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11 May 2016
Schuele Boys Gang Member Sentenced on Drug ChargeRead 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 Fred Johnson, aka Macaroni, 23, of Buffalo, NY, who was convicted of conspiracy to distribute cocaine, was sentenced to time served (22 months) by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that as a member of the Schuele Boys Gang, the defendant purchased cocaine from co-defendant Michael Robertson. Johnson then repackaged the cocaine into smaller amounts for re-sale in the Buffalo area.
On July 23, 2014, law enforcement officers executed a search warrant at the defendant’s Fisher Street residence and recovered a .22 caliber pistol.
The Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine and marijuana.
Johnson was arrested along with 15 other Schuele Boys Gang members and associates in July 2014. Thirteen defendants have been convicted. On March 24, 2015, an additional seven members and associates were indicted. Four other Schuele Boys members were indicted separately.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The sentencing is the culmination of an investigation on the part of the FBI's Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen and the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division.
Repeat Felon Sentenced to Federal Prison for Illegally Possessing Gun and MethamphetamineRead the Press Release
EUGENE, Ore. – Justin Longworth, 36, of Lane County, Oregon, was sentenced yesterday by U.S. District Judge Ann Aiken to 94 months in prison for the crimes of felon in possession of a firearm and possession with intent to distribute methamphetamine. Following his release from prison, Longworth will be on supervised release for three years.
On July 8, 2015, Eugene Police Department officers arrested Justin Longworth on a warrant. Officers found an unloaded 9mm pistol, approximately a half-ounce of methamphetamine, a scale, and drug packaging materials in Longworth’s backpack.
Longworth’s prior convictions include felon in possession of a firearm, unlawful use of a weapon, manufacture of a controlled substance, attempt to elude and unauthorized use of a motor vehicle.
The investigation of this case was conducted by the Federal Bureau of Investigation and the Eugene Police Department. The case was prosecuted by Assistant U.S. Attorney Jeffrey Sweet.
Reno Doctor Robert Rand and Eight Others Indicted on Federal Prescription Drug Distribution ChargesRead the Press Release
RENO, Nev. – The federal grand jury in Reno today indicted Robert Rand M.D. and eight others on felony drug conspiracy and other charges, announced U.S. Attorney Daniel G. Bogden for the District of Nevada. The indictment replaces the prior criminal complaint, and is required in order for the government to prosecute the defendants on the felony charges.
“We are using all legal tools at our disposal to discover, disrupt and dismantle illegal traffic in pharmaceutical controlled substances,” said U.S. Attorney Bogden. “We are making significant progress in Nevada, and have disrupted a number of so-called pill mills. Our efforts in this area continue, and I am optimistic that we can reverse the alarming upward trend of illegal trafficking of prescription drugs.”
Robert Gene Rand, 53, Richard Winston West II, aka Richie West, 40, Omar Ahsan Ahmad, 31, Joshua Ross Green, 34, Clint Mitchell Bloodworth, 40, Kathleen Griffin, 43, Alan Russel Martinez, 59, and Braden Kyle Riley, 40, all of Reno, and Ryan Daniel Smith, 40, of Carson City, are each charged with conspiracy to distribute and possess with intent to distribute controlled substances, such as oxycodone. Rand is also charged with one count of distribution of oxycodone resulting in death and one count of distribution of fentanyl. West is also charged with three counts of distribution of oxycodone, two counts of possession with intent to distribute oxycodone, two count of possession with intent to distribute fentanyl, two counts of possession with intent to distribute psilocyn, and two counts of possession of a firearm during and in relation to a drug trafficking crime.
If convicted, each defendant faces up to 20 years in prison on the conspiracy charge. Rand also faces a minimum mandatory 20 years in prison on the distribution count resulting in death. West also faces up to 20 years in prison on each of the other drug counts, a consecutive mandatory minimum five years in prison as to the first firearm count, and a consecutive mandatory minimum 25 years in prison as to the second firearm count.
At the time of the criminal conduct, defendant Rand was a Nevada-licensed physician who operates Rand Family Care in Reno and defendant West was the manager of the Jones-West Ford dealership. All of the other defendants were also employees at one time of the vehicle dealership. Rand allegedly prescribed narcotics, such as oxycodone, without a legitimate medical purpose and outside the usual course of his professional practice. Beginning on about Nov. 13, 2012, and continuing to about April 28, 2016, Rand allegedly issued prescriptions for substantial amounts of oxycodone to his co-defendants, who filled the prescriptions at local pharmacies and illicitly distributed them. On September 30, 2015, Rand allegedly issued an unlawful prescription for oxycodone, resulting in the death of an individual.
The indictment alleges that on April 28, the day that West was arrested, he possessed in his truck two pistols and a rifle during and in relation to drug trafficking crimes, and in his residence two pistols and a rifle during and in relation to drug trafficking crimes.
According to the Centers for Disease Control and Prevention (CDC), almost two million Americans abused or were dependent on prescription opioids in 2014. Overdose deaths from opioids, including prescription opioids and heroin, have nearly quadrupled since 1999. Overdoses involving opioids killed more than 28,000 people in 2014, more than any year on record, and over one-half of those deaths were from prescription opioids. For information on opioid overdose and how you can manage pain without prescription drugs, go to http://www.cdc.gov/drugoverdose/opioids/index.html.
This case is being investigated by the Northern Nevada Unified Drug and Gang Enforcement Task Force, which includes the DEA, FBI, IRS Criminal Investigation, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Enforcement, Reno Police Department, Washoe County Sheriff’s Office, Carson City Sheriff’s Office, Susanville, California Police Department, Nevada Department of Corrections, Nevada Gaming Control, Nevada Department of Public Safety, Lyon County Sheriff’s Office, and the State of Nevada Division of Welfare, Office of Investigations and Recovery.
The case is being prosecuted by Assistant U.S. Attorney James E. Keller.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Previously Convicted Felon Charged with Firearm and Drug OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that an Edwardsville man was indicted yesterday by a federal grand jury in Scranton on firearm and drug possession offenses.
According to United States Attorney Peter Smith, the indictment charges Willie Garcia, age 47, with being a felon in possession of a firearm, using that firearm in furtherance of drug trafficking activities and possession with intent to distribute marijuana.
The charges stem from a joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Edwardsville Police Department. The charge arose out of a police response to a 911 call concerning a shooting and resulted in the alleged recovery of marijuana and a loaded firearm from Garcia’s home.
Prosecution is assigned to Assistant United States Attorney Evan Gotlob.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes
Garcia faces a minimum of 5 years and up to a lifetime term of incarceration as well as fines totaling $1,500,000.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is 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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Piedmont Man Pleads Guilty to Concealing a FugitiveRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that David Roger Nelson, age 60, of Piedmont, pled guilty yesterday in federal court in Greenville, to harboring a fugitive and conspiracy to steal mail, violations of Title 18, United States Code, Sections 1071 and 371, respectively. United States District Judge Bruce Howe Hendricks, of Charleston accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that although Nelson knew that Emily Keller (who had earlier pled guilty to mail theft) was a federal fugitive who was wanted by the U.S. Marshals, he hid her in various hotel rooms in South Carolina and Georgia, and rented a vehicle that was used to transport her. In addition, Nelson was involved in the stealing of mail and the making of counterfeit checks to support himself and Keller while they were on the run. When captured in Easley, South Carolina, Nelson was found with stolen mail, check stock, and counterfeit checks and identification documents.
Mr. Nettles stated the maximum penalty Nelson can receive is a fine of $250,000 and/or imprisonment for 5 years, plus a special assessment of $100.
The case was investigated by agents of the United States Postal Inspection Service and the United States Marshals. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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Patient Care Coordinator Who Defrauded A Charity Pleads Guilty to Wire FraudRead the Press Release
CHARLOTTE, N.C. – A South Carolina woman appeared in federal court today and pleaded guilty to one count of wire fraud for defrauding a charitable organization providing prescription cost assistance to low-income individuals, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Nakeria Rougier Hanson, 31, of Rock Hill, S.C. entered her guilty plea before U.S. Magistrate Judge David Keesler.
U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.
According to filed court documents and today’s plea hearing, from at least December 2014 to in or about July 2015, Hanson engaged in a scheme to defraud Company A, a national charitable organization providing prescription cost assistance to low-income individuals with chronic or life-threatening illnesses of at least $78,000, by fabricating pharmacy benefit claims for non-existent services. According to court records, from in or about July 2014 to in or about July 2015, Hanson was employed as a Patient Case Coordinator by Company B, which administered patient support and other services for various health care benefit companies, including Company A. In her capacity as a Patient Case Coordinator, Hanson processed claims for reimbursement, including claims submitted to Company A.
Hanson admitted in filed documents and in court today that she submitted false and fraudulent applications in the names of her friends and families to Company B in order have those individuals fraudulently approved to receive financial assistance for prescription drug costs from Company A. Hanson also admitted that she submitted the false applications for cost assistance through various methods, including internet, telephone and facsimile to Company B. Hanson further admitted that after the false applications were approved and the individuals enrolled, she fabricated high-cost prescriptions reimbursement claims for those individuals and submitted them to Company B for reimbursement with charitable organization Company A’s funds. Hanson intercepted those claims through her employment at the Company B and caused those claims to be paid to the individuals. In total, Hanson submitted fraudulent enrollment applications and subsequent false prescription claims for at least nine friends or relatives, resulting in fraudulent payments of at least $78,759 to those individuals, who then divided the proceeds with Hanson.
“Hanson stole from a charitable organization providing financial help to individuals suffering with chronic and critical life threatening illnesses and unable to afford costly prescriptions. For some of these individuals, getting that monetary assistance is critical. This prosecution should serve as a deterrent and a reminder that my office will prosecute employees or affiliates of charities who steal from organizations funded by generous individuals donating money to support worthy causes,” said U.S. Attorney Rose.
Hanson was released on bond following today’s plea hearing. The wire fraud charge carries a maximum prison term of 20 years and a $250,000 fine. A sentencing date for Hanson has not been set yet.
The FBI investigated the case. Assistant U.S. Attorney Kelli Ferry of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Owners of Worcester Payroll Company Sentenced for Tax Evasion and FraudRead the Press Release
BOSTON – The co-owners and former owner of a payroll company in Worcester were sentenced today in U.S. District Court in Worcester for defrauding the IRS and tax evasion. One of the co-owners was also sentenced for embezzling client and employee funds.
