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17 May 2016
New Jersey Man Charged with Conspiracy to Provide False Statements Related to Export of Prohibited Goods to IranRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a plea agreement and a felony Criminal Information charging a New Jersey man with conspiring to provide false statements related to illegally exporting goods to Iran have been filed in U.S. District Court in Scranton, Pennsylvania.
According to United States Attorney Peter Smith, Asim Fareed, age 51, of North Brunswick, New Jersey, has agreed to enter a guilty plea to conspiracy to provide false statements in connection to the illegal export of goods to Iran. According to the Information, Fareed operated an export business in Somerset, New Jersey and agreed to ship items purchased by customers in Iran and to provide false documentation to the U.S. Department of Commerce for export purposes. Communications concerning the shipments passed between New Jersey and a site in Lackawanna County, Pennsylvania. No actual shipments were, in fact, delivered to Iran.
The Information charges that in 2013 and 2014 Fareed conspired with others to export items from the United States, through third party countries to customers in Iran. According to the Information, Fareed prepared invoices which listed false information as to the identity and geographic location of the purchasers of the goods. The items were then to be shipped from the United States to the United Arab Emirates, and thereafter transshipped to Iran. The plea agreement is subject to the approval of the court.
"The Office of Export Enforcement vigorously pursues violators of our nation's export control laws, which are in place to further and protect our national security and foreign policy. As in this instance, we work closely with our colleagues at HSI and other law enforcement agencies in prosecuting this case," said Jonathan Carson, Special Agent in Charge, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office.
“This case demonstrates how far individuals will go to circumvent U.S. export laws to export goods to countries like the Islamic Republic of Iran,” said Angel M. Melendez, special agent in charge of HSI in New York. “The Iran Trade Embargo prohibits Americans from supplying goods, technology and services to Iran directly or indirectly. HSI is committed to aggressively pursuing those who conduct illegal business with Iran.”
The case was investigated by the Department of Commerce, Office of Export Enforcement and U.S. Immigration and Custom Enforcement’s (ICE), Homeland Security Investigations (HSI). Assistant U.S. Attorney Todd K. Hinkley is prosecuting the case.
Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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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New Hartford Man Admits Producing Child PornographyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DANIEL JESSE CONRAD, 31, of New Hartford, waived his right to indictment and pleaded guilty today before U.S. District Magistrate Judge Robert A. Richardson in Hartford to one count of production of child pornography.
According to court documents and statements made in court, between October 2013 and June 2014, CONRAD sexually exploited three different minor females. CONRAD met one of the minor females in February 2014 through Omegle, an internet video chatting service. The minor was 15 years old at the time and lived in Connecticut. After their initial conversation, CONRAD and the minor female began communicating regularly through the Kik text messaging and photo sharing application on their cell phones. On March 1, 2014, the two met in person, and CONRAD drove the minor to Massachusetts where they engaged in sexual activity. On five or six occasions between March and June 2014, CONRAD picked up the minor and drove her to his residence where they engaged in sexual intercourse. During some of the encounters, CONRAD used his iPhone to take videos and pictures of the minor engaged in sexual activity.
In addition to meeting the minor in person, CONRAD had several online video conversations with the minor over Skype and Omegle. During some of these video conversations, the minor engaged in sexually explicit conduct, which CONRAD recorded and saved on his computer. CONRAD also repeatedly persuaded the minor to take sexually explicit pictures of herself at her home and send them to him via Kik.
CONRAD similarly met the two other minors, who were also 15 years old at the time, over Omegle. One of the minors lived in New York and the other minor lived in Nebraska. As with the first victim, CONRAD had several online video conversations with the minors over Skype and Omegle. During several of the video conversations, CONRAD persuaded them to engage in sexually explicit conduct, which CONRAD recorded and saved on his computer. CONRAD also repeatedly persuaded the minors to take sexually explicit pictures of themselves at their homes and send them to him via Kik.
In total, CONRAD had saved on his computer and iPhone approximately 200 images and 52 videos of the three minors engaged in sexually explicit conduct.
CONRAD is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on August 17, 2016, at which time CONRAD faces a mandatory minimum term of imprisonment of 15 years, a maximum term of imprisonment of 30 years and a fine of up to $250,000.
Since his arrest on September 10, 2015, CONRAD has been released on bond and placed on electronic monitoring.
This matter is being investigated by the Homeland Security Investigations and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
New Britain Firearms Manufacturer, Former Owner, Sentenced for Violating Federal Firearms LawsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Daniel J. Kumor, Special Agent in Charge of the ATF Boston Field Division, announced that STAG ARMS LLC, a firearms manufacturer in New Britain, and its former owner and president, MARK MALKOWSKI of Farmington, were sentenced today in Hartford federal court. Senior U.S. District Judge Alfred V. Covello ordered STAG ARMS to pay a $500,000 fine and MALKOWSKI to serve two years of probation and pay a $100,000 fine.
In December 2015, STAG ARMS pleaded guilty to a felony charge of possession of a machine gun not registered to the company, and MALKOWSKI pleaded guilty in his individual capacity to a misdemeanor charge of failure to maintain proper firearm records.
“This is the first time nationwide that a major firearms manufacturer has been convicted of a felony and had its license revoked, effectively forcing the company to be sold to new owners,” said U.S. Attorney Daly. “Stag displayed a systemic and egregious disregard of federal firearms regulations. The company was unable to account for hundreds of semi-automatic rifles and possessed over sixty unregistered machine guns. This prosecution should serve as a warning to those in positions of leadership in the firearms manufacturing industry that failure to maintain strict compliance with firearms laws will have serious consequences. By properly marking and serializing firearms, accurately maintaining records in conformity with the Gun Control Act and properly registering firearms, gun manufacturers act as the first line of defense in ensuring that firearms are traceable and do not fall into the wrong hands.”
“ATF relies on individuals and corporations who are licensed to manufacture firearms to mark them in accordance with the law, keep thorough records of the manufacture and disposition of all firearms, and maintain their inventory in secure facilities to prevent their theft or loss,” said ATF Special Agent in Charge Kumor. “When firearms licensees fail to comply with these federal regulations and laws they open the door for untraceable firearms to wind up on the street in the hands of traffickers and criminals.”
The possession, by private citizens, of machine guns manufactured after 1986 is prohibited, and licensed manufacturers of machine guns are required to stamp a unique serial number on each machine gun and register it with ATF within one business day of manufacture. It is a violation of federal law for a licensed manufacturer to fail to mark a firearm with a serial number and for anyone to tamper with a firearm serial number or possess a firearm with an obliterated serial number. It is also against the law for anyone to possess a machine gun that is not registered to them.
According to court documents and statements made in court, STAG ARMS (“STAG”) obtained a federal firearms license (“FFL”) to manufacture firearms in 2003, and obtained a license for a second location in 2009.
In 2007, the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) cited STAG for a number of regulatory violations.
In July 2014, ATF Industry Operations Investigators performed another firearms compliance inspection at STAG. The investigation revealed that, in violation of the National Firearms Act, STAG had possession of a total of 62 machine guns and machine gun receivers that were registered to another entity, or were not registered at all.
A receiver is the key regulated part that is considered a machine gun. All other parts necessary to transform a receiver to a fully functional semi-automatic or automatic machine gun can be purchased over the Internet.
The investigation also discovered that, in violation of the Gun Control Act, STAG had failed in thousands of instances to adequately document the manufacture and disposition of firearms – machine guns as well as assault weapons – making them more susceptible to theft or loss. Many of the record-keeping violations that were uncovered were similar to violations for which STAG was cited in 2007. For example, inspectors discovered more than 3000 un-serialized receivers on the premises without any record of their manufacture or acquisition, and more than 3000 firearms that were transferred by STAG without properly being recorded. Inspectors were able to reconcile the majority of these transfers from other paperwork on site, but found more than 300 instances in which the disposition of the firearms could not be reconciled. To date, approximately 200 firearms are reported as lost or stolen.
In September 2014, ATF executed search warrants at STAG’s two facilities on John Downey Drive in New Britain and seized dozens of machine guns that had not been marked and/or registered, as well as three machine guns with serial numbers that had been intentionally obliterated, or scratched out.
In October 2014, ATF issued a Notice of Revocation to STAG, revoking both federal firearms licenses held by STAG at it two facilities. In the revocation notices, ATF alleged that STAG had knowledge of its recordkeeping and firearms marking responsibilities, but did not choose to comply. STAG was permitted to continue operations pending the results of a hearing where STAG was afforded the opportunity to contest the revocations with its own witnesses and evidence, and to cross examine government witnesses.
On November 16, 2015, after consideration of the evidence presented at the hearing, ATF issued a revocation of both of STAG’s federal firearms licenses.
Due its license revocation, on February 29, 2016, a sale of STAG was completed to an independent third party and the company is now under new ownership.
As part of the resolution of this case, STAG agreed not to challenge the license revocations in court, and to drop all ownership claims to the firearms seized by ATF. In addition, MALKOWSKI divested himself of his interest in STAG and has agreed never again to hold an ownership or management position with respect to a firearms business.
This matter is being prosecuted by Assistant U.S. Attorney S. Dave Vatti.
Nevada Police Officer Indicted for Using Excessive Force Against Student and School Staff MemberRead the Press Release
The Justice Department announced today that a federal grand jury in Las Vegas returned a five-count indictment charging Clark County School District Police Officer James Lescinsky, 45, with unlawfully assaulting two people at the Jeffrey Behavior School on May 21, 2015, and then attempting to cover it up.
Lescinsky allegedly violated the right of the school staff member, identified only as T.R., not to be deprived of liberty without due process of law and the right of the student, identified only as A.N., to be free from unreasonable seizure. The indictment alleges that Lescinsky unlawfully assaulted T.R. by striking her with a dangerous weapon, his police-issued baton, which caused bodily injury. Lescinsky also allegedly unlawfully assaulted A.N. by striking her with the baton and slamming her into a hallway wall and floor at the school.
Lescinsky is also charged with witness tampering for making false representations to a supervisor and with falsifying official reports. After the incident, Lescinsky informed his supervisor that the assault occurred because T.R. and A.N. were wrestling, when he knew that to be false. He similarly falsified an official incident report and use of force report.
The maximum sentence for deprivation of rights under color of law is 10 years in prison. The maximum sentence for witness tampering and false reporting is 20 years in prison. An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
This case is being investigated by the FBI’s Las Vegas Division. It is being prosecuted by Trial Attorneys Adam Harris and Dana Mulhauser of the Civil Rights Division’s Criminal Section.
Lescinsky Indictment
National Police Week: We Must Commit Ourselves to the Well-Being of Law Enforcement OfficersRead the Press Release
The hard truth is that every year more police officers take their own lives than are killed in the line of duty by criminals. And for every officer who commits suicide, there are many more officers who, whether they recognize it or not, are suffering from the symptoms of Post-Traumatic Stress Disorder.
But this is not surprising when one considers all that we ask of our officers. Day in and day out, we expect them to apprehend armed and violent criminals, engage in high speed chases, notify next of kin that a loved one has died unexpectedly, respond to turbulent domestic violence calls, render first aid to a shooting victim or a badly-injured child, process horrific motor vehicle accidents and crime scenes, make split-second decisions that literally can be a matter of life or death, resolve tough legal questions on the spot in emerging and uncertain situations, and find overdose victims dead in public places or their own childhood bedrooms. These relentless demands exact an undeniable toll.
Added to this burden are the times when a small percentage of officers abuse their positions of authority. This abuse is unconscionable and sometimes even criminal. It weighs heavily on the vast majority of officers who honorably serve their communities. No one in a position of trust – a teacher, a doctor, a lawyer, a politician, a member of the clergy or a police officer – should ever violate his or her oath to serve others. Society is appropriately outraged whenever that trust has been violated. But the repercussions for police misconduct are unique and can be devastating. Not only have we seen wholesale community uprisings, but innocent officers have been murdered for no other reason than they were an officer in uniform. The reality of such senseless violence also looms over all officers and their families.
Nor is it surprising that the law enforcement community rarely talks about officer suicides or PTSD. Police work attracts a special breed: People who will run toward gunfire and chase an armed felon. The culture of the profession is one that calls for exceptional courage delivered quietly and humbly. As a result, too many officers and agents suffer in silence, inhibited and unable to seek the help that others reach for in much less trying circumstances.
As Connecticut’s United States Attorney, I deeply admire and respect our law enforcement partners who put themselves at risk every day for our protection and safety. I am equally concerned for the well-being of these officers and their families. Officer wellness is a subject that our Office has championed. We are fortunate to have many forward thinking Chiefs of Police and leaders who are committed to ensuring that we meet the mental health needs of the men and women who serve us. This week, the Norwalk Police Department will hold a memorial honoring officers killed in the line of duty as well as those who took their own lives. And the Connecticut Police Chiefs Association will hold an Officer Wellness training, focused on managing the aftermath of trauma, which is open to all local, state and federal officers in the state.
We need to prioritize the well-being of our officers. The results will both improve relations with the public we serve, and provide personal and professional fulfillment for the men and women who keep us safe.
In 1962, President John F. Kennedy signed a proclamation that designated May 15 as Peace Officers Memorial Day and the week in which that date falls as Police Week. This week in particular, I salute all of law enforcement for your quiet courage and thank you for dedicating your lives to protecting us.
