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19 May 2016
17 Individuals Charged with Drug Trafficking in the Municipalities of San Juan and CatañoRead the Press Release
SAN JUAN, Puerto Rico – On May 17, 2016, a federal grand jury in the District of Puerto Rico returned an indictment against 17 defendants charged with conspiracy to possess with intent to distribute, and distribution of controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigation and the Puerto Rico Police Department (PRPD), San Juan Strike Force are in charge of the investigation.
The indictment alleges that beginning in 2007, and continuing up to 2015 the organization distributed heroin, crack, cocaine, and marihuana, at Las Monjas Ward in San Juan, and Los Bultrones Alley, in Cataño, and other areas within and near the Municipalities of San Juan and Cataño, Puerto Rico, all for significant financial gain and profit.
The seventeen defendants acted in different roles in order to further the goals of their organization, to wit: leader, managers/drug owners, enforcers, runners, drug processors, facilitators, and sellers. Sixteen defendants are facing one charge of possession of firearms in furtherance of a drug trafficking crime.
The defendants are: Franklin A. Valdez-Marcelino, a.k.a. “Popeye”; Omar A. Mangual Lanause, a.k.a. “Omar”; Carlos E. Carrión-Nieves, a.k.a. “Negro”; Raymond Fuentes-Echevarría, a.k.a. “R”, “Raymond”, “Doble Cincuenta”; David Oliveras-Lugo, a.k.a. “Ardilla”; David Manuel Vélez-Torres, a.k.a. “Tripa”, “Tribi”; Orlando Martínez-Núñez, a.k.a. “Irving”, “Elvin”; Frajamilis Maldonado-Cruz, a.k.a. “Coquito”; Luis Manuel Resto-Reyes, a.k.a. “Guitarreño”, “Guitarra”; Emmanuel Mercedes-Morán, a.k.a. “Mono”; Jorge L. Martínez-Rodríguez, a.k.a. “Chito”; Edgardo Lamboy-Ruiz, a.k.a. “Galdo”, “Al-Qaeda”; Frankie Junior Cruz, a.k.a. “Papa”; Erick J. Ortiz-Colón, a.k.a. “Gringo”; Joel Rosa-Robles, a.k.a. “Bobmar”; Carlos A. Sánchez-Rivera, a.k.a. “Casper”; and Victor A. Martínez-Rodríguez, a.k.a. “Vitito”.
The defendants and their co-conspirators routinely possessed, carried, brandished and used firearms of different brands and calibers, including fully automatic weapons, to protect themselves, their drug trafficking organization, maintain control of their drug points, intimidate and retaliate against other drug trafficking organizations and to expand their drug trafficking activities. They used the cellular phones to take pictures of themselves in possession of firearms, and of the drugs that they distributed. They used social media to post pictures of co-conspirators in possession of firearms, to maintain contact with each other, to promote their drug trafficking activities, and to threaten other persons.
“Drug trafficking organizations must be aggressively attacked and dismantled at every level,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “The result of this operation is nothing short of significant and it underscores law enforcement’s main goal: to keep drugs out of our neighborhoods. These arrests will keep the law abiding citizens of San Juan and Cataño safer from the inevitable violence that drug trafficking brings.”
“Over the course of three decades, the Los Lobos Gang controlled various communities in Puerto Rico, trafficking narcotics and weapons on a massive scale, while the honest residents of those communities suffered,” said Douglas A. Leff, Special Agent in Charge of the FBI, San Juan Division. “Today, the long term investigation of this criminal enterprise culminated with its dismantlement, by arrests in Puerto Rico and throughout the continental United States. The FBI thanks the United States Attorney, Drug Enforcement Administration, Homeland Security Investigations, the Police of Puerto Rico, and the San Juan Municipal Police Department, for our continued partnership and mission, the goal of which remains the safety and security of Puerto Rico and its citizens.”
Assistant U.S. Attorney Cesar Rivera-Giraud is in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
18 May 2016
Woman Charged with Illegally Administering Silicone InjectionsRead the Press Release
ATLANTA - Deanna M. Roberts has been arrested on charges that while falsely claiming to be a licensed medical practitioner, she illegally transported liquid silicone from Florida to Atlanta and that she caused the death of another person by injecting the liquid silicone directly into the victim's buttocks.
“Roberts allegedly caused the death of another person by injecting her with silicone after falsely claiming she was a medical professional,” said U. S. Attorney John Horn. “The public should be wary of individuals who use substances like silicone in ways that are not approved by the FDA, or that are administered by persons who are not properly trained or licensed.”
“The FDA protects the public’s health by ensuring, among other things, that medical devices are safe and effective for their intended uses,” said Robert J. West, Special Agent in Charge, FDA Office of Criminal Investigations’ Miami Field Office. “We are fully committed to bringing to justice those who subvert FDA’s requirements and place unsuspecting American consumers at risk of serious harm by using unapproved and unsafe devices.”
“It is always a tragedy when someone loses their life due to the reckless negligence of another. This death shows why there is a need for FDA oversight and highlights the dangers when the system is illegally circumvented. We are thankful for the successful indictment of Deanna Roberts and pray that other lives can be saved by removing her ability to perform this dangerous activity,” Chief John F. King, Doraville Police Department.
“The underground operation of illegal injections has become more common and has threatened the health of victims,” said Atlanta Police Chief George N. Turner. “We will continue to work with our federal partners to combat this crime and expose perpetrators who risk the health of victims, for the sake of making a quick profit.”
According to U.S. Attorney Horn, the indictment, and other information presented in court: liquid silicone is strictly regulated by the Food and Drug Administration (FDA) and may be legally injected directly into the human body only as a treatment for certain eye conditions. In April, 2004, Roberts began ordering liquid silicone from a business in Arizona. Before she was allowed to buy the silicone, however, she was required to certify that it was not intended to be injected into humans. Roberts falsely swore that she did not intend to inject the silicone into humans. Instead, she claimed that she intended to supply the silicone to a customer for use in lubricating medical equipment. Between April 2004 and December 2015, Roberts purchased approximately 178 gallons of liquid silicone. Roberts then allegedly transported the liquid silicone to the Atlanta area and injected it into the hips, buttocks, and other body parts of her customers. Roberts falsely claimed to her victims that she was a licensed medical practitioner.
On November 16, 2015, Roberts allegedly injected liquid silicone into the buttocks of a victim identified as L.H. in the indictment. The indictment alleges that in doing so, Roberts caused the death of L.H. The indictment also alleges that Roberts injected another person with liquid silicone on the same date and that Roberts injected two others in October and November 2014. These individuals, however, did not die from the injections.Deanna M. Roberts, 46, of Sanford, Florida, was arrested on May 17, 2016, and made her initial appearance on these charges in federal court in Orlando, Florida.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Food and Drug Administration, Office of Criminal Investigations, the Doraville Police Department, and the Atlanta Police Department.
Assistant United States Attorney William L. McKinnon, Jr. and Special Assistant United States Attorney Erin Sanders are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Woburn Man Sentenced for $1.3 Million Hedgefund FraudRead the Press Release
BOSTON – A Woburn man was sentenced yesterday in U.S. District Court in Boston in connection with multiple charges of investment adviser fraud.
Gregg D. Caplitz, 57, of Woburn, was sentenced to 42 months in prison, three years of supervised release and ordered to pay restitution of $1,899,203. In April 2014, he pleaded guilty to conspiracy to commit investment adviser fraud, wire fraud, submitting false statements to the SEC, defrauding the United States by impeding the IRS, investment adviser fraud, submitting false statements to the SEC, four counts of wire fraud, and five counts of filing false tax returns.
From 2008 to March 2013, Caplitz and his business partner, Rosalind Herman, pitched a new hedge fund company investment to existing clients. The purported investment was billed by Caplitz and Herman as a hedge fund company owned by Herman. No hedge fund ever existed, however, and the investment funds obtained from clients were used to fund personal expenses for Herman, her family and Caplitz. In total, more than a dozen victims lost more than $1.3 million in savings, most of which were retirement savings.
In April 2016, Herman was convicted of investment advisor fraud, tax fraud, wire fraud and conspiracy following a six-day trial. Sentencing is scheduled for June 29, 2016.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement. The case was prosecuted by Assistant U.S. Attorney Sara Miron Bloom of Ortiz's Economic Crimes Unit.
Waltham Man Charged with Child PornographyRead the Press Release
BOSTON – A Waltham man was arrested yesterday and charged in U.S. District Court in Boston in connection with receipt and possession of child pornography.
Christopher J. Sullivan, 20, was charged in a criminal complaint with one count of receipt of child pornography and one count of possession of child pornography. Sullivan is scheduled to appear before U.S. District Court Chief Magistrate Judge Jennifer C. Boal for a detention hearing on Friday May 20, 2016.
According to the complaint, law enforcement learned that Sullivan used Skype to engage in sexually explicit conversations with young boys and also to exchange sexually explicit pictures with them. In December 2015, one victim, a 10-year-old boy from Oregon, forwarded pictures of his genitalia to Sullivan. During an interview with law enforcement yesterday, Sullivan admitted to speaking with over 50 boys and receiving over 200 sexually explicit pictures on web-based platforms including Omgele, Skype and Kik Messenger. Sullivan also admitted engaging in sexual acts with a boy.
The charging statute provides for a minimum mandatory sentence of five years and no greater than 20 years in prison, a lifetime of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. The Waltham Police Department assisted with the investigation. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
Members of the public who have questions, concerns or information related to this case, or any information relating to the sexual exploitation of children, should call (617) 748-3274.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Unlawful Alien Convicted for Possession of Firearms and AmmunitionRead the Press Release
Orlando, Florida– United States Attorney A. Lee Bentley, III announces that a federal jury has convicted Hamid Mohamed Ahmed Ali Rehaif (25, Melbourne, and a citizen of the United Arab Emirates) on possession of firearms by an unlawful or illegal alien and possession of ammunition by an unlawful or illegal alien. He faces a maximum penalty of 10 years in federal prison for each count. A sentencing hearing is scheduled for August 26, 2016.
According to evidence presented at trial, Rehaif was admitted into the United States in 2013 under a student visa to attend the Florida Institute of Technology (FIT). After completing three semesters at FIT, he was academically dismissed in December 2014. As a result, Rehaif became an unlawful alien when he failed to immediately depart the United States. While an illegal alien, he possessed firearms at a local shooting range and possessed ammunition. In addition, Rehaif provided ammunition to two hotel employees as “gifts.”
Law enforcement agents originally made contact with Rehaif in December 2015 at a hotel in Melbourne, where he had been living for two months. According to court documents, Rehaif stayed at the hotel for 53 straight days and paid over $11,000 in cash for room fees. Law enforcement found rounds of handgun and rifle ammunition in Rehaif’s hotel room and in a storage unit that he rented, but did not locate any firearms. However, Rehaif admitted to law enforcement that he had previously purchased three separate firearms and had either sold or given them away.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Federal Bureau of Investigation, and the Melbourne Police Department. It is being prosecuted by Assistant United States Attorney Shawn P. Napier and Special Assistant United States Attorney Christina R. Downes.
U.S. Attorney’s Office and Justice Department Reach an Extension Agreement to Improve Georgia’s Developmental Disability and Mental Health SystemRead the Press Release
ATLANTA – The United States Attorney’s Office today announced that it has entered into an extension agreement with the state of Georgia to improve the quality and availability of services for people with developmental disabilities living in the community and to provide supported housing to individuals with significant mental illness who need it.
“During the past five years, the State of Georgia has significantly changed the way it provides services for people with disabilities,” said John Horn, U.S. Attorney for the Northern District of Georgia. “Recognizing that we have more work to do in this area, I am encouraged by Georgia’s willingness to continue to partner with the Department of Justice and stakeholders to improve the quality of services for people with developmental disabilities and significant mental illness in our community.”
“By strengthening the services provided by Georgia’s mental health system, this agreement will make a difference in the lives of Georgians with developmental disabilities or mental illness who wish to build lives in the community,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We look forward to working with Georgia to deliver on the promise of community integration enshrined in the ADA.”