William McCullough, 73, of Westborough, Mass., was sentenced by U.S. District Court Judge Timothy S. Hillman to one year and one day in prison, three years of supervised release and restitution of $1,825,933. In September 2015, he pleaded guilty to two counts of conspiracy to defraud the IRS, four counts of making false statements in tax returns, four counts of tax evasion, and one count of wire fraud. Robert McCullough, 43, also of Westborough, the son of William McCullough, was sentenced by Judge Hillman to eight months in prison and three years of supervised release. He previously pleaded guilty to two counts of conspiracy to defraud the IRS and four counts of tax evasion. Gary Davis, 74, of Jupiter, Fla., was sentenced to six months in prison and three years of supervised release. He pleaded guilty to one count of conspiracy to defraud the IRS, and three counts of tax evasion.
The McCulloughs are co-owners of Harpers Data Services, a payroll company in Worcester. William McCullough was the treasurer and his son, Robert, is the president. Gary Davis was a former owner and president of Harpers until his retirement in 2010.
Beginning around 2006, William and Robert McCullough operated two corporate bank accounts at Webster Five Cents Savings Bank. From 2007 to 2012, they funneled approximately $11 million of taxable income into these accounts. The McCulloughs kept these accounts off of the corporation’s books and concealed their existence from the corporate accountant. Thus, the income deposited into these accounts was not reported to the IRS on the corporation’s annual tax returns. As a result, the corporation failed to pay approximately $3.78 million in taxes.
Also during that time, William McCullough wrote checks totaling approximately $4.7 million from one of the Webster Five corporate accounts to himself, Robert McCullough, and Gary Davis. In addition, from 2007 to 2011, William McCullough wrote bonus and dividend checks from Harpers totaling approximately $2.7 million to himself, Robert McCullough, and Gary Davis. William McCullough ensured that none of this income appeared on the appropriate tax reporting forms, and as a result, the defendants failed to pay approximately $1.7 million in taxes from 2007 through 2011.
In a separate case, William McCullough was sentenced for committing wire fraud. From 2009 through 2011, Harpers maintained client trust accounts and a client tax account. These accounts contained client funds, which were to be used to pay employees’ paychecks and employees’ federal and state taxes. From 2009 through 2011, William McCullough took approximately $1 million from the client trust accounts and deposited it into a Harpers account. In 2010, he took $750,000 from the client tax account and deposited it into a Harpers account. At the time William McCullough took this money, the funds belonged solely to the clients of Harpers Data Services. McCullough’s fraud resulted in a theft of approximately $1.8 million dollars.
United States Attorney Carmen M. Ortiz; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Karin M. Bell, Chief of Ortiz’s Worcester Branch Office.
Operation Gun Dog Nets 18 FirearmsRead the Press Release
St. Thomas, USVI – Naeem Akil Smith, 24, of St. Thomas, was arrested and charged with the unlawful possession of 18 firearms, including two assault rifles, at the Cyril E. King Airport in St. Thomas, announced United States Attorney Ronald W. Sharpe. Smith’s arrest resulted from a joint law enforcement operation named “Operation Gun Dog” conducted by a U.S. Customs and Border Protection (CBP) led task force during the St. Thomas Carnival season. Smith made his initial appearance in court on May 5, 2016 before District Court Magistrate Judge Ruth Miller. A detention hearing was held on May 6, 2016 for Smith where he was ordered to post a $10,000 unsecured bond. Smith is also required to wear an electronic monitor.
According to the complaint, on April 27, 2016, at the Cyril E. King Airport, a law enforcement K-9 alerted to the presence of firearms inside of luggage checked in Smith’s name. CBP officers examined Smith’s luggage, which revealed one Taurus pistol, 15 Glock pistols, and two AK-47 assault rifles. His luggage also contained two AK-47 magazines, 36 other pistol magazines with capacities ranging from 9 to 15 rounds, 10 speed loaders, twenty .40 caliber Smith and Wesson rounds, and a storage box.
Under federal law if convicted of unlawful possession of firearms, Smith would face a maximum of 10 years in prison and a $250,000 fine.
Operation Gun Dog was formed by law enforcement officials from CBP, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), U.S. Drug Enforcement Administration, U.S. Postal Inspection Service, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), United States Marshals Service, Transportation Security Administration, Virgin Islands Port Authority and Virgin Islands Police Department to interdict contraband travelling through the Cyril E. King Airport and deter criminal activity during the St. Thomas Carnival.
This case is being investigated by HSI and ATF. It is being prosecuted by Assistant United States Attorney Delia Smith.
United States Attorney Sharpe reminds the public that a complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Olney Man Sentenced on Social Security Fraud ChargeRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that David Mitchell Carter, 50, of Olney, Illinois, was sentenced on May 10, 2016, on the charge of Theft of Government Funds in the United States District Court in Benton, Illinois. The theft charge relates to fraud upon the Social Security benefit program. The district court sentenced Carter to six months in prison, to be followed by three years of supervised release, with the first six months to be served under home confinement. The court also ordered Carter to pay restitution to the Social Security Administration in the amount of $77,353.00.
Court proceedings indicated that from January 2008, continuing to January 2014, Carter stole money belonging to the Social Security Administration by concealing his employment status in order to receive benefits from the Social Security Administration’s Title II Disability Insurance Benefits program, to which he knew he was not entitled by failing to disclose income through employment.
The case was investigated by the U.S. Social Security Administration, Office of Inspector General, Office of Investigations. The case is being prosecuted by Assistant U.S. Attorney William E. Coonan.
Oklahoma City Woman Sentenced to 33 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that AMANDA LEEANN TIGER, age 26, of Oklahoma City, Oklahoma, was sentenced to 33 months imprisonment, followed by 3 years of supervised released for POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C).
The Indictment alleged that on or September 1, 2015, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with intent to distribute a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance.
The charges arose from an investigation by the Drug Enforcement Administration. The defendant pled guilty in October 2015.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which she will serve her nonparoleable sentence.
Assistant United States Attorney Shannon Henson represented the United States.
Ohio Man Sentenced to 30 Years in Federal Prison for Intersate Travel to Engage in a Sexual Act with a ChildRead the Press Release
Fort Smith, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Antoine Lebeux Michael, age 42, of New Boston, Ohio, was sentenced to 360 months in federal prison without the possibility of parole and lifetime supervised release for one count of Interstate Travel to Engage in A Sexual Act with a Child under the Age of 12 Years Aggravated Sexual Abuse with a Child. The sentencing hearing took place before the Honorable P. K. Holmes, III in the United States District Court in Fort Smith.
According to court records, in July, 2015, an undercover officer with the Fort Smith Police Department entered an internet chat room using an online persona of a single mother of two children under the age of 10. An individual in the chat room that identified himself as “Andy” made contact with the undercover officer stating that he liked young girls. During their chats, “Andy” detailed specific, graphic sexual acts that he wanted to engage in with the two children and the undercover officer, and even discussed his desire to impregnate the daughter once she was older so there would always be kids around. “Andy” talked about not having to hide his “pics” that he had stored on encrypted hard drives from the undercover officer, and sent pictures of himself and described his truck to the undercover officer. “Andy” and the undercover officer discussed him traveling from Ohio to meet the undercover officer and the two fictitious children, and they agreed to meet at a public place in Fort Smith. On August 10, 2015, “Andy” arrived at the agreed location, he made contact with the undercover officer, they made small talk, and he then asked if they could go pick up the children. Officers then moved in and arrested “Andy” who was subsequently identified as Antoine Michael. Officers recovered several phones, hard drives, a laptop, and a GPS from his vehicle. Michael later waived his Miranda rights and made a statement admitting to traveling from Ohio to Arkansas for the purpose of engaging in sex acts with what he thought was a single mother and her two children. Forensic analysis of the recovered GPS showed that Michael had traveled from Ohio to Arkansas. He was indicted by a federal grand jury on October 28, 2015, and pleaded guilty to the charge on January 21, 2016.
This case was investigated by the Fort Smith Police Department and the Sebastian County Prosecuting Attorney’s Office. Assistant United States Attorney Aaron Jennen prosecuted the case for the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and their Criminal Division Child Exploitation and Obscenity Sections (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
North Franklin Man Pleads Guilty to Failing to Pay Taxes on Money He Misappropriated from TrustRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JOSEPH SUDIK, 60, of North Franklin, waived his right to indictment and pleaded guilty yesterday in New Haven federal court to filing false tax returns.
According to court documents and statements made in court, SUDIK operated a dentistry practice, and also acted as a trustee of the Walter S. Sudik Trust, his uncle’s estate. In 2010 and 2011, SUDIK took more than $248,000 from the Trust without authorization and was paid $35,500 by the Trust for fiduciary fees for his services as trustee and reimbursement for closing his dental office to act as trustee. On his 2010 and 2011 federal tax returns, SUDIK willfully failed to report a total of $284,167 in unreported income and failed to pay $63,229 in income taxes.
With respect to his 2010 federal tax return, SUDIK falsely reported taxable income of $25,026 and a tax due of $1,419. In his 2011 federal tax return, SUDIK falsely reported only $1,230 in taxable income and a tax due of $1,171.
SUDIK pleaded guilty to one count of filing a false tax return, a charge that carries a maximum term of imprisonment of three years and a fine of up to $250,000. He is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on July 27, 2016.
SUDIK has agreed to pay back taxes, plus penalties and interest. In addition, he has agreed to pay full restitution to the four trust beneficiaries of the funds he took from the trust without authorization.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
New York Man Sentenced to 15 Years in Prison for Trafficking A Girl to Work as A ProstituteRead the Press Release
TRENTON, N.J. – A Spring Valley, New York, man was sentenced today to 15 years in prison for trafficking and forcing a minor into prostitution for profit, U.S. Attorney Paul J. Fishman announced.
Wilbur Senat, 26, aka “Wilby,” was convicted on Count Two and Count Four of a superseding indictment charging him with sex trafficking of children and transportation of a minor to engage in prostitution. He was convicted following an eight-day trial before U.S. District Judge Michael A. Shipp, who imposed the sentence today in Trenton federal court.
According to the documents filed in this case and the evidence at trial:
The minor victim met Senat in the summer of 2011 in Haverstraw, New York. Shortly after they met, Senat took her to a motel in Nyack, New York, where he provided her with marijuana and alcohol and then forced her to engage in commercial sex acts with various individuals for which they paid Senat. The next day, Senat purchased tickets for himself and the minor victim in the names of “Mr. Senat” and “Ms. Senat,” and boarded a bus with her, taking her from New York to Philadelphia, for the purpose of having her engage in further acts of prostitution.
In addition to the prison sentence, Judge Shipp sentenced Senat to a lifetime term of supervised release, the provisions of which restrict his contact with minors, and a $5,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing. The New Jersey Division of Criminal Justice also provided assistance.