Deirdre M. Daly
U.S. Attorney, District of Connecticut
May 17, 2016Marion Man to Serve Ten Years on Crack Cocaine OffenseRead the Press Release
On May 16, 2016, Tommy T. Langston, a/k/a "G," 38, of Marion, was sentenced for a crack cocaine offense, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
Langston, who had previously pled guilty to an indictment charging conspiracy to distribute 28 grams or more of crack cocaine, was sentenced to 120 months in federal prison, to be followed by 8 years of supervised release, and fined $400.00. The offense occurred between October 2014 and July 2015, in Williamson and Jackson Counties. Evidence at the plea and sentencing hearings established that Langston was involved with others in the distribution of crack cocaine in the Marion and Carbondale areas. During the investigation, Langston sold crack cocaine to confidential sources working for law enforcement. At sentencing, the judge found that Langston was responsible for the distribution of 154.2 grams of crack cocaine. Co-defendant Tammy R. Whitton has previously been sentenced to 120 months in prison for her role in the crack cocaine conspiracy. Two co-defendants have pled guilty to their roles in the crack cocaine conspiracy and are awaiting sentencing. One co-defendant has pled not guilty and is awaiting trial.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group, Drug Enforcement Administration, Jackson County Sheriff’s Office, and Carbondale Police Department. The Williamson and Jackson County State’s Attorney’s Offices also assisted in the investigation.
Man Pleads Guilty to Distributing Heroin and Crack CocaineRead the Press Release
A man who sold heroin and crack cocaine pled guilty today in federal court in Cedar Rapids.
Chanord Hawkins, age 23, from Cedar Rapids, was convicted of one count of distributing heroin and crack cocaine.
In a plea agreement, Hawkins admitted that, in July 2015, he sold heroin and crack cocaine to another person. Hawkins also admitted that he again sold heroin to another person in September 2015 and had previously sold heroin to other people in larger amounts. Overall, Hawkins admitted he was responsible for distributing at least 40 grams of heroin.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Hawkins remains in custody of the United States Marshal pending sentencing. Hawkins faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, a $100 special assessment, and at least 3 years of supervised release following any imprisonment.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Cedar Rapids Police Department and the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Cedar Rapids Police Department; the Linn County Sheriff's Office; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement, and the Linn County Medical Examiner’s Office and is being prosecuted by Assistant United States Attorney Anthony Morfitt.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-00008-1.
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Littleton Man Sentenced for Shipping Heroin Through MailRead the Press Release
WILMINGTON – The United States Attorney’s Office announced that on Friday, May 13, 2016 in federal court, Senior United States District Judge James C. Fox sentenced JASON BRIAN BUNCH, 42, of Littleton, North Carolina to 81 months imprisonment, followed by 5 years of supervised release.
BUNCH was named in a Criminal Information filed on January 25, 2016 charging him with conspiracy to distribute and possession with intent to distribute 100 grams or more of heroin and a quantity of marijuana. On February 16, 2016, BUNCH pleaded guilty to that charge.
Between September and October 2014, BUNCH shipped 117 grams of black tar heroin through the mail. BUNCH lived in Mendocino, California at the time and shipped the heroin to a confidential informant located in Nashville, North Carolina. While in North Carolina on January 30, 2015, BUNCH was arrested by the Drug Enforcement Administration and Nash County Sheriff’s Office. Agents executed a search warrant at BUNCH’s North Carolina home and seized cocaine, heroin, marijuana and money during the search.
Investigation of this case was conducted by the Drug Enforcement Administration, United States Postal Service, United States Marshals Service, Internal Revenue Service, and the Nash County Sheriff’s Office. Assistant United States Attorney Dena King represented the government.
Lincoln County man sentenced to over 11 years in Federal prison for trafficking pain pills from Florida to West VirginiaRead the Press Release
CHARLESTON, W.Va. – A Lincoln County man was sentenced to 11 years and seven months in federal prison for trafficking pain pills, announced Acting United States Attorney Carol Casto. William Harrison Meade, 46, of Branchland, previously pleaded guilty in September 2015 to conspiring to distribute oxycodone.
Meade admitted that in 2010 and 2011, he conspired with individuals in Florida and Lincoln County to distribute oxycodone. Meade also admitted that he laundered the proceeds of the drug sales through a West Virginia bank account for withdrawal in Florida in an effort to conceal the source of the cash and the pills.
Lester Taylor, of Daytona Beach, Florida, was one of Meade’s associates in the drug operation. Taylor acquired oxycodone pills in Florida and used various methods to transport the drugs to West Virginia for distribution by Meade. Taylor sent 15 priority overnight packages containing oxycodone pills to Meade at his home in Branchland. Law enforcement intercepted the last package on January 8, 2011, which contained 1,000 oxycodone pills. After Meade sold the oxycodone pills, he deposited the drug proceeds into bank accounts in Barboursville and Huntington. Following the deposits in West Virginia banks, Taylor and others withdrew the money in Florida. Meade deposited $149,500 in drug proceeds into Taylor’s Fifth Third Bank account at the Huntington branch.
Taylor admitted to obtaining prescriptions for oxycodone and hydromorphone from physicians in Florida and then having the prescriptions filled at pharmacies in West Virginia. The pharmacy primarily used for this unlawful activity, A+ Care Pharmacy, formerly located in Barboursville, has since been prosecuted in federal court by the U.S. Attorney’s Office for the Southern District of West Virginia, and is no longer in business.
In November 2015, Taylor was sentenced to 10 years in federal prison and a $10,000 fine for his role in the pain pill distribution and money laundering conspiracy.
The West Virginia State Police, the Internal Revenue Service’s Criminal Investigation division, and the Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Monica D. Coleman handled the prosecution. United States District Judge Thomas E. Johnston imposed Meade’s sentence.
These cases are part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Limestone Man Sentenced to One Month in Prison for Making False StatementsRead the Press Release
Contact: James M. Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Mark Durinski, 64, of Limestone, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to one month in prison and three years of supervised release for making false statements and entries in annual reports filed with the U.S. Department of Labor. He was also ordered to pay $53,544.98 in restitution to the Local from which he stole money as well as $300.00 in special assessments. Durinski pleaded guilty in U.S. District Court to three felony counts of making the false statements on September 14, 2015 and subsequently paid $20,000 in restitution.
Court records reveal that Durinski was employed by the Defense Finance Accounting Service (“DFAS”) and was also a founding member and the president of the local American Federation of Government Employees (“AFGE”) union that represented DFAS employees in Limestone. In his capacity as local AFGE president, he signed and certified as true annual Labor Department reports that failed to disclose that he received over $50,000 from the local to reimburse him for travel and other expenditures for which he was also reimbursed by U.S. Department of Defense or another source. In imposing the prison sentence, Judge Woodcock stated it was “striking that [the defendant] would cheat the very organization that he had founded and take money from employees who trusted him.”The investigation was conducted by the U.S. Department of Labor Office of Labor-Management Standards.
KC Man Sentenced to 25 Years for Armed Restaurant RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for the armed robbery of Pancho’s Mexican Food.
Jamane J. Smith, 31, of Kansas City, was sentenced by U.S. Chief District Judge Greg Kays to 25 years in federal prison without parole.
On Nov. 18, 2015, Smith pleaded guilty to one count of robbery and one count of using a firearm during a crime of violence. Smith admitted that he robbed Pancho’s Mexican Food, 3540 Main St., Kansas City, Mo., on Feb. 2, 2014. Smith admitted that he used and carried a handgun during the commission of the robbery.
According to court documents, Smith ordered a meal at Pancho’s and attempted to pay with a counterfeit $20 bill. When told the counterfeit bill would not be accepted, Smith pulled a gun hanging from his waist, pointed it at the Pancho’s employee and stated, “Give me the money.” The employee handed him $200 and Smith left the restaurant.
This case was prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes, IV. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Joplin Man Pleads Guilty to $5.6 Million Cooking Oil SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man pleaded guilty in federal court today to charges related to a scheme to sell more than $5.8 million worth of spent cooking oil – stolen from restaurants across five states – to a recycling facility in Oklahoma.
Jeffery Lynn Fleming, 60, of Joplin, pleaded guilty before U.S. Magistrate Judge David P. Rush to transporting stolen goods across state lines, money laundering and filing a false tax return.
Jeffery Fleming, who operated Fleming Recycling, LLC, in Carterville, Mo., sold approximately $5,831,567 worth of spent cooking oil that had been stolen from restaurants to Brooks Grease Service, a grease recycling business in Tulsa, Okla., between Nov. 1, 2010, and Sept. 30, 2011.
Spent cooking oil is the by-product of cooking oil that restaurants use for frying food. Restaurants had on-site collection tanks in which their spent cooking oil was stored. Many restaurants established contracts with various companies for the collection and removal of spent cooking oil. Brooks Grease Service sent a tanker truck to Fleming Recycling on an almost-daily basis, according to court documents. Each tanker truck held approximately 45,000 pounds of stolen spent cooking oil that was valued at approximately $20,000.
Jeffery Fleming was repeatedly told by undercover agents that the spent cooking oil he was purchasing, storing at his storage facility and selling to Brooks Grease Service was stolen. Undercover agents also negotiated a deal with Jeffery Fleming for the use of one of his trucks. Undercover agents told him they were using his truck to steal spent cooking oil; they charged him one-fourth the going price for the entire load of stolen spent cooking oil hauled by his employees in his collection truck.
Jeffery Fleming also admitted that he significantly underreported his gross receipts on his 2007 federal income tax return.
Fleming’s brother and co-defendant, Brian Dale Fleming, 49, of Mountain Grove, Mo., pleaded guilty on Nov. 19, 2015, to his role in the conspiracy to transport stolen property across state lines and to money laundering. Brian Fleming has also pleaded guilty to being a felon in possession of a firearm and ammunition. Brian Fleming admitted that he used his business, Tri-State Grease, to transport stolen spent cooking oil to Fleming Recycling. Brian Fleming admitted that he trained, encouraged and aided others to steal spent cooking oil from businesses in order to sell it to Fleming Recycling.
Under the terms of their plea agreements, Jeffery and Brian Fleming must forfeit to the government $595,429 that was seized by law enforcement officers, which was derived from the sale of stolen spent cooking oil.
Co-defendants Virgil Orin Bird, Jr., 53, and Neal Sawyer Robbins, 29, both of Joplin, were employees of Fleming Recycling. They each pleaded guilty to money laundering related to a payment for spent cooking oil they believed had been stolen and transported across state lines.
This case is being prosecuted by Assistant U.S. Attorneys Abram McGull, II and Patrick Carney. It was investigated by IRS-Criminal Investigation, the Missouri State Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jefferson County, WV man sentenced to 10 years in prison for methamphetamine traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Kearneysville, West Virginia resident Francisco Gaspar Sanchez, 57, originally of Mexico, was sentenced to 121 months in prison for methamphetamine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Evidence presented during a two day trail in February 2016 indicated that Sanchez conspired with another individual to sell crystal methamphetamine in Jefferson County, West Virginia. Specifically, Sanchez was discovered in possession of methamphetamine in Jefferson County in April 2014.
Following the trial, a jury found Sanchez guilty of one count of “Conspiracy to Distribute Methamphetamine,” and one count of “Possession with Intent to Distribute Methamphetamine.” He was sentenced to 121 months in prison on each count. The sentences will run concurrently for a total of 121 months in prison.
Assistant U.S. Attorneys Paul Camilletti and Anna Krasinski, along with Special Assistant U.S. Attorney Lara Omps-Botteicher, also of the West Virginia Attorney General’s Office, prosecuted the case on behalf of the government. The West Virginia State Police and the Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Illegal Interstate Marijuana Operation Results in Money Laundering ConvictionRead the Press Release
EUGENE, Ore. – A local marijuana proprietor, Eric Scully, 32, of Lane County, has pleaded guilty before U.S. District Judge Michael McShane in the District of Oregon for engaging in money laundering and using a fictitious name on a U.S. Postal Service shipping account.
According to the plea agreement, Scully admitted to engaging in a monetary transaction involving more than $10,000 of criminally derived proceeds, as well as creating a fictitious U.S.P.S. Click-N-Ship account for use in shipping packages of marijuana to multiple states. The Information sets forth the details of the underlying illegal marijuana distribution operation, which involved growing large quantities of marijuana in Eugene and then illegally distributing it through a covert mail operation, shipping packages to a number of states that have not passed state laws relating to medical and/or recreational marijuana use. It further details how Scully laundered the proceeds by operating behind the veil of a coffee kiosk purporting to be a legitimate business. Throughout the course of the operation, Scully used the unlawful proceeds gained from interstate marijuana sales to amass a variety of assets that will be criminally forfeited to the government as part of the plea agreement. Scully faces a statutory maximum sentence of 10 years in prison for the money laundering count, and up to five years for the fictitious name count.
Also charged in the case are Joan Scully, 62, and Krystin Livingston, 34, of Lane County. Joan Scully pleaded guilty to structuring deposits of drug proceeds to avoid financial reporting requirements, and Livingston pleaded guilty to using the fictitious U.S.P.S. shipping account. Sentencing for all three defendants will take place on September 8, 2016, at 2:30 p.m. in Eugene.
The Federal Bureau of Investigation and the Interagency Narcotics Enforcement Team (INET), along with assistance from the U.S. Postal Inspection Service, investigated this case. The case is being prosecuted by Assistant U.S. Attorney Nancy M. Olson.