The extension agreement builds upon a 2010 settlement agreement resolving a lawsuit brought by the department under the Americans with Disabilities Act and the Supreme Court’s Olmstead decision. The case involves Georgia’s provision of community services for individuals with mental illness and developmental disabilities. The department found in 2009 that Georgia was forcing people with disabilities into state hospitals instead of providing community-based services, in violation of the ADA’s integration requirements. In January, the department alleged that Georgia was not in compliance with the 2010 agreement, both regarding helping people move from institutions into their communities and regarding quality and oversight of community-based services. In light of the agreement and the significant commitments Georgia has made in it, the department has agreed to withdraw its motion to enforce that earlier agreement.
The agreement will resolve the seven areas of alleged deficiency identified by the department in its January court filing. Under the agreement, Georgia will help people with developmental disabilities move from its state hospitals to integrated settings, consistent with their needs and preferences; will identify and address each individual’s needs in the community prior to discharge; and will monitor services and track outcomes for people after their discharge. For individuals who have moved from the state hospitals to the community, Georgia will monitor their health and wellbeing to ensure that emerging needs are met in a timely fashion. The extension agreement also calls for creation of at least 675 new Medicaid home- and community-based waiver slots as alternatives to placement in a facility. Georgia will provide clinical oversight and enhanced support coordination for individuals with developmental disabilities served by the state.
The extension agreement enhances quality oversight, requiring specific actions in the event of serious incidents and corrective actions to address deficiencies. The state will collect and review data to identify any trends and develop quality improvement initiatives. In addition, Georgia will require providers to develop risk management and quality improvement programs.
Under the agreement, at least 600 additional individuals with mental illness will receive bridge funding and at least 633 will receive housing vouchers under the Georgia housing voucher program. By June 30, 2018, the state is to have capacity to provide supported housing to any of the people with mental illness covered by the settlement agreement that need it. The extension agreement requires a referral procedure to supported housing for people who need it leaving the state hospitals, jails, prisons, emergency rooms or homeless shelters.
The Civil Rights Division enforces the ADA, which authorizes the Attorney General to investigate whether a state is serving individuals in the most integrated settings appropriate to their needs. Please visit www.justice.gov/crt to learn more about the Olmstead decision, the ADA and other laws enforced by the Justice Department’s Civil Rights Division.
Assistant U.S. Attorney Aileen Bell Hughes is representing the United States for the Northern District of Georgia in this matter.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Attorneys Neronha and Huber Appointed to Attorney General’s Advisory CommitteeRead the Press Release
Attorney General Loretta E. Lynch announced today the appointments of Peter F. Neronha, U.S. Attorney for the District of Rhode Island, and John Huber, U.S. Attorney for the District of Utah, to the Attorney General’s Advisory Committee (AGAC), effective immediately.
“The Attorney General’s Advisory Committee plays a crucial role in shaping the Justice Department’s approach to fighting crime, countering national security threats and securing equal justice under the law and I am pleased to welcome two new members to its ranks,” said Attorney General Lynch. “U.S. Attorneys John Huber and Peter Neronha have spent their careers tackling some of the most high-profile and difficult challenges we face, from political corruption and terrorism to gun violence and organized crime. I have come to know them both as outstanding law enforcement officers and devoted public servants and I look forward to drawing upon their insight and expertise in the months to come as we continue our work to create a stronger, safer, and more equal nation for all Americans.”
U.S. Attorney Neronha will fill the seat vacated by former U.S. Attorney for the Northern District of Ohio, Steven Dettelbach, who resigned on Feb. 5.
U.S. Attorney Huber will fill the seat vacated by former U.S. Attorney for the District of Kansas, Barry Grissom, who resigned on April 15.
U.S. Attorney Neronha was nominated by President Barack Obama on July 31, 2009, and confirmed by the U.S. Senate on Sept. 15, 2009, as the U.S. Attorney for the District of Rhode Island. In 2002, U.S. Attorney Neronha joined the U.S. Attorney’s Office for the District of Rhode Island. As an Assistant U.S. Attorney, he prosecuted criminal cases involving political corruption, white collar crime, drug and firearm offenses. When he joined the U.S. Attorney’s Office, he was named coordinator of the District’s Project Safe Neighborhoods, a Department of Justice initiative against gun crimes. Prior to being named U.S. Attorney, he was Chief of the District’s Organized Crime Strike Force. U.S. Attorney Neronha previously served on the AGAC during 2009-2011.
U.S. Attorney Huber was nominated by President Barack Obama on Feb. 4, 2015, and confirmed by the U.S. Senate on June 10, 2015, as U.S. Attorney for Utah. Prior to confirmation as the U.S. Attorney, U.S. Attorney Huber prosecuted a number of high profile federal cases and coordinated task forces that focused on violent crime and counter-terrorism. He also served as chief of the National Security Section in the U.S. Attorney’s Office before being asked to serve as the Executive Assistant U.S. Attorney, a member of the office’s executive management team.
The AGAC was created in 1973 to serve as the voice of the U.S. Attorneys and to advise the attorney general on policy, management and operational issues impacting the offices of the U.S. Attorneys.
U.S. Attorneys Huber and Neronha Appointed to Attorney General’s Advisory CommitteeRead the Press Release
WASHINGTON – Attorney General Loretta E. Lynch announced today the appointments of John W. Huber, U.S. Attorney for the District of Utah, and Peter F. Neronha, U.S. Attorney for the District of Rhode Island, to the Attorney General’s Advisory Committee (AGAC), effective immediately.
“The Attorney General’s Advisory Committee plays a crucial role in shaping the Justice Department’s approach to fighting crime, countering national security threats and securing equal justice under the law and I am pleased to welcome two new members to its ranks,” said Attorney General Lynch. “U.S. Attorneys John Huber and Peter Neronha have spent their careers tackling some of the most high-profile and difficult challenges we face, from political corruption and terrorism to gun violence and organized crime. I have come to know them both as outstanding law enforcement officers and devoted public servants and I look forward to drawing upon their insight and expertise in the months to come as we continue our work to create a stronger, safer, and more equal nation for all Americans.”
U.S. Attorney Huber will fill the seat vacated by former U.S. Attorney for the District of Kansas, Barry Grissom, who resigned on April 15.
U.S. Attorney Neronha will fill the seat vacated by former U.S. Attorney for the Northern District of Ohio, Steven Dettelbach, who resigned on Feb. 5.
U.S. Attorney Huber was nominated by President Barack Obama on Feb. 4, 2015, and confirmed by the U.S. Senate on June 10, 2015, as U.S. Attorney for Utah. Prior to confirmation as the U.S. Attorney, U.S. Attorney Huber prosecuted a number of high profile federal cases and coordinated task forces that focused on violent crime and counter-terrorism. He also served as chief of the National Security Section in the U.S. Attorney’s Office before being asked to serve as the Executive Assistant U.S. Attorney, a member of the office’s executive management team.
Mr. Huber is a veteran public servant who has served as a prosecutor at every trial court level in the State of Utah. After graduating with honors from the University of Utah, Mr. Huber went on to complete his juris doctor degree at the University of Utah’s S.J. Quinney College of Law. He began his prosecution career in the Weber County Attorney’s Office, and later served as the Chief Prosecutor for West Valley City before joining the United States Attorney’s Office in 2002.
U.S. Attorney Neronha was nominated by President Barack Obama on July 31, 2009, and confirmed by the U.S. Senate on Sept. 15, 2009, as the U.S. Attorney for the District of Rhode Island. In 2002, U.S. Attorney Neronha joined the U.S. Attorney’s Office for the District of Rhode Island. As an Assistant U.S. Attorney, he prosecuted criminal cases involving political corruption, white collar crime, drug and firearm offenses. When he joined the U.S. Attorney’s Office, he was named coordinator of the District’s Project Safe Neighborhoods, a Department of Justice initiative against gun crimes. Prior to being named U.S. Attorney, he was Chief of the District’s Organized Crime Strike Force. U.S. Attorney Neronha previously served on the AGAC during 2009-2011.
The AGAC was created in 1973 to serve as the voice of the U.S. Attorneys and to advise the attorney general on policy, management and operational issues impacting the offices of the U.S. Attorneys.
U.S. Attorney Neronha Appointed to Attorney General's Advisory CommitteeRead the Press Release
WASHINGTON – Attorney General Loretta E. Lynch announced today the appointments of Peter F. Neronha, U.S. Attorney for the District of Rhode Island, and John Huber, U.S. Attorney for the District of Utah, to the Attorney General’s Advisory Committee (AGAC), effective immediately.
“The Attorney General’s Advisory Committee plays a crucial role in shaping the Justice Department’s approach to fighting crime, countering national security threats and securing equal justice under the law and I am pleased to welcome two new members to its ranks,” said Attorney General Lynch. “U.S. Attorneys John Huber and Peter Neronha have spent their careers tackling some of the most high-profile and difficult challenges we face, from political corruption and terrorism to gun violence and organized crime. I have come to know them both as outstanding law enforcement officers and devoted public servants and I look forward to drawing upon their insight and expertise in the months to come as we continue our work to create a stronger, safer, and more equal nation for all Americans.”
U.S. Attorney Neronha will fill the seat vacated by former U.S. Attorney for the Northern District of Ohio, Steven Dettelbach, who resigned on Feb. 5.
U.S. Attorney Huber will fill the seat vacated by former U.S. Attorney for the District of Kansas, Barry Grissom, who resigned on April 15.
U.S. Attorney Neronha was nominated by President Barack Obama on July 31, 2009, and confirmed by the U.S. Senate on Sept. 15, 2009, as the U.S. Attorney for the District of Rhode Island. In 2002, U.S. Attorney Neronha joined the U.S. Attorney’s Office for the District of Rhode Island. As an Assistant U.S. Attorney, he prosecuted criminal cases involving political corruption, white collar crime, drug and firearm offenses. When he joined the U.S. Attorney’s Office, he was named coordinator of the District’s Project Safe Neighborhoods, a Department of Justice initiative against gun crimes. Prior to being named U.S. Attorney, he was Chief of the District’s Organized Crime Strike Force. U.S. Attorney Neronha previously served on the AGAC during 2009-2011.
U.S. Attorney Huber was nominated by President Barack Obama on Feb. 4, 2015, and confirmed by the U.S. Senate on June 10, 2015, as U.S. Attorney for Utah. Prior to confirmation as the U.S. Attorney, U.S. Attorney Huber prosecuted a number of high profile federal cases and coordinated task forces that focused on violent crime and counter-terrorism. He also served as chief of the National Security Section in the U.S. Attorney’s Office before being asked to serve as the Executive Assistant U.S. Attorney, a member of the office’s executive management team.
The AGAC was created in 1973 to serve as the voice of the U.S. Attorneys and to advise the attorney general on policy, management and operational issues impacting the offices of the U.S. Attorneys.
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Two Schuele Boys Gang Associates Sentenced on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. — U.S. Attorney William J. Hochul, Jr. announced today that Andre Wise, 37, of Buffalo, NY, who was convicted of conspiracy to distribute marijuana, was sentenced to time served (six months) by U.S. District Judge Richard J. Arcara. In addition, Eric Sears, 49, also of Buffalo, who was convicted of conspiracy to distribute cocaine, was sentenced to 15 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that between June 2013 and July 2014, Wise conspired with other Schuele Boys associates and gang members to distribute marijuana in the City of Buffalo. During that same time period, Sears conspired with other Schuele Boys associates and gang members including Michael Robertson to distribute cocaine in Buffalo.
The Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine and marijuana.
Wise and Sears are two of 28 Schuele Boys Gang members, associates and other individuals arrested in this case. To date, 17 of the defendants have been convicted.
Today’s sentencings are the culmination of an investigation on the part of the FBI's Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen. The task force includes representatives of the Amherst Police Department, the Buffalo Police Department the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Erie County Sheriff’s Department, the Hamburg Police Department, the Niagara Frontier Transportation Authority Police, the New York State Police, the Town of Tonawanda Police Department, U.S. Border Patrol, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, and U.S. Immigration and Customs Enforcement, Office of Enforcement & Removal Operations. Additional assistance was provided by the Drug Enforcement Administration; U.S. Customs and Border Protection, the United States Marshal Service, the Lackawanna Police Department, and the Niagara County Sheriff’s Department.