The government is represented by Assistant U.S. Attorneys Molly S. Lorber, R. Joseph Gribko, and Sarah M. Wolfe of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense Counsel: Scott A. Krasney, Esq., West Trenton, New Jersey
New York Man Pleads Guilty to Credit Card FraudRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Donnell J. Slay, Jr., age 21, of Uniondale, New York, pled guilty yesterday in federal court in Greenville, to conspiracy to commit access device fraud, a violation of Title 18, United States Code, Section 1029. United States District Judge Bruce Howe Hendricks, of Charleston accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that on January 17, 2016, the Gaffney Police Department was summoned to the Gaffney Premium Outlet to investigate reports of fraudulent transactions. The investigation led officers to Slay who had a total of fifty fraudulent credit cards on his person.
Officers located the vehicle driven by Slay and obtained a search warrant. During execution of this warrant, officers located an additional twenty-seven counterfeit credit cards embossed with Slay’s name.
Mr. Nettles stated the maximum penalty Slay can receive is a fine of $250,000 and/or imprisonment for 5 years, plus a special assessment of $100.
The case was investigated by agents of the Gaffney Police Department and the Department of Homeland Security, Office of Investigations. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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Nevada Dry Cleaner Owner Indicted for Filing False Tax Returns and Obstructing the Internal Revenue LawsRead the Press Release
A federal grand jury in the District of Nevada returned a superseding indictment on May 10 charging a Las Vegas woman with two counts of filing false tax returns with the Internal Revenue Service (IRS) and one count of corruptly endeavoring to impair and impede the due administration of the internal revenue laws, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Daniel Bogden of the District of Nevada.
According to the superseding indictment, from at least 2005 through at least 2009, Judith Woodward, then known as Judith Atwell, was the 99 percent owner and joint operator of a dry cleaning business, Canyon Gate Cleaners, in Las Vegas, Nevada, which she held in the name of a partnership called Canyon Enterprises LLC. Woodward is alleged to have underreported the gross receipts of Canyon Gate Cleaners on the partnership’s 2005 through 2009 tax returns. She is also alleged to have underreported her personal income on her 2005 through 2009 individual income tax returns.
According to the superseding indictment, between at least 2005 and 2009, Woodward concealed the true gross receipts of the business by depositing hundreds of thousands of dollars of cash receipts into personal bank accounts she controlled or by not depositing the cash receipts into any bank account. The superseding indictment alleges that Woodward fraudulently withheld information regarding the business’s gross receipts and her personal income from the individual who prepared the business’s partnership tax returns and her individual income tax returns for the years 2005 through 2009. Woodward is alleged to have used tens of thousands of dollars of unreported cash business receipts for personal expenditures, including the purchase of luxury vehicles. Woodward is also alleged to have made false and misleading statements to special agents of IRS-Criminal Investigation (IRS-CI) during an interview in June 2010.
If convicted, Atwell faces a statutory maximum sentence of three years in prison and a $250,000 fine on each count of the superseding indictment. She also faces supervised release and restitution.
An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Bogden thanked special agents of IRS-CI, who are investigating the case and Trial Attorneys Christopher S. Strauss and Eric C. Schmale of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
McKinney, Texas Man Sentenced to 108 Months for Money Laundering ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that NATHAN PHILLIP WEBSTER, age 40, of McKinney, Texas, was sentenced to 108 months imprisonment, followed by 36 months of supervised release for MONEY LAUNDERING CONSPIRACY, in violation of Title 18, United States Code, Section 1956(h).
Charges arose from an investigation by the Drug Enforcement Administration. The defendant was indicted in April 2015 and pled guilty in December 2015.
The Indictment alleged that beginning in or about August of 2011, the exact date being unknown and continuing until in or about January 2013, the defendant did willfully and knowingly combine, conspire, confederate, and agree together with others known and unknown, to knowingly conduct and attempt to conduct a financial transaction affecting interstate and foreign commerce, by purchasing a Green, 2001, Ford F150, truck, with the intent to promote the carrying on of specified unlawful activity, to wit: the acquisition, possession, and distribution of methamphetamine, and that while conducting and attempting to conduct such financial transaction knew that the property involved in the financial transaction represented the proceeds of some form of unlawful activity.
The charge further alleges that the defendant deposited large sums of United States Currency into bank accounts in Dallas, Texas, knowing that the transactions were designed in whole or in part to conceal and disguise the nature, location, source, ownership, and control of the proceeds from the distribution of methamphetamine.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which he will serve his nonparoleable sentence.
Assistant United States Attorney Rob Wallace represented the United States.
Louisiana Woman Indicted for Preparing False Tax Returns, Contempt of Court, Forging a Federal Judge’s Signature and Bank Fraud Related to the BP Deepwater Horizon Oil SpillRead the Press Release
A federal grand jury sitting in New Orleans, Louisiana, returned an indictment on May 6, which was unsealed today, against a LaPlace, Louisiana, woman charging her with 37 counts of aiding and assisting in the preparation of false tax returns, eight counts of contempt of court, one count of bank fraud and one count of forgery of a judge’s signature, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division and U.S. Attorney Kenneth Allen Polite Jr. of the Eastern District of Louisiana.
According to the indictment, Shawanda Nevers aka Shawanda Hawkins and Shawanda Bryant, operated a tax return preparation business under several names and at various locations in the LaPlace area. It is alleged that between 2011 and 2016, Nevers filed 37 false tax returns for clients that claimed a variety of fraudulent losses and deductions, including false Schedule C businesses and false unreimbursed employee expenses. In September 2014, a federal judge permanently enjoined Nevers from preparing federal tax returns. Nevers is charged with contempt of court for violating that injunction by preparing eight federal income tax returns in 2015 and 2016.
Nevers also is charged with forging the signature of a federal bankruptcy judge on a false document purporting to be an order reinstating a bankruptcy petition and with bank fraud for submitting a fraudulent claim for losses supposedly caused by the BP Deepwater Horizon oil spill in 2010.
If convicted, Nevers faces a statutory maximum sentence of three years in prison for each count of aiding and assisting in the preparation of false tax returns, 30 years in prison for the bank fraud charge and five years in prison for the charge of forging the signature of a federal judge. There is no statutory maximum sentence for the contempt of court charges. She also faces substantial monetary penalties, supervised release and restitution.
An indictment merely alleges that crimes have been committed. Defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Polite commended special agents of Internal Revenue Service-Criminal Investigation, who investigated the case and Assistant U. S. Attorneys Hayden Brockett and Mimi Nguyen of the Eastern District of Louisiana, and Trial Attorney Grace Albinson of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Louisiana Woman Indicted for Preparing False Tax Returns, Contempt of Court, Forging a Federal Judge’s Signature and Bank Fraud Related to the BP Deepwater Horizon Oil SpillRead the Press Release
WASHINGTON – A federal grand jury sitting in New Orleans, Louisiana, returned an indictment on May 6, which was unsealed today, against a LaPlace, Louisiana, woman charging her with 37 counts of aiding and assisting in the preparation of false tax returns, eight counts of contempt of court, one count of bank fraud and one count of forgery of a judge’s signature, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division and U.S. Attorney Kenneth Allen Polite Jr. of the Eastern District of Louisiana.
According to the indictment, Shawanda Nevers aka Shawanda Hawkins and Shawanda Bryant, operated a tax return preparation business under several names and at various locations in the LaPlace area. It is alleged that between 2011 and 2016, Nevers filed 37 false tax returns for clients that claimed a variety of fraudulent losses and deductions, including false Schedule C businesses and false unreimbursed employee expenses. In September 2014, a federal judge permanently enjoined Nevers from preparing federal tax returns. Nevers is charged with contempt of court for violating that injunction by preparing eight federal income tax returns in 2015 and 2016.
Nevers also is charged with forging the signature of a federal bankruptcy judge on a false document purporting to be an order reinstating a bankruptcy petition and with bank fraud for submitting a fraudulent claim for losses supposedly caused by the BP Deepwater Horizon oil spill in 2010.
If convicted, Nevers faces a statutory maximum sentence of three years in prison for each count of aiding and assisting in the preparation of false tax returns, 30 years in prison for the bank fraud charge and five years in prison for the charge of forging the signature of a federal judge. There is no statutory maximum sentence for the contempt of court charges. She also faces substantial monetary penalties, supervised release and restitution.
An indictment merely alleges that crimes have been committed. Defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Polite commended special agents of the Internal Revenue Service-Criminal Investigation and the U.S. Secret Service, who investigated the case and Assistant U.S. Attorneys Hayden Brockett and Mimi Nguyen of the Eastern District of Louisiana, and Trial Attorney Grace Albinson of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Little Eagle Man Sentenced for Assault with a Dangerous WeaponRead the Press Release
United States Attorney Randolph J. Seiler announced that a Little Eagle, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on May 9, 2016, by U.S. District Judge Charles B. Kornmann.
Dace Bobtail Bear, a/k/a Dace Little Dog, age 19, was sentenced to 28 months in custody, followed by 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Bobtail Bear was indicted by a federal grand jury on December 8, 2015. He pled guilty on February 17, 2016.
The conviction stemmed from an incident on October 11, 2015, when during the early morning hours, Bobtail Bear was arguing with some people at a home in Little Eagle. He knocked a woman to the ground, causing her to call for help. The victim came out from a bedroom in the home to assist the woman. Bobtail Bear began to assault the victim, knocking him to the ground, jumping on top of him, and repeatedly striking him. Others in the home unsuccessfully attempted to get Bobtail Bear to stop. During the assault, Bobtail Bear grabbed a steak knife and stabbed the victim multiple times.
Bobtail Bear admitted to the officers the next day that he did, in fact, stab the victim and that he was not acting in self-defense. As a result of the assault, the victim was treated at Mobridge Regional Hospital. He suffered a collapsed lung and was required to have a chest tube inserted.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Bobtail Bear was immediately turned over to the custody of the U.S. Marshals Service.
KC Man Sentenced for Meth After Leading Officers on 100 MPH ChaseRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man – who led law enforcement officers on a 100-miles-per-hour chase before being arrested – was sentenced in federal court today for distributing methamphetamine.
Aaron N. Whitworth, 31, of Kansas City, was sentenced by U.S. Chief District Judge Greg Kays to 11 years and three months in federal prison without parole.
On Oct. 20, 2015, Whitworth pleaded guilty to distributing methamphetamine. According to court documents, a confidential informant made multiple purchases of methamphetamine from Whitworth in April 2011. Those purchases led to a search warrant of his residence, which resulted in the seizure of 1.232 kilograms of methamphetamine and of many items associated with the process of manufacturing methamphetamine. Following Whitworth’s indictment, a warrant was issued for his arrest.
