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Monday 21 March 2016
Detroit Man Sentenced on Identity Theft ChargesRead the Press Release
St. Louis, MO - Shukree Melton, of Detroit, Michigan, was sentenced to 2 years for aggravated identity theft in connection with a fraudulent credit card and gift card scheme. He appeared before U.S. District Judge Henry Autrey in St. Louis today.
Melton was arrested at a shopping center in St. Louis County on July 28, 2015, with his three co-conspirators who had traveled down from Michigan. A search of the group’s vehicle and motel room revealed numerous fake store gift cards, a card encoder, a card reader and other device-making equipment, all of which has been seized and criminally forfeited. The group had successfully passed numerous fake gift cards before their arrest.
In addition to his prison sentence, Melton was ordered to pay restitution to the victims of his scheme pursuant to the Mandatory Victim Restitution Act.
The case was investigated by the St. Louis County Police Department and the St. Louis Office of the United States Secret Service.
Crack-Cocaine Distributor for Grape Street Crips Gang Sentenced to 176 Months in PrisonRead the Press Release
NEWARK, N.J. – A drug supplier for the Grape Street Crips street gang was sentenced today to 176 months in prison for his role in distributing large quantities of crack-cocaine in and around Newark, New Jersey, U.S. Attorney Paul J. Fishman announced.
Jihad Coles, a/k/a “Half Dead,” 31, of Newark, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of conspiracy to distribute 280 grams or more of crack-cocaine. Judge Salas imposed the sentence today in Newark federal court.
In May 2015, over the course of three weeks, 50 alleged members and associates of the Grape Street Crips were charged in criminal complaints that alleged drug-trafficking, physical assaults, and witness intimidation. The charges were the result of a long-running investigation led by the Drug Enforcement Administration (DEA) and the FBI, in conjunction with the Essex County Prosecutor’s Office, the Newark Police Department and Essex County Sheriff’s Office Bureau of Narcotics. Over the course of the entire investigation, 71 defendants have been charged with federal and state charges.
According to documents filed in this case and statements made in court:
Coles admitted that between March 2012 and August 2012 he conspired with others to distribute hundreds of grams of crack-cocaine at the Mildred Terrell Homes public-housing complex located on Riverview Terrace in Newark, New Jersey. As a long-time member of the Grape Street Crips, Coles admitted that he served as an organizer and leader of the crack-cocaine distribution conspiracy.
In addition to the prison term, which will be served consecutively to a state prison term that he is currently serving, Coles was sentenced to five years of supervised release.
U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl Kotowski, and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, for the investigation leading to today’s sentencing. He also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; police officers and detectives of the Newark Police Department, under the direction of Director Anthony Ambrose; and the Essex County Sheriff’s Office under the direction of Sheriff Armando B. Fontoura, for their work on the investigation.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry A. Kamar of the Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Clovis Pharmacy Owner Agrees to Pay $200,000 in Civil Penalties to Resolve Controlled Substances Act ClaimsRead the Press Release
SACRAMENTO, Calif. – Khoa Tan Huynh, owner of the Script Life Pharmacy in Clovis has agreed to pay the United States $200,000 to settle civil claims for statutory violations occurring at the pharmacy, United States Attorney Benjamin B. Wagner announced today.
According to the settlement agreement, in June 2013, an audit revealed multiple violations of the Controlled Substances Act (CSA). The government contends that between June 6, 2011, and December 31, 2012, Script Life Pharmacy accepted and filled prescriptions that lacked required information, including the prescribers’ DEA registration numbers and signatures. In addition, the audit demonstrated shortages of several controlled substances, along with overages of several others.
“Abuse of prescription drugs is a significant societal problem. Pharmacies must take great care to ensure that controlled substances do not end up in the wrong hands. This settlement underscores the federal commitment to holding accountable dispensaries of controlled substances,” said U.S. Attorney Wagner.
The Controlled Substances Act (CSA) authorizes the Drug Enforcement Administration (DEA) to regulate controlled substances to create a “closed” system of distribution that provides the legitimate drug industry with a unified approach to narcotic and dangerous drug control. The CSA establishes a classification system for all controlled substances, including prescription medications, based upon the potential for abuse, dependence profile, and medicinal value of the drugs. The CSA and its implementing regulations mandate that prescriptions for controlled substances include certain critical information and require pharmacies to maintain certain records and inventories of these controlled substances; these controls allow the DEA to protect the distribution system and prevent drug diversion and abuse.
This case was prosecuted by Assistant United States Attorney Catherine Swann and results from an investigatory audit by the DEA Fresno Diversion Group.
Canistota Woman Convicted of Tax FraudRead the Press Release
Canistota Woman Convicted of Tax Fraud
United States Attorney Randolph J. Seiler announced that Veronica Fairchild, age 42, of Canistota, South Dakota, and Okoboji, Iowa, who was found guilty of four counts of tax fraud as a result of a federal jury trial in Sioux Falls, South Dakota, lost her appeal of the conviction. The Eighth Circuit Court of Appeals affirmed the conviction of the District Court.
Fairchild was sentenced to 33 months in custody and ordered to pay over $214,000 in restitution to the U.S. Department of Treasury, Internal Revenue Service, for unpaid taxes.
Fairchild was indicted by a federal grand jury on July 9, 2013. The investigation stemmed from Fairchild’s late filing of her 2005 through 2008 income tax returns in 2010. Bank records revealed she had failed to claim over $850,000 in income over the four-year period of time. Fairchild claimed the unreported income she received from performing private shows as an exotic dancer was a gift. A jury trial commenced on June 24, 2014, and completed on June 26, 2014, with the jury convicting Fairchild on all four counts of the indictment.
On appeal, Fairchild challenged the evidence supporting her conviction, the jury instructions regarding the source of income, and the length of her sentence. The Eighth Circuit Court of Appeals affirmed the conviction and held that the evidence was sufficient to support the jury’s finding that Fairchild knowingly and willfully underreported her income as an exotic dancer. The Court also held that the jury instructions were proper and that the length of her sentence was reasonable.
This case was investigated by the Internal Revenue Service Criminal Investigation Division. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
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Cahokia Resident Pleads Guilty to Unlawful Possession of A Firearm and Tampering with A Potential WitnessRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that on March 17, 2016, Anthony D. Bradley, 27, Cahokia, IL, pled guilty to a three-count Superseding Indictment charging him, in Count 1, with the Unlawful Possession of a Firearm by a Previously Convicted Felon; and, in Counts 2 and 3, with Tampering with a Potential Witness.
On Count 1, Bradley faces a term of imprisonment of not more than ten (10) years, a fine up to $250,000, or both, and a term of supervised release of not more than three (3) years. On Counts 2 and 3, Bradley faces a term of imprisonment of not more than twenty (20) years, a fine up to $250,000, or both, and a term of supervised release of not more than three (3) years. Bradley also agreed to the forfeiture of the firearm he illegally possessed. Bradley’s sentencing is scheduled for June 24, 2016, in East St. Louis, Illinois. Bradley has been detained, that is, held without bond, since his arraignment on September 2, 2015.
The charge in Count 1 arose on July 18, 2015, when a traffic stop was conducted on a vehicle in which Bradley was a passenger. Prior to the vehicle stopping, the officer saw the Bradley, who was in the rear seat, bending towards the rear floorboard as if trying to hide something. After Bradley was removed from the rear seat, a firearm that had been partially concealed under the front driver’s seat was found on the rear floorboard. The officer noted from the position of the gun that it would have been impossible for either the driver or the front seat passenger to have placed the gun where he found it without him (the officer) having seen it before the vehicle stopped. In addition, both the driver and the front seat passenger were interviewed at the scene and both denied knowing that a gun was in the vehicle. Finally, the front seat passenger stated that she heard Bradley exclaim, "Damn," when the police pulled them over.