Two Lansing "Homeless" IRS Scam Defendants SentencedRead the Press Release
GRAND RAPIDS, MICHIGAN — Two additional defendants connected to a Lansing, Michigan area family-run scam were sentenced in federal court, U.S. Attorney Patrick Miles announced today. Defendant Qasim Ibn-Ishaq Verser was sentenced to a term of three years’ incarceration, three years of supervised release and restitution in the amount of $223,140.00. Defendant Tsiidzoyedu Callista Chiwocha was sentenced to a term of incarceration of 12 months plus one day, three years of supervised release and restitution in the amount of $24,385.00.
The scheme involved deceiving citizens into providing their personal identification information by promising them "free stimulus money." Many of the victims in this case were homeless persons or suffered from addiction and disability issues. The tax returns typically contained false reporting of undocumented income and abusive use of the Earned Income credit. Two more co-defendants in this tax fraud scam face sentencing in the next thirty days.
"My office has no tolerance for those who take advantage of the trust of the vulnerable only to scam the system and line their own pockets," stated U.S. Attorney Miles. He was joined in the announcement by Jarod J. Koopman, Special Agent in Charge, Internal Revenue Service – Criminal Investigation and David P. Gelios, Special Agent in Charge, FBI Detroit Division.
Complaints by local citizens prompted the Federal Bureau of Investigation to open a criminal investigation, including obtaining multiple search warrants to seize evidence of a tax fraud scheme. During the multi-year investigation, more than fifty subpoenas were issued to track down the tax refunds which had been paid into numerous bank accounts. In some instances, the personal identification information was used to file a tax return in a successive year. In an earlier prosecution, Taka Chiwocha-Crowell pled guilty to filing false tax returns and was sentenced to 42 months’ incarceration.
The IRS estimates that Chiwocha, Verser and their co-defendants were collectively responsible for filing 965 false tax returns, and collectively receiving payments of $1,403,367 in false tax refunds.
The investigation was conducted by the Lansing Office of the FBI and the Lansing Office of IRS Criminal Investigations. The case is being prosecuted by Assistant U.S. Attorney Michael A. MacDonald.
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Tumacacori Man Sentenced for Operating Human-Smuggling House with “Deplorable Conditions”Read the Press Release
TUCSON, Ariz. – Yesterday, Henry Joe Kane, 52, of Tumacacori, Ariz., was sentenced by U.S. District Chief Judge Raner C. Collins to two years in prison. Kane had previously pleaded guilty to conspiring to harbor illegal aliens for profit, a felony. Kane’s prison sentence will be followed by three years of supervised release.
In the summer and fall of 2015, agents arrested a series of people driving cars through the Border Patrol checkpoint on I-19 near Amado with undocumented aliens smuggled within. Agents were able to trace the smuggled people back to the Kane residence in Tumacacori. On Dec. 3, 2015, agents executed a search warrant on the Kane residence and found Kane along with six undocumented aliens - one of them an unaccompanied minor - who were staying there temporarily before being smuggled further north. The aliens were kept in what Judge Collins characterized as “deplorable conditions,” with rodent and pet droppings, along with evidence of cockroaches, accumulated throughout the trash-strewn residence. Kane was receiving payment from smugglers to keep people in the house.
The investigation was conducted by the Department of Homeland Security–Homeland Security Investigations. The prosecution was handled by Brian R. Decker, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-15-2330-TUC-RCC (LAB)
RELEASE NUMBER: 2016-047_Kane
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Three Minnesota Residents Sentenced in Marijuana Distribution and Money Laundering ConspiraciesRead the Press Release
United States Attorney Randolph J. Seiler announced that three Worthington, Minnesota, residents charged with conspiracies to distribute over 100 kilograms of marijuana and to launder money were sentenced on May 9, 2016, by U.S. District Judge Karen E. Schreier.
Somwang Wong Khanya, age 32, Inpaeng Phady, age 30, and Keophothone Rounoubon, age 23, were indicted on December 2, 2014. Khanya was charged with Conspiracy to Commit Money Laundering and Conspiracy to Distribute a Controlled Substance, and Phady and Rounoubon were charged with Conspiracy to Distribute a Controlled Substance.
Khanya pled guilty to Conspiracy to Commit Money Laundering on February 9, 2016, and was sentenced to 70 months in custody, to be followed by 3 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Phady pled guilty to the marijuana distribution conspiracy on February 9, 2016, and was sentenced to 30 months in custody, to be followed by 2 years of supervised release. She was also ordered to pay $100 to the Federal Crime Victims Fund.
Rounoubon pled guilty to the marijuana distribution conspiracy on February 5, 2016, and was sentenced to 23 months in custody, to be followed by 4 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
The defendants had a source of marijuana in California, and traveled there from Worthington on many occasions to purchase and bring back marijuana for distribution in the Sioux Falls, South Dakota, area and elsewhere. They also used other individuals to make the trips and to distribute marijuana. Law enforcement believes at least 500 pounds of marijuana was sold.
Khanya used various methods to launder the proceeds of the marijuana sales, including purchasing many expensive items, such as 63 designer handbags, purses, and wallets from Louis Vuitton, Coach, Chanel, Gucci, and Burberry having an approximate retail value of $62,000; purchasing gold jewelry with an approximate retail value of $54,000; running cash through casinos; structuring cash deposits into bank accounts to avoid the filing of currency transaction reports; and purchasing a 2009 Lexus IS250 and financing, titling, registering, and insuring it in other persons’ names.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Internal Revenue Service – Criminal Investigations. Assistant U.S. Attorney John E. Haak prosecuted the case.
The defendants were immediately turned over to the custody of the U.S. Marshals Service.
Texas Man Pleads Guilty to Sexual Abuse of Orphans While Working in MalawiRead the Press Release
A former general manager at an orphanage in Malawi pleaded guilty today to one count of engaging in illicit sexual conduct in a foreign place, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Richard L. Durbin Jr of the Western District of Texas.
Gerald Campbell, 66, of Odessa, Texas, pleaded guilty before U.S. Magistrate Judge David Counts of the Western District of Texas. Campbell’s sentencing has not yet been scheduled.
As part of the plea agreement, Campbell admitted to engaging in sexual acts with eight minors, all of whom were orphans living at the Victory Christian Children’s Home in Malawi between 1997 and 2009. Campbell admitted that he used his position as orphanage manager, with access to better accommodations and amenities such as hot water, to lure the minor victims, one of whom was suffering from the effects of HIV, into his house and sexually abuse them. Campbell also admitted that he knew that what he was doing was wrong and that he thought nobody would believe the minors if they reported the abuse. Furthermore, Campbell admitted that he sent money to some of the minors in an attempt to keep them from reporting the abuse to authorities.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations investigated the case with assistance from the Texas Department of Public Safety’s Criminal Investigations Division. Trial Attorneys Leslie Fisher and Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Brandi Young of the U.S. Attorney’s Office in the Western District of Texas are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Stolen Letter of Christopher Columbus' Historic Voyage to Americas Repatriated to Italian GovernmentRead the Press Release
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that a historic letter dating from 1493 and detailing Christopher Columbus’ voyage to the Americas was repatriated back to Italy at a repatriation ceremony held at 11:00 a.m. CET at the Bibliotecha Angelica, in Rome, Italy. Known as a “Plannck II” edition, this Columbus Letter had been stolen on an unknown date from a library in Florence, Italy, and subsequently donated to the U.S. Library of Congress in 2004. This theft and forgery was discovered in 2012, and today’s repatriation culminates joint Italian/U.S. efforts to return the original letter.[1]
“This repatriation is the result of the joint efforts of this office, HSI special agents assigned who are assigned to investigate cultural property theft, the Department of Justice Office of International Affairs, the Library of Congress, and the Carabinieri Tutela Patrimonio Culturale in Rome,” said U.S. Attorney Charles M. Oberly, III. “I commend all parties for their efforts in producing this positive outcome – particularly given the historical significance of this document. Documents such as the ‘Plannck II’ Columbus Letter are of significant cultural value as they provide historical facts about critical events in world history, and we are humbled to return this historic document back to its home country.”
“Preserving records and chronicles of our past, like this letter, is of utmost importance not only to the special agents who investigate these crimes, but to the global community at large,” said ICE Deputy Director Dan Ragsdale. “Today’s repatriation ceremony signals our continued commitment to these investigations and is a testament to our partnerships, both here and abroad.”
BACKGROUND
Christopher Columbus’s first transatlantic expedition left the harbor of Palos in Spain in three ships in August of 1492. Columbus returned to Spain in March 1493, concluding his memorable voyage of discovery to the Americas. Columbus’s report, in the form of a letter to his royal patrons Ferdinand and Isabella of Spain, was written while still on the high seas in February 1493, and was reportedly dated when he arrived in Lisbon on March 4, 1493, where he stayed for approximately ten days before sailing home to Spain. The letter was instrumental in spreading the news throughout Europe about Columbus’s voyage.[2]
Soon after Columbus’s arrival in Spain, printed versions of the letter began to appear and were issued across Western Europe, in Spain, Italy, France, Switzerland, and the Netherlands. Eleven editions were published in 1493 and six more editions were published between 1494 and 1497. They are, however, all quite rare today. Indeed, several of these editions survive in only a single copy, and there are believed to be no more than 80 surviving copies of all the various editions. Two of the aforementioned editions of the Columbus Letter were published by Rome printer Stephan Plannck in 1493. The editions are referred to as the Plannck I and Plannck II editions.
INVESTIGATION
In 2012, special agents with the Department of Homeland Security Investigations (“HSI”) received information that a “Plannck II” edition Christopher Columbus Letter had been stolen from the Riccardiana Library, located in Florence, Italy, and replaced with a forgery. The original “Plannck II” Columbus Letter, according to the source information, was believed to be located in the Library of Congress in Washington, D.C.
After receiving this information, HSI notified Italian law enforcement about this development, and a joint American-Italian investigation commenced. HSI agents, specializing in cultural property theft and based in Wilmington, Delaware, traveled to Florence, Italy to examine the suspected forgery. This inspection concluded that the Ricardiana Library’s “Plannck II” Columbus letter was a forgery. The inspection determined, among other things, that the text of the forged letter was a high-quality photocopy, that there was no original library stamp from the Ricardiana Library, and that the stitching patterns did not match original stitching patterns for known “Plannck II” Columbus Letters.
The investigation next focused on the “Plannck II” Columbus Letter which was located at the Library of Congress. This letter had previously been donated to the Library in 2004. Working closely with the Library’s staff, the letter was inspected by subject matter experts who concluded that this “Plannck II” Columbus Letter originally came from the Riccardiana Library. The experts found, among other things, evidence that chemical bleach had been used to remove the Ricardiana Library’s stamp, and that printed characters had been retouched to further disguise the letter’s provenance, or place of origin.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and Assistant United States Attorney Jamie M. McCall of the U.S. Attorney’s Office for the District of Delaware.
[1] The official title of the letter is Columbus, Christopher, Epistolae… De Insulis Indie supra Gangem nuper inventis (also listed as: Epistola de insulis nuper inventis), Rome, Stephan Plannck, 1493.
[2] B.W. Ife, Introduction to the Letters from America, (1992, 2002), Research at King’s College London, Online at http://www.ems.kcl.ac.uk/content/pub/b002.html, last accessed May 9, 2016.
Stilwell Man Sentenced to 71 Months for Possession of Firearm, Ammunition, Counterfeit ObligationRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that CHRISTOPHER DEAN JONES, a/k/a "Snake", age 36, of Stilwell, Oklahoma, was sentenced to 71 months imprisonment, followed by 3 years of supervised release for FELON IN POSSESSION OF FIREARM AND AMMUNITION, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2) and POSSESSION OF COUNTERFEIT OBLIGATIONS OR SECURITIES OF THE UNITED STATES, in violation of Title 18, United States Code, Section 472.
Charges arose from an investigation by the Cherokee Nation Marshal Service, the Cherokee County Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Secret Service. The defendant was indicted in November, 2015 and pled guilty in December, 2015.
The Indictment alleged that on or about October 1, 2015, within the Eastern District of Oklahoma, the defendant, CHRISTOPHER DEAN JONES, a/k/a Snake, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition, which had been shipped and transported in interstate commerce.