Whitworth arrived at the Maple Woods Care Center at 724 N.E. 79th Terr., Kansas City, Mo., on the afternoon of April 22, 2015. He fled when he saw several Deputy U.S. Marshals positioning to arrest him. During his attempted escape, Whitworth reversed his vehicle and accelerated rapidly in an attempt to escape capture. He collided with a deputy’s vehicle then accelerated forward and collided with another deputy’s vehicle and forcefully pushed it out of his way. Whitworth then left the parking lot of the Maple Woods Care Center and drove through the grass of Oak Park High School to avoid another deputy, who was also attempting to stop him from escaping. Whitworth led law enforcement officers on an extended chase, during which he drove at speeds in excess of 100 miles per hour and forced other motorists to maneuver in order to avoid a collision. Whitworth was captured only after stop sticks were deployed and his vehicle disabled.
Various items of drug paraphernalia consistent with the consumption of methamphetamine were found in Whitworth’s vehicle after his arrest.
This case is being prosecuted by Assistant U.S. Attorney Patrick Edwards. It was investigated by the Kansas City, Mo., Police Department.
Judge Sentences Pittsburgh Man to Prison for Cocaine Trafficking ConspiracyRead the Press Release
PITTSBURGH - One resident of Pittsburgh, Pennsylvania, has been has been sentenced in federal court to 18 months’ imprisonment, followed by 4 years’ supervised release, on his conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Liban Dirie, 47, of Pittsburgh, Pennsylvania.
According to information possessed by the Court, from in and around January, 2014, and continuing thereafter to on or about Feb. 11, 2015, in the Western District of Pennsylvania and elsewhere, Dirie conspired with others to distribute and possess with intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of cocaine.
Assistant United States Attorney Katherine A. King prosecuted this case on behalf of the government.
The Pennsylvania State Police, the Allegheny County District Attorney’s Narcotics Enforcement Team (DANET), and a task force led by the Drug Enforcement Administration conducted the investigation leading to the successful prosecution of Dirie. The task force also was comprised of police officers from the Pittsburgh Bureau of Police, the Baldwin Police Department, the Munhall Police Department, Scott Township Police Department, Allegheny County Police, the Pennsylvania State Police, the Duquesne Police Department, and the West Homestead Police Department.
Joint Investigation Leads to Indictment of Tyrone Man for Possession of Child PornographyRead the Press Release
JOHNSTOWN, Pa. – A Blair County resident was indicted today by a federal grand jury in Johnstown on a charge of possession of child pornography, United States Attorney David J. Hickton announced today.
The indictment named Joseph A. Mattern, 21, of Tyrone, Pa., as the sole defendant.
According to the indictment presented to the court, on August 19, 2015, he knowingly possessed pictures and videos in individual computer graphic files which were produced using prepubescent minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, Pennsylvania State Police and Altoona Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
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 better 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.
Jicarilla Apache Man Sentenced for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Christian Quintana, 20, an enrolled member of the Jicarilla Apache Nation who resides in Dulce, N.M., was sentenced this morning in federal court in Albuquerque, N.M., to 18 months in prison followed by three years of supervised release for his federal assault conviction.
Quintana was arrested on March 2, 2015, on an indictment charging him with assault with a dangerous weapon and assault resulting in serious bodily injury. The crimes charged in the indictment took place on July 19, 2014, on the Jicarilla Apache Reservation in Rio Arriba County, N.M.
On Oct. 27, 2015, Quintana pled guilty to the assault with a dangerous weapon charge. In entering the guilty plea, Quintana admitted that on July 19, 2014, he stabbed the victim with a knife during a physical confrontation.
This case was investigated by the Jicarilla Apache Tribal Police Department and was prosecuted by Assistant U.S. Attorney David Adams.
Huntington drug dealer pleads guilty to Federal heroin crimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pleaded guilty today to a federal heroin charge, announced Acting United States Attorney Carol Casto. Jeremiah Eugene Caldwell, 32, entered his guilty plea to possession with intent to distribute heroin.
On September 9, 2015, deputies with the Cabell County Sheriff’s Department executed a search warrant at Caldwell’s residence located at 1400 Cedar Crest Drive in Huntington. Deputies recovered approximately 30 grams of heroin, a set of digital scales, and four firearms. During the execution of the search warrant, law enforcement found Caldwell at his residence and arrested him. Caldwell admitted that he possessed the heroin and the firearms seized in the search. He further admitted that he had been distributing heroin for approximately six months.
Caldwell faces up to 20 years in federal prison when he is sentenced on August 8, 2016.
The Cabell County Sheriff’s Department conducted the investigation. Assistant United States Attorney Joseph F. Adams is handling the prosecution. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
This prosecution is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Guatemalan Man Sentenced to 24 Months for Illegally Re-entering the United StatesRead the Press Release
ALBANY, NEW YORK – William Heriberto Reyes-Morales, age 43, was sentenced today to serve 24 months in prison for illegally re-entering the United States.
The announcement was made by United States Attorney Richard S. Hartunian and Michael T. Phillips, Buffalo Field Office Director of Enforcement & Removal Operations for U.S. Immigration and Customs Enforcement (ICE).
Reyes-Morales, a Guatemalan citizen living in Amsterdam, New York, pled guilty in January 2016 to illegally re-entering the United States after having been previously deported.
In July 2015, ICE officers encountered Reyes-Morales at the Montgomery County Jail, where he was being held for a violation of state law. A check of Reyes-Morales’s record indicated that he had been deported from the United States to Guatemala four times, the most recent being in July 2012, after being convicted of possession with intent to distribute marijuana in the United States District Court for the District of Arizona. Reyes-Morales was also deported to Guatemala in 2004, 2007 and 2008.
This case was investigated by Immigration and Customs Enforcement, and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Greenwood Woman Pleads Guilty to Money Transmission CrimeRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Linda B. Massey, age 70, of Greenwood, pled guilty yesterday in federal court in Greenville, to operating an illegal money transmission business, a violation of Title 18, United States Code, Section 1960. United States District Judge Bruce Howe Hendricks, of Charleston accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that a co-conspirator, who is currently believed to be residing on the Indian subcontinent, contacted Linda Massey and told her he needed someone in the US to open a bank account, receive payments, and send money to him in India. He told Massey she could keep 10 percent of the funds collected if she transmitted the 90 percent to him. He instructed her on creating a limited liability company known as Prime Technologies. She agreed to work with him.
Operatives from a call center in India then contacted American citizens over the telephone or through a pop-up advertisement appearing on victims’ computers, convinced them that their computers were infected with a virus, and then installed worthless or malicious software on the computers to “fix” the problem. The computer owners paid for these services by sending a check made out to Prime Technologies to an address controlled by Massey. Massey deposited the checks and wired a portion of the monies to India.
Law enforcement estimates that the losses to the victims exceed $500,000.
Mr. Nettles stated the maximum penalty Massey can receive is a fine of $250,000 and/or imprisonment for 5 years, plus a special assessment of $100.
The case was investigated by agents of the Federal Bureau of Investigation. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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Granite City Chiropractor Pleads Guilty to Healthcare Fraud and Money LaunderingRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today, that Bridget Brasfield, 45, of Edwardsville, Illinois, pled guilty to a two-count information charging Health Care Fraud and Money Laundering. Sentencing has been set for August 30, 2016, in U.S. District Court in Benton, Illinois. At that time Brasfield will face up to 20 years in prison, a fine of up to $500,000, and up to 3 years of supervised release.
During her plea hearing, Brasfield, who was a chiropractic physician licensed in Illinois, who practiced in Granite City, admitted that between January of 2011 and January of 2014, she submitted approximately $500,000 in false and fraudulent bills to various health care benefit plans. The fraudulent submissions to Medicaid, Medicare, Tricare, Federal Employees Health Benefit Program, Blue Cross Blue Shield of Illinois and Coventry Insurance claimed that a Medical Doctor had provided services to patients at her Granite City Office when in fact the Doctor was out of the country when the services were claimed to have been provided. Brasfield also admitted that she had engaged in a financial transaction that involved criminally derived proceeds from her health care fraud. The specific transaction involved $12,000 in criminally derived funds that she transferred in violation of federal money laundering statutes.
The investigation was conducted by the Southern Illinois Health Care Fraud Task Force with active investigations by the U.S. Department of Health and Human Services - Office of Inspector General, the Illinois State Police -Medicaid Fraud Control Bureau, the U.S. Postal Inspection Service, the U.S. Office of Personnel Management, Office of the Inspector General, the United States Postal Service Office of Inspector General, the U.S. Department of Labor – Office of Inspector General – Office of Labor Racketeering and Fraud Investigations, the Federal Bureau of Investigation, the Defense Criminal Investigative Service, the Department of Labor Employee Benefits Security Administration and the US Railroad Retirement Board, Office of Inspector General. The case is being prosecuted by Assistant United States Attorneys Ranley R. Killian and Scott A. Verseman.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General, or you may call 1.800.447.8477.
Glendale Doctor Agrees to Plead Guilty to Distributing Addictive Painkiller and to Forfeit Nearly $100,000 in Criminal ProceedsRead the Press Release
LOS ANGELES – In a plea agreement filed this morning, a Glendale doctor has agreed to plead guilty to a federal drug trafficking charge for illegally distributing hydrocodone, a powerful painkiller best known by the brand names Vicodin and Norco.
Dr. Manasseh Nwaigwe, 72, who resides in Glendale and operated a medical office in Boyle Heights, agreed to plead guilty to one count of illegal distribution of hydrocodone. As part of the agreement with the government, Nwaigwe will forfeit to the government more than $97,000 in cash that Nwaigwe admits were proceeds derived from his illegal prescriptions.
In the plea agreement, Nwaigwe admits that, on five occasions in May and July 2015, he wrote prescriptions for drugs to undercover law enforcement officers in exchange for cash.
Nwaigwe prescribed the drugs hydrocodone, clonazepam (commonly known by the brand name Klonopin), and promethazine with codeine (a narcotic cough syrup known on the streets as “purple drank” or “sizzurp”) to undercover agents who “did not in fact have a medical need for those prescriptions.” In exchange, Nwaigwe received $90 cash for each prescription.
“The issuance of prescriptions without a legitimate medical purpose fuels the prescription drug abuse epidemic and the related problem of heroin use across the United States,” said United States Attorney Eileen M. Decker. “Doctors who choose illegal profits instead of dispensing sound medical care are no better than street corner drug dealers.”