The charge in Count 2 arose when, on July 20, 2015, in a recorded jail call to K.M., Bradley asked K.M. to develop a false story that would involve K.M. leaving the gun, which was registered to K.M., in the vehicle without Bradley’s knowledge. Specifically, Bradley told K.M. to testify falsely that she got in the car and partially concealed the gun without Bradley’s knowledge. The charge in Count 3 arose later that same day when, in another recorded jail call to K.M., Bradley told K.M. to try to find witnesses to testify falsely that he/she/they saw K.M. sitting in the vehicle with Bradley prior to the July 18, 2015, traffic stop in which the gun was discovered.
The case was investigated by the Fairview Heights Police Department, the Illinois State Police, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is assigned to Assistant United States Attorney Angela Scott.
Brockton Man Sentenced to Ten Years for Bank Robbery SpreeRead the Press Release
BOSTON – A Brockton man was sentenced on Friday, March 18, 2016, in U.S. District Court in Boston for robbing multiple banks in 2014.
James Patterson, 47, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 121 months in prison, three years of supervised release and restitution in of $34,871. Patterson was convicted by a jury following a six-day trial in November 2015.
From April to July 2014, Patterson robbed five banks: the Beverly Bank on Dodge Street in Beverly on April 16th; the People’s United Bank on Dodge Street in Beverly on May 10th; the Century Bank on Fellsway West in Somerville on June 4th; the South Shore Bank on Turnpike Street in Stoughton on June 12th; and the North Shore Bank on Highland Avenue in Salem on July 20th. On each occasion, Patterson wore sunglasses, gloves, and covered his lower face with a bandana or clothing. After entering each bank, Patterson announced that it was a robbery and demanded large bills from the bank tellers.
Patterson was arrested on Aug. 4, 2014, near the Century Bank on Cambridge Street in Burlington carrying a black BB gun that had the appearance of a semi-automatic pistol. At the time of his arrest, Patterson was wearing a hat, sunglasses, long pants pulled over shorts, a heavy pullover top and latex gloves. The lower part of his face was covered with black clothing.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. The Beverly, Somerville, Stoughton, Salem, Peabody and Burlington Police Departments assisted with the investigation. The case was prosecuted by Assistant U.S. Attorneys Kenneth G. Shine and Robert E. Richardson of Ortiz’s Major Crimes Unit
Boston Man Convicted in Illegal Gun Trafficking SchemeRead the Press Release
BOSTON – A Boston man was convicted by a federal jury on Friday, March 18, 2016, in connection with his role in a scheme to illegally transport firearms into Massachusetts.
Shayne Parker, 41, of Dorchester, was convicted following a five-day trial of interstate transportation of firearms and being a felon in possession of 50 rounds of ammunition. U.S. District Court Judge F. Dennis Saylor, IV scheduled sentencing for June 10, 2016. In March 2015, Parker was arrested and charged in a criminal complaint. Parker has several felony convictions, including for violence and drug trafficking crimes.
In spring 2014, a joint law enforcement investigation uncovered a scheme in which firearms were bought in guns stores in New Hampshire and transported to Massachusetts for sale on the streets of Boston. The purchasers of the firearms were paid with drugs for their help.
During the course of the scheme, 16 guns were trafficked into Boston within three-weeks using three different straw purchasers. Ronald Scott, who was convicted in New Hampshire, purchased the guns and ammunition while Parker drove Scott to and from each of the five purchase locations in New Hampshire and handled the weapons and ammunition.
One of the guns – a 9mm semi-automatic firearm – was recovered on April 2, 2014, after Boston Police Officers pursued and arrested another individual. The firearm had been purchased 11 days before by Parker and his associates. In addition, during a search of a residence in Mattapan, law enforcement officers seized a .380 caliber semi-automatic weapon and a box containing 50 rounds of ammunition. The ammunition had been purchased just 22 days prior at Dick’s Sporting Goods in New Hampshire and transported to Massachusetts by Parker.
The charging statutes each provide a sentence of no greater than 10 years in prison, three years of supervised release, 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; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner William B. Evans, made the announcement. The case is being prosecuted by Assistant U.S. Attorney Glenn MacKinlay of Ortiz's Organized Crime and Gang Unit.
Bankruptcy Court Approves Alternative Purchaser of Orange County Register and Riverside Press-EnterpriseRead the Press Release
Decision Follows TRO Halting Anticompetitive Sale to Owner of L.A. Times
Today, the Bankruptcy Court for the Central District of California approved Digital First Media as the purchaser of Freedom Communications Inc., publisher of the Register in Orange County and the Press-Enterprise in Riverside County, California. After Tribune Publishing Company, publisher of the Los Angeles Times, had attempted to emerge as the winning bidder in the bankruptcy proceeding, the Department of Justice filed a civil antitrust lawsuit seeking to block Tribune from acquiring Freedom Communications on March 17, 2016. The next day, the Honorable André Birotte Jr., a federal judge in Los Angeles, granted the department’s application for a temporary restraining order to prevent Tribune from acquiring Freedom Communications pending further proceedings.
“Many Americans depend on local newspapers even in this age of electronic information,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “As Judge Birotte held in his well-reasoned opinion, newspapers play an important role in our democracy. Preventing the Los Angeles Times from combining with the Register and the Press-Enterprise will ensure that citizens and advertisers in Southern California continue to benefit from competition and from a diversity of views in their local news coverage. The Antitrust Division will remain vigilant in protecting competition in this important industry.”
In his ruling granting the department’s application for a temporary restraining order, Judge Birotte found that “local newspapers continue to serve a unique function in the marketplace: they are the creators of local content. It further stands to reason that local advertisers in search of print advertising would choose to advertise with local news providers.”
Bank Robbers Sent toFederal PrisonRead the Press Release
CORPUS CHRISTI, Texas – A Pearsall woman and a Lubbock man have both been ordered to prison following their convictions of one count of bank robbery, announced U.S. Attorney Kenneth Magidson today. Manuel Salas, 47, pleaded guilty Dec. 14, 2015, while Joyce Jenkins, 49, entered her plea in November 2015. Today, Senior U.S. District Judge John Rainey ordered Salas serve 90 months in federal prison. Jenkins was sentenced to a 45-month term of imprisonment last month. Both were further ordered to pay restitution and will serve three years of supervised release following their prison sentences. On March 24, 2015, law enforcement officers responded to a bank robbery at the American Bank in the 4100 block of S. Alameda in Corpus Christi. After entering the bank, Salas displayed a black handgun and demanded money from the teller. After receiving the money, Salas left the bank in a vehicle driven away by Jenkins. During the investigation, agents were able to identify several area bank robberies involving both defendants. In federal custody since their arrests, Salas and Jenkins will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be designated in the near future. The charges stem from an investigation by the FBI and the Corpus Christi Police Department. Assistant U.S. Attorney Lance Watt prosecuted the case.Bakersfield Man Pleads Guilty to Federal Firearm ChargeRead the Press Release
FRESNO, Calif. —Bryson LaPaul Blair, 30, of Bakersfield, pleaded guilty today to being a convicted felon in possession of a firearm and ammunition, United States Attorney Benjamin B. Wagner announced.
According to court documents, during the execution of a search warrant at Blair’s residence, officers found a loaded Russian assault weapon under Blair’s bed and 145 rounds of ammunition. Blair was previously convicted in Kern County of a felony and was prohibited from possessing firearms and ammunition.
Blair is scheduled to be sentenced by United States District Judge Lawrence J. O’Neil on June 13, 2016. Blair faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Bakersfield Police Department. Assistant United States Attorney Karen Escobar is prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state and local law enforcement to combat gun and gang crime. At the core of PSN is increased federal prosecution to incapacitate chronic violent offenders as well as to communicate a credible deterrent threat to potential gun offenders.
Armed Drug Dealer Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Alex White, 31, of Mobile, was sentenced today on charges involving drug distribution and using a gun during and in relation to his drug trafficking activities. White pled guilty to the charges in October of 2015.
Judge Kristi K. Dubose imposed a sentence of 90 months in White’s case, consisting of 84 months on the gun charge (a statutory mandatory sentence) followed by 6 months on the drug charge. She also ordered that White will undergo drug abuse counseling and treatment while he serves his time, and when he comes out of prison, he will continue such counseling and treatment as conditions of his five year term of supervised release. No fine was imposed, but the judge ordered that White pay $200 in special mandatory assessments.