Holden Woman Plead Guilty to Federal Drug Conspiracy ChargeRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Sara Monroe, 29, of Holden, Maine, pled guilty in U.S. District Court in Bangor, Maine to conspiracy to possess with the intent to distribute and distribute heroin. The charge carries a maximum potential penalty of 20 years imprisonment, a minimum of three years supervised release, and a maximum $1,000,000 fine.
According to court records, between February 2015 and September 2015, Monroe conspired with Mario Lee, a/k/a “Moe” and others known and unknown to distribute heroin in the Bangor area and elsewhere. The heroin was packaged in “bundles” consisting of ten small baggies containing heroin and bundled together with a rubber band. The bundles were supplied by Lee and distributed by Monroe. Monroe also provided transportation for Lee so that he could distribute heroin to others.
The case was investigated by the Maine Drug Enforcement Agency and the U.S. Drug Enforcement Administration.
Harford County Man Admits to Using a Computer to Attempt to Coerce a Minor to Engage in SexRead the Press Release
Baltimore, Maryland – William Ray Wagner, age 33, a resident of Harford County, pleaded guilty today to use of interstate facilities to coerce a minor to engage in sex.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Harford County Sheriff Jeffrey R. Gahler; and Harford County State’s Attorney Joseph I. Cassilly.
According to his plea agreement, in the fall of 2014, Wagner was communicating on Facebook with an individual he believed was a 14 year old girl who lived with her parents. The individual was actually an undercover Harford County detective.
In early October 2014, Wagner attempted to meet the individual to engage in sex, and used his computer to initiate graphic discussions about sex. He ultimately arranged to meet the individual at a restaurant in Bel Air on October 13, and then walk to a nearby trail to engage in sex. On that date, Wagner arrived at the agreed upon meeting location with a blanket and two condoms. He was arrested.
Wagner had previously been convicted of unlawful contact with a minor in 2009 and as a result, was required to register as a sex offender in Maryland. In April 2014, Wagner was arrested in Harford County and charged with failure to register as a sex offender.
As part of his plea agreement, Wagner must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Wagner and the government have agreed that if the Court accepts the plea agreement Wagner will be sentenced to 10 years in prison followed by a lifetime of supervised release. U.S. District Judge George L. Russell III has scheduled sentencing for September 9, 2016 at 2:00 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Harford County Sheriff‘s Office and Harford County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the case.
Guilty Plea in International Internet Conspiracy CaseRead the Press Release
Gulfport, Miss – Genoveva Farfan one of twenty-one defendants indicted in a nine-count federal indictment filed in the Southern District of Mississippi against defendants in Nigeria, South Africa, Canada, Indiana, California, New York and Wisconsin, entered a guilty plea to conspiracy to commit offenses against the United States and aggravated identity theft, announced U.S. Attorney Gregory K. Davis.
Farfan, 46, of Los Angeles, California, entered the guilty pleas before United States District Judge Sul Ozerden Monday May 16, 2016. Farfan faces a maximum of five years in prison, $250,000 fine and three years of post-release supervision for the conspiracy and an additional 4 years for two counts of aggravated identity theft. Farfan admitted an on-line relationship led to mailing hundreds of counterfeit checks in an advance fee scheme and receiving and using the numerous victims’ personal identifying information and credit card information.
The indictment alleges a West African transnational organized crime enterprise involved in numerous complex financial fraud schemes over the internet. This mass marketing fraud includes romance scams, re-shipping scams, fraudulent check scams and work-at-home scams, along with bank, financial and credit card account take-overs. Potential victims can find information and a claim form on the website for the United States Attorney’s Office for the Southern District of Mississippi at: http://www.justice.gov/usao/mss/scams.
The investigation was initiated in October, 2011, by Homeland Security Investigations agents in Gulfport after U.S. law enforcement officers were contacted by a female victim in Mississippi who was the victim of a sweetheart scam. The victim received a package in the mail requesting that she reship cell phones to an address in Pretoria, South Africa. The investigation later revealed that the cell phones were purchased using stolen personal identity and credit card information of persons in the United States. Investigators have identified hundreds of victims of this scam in the United States, resulting in the loss of millions of U.S. dollars.
The indictment is the result of an investigation led by the HSI Gulfport office in partnership with the U.S. Postal Inspection Service, South African Police Service, Toronto Police, HSI Cyber Crimes Center, Treasury Executive Office of Asset Forfeiture, HSI Ontario, HSI Charleston, Interpol South Africa, HSI Pretoria and HSI Atlanta.
The Department of Justice Office of International Affairs assisted in the provisional arrests of ten defendants in Pretoria, South Africa. Another defendant was arrested in Toronto, Canada, the remaining defendants were arrested in the United States.
The case in Mississippi is prosecuted by Assistant U.S. Attorney Annette Williams and main Justice Trial Attorneys Peter V. Roman of the Computer Crimes Intellectual Property Section and Conor Mulroe of Organized Crime Gang Section.Fort Smith Man Arraigned on Charges of Defrauding Investors and the Department of Health and Human ServicesRead the Press Release
Fort Smith, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that William Jackson Moates, Jr., age 49, of Fort Smith, Arkansas, appeared before United States Magistrate Judge Mark Ford for arraignment on a 25 count Indictment charging him with Money Laundering, Wire Fraud, Theft Concerning a Program Receiving Federal Funds, Mail Fraud, Bank Fraud, and Theft or Embezzlement from Employee Benefit Plan.
The charges in an indictment are only allegations. A person is presumed innocent unless or until he or she is proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the Federal Bureau of Investigation (FBI), Health and Human Services - Office of Inspector General, and the Department of Labor – Employee Benefits Security Administration. Assistant United States Attorney Aaron Jennen is prosecuting the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records Website at www.Pacer.gov
Former Restaurateur Pleads Guilty to Stealing More Than $585,000 in Withheld Employees' TaxesRead the Press Release
United States Attorney Andrew M. Luger announced the guilty plea of KELLY LOUISE JAEDIKE, 46, for failing to pay taxes that she withheld from her employees. JAEDIKE pleaded guilty yesterday to conspiracy and attempting to evade or defeat tax and for failing to hold in trust and pay over to the IRS, employee money for which she was responsible. JAEDIKE’s brother, DAVID AHERN, 49, pleaded guilty on October 13, 2015, to conspiracy.
“The defendants used their restaurant as a personal piggy bank,” said Assistant United States Attorney Tracy L. Perzel. “What should have been an extremely profitable restaurant bounced employee paychecks, issued IOUs to servers for tips, and couldn’t get deliveries from vendors because of rampant overspending. Employees and the vendors who serviced this restaurant deserved better.”
“Kelly Jaedike and David Ahern cheated their employees by failing to hold in trust and pay over the employees’ taxes, as required by law,” said IRS Criminal Investigation Special Agent in Charge Shea Jones. “In these situations, employees suffer. Their social security statements may not match their actual work histories. And, if those employees do not contact the Social Security Administration to correct this, it will have a lifelong effect on their social security payments. IRS Criminal Investigation will continue to vigorously pursue those who unjustly enrich themselves on the backs of hardworking people.”
According to the defendants’ guilty pleas and documents filed in court, from at least 2006 through 2012, the defendants, who are siblings, operated a Melting Pot restaurant franchise in Minneapolis, Minn. As employers, the defendants were responsible for withholding taxes from their employees and paying those withheld taxes to the IRS. In 2006, the IRS imposed a penalty on JAEDIKE for $266,000 because she had failed to pay over taxes withheld from her employees’ paychecks. Instead of working to pay off the debt, JAEDIKE, AHERN, and others worked to hide JAEDIKE’s income and assets to prevent the IRS from seizing them to repay the debt. Among other methods of deception, JAEDIKE and others transferred the restaurant to a nominee entity and issued paychecks that falsely made her wages appear to be wages of her husband, with the intent to hide JAEDIKE’S income and assets.
According to the defendants’ guilty pleas and documents filed in court, from 2009 to 2011, JAEDIKE and AHERN again failed to pay over employment taxes totaling $680,000, including more than $404,000 that was withheld from employee paychecks. JAEDIKE, AHERN and members of their family received more than $1.29 million in personal payments from the restaurant between 2007 and 2011.
According to the defendant’s guilty plea and documents filed in court, JAEDIKE and AHERN used the proceeds of their crime to pay mortgage loans on three family residences, vehicle leases and loans, and expenses for unrelated business ventures like Ahern’s Irish Pub, a restaurant JAEDIKE sought to open in Minneapolis.
JAEDIKE pleaded guilty yesterday before U.S. District Judge Donovan W. Frank in U.S. District Court in St. Paul, Minn.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS.
This case is being prosecuted by Assistant United States Attorney Tracy L. Perzel.
Defendant Information:KELLY LOUISE JAEDIKE, 46
Eagan, Minn.Convicted:
- Conspiracy to defraud the United States, 1 count
- Attempt to evade or defeat tax, 1 count
DAVID DALE AHERN, 49
Eau Claire, Wisc.Convicted:
- Conspiracy to defraud the United States, 1 count
Former Purchasing Agent for the Jicarilla Apache Nation Pleads Guilty to Federal Embezzlement ChargeRead the Press Release
ALBUQUERQUE – The former purchasing agent for the Jicarilla Apache Nation pled guilty yesterday in federal court in Albuquerque, N.M., to embezzling funds from the Jicarilla Apache Nation.
Vanessa Cohoe, now known as Vanessa Vicenti, 46, formerly of Dulce, N.M., was charged in an indictment filed on Dec. 17, 2015, with theft of funds belonging to the Jicarilla Apache Nation, an organization receiving more than $10,000 in federal funds. The indictment alleged that Cohoe committed the crime by embezzling approximately $23,039.23 from the Tribe between Dec. 2010 and May 2011. The indictment also charged Cohoe with embezzling more than $1000 in funds belonging to an Indian Tribal organization by using the Jicarilla Apache Nation’s credit card on eight separate occasions between Jan. 2011 and April 2011.
During yesterday’s proceedings, Cohoe pled guilty to the theft charge, and admitted embezzling funds belonging to the Jicarilla Apache Nation. The plea agreement states that Cohoe committed the crime while employed as the purchasing agent for the Jicarilla Apache Nation, a position she held from Feb. 2007 through June 2011. In that capacity, Cohoe had access to and use of the Tribe’s Sam’s Club credit card for authorized purchases. From Jan. 2010 through May 2011, Cohoe made unauthorized purchases using the Tribe’s credit card for gift cards, alcohol, groceries, clothes and cosmetics for herself and her family. Cohoe concealed her embezzlement scheme by intercepting the credit card bills and modifying them before submitting them to the billing department for payment. Cohoe was suspended from her position in May 2011 and was terminated after a full investigation in June 2011.
Under the terms of her plea agreement, Cohoe will be sentenced to a one to five year term of probation. Cohoe also will be required to pay $5,000 in restitution to the Tribe, the amount being the difference between the total unauthorized purchases and the amount that the Jicarilla Apache Nation has been reimbursed by its insurer. Cohoe will remain on conditions of release and under pretrial supervision pending her sentencing hearing which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI. Assistant U.S. Attorney Kristopher N. Houghton is prosecuting the case.
Former Lee Police Chief Sentenced to Prison for ExtortionRead the Press Release
BOSTON – The former chief of the Lee Police Department was sentenced today in U.S. District Court in Springfield for extorting a $4,000 payment from a couple facing prostitution charges in Southern Berkshire District Court.
“Mr. Buffis abused his position of authority by extorting cash for his own benefit and greed,” said United States Attorney Carmen M. Ortiz. “This degrades the respect and trust that communities place in their law enforcement officials, and is contrary to the values promoted by those who uphold the law.”
“Mr. Buffis turned his back on his law enforcement profession and his community, choosing instead to break the laws he was sworn to uphold,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “The FBI hopes this sentence sends a clear message—corruption at all levels of government will not be tolerated.”
Joseph Buffis, 57, of Pittsfield, Mass., was sentenced by U.S. District Court Judge Mark G. Mastroianni to 27 months in prison, two years of supervised release and forfeiture of $4,000. He was convicted following a three-week trial in June 2015 of extortion under color of official right.
As the Lee Police Chief, Buffis solicited and controlled public donations to the Edward J. Laliberte Toy Fund, a children’s holiday toy fund. On Feb. 21, 2012, Buffis extorted a $4,000 “donation” check to the toy fund from two individuals who were facing prostitution-related charges. Buffis deposited the $4,000 check into the toy fund’s bank account and then quickly withdrew $3,990 of these funds in three checks that he wrote to “cash.” Buffis did not cash these checks, but instead deposited them into a personal bank account, and then used the diverted funds to pay various personal expenses. When law enforcement commenced an investigation into this activity, Buffis repeatedly lied about the funds.
At today’s sentencing, Judge Mastroianni stated that, “Mr. Buffis used his position as the highest ranking police officer to essentially auction off his own concept of justice.” He went on to say, “To impugn the integrity of a department like you did is a monumental, terrible, unfair thing, a selfish thing.”
U.S. Attorney Ortiz; SAC Shaw; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Steven H. Breslow and Deepika Shukla of Ortiz’s Springfield Branch Office.
Former Airman Pleads Guilty to Possession of Child PornographyRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that on May 16, 2016, Ronald W. McNair, Jr., 25, formerly stationed at Scott Air Force Base, pled guilty to Possession of Prepubescent Child Pornography. McNair faces a term of imprisonment of not more than twenty years, a fine up to $250,000, and a term of supervised release of five years to life. Sentencing for McNair is set for September 6, 2016, in Benton, Illinois.