“Prescription drug abuse continues to plague our communities – it’s a nationwide epidemic and the effects have taken a horrific toll on public health and safety across the U.S.,” said John S. Comer, Special Agent in Charge of DEA’s Los Angeles Field Division. “The DEA remains committed to identifying and investigating doctors prescribing potentially lethal substances outside the scope of legitimate medical practice.”
Under the terms plea agreement, Nwagiwe will cooperate with the Medical Board of California by surrendering his medical license, which will effectively resolve a pending action filed by the Medical Board against Nwaigwe earlier this year. On March 8, the Medical Board filed an accusation against Nwaigwe that alleged sexual misconduct, prescribing without an appropriate exam and gross negligence.
Under the plea agreement, Nwaigwe also will surrender his DEA registration, which is the federal license that all physicians must have to prescribe controlled substances.
Nwaigwe is expected to appear in United States District Court in Los Angeles on June 7 for an arraignment, at which point a hearing to enter his guilty plea will be scheduled.
The drug distribution charge against Nwagiwe carries a statutory maximum penalty of 20 years in federal prison.
The investigation into Nwaigwe was conducted by the Drug Enforcement Administration, the Medical Board of California, the Los Angeles Police Department, the Los Angeles County Sheriff’s Department, the Torrance Police Department, and the Redondo Beach Police Department.
German Shipping Company Charged with Covering up Illegal Dumping of Oily Waste Water into Great LakesRead the Press Release
United States Attorney Andrew M. Luger today announced an indictment charging MST MINERALIEN SCHIFFAHRT SPEDITION UND TRANSPORT GMBH (“MST”), a German company and operator of the M/V Cornelia, with violating the Act to Prevent Pollution from Ships (APPS) by failing to maintain an accurate ship record about the disposal of oil-contaminated waste. The defendant is also charged with presenting falsified records to the U.S. Coast Guard.
According to the indictment and documents filed in court, from February 2015 through October 2015, the M/V Cornelia, a German-owned commercial vessel, experienced significant leakages of oily waste-water. As a result, the M/V Cornelia was accumulating a substantial volume of machinery space bilge water.
On at least ten occasions during the indicted period, the M/V Cornelia’s Chief Engineer and/or Second Engineer instructed members of the engine room crew to transfer machinery space bilge water from the dirty bilge tank to the clean bilge tank, which is a separate tank that is supposed to contain only clean, oil-free water, and then discharge the oily waste-water overboard. At least one occasion when machinery space bilge water was transferred to the clean bilge tank and then discharged overboard occurred in approximately May 2015 while the ship was in the Great Lakes.
On each occasion in which oily waste-water was transferred internally and then discharged overboard, the Chief Engineer intentionally failed to record the transfers and subsequent discharges of oily waste-water in the M/V Cornelia’s Oil Record Book (ORB). This gave the false impression in the ORB that all of the oily waste-water had been properly handled and disposed.
On November 3, 2015, the M/V Cornelia called upon the Port of Duluth to load grain for transport to Africa. At that time, U.S. Coast Guard inspectors boarded the vessel to conduct a Port State Control examination and were presented with the M/V Cornelia’s ORB containing the omissions and false entries.
The indictment is the result of an investigation conducted by the U.S. Coast Guard Investigative Service and the U.S. Environmental Protection Agency.
This case is being prosecuted by Assistant U.S. Attorneys Benjamin F. Langner and John Kokkinen.
Defendant Information:MST MINERALIEN SCHIFFAHRT SPEDITION AND TRANSPORT GMBH
Schnaittenbach, GermanyCharges:
- Violation of the Act to Prevent Pollution From Ships, 1 count
- False Entries/Omissions in Records in a Federal Investigation, 8 counts
Four South Dakotans Charged with Social Security FraudRead the Press Release
United States Attorney Randolph J. Seiler announced that four people have been indicted by a federal grand jury for Theft of Government Funds.
Darrell Duane Vik, age 71, of Beresford, South Dakota; Norwood Baybridge, age 64, of Sioux Falls, South Dakota; Michele Kelliher, age 48, of Watertown, South Dakota; and Tanyel Rippentrop, age 40, of Brandon, South Dakota, were each indicted on March 9, 2016, on the charge of Theft of Government Funds. In addition, Rippentrop was also charged with Access Device Fraud.
They all appeared before U.S. Magistrate Judge Veronica L. Duffy on May 6, 2016, and pled not guilty to the Indictments.
The maximum penalty upon conviction for the theft charge is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered. The maximum penalty upon conviction for Ripptentrop’s access device fraud charge is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Each defendant is accused of converting to his or her own use the Social Security benefits meant for a family member’s care. Rippentrop is also accused of using a prepaid debit card belonging to the family member to draw on those funds.
The charges are merely accusations and the defendants are presumed innocent until and unless proven guilty.
The investigations are being conducted by the Social Security Administration – Office of the Inspector General. Criminal Chief Dennis R. Holmes is prosecuting Rippentrop and Kelliher; Assistant U.S. Attorney Connie Larson is prosecuting Vik; and Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting Baybridge.
The defendants were released pending trial. Trial dates have not been set.
Fort Thompson Man Charged with Felon in Possession of FirearmsRead the Press Release
United States Attorney Randolph J. Seiler announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Felon in Possession of Firearms.
Conrad Fleury, age 34, was indicted on April 13, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 6, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about February 13, 2016, Fleury, having been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed and received firearms.
The charge is merely an accusation and Fleury is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Fleury was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Fort Thompson Man Charged with Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Lucas Paul Evans, a/k/a Abdul Evans, a/k/a Lucas Harrison, a/k/a Abdul Salom Harrison, a/k/a Abubarker Harrison, a/k/a Abubarker Shabazz Evans, age 28, was indicted on April 19, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 9, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is at least 5 years up to 40 years in custody and/or a $5,000,000 fine, at least 4 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between December 1, 2013, and April 19, 2016, Evans knowingly and intentionally combined, conspired, confederated and agreed with other persons to knowingly and intentionally distribute, and possess with intent to distribute, methamphetamine in South Dakota.
The charges are merely an accusation and Evans is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, Crow Creek Agency, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Evans was remanded to the custody of the U.S. Marshals Service pending trial. Trial has been set for July 6, 2016.
Former Tribal Corrections Officer Sentenced for Sexually Abusing an Inmate and Violating Her Civil RightsRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez, Special Agent Terry Wade of the FBI’s Albuquerque Division and Chief Herman Silva of the Laguna Pueblo Tribal Police Department announced today the sentencing of Trevor Hunt for his conviction on sexual assault and criminal civil rights charges. Hunt, 22, of Paguate, N.M., was a detention officer at the Laguna Pueblo Detention Facility (LPDF) when he committed these crimes. Hunt will serve a 30-month term of imprisonment followed by five years of supervised release and will be required to register as a sex offender for 15 years after completing his prison sentence.
Hunt pled guilty on Jan. 28, 2016, to a two-count felony information charging him with sexual abuse of a ward, an inmate who was under Hunt’s supervision, and violating her civil rights. The plea agreement states that on May 23, 2015, while Hunt was on duty at the LPDF, he sexually assaulted the victim in the facility’s laundry room. In entering the guilty plea, Hunt admitted that the victim was in official detention and under his custodial and supervisory control when he sexually assaulted her. Hunt also admitted willfully violating the victim’s constitutional rights when he assaulted her.
This case was investigated by the Albuquerque office of the FBI and the Pueblo of Laguna Tribal Police Department, and was prosecuted by Assistant U.S. Attorneys David Adams and Holland S. Kastrin.
This case was brought as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Former Roxse Homes Workers Plead Guilty to Taking BribesRead the Press Release
BOSTON – Two former employees of Roxse Homes, a subsidized housing development in Boston, pleaded guilty in U.S. District Court in Boston in connection with a scheme to rent apartments at the housing development to individuals who were not qualified in exchange for cash bribes.
Mathis Lemons, 42, of Brockton, pleaded guilty today and Ismael Morales, 36, of Jamaica Plain, pleaded guilty on Monday, May 2, 2016 to one count each of conspiracy and seven counts each of corrupt receipt of payments by a federally funded organization. Lemons is scheduled to be sentenced on Sept. 20, 2016 and Morales on Aug. 3, 2016.
Lemons was the assistant property manager and Morales worked as a maintenance technician for Roxse Homes, a subsidized housing development on Tremont Street in Roxbury. At Roxse Homes, eligible low-income families and individuals can obtain rental housing for a subsidized rate with Section 8 housing benefits from the U.S. Department of Housing and Urban Development. In 2014, there was a shortage of federally subsidized Section 8 housing in Massachusetts, and Roxse Homes maintained a long waitlist of applicants desiring apartments in the complex. The Roxse Homes waitlist had been closed to external applicants since 2009.
From September 2014 to February 2015, Lemons and Morales conspired to rent apartments to individuals who were not eligible for subsidized Roxse Homes apartments because they were not on the waitlist. Morales solicited and accepted money from individuals, and provided those individuals with blank rental applications. Morales also instructed some of the individuals not to date their applications, or to date their applications in 2006 or 2009, when in fact the applications were completed in 2014. Lemons then added the unqualified individuals to the Roxse Homes computerized waitlist, and falsely inputted their application dates as 2006 or 2009.
The charge of conspiracy provides a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. The charge of bribery provides a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, New York Regional Office; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Glenn A. Cunha, Inspector General of Massachusetts; and Boston Police Commissioner William B. Evans, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Kristina E. Barclay and Eugenia M. Carris of Ortiz’s Public Corruption Unit.
Former Postal Employee Pleads Guilty to Stealing MailRead the Press Release
NORFOLK, Va. – Tiffany Gordon, 32, of Norfolk, pleaded guilty today to theft of mail matter by a postal employee.
According to a statement of facts, Gordon had been employed by the U.S. Postal Service since December 2010 and worked as a mail processing clerk at the Norfolk Processing and Distribution Center. In September 2015, the U.S. Postal Service’s Office of the Inspector General received a complaint regarding missing mail that contained gift cards. The investigation revealed that Gordon, in the performance of her duties, had been stealing greeting cards that appeared to contain gift cards. Based on a search of her car, personal bag, and apartment, she was found to have stolen 295 pieces of mail containing more than $5,000 in gift cards.
Gordon was indicted by a federal grand jury on April 6, and faces a maximum penalty of five years in prison when sentenced on September 8. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul L. Bowman, Special Agent in Charge, U.S. Postal Service, Office of Inspector General, made the announcement after the plea was accepted by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney Randy Stoker is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16cr53.