The case was investigated by the Mobile County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Albuquerque Man Pleads Guilty to Federal Bank Robbery ChargeRead the Press Release
ALBUQUERQUE – Fabian Baros, 38, of Albuquerque, N.M., pleaded guilty today in federal court to a bank robbery charge under a plea agreement with the U.S. Attorney’s Office.
Baros was arrested in Sept. 2015, on a criminal complaint charging him with robbing the BBVA Compass Bank located at 1201 San Pedro Dr. in Albuquerque, on Sept. 10, 2015. The complaint alleged that Baros robbed the bank by approaching the bank teller and demanding money. Baros was arrested later that day by the Albuquerque Police Department.
Baros was subsequently indicted on Oct. 7, 2015. During today’s proceedings, Baros pled guilty to the indictment and admitted that he robbed the BBVA Compass Bank on Sept. 10, 2015.
At sentencing, Baros faces a maximum penalty of 20 years in federal prison followed by up to three years of supervised release. Baros remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney George C. Kraehe is prosecuting the case.
10 Year Sentence for Doctor Who Defrauded AFLACRead the Press Release
SAN JUAN, P.R. – On Monday, March 21, 2016, the Hon. Gustavo Gelpí sentenced Aníbal Pagan-Romero, a general practitioner with a clinic in Quebradillas, Puerto Rico, to a term of imprisonment of 120 months and a term of supervised release of five (5) years in the criminal case for mail fraud prosecuted against Pagan-Romero in federal court. Pagan-Romero was also ordered to pay $2,056,503.32 in restitution to the American Life Assurance Company (“AFLAC”) of Columbus, Georgia. This sentence is the result of a lengthy investigation undertaken by the Federal Bureau of Investigations into multiple insurance fraud schemes in the Western region of Puerto Rico which resulted in the arrest and prosecution of hundreds of individuals.
On October 5, 2015, Aníbal Pagan-Romero had been found guilty by a jury of his peers on all counts of an 82 count indictment charging 21 conspiracies and 61 individual counts of mail fraud. Pagan-Romero was charged with 35 patients for orchestrating a large-scale fraudulent scheme where he fraudulently signed AFLAC accidental insurance claim forms without examining the patients. The evidence presented at trial showed that Pagan-Romero caused a loss to AFLAC in excess of $6,000,000. The 35 patients who were charged alongside Pagan-Romero pled guilty to the charges prior to the trial.
The three-week trial before the Hon. Gustavo Gelpi included the testimony of three of the doctor’s employees and four patients who indicated that Pagan-Romero personally instructed them to submit the documents for his signature without examination. The evidence also showed that the scheme had grown so large and lucrative that Pagan-Romero had to hire two employees to do data entry full time in order to generate the thousands of AFLAC claim forms submitted for reimbursement under his signature.
The case was prosecuted by Assistant United States Attorneys Dennise N. Longo and Julia Díaz-Rex.
Saturday 19 March 2016
Two Arrested for Child Sexual ExploitationRead the Press Release
SYRACUSE, NEW YORK – Jason Kopp,40, of Liverpool, New York and Emily Oberst, 23, of Syracuse, New York were arrested yesterday and charged with sexual exploitation of a child by making pornographic images and distribution of child pornography involving a 16 month old infant, announced United States Attorney Richard S. Hartunian.
As alleged in the criminal complaint filed today, both defendants were arrested by Special Agents of the Federal Bureau of Investigation ("FBI") following the execution of search warrants and the seizure of evidence from their residences in Syracuse and Liverpool last night and early this morning.
The charges filed against Kopp and Oberst for sexual exploitation of a child by making pornographic images carry a minimum sentence of fifteen years and a maximum sentence of thirty years imprisonment. The charges for distribution of child pornography carry a minimum sentence of five years and a maximum sentence of twenty years imprisonment. Each charge provides for a fine of up to $250,000.
Kopp and Oberst appeared today in Syracuse, New York, before United States Magistrate Judge Andrew T. Baxter and were detained without bail pending further court proceedings.
The charges in the complaint are merely accusations. The defendants are presumed innocent until proven guilty.
This case is being investigated by FBI Albany Division (Syracuse Resident Agency), and the District of Columbia Metropolitan Police Department-Federal Bureau of Investigation ("MPD-FBI") Child Exploitation Task Force (Washington Field Office), and is being prosecuted by Assistant U.S. Attorney Lisa Fletcher.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Friday 18 March 2016
Woodbridge Man Pleads Guilty to Conspiring to Provide Material Support to ISILRead the Press Release
ALEXANDRIA, Va. – Joseph Hassan Farrokh, 28, of Woodbridge, pleaded guilty today to conspiring to provide material support and resources to a foreign terrorist organization, namely the Islamic State of Iraq and the Levant (ISIL).
In a statement of facts filed with the plea agreement, beginning in or about August 2015, and continuing through January 15, 2016, Farrokh conspired with Mahmoud Amin Elhassan, 25, of Woodbridge, to travel from the United States to Syria in order to fight with ISIL. As part of their plan, Farrokh would travel first, followed by Elhassan at a later date. Farrokh and Elhassan spoke in detail about their potential travel, including discussing the different routes each would take to travel to Syria. Farrokh also provided $600 to Elhassan to aid in Elhassan’s future travel to Syria. Both men spoke openly with each other about supporting ISIL and supporting violent jihad, with Farrokh saying on Oct. 2, 2015, that he had no patience and wanted to go right away and “chop their heads.”
According to the statement of facts, in an effort to conceal their plans to support ISIL, Farrokh and Elhassan communicated in a manner in which they thought they could not be detected by law enforcement, such as using apps they believed were safe from law enforcement detection. In the summer 2015, Farrokh and Elhassan talked more seriously about going to join ISIL. When Farrokh and Elhassan discussed ways to reach ISIL, they concluded that they needed someone to help them do so.
According to the statement of facts, from November 2015 through Jan. 15, 2016, Farrokh and Elhassan conspired with other persons they believed would help facilitate their travel to Syria. Over the course of many meetings, the men discussed in detail their travel plans and efforts to avoid law enforcement detection, including having Farrokh shave his beard and to fly out of Richmond International Airport to avoid what Farrokh believed to be stricter law enforcement scrutiny at Reagan National Airport. Farrokh and Elhassan agreed that Farrokh should tell his family that he intended to travel to Saudi Arabia to study.
On Jan. 15, 2016, Elhassan picked up Farrokh at his home in Woodbridge and drove him to Richmond to a location approximately one mile from the airport. Farrokh then took another cab to the airport, checked in for his flight, cleared security and was arrested as he was approaching his departure gate.
Farrokh was charged by criminal complaint on Jan. 16, 2016, and faces a maximum penalty of 20 years in prison when sentenced on July 15, 2016. 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; John Carlin, Assistant Attorney General for National Security; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Anthony J. Trenga. The case is being prosecuted by Assistant U.S. Attorneys Gordon D. Kromberg and Dennis M. Fitzpatrick, along with Trial Attorney D. Andrew Sigler of the Justice Department’s National Security Division’s Counterterrorism Section. The FBI’s Joint Terrorism Task Force is investigating 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. 1:16-cr-20.
Winchester Man Sentenced to 135 Months in Federal Prison for Conspiring to Distribute in Excess of One Kilogram of HeroinRead the Press Release
CONCORD, NEW HAMPSHIRE –United States Attorney Emily Gray Rice announced today that Jamie Hilow, age 28, of Winchester, New Hampshire was sentenced by United States District Judge Landya B. McCafferty to 135 months in federal prison for conspiracy to distribute one kilogram or more of heroin, in violation of Title 21, United States Code, Sections 846 and 841. The Grand Jury for the District of New Hampshire indicted Hilow for the crime September 23, 2015. Hilow pleaded guilty to the charge on October 27, 2015.
After a lengthy investigation, law enforcement determined that Hilow was employed as a runner for a drug trafficking organization headed, authorities allege, by Ross Gould, age 28, of Richmond, New Hampshire. Hilow distributed heroin for Gould to numerous individuals in and around Keene. On March 16, 2015, Gould was charged federally with possession with the intent to distribute heroin after search warrants executed at his Richmond, New Hampshire residence and another residence utilized by Gould to store narcotics on March 10, 2015 resulted in the seizure of over a kilogram of heroin, a large quantity of cocaine, prescription pills, currency, and 14 firearms.