The Indictment further alleged that on or about October 1, 2015, within the Eastern District of Oklahoma, the defendant, CHRISTOPHER DEAN JONES a/k/a Snake, with intent to defraud, possessed a counterfeit obligation of the United States.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshals Service pending transportation to the designated federal facility at which he will serve his nonparoleable sentence.
Assistant United States Attorney Timothy Hammer represented the United States.
St. Louis Man Pleads Guilty to Failure to Register as A Sex OffenderRead the Press Release
On May 18, 2016, James C. Poynor, a thirty-seven year old St. Louis, MO, man pled guilty in federal district court, in East St. Louis, to Failure to Register as a Sex Offender, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today. Poyner is scheduled for sentencing on September 16, 2016, at which time he faces a maximum potential sentence of 10 years’ in prison and a fine up to $250,000, 5 years’ to life supervised release after his release from prison, and a mandatory special assessment of $100.
In 2007, a jury in Butler County, Missouri, found Poynor guilty of Child Molestation in the First Degree and Sexual Misconduct Involving a Child. Consequently, Poynor was required to register as a sex offender thereafter. Poynor signed a Missouri Sex Offender Registration Form on July 2, 2014, providing a St. Louis, Missouri address as his place of residence. Shortly thereafter, he traveled to Illinois, where he resided until his arrest on July 12, 2015, without updating his Missouri Sex Offender Registration Form or registering as a sex offender in the State of Illinois.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case was investigated by the United States Marshals Service and is assigned to Assistant United States Attorney Daniel T Kapsak.
Six Luzerne County Residents Indicted for Drug Trafficking and Firearm 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 indicted six individuals yesterday from Luzerne County, Pennsylvania for various narcotics trafficking and firearm offenses. The defendants are:
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Truman Jones, age 40, Wilkes-Barre, Pennsylvania;
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Al Dunlap, age 25, Wilkes-Barre;
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Jaquan Henderson, age 26, Edwardsville, Pennsylvania;
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Nadeurdra Mayhams, age 24, Edwardsville;
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Davon Beckford, age 21, Edwardsville; and
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Stephanie Walter, age 25, Edwardsville.
According to United States Attorney Peter Smith, the indictment charges all of the defendants with conspiring to distribute heroin and cocaine base (crack cocaine) in Luzerne County from on or about November 10, 2015 through May 6, 2016. Each of the defendants also is charged with one or more counts of distributing or possessing with intent to distribute heroin or crack cocaine. The indictment also charges defendants Jones, Dunlap and Mayhams with possessing firearms in furtherance of their narcotics trafficking activities. The indictment seeks forfeiture of the firearms, ammunition and currency recovered from the defendants.
Defendants Jones and Mayhams had previously been arrested and charged in federal criminal complaints premised on the same activities, on February 9, 2016 and May 6, 2016, respectively.
The investigation was conducted by the Bureau of Alcohol, Tobacco and Firearms Enforcement, the Pennsylvania State Police, and the Wilkes-Barre and Edwardsville Police Departments. The case is being prosecuted by Assistant United States Attorney Phillip J. Caraballo.
This case was brought as part of a district wide initiative to combat the nationwide epidemic of the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
This case was also brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district-wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend and prosecute individuals who commit violent crimes.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalties under federal law for the most severe charges are life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Scottsville Man Pleads Guilty to Federal Drug ChargeRead the Press Release
LYNCHBURG, VIRGINIA – A Scottsville man pled guilty today to a drug trafficking charge in the United States District Court for the Western District of Virginia in Lynchburg, announced United States Attorney John P. Fishwick Jr.
Jermaine Ayers, 35, of Scottsville, Virginia, pled guilty today to one count of possessing with the intent to distribute and distributing crack cocaine.
“We will continue to be vigilant in working with our partners in law enforcement to rid our communities of illegal drugs,” United States Attorney John P. Fishwick Jr. said today. “Keeping our communities free from abusive drugs is paramount to improving community safety.”
Ayers faces a maximum statutory penalty of up to 20 years in prison and/or a fine of up to $1 million. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors.
The investigation of the case was conducted by the Drug Enforcement Administration. Assistant United States Attorney Christopher Kavanaugh prosecuted the case for the United States.
Schaumburg Contractor Charged with Underpaying Union Employees and Underfunding Their Pension and Welfare FundsRead the Press Release
CHICAGO — The owner of a Schaumburg construction company intentionally underpaid his union-affiliated employees by more than $1.5 million while underfunding their pension and welfare funds by another $1 million, according to federal criminal charges filed today.
JOSEPH LAMPIGNANO, the co-owner of A Lamp Concrete Contractors Inc., assigned laborers to work on government-funded road construction projects without paying the union-negotiated wage rate, according to a criminal information filed in U.S. District Court in Chicago. From approximately 2008 to 2013, Lampignano violated collectively bargained agreements with the laborers’ union by failing to pay the union wage rate to certain laborers, underpaying them by a total of more than $1.5 million, according to the information.
Over the same time period, Lampignano also submitted false reports to the unions’ pension and welfare funds that underreported the number of hours worked by certain laborers, thereby lowering the amount of contributions that A Lamp was required to make to the funds on behalf of its employees, according to the information. The shortfall to the funds totaled more than $1 million, the information states.
The information charges Lampignano, 43, of Itasca, with one count of mail fraud. The charge carries a maximum penalty of 20 years in prison.
The information also describes a scheme in which Lampignano and his superintendent, GIOVANNI “JOHN” TRAVERSA, induced employees to re-pay a portion of settlement proceeds they received from the company in resolution of a civil lawsuit. In 2013 A Lamp paid a total of $545,357 to 24 employees to satisfy unpaid wages and resolve the suit brought by the union. Subsequent to paying the settlement funds, Lampignano, Traversa and others used their positions of authority to induce certain laborers to pay some of the money back to the company, according to the information. Several employees eventually kicked back a total of at least $64,000, the information states.
Traversa, 46, of Bartlett, is charged with one count of making false statements to the Federal Bureau of Investigation and the U.S. Department of Labor Office of Inspector General regarding the settlement kickbacks. The charge is punishable by up to five years in prison.
Arraignments for Lampignano and Traversa in U.S. District Court in Chicago have not yet been scheduled.
The information was 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; James Vanderberg, Special Agent-in-Charge of the Chicago Region of the Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; Jeffrey A. Monhart, Regional Director of the Chicago Regional Office of the Department of Labor - Employee Benefits Security Administration; and Cook County Sheriff Thomas J. Dart.
The public is reminded that an information contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant United States Attorney Brian Havey.
Information
Royersford Man Sentenced for Child Pornography Images Taken with Hidden CameraRead the Press Release
PHILADELPHIA – Kevin Rebbie, 57, of Royersford, PA, was sentenced yesterday to 240 months in prison for manufacturing child pornography, of which 180 months is a mandatory term. On December 22, 2015, Rebbie pleaded guilty to 19 counts of manufacturing child pornography, and one count of possession of child pornography. In addition to the prison term, U.S. District Court Judge Nitza I. Quinones Alejandro ordered a $2,000 special assessment and 20 years of supervised release.
Rebbie admitted that he had hidden a video camera under a sink in his bathroom for the purpose of videotaping children. After a 15-year old discovered the camera in February of 2015, the Limerick Township Police Department was contacted, and a search warrant was executed on Rebbie’s home. Seized were a total of 80 videos taken by Rebbie with a camera hidden in the bathroom, 19 of which captured minor boys and girls as they undressed, showered, and used the toilet. Rebbie saved the videos to his computer. He ultimately confessed to Limerick Township Police, was arrested in Montgomery County, and was charged federally.
“This afternoon a dangerous child predator was given a very long and appropriate sentence that will protect society for a long time,” said Memeger.
“Today’s lengthy prison sentence will hopefully begin the healing for the children robbed of their innocence at the hands of this predator,” said John Kelleghan, special agent in charge of HSI Philadelphia. “We will continue to aggressively target those who prey upon and sexually exploit our children. We owe it to the young victims in these cases, who will carry the emotional and physical scars of these crimes with them for the rest of their lives.”
Rebbie is awaiting trial in Montgomery County and Bucks County on child molestation charges.
The case was investigated by the Limerick Township Police Department in conjunction with Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Michelle Rotella.
Previously Convicted Hazleton Heroin Trafficker on Supervised Release Pleads GuiltyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Hazleton man pleaded guilty to a Criminal Information charging him with a heroin trafficking offense.
According to United States Attorney Peter Smith, Claudio Herrera, age 49, appeared before Magistrate Judge Karoline Mehalchick yesterday in Scranton and admitted to possessing with intent to distribute approximately 60 grams (approximately 1,800 doses) of heroin in Hazleton on November 19, 2015.
The charges stem from a joint investigation by the Pennsylvania State Police and the Federal Bureau of Investigation which culminated in the execution of a search warrant at Herrera’s residence. During the search the State Police seized approximately 60 grams of heroin and other drug paraphernalia. Herrera was immediately arrested and has been detained ever since in prison. The case is being prosecuted by John C. Gurganus.
At the time of his arrest, Herrera was serving the federal supervised release portion of a previously imposed federal drug trafficking sentence. In July 2011, U.S. District Court Judge Edwin M. Kosik sentenced Herrera to a term of fifty-four (54) months of imprisonment based on a guilty plea to heroin and crack cocaine trafficking.
At the guilty plea hearing yesterday before Magistrate Judge Mehalchick, Herrera acknowledged that he (1) had been selling heroin in the Hazleton area since the summer of 2015; (2) sold heroin to a State Police cooperating witness leading to the execution of the search warrant; and (3) intended to distribute the heroin seized in his home by the State Police. Herrera further acknowledged that he faces a maximum possible sentence of 20 years’ imprisonment for the offense, to be followed by an additional term of imprisonment for his supervised release violation.
This case was brought as part of a district-wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
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.
As mentioned above, the maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Previously Convicted Felon Sentenced to 475 MonthsRead the Press Release
PLANO, Texas – A 39-year-old Waxahachie, Texas man has been sentenced to federal prison for crimes committed in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Joshua Mark Ford was charged in an 8 count indictment by a federal grand jury for narcotics and firearms violations. Ford was convicted at trial of all 8 counts in January 2016. Ford was sentenced to 115 months for the narcotics offenses and 30 years on the firearms offenses that will run consecutively. The Honorable U.S. District Judge Marcia A. Crone pronounced the sentence earlier today.
According to information presented at trial, on November 23, 2012, Ford was stopped by Plano Police for a traffic offense. During the course of the stop, officers found a multitude of narcotics including methamphetamine and 2,150 grams of GHB (also known as the date rape drug). Ford was also in possession of 2 firearms at the time and had been previously convicted of a felony offense, which also involved GHB and firearms.
On June 26, 2013, Ford was arrested while attempting to sell 2 gallons of GHB. During the take down, Ford pulled a firearm from his waistband and attempted to shoot a police officer. Ford was shot during the incident.
This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Plano Police Department, the Denton Police Department, and prosecuted by Assistant U.S. Attorneys Tracey Batson and Ernest Gonzales.
Pennsylvania Man Charged with Additional ISIL-Related OffensesRead the Press Release
Defendant Originally Charged with Providing Material Support to ISIL
Jalil Ibn Ameer Aziz, 19, a U.S. citizen and resident of Harrisburg, Pennsylvania, was charged in a superseding indictment with solicitation to commit a crime of violence and transmitting a communication containing a threat to injure.
The additional charges were announced by Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Peter J. Smith of the Middle District of Pennsylvania.
On Dec. 22, 2015, Aziz was charged in an indictment with conspiring and attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. The following day, Aziz appeared before U.S. Chief Magistrate Judge Martin C. Carlson of the Middle District of Pennsylvania and entered a plea of not guilty.
According to the indictment, from July 2014 to Dec. 17, 2015, Aziz knowingly conspired to provide, provided and attempted to provide material support, including personnel and services, to ISIL. The superseding indictment alleges that during the same time period, Aziz solicited, commanded, induced and endeavored to persuade others to kill and attempt to kill officers and employees of the United States. The superseding indictment further alleges that he knowingly tweeted the names, addresses, photographs and military branches of approximately 100 U.S. servicemembers to followers and viewers of his Twitter account. The communication also contained threats to injure the servicemembers, stating “kill them in their own lands, behead them in their own homes, stab them to death as they walk their street thinking that they are safe.”