Former North Charleston, South Carolina, Police Officer Michael Slager Charged with Federal Civil Rights OffenseRead the Press Release
Contact Person: Public Affairs (202) 514-2007
Washington – Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, and U. S. Attorney Bill Nettles of the District of South Carolina announced today that a federal grand jury returned a three-count indictment charging former North Charleston, South Carolina, Police Department (NCPD) Officer Michael Slager with federal offenses related to his fatal shooting of Walter Scott on April 4, 2015. The indictment includes charges for a federal civil rights offense, using a firearm during the commission of the civil rights offense and obstruction of justice.
The indictment alleges that Michael Slager, while acting as an NCPD Officer, used excessive force when he shot and killed Walter Scott without legal justification. Slager was also charged with obstruction of justice for making false statements to South Carolina Law Enforcement Division (SLED) investigators with the intent to impede the investigation into the shooting. The indictment alleges that Slager intentionally misled SLED investigators by claiming that Scott was coming toward him with a taser at the time that Slager fired his weapon, when in truth, Scott was running away.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, Slager faces a maximum sentence of 1ife in prison for the civil rights violation, as well as a potential $250,000 fine.
The case is being investigated by the FBI’s Columbia Division and SLED. The case is being prosecuted by Assistant U.S. Attorney Eric Klumb of the District of South Carolina and Trial Attorney Jared Fishman of the Civil Rights Division’s Criminal Section.
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Former North Charleston, South Carolina, Police Officer Michael Slager Charged with Federal Civil Rights OffenseRead the Press Release
Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, and U. S. Attorney Bill Nettles of the District of South Carolina announced today that a federal grand jury returned a three-count indictment charging former North Charleston, South Carolina, Police Department (NCPD) Officer Michael Slager with federal offenses related to his fatal shooting of Walter Scott on April 4, 2015. The indictment includes charges for a federal civil rights offense, using a firearm during the commission of the civil rights offense and obstruction of justice.
The indictment alleges that Michael Slager, while acting as an NCPD Officer, used excessive force when he shot and killed Walter Scott without legal justification. Slager was also charged with obstruction of justice for making false statements to South Carolina Law Enforcement Division (SLED) investigators with the intent to impede the investigation into the shooting. The indictment alleges that Slager intentionally misled SLED investigators by claiming that Scott was coming toward him with a taser at the time that Slager fired his weapon, when in truth, Scott was running away.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, Slager faces a maximum sentence of 1ife in prison for the civil rights violation, as well as a potential $250,000 fine.
The case is being investigated by the FBI’s Columbia Division and SLED. The case is being prosecuted by Assistant U.S. Attorney Eric Klumb of the District of South Carolina and Trial Attorney Jared Fishman of the Civil Rights Division’s Criminal Section.
Michael Slager Indictment
Former Executive Indicted for Role in Automotive Parts ConspiracyRead the Press Release
A federal grand jury in the U.S. District Court for the Eastern District of Michigan returned an indictment against Nobuhiko Niwa, a former automotive parts executive, for his alleged participation in a conspiracy to fix prices, rig bids and allocate the market for ceramic substrates sold in the United States and elsewhere, and used in catalytic converters supplied to automobile manufacturers in the United States and elsewhere, announced the Justice Department today.
The one-count indictment, filed today in Detroit, charges Niwa, a Japanese national, with conspiring to fix prices, rig bids and allocate the market for ceramic substrates used in automotive emissions control systems to reduce pollution. Automotive emissions control systems containing affected substrates were supplied to automobile manufacturers including General Motors, Ford, Chrysler and Honda, and certain of their subsidiaries, affiliates and suppliers in the U.S. and elsewhere.
“Those who corrupt the competitive process must be held accountable,” said Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division. “Today’s indictment reaffirms our commitment to vigorously prosecute corporate executives who scheme to harm their customers, such as those in the U.S. auto industry.”
“Mr. Niwa’s role in rigging bids and fixing prices to increase revenues subverted the free market structure of our economy,” said Special Agent in Charge David P. Gelios of the FBI’s Detroit Division. “The scheme came at a cost to auto manufacturers, suppliers, and ultimately, consumers. Criminal acts that negatively impact consumers and damage our economy will be actively investigated and prosecuted.”
Niwa is charged with participating in the conspiracy from July 1999 to July 2011, when he served as Director and Senior Director of the mobile emissions division of a Japanese subsidiary of a Fortune 500 company based in Corning, New York. The U.S. company manufactures substrates in the United States and sells those products in the United States and elsewhere. Its Japanese subsidiary, which employed Niwa, markets and manages sales of substrates manufactured in the United States. Some of the affected substrates were installed in catalytic converters for vehicles sold to U.S. consumers.
Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging, and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI. Including Niwa, a total of 59 individuals and 39 companies have been charged and have agreed to pay more than $2.6 billion in criminal fines.
This indictment was brought by the Antitrust Division’s Washington Criminal I Section and the FBI’s Detroit Division with the assistance of the FBI’s International Corruption Unit. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit http://www.justice.gov/atr/contact/newcase.html or call the FBI’s Detroit Field Office at 313-965-2323.
Niwa Indictment
Former CEO of Investment Firm with Main Office in Spain to Pay $8 Million as Part of Agreement to Resolve Criminal AllegationsRead the Press Release
LOS ANGELES – The former chief executive officer of Absolute Capital Holdings Ltd., which had its primary office in Palma on the Spanish island of Majorca, has entered into an agreement with federal prosecutors in which he will forfeit $8 million that federal prosecutors contend was derived from a fraud scheme conducted by fugitive hedge fund manager Florian Homm, who is accused of overseeing a stock manipulation scheme that caused investors to lose approximately $200 million.
Sean Ewing, 51, a resident of Dubai in the United Arab Emirates, has agreed to forfeit $8 million in a civil settlement, and he has agreed to appear in United States District Court on a criminal case that charges him with books and records violations under the Investment Advisers Act of 1940.
Prosecutors filed a criminal information and a Deferred Prosecution Agreement against Ewing on May 5, and those documents became publicly available today. Prosecutors entered into the agreement, in part, because Ewing, who resides in the United Arab Emirates, has agreed to voluntarily travel to the United States to resolve this matter, and he is taking responsibility for the actions alleged in the criminal case.
According to government filings, Ewing, who along with Homm was a co-founder of Absolute Capital, was the company’s chief executive officer and chairman. Ewing was also a substantial shareholder of Absolute Capital, which traded on the Alternative Investment Market in the London Stock Exchange. From January 30, 2006 through September 10, 2007, Absolute Capital was a registered investment adviser with the United States Securities and Exchange Commission, and Ewing was listed on SEC filings as chief compliance officer. Absolute Capital managed eight hedge funds (the Absolute Funds) involved in an alleged stock manipulation scheme that was designed to artificially prop up the value of the Absolute Funds and Absolute Capital’s stock price.
The Deferred Prosecution Agreement, which resolves the government’s investigation as to Ewing, provides that the government will not pursue Ewing in the stock manipulation scheme. The criminal information filed last week charges Ewing with causing Absolute Capital to fail to keep certain records required by the SEC, namely certain annual securities holdings reports and quarterly transaction reports from persons within the company who had access to confidential information, as well as records of pre-approval of securities trades by such access persons. These records were meant to identify material conflicts of interest between Absolute Capital access persons and Absolute Capital clients, which including the Absolute Funds operated by the company.
In the Deferred Prosecution Agreement, Ewing admits that he was named as the Absolute Capital’s chief compliance officer in SEC filings, but he failed to adequately discharge responsibilities of that position. Among other things, Ewing failed to require Homm and other senior executives at Absolute Capital who had access to confidential information to provide annual holdings reports and quarterly transaction reports, and he did not ensure that they secured pre-approval of securities trades in order to identify any material conflicts of interest with the Absolute Funds raised by such securities trading.
“The United States is continuing to pursue justice and restitution for investors who suffered from the collapse of Absolute Capital,” said United States Attorney Eileen M. Decker. “Mr. Ewing has admitted that he failed to fulfill duties prescribed by U.S. securities laws that are designed to protect investors, and he has agreed to forfeit the monies we believe he obtained as a result.”
Homm was arrested in Italy in 2013 at the request of the United States, and he was subsequently named in an indictment that accused him of orchestrating a stock manipulation scheme designed to “pump up” the reported returns of his hedge funds, while self-dealing for his own benefit and to the detriment of the funds. The United States sought Homm’s extradition to the United States. Homm was ordered extradited by the Italian Ministry of Justice, but he was released from custody and is believed to have fled to Germany, where he remains a fugitive.
In December 2015, a federal grand jury returned a superseding indictment against Homm and three additional defendants. The superseding indictment outlines a penny stock manipulation scheme designed to pump up the reported returns of the eight Absolute Funds and alleges that the fraud caused investors to lose approximately $200 million. The superseding indictment also charges Homm and the other defendants with money laundering.
As part of a Deferred Prosecution Agreement, Ewing will pay the settlement, but will not admit any criminal liability or concede knowledge of any allegedly illegal acts by Homm and others at Absolute Capital.
The Deferred Prosecution Agreement requires Ewing to appear in federal court in Los Angeles soon after he pays the $8 million settlement. In return, the government will dismiss certain seizure warrants filed to restrain Ewing-related assets in the Bailiwick of Guernsey and – if Ewing abides by all of the terms of the agreement, which includes cooperating truthfully with the FBI’s ongoing investigation – will dismiss the criminal case within one year.
The case against Ewing is the product of an investigation by the Federal Bureau of Investigation. The Bailiwick of Guernsey Law Enforcement and the United Kingdom Financial Conduct Authority provided assistance to the FBI’s investigation.
Former Bowie Man Indicted for Fraudulent Investment SchemeRead the Press Release
Greenbelt, Maryland – A federal grand jury indicted Sidney J. Charles, Jr., age 49, of Raceland, Louisiana, formerly of Bowie, Maryland, on mail and wire fraud charges arising from an investment fraud scheme. The indictment was returned on April 27, 2016 and unsealed on May 10, 2016, after Charles was arrested late on May 9, 2016, in Levelland, Texas.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.
According to the three-count indictment, in August 2009 Charles founded The Borrowing Station, a Nevada limited liability company with its principal place of business in Bowie. From October 2009 through July 2011 Charles served as the president and chief executive officer of the business. Charles marketed The Borrowing Station as an established investment firm that offered significant returns on investments.