“The United States Attorney’s Office is committed to working with our local, state and federal law enforcement partners to address the significant presence of heroin in New Hampshire by continuing to target drug trafficking organizations who are responsible for the importation of large quantities of heroin into New Hampshire from source cities such as Lawrence, Massachusetts” stated United States Attorney Emily Gray Rice.
Upon release from the Federal Bureau of Prisons, Hilow will be on supervised release under the supervision of the United States Probation Office for five years and as much as life. Should Hilow violate the terms of his supervised release, he could be sentenced to an additional prison term.
The investigation was conducted by the: (1) Immigration and Customs Enforcement, Homeland Security Investigations; (2) New Hampshire Attorney General’s Drug Task Force; (3) Bureau of Alcohol, Tobacco, Firearms and Explosives; (4) New Hampshire State Police; (5) Keene, New Hampshire Police Department; (6) Richmond, New Hampshire Police Department; and (7) Salem, New Hampshire Police Department. Assistant United States Attorney Jennifer Cole Davis is prosecuting the case.
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Waldorf Man Sentenced to Eight Years in Prison for Distribution of Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Jamaar Davon Brandon, age 24, of Waldorf, Maryland, today to eight years in prison, followed by lifetime supervised release, for distribution of child pornography. Judge Messitte also ordered that upon his release from prison Brandon must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Charles County Sheriff Troy Berry; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, from at least October 2012 through at least June 2015, Brandon used email, cloud storage programs, file sharing programs, internet chat messaging, smartphone messaging applications and other internet-based programs to distribute and receive child pornography.
On October 18, 2012, a website reported to the National Center for Missing and Exploited Children (NCMEC) that one of its users, later identified as Brandon, had uploaded suspected child pornography to the website. A law enforcement review confirmed that a number of the files contained child pornography. A state search warrant was executed at Brandon’s residence and seized among other items, Brandon’s laptop. A forensic review of the laptop found approximately 700 digital files of interest, the majority of which were confirmed to be child pornography and child erotica. some of which portrayed sadistic and masochistic conduct and other depictions of violence. Three of the digital files were videos registered with the NCMEC Child Victim Identification Program, meaning the identities of the child victims portrayed in the videos have been confirmed by law enforcement.
On January 13, 2015, a cloud storage service website reported to NCMEC that 70 digital video files of suspected child pornography had been uploaded to Brandon’s account. After confirming that certain of the files contained child pornography, federal law enforcement obtained a search warrant for Brandon’s residence. On June 23, 2015, the federal search warrant was executed at Brandon’s residence and digital media and electronics were seized. After waiving his rights, Brandon was interviewed by federal agents and admitted that he downloaded and shared child pornography via the internet using a variety of mediums, including email and cell phone messaging applications. The digital media seized during the search contained more than 1,350 images depicting children engaged in sexually explicit conduct. In addition, a review of Brandon’s email and online storage accounts confirmed that Brandon had uploaded and distributed image and video files containing child pornography. Some of the videos and images involved toddler-aged and prepubescent females and some portrayed sadistic and masochistic conduct and other depictions of violence.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Maryland State Police and Charles County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Jennifer Wine and Assistant U.S. Attorney Kristi N. O’Malley, who are prosecuting the case.
Virginia Man Sentenced to 10 Years in Prison for Sex Trafficking 15-Year-Old GirlRead the Press Release
An Annandale, Virginia, man was sentenced today to 10 years in prison to be followed by 10 years of supervised release for sex trafficking of a minor.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office and Colonel Edwin C. Roessler Jr., Chief of the Fairfax County, Virginia, Police Department, made the announcement.
Ismael Antonio Mendez, 20, pleaded guilty on Dec. 29, 2015, to sex trafficking of a minor. Mendez will be required to register as a sex offender.
In connection with his plea, Mendez admitted that from at least November 2014 through February 2015, he and two adult co-conspirators recruited a 15-year-old girl to engage in commercial sex acts to pay off a debt that Mendez owed to one of the co-conspirators. The adults taught the girl how to prostitute, took photos of her to use in ads and created commercial sex ads that were posted on the Internet, he admitted. Mendez admitted that the co-conspirators knew that the girl was a minor and instructed her to lie about her age to customers. According to Mendez’s plea, over a three-month period, the co-conspirators traveled with the girl throughout Virginia, in New York and every state in between for the purposes of advertising and engaging the girl in commercial sex. Mendez admitted that during that time period, the defendants prostituted the girl every day, with an average of 10 to 12 customers a night until she earned enough to repay Mendez’s debt, at which point she was directed to leave the co-conspirators.
Trial Attorney Lauren Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Whitney Dougherty Russell of the Eastern District of Virginia prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Virginia Man Sentenced to 10 Years for Sex Trafficking a 15-Year-Old GirlRead the Press Release
ALEXANDRIA, Va. – Ismael Antonio Mendez, 20, of Annandale, was sentenced today to 120 months in prison and 10 years of supervised release for sex trafficking of a minor. Mendez was also ordered to register as a sex offender upon release from prison.
Mendez pleaded guilty on Dec. 29, 2015. According to court documents, Mendez admitted that from at least November 2014 through February 2015, he and two adult co-conspirators recruited a 15-year-old girl to engage in commercial sex acts to pay off a debt that Mendez owed to one of the co-conspirators. The adults taught the girl how to prostitute, took photos of her to use in ads and created commercial sex ads that were posted on the Internet, he admitted. Mendez admitted that the co-conspirators knew that the girl was a minor and instructed her to lie about her age to customers. According to Mendez’s plea, over a three-month period, the co-conspirators traveled with the girl throughout Virginia, in New York and every state in between for the purposes of advertising and engaging the girl in commercial sex. Mendez admitted that during that time period, the defendants prostituted the girl every day, with an average of 10 to 12 customers a night until she earned enough to repay Mendez’s debt, at which point she was directed to leave the co-conspirators.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Colonel Edwin C. Roessler Jr., Chief of the Fairfax County Police Department, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorney Whitney Dougherty Russell and Special Assistant U.S. Attorney Lauren Britsch prosecuted 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. 1:15-cr-349.
Virginia Man Pleads Guilty to Conspiring to Provide Material Support to ISILRead the Press Release
Joseph Hassan Farrokh, 28, of Woodbridge, Virginia, pleaded guilty today to conspiring to provide material support and resources to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. The plea was accepted by U.S. District Judge Anthony J. Trenga of the Eastern District of Virginia.
The plea was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office.
According to a statement of facts filed with the plea agreement, beginning in or about August 2015, and continuing through Jan. 15, 2016, Farrokh conspired with Mahmoud Amin Elhassan, 25, of Woodbridge, to travel from the United States to Syria in order to fight for, and at the direction of, ISIL. As part of their plan, Farrokh would travel first, followed by Elhassan at a later date. Farrokh and Elhassan spoke in detail about their potential travel, including discussing the different routes each would take to travel to Syria. Farrokh also provided $600 to Elhassan to aid in Elhassan’s future travel to Syria. Both men spoke openly with each other about supporting ISIL and supporting violent jihad, with Farrokh saying on Oct. 2, 2015, that he had no patience and wanted to go right away and “chop their heads.”
According to the statement of facts, in an effort to conceal their plans to support ISIL, Farrokh and Elhassan communicated in a manner in which they thought they could not be detected by law enforcement, such as using apps they believed were safe from law enforcement detection. In the summer 2015, Farrokh and Elhassan talked more seriously about going to join ISIL. When Farrokh and Elhassan discussed ways to reach ISIL, they concluded that they needed someone to help them do so.