Aziz was initially charged with conspiring and attempting to provide material support to ISIL in a complaint that was unsealed on Dec. 17, 2015, following his arrest. According to the complaint, Aziz used at least 57 different Twitter accounts to advocate violence against the United States and its citizens, to disseminate ISIL propaganda and to espouse pro-ISIL views. On at least three occasions, Aziz allegedly used his Twitter accounts and other electronic communication services to assist persons seeking to travel to and fight for ISIL. In one instance, Aziz allegedly acted as an intermediary between a person in Turkey and several well-known members of ISIL.
According to the allegations in the complaint, Aziz passed location information, including maps and a telephone number, between these ISIL supporters. A search of a backpack located in Aziz’s closet identified five loaded M4-style high-capacity magazines, a modified kitchen knife, a thumb drive, medication and a ski mask.
The charges contained in an indictment are only allegations, and the defendant is presumed to be innocent unless and until found guilty. The maximum sentence for both conspiring and attempting to provide material support is 20 years in prison and a $250,000 fine. The maximum sentence for the solicitation count is 20 years in prison, a $250,000 fine, a term of supervised release of five years and a $100 special assessment. The maximum sentence for the transmitting a threat to injure count is five years’ in prison, a $250,000 fine, a term of supervised release of three years and a $100 special assessment.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, and the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being investigated by the FBI’s Joint Terrorism Task Force (JTTF), which includes the Pentagon Force Protection Agency and the Pennsylvania State Police, with assistance from the Harrisburg Bureau of Police. This case is being prosecuted by Trial Attorneys Robert Sander and Adam L. Small of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorney Daryl F. Bloom of the Middle District of Pennsylvania.
Aziz Superseding Indictment
Payroll Service Company Owners Sentenced to Prison for Stealing Money Set Aside by Clients to Pay Federal and State TaxesRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced today payroll company owners Kevin Carden, age 56, to six years in prison for wire fraud, and his wife Beverly Carden, age 54, both formerly of Bel Air, Maryland, to five years in prison for mail fraud, both followed by three years of supervised release, arising from a scheme to steal money from their clients, the IRS and the Maryland State Comptroller.
The Cardens also each previously pleaded guilty to filing a false tax return. Judge Garbis announced that he will sentence the Cardens tomorrow for the tax offenses, which he indicated will run concurrent with the fraud sentences, adding no additional prison time. Judge Garbis also announced that after hearing additional evidence and argument tomorrow, he will determine the specific amount of losses arising from the fraud and tax schemes for which the Cardens are responsible for paying restitution.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.
“When customers realized that the money they entrusted to AccuPay was not being used as intended to pay their taxes, Kevin Carden misled them with false cover stories,” said U.S. Attorney Rod J. Rosenstein. “What really happened was that Kevin and Beverly Carden took money intended for the IRS and spent it themselves, causing millions of dollars in losses to their customers.”
“It is unacceptable to help yourself to other people’s money and violate their trust,” said Thomas Jankowski, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Today’s sentencings serve as reminders that this criminal behavior was inexcusable and IRS-CI is committed to bringing culpable individuals to justice.”
According to their plea agreements, until its closure in March 2013, Kevin and Beverly Carden owned and operated AccuPay, Inc., which provided payroll and payroll tax services to small and medium businesses. Kevin Carden ran the company’s “tax department,” which was responsible for handling the employment tax portion of the business. AccuPay received funds from its clients that it held in trust to pay over to the IRS and the Comptroller of Maryland for AccuPay’s clients’ employment taxes. Kevin Carden was responsible for transferring the client funds to make the required tax payments.
During the course of the fraud scheme, which lasted from 2010 to March 2013, AccuPay withdrew from the clients’ funds the full amount of payroll taxes owed, but then paid the taxing authorities only a portion of the funds. While AccuPay falsely represented to its clients that it paid all of the taxes owed, in fact, Beverly Carden diverted some of those funds to a joint personal bank account that she and her husband maintained which the couple then used to pay personal expenses.
Because of the Cardens’ failure to fully pay existing tax obligations owed by their clients, both the federal and state taxing authorities imposed interest and penalties on AccuPay’s clients, thereby further increasing the magnitude of their tax obligations. Thus, the payments that the Cardens did make to the taxing authorities in part were being applied to pay interest charges and penalties imposed as a result of underpayments earlier in the scheme.
The Cardens used various methods to cover up their diversion of funds and to allay their clients’ concerns when the clients learned that the taxing authorities had apparently not been paid the full amounts they were supposed to receive. For example, in the instances in which AccuPay’s clients confronted employees at AccuPay about the underpayment of their taxes, Kevin Carden either told those clients that the underpayment would be addressed or (in some cases) avoided their inquiries. Kevin Carden further represented to those clients with whom he spoke that the underpayment was due to (1) a mistake by the taxing authority; (2) an error made by AccuPay employees; and/or (3) problems with the software AccuPay used to file tax returns. These representations were often untrue.
In addition, as a further means of covering up their diversion of funds and allaying their clients’ concerns, in late 2011 AccuPay sent a letter to their clients stating that they had hired a chief financial officer (CFO) to audit tax deposits and filings for all tax clients back to 2009 “for correctness, compliance, and completeness.” In fact, that individual was not AccuPay’s CFO, but rather was an independent tax preparer the Cardens had hired to prepare their own personal taxes and the corporate taxes of AccuPay, rather than those of the clients.
In 2012, a client of AccuPay confronted representatives of AccuPay with the fact that the company had failed to pay over $300,000 in taxes owed from 2008 to 2012. In response, AccuPay paid the client’s tax deficiencies.
The Cardens also admitted that they filed a false individual tax return for 2011 in which they did not report the amount of payroll taxes that had been diverted from AccuPay’s clients to the Cardens’ personal account. Beverly Cardin also admitted that she did not file a 2012 individual tax return.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the IRS - Criminal Investigation and FBI for their work in the investigation. Mr. Rosenstein praised the Bel Air Police Department for their assistance in the investigation, and thanked Assistant U.S. Attorneys Evan T. Shea and Jefferson M. Gray, who prosecuted the case.
Overland Park Couple Arrested in Bank Fraud, Citizenship Fraud CaseRead the Press Release
KANSAS CITY, KAN. - A married couple from India who allegedly obtained U.S. citizenship by fraud have been arrested on bank fraud and immigration charges, Acting U.S. Attorney Tom Beall said today.
The couple, Ajay Dave, 60, and Parul Dave, 59, who live in Overland Park, are scheduled to make an initial appearance in the case at 2:30 p.m. today in Kansas City, Kan., before Chief U.S. Magistrate Judge James P. O’Hara. A federal grand jury returned a sealed indictment against the Daves last week in which the Daves are charged with two counts of bank fraud, two counts of making false statements on their applications to become U.S. citizens, and four counts related to obtaining their U.S. citizenship by fraud.
If convicted, the defendants face up to 30 years in prison, $1 million in fines, and forfeiture of residential real estate identified in the case. They also face revocation of their United States citizenship and possible deportation to India.
The indictment alleges that the Daves provided false financial information and bogus tax returns in April 2010 to First Federal Bank in Overland Park to obtain a $417,000 mortgage loan on an Overland Park residence. It also alleges they engaged in similar conduct in July 2010 to obtain a $238,500 refinance of a home they own in Topeka, Kan., from Topeka’s Heritage Bank.
Then, starting in 2012, when the Daves, who came to the United States in 1999, began the process of seeking naturalized citizenship, they failed to disclose their alleged false statements to the banks, according to the indictment. Parul Dave became a U.S. citizen on October 26, 2012; Ajay Dave, who before he was naturalized was known as Ajaykumar Balwantrai Dave, was sworn in as a U.S. citizen on August 23, 2013.
Beall said the case arose from a joint investigation of the Kansas Department of Revenue; the Department of Homeland Security’s Citizenship and Immigration Services (Fraud Detection and National Security Office); Homeland Security Investigations; U.S. Office of Labor Racketeering and Fraud Investigation; Kansas Department of Labor Fraud Investigation Division; Kansas Alcoholic Beverage Control; and the Overland Park Police Department. The case is being prosecuted by Assistant U.S. Attorney Brent Anderson.
As in any criminal case, defendants are presumed innocent until and unless proven guilty. An indictment merely alleges criminal conduct and is the document by which prosecution of the case goes forward.
Olmstep Twp. woman charged with embezzling $270,000 from bankRead the Press Release
A woman from Olmsted Township was charged with embezzling from a bank, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland Office.
Betti J. Haviland, 37, of Olmsted Township, Ohio, is charged with theft, embezzlement, or misapplication by a bank officer or employee. Specifically, the information alleges that from September 28, 2007 through April 3, 2015, Haviland stole $270,685 from Lorain National Bank, where she was employed as a vault teller.
The case is being prosecuted by Assistant U.S. Attorney Matthew B. Kall following an investigation by the Federal Bureau of Investigation.
If convicted, the defendant's sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violation.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Northampton County Woman Charged with Possession of SteroidsRead the Press Release
PHILADELPHIA - Kathleen Fields, 43, of Bethlehem, Pennsylvania was charged by Information, filed on May 16, 2016, with one count of possession with intent to distribute anabolic steroids, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 10 years in prison, a possible fine, supervised release, and a $100 special assessment.
The case was investigated by U.S. Postal Inspection Service and is being prosecuted by Assistant United States Attorney Andrea G. Foulkes.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
New Port Richey Man Indicted for Impersonating A U.S. SenatorRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Sidney C. Hines (67, New Port Richey) with five counts of false impersonation of a federal officer or employee of the United States. If convicted, he faces a maximum penalty of three years in federal prison for each count.
According to the indictment, Hines received a mortgage loan secured by his home in New Port Richey and subsequently fell behind on his mortgage payments. In an effort to help delinquent borrowers such as Hines, the Federal National Mortgage Association (“Fannie Mae”) created the HomeSaver Advance (“HSA”) loan program. HSA allowed delinquent borrowers who were able to make future scheduled mortgage payments, but were unable to pay past due amounts immediately, to cure the delinquency by entering into an unsecured loan for the amount in the arrears. On October 15, 2008, Hines obtained a HSA loan for $5,863.73.
Hines failed to make the required payments on his HSA loan and the loan was turned over to ClearSpring Loan Services, a debt collection agency. Beginning in March 2013 and continuing through the end of 2014, Hines impersonated a sitting United States Senator on multiple occasions in telephone calls that he made to ClearSpring. During those calls, acting as the Senator, he stated that Hines’s HSA loan was paid in full and that the loan should be removed from his credit report.
An indictment is merely a formal charge that a defendant has committed a violation of one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Capitol Police and the Federal Housing Finance Agency – Office of Inspector General. It will be prosecuted by Special Assistant United States Attorney Chris Poor.
New Orleans Couple Plead Guilty to Drugs, Firearms and Obstruction ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that GROSS WILLIAMS, age 49, and his wife, KATHLEEN WILLIAMS, age 46, both residents of New Orleans, pled guilty today. GROSS WILLIAMS pled guilty to conspiracy to distribute a kilogram or more of heroin and five kilograms or more of cocaine, as well as illegal possession of a firearm by a convicted felon. KATHLEEN WILLIAMS pled guilty to obstruction of justice for destroying a cellular phone used by GROSS WILLIAMS in his drug dealing activity.
According to court documents, GROSS WILLIAMS was a large-scale narcotics dealer. He operated a used car business in Arabi that served as a cover and means of laundering his drug proceeds. Law enforcement officers seized over $425,000 in cash and a .40 caliber semi-automatic pistol from the WILLIAMS’s bedroom during a search, and later discovered another $240,000 in cash in a safe deposit box that KATHLEEN had opened in her name. Through a detailed financial investigation, law enforcement was able to show that GROSS deposited hundreds of thousands of dollars in cash into the bank accounts of his used car business despite selling only a few midrange models each year. KATHLEEN also admitted that she destroyed her husband’s “dope phone” the day that he was arrested.