The indictment alleges that from at least October 2009 through July 2011, The Borrowing Station, acting through Charles and others, orchestrated and operated a scheme to solicit investors with false promises of high rates of guaranteed return on their investments. Specifically, The Borrowing Station, through Charles and others, solicited investors directly and through its website to participate in a pooled investment plan that traded off-exchange leveraged or margined foreign currency contracts (“forex” or “foreign currency”). The solicitation included false promises, including: that investors could earn substantial investment returns such as 25% per year or 10% per month; that The Borrowing Station was an established, successful, and safe investment firm; and that pool participant funds were guaranteed against trading losses. For example, The Borrowing Station website stated: “If for any reason we do not reach a return of 25%, we will subsidize your account with our money.” The indictment alleges that as a result, The Borrowing Station obtained at least $368,628.37 from at least 17 individuals.
The indictment alleges that The Borrowing Station, through Charles: paid pool participants with other pool participants’ funds rather than from any funds generated by trading forex, and deposited only a portion of pool participant funds into actual trading accounts; hid trading losses from pool participants, including substantial losses resulting from unsuccessful forex trades; and used pool participant funds to pay for Charles’s personal expenses, and to fund The Borrowing Station’s operations.
According to the indictment, to conceal the scheme Charles communicated false information to pool participants in response to their requests for the return of their funds. In addition, Charles and others allegedly issued lulling payments to pool participants that typically approximated the return of 10% per month that Charles, directly and through others, had promised pool participants.
If convicted, Charles faces a sentence of 20 years in prison for each of two counts of wire fraud and for mail fraud. An initial appearance was held on May 10, 2016, in U.S. District Court for the Northern District of Texas. Charles is scheduled to have an initial appearance U.S. District Court in Greenbelt on June 8, 2016, at 1:30 p.m. before U.S. Magistrate Judge Timothy J. Sullivan.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and recognized the U.S. Commodity Futures Trading Commission for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Sujit Raman, and Special Assistant U.S. Attorney Mara Senn, of the U.S. Justice Department’s Asset Forfeiture and Money Laundering Section, who are prosecuting the case.
Former Bank CEO Pleads Guilty to Nine Million Dollar Bank FraudRead the Press Release
Jackson, TN – A former Savanah, Tennessee bank CEO has pleaded guilty in federal court to a one count information charging him with conspiracy to commit bank fraud. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee announced the guilty plea today.
According to the information presented in court, Christopher Brent Jerrolds, age 54, of Savanah, Tennessee was Central Bank’s Chief Executive Officer (CEO) and President until his termination from the bank in 2012. Jerrolds became the President and CEO of Central Bank in 1996 and a member of the Bank’s Board of Directors in 1998. According to the information, beginning in 2009 and continuing until March 2012, Jerrolds, acting in his capacity as President and CEO of Central Bank, gave preferential treatment to Tennessee Materials Corporation. As a result of the criminal conspiracy, Central Bank, Wayne County Bank, and First Metro Bank lost more than $9,000,000.
The information states that from March 31, 2009 until October 18, 2010, Jerrolds allowed TMC to deposit insufficiently funded checks ("bad checks") into TMC’s account at Central Bank. These "bad checks" were deposited into TMC’s account to cover overdraft balances in TMC’s account. When a previously deposited "bad check" in TMC’s account was returned for insufficient funds, another "bad check" drawn on one of TMC’s other bank accounts was deposited to replace the previously deposited "bad check(s)." The deposited amounts and the frequency of deposits increased each month, and at times, multiple checks were deposited on a single occasion.
By October 18, 2010, Jerrolds was responsible for accepting and approving TMC’s deposit of 161 "bad checks" with a total transaction amount of $116,169,218. The deposit of the "bad checks" created "false balances" in TMC’s account which enabled TMC to use funds in TMC’s checking account that belonged to Central Bank. The fraudulent account balances created by the deposit of the "bad checks" enabled TMC to take approximately $3.9 million dollars belonging to Central Bank, without the knowledge or approval of the Central Bank’s Board of Directors.
The information further states that on July 11, 2011, Jerrolds made a $1,079,338 advance to TMC without the knowledge and approval of the Bank’s Board of Directors. During the same time, Jerrolds released to TMC $500,000 that Central Bank held as security on a prior loan to TMC. Jerrolds released the monies to TMC despite the fact that TMC made no payments on the loan and without the approval of the Bank’s Board of Directors.
The information further provides that in 2011 and 2012 Jerrolds issued to TMC Letters of Credit in the amount of $2,000,000 and $1,783,000. Jerrolds, among other things, concealed the issuance of the Letters of Credit from Central Bank, did not enter the Letters of Credit into the books and records of Central Bank, and did not obtain approval from the Bank’s Board of Directors to issue the Letters of Credit. The borrower used the Letters of Credit as collateral to obtain a $2,000,000 dollar loan from Wayne County Bank and a $1,783,000 loan from First Metro Bank. Wayne County Bank and First Metro Bank made a demand on the Letters of Credit after the borrower defaulted on the loans.
Jerrolds faces a sentence of up to five years imprisonment, a fine of not more than $250,000 and a period of up to three years of supervised release. The Court can also order Jerrolds to pay restitution to Central Bank, Wayne County Bank and First Metro Bank. Jerrolds is scheduled to be sentenced by Judge Breen in Jackson, Tennessee on August 11, 2016.
This case was investigated by the Federal Deposit Insurance Corporaton and the Federal Bureau of Investigation. The government’s case is being prosecuted by First Assistant U.S. Attorney Larry Laurenzi .
Floridian Sentenced to Prison for Hiding Assets from Bankruptcy CourtRead the Press Release
PITTSBURGH - A Florida resident has been sentenced in federal court to 30 months imprisonment to be followed by a three-year term of supervised release and restitution in the amount of $48,260.00 on his conviction concealment of bankruptcy assets, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Gregory M. Makozy, Sr., 55, of Port St. Lucie, FL.
According to the information presented to the court, the government represented to the court that Makozy concealed assets from the bankruptcy court in a Chapter 7 Petition in bankruptcy filed in 2013 by transferring assets he owned to others, including a 2005 Aston Martin automobile, and real estate located in Butler County, PA.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Office of the United States Trustee, the United States Postal Inspection Service and the Internal Revenue Service-Criminal Investigation for the successful prosecution of Gregory M. Makozy.
Florida Man Indicted for Operating Sex Trafficking EnterpriseRead the Press Release
Defendant Allegedly Used Fraudulent Scheme to Import Foreign University Students in Furtherance of Prostitution and Erotic Massage Enterprise
Jeffrey Jason Cooper, 46, of Miami Beach, Florida, was charged late yesterday in an 11-count indictment in the Southern District of Florida with sex trafficking and attempted sex trafficking by fraud, wire fraud, importation of aliens for prostitution or immoral purposes and use of a facility of interstate commerce to operate a prostitution enterprise.
According to allegations in the indictment and criminal complaint, Cooper recruited foreign students from Kazakhstan through the State Department’s Summer Work Travel Program, using false and fraudulent promises of clerical jobs in a fictitious yoga studio in order to bring the students into the United States and advertise them to customers of his prostitution and erotic massage enterprise. As alleged in the indictment and complaint, Cooper recruited the foreign university students on false pretenses, knowing that no such yoga studio existed.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty. If convicted of sex trafficking, Cooper faces a mandatory minimum sentence of 15 years in prison. The wire fraud charges carry a statutory maximum sentence of 20 years in prison. Importing or attempting to import an alien for immoral purposes carries a statutory maximum sentence of 10 years in prison, and using a facility of interstate commerce to promote an unlawful activity carries a statutory maximum sentence of five years in prison.
The case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, State Department’s Diplomatic Security Service, Miami-Dade Police Department and North Bay Village, Florida, Police Department. The case is being prosecuted by Assistant U.S. Attorney Seth M. Schlessinger of the Southern District of Florida and Trial Attorney Matthew T. Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.
The Southern District of Florida was selected as one of six Phase I Anti-Trafficking Coordination Teams (ACTeams) through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. Designated ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
Jeffrey Cooper Indictment
Florida Man Indicted for Operating Sex Trafficking EnterpriseRead the Press Release
Jeffrey Jason Cooper, 46, of Miami Beach, Florida, was charged late yesterday in an 11-count indictment in the Southern District of Florida with sex trafficking and attempted sex trafficking by fraud, wire fraud, importation of aliens for prostitution or immoral purposes and use of a facility of interstate commerce to operate a prostitution enterprise.
According to allegations in the indictment and criminal complaint, Cooper recruited foreign students from Kazakhstan through the State Department’s Summer Work Travel Program, using false and fraudulent promises of clerical jobs in a fictitious yoga studio in order to bring the students into the United States and advertise them to customers of his prostitution and erotic massage enterprise. As alleged in the indictment and complaint, Cooper recruited the foreign university students on false pretenses, knowing that no such yoga studio existed.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty. If convicted of sex trafficking, Cooper faces a mandatory minimum sentence of 15 years in prison. The wire fraud charges carry a statutory maximum sentence of 20 years in prison. Importing or attempting to import an alien for immoral purposes carries a statutory maximum sentence of 10 years in prison, and using a facility of interstate commerce to promote an unlawful activity carries a statutory maximum sentence of five years in prison.
The case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, State Department’s Diplomatic Security Service, Miami-Dade Police Department and North Bay Village, Florida, Police Department. The case is being prosecuted by Assistant U.S. Attorney Seth M. Schlessinger of the Southern District of Florida and Trial Attorney Matthew T. Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.
The Southern District of Florida was selected as one of six Phase I Anti-Trafficking Coordination Teams (ACTeams) through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. Designated ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
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
Five Sentenced for Cocaine Trafficking Conspiracy in Eastern North CarolinaRead the Press Release
WILMINGTON – The United States Attorney’s Office announces that five individuals were sentenced for their involvement in a cocaine trafficking conspiracy. All five were part of the same drug trafficking organization operating in the Rocky Mount area.