According to the statement of facts, from November 2015 through Jan. 15, 2016, Farrokh and Elhassan spoke with other persons they believed would help facilitate their travel to Syria. Two of the individuals Farrokh spoke to were, in fact, sources for the FBI. Over the course of many meetings, the men discussed in detail their travel plans and efforts to avoid law enforcement detection, including having Farrokh shave his beard and to fly out of Richmond International Airport, to avoid what Farrokh believed to be stricter law enforcement scrutiny at larger airports. Farrokh and Elhassan agreed that Farrokh should tell his family that he intended to travel to Saudi Arabia to study.
On Jan. 15, 2016, Elhassan picked up Farrokh at his home in Woodbridge and drove him to Richmond to a location approximately one mile from the airport. Farrokh then took another cab to the airport, checked in for his flight, cleared security and was arrested as he was approaching his departure gate.
Farrokh was charged by criminal complaint on Jan. 16, 2016, and faces a maximum penalty of 20 years in prison when sentenced on July 15, 2016. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The case is being investigated by the FBI’s Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorneys Gordon Kromberg and Dennis Fitzpatrick of the Eastern District of Virginia, along with Trial Attorney D. Andrew Sigler of the National Security Division’s Counterterrorism Section.
Farrokh Plea Agreement
Farrokh Statement of Facts
United States Files Suit Against Savannah River Nuclear Solutions LLC and Fluor Federal Services Inc. Related to Work at the Department of Energy Savannah River SiteRead the Press Release
The Justice Department announced today that the United States has filed a complaint under the False Claims Act in the U.S. District Court for the District of South Carolina against Savannah River Nuclear Solutions LLC (SRNS) and Fluor Federal Services Inc. (FFSI) for allegedly overcharging the Department of Energy under a management and operations contract at the Savannah River Nuclear Site in Aiken, South Carolina. SRNS is a joint venture of FFSI, Newport News Nuclear Inc. and Honeywell International.
The case is captioned United States v. Savannah River Nuclear Solutions and Fluor Federal Services, Inc., 1:16-825-JMC (D.S.C). The claims asserted in the United States’ complaint are allegations only, and there has been no determination of liability.
Two Mexican Nationals Charged with Conspiracy to Provide and Obtain Forced LaborRead the Press Release
Two Mexican nationals, who were working in the Homestead, Florida area and elsewhere, have been charged by indictment with participating in a conspiracy to provide and obtain forced labor.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.
Agustin Mendez-Vazquez, 43, and his son, Ever Mendez-Perez, 23, both originally of Mexico, were charged by indictment with one count of conspiracy to provide and obtain forced labor, in violation of Title 18, United States Code, Section 1594(b). Agustin Mendez-Vazquez was also charged with one count of providing and obtaining forced labor, in violation of Title 18, United States Code, Section 1589(a). If convicted, Agustin Mendez-Vazquez faces a statutory maximum term of imprisonment of 40 years. Ever Mendez-Perez faces a statutory maximum term of imprisonment of 20 years.
According to court records, Agustin Mendez-Vazquez and Ever Mendez-Perez, who work as unlicensed labor subcontractors on tomato farms in the Homestead area, utilized physical force, threats of physical force, threats of deportation, and debt bondage to maintain control over other migrant workers. Workers under the defendants’ control were beaten if they did not work every day; were subjected to harassment and abuse; and were required to relinquish large portions of their paychecks – sometimes their entire paychecks – to the Mendezes. The defendants are currently being held without bond pending trial.
Mr. Ferrer commended the investigative efforts of ICE-HSI. The case is being prosecuted by Assistant U.S. Attorney Benjamin Widlanski.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty.
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.
Two Men Sentenced to Prison Terms for Murder of Man in Southwest WashingtonRead the Press Release
WASHINGTON – Dominique Holmes, 25, and Gregory Smithwick, 23, both of Washington, D.C., were sentenced today to prison terms of 28 years and six years, respectively, after earlier pleading guilty to charges stemming from the murder of a man in Southwest Washington, U.S. Attorney Channing D. Phillips announced.
Both men pled guilty in January 2016 in the Superior Court of the District of Columbia. Holmes pled guilty to one charge of second-degree murder while armed as well as a charge of armed robbery in an unrelated case. Smithwick pled guilty to acting as an accessory after the fact to armed carjacking in a crime leading up to the murder.
The guilty pleas, which were contingent upon the Court’s approval, called for prison sentences of between 25 and 30 years for Holmes and between five and eight years for Smithwick. The Honorable Lynn Leibovitz accepted the pleas and sentenced the defendants accordingly. Upon completion of their prison terms, the men will be placed on five years of supervised release.
According to the government’s evidence, on Oct. 10, 2014 at approximately 6:30 a.m., Holmes carried out a carjacking in the 2000 block of 37th Street SE. Holmes picked up Smithwick almost immediately after the carjacking. Smithwick got into the driver’s seat and drove away, helping Holmes escape from the area. Approximately 40 minutes after the carjacking, Holmes arrived in the carjacked vehicle in the 100 block of Ivanhoe Street SW. Holmes went up to the apartment unit of the victim, Ricky Kelly. Mr. Kelly, 29, was about to take his children to school, and they were in his car parked just outside of the apartment building. Mr. Kelly was alone inside the apartment. Holmes shot Mr. Kelly nine times with a 9mm handgun inside his apartment. He and Smithwick then fled the scene in the carjacked vehicle.
Shortly after the murder, the carjacked vehicle was spotted, and Smithwick and Holmes led officers on a high-speed chase that ended near Alabama Avenue and 32nd Place SE. Holmes and Smithwick were both immediately arrested.
The armed robbery charge stems from an attack carried out by Holmes early Sept. 27, 2014, in the area of 41st Street and Alabama Avenue SE. The victim was walking toward his parked car. Holmes, who was carrying what appeared to be a firearm, approached the man and demanded that he empty his pockets. The victim turned over his iPhone, some cash, and the keys to the vehicle. Holmes then drove away in the car with the victim’s belongings.
In announcing the sentences, U.S. Attorney Phillips commended the work of the detectives, officers, and others who investigated the case from the Metropolitan Police Department. He also expressed appreciation to the District of Columbia Office of the Medical Examiner. Finally, he acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Lashone Samuels; Victim/Witness Advocates M. Laverne Forrest, Wanda Queen, and Marcia Rinker; Investigative Analyst Zachary McMenamin; Assistant U.S. Attorneys Stephen Rickard and Lauren Bates, who provided appellate guidance, and Assistant U.S. Attorneys Kendra Briggs, Richard DiZinno, and Jeffrey Nestler, who prosecuted the case.
Two Former FedEx Hub Employees, New York Co-Conspirator Plead Guilty in Million-Dollar Shipping Theft SchemeRead the Press Release
Memphis, TN – Two former FedEx employees and a New York co-conspirator who partook in a shipping theft scheme that defrauded FedEx and wireless carriers of more than $1.7 million have pleaded guilty. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the pleas today.
The three defendants are Akeem Gowdy, 23; and Tavaris Mickens, 23; both of Memphis, Tennessee; and Juan Royal, 24, of New York City, New York.
In October 2015, the three defendants, along with two other co-conspirators — Christopher T. Crawford, 31, of Memphis; and Jordan West, 27, of New York City — were indicted for engaging in a conspiracy to commit interstate shipping theft of wireless mobile devices from both Verizon and AT&T. The mobile devices were being shipped throughout the United States by FedEx.
Gowdy, Mickens and Crawford were employed with FedEx during the scheme’s duration. They used fraudulent FedEx corporate shipping labels to over-label boxes of wireless devices. These boxes were diverted to other known and unknown co-conspirators in New York City and other cities through interstate commerce. Each box of merchandise contained thousands of dollars worth of Verizon and/or AT&T wireless mobile devices.
As part of the fraud, Crawford and West sent $10,000 in U.S. currency via FedEx to one another. In mid-2013, Crawford also contacted a FedEx vendor call center in Tucson, Arizona to set up a fraudulent corporate shipping meter account via his wireless mobile telephone.
Each of the defendants knew the wireless devices were stolen when they engaged in acts to perpetrate the crime. Ultimately, the interstate shipping theft scheme defrauded FedEx and the wireless carriers of more than $1.7 million.
On Thursday, March 17, 2016, Royal, Gowdy and Mickens each pled guilty before U.S. District Judge John T. Fowlkes Jr. to one count of interstate shipping theft.