The charge arose after the National Center for Missing and Exploited Children ("NCMEC") produced three (3) CyberTipline reports after receiving information from Microsoft that an individual, identified as Ron McNair, was uploading what appeared to be images of child pornography to his Microsoft SkyDrive Account. The first CyberTipline Report noted that Ron McNair, using an e-mail address of "[email protected]," had uploaded one image to his SkyDrive account on March 24, 2014. The second CyberTipline Report noted that Ron McNair, using the e-mail address "[email protected]," uploaded one image to that account on April 14, 2014. Finally, the third CyberTipline Report noted that the person identified as Ron McNair uploaded twenty-one images to that account, again using the e-mail address "[email protected]," on April 14, 2014. All of the CyberTipline Reports reported that McNair used the IP address 75.132.130.141 when he uploaded the images.
An administrative subpoena determined that the subscriber of the IP address used at the time of the uploads belonged to McNair, who was stationed at Scott Air Force Base but resided in Belleville, Illinois.
The Department of Homeland Security executed a search warrant at McNair’s address. When McNair and his roommate were asked if they shared electronic devices, both individuals indicated that they did not. The roommate also indicated that the two even had separate wi-fi accounts. During the search, McNair made some statements about viewing child pornography on the Torrent network but refused to divulge the specific websites that he had visited. Among the items seized from McNair was a Western Digital, My Passport, external hard drive.
A forensic review of the Western Digital, My Passport, external hard drive, revealed that it contained 4,522 image and 144 video files of child pornography. A large number of these image and video files were of prepubescent children.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case was investigated by the Belleville Police Department, the Air Force Office of Special Investigations, and the Department of Homeland Security – Homeland Security Investigations. The case is assigned to Assistant United States Attorney Angela Scott and Special Assistant United States Attorney Shane Kelbley.
Florida Man Sentenced to 8 Years in Prison for Role in Heroin-Cocaine Trafficking Conspiracy in Monroe-Wayne CountiesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a man who pleaded guilty to participating in a heroin and cocaine trafficking conspiracy that operated in Monroe and Wayne Counties in 2011-2014, was sentenced to eight years in prison today by Senior U.S. District Court Judge Richard P. Conaboy in Scranton.
According to United States Attorney Peter Smith, the defendant, Carlos Ruben Cruz, age 48, who resided in Wayne and Monroe Counties in Pennsylvania throughout much of the drug conspiracy but was arrested in the state of Florida, previously admitted to overseeing the conspiracy which involved three of his children and the distribution of between 400 and 700 grams of heroin, which is equivalent to between 13,000 and 23,000 retail bags of heroin.
Cruz was indicted by a federal grand jury in Scranton in August 2014, as a result of an investigation by the Drug Enforcement Administration, the Pennsylvania State Police, the Wayne County District Attorney’s Office, and Pocono Mountain Regional Police.
Three of Cruz’s children, Rubie Cruz, age 26, Tiffanyann Cruz, age 22, and Brandon Cruz, age 24, have previously pleaded guilty to participating in the drug conspiracy. Brandon Cruz and Tiffanyann Cruz were sentenced to prison terms. Rubie Cruz is awaiting sentencing.
Judge Conaboy also ordered Carlos Cruz to serve three years on supervised release following his prison sentence.
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
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.
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Florida Man Convicted of Cocaine Conspiracy Involving over 5 KilogramsRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that JACOBO GARCIA, age 28, of Ft. Meyers, Florida, pled guilty before U.S. District Judge Shelly D. Dick to conspiring to possess with the intent to distribute over five kilograms of cocaine. Following his conviction, GARCIA was remanded into the custody of the U.S. Marshal’s Service. A sentencing hearing has not yet been scheduled.
During his guilty plea hearing, GARCIA admitted that, on February 29, 2016, Baton Rouge Police Officers found 5.7 kilograms of cocaine hidden in the gas tank of GARCIA’s vehicle. The cocaine was packaged in fifteen (15) vaccum sealed bags. GARCIA admitted that he and a passenger had picked up the aforementioned cocaine in Houston, Texas.
U.S. Attorney Green stated: “This case is yet another example of the drug pipeline that runs through and into our district. We will continue to work aggressively with the DEA, the Baton Rogue Police Department, and our many other federal, state, and local law enforcement partners to fight this menace.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the U.S. Drug Enforcement Administration, and the Baton Rouge Police Department. The case is being prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.
Final Defendant Pleads Guilty to Armed Robberies, Killing of Store ClerkRead the Press Release
ABINGDON, VIRGINIA – The last of three individuals who went on an armed robbery spree that ended with the killing of a store clerk in Mr. Airy, North Carolina in 2012, pled guilty today in federal court to a number of charges that carry the potential for a life sentence, United States Attorney John P. Fishwick Jr. announced today.
Joshua Robert Berry, 32, of Bluewell, Virginia, pled guilty today to two counts of armed robbery, two counts of brandishing a firearm during those armed robberies, one count of conspiring to commit armed robbery and one count of using a firearm in the commission of an armed robbery that resulted in the death of another person.
Last week, two others involved in the crime spree, Emmanuel William Foster, 27, of Bluewell, Virginia, pled guilty to two counts of armed robbery, two counts of brandishing a firearm during those armed robberies, one count of conspiring to commit armed robbery and one count of using a firearm in the commission of an armed robbery that resulted in the death of another person. Sarah Looney Berry, 28, of Bluewell, Virginia, pled guilty last week to one count of conspiring to commit armed robbery and one count of using a firearm in the commission of an armed robbery that resulted in the death of another person.
“These individuals took part in a crime spree that ultimately robbed a man of his life,” United States Attorney John P. Fishwick Jr. said today. “For nearly a month, a community was terrorized as these defendants committed armed robbery after armed robbery. Justice has been served today and I am thankful to the brave men and women who investigated this case and ultimately put an end to this group’s actions.”
According to evidence presented at previous hearings by First Assistant United States Attorney Anthony P. Giorno and Assistant United States Attorney Zachary T. Lee, Joshua Beery, Foster, and Sarah Berry, conspired to commit a series of armed robberies in Virginia, West Virginia and North Carolina from April 2012 through May 2012.
Berry admitted today that on April 29, 2012, he and Foster robbed the Marquee Cinema in Wytheville, Virginia. Both men carried firearms during the robbery and were wearing black hoodies with bandanas covering their faces. Berry said they entered the business with their weapons drawn and ordered the manager to empty the registers. When they were told there was no money in the registers, Joshua Berry and Foster took the manager, and another employee, into a back room and told them to open a safe. As the manager was having trouble opening the safe, Foster put his handgun to the manager’s head and threatened to kill him if the other employee did not get the safe open. The manager was able to open the safe, which contained $4,317. Video from a nearby Wal-Mart showed a dark colored, four-door sedan, matching a vehicle commonly operated, at that time, by Sarah Berry, waiting in the parking lot behind the theater. Sarah Berry admitted last week in federal court to driving Joshua Berry and Foster away from the robbery in the sedan.
Joshua Berry also admitted today that on May 21, 2012 he and Foster robbed the Abingdon Cinemall. The two men once again entered the business wearing black hoodies, but this time wore full-face masks and sunglasses and once again had guns drawn. When the manager observed the men entering the business, she ran to her office, one of the men saw her and chased her. Foster and Joshua Berry robbed the cash registers of the business and left with approximately $200 in cash. Video surveillance from Abingdon High School, which is located nearby, showed a pick-up truck waiting behind the business with its lights on during the robbery. Sarah Berry admitted last week to using her father’s pick-up truck during the robbery to drive Foster and Joshua Berry away from the scene.
On May 25, 2012, at approximately 11:50 p.m., Joshua Berry and Foster entered Eddie’s Zip Foods in Mt. Airy, North Carolina. The store owner, Donald Arnder, and his employee, Gerardo Rojas, were reviewing the days’ receipts and getting ready to close the store at midnight. The two men entered the store with Joshua Berry carrying a rifle and Foster carrying a handgun. Joshua Berry admitted today that he and Foster entered the store and that Foster and Arnder, who had a .38 caliber revolver, exchanged gunfire. Foster shot Arnder twice with a .9 mm handgun, once in the arm and once in the abdomen. Arnder died at the scene. During the exchange, Foster was shot once. After Joshua Berry carried Foster to Sarah Berry’s waiting car, the two brought Foster to a nearby residence and tried to remove the bullet themselves. When they could not get the bullet out, they took Foster to a hospital in Bland, Virginia for treatment. Foster was eventually transferred to a trauma center in Roanoke, Virginia for treatment.
The investigation of the case was conducted by the Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mt. Airy, North Carolina, Police Department, the Abingdon Police Department, the Wytheville Police Department and the Bluefield, West Virginia Police Department. First Assistant United States Attorney Anthony P. Giorno and Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Eight Defendants Charged with Bankruptcy Fraud Involving over $3 Million in Concealed AssetsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Guy G. Gebhardt, Acting United States Trustee for Florida, Georgia, Puerto Rico and the U.S. Virgin Islands (Region 21), announce the filing of federal charges against 8 defendants in 5 separate cases, involving the alleged concealment of over $3 million dollars in assets from the United States Bankruptcy Court, the United States Trustee’s Office in Miami, Florida, and the defendants’ chapter 7 bankruptcy trustees. The alleged conduct was committed in order to shield assets from creditors and avoid the repayment of outstanding debts.
United States Attorney Wifredo A. Ferrer stated, “The U.S. Attorney’s Office and our law enforcement partners are committed to bringing to justice those who defraud the United States Bankruptcy Courts and the United States Trustee’s Office, and abuse the bankruptcy process in order to escape the repayment of personal debts. Each year, countless bankruptcy petitions are filed by law-abiding individuals who face difficult financial circumstances. The cases announced today reaffirm our dedicated efforts to protect the federal bankruptcy system from fraud and ensure that those in need can benefit from vital governmental support services.”
“Federal bankruptcy proceedings can be a lifesaver for honest individuals overwhelmed by debt,” said William J. Maddalena, Assistant Special Agent in Charge, FBI Miami. “Yet others seek to line their pockets through illicit actions. The FBI takes seriously our responsibility to pursue allegations of bankruptcy fraud and will investigate debtors who corrupt the bankruptcy process through deceit and lies.”
Acting United States Trustee Guy G. Gebhardt stated, “Criminal bankruptcy fraud threatens the integrity of the bankruptcy system, as well as public confidence in that system. We are deeply grateful to U.S. Attorney Wifredo A. Ferrer and our partners for their commitment to combating bankruptcy-related crimes, as demonstrated by the charges announced today against eight defendants.”
The U.S. Trustee Program is the Justice Department component that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 21 is headquartered in Atlanta, Ga., with additional offices in Miami, Orlando, Tallahassee, and Tampa, Fla.; Macon and Savannah, Ga.; and San Juan, P.R.
Today, United States Attorney Ferrer, the FBI and Acting United States Trustee Gebhardt announce the most recent results of their joint investigative efforts to combat bankruptcy fraud.
1. United States v. Kathleen Anne Smith Cutuli and Gregory Lee Cutuli, Case No. 16-20233-CR-Altonaga
On April 8, 2016, Kathleen Anne Smith Cutuli, 65, and Gregory Lee Cutuli, 65, both of Plant City, were charged in a seven-count indictment with committing criminal offenses related to Kathleen Cutuli’s petition for chapter 7 bankruptcy.
According to allegations contained in the indictment, the defendants falsely and fraudulently transferred and concealed property and then Kathleen Cutuli declared bankruptcy to avoid paying money to Kathleen’s former business partner. Specifically, Kathleen and Gregory Cutuli transferred Kathleen’s $1,819,068 federal income tax refund to Gregory and concealed the transfer from the Bankruptcy Court, the U.S. Trustee’s Office and the chapter 7 bankruptcy trustee. Additionally, Kathleen Cutuli made false statements in her bankruptcy petition filed with the U.S. Bankruptcy Court in Miami, FL, and concealed from the Bankruptcy Court, the U.S. Trustee’s Office and the chapter 7 bankruptcy trustee approximately $32,000 in furs and jewelry, approximately $114,000 in household goods and furnishings, and approximately $117,404 in cash. In total, Kathleen Cutuli and Gregory Cutuli transferred and concealed more than $2,000,000 in assets.
Kathleen and Gregory Cutuli are charged with conspiracy to fraudulently transfer and conceal property in contemplation of a bankruptcy proceeding under Title 11 of the U.S. Bankruptcy Code, in violation of Title 18, United States Code, Section 371. Kathleen Cutuli is also charged with the fraudulent transfer and concealment of property in contemplation of a case under Title 11, in violation of Title 18, United States Code, Section 152(7); concealment of property in connection with a case under Title 11, in violation of Title 18, United States Code, Section 152(1); and making a false oath and account in relation to a case under Title 11, in violation of Title 18, United States Code, Section 152(2).
This case is being prosecuted by Assistant U.S. Attorney Matthew Langley.
2. United States v. Rolando Garcia and Aileen Crespo, Case No. 16-20297-CR-Scola
On April 29, 2016, Rolando Garcia, 52, and Aileen Crespo, 43, of Miami, were charged in an eleven-count indictment for committing criminal offenses related to Garcia’s petition for chapter 7 bankruptcy.