The following individuals were indicted on October 22, 2015. Count 1 charged conspiracy possess with the intent to distribute cocaine from August 2015 to October 22, 2015. Counts 2, 4, & 5 charged carrying and using a firearm during and in relation to a drug-trafficking crime and possession of such firearm in furtherance of a drug trafficking crime on August 26, 2015. Count 3 charged possession of a firearm by a felon on August 26, 2015. DERRICK PITTMAN, GUILLERMO ESPINOSA, RAMIRO CALIXTRO, and ALEXIS CALIXTRO-CASAS pled guilty and were sentenced to the following. JORGE ESPINOSA was convicted after a jury trial and was sentenced to the following. The count(s) of the indictment in which each defendant was convicted is shown below:
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Derek Pittman, 32, of Battleboro, NC – Counts 1 & 4, 197 months imprisonment; 5 years supervised release
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Guillermo Monge Espinosa, 44, of Tarboro, NC – Count 1, 236 months imprisonment; 5 years supervised release
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Ramiro Calixtro, 43, of Rocky Mount, NC – Count 1, 60 monthsimprisonment; 5 years supervised release
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Alexis Calixtro-Casas, 21, of Rocky Mount, NC – Counts 1 & 5, 81 months imprisonment; 3 years supervised release
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Jorge Espinosa, 23, of Greenville, NC – Count 1, 188 months imprisonment; 5 years supervised release
In August 2015, federal and local law enforcement agencies utilized a confidential informant (CI) to arrange a two-kilogram purchase of cocaine from ALEXIS CALIXTRO-CASAS. CALIXTRO-CASAS contacted his uncle, RAMIRO CALIXTRO, a drug associate of GUILLERMO ESPINOSA, to supply the two kilograms of cocaine for the transaction. On August 26, 2015, while under the surveillance of several law enforcement agencies, CALIXTRO-CASAS and the CI met in the Wal-Mart parking lot in Rocky Mount to complete the transaction. Shortly thereafter, GUILLERMO ESPINOSA and RAMIRO CALIXTRO arrived in the parking lot. GUILLERMO ESPINOSA led the CI to the residence of DERRICK PITTMAN in the Battleboro community of Rocky Mount. GUILLERMO ESPINOSA telephoned his son, JORGE ESPINOSA, who, along with an unidentified and unindicted coconspirator, soon arrived at the PITTMAN residence with one kilogram of cocaine for the CI to inspect for quality. When they arrived, GUILLERMO ESPINOSA received a handgun and the cocaine from either the unidentified/unindicted coconspirator or from PITTMAN. After the CI was satisfied with the quality of the cocaine, the CI left PITTMAN’S residence with the intent to return with cash to purchase two kilograms of cocaine from GUILLERMO ESPINOSA. Because the number of participants involved in this transaction was much greater than law enforcement officers anticipated, the officers decided to execute simultaneous traffic stops of the vehicles driven by GUILLERMO ESPINOSA and CALIXTRO-CASAS.
Within minutes of these stops, officers raided PITTMAN’S residence and PITTMAN was apprehended. Officers seized 993.74 grams of cocaine and a loaded handgun from PITTMAN’S property. Approximately $2,000 in cash was seized from PITTMAN’S person.
Around this time, officers established surveillance at a residence on Deer Run Road in Rocky Mount where ROSA HERNANDEZ (who was initially indicted but passed away from an illness while awaiting disposition) and her daughter, GLORIA SOLANO (awaiting sentencing), were staying. Through the investigation, law enforcement linked HERNANDEZ to GUILLERMO ESPINOSA. While conducting surveillance at the Deer Run Road residence, law enforcement observed ADAN ESPINO, II (awaiting sentencing) driving the GMC onto the property. GLORIA SOLANO and ROSA HERNANDEZ also arrived at the property in a separate vehicle. Hernandez went inside the house and returned to place a bag inside the GMC. ESPINO left the property in the GMC and was stopped by officers. Numerous packages containing $141,014 in cash were seized from inside the GMC. Seven packages containing a total of $139,580 were located inside the hidden compartment.
A search of the Deer Run Road property yielded a ledger, a money-counting machine, money-packaging materials, and $8,000 in cash were seized. The investigation revealed that they packaged and delivered approximately $140,000 in cash to ESPINO at GUILLERMO ESPINOSA’S residence on August 25, 2015. Examination of the ledger revealed that 26 kilograms of cocaine were received in Rocky Mount from Texas on August 24, 2015, and that $910,000 in cash was to be transported to Texas as payment for the cocaine.
The case was investigated by the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Edgecombe County Sheriff’s Office; the Nash County Sheriff’s Office; the Rocky Mount Police Department; the Tarboro Police Department; and the Pine Tops Police Department. Special Assistant U.S. Attorney Patrick B. Weede and Assistant United States Attorney Toby Lathan prosecuted the case for the government.
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Final Two Individuals Sentenced in String of Armed RobberiesRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Samuel Lee Lynch (29, Temple Terrace) to life imprisonment and Reo Thomas Nance (31, Temple Terrace) to 52 years’ imprisonment for conspiracy, armed robbery, and firearms offenses in connection with five Tampa Bay area armed robberies occurring in March and April of 2015. As part of their sentences, the Court also entered money judgments in the amount of $93,519, the proceeds of the armed robberies. Lynch and Nance were found guilty on January 29, 2016.
According to evidence presented at trial, Lynch, Nance, and co-defendants Christopher Marquis Fruster (21, Tampa) and Brittany Jenae Hall (27, Tampa) targeted check cashing businesses that kept large amounts of cash on hand, ultimately stealing more than $93,000. During each robbery, Lynch and Nance brandished firearms. During the March 26, 2015 robbery of the Nebraska Food Market, Lynch shot an accomplice and bystander.
Both Fruster and Hall previously pleaded guilty in relation to this case. On March 22, 2016, Fruster was sentenced to 13 years in federal prison, and on April 12, 2016, Hall was sentenced to three years in federal prison.
This case was investigated by Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Tampa Police Department, and the Temple Terrace Police Department. It was prosecuted by Assistant United States Attorney Carlton C. Gammons.
Final Defendant in Stockton Methamphetamine Conspiracy Sentenced to 12 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Thomas Jaime Orozco, 35, of Stockton, was sentenced Wednesday by U.S. District Judge Kimberly J. Mueller to 12 years in prison for conspiring to distribute methamphetamine, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, Orozco was the leader of a methamphetamine distribution conspiracy in San Joaquin County in 2012. He supplied five co-defendants with methamphetamine that they, in turn, sold to an undercover agent and others. On two occasions, an undercover agent purchased a total of about 1.7 pounds of methamphetamine from Orozco’s co-conspirators. On November 29, 2012, the undercover agent agreed to meet with Orozco in Lodi to purchase 10 pounds of methamphetamine. Co-conspirators Vincent Camarillo, 29, and Theodore Ohagen IV, 25, both of Stockton, came with Orozco. Agents arrested all three at the site of the deal and discovered that Camarillo was carrying a stolen, loaded handgun concealed in his waistband.
After the arrests, police found at the site of the last deal, which was a home occupied by co-conspirator Jeffrey Lamendola, 53, of Lodi, two additional loaded handguns, four pistol magazines, 70 rounds of ammunition, 55 grams of methamphetamine, a digital scale, baggies, needles, and 215 grams of marijuana. A Lodi residence shared by Camarillo and Ohagen contained two bulletproof vests, seven rifle magazines, one pistol magazine, about 700 rounds of ammunition, nearly $15,000 in cash, 12 cellphones, 24 grams of cocaine, and nearly 10 kilograms of marijuana.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Amanda Beck prosecuted the case.
“This sentence is a direct result of the tireless work HSI agents and our local law enforcement partners have carried out to disrupt and dismantle drug trafficking rings in a joint effort to keep our communities safe,” said Ryan L. Spradlin, Special Agent in Charge of HSI San Francisco.
After pleading guilty to conspiracy to distribute methamphetamine, Camarillo was sentenced to 10 years in prison on October 28, 2016, and Lamendola was sentenced to seven and a half years in prison on January 6, 2016.
The following defendants in the conspiracy pleaded guilty to using a cellphone for the purpose of drug trafficking and were sentenced as follows: On January 20, 2016, Sarah Torreblanca, 29, of San Jose, was sentenced to four years in prison; on April 9, 2014, Lisa Elliott, 55, of Lodi, was sentenced to three years in prison; and on March 2, 2016, Ohagen was sentenced to four years in prison.
Federal Court Shuts Down South Florida Tax Return PreparerRead the Press Release
Return Preparer Allegedly Claimed Fraudulent Credits and Deductions
A federal court has ordered West Palm Beach-area tax return preparer Paul Jean not to prepare federal tax returns for anyone except himself, the Justice Department announced today. The order was entered after Jean failed to respond to the United States’ civil complaint.
According to the complaint, Jean has operated under the business names Whiz Tax and Rejoice Tax Services. The complaint alleges he has prepared returns that claim fabricated or inflated tax credits including claiming improper earned income tax credits, education credits, or fuel credits. In addition, Jean allegedly prepared returns that report false or inflated deductions on Schedule A (Itemized Deductions), such as deductions for mortgage interest paid or charitable contributions, or on Schedule C (Profit or Loss From Business), such as expenditures for supplies or office expenses.
The Internal Revenue Service (IRS) estimates that Jean, directly or indirectly, has prepared and filed more than 3,000 tax returns since 2012, according to the complaint, and that the harm Jean’s conduct has inflicted on the U.S. Treasury may be in the millions of dollars.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
East Pittsburgh Man Sentenced to 6 Years in Prison for Participating in Drug Trafficking SchemeRead the Press Release
PITTSBURGH - A resident of East Pittsburgh, Pennsylvania, has been sentenced in federal court to a term of imprisonment of 72 months (6 years), to be followed by six years of supervised release, on his conviction of conspiracy to distribute and possess with intent to distribute heroin and crack cocaine, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Allen William Turner, 48, of East Pittsburgh, PA.
According to information presented to the court, from September 2013 to December 2013, Turner conspired to distribute and possess with intent to distribute more than 100 grams of heroin, and more than 28 grams of crack cocaine.
Assistant United States Attorney Troy Rivetti prosecuted this case on behalf of the government.
This prosecution is the result of a federal Organized Crime Drug Enforcement Task Force (OCDETF) investigation led by the Federal Bureau of Investigation and the Drug Enforcement Administration. Other participating agencies include the Allegheny County Police Department, Pennsylvania State Police, Allegheny County Sheriff's Office, Pittsburgh Bureau of Police, Munhall Police Department and Wilkinsburg Police Department.
Eagle Butte Woman Sentenced for Assault with a Dangerous WeaponRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, woman convicted of Assault with a Dangerous Weapon was sentenced on May 9, 2016, by U.S. District Judge Roberto A. Lange.
Rikki Hill, age 21, was sentenced to 36 months in custody, 3 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Hill was indicted by a federal grand jury on December 8, 2015. She pled guilty on February 9, 2016.
The conviction arose from an August 12, 2015, incident when Hill and her sister got into a verbal argument that escalated into a physical fight. After the girls’ parents broke up the fight, Hill grabbed a knife from the kitchen. Her parents pushed Hill out of the house and locked the door behind her, but Hill crawled through a basement window and re-entered the house. Once she was inside, Hill grabbed another knife and lunged at her sister, stabbing her in the arm. Hill attempted to stab her sister in the heart, but her sister blocked it and was cut in the arm instead.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Hill was immediately turned over to the custody of the U.S. Marshals Service.