All three defendants are scheduled to be sentenced on Friday, July 8, 2016. Each defendant faces up to 10 years when sentenced. They also face individual fines of up to $250,000.
The case is being investigated by the United States Secret Service, Federal Bureau of Investigations, and Memphis Cargo Theft Task Force.
Assistant U.S. Attorney Damon K. Griffin is prosecuting this case on the government’s behalf.
Three Charged in Arson Fraud Scheme Involving Seven Sacramento Area Commercial BuildingsRead the Press Release
SACRAMENTO, Calif. — Three Sacramento-area men have been charged in a 60-count indictment for a scheme to commit multiple arsons for profit, United States Attorney Benjamin B. Wagner announced.
The indictment returned by a grand jury on February 25, 2016, and unsealed today, charges Jamal M. Shehadeh, 57, of Sacramento, with all counts: seven counts of arson, 52 counts of mail and wire fraud, and one count of money laundering. Brian J. Stone, 57, of Elk Grove, is charged with 13 counts of mail fraud or wire fraud, and Saber A. Shehadeh, 73, of Sacramento, is charged with three counts of mail fraud. As a result of the scheme, the defendants and their associates received over $1.5 million in insurance proceeds.
According to court documents, the defendants participated in an arson fraud scheme that ran from at least December 2009 through September 2013, involving seven fires at six commercial buildings in Sacramento and Carmichael. Jamal Shehadeh owned and operated various businesses, many of which burned in commercial structure fires. Saber Shehadeh owned Tru Value Market and a nearby corner property, which were destroyed in two of the fires. Brian Stone provided business consultant services that included assisting with the insurance claims.
The dates and locations of the fires are as follows:
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1007 E Street and 427 10th St., Sacramento — December 27, 2009
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511 Broadway, Sacramento — June 9, 2010
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427 10th St., Sacramento — August 15, 2010
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6964 65th St., Sacramento — April 23, 2012
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5725 Marconi Avenue, Carmichael — September 24, 2012
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910 University Avenue, Sacramento — October 15, 2012
- 2764 Fulton Avenue, Sacramento — June 16, 2013
According to the indictment, Jamal Shehadeh and others working with him and at his direction obtained insurance policies that covered fire damage for businesses owned and controlled by the defendants and their associates. In some cases, false statements were made to insurance representatives in order to obtain insurance coverage. Once Jamal Shehadeh knew that insurance policies existed, he deliberately set fires or caused fires to be set that damaged the businesses and at least one vehicle.
According to the indictment, after the properties were destroyed and damaged by fire, the defendants submitted insurance claims. Those claims contained false statements regarding the amount, cost, value, and true ownership of property damaged and destroyed in a particular fire, as well as the prior income of the business, the amount of lost business income, and whether a business had reopened.
As part of the scheme, the defendants made false statements regarding the identity of the company doing the post-fire cleanup, the relationship between the insured and the company doing the cleanup, the actual cost of the cleanup, and whether other companies had been consulted to do the cleanup work and had submitted bids and estimates. In some cases, the defendants used a company that Jamal Shehadeh controlled for the cleanup, while misrepresenting to the insurance companies that it was a third-party company.
In furtherance of the scheme, the defendants personally, and through their associates and companies and accounts that they controlled, received insurance proceeds from the insurance companies.
This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation with assistance from the Sacramento Metropolitan Fire District and the City of Sacramento Fire Department. Assistant United States Attorneys Michael D. Anderson and Christopher S. Hales are prosecuting the case.
If convicted, the defendants face the following possible penalties: The maximum statutory penalty for mail fraud or wire fraud is 20 years in prison and a $250,000 fine. The statutory penalty for arson of property used in commerce is five to 20 years in prison and a fine up to $250,000. There is a mandatory minimum sentence of 10 years in prison for the first count of arson to commit a federal felony, a mandatory 20 years in prison consecutive to any other sentence for each subsequent count and a fine of up to $250,000. The maximum statutory penalty for money laundering is 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
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St. Croix Man Sentenced to Nine Months in Prison for Possession with Intent to Distribute MarijuanaRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez sentenced on March 17, 2016, Alva Nicholas, 57, to nine months’ imprisonment and five years of supervised release for possession with intent to distribute marijuana, United States Attorney Ronald W. Sharpe announced. Judge Gomez also ordered Nicholas to pay a $100 special assessment.
On November 4, 2015, Nicholas pleaded guilty to possession with intent to distribute marijuana. According to the plea agreement filed with the court, Nicholas was arrested by Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) agents at the Cyril E. King Airport on St. Thomas, U.S. Virgin Islands, after his arrival on American Airlines flight 2379. Agents were conducting a screening of bags arriving at the airport when they detected an anomaly inside a suitcase bearing Nicholas’s name and flight tag. After further inspection, agents found 3.4 kilograms of marijuana wrapped in plastic inside his suitcase. The bag was then repackaged and placed on the conveyor belt. Nicholas was taken into custody after he collected the suitcase from the conveyor belt. He had previously been convicted of heroin smuggling and sentenced to 10 years’ incarceration.
This case is the result of a joint investigation by HSI and U.S. Customs and Border Protection. It was prosecuted by Assistant United States Attorney Delia Smith.
Saco Man Sentenced to over Four Years for Pharmacy RobberyRead the Press Release
Contact: Jonathan R. Chapman
Assistant United States Attorney
Tel: (207) 780-3257
Portland, Maine: United States Attorney Thomas E. Delahanty II announced that William C. Day, 40, of Saco, Maine was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to 51 months in prison and three years of supervised release for pharmacy robbery. Day pleaded guilty to the charge on November 20, 2015.According to court documents, on August 10, 2015, Day entered the Community Pharmacy on Main Street in Saco, vaulted the counter at the back of the store and demanded that employees give him narcotic drugs. Officers of the Saco Police Department responding to a silent alarm spotted Day running away from the pharmacy with the drugs and chased him to a location near School Street. There, the officers arrested Day and recovered most of the stolen drugs.
The investigation of the case was conducted by the Saco Police Department and the Federal Bureau of Investigation.
Rockford Man Sentenced for Illegally Possessing a FirearmRead the Press Release
ROCKFORD — A Rockford man was sentenced today in federal court by U.S. District Judge Frederick J. Kapala for illegally possessing a firearm as a convicted felon.
CLIFFORD HORTON, 28, of Rockford, Ill., was sentenced to 86 months in federal prison, to be followed by 3 years of supervised release. Horton pleaded guilty to the charge on Dec. 15, 2015, and admitted that on Nov. 4, 2014, having previously been convicted as a felon, he possessed a Taurus .380 caliber pistol.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Jeffery Magee, Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives; Gary Caruana, Winnebago County Sheriff; and, Patrick Hoey, Interim Chief of the Rockford Police Department.
The government was represented by Assistant U.S. Attorney Scott R. Paccagnini.
Richmond, New Hampshire Man Pleads Guilty to Causing Misbranded Drugs to Be Introduced into Interstate CommerceRead the Press Release
CONCORD, N.H. –United States Attorney Emily Gray Rice announced that Panos Eliopoulos, age 37, of Richmond, New Hampshire, pleaded guilty before United States Magistrate Judge Andrea K. Johnstone to causing misbranded drugs to be introduced into interstate commerce.
Eliopoulos and his wife, Katie Eliopoulos, have operated the retail establishment, “Phat Stuff”, located at 84 Main Street, Keene, New Hampshire since 2011. In July, 2013, the United States Drug Enforcement Administration (DEA) received information that drug paraphernalia and smokeable synthetic cannabinoid products, commonly known as “spice”, were being sold from Phat Stuff. In August 2013 a DEA agent visited the store and observed a glass display case which contained numerous foil packages marked with various names which the DEA SA believed, based his training and experience, contained synthetic cannabinoids.