GROSS WILLIAMS faces a minimum term of imprisonment of 20 years to a maximum of life, a fine of up to $20,000,000 and ten years of supervised release following any term of imprisonment. KATHLEEN WILLIAMS faces a maximum term of imprisonment of twenty years, a fine of up to $25,000, and 3 years of supervised release following any term of imprisonment. U.S. District Judge Kurt D. Engelhardt set sentencing for August 17, 2016.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration, the Federal Bureau of Investigation, the St. Bernard Parish Sheriff’s Office, the New Orleans Police Department, and Louisiana Probation and Parole, in investigating this matter. Assistant United States Attorneys David Haller and Hayden Brockett are in charge of the prosecution.
New Hartford Businessman Pleads Guilty to Filing False Tax ReturnsRead the Press Release
SYRACUSE, NEW YORK – Dino Tucciarone, 57, of New Hartford, New York, pled guilty today to filing a false federal income tax return, announced United States Attorney Richard S. Hartunian.
As part of his guilty plea, Tucciarone admitted that he owned and operated Disaster Services, Inc. in New Hartford, New York and earned substantial income over and above what he reported on his personal federal income tax returns. The defendant admitted that he made material misrepresentations in his tax returns by substantially under reporting his income and tax liability for the years 2007, 2008 and 2009. The unreported income resulted in additional tax due and owing to the IRS totaling more than $250,000.00.
At sentencing, Tucciarone faces a maximum sentence of 3 years in prison, a fine of up to $250,000, and a term of supervised release of at least 1 year. As part of his guilty plea, Tucciarone also agreed to pay restitution to the Internal Revenue Service for all back taxes due for tax years 2007 through 2009 as well as payment of all accrued penalties and interest. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Sentencing is scheduled for September 15, 2016.
This prosecution resulted from an investigation conducted by the Internal Revenue Service Criminal Investigation Division, Syracuse, New York. The case was prosecuted by Assistant United States Attorney Ransom P. Reynolds.
Naples Man Pleads Guilty in Connection with “Operation Fraudulent Pain”Read the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces that Wisler Cyrius (35, Naples) today pleaded guilty to conspiracy to commit mail fraud and conspiracy to commit money laundering. He faces a maximum penalty of 20 years in federal prison for each count. In addition, he has agreed to pay restitution to the victim automobile insurance companies and forfeit the proceeds of the offenses.
Cyrius is the fourth individual to plead guilty following the culmination of a two-year joint federal and state law enforcement investigation, dubbed “Operation Fraudulent Pain.” The investigation disrupted five unlicensed chiropractic clinics that had received more than $2 million in ill-gotten Personal Injury Protection (PIP) payments from automobile insurance companies. Anouce Toussaint (33, Naples) previously pleaded guilty to conspiracy to commit mail fraud and conspiracy to launder money. Garry Joseph (37, Naples) and Maria Victoria Lopez (44, Moore Haven) previously pleaded guilty to conspiracy to commit mail fraud.
According to the plea agreements, Tamiami Pain and Rehab LLC, First Choice Pain and Rehab Inc., Parkway Medical and Rehab LLC, T&C Consultants d/b/a Collier Chiropractic Center, and Immokalee Pain & Rehab LLC were unlicensed chiropractic clinics operating in Naples and Immokalee. At each clinic, conspirators paid licensed health care practitioners who, in exchange for payments, allowed their names to be listed on official documents as though they were the true owners of the clinics. The conspirators controlled the finances and oversaw and managed the clinics' day-to-day business, including the insurance billing practices.
According to his plea agreement, Joseph conspired to defraud automobile insurance companies of approximately $2 million from October 2012 to February 2015. He and a co-conspirator were the true owners of Parkway Medical and Rehab and Collier Chiropractic Center. They caused automobile insurance companies to be billed for claims that violated Florida law because the clinics were not properly licensed. They also submitted claims for unnecessary treatments and/or services that had not actually been rendered.
From June 2013 to February 2015, Cyrius and Toussaint conspired with others to solicit individuals to participate in staged motor vehicle accidents in exchange for compensation. The conspirators also sent automobile insurance companies claims for unnecessary services rendered to purported accident victims who had been paid to participate in the staged accidents. The conspirators also submitted claims to automobile insurance companies that were unlawful under Florida law because the clinics submitting the claims were not properly licensed. Cyrius and Toussaint used a shell corporation to conduct financial transactions designed to conceal the proceeds and to avoid reporting requirements.
According to her plea agreement, between October and December 2014, Lopez conspired with others to defraud automobile insurance companies. She had worked in billing and customer service at more than one clinic operated by her co-conspirators. Lopez was coached to mislead others about the true ownership of clinics and knew that non-health practitioners were directing medical treatments in order to maximize claims for payment. In addition, knowing that a patient had participated in a staged accident, Lopez coached that patient to receive medically unnecessary treatment. She directed another patient not to tell his insurance company that he was being compensated for receiving unnecessary treatment.
Joseph is scheduled to be sentenced on June 27, 2016. Toussaint and Lopez are scheduled to be sentenced on July 11, 2016. Each faces a maximum penalty of 20 years in federal prison. The United States will also seek a forfeiture money judgment from each defendant equal to the amount of proceeds obtained as a result of each offense.
A fifth individual, Nesly Loute, was also charged in Operation Fraudulent Pain. He is scheduled for trial in July 2016.
This case was investigated by the Federal Bureau of Investigation, the State of Florida’s Department of Financial Services Division of Insurance Fraud, the Internal Revenue Service - Criminal Investigation, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Assistance was also provided by the Florida Highway Patrol, the National Insurance Crime Bureau, the Florida Department of Health, and the State Attorneys’ Offices for the 13th and 19th Judicial Circuits. The following insurance companies also assisted with the case: Travelers, Nationwide, Bristol West, Esurance, Windhaven, Farmers, Direct General, Allstate, State Farm, Progressive, Geico, Infinity, and Foremost. It is being prosecuted by Assistant United States Attorney David G. Lazarus.
Montgomery County Man Pleads Guilty to Tax ChargesRead the Press Release
PHILADELPHIA - Francis J. Bass, 61, of Montgomery County, PA, a former employee of Lundy Law in Philadelphia, pleaded guilty today to four counts of subscribing a false federal income tax return. As the Intake Coordinator for the law firm, he referred personal injury clients to medical providers and hired private investigators. In exchange for these referrals, Bass received payments directly from the medical providers and investigators selected by him. He received approximately $500 per client.
During tax years 2009 through 2013, Bass understated the income on his tax returns by failing to report the majority of the funds he received from these medical providers. To conceal the source of the funds he received for his referrals, Bass created a fictitious Schedule C “investigation” business, on which he reported a minimal amount of the referral payments.
For tax years 2009 through 2012, Bass failed to report approximately $483,901 in income and owed additional taxes of approximately $126,104. As part of his plea agreement, Bass agreed that he owed an additional $77,360 in taxes for approximately $341,264 in income for tax year 2013. The total amount of taxes owed to the IRS for 2009 through 2013 is approximately $203,464.
A sentencing hearing is scheduled for September 13, 2016. The defendant faces a maximum possible sentence of 12 years in prison, one year of supervised release, a possible fine, and a $400 special assessment
The case was investigated by the Internal Revenue Service Criminal Investigations and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Terri A. Marinari and David J. Ignall.
Mexican National Sentenced for Firearm ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ERIC DE JESUS MENDOZA-MARTINEZ, age 20, a citizen of Mexico, was sentenced today after previously pleading guilty to a one-count Indictment for violations of the Federal Gun Control Act.
U.S. District Judge Martin Feldman sentenced MENDOZA-MARTINEZ to serve ten months imprisonment and ordered to pay a special assessment of $100. Following his term of imprisonment, MENDOZA-MARTINEZ will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on or about November 7, 2015, MENDOZA-MARTINEZ, an alien present illegally in the United States, was found in possession of a Taurus .380 caliber semi-automatic pistol.
U.S. Attorney Polite praised the work of the Homeland Security Investigations of the U.S. Department of Homeland Security, in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
Menominee Man Sentenced for Facilitating Underage ProstitutionRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on May 17, 2016, Brian L. Kelley (age: 36) of the Menominee Indian Reservation was sentenced to federal prison by Chief United States District Judge William C. Griesbach. Kelley had previously entered a guilty plea for inducing and enticing an underage victim to engage in prostitution contrary to Title 18, United States Code, Section 2422(b). According to the plea agreement and other documents filed with the court, Kelley used his position as a barber shop owner and bait shop proprietor to hire minors for the purpose of paying them in return for sexual activities.
In pronouncing sentence, Chief Judge Griesbach noted the serious nature of the charges and that the sentence is in the best interest of the public and especially the victims, stating “the real damage here is to the victims”. Ultimately, Kelley was sentenced to 72 months in federal prison followed by 10 years of supervised release.
The case was investigated by the Menominee Tribal Police and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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Maryland man convicted of heroin delivery causing deathRead the Press Release
MARTINSBURG, WEST VIRGINIA – A federal jury returned a guilty verdict today convicting Lateef Fisher, 38, of Hagerstown, Maryland, of selling heroin that resulted in the death of another, United States Attorney William J. Ihlenfeld, II, announced.
Evidence presented at the two day trial indicated that Fisher, also known as “Apple,” conspired with another individual to sell heroin in June 2014 in Berkeley County, West Virginia. That heroin led to the death of a 27 year-old male victim.
As a result of the conviction, Fisher faces a minimum of 20 years in federal prison and up to life."Heroin has taken the lives of far too many people," said U.S. Attorney Ihlenfeld. "We will continue to be aggressive in our pursuit of those who sell heroin, especially when it results in the death of another."
Assistant U.S. Attorneys Paul Camilletti and Anna Krasinski prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.Licensed Professional Counselors Sentenced for Roles in $9.5 Million Fraudulent Billing Health Care Fraud Scheme to Siphon and Steal Money from Workers’ Compensation ProgramRead the Press Release
DALLAS — Two licensed professional counselors from the Dallas-Fort Worth metroplex who pleaded guilty to their respective roles in a massive health care fraud scheme that involved bribes, unnecessary medical treatment, fraudulent billing, and the falsification of medical documents to fraudulently bill the federal government, through the Department of Labor’s (DOL) Office of Worker Compensation Programs (OWCP), more than $9.5 million, were sentenced this week, announced U.S. Attorney John Parker of the Northern District of Texas.
The lead defendant charged in the case, licensed professional counselor Larry Washington, 63, of Desoto, Texas, was sentenced on Monday to 78 months in federal prison and ordered to pay approximately $7.7 million in restitution. He pleaded guilty in January 2016 to one count of conspiracy to commit health care fraud and must surrender to the Bureau of Prisons on July 19, 2016. Washington ran businesses known as AAA Mental Health, LLC, Mind Spa, Inc., Solutions Health and Rehabilitation, and Convergence Emergence Diversion.
Another licensed professional counselor, Henrietta Price, 51, of Cedar Hill, Texas, was sentenced on Monday to six months home confinement, three years of probation and was ordered to pay $199,796.93 in restitution. She, too, pleaded guilty to one count of conspiracy to commit health care fraud. Price provided counseling services at Mind Spa, Inc. and also treated patients at her own company, Lifeline Counseling.
Through his businesses, Washington provided patients with counseling, pain management, chiropractic services, physical therapy and massage services. He sought out and recruited his patients who were former postal and VA employees who had suffered on-the-job injuries that prevented them from returning to work. Washington knew that even though these individuals had once suffered a work-related injury, their injuries were not severe enough to warrant continued OWCP payments.
Twenty-one claimants, four doctors or medical providers, a senior claims examiner at DOL, a claims representative, and a medical provider’s employee were charged in the scheme. All but two defendants have pleaded guilty to their respective roles in the scheme.
In total, the defendants were able to collectively fraudulently bill the federal government through the OWCP for more than $9.5 million and receive more than $8.7 million in government payments based on their fraudulent billing. The DOL made approximately $11.4 million in payments to these claimants for their compensation and medical services. The government anticipates that as a result of the convictions, it will also prevent the payment of an estimated $11 million in future payments to the claimant defendants.