According to the allegations contained in the indictment, from at least as early as February 28, 2012, and continuing through October 10, 2014, Garcia and Crespo conspired to commit bankruptcy fraud by transferring assets they held jointly to Crespo in a divorce settlement, before Garcia filed for bankruptcy. These pre-bankruptcy transfers shielded the assets from Garcia’s creditors once Garcia filed a false and fraudulent bankruptcy petition on July 19, 2013 in U.S. Bankruptcy Court in Miami, Florida. Among the assets concealed were properties in Ashe County, North Carolina, valued at approximately $366,300.00; $36,000 in cash used to purchase a Jaguar vehicle valued at approximately $80,000; and $100,257.60 in cash from the sale of a condo in the Bahamas.
Garcia and Crespo are charged with conspiracy to commit bankruptcy fraud, the fraudulent transfer and concealment of property in contemplation of a case under Title 11, and the fraudulent transfer and concealment of property in connection with a case under Title 11. Garcia is also charged with making false oaths and accounts in relation to a case under Title 11.
This case is being prosecuted by Assistant U.S. Attorney Daniel Cervantes.
3. United States v. Rebecca Solemani-Appelbaum, Case No. 16-20212-CR-Williams
On April 1, 2016, Rebecca Solemani-Appelbaum, 50, of Boca Raton, was charged in a ten-count indictment for committing criminal offenses related to her petition for chapter 7 bankruptcy.
According to the allegations contained in the indictment, on or about February 13, 2012, before filing for chapter 7 bankruptcy in U.S. Bankruptcy Court in Miami, Florida, Solemani-Appelbaum liquidated approximately $102,445.89 from her IRA Account. Solemani-Appelbaum then transferred the money into a family member’s account, over which the defendant had sole authority. Between March 1, 2012, and April 11, 2012, Solemani-Appelbaum used almost all of the transferred funds. Solemani-Appelbaum failed to disclose the transfer of those funds, as required in her bankruptcy petition and various amended filings. When asked about the accuracy of her disclosures in the bankruptcy petition, Solemani-Appelbaum made false representations to the U.S. Bankruptcy Court, the U.S. Trustee’s Office and the chapter 7 trustee.
Solemani-Appelbaum is charged with the fraudulent transfer and concealment of property in contemplation of a case under Title 11, concealment of property in connection with a case under Title 11, and making a false oath and account in relation to a case under Title 11.
The case is being prosecuted by Assistant U.S. Attorney Daniel Cervantes.
4. United States v. Walter Alexander Lista, Case No. 16-20318-CR-Martinez
On May 5, 2016, Walter Alexander Lista, 43, of Pinecrest, was charged in a twelve-count indictment for committing criminal offenses related to his petition for chapter 7 bankruptcy.
According to the allegations contained in the indictment, from on or about March 26, 2012, through on or about February 21, 2014, Lista transferred and concealed his assets, including a Jeep Wrangler, a thirty-four foot boat (“the Isabella”), approximately $41,200 in cash, and his interest and roles in companies that he owned. On or about May 30, 2013, Lista filed for chapter 7 bankruptcy in U.S. Bankruptcy Court in Miami, Florida. The indictment alleges that Lista failed to disclose the transfer of these assets, the value of which exceeds approximately $160,000, as required in his bankruptcy petition and his various amended filings. When asked about the accuracy of his disclosures in the bankruptcy petition, Lista made false representations to the U.S. Bankruptcy Court, the U.S. Trustee’s Office and the chapter 7 trustee.
Lista is charged with conspiracy to fraudulently conceal and transfer property in connection with a case under Title 11, the fraudulent transfer and concealment of property in contemplation of a case under Title 11, concealment of property in connection with a case under Title 11, and making a false oath and account in relation to a case under Title 11.
The case is being prosecuted by Assistant U.S. Attorney Jonathan K. Osborne.
5. United States v. Yechezkel Nissenbaum and Tamar Nissenbaum, Case No. 16-20333-CR-Cooke
On May 6, 2016, Yechezkel Nissenbaum, 39, and Tamar Nissenbaum, 35, both of Miami Beach, were charged in a three-count indictment for committing criminal offenses related to their joint petition for chapter 7 bankruptcy.
According to the allegations contained in the indictment, on or about March 3, 2010, the Nissenbaums liquidated a Regions Bank Certificate of Deposit. On or about February 10, 2011, the Nissenbaums filed a joint petition for chapter 7 bankruptcy in U.S. Bankruptcy Court in Miami, Florida. The indictment alleges that the Nissenbaums failed to disclose the liquidation of the Certificate of Deposit, worth approximately $141,829.61, as required in their bankruptcy petition. When asked about the accuracy of her disclosures in the bankruptcy petition, Yechezkel Nissenbaum made false representations to the U.S. Bankruptcy Court, the U.S. Trustee’s Office and the chapter 7 trustee.
The Nissenbaums are charged with conspiracy to fraudulently transfer or conceal property in contemplation of a case under Title 11 and the fraudulent transfer and concealment of property in contemplation of a case under Title 11. In addition, Yechezkel Nissenbaum is charged with making a false oath and account in relation to a case under Title 11.
The case is being prosecuted by Assistant U.S. Attorney Jonathan D. Stratton.
Mr. Ferrer commended the investigative efforts of the FBI and thanked the U.S. Trustee’s Office for referring each of these matters.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Detroit Man Sentenced to More Than 7 Years on Federal Drug Conspiracy ChargeRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Raymond “Ken” Ferris, 60, of Detroit, Maine, was sentenced today in U.S. District Court in Bangor, Maine to a 87 month term of imprisonment and a 3 year term of supervised release for conspiracy to possess with the intent to distribute and distribute oxycodone.
According to court records, between April 2013 and April 2015, Ferris conspired with others in Somerset County to distribute and possess with intent to distribute oxycodone supplied by an out-of-state source of supply. He was arrested on April 16, 2015 when deputies and agents with the Somerset County Sheriff’s Department and the U.S. Drug Enforcement Administration executed a search warrant at his Detroit, Maine residence. Agents seized 100 oxycodone 30 mg tablets, heroin, marijuana and an assortment of drug paraphernalia. During the course of the investigation an undercover DEA agent purchased oxycodone from Ferris on two separate occasions.
Ferris was prosecuted federally in 2006 for possession with intent to distribute over a kilogram of cocaine. He was sentenced in U.S. District Court in Bangor to 51 months imprisonment.
Danville Man Sentenced for Manufacturing and Distributing Illegal Dietary SupplementsRead the Press Release
ABINGDON, VIRGINIA – A Danville business owner, who manufactured and shipped illegal pro-hormones, designer steroids, throughout the United States, was sentenced today in the United States District Court for the Western District of Virginia in Abingdon.
Steven Donald Wood, 38, of Danville, Va., previously waived his right to be indicted and pled guilty to a one count Information charging him with illegally distributing misbranded drugs in interstate commerce. United States District Judge James P. Jones granted the United States’ motion for a reduced sentence based on Wood’s extraordinary assistance in the investigation and prosecution of others and sentenced Wood to probation for a term of one year. Judge Jones also ordered Wood to forfeit $1.5 million which had been paid prior to Wood pleading guilty and pay a fine of $10,000. Since soon after his arrest in 2011, Wood has provided extensive cooperation in the United States’ investigation and prosecution of others in the pro-hormone business.
“The misbranding of drugs is a serious offense that puts those who ingest these substances in danger,” United States Attorney John P. Fishwick Jr. said today. “I am grateful to our law enforcement partners who continue to investigate the misbranding of these powerful steroids.”
“Dietary supplements that contain active pharmaceutical ingredients not approved by FDA present a serious health risk to those who take them,” said Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigation’s Metro Washington Field Office. “Our office will continue our vigilance and work to remove these dangerous drugs from the U.S. marketplace.”
Wood, through his business entities Competitive Edge Labs, LLC, and MKZ Exports, LLC, caused the manufacture and distribution of large amounts of dietary supplements, specifically “pro-hormones,” a new generation of steroids not specifically listed as an anabolic steroid under the Controlled Substances Act. Wood obtained his raw powder from Xinli “Eric” Li, a Chinese national, who pleaded guilty in federal court in Abingdon on December 4, 2015. Li forfeited $1.6 million and served five months in prison prior to being deported to China.
The dietary supplements were M-Drol and H-Drol. M-Drol listed its single active ingredient as 2a, 17a di methyl etiocholan 3-one, 17b-ol, a chemical nomenclature for methasterone, also known as “Superdrol.” In 2011, the FDA identified methasterone as a “designer steroid” or “designer drug”, a structural or functional analog of a controlled substance designed to mimic the pharmacological effects of the original drug. H-Drol listed its single active ingredient as 4-chloro-17a-methyl-androst-1,4-diene-3-17b-diol, the nomenclature for a designer drug identified as halovar, a clone of halodrol. Both products were deemed to be misbranded drugs because the label was false, that is, the product was labeled as a “dietary supplement” but contained a “steroid” or drug. Therefore, neither product met the definition of a dietary supplement. Both products were popular among those seeking an increase in muscle mass and loss of body fat and were distributed widely in the U.S. and overseas, both at retail stores and via the internet. The use of anabolic steroids or dietary supplements that contain anabolic steroids or designer steroids may trigger numerous adverse health effects in the human body.
The investigation, known as Operation Grasshopper, continues into others in the United States who illegally manufactured pro-hormones. Additional charges are anticipated.
The investigation is being conducted by the United States Food and Drug Administration – Office of Criminal Investigations. The Pittsylvania County Sheriff’s Office and Pittsylvania County Commonwealth’s Attorney’s Office provided assistance in the case. Assistant United States Attorney Randy Ramseyer and Special Assistant United States Attorney Kevin Jayne are prosecuting the case for the United States.
Conway Man Sentenced to 25 Years in Prison for Production of Child PornographyRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Special Agent in Charge Diane Upchurch, of the Little Rock Field Office for the Federal Bureau of Investigation (FBI), announced today that Nicholas Tensley, age 29, of Conway, Arkansas, was sentenced to 25 years imprisonment for production of child pornography.
Nicholas Tensley was indicted on May 6, 2015, with one count of production of child pornography and one count of distribution of child pornography. On October 9, 2015, Tensley pled guilty to production of child pornography. On Tuesday, Tensley was sentenced by Chief United States District Judge Brian S. Miller to 25 years imprisonment, and ten years of supervised release.
"All too often some people argue that the downloading of child pornography from the internet is a ‘victimless’ crime. Nothing could be further from the truth." Thyer said. "As a matter of fact this case clearly demonstrates that as long as there is a market for individuals who would download child pornography, there will be individuals like Tensley who will sexually abuse other children so that they can then trade or sell those images of abuse with like-minded people." Thyer went on to say, "The sexual exploitation of a four-year-old child in the care of a trusted individual is despicable and sickening in and of itself. However, this child—along with thousands of others like her—will be victimized over and over again as sexual deviants download and view the images of her abuse from the internet. "
The charges in the Indictment were based upon an investigation that began in March 2015 when an undercover police officer (UC) with the FBI and the District of Columbia Metropolitan Police Department (MPD) Child Exploitation Task Force posted an advertisement in an area of a website site frequented by individuals who have a sexual interest in children and incest.
On April 14, 2015, Nicholas Tensley answered the UC’s advertisement stating, "I just moved to the area and looking for like minded people. Im 5’10" 28 blk male." The UC responded, "Sweet DC hereinto yng incest, etc…You a dad?" Tensley responded and stated he had two female children, ages six and ten. After a brief email exchange, Tensley provided his KIK screen name. During the communications with the UC, Tensley sent two images of child pornography and indicated they were pictures of his daughters.
On April 14, 2015, Tensley stated he had engaged in vaginal intercourse with his daughter as recently as two weeks prior to the messaging conversation and had performed oral sex with her more recently. On April 15, 2015, during a chat with the UC on KIK, Tensley sent seven images of his purported daughter. Several of the images contained sexually explicit images of a prepubescent female.
On April 16, 2015, members of the Little Rock Division of the FBI located and arrested Tensley. Tensley was advised of his Miranda rights and confessed to distribution of the pictures in his conversation with the UC. Tensley provided written consent to search his Samsung S-4 Galaxy telephone and showed agents the conversation in his KIK application. Tensley initially denied taking the photographs; however, he later admitted to taking the photographs using his Samsung Galaxy S-4 telephone in the Fred’s Store parking lot in Star City, Arkansas. The victim was identified by Tensley as a four-year-old female. Tensley does not have any minor daughters but was left to babysit the minor female. Tensley further stated he had deleted the images from his telephone after communicating with the UC because he became nervous he might be speaking with law enforcement officials.
"The production of pornography involving children is an affront to our communities. The sentencing today reflects our disgust at the actions of Tensley," stated Special Agent In Charge Diane Upchurch with the FBI in Little Rock. "We appreciate the efforts of the United States Attorney’s Office, the Conway Police Department, and the District of Columbia Metropolitan Police Department in this case, and will continue to work with all of our partners to identify these predators and their victims."
The investigation was conducted by the Little Rock Office of the Federal Bureau of Investigation and the Federal Bureau of Investigation (FBI)/MPD Child Exploitation Task Force. The case was prosecuted by Assistant United States Attorney Kristin Bryant.
