorney Vanessa Snyder.
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.
Shasta County Man Sentenced to 18 Months in Prison for Defrauding the VA by Falsely Claiming He Was a Decorated VeteranRead the Press Release
SACRAMENTO, Calif. — John Cal Howe II, 42, of Lakehead, was sentenced today to 18 months in prison after being convicted of 23 misdemeanor counts in a scheme to obtain thousands of dollars in veterans’ benefits to which he was not entitled, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, Howe was engaged in a scheme to defraud the VA for over three years. He falsely claimed he was a decorated United States Marine Corps veteran, although he had never enlisted or served in the armed forces of the United States. He stole $13,623.02 in benefits from the Veterans Affairs (VA) and sought to further defraud the VA by applying for a service-related pension. In connection with his scheme, he repeatedly lied about serving in the United States Marine Corps, including lying about being wounded in combat; about completing 12 tours of duty in operation Desert Shield, the Persian Gulf War, Somalia, Afghanistan, and Iraq; and about being awarded three Purple Heart medals. Further, when the VA began to question Howe’s lies, Howe tried to have a Congressman’s office intervene on his behalf.
This case was the product of an investigation by the Veterans Affairs Office of the Inspector General. Special Assistant United States Attorney Elliot Wong prosecuted the case.
Removed Alien Sentenced to 5 Months in Prison for Illegally Re-entering United StatesRead the Press Release
PITTSBURGH, PA. - A resident of Mexico has been sentenced in federal court on his conviction of Illegal Reentry after Deportation, United States Attorney David J. Hickton announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Javier Morales-Bautista, 35, of Mexico.
According to information presented to the court, Morales-Bautista, who was previously removed from the United States on November 27, 2013 and September 20, 2014, was found in Butler County, Pennsylvania on December 26, 2015 without having applied for or received permission to reenter the United States from the Secretary of the Department of Homeland Security.
Imposing sentence, Judge Conti ordered that Mr. Morales-Bautista must serve 5 months incarceration to be followed by 3 years supervised release and 6 months home detention.
Assistant United States Attorney James T. Kitchen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Department of Homeland Security for the investigation leading to the successful prosecution of Morales-Bautista.