The scheme began with former or current government employees – U.S. postal employees or Veterans Affairs (VA) employees – who claimed that they had been injured during the course of their work duties. Each of these claimants claimed they had suffered an on-the-job injury, ranging from strains to trigeminal neuralgia, which prevented them from returning from work.
Under OWCP, these “claimants” could receive workers’ compensation payments (typically between 66% and 75% of pre-disability wages, tax free) and paid medical treatment, if a qualified doctor deemed the medical services necessary to treat the injury and if the injury prevented the claimant from working.
A DOL claims examiner would review the claim and its documentation, and either approve or reject the claim. In certain circumstances, if an on-the-job injury caused permanent damage, a claimant could have received a “scheduled award” – that is, a lump sum payment meant to compensate that individual for their injury. These awards often amounted to several hundred thousand dollars. Claimants often sought the help of professionals, typically former DOL claims examiners in filing their claims and in getting their claims approved. These “claims representatives” either charged claimants a percentage of any paid claim or a flat rate fee. When doctors or other medical providers treated the claimants, they could bill OWCP for their work if they submitted the proper documentation and certification.
The investigation was led by the U.S. Postal Service Office of Inspector General, and the Department of Labor Office of Inspector General, with assistance from Internal Revenue Service Criminal Investigation, U.S. Treasury Office of Inspector General, Social Security Administration Office of Inspector General/Cooperative Disability Investigations Unit, and the U.S. Department of Veterans Affairs Office of Inspector General.
Assistant U.S. Attorney P.J. Meitl and Special Assistant U.S. Attorneys Jennifer Bray and Nicola Dana are in charge of the prosecution.
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Justice Department Reaches Extension Agreement to Improve Georgia’s Developmental Disability and Mental Health SystemRead the Press Release
The Justice Department today announced that it has entered into an extension agreement with the state of Georgia to improve the quality and availability of services for people with developmental disabilities living in the community and to provide supported housing to individuals with significant mental illness who need it.
The extension agreement builds upon a 2010 settlement agreement resolving a lawsuit brought by the department under the Americans with Disabilities Act and the Supreme Court’s Olmstead decision. The case involves Georgia’s provision of community services for individuals with mental illness and developmental disabilities. The department found in 2009 that Georgia was forcing people with disabilities into state hospitals instead of providing community-based services, in violation of the ADA’s integration requirements. In January, the department alleged that Georgia was not in compliance with the 2010 agreement, both regarding helping people move from institutions into their communities and regarding quality and oversight of community-based services. In light of the agreement and the significant commitments Georgia has made in it, the department has agreed to withdraw its motion to enforce that earlier agreement.
The agreement will resolve the seven areas of alleged deficiency identified by the department in its January court filing. Under the agreement, Georgia will help people with developmental disabilities move from its state hospitals to integrated settings, consistent with their needs and preferences; will identify and address each individual’s needs in the community prior to discharge; and will monitor services and track outcomes for people after their discharge. For individuals who have moved from the state hospitals to the community, Georgia will monitor their health and wellbeing to ensure that emerging needs are met in a timely fashion. The extension agreement also calls for creation of at least 675 new Medicaid home- and community-based waiver slots as alternatives to placement in a facility. Georgia will provide clinical oversight and enhanced support coordination for individuals with developmental disabilities served by the state.
The extension agreement enhances quality oversight, requiring specific actions in the event of serious incidents and corrective actions to address deficiencies. The state will collect and review data to identify any trends and develop quality improvement initiatives. In addition, Georgia will require providers to develop risk management and quality improvement programs.
Under the agreement, at least 600 additional individuals with mental illness will receive bridge funding and at least 633 will receive housing vouchers under the Georgia housing voucher program. By June 30, 2018, the state is to have capacity to provide supported housing to any of the people with mental illness covered by the settlement agreement that need it. The extension agreement requires a referral procedure to supported housing for people who need it leaving the state hospitals, jails, prisons, emergency rooms or homeless shelters.
“By strengthening the services provided by Georgia’s mental health system, this agreement will make a difference in the lives of Georgians with developmental disabilities or mental illness who wish to build lives in the community,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We look forward to working with Georgia to deliver on the promise of community integration enshrined in the ADA.”
“During the past five years, the State of Georgia has significantly changed the way it provides services for people with disabilities,” said U.S Attorney John A. Horn of the Northern District of Georgia. “Recognizing that we have more work to do in this area, I am encouraged by Georgia’s willingness to continue to partner with the Department of Justice and stakeholders to improve the quality of services for people with developmental disabilities and significant mental illness in our community.”
The Civil Rights Division enforces the ADA, which authorizes the Attorney General to investigate whether a state is serving individuals in the most integrated settings appropriate to their needs. Please visit www.justice.gov/crt to learn more about the Olmstead decision, the ADA and other laws enforced by the Justice Department’s Civil Rights Division.
The agreement was secured due to the efforts of Civil Rights Division’s Special Litigation Section and the U.S. Attorney’s Office of the Northern District of Georgia.
Georgia ADA Extension Agreement
Jefferson City Physician Pleads Guilty to Making False StatementsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Jefferson City, Mo., physician has pleaded guilty in federal court to making false statements in order to receive payments on health care claims.
Randall E. Meyer, 60, of Jefferson City, waived his right to a grand jury and pleaded guilty before U.S. Chief District Judge Greg Kays on Friday, May 13, 2016, to a federal information that charges him with making false statements related to health care matters.
Meyer, a physician and surgeon, is a partner at Central Missouri Cardiology, P.C., a cardiology practice group in Jefferson City. Under the terms of his plea agreement, Meyer must surrender his medical license two weeks prior to his sentencing hearing, which has not yet been scheduled.
This case involves Meyer’s treatment of 14 patients from Jan. 1 through Dec. 31, 2010. Meyer admitted that he claimed the percentage of the patients’ lesions and stenosis in their arteries was 70 percent or greater when, in fact, it was substantially less. Meyer used his misstatement of the significance of the lesions and stenosis to ensure the claims would be paid. He then submitted (or caused to be submitted) claims for payment for treatments or services to health care benefit programs.
The health care benefit programs would not have allowed, reimbursed, or paid those claims if the programs had known Meyer was inflating the percentage of patient lesion and stenosis.
The estimated loss amount for purposes of sentencing is more than $95,000 but less than $150,000. Under the terms of his plea agreement, Meyer must pay $76,369 in restitution, based on the estimated loss to the private insurers who reimbursed the claims. However, the government has not waived its right to pursue civil or administrative remedies with respect to the claims Meyer submitted (or caused to be submitted) to federal payors through the False Claims Act.
Explanation of Medical Terms
Stenosis is an abnormal narrowing in a blood vessel. A stent is a tube or other device placed in the body to create a passage between two hollow spaces and/or widen a narrow blood vessel. Coronary stents are placed during percutaneous coronary intervention (PCI), also known as an angioplasty. The most common use for coronary stents is in the coronary arteries, into which a bare-metal stent or drug-eluting stent is inserted. When a patient is determined to have stenosis to a degree that justifies intervention, and is undergoing a PCI, a physician must accurately document and maintain in the medical record his or her findings for the need to treat the patient, and any intervention and subsequent treatment.
This case is being prosecuted by Senior Litigation Consultant Gregg R. Coonrod and Assistant U.S. Attorney Cindi Woolery. It was investigated by Health and Human Services – Office of the Inspector General, the FBI, the U.S. Department of Labor – Employee Benefits Security Administration and the Missouri Attorney General’s Medicaid Fraud Control Unit.
Jamaican man charged with illegally reentering the U.S.Read the Press Release
A federal grand jury returned an indictment charging Jamaican citizen Trevor Arthur Junior Campbell, 41, for re-entering the United States illegally after being deported to Jamaica, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
Campbell was found in the United States after being previously deported on August 11, 1997. Campbell previously entered the United States and was deported in 1997 after being convicted of an aggravated felony and was later found in Cleveland, according to the indictment.
Assistant United States Attorney Karrie D. Howard is prosecuting the case following an investigation by the United States Immigration and Custom Enforcement, Department of Homeland Security.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Jalil Abn Ameer Aziz Who Was Charged with Providing Material Support to ISIL Faces New Charges for Solicitation to Commit A Crime of Violence and Transmitting A Communication Containing A Threat to InjureRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jalil Ibn Ameer Aziz, 19, a U.S. citizen and resident of Harrisburg, who was previously charged by a federal Grand Jury in Scranton on charges of conspiring and attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL) faces new federal charges. In a Superseding Indictment a federal Grand Jury in Harrisburg charged Aziz with solicitation to commit a crime of violence and transmitting a communication containing a threat to injure.
According to U.S. Attorney Peter Smith, on December 22, 2015, Aziz was charged in an indictment with conspiring and attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. The following day, Aziz appeared before U.S. Chief Magistrate Judge Martin C. Carlson of the Middle District of Pennsylvania and entered a plea of not guilty.
According to the indictment, from July 2014 to December 17, 2015, Aziz knowingly conspired to provide, provided and attempted to provide material support, including personnel and services, to ISIL. The superseding indictment alleges that during the same time period, Aziz solicited, commanded, induced and endeavored to persuade others to kill and attempt to kill officers and employees of the United States. The superseding indictment further alleges that he knowingly tweeted the names, addresses, photographs and military branches of approximately 100 U.S. servicemembers to followers and viewers of his Twitter account. The communication also contained threats to injure the servicemembers, stating “kill them in their own lands, behead them in their own homes, stab them to death as they walk their street thinking that they are safe.”
Aziz was initially charged with conspiring and attempting to provide material support to ISIL in a complaint that was unsealed on December 17, 2015, following his arrest. According to the complaint, Aziz used at least 57 different Twitter accounts to advocate violence against the United States and its citizens, to disseminate ISIL propaganda and to espouse pro-ISIL views. On at least three occasions, Aziz allegedly used his Twitter accounts and other electronic communication services to assist persons seeking to travel to and fight for ISIL. In one instance, Aziz allegedly acted as an intermediary between a person in Turkey and several well-known members of ISIL.
According to the allegations in the complaint, Aziz passed location information, including maps and a telephone number, between these ISIL supporters. A search of a backpack located in Aziz’s closet identified five loaded M4-style high-capacity magazines, a modified kitchen knife, a thumb drive, medication and a ski mask.
The case is being investigated by the FBI’s Joint Terrorism Task Force (JTTF), which includes the Pentagon Force Protection Agency and the Pennsylvania State Police, with assistance from the Harrisburg Bureau of Police. This case is being prosecuted by Assistant United States Attorney Daryl F. Bloom and by Trial Attorneys Robert Sander and Adam L. Small of the National Security Division’s Counterterrorism Section.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
The maximum penalty provided in the statute for each of counts 1 and 2 is 20 years imprisonment and a $250,000 fine. The maximum penalty for Count 3, Solicitation to Commit a Crime of Violence is 20 years’ imprisonment, a $250,000 fine, a term of supervised release of five years and a $100 special assessment. The maximum penalty for count 4, Transmitting a Communication Containing a Threat to Injure, is five years’ imprisonment, a $250,000 fine, a term of supervised release of three years and a $100 special assessment.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, and the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
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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Jacksonville Men Sentenced for Aggravated Identity Theft, Attempted Bank Fraud and Possession of Counterfeit SecuritiesRead the Press Release
Jacksonville, Florida – U.S. District Court Judge Timothy J. Corrigan has sentenced Jacksonville residents David Lee Mitchell (60) and Hezekiah Williams (59) to 10 years in federal prison, respectively, for their role in an identity theft and counterfeit check scheme. Varying upward at the time of sentencing, both men were ordered to serve eight years in federal prison for attempted bank fraud and possession of counterfeit business checks, followed by a consecutive mandatory minimum term of two years’ imprisonment for aggravated identity theft.
A third co-defendant, Travis Ware (24, Jacksonville), was sentenced on March 9, 2016, to a mandatary minimum term of two years in federal prison for aggravated identity theft.
According to court documents, on November 23, 2014, Florida Highway Patrol troopers pulled over a vehicle occupied by Williams, Mitchell, and Ware. During the traffic stop, the troopers observed marijuana inside the vehicle. A search of the vehicle revealed 25 counterfeit business checks made out to various individuals and 15 forms of identification from 7 different people. Many of the names on the identification documents matched those printed on the counterfeit checks. Further investigation determined that Mitchell, Williams, and Ware had been driving around three days earlier, attempting to fraudulently cash the counterfeit checks and recruiting others to use the various forms of identification to cash the counterfeit checks.