As a result of the DEA SA’s observations, on August 9, 2013 a DEA cooperating source (CS), acting at the direction of DEA, entered Phat Stuff and purchased four packets of a substance labeled “Griffon” from an employee of the defendant. Agents examined a packet of “Griffon” and concluded that it was misbranded in that: (1) the product was sold as potpourri when in fact the product was intended for use as a drug for human consumption; (2) its label, in package form, failed to include the name and address of the manufacturer, packer, or distributor; (3) its labeling did not bear adequate directions for use; and (4) its labeling did not bear such adequate warnings against use in those pathological conditions and by children, where its use may be dangerous to health, and against unsafe dosages and methods and duration of administration and application, in such manner or form, as are necessary for the protection of users. The DEA laboratory subsequently identified the substances as PB- 22, which at the time was an analogue of JWH-018, a Schedule I controlled substance.
As part of the plea agreement, Eliopoulos agreed to civilly forfeit to the United States the amount of $10,729.59 as well as a quantity of drug paraphernalia that was seized as part of the search. Eliopoulos is scheduled to be sentenced on June 14, 2016. The plea agreement contains a binding stipulation that the United States will recommend a sentence of one year probation. Eliopoulos was released pending sentencing.
The investigation was conducted by the: United States Drug Enforcement Administration and the Keene, New Hampshire Police Department. Assistant United States Attorney Jennifer Cole Davis is prosecuting the case.
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Republic Woman, Lee's Summit Man Plead Guilty to Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Republic, Mo., woman and a Lee’s Summit, Mo., man have pleaded guilty in federal court to their roles in a conspiracy to distribute large quantities of methamphetamine in Greene, Polk, Christian, Jasper, Laclede and Webster counties.
Kenna Harmon, 37, of Republic, and Carlos Tapia, 41, of Lee’s Summit, pleaded guilty in separate appearances before U.S. District Judge M. Douglas Harpool on Thursday, March 17, 2016.
Harmon pleaded guilty to being a leader, along with her husband, Daniel Harmon, in the drug-trafficking conspiracy as well as a money-laundering conspiracy and to being a felon in possession of a firearm. In total, the Harmon drug-trafficking organization was responsible for the distribution of over 45 kilograms of methamphetamine from June 1, 2013, through Nov. 29, 2014.
Tapia pleaded guilty to his role in the drug-trafficking conspiracy. Tapia admitted that he provided large amounts of methamphetamine to conspirators. Tapia provided approximately 10 pounds of methamphetamine every two weeks during the time of the conspiracy, to individual members of the conspiracy.
Beginning in 2012, the Drug Enforcement Administration, assisted by other agencies, investigated a large-scale methamphetamine distribution network in southwest Missouri involving several sources of supply. The Harmons obtained pound amounts of methamphetamine from sources in Kansas City and St. Louis, Mo., and in Oklahoma for distribution in the Springfield area.
In December 2013, Daniel Harmon was stopped by law enforcement officers outside of St. Louis. During a search of his vehicle, officers discovered approximately four pounds of methamphetamine, $60,000 and a handgun. Daniel Harmon was indicted in the Eastern District of Missouri and pleaded guilty to possessing methamphetamine with the intent to distribute and to being a felon in possession of a firearm.
After Daniel Harmon’s arrest and incarceration, Kenna Harmon continued to lead the drug-trafficking organization in its distribution of methamphetamine. Kenna Harmon directed the organization to purchase large amounts of methamphetamine from various sources of supply and provided distributive amounts of methamphetamine to co-defendants. Kenna Harmon, in order to distribute the large amount of methamphetamine that she was responsible for selling, stored methamphetamine in several residences in Greene and Polk Counties, and directed several individuals to assist in maintaining those residences.
On Nov. 27, 2014, Kenna Harmon was stopped in her blue BMW 545i while traveling in Springfield. During a search of Kenna Harmon’s vehicle, officers discovered a small amount of methamphetamine, $4,604 and marijuana, all of which was found on either her person or within the vehicle. A search warrant was executed at her residence the same day, where agents found approximately $20,000, approximately 5 ½ pounds of methamphetamine and a loaded Jennings .22-caliber pistol (in a nightstand in her bedroom).
Under the terms of her plea agreement, Kenna Harmon must forfeit to the government the house she was building in Halfway, Mo. Kenna Harmon paid approximately $324,185 in cash for the construction of the residence, which was from drug-trafficking proceeds. The proceeds were paid in installments to a local building contractor that Kenna Harmon hired. She told the contractor that she had inherited the cash, which was not true. She used the property to promote her continued sale of methamphetamine by storing methamphetamine at the residence. Harmon must also forfeit a firearm, five vehicles used by the conspiracy to distribute methamphetamine, jewelry purchased with drug proceeds and approximately $61,000.
Under federal statutes, Kenna Harmon is subject to a mandatory minimum sentence of 20 years in federal prison without parole due to her prior felony conviction for drug trafficking, up to a sentence of life in federal prison without parole. Tapia is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole.
The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Randall D. Eggert, Nhan D. Nguyen and Cynthia J. Hyde. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Missouri State Highway Patrol, the Springfield, Mo., Police Department and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Postal Employee Indicted for Theft of More Than $2 Million in Social Security ChecksRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Stacy Darnell Mitchell (48, Tampa) with theft of government property and theft of mail. If convicted on all counts, he faces a maximum penalty of 15 years in federal prison.
According to the indictment, between in or about January 2012 and in or about October 2012, Mitchell stole Social Security benefits checks worth more than $1,000 from the mail. Richard Lee Anderson, an accomplice of Mitchell who received the checks, recently pleaded guilty to related charges. According to Anderson’s plea agreement, he received benefit checks totaling at least $2,275,000 during the relevant time period. Mitchell worked at the Processing and Distribution Center facility in St. Petersburg.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Social Security Administration - Office of the Inspector General, the U.S. Postal Service - Office of Inspector General, the U.S. Postal Inspection Service, and the Tampa Police Department. It will be prosecuted by Assistant United States Attorney Patrick Scruggs.
Philadelphia Woman Charged with Straw Purchasing FirearmsRead the Press Release
PHILADELPHIA - Sabrina Brooks, 34, of Philadelphia, PA, was charged by indictment, filed yesterday, with making false statements to a federal firearms licensee and aiding and abetting possession of a firearm by a convicted felon, announced United States Attorney Zane David Memeger. According to the indictment, on October 13, 2015, Brooks purchased two firearms for Nathan Manning, a convicted felon who is charged elsewhere. Brooks also made false statements to a federal firearms licensee in purchasing the firearms: a .380 caliber Magnum Research, Micro Desert Eagle, semi-automatic handgun and a nine-millimeter Ruger, Model SR9, semi-automatic handgun.
If convicted, Brooks faces a maximum statutory sentence of 15-years in prison, up to three years of supervised release, a fine of up to $500,000, and a $200 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney José Arteaga.
Petaluma Slaughterhouse Employee Sentenced for Scheme to Distribute Adulterated MeatRead the Press Release
SAN FRANCISCO – Felix Sandoval Cabrera, the kill floor foreperson at the now-defunct Rancho Feeding Corporation in Petaluma, was sentenced today for his role in a scheme to distribute adulterated, misbranded, and uninspected meat, announced Acting United States Attorney Brian J. Stretch and Special Agent in Charge of the Western Region of the U.S. Department of Agriculture (USDA), Office of Inspector General, Investigations, Lori Chan.
Cabrera, 56, of Santa Rosa, was sentenced by U.S. Senior District Judge Charles R. Breyer to three months’ imprisonment, to be followed by two years of supervised release, conditions of which include three months of home confinement, and a $1,000 fine.
Cabrera was charged along with Rancho Feeding’s owner Jesse Amaral, 78, of Petaluma and Eugene Corda, 66, of Petaluma, with distribution of adulterated, misbranded, and uninspected meat, in violation of the Federal Meat Inspection Act (FMIA), 21 U.S.C. §§ 610(c) & 676(a), conspiracy to commit the same, in violation of 18 U.S.C. § 371, and conspiracy to commit mail fraud, in violation of 18 U.S.C. § 1349. For his part in the scheme, a fourth defendant, Robert Singleton, 79, owner of Petaluma-based Rancho Veal Corporation, was charged in a separate information on August 18, 2014, with one count of distributing adulterated, misbranded, and uninspected meat in violation of the FMIA.