Cape Girardeau County Man Pleads Guilty to Federal Charges Involving Food Stamp FraudRead the Press Release
Cape Girardeau, MO – The co-owner of B & H Convenience store pled guilty Monday to charges of misusing the Supplemental Nutrition Assistance Program (SNAP), formerly known as the food stamp program. Patrick Buck admitted with his plea that he illegally redeemed up to $550,000 in SNAP benefits between January 2010 and March 2014.
According to court documents, the Missouri Department of Social Services, Family Support Division (FSD) issues Electronic Benefits Transfer Cards (EBT) for the Supplemental Nutrition Assistance Program (SNAP), more commonly known as food stamps. Authorized grocery retailers can only accept and redeem SNAP benefits for the sale of eligible food items. They are not permitted to exchange or redeem SNAP benefits for cash or other ineligible items such as household goods, alcoholic beverages, tobacco products, cellular telephones or other non-food items.
Patrick Buck, Cape Girardeau, MO, pled guilty to four felony counts of unauthorized use of SNAP benefits. He appeared Monday in Cape Girardeau before United States District Judge Ronnie L. White. Sentencing has been set for August 15, 2016.
Each count carries a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the United States Department of Agriculture, Office of Inspector General-Investigations and Sikeston Department of Public Safety. Assistant United States Attorney Anthony L. Franks is handling the case for the U.S. Attorney’s Office.
Cape Girardeau County Man Pleads Guilty to Federal Charges Involving Crop Insurance FraudRead the Press Release
Cape Girardeau, MO – Bobby David Lowrey pled guilty to multiple charges involving federal crop insurance fraud, theft of government property and wire fraud.
According to court documents, Bobby David Lowrey owned and operated farms and related businesses in Parma, New Madrid County, Missouri, including Bobby David Lowrey Farms, Lowrey and Lowrey, Inc. of Parma, Missouri, John Radin Farms and Kathy Ellsworth Farms.
Bobby David Lowrey placed farms in other people’s names in order to obtain Direct and Counter-cyclical Payment Program proceeds that he was not eligible to receive under the federal government’s crop insurance program. The investigation disclosed that John Radin, the alleged operator of Radin Farms, was employed by Bobby David Lowrey and not actively engaged in farming and did not have any financial interest in the farming operations. Lowery made false statements to the United States Department of Agriculture pertaining to the Federal Crop Insurance Corporation and Direct and Counter-cyclical Payment Program.
From 2007 to 2012, Bobby David Lowrey obtained $240,367 in Direct and Counter-cyclical Payments in the name of John Radin Farms. Additionally, $207,729 worth of Multiple Peril Crop Insurance Indemnities, premium subsidies and administrative subsidies were paid on behalf of John Radin Farms between 2008 and 2012.
The investigation also disclosed that between 2006 and 2011, Bobby David Lowrey transmitted by wire “Extended Work Search Waivers” to the Missouri Division of Employment Security and reported that his employees were on a temporary layoff when in reality they were still working and being paid. The transmissions made to the Missouri Division of Employment Security resulted in more than $60,000 worth of unemployment Insurance benefits being paid to employees that they were not eligible to receive.
Bobby David Lowrey, Parma, MO, pled guilty to two felony counts of making false statements regarding crop insurance benefits, one felony count of theft of government property and one felony count of wire fraud before United States District Judge Stephen N. Limbaugh, Jr., in Cape Girardeau. Sentencing has been set for August 16, 2016.
These charges carry penalties ranging from 5 to 30 years in prison and or fines up to $1 million. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the United States Department of Agriculture-Office of Inspector General-Investigations, Missouri State Highway Patrol-Rural Crimes Investigative Unit and United States Department of Labor-Office of Inspector General-Investigations. Assistant United States Attorney Anthony L. Franks is handling the case for the U.S. Attorney’s Office.
Cambria County Man Pleads Guilty to Firearms ViolationsRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., pleaded guilty to a charge of violating federal firearms laws, United States Attorney David J. Hickton announced today.
Montez Ricardo Holland, 54, of Johnstown, Pa., pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on Jan. 4, 2013, Holland possessed a Sturm, Ruger & Company, Model P95DC, 9 mm semi-automatic pistol. On Apr. 27, 1998, Holland was convicted in Lycoming County, Pa., of a drug trafficking crime, which is a crime punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing firearms or ammunition.
Judge Gibson scheduled sentencing for Aug. 30, 2016, at 1:00 p.m. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Holland.
According to Mr. Hickton, Holland is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
Buffalo Woman Pleads Guilty to Conspiracy to Distribute HeroinRead 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 Jeannette Knightner, 34, of Buffalo, NY, pleaded guilty before U.S. District Judge William M. Skretny to conspiracy to possess with intent to distribute, and to distribute, heroin within 1,000 feet of public housing authority property. The charge carries a mandatory minimum penalty of one year in prison, a maximum of 40 years, and a fine of $2,000,000.
Assistant U.S. Attorney Edward H. White, who is handling the case, stated that in June of 2014, the defendant agreed with Reginald Royal, Sr. to store heroin at her previous residence at 31 Olcott Lower in Lackawanna. On June 11, 2014, Reginald Royal, Sr. sold $100 worth of heroin to a confidential informant at Royal, Sr.’s residence at 1 Olin Lane which is part of the Baker Homes Public Housing Projects, a public housing facility owned by the Lackawanna Municipal Housing Authority. The heroin sold to the confidential informant was retrieved from the defendant’s residence.
In addition, at the request of co-defendant Royal, Sr., on June 17, 2014, the defendant drove to Columbus, Ohio with another individual and purchased 23.5 grams of heroin for $2,200 that Royal, Sr. had provided to her. On June 18, 2014, as Knightner was driving back to New York, she and the other individual were pulled over by the Erie County Sheriff’s Office near Angola, NY and the heroin was discovered in the defendant’s purse.
The plea is the result of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent in Charge, the Lackawanna Police Department, under the direction of James L. Michel, Chief of Police, and the Erie County Sheriff’s Office, under the direction of Timothy B. Howard, Sheriff.
Sentencing is scheduled for August 31, 2016 at 11:00 a.m. before Judge Skretny.
Buffalo Man 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 Renwick Samuel, 51, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine, was sentenced to time served (41 months) in prison.
Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that between 2006 and December 2012, the defendant conspired with three co-defendants to possess and distribute cocaine in Buffalo. Samuel was arrested in December 2012 along with Angel Gonzalez and Mica Donadelle. Another co-defendant, Kevin Liburd, was arrested in 2014 in the Virgin Islands and extradited to the Western District of New York. Gonzales and Liburd have been convicted and sentenced. Donadelle has been convicted and is awaiting sentencing.
Today’s sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation 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.
Boston Man Sentenced to Ten Years in Prison for Child Sex TraffickingRead the Press Release
BOSTON – A Boston man was sentenced today in U.S. District Court in Boston in connection with sex trafficking a 16-year-old girl.
Jonathan White, 29, of Dorchester, was sentenced by U.S. District Court Judge Indira Talwani to 10 years in prison and five years of supervised release. In December 2014, White pleaded guilty in U.S. District Court for the Eastern District of New York to recruiting and transporting a minor to engage in prostitution. The matter was transferred to the District of Massachusetts for sentencing.
In June 2012, a 16 year-old girl from Georgia began chatting, over Tagged.com, a social networking site, with an individual who was working for White as a prostitute and recruited others to prostitute for White. White paid for the victim’s bus ticket from Atlanta to Orlando, Fla. Once there, the victim engaged in commercial sex acts with clients solicited through Backpage.com ads, with White ultimately receiving the money that customers paid. White and the prostitute then drove the victim from Florida to Brooklyn, where she engaged in more commercial sex acts solicited over the Internet. A few weeks later, the victim became involved with another pimp. After that pimp was arrested, law enforcement discovered White’s role in the victim’s exploitation and he was charged.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation in Boston, made the announcement today. The case was prosecuted in Boston by Assistant U.S. Attorney Seth Kosto of Ortiz’s Civil Rights Enforcement Team, and in Brooklyn by Assistant U.S. Attorney Soumya Dayanana.
Blue Springs Man Sentenced to 20 Years for PCP ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Blue Springs, Mo., man has been sentenced in federal court for his role in a conspiracy to distribute PCP as well as a money-laundering conspiracy.
Walter Deandre Sorrells, also known as “Juice,” “Waterboy,” and “Walt,” 39, of Blue Springs, was sentenced by U.S. Chief District Judge Greg Kays on Monday, May 16, 2016, to 20 years in federal prison without parole.
On Aug. 13, 2015, Sorrells pleaded guilty to participating in a conspiracy to distribute at least one kilogram of PCP from Jan. 1, 2007, to March 13, 2013, as well as a conspiracy to conduct financial transactions that involved the proceeds of illegal drug trafficking.
Co-defendant Stephon Donte Williams, 32, of Lynwood, Calif., supplied Sorrells with PCP. Williams, who pleaded guilty to his role in the drug-trafficking and money-laundering conspiracies, was sentenced on May 13, 2016, to 20 years and two months in federal prison without parole.
Sorrells admitted that he purchased large quantities of PCP from Williams and re-sold it in smaller quantities in the Kansas City metropolitan area. Thirteen controlled drug purchases, totaling well in excess of one kilogram of PCP, were made directly with Sorrells. Additionally, at least two shipments of PCP (and other controlled substances) were taken by law enforcement before they were delivered to Sorrells and containers of another shipment were recovered from Sorrells. These shipments, in total, exceed one kilogram of PCP.
Sorrells and Williams are among 20 defendants charged in the indictment, all of whom have either been convicted at trial or pleaded guilty.
According to the indictment, at least 10 law enforcement-controlled purchases of PCP, cocaine and crack cocaine were conducted with at least five of the defendants. At least 10 arrests or searches of co-conspirators occurred where PCP, cocaine or crack was recovered, the indictment says, and on multiple occasions during the conspiracy, defendants were found in possession of hundreds or thousands of dollars in cash, with no known legitimate income.
All of the co-defendants are severally and jointly liable to forfeit to the government $814,000, which was received in exchange for the unlawful distribution of PCP, cocaine or crack cocaine. According to the indictment, that is based upon a conservative street price of $200 per ounce of PCP (3,099 ounces distributed), $1,000 per ounce of cocaine (129 ounces distributed) and $1,100 per ounce of crack cocaine (60 ounces distributed).
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Kansas City, Mo., Police Department, the Drug Enforcement Administration, the FBI and IRS-Criminal Investigation.
Amsterdam Man Pleads Guilty to Trafficking CocaineRead the Press Release
ALBANY, NEW YORK – Matthew Clark, age 32, of Amsterdam, New York pled guilty on May 17, 2016 to conspiracy to possess with the intent to distribute more than 500 grams of cocaine, announced United States Attorney Richard S. Hartunian.
Senior U.S. District Judge Gary L. Sharpe is scheduled to sentence Clark on September 12, 2016. Clark faces at least five years in prison and up to 40 years in prison, a fine of up to $5 million, and at least five years and up to a life term of post-imprisonment supervised release. 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.
During the plea hearing, Clark admitted that he recruited at least one other person to accept packages of cocaine mailed from Puerto Rico to the Capital Region which he collected for redistribution. On October 2, 2014, federal law enforcement officers watched a letter carrier deliver a package to a house in Amsterdam. After the package was delivered, Clark walked up to the porch, picked up the package, and placed it under his sweatshirt. When an Amsterdam police officer arrived, Clark threw the package into the brush on the side of the street. The package contained 571 grams of cocaine inside a DVD player.
This case was investigated by the U.S. Postal Inspection Service, Homeland Security Investigations, the Drug Enforcement Administration, and the Amsterdam Police Department, and is being prosecuted by Assistant U.S. Attorney Elizabeth R. Rabe.
Alleged Athens Shooter Sentenced to Federal Prison on Multiple Gun ConvictionsRead the Press Release
G. F. Peterman, III, Acting United States Attorney for the Middle District of Georgia, announced that Rico Antonio Barnett, age 33, from Athens, Georgia, was sentenced today by the Honorable C. Ashley Royal, United States District Judge. Mr. Barnett was sentenced to serve 156 months’ imprisonment for possession of a firearm in furtherance of a drug trafficking crime on May 1, 2015, and possession of a firearm by a convicted felon on May 8, 2015. The second gun conviction involved Mr. Barnett allegedly shooting another man in an aggravated assault case that remains pending in Athens-Clarke County Superior Court.
“Mr. Barnett has proven himself a violent and dangerous man, and the streets of Athens will be a safer place without him,” said Acting U.S. Attorney George F. Peterman, III. “In just one week last May, he was arrested twice in possession of multiple guns, illegal drugs, and after having allegedly shot a man. His conduct is even more disturbing when one considers that he has more than 45 prior state convictions, including for battery, family violence battery, and being a felon in possession of a firearm.”
On May 1, 2015, Mr. Barnett was arrested by officers with the Athens-Clarke County Police Department (ACCPD) who responded to a call that a man and woman were arguing in the parking lot of a gas station on Highway 29 in Athens. In the course of their investigation, ACCPD officers found a loaded .45 caliber handgun and a quantity of marijuana hidden in the bushes near the gas station which Mr. Barnett ultimately admitted to having possessed. A week later, on May 8, 2015, ACCPD police officers responded to a report of a shooting in a residential neighborhood. Upon arrival, the police located a victim who had been shot in the leg and who identified the shooter as Mr. Barnett, who had recently received bond from his arrest the week before. Shortly thereafter, the police located a car matching the description of the car that had fled the shooting, and after a high-speed car chase through another residential neighborhood, the police apprehended Mr. Barnett, who had fled on foot from the car while throwing two firearms away.