This case was investigated by the Florida Highway Patrol and the United States Secret Service, Jacksonville Field Office. It was prosecuted by Assistant United States Attorney Kevin C. Frein.
Indictment Charges Former Insurance and Annuities Salesman with Establishing Fictional Companies to Defraud Elderly InvestorsRead the Press Release
CHATTANOOGA, Tenn. – On May 17, 2016, a federal grand jury sitting in Chattanooga, Tenn., returned a seven-count indictment against John Allen Morris, Jr., 50, of Knoxville, Tenn., for wire fraud, mail fraud, bank fraud and wrongful use of a government seal.
According to the indictment on file with U.S. District Court, beginning in 2006, Morris devised a scheme to defraud and obtain money by false pretenses. He established two fictitious companies, Pillar Management Company (PMG) and Superior Life Insurance Company (Superior) and then contacted elderly investors by various means, including the telephone, to invest in annuities, bonds, and insurance products. Morris convinced several investors to surrender legitimate annuities to invest in his companies. He established bank accounts at different financial institutions in which he deposited this money received from investors. Rather than investing the funds, Morris converted the money from investors for his own personal use, including paying personal bills and expenses for himself and his family, buying personal property for himself and others, and investment in personal ventures such as an automobile refurbishment and resale enterprise, and “Football Tech” – a business which claimed to stage football camps for high school football players and others. Additionally, to perpetuate his scheme, Morris used some of the funds from investors to pay off others.
If convicted, Morris faces a maximum of 20 years in prison for the wire and mail fraud charges. He faces a maximum of 30 years in prison for bank fraud and a maximum of five years in prison for wrongful use of a government seal.
If you believe that you have been a victim of Morris, please contact the local Federal Bureau of Investigation (FBI) office at 865-744-0751.
Agencies conducting this investigation include the FBI, U.S. Postal Inspection Service, and Tennessee Department of Commerce and Insurance. Assistant U.S. Attorney Steve Neff represents the government.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
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Indianapolis man indicted on robbery chargesRead the Press Release
INDIANAPOLIS –United States Attorney Josh J. Minkler announced today that an Indianapolis man has been indicted on 22 counts related to recent robberies in the Indianapolis area. Donnell E. Gilder, 22, was indicted on 11 counts of robbery, nine counts of brandishing a firearm during a crime of violence, and two counts of discharging a firearm during a crime of violence.
“Protecting our neighborhoods from violent crime is a top priority in my office,” said Minkler. “Terrorizing this community with guns and violence will not be tolerated and those who do, will be arrested, prosecuted, and sent to federal prison.”
The indictment alleges that between February 29, 2016, and April 27, 2016, Gilder robbed 10 Speedway Gas Stations and a Marsh Supermarket on the Northeast side of Indianapolis. On two occasions, he discharged a handgun during the robbery.
The criminal complaint filed earlier this month alleges that on April 27, 2016, at approximately 3:45 a.m., Gilder approached the Speedway gas station located at 5900 E 71st Street. The clerk, who was outside the building on a break, saw Gilder approach dressed in all black. She quickly ran back into the store and locked the front door. Gilder is alleged to have fired a handgun at the door, shattering the glass and narrowly missing the clerk.
The criminal complaint further alleges that a short while later, Gilder was seen driving a stolen vehicle near the robbery scene. IMPD officers attempted to stop the vehicle but Gilder jumped from the vehicle while it was still in gear. The stolen vehicle continued rolling and struck an officer’s patrol car. Officers continued to chase Gilder and apprehended him a few blocks away. Officers recovered a loaded 9mm handgun from the pursuit route.
This case was investigated by the Indianapolis Metropolitan Police Department and the Bureau of Alcohol Tobacco Firearms and Explosives.“This investigation is an example of our renewed focus on targeting those individuals committing violent crime in Indianapolis,” said Chief Troy Riggs. “I would like to thank the officers and detectives who worked tirelessly to take this violent individual off of our streets. We are appreciative of the US Attorney’s Office for their partnership and willingness to prosecute these cases at the federal level.”
“There is no place in our society for those who use firearms for violent, criminal purposes,” said Donald Soranno, Special Agent in Charge of ATF’s Columbus Field Division. “ATF will continue to work with our law enforcement partners to ensure that those who would do harm in our community are brought to justice.”
State level criminal charges were initially filed against Gilder by the Marion County Prosecutor’s Office. Those charges have been dismissed to allow for the federal prosecution of these acts.
According to Assistant U.S. Attorney Jeffrey D. Preston, who is prosecuting this case for the government, Gilder faces a minimum of 260 years in prison if convicted of all charges.
An indictment is only a charge and not evidence of guilt. All parties are presumed innocent until proved guilty in federal court.
Hancock County, WV man sentenced for possession of child pornographyRead the Press Release
WHEELING, WEST VIRGINIA – Ryan Bobby Schnettler, 25, of Weirton, West Virginia, was sentenced today to 87 months in prison for possession of child pornography, United States Attorney William J. Ihlenfeld, II, announced.
Schnettler was discovered in possession of child pornography in October 2015 in Hancock County, West Virginia. He pled guilty in February 2015 to one count of “Possession of Child Pornography.”
Assistant U.S. Attorney Stephen Vogrin prosecuted the case on behalf of the government. The West Virginia State Police investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Hammond Woman Sentenced for Role in Tax Fraud SchemeRead the Press Release
NEW ORLEANS – U.S. Attorney Kenneth A. Polite announced that RAVEN HUGHES, age 28, of Hammond, was sentenced today after previously pleading guilty to mail fraud and aggravated identity theft for engaging in a multi-year tax fraud scheme.
U.S. District Judge Susie Morgan sentenced HUGHES to 36 months imprisonment, to be followed by 3 years of supervised release. Additionally, HUGHES was ordered to pay restitution in the amount of $119,050 to the Internal Revenue Service.
According to court documents, HUGHES obtained the name and social security number of unsuspecting individuals and used that information without their knowledge or authorization to prepare false tax returns that claimed large tax refunds. The refund checks were mailed to numerous Post Office Boxes throughout Louisiana that were opened by HUGHES, as well as to HUGHES’s residence in Hammond. Refund checks were also sent electronically via wire into one of HUGHES’s four bank accounts.
Once the tax refund checks were received, HUGHES falsely endorsed and cashed the checks. HUGHES also arranged for some of the refunds to be transmitted electronically into bank accounts under her control. In total, HUGHES caused not fewer than 148 federal income tax returns to be submitted in the names of at least 103 different individuals without their knowledge or authorization. As a result of the conduct described above, between 2009 and 2012 HUGHES received approximately $199,050.
U.S. Attorney Polite praised the work of the Internal Revenue Service – Criminal Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg was in charge of the prosecution.
Green Bay Man Indicted on Federal Drug and Firearm ChargesRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on May 17, 2016, a federal grand jury returned an indictment against Edward J. Brantley (age: 38) of Green Bay, Wisconsin.
Brantley faces charges alleging he was a felon in possession of a firearm, possessed cocaine base with the intent to distribute, and possessed a firearm in furtherance of a drug conspiracy, contrary to Title 18, United States Code, Sections 922(g)(1), 924(c)(1)(A), and Title 21, United States Code, Sections 841(a) and 841(b)(1)(B). He faces penalties ranging from a mandatory ten years imprisonment up to a life sentence, a $5,000,000 fine, and a lifetime of supervised release.
This case was investigated by the Brown County Drug Task Force comprised of investigators from the Brown County Sheriff’s Department, Green Bay Police Department, Ashwaubenon Public Safety Department, and the De Pere Police Department. The case will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Fredericktown man charged wtih robbing a pharmacyRead the Press Release
A federal grand jury returned a one-count indictment charging Donald Boozer, 37, of Fredericktown, with a pharmacy robbery, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
The indictment alleges that on or about August 24, 2014, Boozer took a controlled substance from a Rite Aid pharmacy in Uhrichsville, Ohio.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration and the Uhrichsville Police Department. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former President and CEO of Montgomery-Based Steel Company Convicted of Bankruptcy FraudRead the Press Release
Montgomery, Alabama – On Tuesday, May 17, 2016, a federal jury in Montgomery convicted Kennon W. Whaley, 51, from Auburn, Alabama on two counts of bankruptcy fraud for concealing assets of his business from the Bankruptcy Court and his creditors, announced George Beck Jr., U.S. Attorney for the Middle District of Alabama.
Whaley had been the president and CEO of Southeastern Stud & Components from the time the company was created in 1999. Southeastern Stud was located in Montgomery and was in the business of manufacturing light steel framing components to be used in commercial and industrial construction. At its peak in 2005, Southeastern Stud grossed over $34,000,000, had 125 full-time employees and distributed steel to customers throughout the United States.
By 2009, the company’s revenue had decreased substantially, so Whaley, on behalf of Southeastern Stud, filed for Chapter 11 bankruptcy protection in March of that year and the company remained in bankruptcy until October of 2011. Because Southeastern Stud was allowed to continue its operation during the bankruptcy, Whaley was required under the law to disclose all assets and property of the company to the Bankruptcy Court each month.
However, the evidence at trial showed that despite this requirement Whaley diverted the proceeds from a $260,000 insurance payment to the company in 2010 to pay off a personal gambling debt. The evidence showed that in January of 2010 Mr. Whaley traveled to the Wynn Las Vegas Casino where he incurred a $100,000 gambling debt during a trip of just four days. The evidence also showed that Wynn Las Vegas began to put pressure on Whaley to pay the debt beginning in February of 2010. Casino records from Wynn Las Vegas, and the bank records of the account where the insurance proceeds were deposited, showed that Whaley used the company’s insurance money pay off his gambling debt and to pay himself over $30,000 in cash. None of these transactions were ever disclosed by Whaley to the Bankruptcy Court as required.
The casino records also show that once his debt was paid off in October of 2010, Whaley made a return trip to Wynn Las Vegas during which he spent over $20,000 at the casino and sent a limousine to pick up his wife at the airport. At that time, Southeastern Stud was still in bankruptcy and approximately 70% of its employees had lost their jobs.
“Our bankruptcy laws are designed to provide financial protection for both creditors and debtors alike,” stated U.S. Attorney Beck. “When debtors attempt to illegally thwart the very laws that provide them protection and take advantage of this fraud in bankruptcy court, they will be punished.”
Whaley faces a maximum sentence of 5 years in prison on each count of Bankruptcy Fraud.
The case was investigated by the FBI after they received a tip from one of Whaley’s former employees. The case was prosecuted by Assistant United States Attorneys Brandon Essig and John Geer.
Former Director of World Ambassadors, LTD Pleads Guilty to Tax EvasionRead the Press Release
A Cedar Rapids man pled guilty yesterday in federal court in Cedar Rapids. Jon S. Petersen, 55, was convicted of one count of filing a false tax return for the calendar year 2013.
At the plea hearing, Petersen admitted filing a fraudulent income tax return. The return failed to include as income donations he diverted from World Ambassadors into his own personal checking account. In a plea agreement, Petersen admitted he used approximately $114,581 of those funds in 2013 for his own personal use, and such funds constituted taxable income to him. World Ambassadors is a nonprofit corporation.
From 2005-2015, Petersen claimed to struggle with a sex addiction. It became costly so Petersen would pay for this addiction through his credit cards, home equity lines of credit, and World Ambassadors donations.
From 2010-2014, the number of contributors to World Ambassadors ranged from 31 to 38 people. From January 2010 through December 2014, World Ambassadors received total deposits in the amount of $476,466.37. Of these deposits, $475,555.47 was deposited into Petersen’s personal checking account either by bank transfers from the World Ambassador’s account or checks payable to himself from that account. During this time period, World Ambassadors did not benefit from the use of these funds.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Petersen remains free on bond. Petersen faces a mandatory minimum sentence of three years’ imprisonment without the possibility of parole, a fine of not more than $250,000, a $100 special assessment, and up to 1 year of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Matthew J. Cole and was investigated by the Internal Revenue Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-39-LTS.
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