The case was investigated by the Athens Clarke County Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Peter Leary is handling the prosecution for the Government.
Inquiries regarding the case should be directed to Pamela Lightsey at the United States Attorney’s Office at 478-621-2603.
Acting U.S. Attorney Tom Beall to Speak to Wyandotte County Bar Assn.Read the Press Release
KANSAS CITY, KAN. -- Acting U.S. Attorney for the District of Kansas Tom Beall will speak Wednesday to the Wyandotte County Bar Association.
Beall will speak at 6:15 p.m. May 18 during the association’s meeting at the Hollywood Casino at the Kansas Speedway in Kansas City, Kan. He will be talking about his work overseeing 50 assistant U.S. Attorneys and their support staff members in offices in Kansas City, Kan., Topeka and Wichita.
Beall took the position in April after Barry Grissom stepped down as U.S. Attorney.
More information about the U.S. Attorney’s Office for the District of Kansas is available online at https://www.justice.gov/usao-ks .
16 May 2016
Western District’s U.S. Attorney’s Office remembers fallen law enforcement officers during National Police Week 2016Read the Press Release
SHREVEPORT/LAFAYETTE/ALEXANDRIA/LAKE CHARLES/MONROE, La.: Members of the public join with law enforcement across the country for National Police Week – May 15th through May 21st – to honor law enforcement officers who made the ultimate sacrifice, as well as the family members, friends and fellow officers they left behind.
“National Police Week is a special opportunity to recognize the great and heroic work of law enforcement officers,” said U.S. Attorney Stephanie A. Finley. “We pay a special tribute to those who have lost their lives in the line of duty for the safety and protection of others. There is no greater service to one’s community than to be prepared to die for the safety of others.”
This year, the names of 128 officers killed in the line of duty are being added to the National Law Enforcement Officers Memorial in Washington, D.C., during the 28th Annual 2016 Candlelight Vigil on the evening of May 13th. These names include officers who were killed during 2015 and officers who died in previous years who have not been previously added to the Memorial. The fallen officers of 2015 include four members of the law enforcement community in the Western District of Louisiana:
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Juandre Devon Gilliam Sr., Jeanerette Police Department, who died April 8, 2015;
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Thomas Joseph LaValley, Shreveport Police Department, who died August 5, 2015;
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Steven J. Vincent, Louisiana State Police, who died August 24, 2015; and
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Henry Andres Nelson, Sunset Police Department, who died August 26, 2015.
To assist local public safety officers in the work that they do, the U.S. Attorney’s Office offers a number safety and survival training throughout the year. The Western District’s Law Enforcement Community Coordinator is Mike Campbell, a former Shreveport Police Chief, who oversees the course curricula and sessions. The courses are open to federal, state, local, military and tribal law enforcement officers.
“We are committed to provide training to assist our law enforcement officers to do their jobs better and safer,” Finley stated. “Our goal is for all public safety officers to return home to their families at the end of their shifts each and every day.”
National Police Week is a collaborative effort of many organizations dedicated to honoring America’s law enforcement community.
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West Mifflin Man Sentenced to 5½ Years in Prison for Conspiring to Distribute CocaineRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 66 months’ imprisonment on his conviction of conspiracy to distribute 500 grams or more of cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Aaron Atkins, 34, of West Mifflin, PA.
In connection with the guilty plea, the court was advised that in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Aaron Atkins was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Prior to imposing sentence, Judge Hornak stated that the sentence was sufficient but not greater than necessary to fulfill the goals of sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Atkins.
Washington County Man Indicted for Receiving and Possessing Child PornographyRead the Press Release
ALBANY, NEW YORK – Tristan Shaw, age 31, of Granville, New York, was indicted on May 11 for receiving and possessing child pornography.
The announcement was made by United States Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations.
If convicted of all charges, Shaw faces at least 5 years and up to 20 years in prison, and a term of post-imprisonment supervised release of between 5 years and life. 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.
Shaw was arraigned today in Albany before United States Magistrate Judge Daniel J. Stewart, and released under pretrial supervision conditions pending a trial scheduled for July 18, 2016 before Senior United States District Judge Gary L. Sharpe.
The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
This case is being investigated by Homeland Security Investigations and is being prosecuted by Assistant U.S. Attorney Rick Belliss.
Warwick Man Detained in National Child Pornography InvestigationRead the Press Release
PROVIDENCE, R.I. – Jordan Monroe, 50, of Warwick, R.I., was ordered detained in federal custody on Friday following an initial appearance in U.S. District Court in Providence on child pornography charges.
Monroe was charged by way of a federal criminal complaint with receiving and distributing child pornography, and possessing and accessing with intent to view child pornography after Homeland Security Investigations (HSI) agents allegedly discovered tens of thousands of computer file folders containing images and videos of alleged child pornography on numerous computers seized from Monroe’s Rhode Island residence.
Monroe’s arrest and detention is announced by United States Attorney Peter F, Neronha and Matthew J. Etre, Special Agent in Charge of HSI for New England.
During the execution of a court authorized search warrant at Monroe’s residence on Friday, HSI agents, assisted by members of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force and the Warwick Police Department, seized six computers, three which act as servers. A brief forensic review of the contents of four of the computers by HSI and ICAC agents with expertise in forensic computer examinations revealed a massive collection of computer files which allegedly contain images and videos of child pornography. A forensically trained HSI agent advised investigators that he saw tens of thousands of files with names consistent with child pornography that he has seen in other investigations in his experience.
According to court documents and information presented to the court, a nationwide investigation launched in September 2015 by HSI’s Cyber Crimes Center Child Exploitations Unit and the Department of Justice, Child Exploitation and Obscenity Section, High Technology Investigative Unit has identified Internet billboards allegedly used for posting, sharing and viewing child pornography. It is alleged that numerous IP addresses in the United States and outside the country have been identified as allegedly viewing and sharing child pornography on the billboards. It is alleged that one such IP address was identified as belonging to a person at Monroe’s residence.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
The FBI is assisting HSI in the investigation of Jordan Monroe.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
United States and State of Vermont Resolve Matter with Accountant Raymond Kushi and Accounting Firm Kushi and Myers, PCRead the Press Release
The Office of the United States Attorney for the District of Vermont and the office of the Vermont Attorney General announced the resolution of their investigations of accountant Raymond Kushi and accounting firm Kushi and Myers, PC for submitting or causing to be submitted false claims for payment to Medicaid as part of the rate setting process for the Bennington School, Inc. Under the terms of the agreement, Mr. Kushi and Kushi and Myers, PC paid $105,000 to resolve the matter. Of the $105,000 settlement, the State of Vermont will receive approximately $51,618 and the United States will receive approximately $53,382.
Until 2013, BSI, a for-profit, closely-held corporation, operated a residential program in Bennington, Vermont that offered therapeutic and educational services for socially and emotionally challenged boys and girls. The State of Vermont placed many students at BSI, and was responsible for their tuition and other expenses. The funding for these placements came from the Vermont Medicaid program (approximately 60% federal funding and 40% state funding) and from several Vermont state agencies, including the Agency of Education, the Department of Mental Health, and the Department for Children and Families. This funding was based on a per diem rate for each student, determined on an annual basis by the Division of Rate Setting (DRS), within the Vermont Agency of Human Services. The formula for the rate calculated by DRS for Medicaid and Education payments to BSI was based upon the school’s reported allowable expenses. From at least 2002 through 2011, Raymond Kushi and Kushi and Myers, PC submitted the rate setting materials, including the school’s reported allowable expenses, to DRS for purposes of BSI obtaining Medicaid funding. The Government’s investigation showed that not all of BSI’s claimed allowable expenses contained in the materials submitted by Raymond Kushi and Kushi and Myers, PC were in fact legitimate and allowable for the rate calculation. In 2013, in connection with the global resolution of the criminal and civil investigation of BSI, four former officers of BSI paid a total of $4.3 million to resolve potential civil health care fraud liability.
The current settlement resolves allegations that Raymond Kushi and Kushi and Myers, PC shared responsibility for the false information provided, resulting in an inflated Medicaid reimbursement rate and Medicaid overpayment to BSI from at least 2002 through 2011.
Pursuant to the terms of the settlement agreement, the agreement and payment are neither an admission of liability by Raymond Kushi or Kushi and Myers, PC, nor a concession by the United States or the State of Vermont that their claims were not well founded. The United States and the State of Vermont acknowledge that the scheme at issue here did not impact the quality of services offered to students at BSI.
This matter, in connection with the larger BSI case, was investigated by the United States Attorney’s Office, the Medicaid Fraud and Abuse Unit of the Vermont Attorney General’s Office, the Office of Inspector General of the U.S. Department of Health and Human Services, the Internal Revenue Service, and the Federal Bureau of Investigation.
Raymond Kushi and Kushi and Myers, PC were represented by Warren Hutchison, Esq., of LeclairRyan of Boston, Massachusetts. The United States was represented by Assistant U.S. Attorney Nikolas P. Kerest. The State of Vermont was represented by Assistant Attorney General Steven Monde.
United States Reaches Settlement with Defense Contractor over Yacht ExpensesRead the Press Release
PHILADELPHIA - Materials Sciences Corporation, a government contractor headquartered in Horsham, Pennsylvania, has agreed to pay the United States $219,909 to resolve allegations that the company unreasonably billed federal agencies to cover depreciation and other expenses associated with a 58-foot-long Hatteras Yacht Fisherman. The settlement was announced by United States Attorney Zane David Memeger.
Specifically, the United States contended that between 2006 and 2015, Materials Sciences Corporation described the yacht as the company’s Mississippi office and incorporated yacht-related expenses into the company’s indirect cost rate submissions to receive payment under government contracts, primarily with the United States Navy. The United States contended that the yacht-related costs were unreasonable and therefore unallowable.
Materials Sciences Corporation also agreed not to use the yacht for any purpose and to dispose of the vessel within a specified period of time. The agreement therefore ensures that the company’s billing practice will not repeat itself in the future.
As part of this settlement, Materials Sciences Corporation did not admit liability or wrongdoing.
This investigation was led by the United States Naval Criminal Investigative Service and the United States Department of Defense Criminal Investigative Service. The case was handled by Assistant United States Attorneys Michael S. Macko and Virginia Powel.
Ukrainian Hacker Admits Role in Largest Known Computer Hacking and Securities Fraud SchemeRead the Press Release
First Hacker Convicted in Conspiracy to Steal 150,000 Press Releases from Three Major Newswire Companies for Use in Illicit Trades
NEWARK, N.J. – A Ukrainian hacker today admitted his role in an international scheme to hack into three business newswires, steal yet-to-be published press releases containing non-public financial information, and use the information to make trades that allegedly generated approximately $30 million in illegal profits, U.S. Attorney Paul J. Fishman announced.
Vadym Iermolovych, 28, of Kiev, Ukraine, pleaded guilty before U.S. District Judge Madeline Cox Arleo to a three-count information charging him with conspiracy to commit wire fraud, conspiracy to commit computer hacking, and aggravated identity theft.
Iermolovych was arrested on Nov. 12, 2014 in connection with other charges related to computer hacking and credit card fraud. Today’s guilty plea marks the first conviction of one of the hackers responsible for breaching the networks of Marketwired L.P. (Marketwired), PR Newswire Association LLC (PRN), and Business Wire (collectively, the “Victim Newswires”), and stealing press releases containing confidential nonpublic financial information relating to hundreds of companies traded on the NASDAQ and NYSE.
According to documents filed in this case and statements made in court:
At today’s plea hearing, Iermolovych admitted that he was personally involved in the hacks into the Victim Newswires. He admitted to hacking into PRN’s network between January 2013 and March 2013. He also admitted that he obtained a set of user credentials of PRN employees stolen from a computer hack into a social networking website and then used at least one of those credentials to ultimately gain access into PRN’s computer network. Iermolovych also admitted that he sold press releases stolen from the network intrusion into Marketwired, and purchased access into Business Wire’s network, all in furtherance of a larger conspiracy to profit from the stolen draft press releases.
Five other members of the conspiracy – two computer hackers and three securities traders – were charged by federal indictment brought by the District of New Jersey (DNJ). The related 23-count DNJ indictment charged Ivan Turchynov, 28, Oleksandr Ieremenko, 24, and Pavel Dubovoy, 33, all of Ukraine, Arkadiy Dubovoy, 51, and Igor Dubovoy, 29, of Alpharetta, Georgia. Arkadiy Dubovoy and Igor Dubovoy both pleaded guilty to the wire fraud conspiracy charged in Count One of the DNJ indictment on Feb. 18, 2016 and Jan. 20, 2016, respectively.
The Eastern District of New York (EDNY), in a related indictment, charged four securities traders: Vitaly Korchevsky, 50, of Glen Mills, Pennsylvania, Vladislav Khalupsky, 45, of Brooklyn, New York and Odessa, Ukraine, Leonid Momotok, 48, of Suwanee, Georgia, and Alexander Garkusha, 48, of Cummings and Alpharetta, Georgia. Garkusha pleaded guilty to the wire fraud conspiracy charged in Count One of the EDNY indictment on Dec. 21, 2015.
As alleged in the indictments, between February 2010 and August 2015, computer hackers based in Ukraine, gained unauthorized access into the computer networks of Marketwired L.P. (Marketwired), PR Newswire Association LLC (PRN), and Business Wire. They used a series of targeted cyber-attacks, including “phishing” attacks and SQL injection attacks, to gain access to the computer networks. The hackers moved through the computer networks and stole press releases about upcoming announcements by public companies concerning earnings, gross margins, revenues, and other confidential and material information.
The hackers shared the stolen releases with the traders using overseas computer servers that they controlled. In a series of emails, the hackers even shared “instructions” on how to access and use the overseas server where they shared the stolen releases with the traders, and the access credentials and instructions were distributed amongst the traders. In an email, which was sent by one of the traders, the instructions for accessing the overseas server suggested that users conceal their Internet Protocol address when accessing the server as a precaution to avoid detection. The traders created “shopping lists” or “wish lists” for the hackers listing desired upcoming press releases for publicly traded companies from Marketwired and PRN. Trading data obtained over the course of the investigation showed that, after the shopping list was sent, the traders and others traded ahead of several of the press releases listed on it.
The traders generally traded ahead of the public distribution of the stolen releases, and their trading activities shadowed the hackers’ capabilities to exfiltrate stolen press releases. In order to execute their trades before the releases were made public, the traders sometimes had to execute trades in extremely short windows of time between when the hackers illegally accessed and shared the releases and when the press releases were disseminated to the public by the newswires, usually shortly after the close of the markets. Frequently, all of this activity occurred on the same day. Thus, the trading data often showed a flurry of trading activity around a stolen press release just prior to its public release.
The traders traded on stolen press releases containing material nonpublic information about the following publicly traded companies that included, among hundreds of others: Align Technology Inc., Caterpillar Inc., Hewlett Packard, Home Depot, Panera Bread Co., and Verisign Inc.
The traders paid the hackers for access to the overseas servers based, in part, on a percentage of the money the traders made from their illegal trading activities. The hackers and traders used foreign shell companies to share in the illegal trading profits.
The conspiracy to commit wire fraud charge is punishable by a potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The conspiracy to commit fraud and related activity in connection with computers carries a potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The aggravated identity theft charge carries a mandatory penalty of two years in prison consecutive to any sentence received in connection with the other two counts. Iermolovych’s sentencing is scheduled for Aug. 22, 2016.
U.S. Attorney Fishman credited the special agents of the U.S. Secret Service, Criminal Investigations Division, under the direction of Director Joseph P. Clancy, and special agents from the Newark Field Office, under the direction of Acting Special Agent in Charge Jeffrey Wood, with the ongoing investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorneys Andrew S. Pak and Daniel Shapiro of the Economic Crimes Unit, Computer Hacking & Intellectual Property Section, David M. Eskew, Deputy Chief of the General Crimes Unit, Assistant U.S. Attorney Svetlana M. Eisenberg of the General Crimes Unit, and Assistant U.S. Attorney Sarah Devlin of the Asset Forfeiture and Money Laundering Unit.
Defense counsel: K. Anthony Thomas, Esq.
Two sentenced in cigarette smuggling operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two individuals were sentenced in federal court in Martinsburg today for their roles in an unlawful cigarette smuggling scheme, United States Attorney William J. Ihlenfeld, II, announced.
Fahd Hamood Aljahaf, 38, of Bronx, New York, and Muneer Kaid Khaled, 26, of Brooklyn, New York, collaborated to facilitate a trafficking network designed profit from the unlawful sale of contraband cigarettes. The defendants transported large quantities of cigarettes across state lines for redistribution and sale. The cigarettes were acquired in Virginia, where the tax rate for cigarettes is one of the lowest in the nation, and sold in New York, which has one of the nation’s highest tax rates. The cigarettes were possessed and transported in West Virginia.
Each of the defendants pled guilty in February 2016 to one count of “Conspiracy to Traffic in Contraband Cigarettes.” Aljahaf was sentenced today to 18 months in prison. Khaled was sentenced today to probation for a term of 36 months.
Assistant U.S. Attorneys Michael Stein and Shawn Adkins prosecuted the case on behalf of the government. Homeland Security Investigations, the Frederick County, Virginia Sheriff’s Office, the Virginia Office of Attorney General, the Alcohol and Tobacco Tax and Trade Bureau, the West Virginia State Police, the New York Department of Taxation and Finance, the Federal Bureau of Investigation, and the Internal Revenue Service - Criminal Investigation led the inquiry.
Chief U.S. District Judge Gina M. Groh presided.
*NOTE* This press release was corrected at 6:16PM on 5/16/2016 to reflect the accurate sentences imposed.
Two Men Extradited from Mexico and Charged with Participation in Murder of ICE Special Agent Jaime Zapata and Attempted Murder of ICE Special Agent Victor AvilaRead the Press Release
Five Others Have Been Extradited in This Matter
Two Mexican nationals have been extradited from Mexico to face charges for their alleged participation in the murder of U.S. Immigration and Customs Enforcement (ICE) Special Agent Jaime Zapata and the attempted murder of ICE Special Agent Victor Avila on Feb. 15, 2011, in Mexico.
The charges and extraditions were announced today by Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Channing D. Phillips of the District of Columbia, Assistant Director Stephen E. Richardson of the FBI Criminal Investigative Division and Director Sarah R. Saldaña of ICE.
Jesus Ivan Quezada Piña, aka Loco, 28, and Alfredo Gaston Mendoza Hernandez, aka Camaron, aka Burger, 33, both of San Luis Potosi, Mexico, were charged on May 16, 2013, in a four-count indictment with murder of an officer or employee of the United States; attempted murder of an officer or employee of the United States; attempted murder of an internationally protected person; and using, carrying, brandishing and discharging a firearm during and in relation to a crime of violence causing death. The indictment was unsealed today when Quezada Piña and Mendoza Hernandez made their initial appearances before Senior U.S. District Judge Royce C. Lamberth of the District of Columbia. Quezada Piña and Mendoza Hernandez were ordered detained without bail.
Four defendants—Julian Zapata Espinoza, aka Piolin, 35; Ruben Dario Venegas Rivera, aka Catracho, 28; Jose Ismael Nava Villagran, aka Cacho, 33; and Francisco Carbajal Flores, aka Dalmata, 41—previously pleaded guilty to offenses based on their roles in the murder and attempted murder of the ICE agents. As part of their guilty pleas, Espinoza, Rivera and Villagran admitted that they participated directly in the Feb. 15, 2011, ambush of the two special agents as part of a Los Zetas hit squad. The fourth defendant, Flores, acknowledged assisting Zetas members after the attack. A fifth defendant, Jose Emanuel Garcia Sota, aka Juan Manuel Maldonado Amezcua, aka Safado, 35, was extradited to the United States on Oct. 1, 2015, for his participation in this attack and is currently awaiting trial.
The charges and allegations in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The FBI is investigating the case with substantial assistance from ICE, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, U.S. Customs and Border Patrol, the U.S. Department of State’s Diplomatic Security Service and the U.S. Marshals Service. The investigation was also coordinated with the assistance of the Government of Mexico.
The Criminal Division’s Organized Crime and Gang Section and Narcotic and Dangerous Drug Section and the U.S. Attorney’s Office of the District of Columbia are prosecuting the case. The Criminal Division’s Office of International Affairs provided substantial assistance.
Two Men Extradited from Mexico and Charged with Participation in Murder of ICE Special Agent Jaime Zapata and Attempted Murder of ICE Special Agent Victor AvilaRead the Press Release
WASHINGTON – Two Mexican nationals have been extradited from Mexico to face charges for their alleged participation in the murder of U.S. Immigration and Customs Enforcement (ICE) Special Agent Jaime Zapata and the attempted murder of ICE Special Agent Victor Avila on Feb. 15, 2011, in Mexico.
The charges and extraditions were announced today by U.S. Attorney Channing D. Phillips, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Director Stephen E. Richardson of the FBI Criminal Investigative Division, and Director Sarah R. Saldaña of ICE.
Jesus Ivan Quezada Piña, aka Loco, 28, and Alfredo Gaston Mendoza Hernandez, aka Camaron, aka Burger, 33, both of San Luis Potosi, Mexico, were charged on May 16, 2013, in a four-count indictment with one count of murder of an officer or employee of the United States; one count of attempted murder of an officer or employee of the United States; one count of attempted murder of an internationally protected person; and one count of using, carrying, brandishing and discharging a firearm during and in relation to a crime of violence causing death. The indictment was unsealed today when Quezada Piña and Mendoza Hernandez made their initial appearance before Senior U.S. District Judge Royce C. Lamberth of the District of Columbia. Quezada Piña and Mendoza Hernandez were ordered detained without bail pending further court proceedings.
“These extraditions reflect the continued determination of law enforcement to prosecute all who took part in the ambush of two federal agents,” said U.S. Attorney Phillips. “Together with our law enforcement partners in the United States and in Mexico, we are committed to holding those responsible for the murder of Agent Zapata and the wounding of Agent Avila accountable for this brazen attack.”
“With the extradition of these two individuals from Mexico, a total of seven people have been charged for their role in the murder of ICE Special Agent Zapata and attempted murder of Special Agent Victor Avila," said Assistant Director Richardson. "An attack against any federal agent serving his or her country remains a priority for the FBI until all responsible individuals are brought to justice."
“Today is another step toward justice,” said ICE Director Saldaña. “The brutal attack on Special Agents Zapata and Avila and the murder of Agent Zapata will not go unanswered. The ICE family is deeply grateful to the Government of Mexico, the Department of Justice, and all of our other partners engaged in the relentless pursuit of the perpetrators of this heartless attack.”
Four defendants previously pleaded guilty to offenses based on their roles in the murder and attempted murder of the ICE agents. Julian Zapata Espinoza, aka Piolin, 35, pleaded guilty on May 23, 2013, to the murder of Special Agent Zapata and the attempted murder of Special Agent Avila. Ruben Dario Venegas Rivera, aka Catracho, 28, pleaded guilty on Aug. 1, 2011, to federal charges concerning the murder of Special Agent Zapata and attempted murder of Special Agent Avila. Jose Ismael Nava Villagran, aka Cacho, 33, pleaded guilty on Jan. 4, 2012, also to federal charges concerning the murder and attempted murder of the ICE agents. Francisco Carbajal Flores, aka Dalmata, 41, pleaded guilty on Jan. 10, 2012, to conspiracy to conduct the affairs of an enterprise through a pattern of racketeering activity and to being an accessory after the fact to the murder and attempted murder of the ICE agents.
As part of their guilty pleas, Espinoza, Rivera and Villagran admitted to being members of a Los Zetas hit squad and to participating directly in the Feb. 15, 2011, ambush of the two special agents. The fourth defendant, Flores, acknowledged assisting Zetas members after the attack. A fifth defendant, Jose Emanuel Garcia Sota, aka Juan Manuel Maldonado Amezcua, aka Safado, 35, was extradited to the United States on Oct. 1, 2015, for his participation in this attack and is currently awaiting trial.
An indictment is a formal charging document and defendants are presumed innocent until proven guilty.
The case is being investigated by the FBI, with substantial assistance from ICE, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the U.S. Customs and Border Protection, the U.S. Department of State’s Diplomatic Security Service and the U.S. Marshals Service. The investigation was also coordinated with the assistance of the Government of Mexico. The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and Narcotic and Dangerous Drug Section and the U.S. Attorney’s Office for the District of Columbia. The Criminal Division’s Office of International Affairs has provided substantial assistance.
Two Men Arrested, Charged in Cocaine ConspiracyRead 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 Clarence Adams, 34, of Buffalo, NY, and Michael Knight, 27, of California, were arrested and charged by criminal complaint with conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine. The charges carry a mandatory minimum 10 years in prison, a maximum of life and a $10,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that according to the complaint, on May 13, 2016, law enforcement officers seized three packages containing suspected cocaine that were shipped from Texas to Buffalo. The cocaine was hidden inside air purifiers. Officers seized two of the packages before they were delivered and set up controlled deliveries to addresses on Tyler and Custer Streets in Buffalo.
Before the controlled deliveries occurred, officers observed the defendants in a car parked near Main and Custer Streets. Adams was observed using multiple cellular telephones. Adams was also observed entering 36 Custer Street, leaving shortly after, and departing in the Black Mazda 6 he had been driving.
Around that time, the first package was delivered to a residence at 49 Tyler Street where the resident of that address accepted and signed for the package. The defendants arrived at 49 Tyler Street shortly after in the black Mazda 6. The recipient of the package exited her residence with the package, walked over to the black Mazda 6 and placed the package in the trunk. At that time, law enforcement officers arrested Adams and Knight.
The second package was delivered to the residence at 36 Custer Street. Ultimately, search warrants were executed and the package that had been delivered was found in the upstairs apartment. A third package was found in the downstairs apartment. Like the other packages, it also contained cocaine hidden in an air purifier.
According to the complaint, the three packages contained a total of five kilograms of cocaine and the recipients indicated they had been paid in crack cocaine to receive the packages.
During a subsequent search of a Mount Vernon Street residence where the defendants were staying, officers recovered a drug ledger that calculated the amount necessary to purchase 5 kilograms of cocaine from Adams’s bedroom. Also recovered were a digital scale and other drug preparation materials.
The defendants made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy and are being held pending a detention hearing on May 19, 2016.
The complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the Niagara Frontier Transportation Authority Police, under the direction of Chief George Gast, and the Cheektowaga Police Department, under the direction of Chief David Zack.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.