On November 26, 2014, Cabrera pleaded guilty to one count of conspiracy to distribute adulterated, misbranded and uninspected meat. As part of his plea agreement, Cabrera admitted he directed other kill floor employees to carve “USDA Condemned” stamps out of carcasses of condemned cattle and to process the carcasses for transport, sale, and distribution. Cabrera further acknowledged placing heads from apparently healthy cows next to the carcasses of cows showing signs of “cancer eye” in an effort to circumvent government meat inspection procedures, and then processing the uninspected cattle for transport, sale, and distribution.
Amaral, Corda, and Singleton have each pleaded guilty and acknowledged their separate roles in the scheme. Each has been sentenced by Judge Breyer. Amaral pleaded guilty to FMIA conspiracy on February 18, 2015. Judge Breyer sentenced him to 12 months and one day of imprisonment for leading the conspiracy. Corda, Rancho’s yardman, pleaded guilty to one of the underlying distribution counts, admitting that he knowingly switched uninspected cancer eye cattle with inspected, healthy cattle as part of a scheme to circumvent USDA inspection procedures. Judge Breyer sentenced Corda to three years’ probation, including six months of home detention. Singleton pleaded guilty to the information, admitting that he participated in a scheme by which Rancho employees were instructed to carve “USDA Condemned” stamps out of cattle carcasses, to conceal from USDA inspection cows showing signs of cancer eye by switching the diseased heads with healthy heads, and to process the adulterated and uninspected carcasses for human consumption. Judge Breyer sentenced Singleton to three months’ imprisonment, to be followed by one year of supervised release, conditions of which include three months of home confinement and fifty hours of community service.
Cabrera’s sentence was a result of the United States’ motion for downward departure based on his cooperation, pursuant to U.S.S.G. § 5K1.1. Judge Breyer set a self-surrender deadline of September 2, 2016.
Assistant U.S. Attorney Hartley M.K. West prosecuted this case with the assistance of Rosario Calderon and Bridget Kilkenny. The prosecution is the result of an investigation by agents of the USDA’s Office of Inspector General, Investigations and USDA’s Food Safety Inspection Service, Office of Investigation, Enforcement and Audit, Compliance and Investigations.
Pearl River Man Indicted for Illegal Possession of FirearmsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that STEVEN LONG, age 30, of Pearl River, was indicted today for illegally possessing five firearms in his home on March 10, 2016, after having previously been convicted of three narcotics felonies in St. Tammany Parish.
LONG faces a maximum sentence of ten years in prison, a $250,000 fine, and three years of supervised release if convicted.
The Indictment is a product of an ongoing investigation by the United States Attorney’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the St. Tammany Parish Sheriff’s Office.
U. S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the ATF, with assistance from the St. Tammany Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Myles Ranier is in charge of the prosecution.
Participant in Advance Fee Fraud Scheme Sentenced to 5 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that ALEXANDER D. HURT, also known as “Alex Hurt” and “Alex Dante,” 45, of Scottsdale, Ariz., formerly of Massachusetts, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 60 months of imprisonment, followed by three years of supervised release, for his role in an advance fee fraud scheme that victimized more than 40 individuals who lost a total of more than $4.5 million. HURT also was ordered to perform 250 hours of community service while on supervised release.
On December 22, 2014, a grand jury returned an 11-count indictment charging HURT and David C. Jackson, also known as “C. David Manns,” “Charles Jackson” and “Andrew D. Smithson,” with one count of conspiracy to commit wire fraud and multiple counts of wire fraud. The indictment also charged Hurt with one count of making a false statement to federal law enforcement. On September 29, 2015, a jury returned a verdict of guilty on all counts.
According to the evidence presented during the trial, in approximately September 2009, Jackson, using the alias “C. David Manns,” established Jalin Realty Capital Advisors, LLC, using a business address in Dayton, Ohio. In 2011, Jackson changed the name of his business to American Capital Holdings, LLC, using business addresses in Pittsburgh, Pennsylvania. Soon after changing the business name, Jackson began introducing himself to victim clients as “Charles Jackson” and then also used the name “Andrew Smithson” to prevent victims from learning his true identity and the true nature of his background and his scheme.
HURT held himself out as Vice President of Brightway Financial Group, LLC, a company that used a business addresses in Grapevine, Texas. As established during the trial, HURT used his background as a pastor with a Brockton, Massachusetts church to gain the confidence of a number of victims who lost money in the scheme. When meeting with victims, HURT represented himself to be the decision maker with respect to whether or not the individuals would get loans for their business. HURT’s representations, like the loans themselves were entirely fraudulent.
Working together Jackson and others, HURT defrauded individuals, including Connecticut residents, out of millions of dollars. In anticipation of receiving large business loans that HURT represented he could deliver, the victims wired funds to Jackson, HURT and certain escrow accounts that they had set up. The upfront fees were alternately described as “application fees,” “collateral fees” or “commitment fees.” The victims were promised that the fees were totally refundable, and the victims were told by HURT and others that they would be provided a refund of the upfront fees if their loan transactions were not completed.
In order to convince victim-borrowers that the loans were legitimate and that Jalin and ACH had successfully secured loans in the past, Jackson provided victims and potential victims the name and phone number of a co-conspirator and told them that they could contact her for a reference. After she was contacted, the co-conspirator falsely represented to victims and potential victims that she had, in fact, received funding from Jackson for a construction loan, and that she had successfully done a project financed with her co-conspirator and Jalin.
Through this scheme, more than 40 individuals provided Jackson and HURT with more than $4.5 million in advance fees and funds that were to be held in escrow for business loans that were never provided. Some of the individuals received partial refunds of the advance fees they had provided, but the refunds were made using fees that had been paid by other victims in a Ponzi-like scheme.
HURT previously served as Pastor at the Dominion Christian Church in Brockton, Mass. As established in court, HURT moved money generated through the scheme through church accounts and used the proceeds for himself and his family.
HURT was ordered to pay restitution in the amount of $2,255,000
On February 8, 2016, Jackson was sentenced to 205 months of imprisonment.
Jackson was previously convicted in the Western District of Pennsylvania of federal bank fraud and money laundering offenses in October 2006 and was sentenced to 41 months in prison, followed by five years of supervised release. He was released from federal prison in September 2009 and operated this advance fee fraud scheme while on supervised release.
This matter was investigated by the Federal Bureau of Investigation and the Ansonia Police Department, and was prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Michael S. McGarry.
Pair of Friends Charged in Scheme to Defraud Distressed HomeownersRead the Press Release
PHILADELPHIA – An indictment, unsealed today, charges two friends, Daniel Sheehan, 41, of Gloucester City, NJ, and John Hoban, 42, of Bellmawr, NJ, in a scheme to defraud distressed homeowners seeking help out of more than $400,000, announced United States Attorney Zane David Memeger. The pair is charged with wire fraud conspiracy and eight counts of wire fraud. Sheehan is additionally charged with 18 wire fraud counts and one count of interstate transport of stolen property. As a result of the alleged scheme, more than 110 people were defrauded, several of whom lost their homes.
According to the indictment, between September 2012 and February 2015, Sheehan, a mortgage modification professional, represented to a dozen clients that he could help them modify their mortgages through the Home Affordable Mortgage Program (“HAMP”) or the Home Affordable Refinance Program (“HARP”). Instead, it is alleged, Sheehan: took fees from his clients without ever submitting the loan modification paperwork he promised; deceived his clients by representing to them that he had secured a new mortgage for them; directed many of his clients to make their mortgage payments to him until their new loan paper work arrived; had Hoban pretend to be a bank representative to lull the client into a false sense of security; and used his clients’ mortgage payments for his own purposes rather than that for which those payments were intended. Several of Sheehan’s clients’ homes went into foreclosure and at least two went to Sheriff’s sale.
According to the indictment, LS, who owned a home in Northfield, NJ, contacted Sheehan after he lost his job and couldn’t make his mortgage payments. LS and his wife had lived in the home for years and had raised their children there. In August of 2013, Sheehan told LS that he could get him a loan modification that would reduce both his principal and his interest rate. LS paid Sheehan his requested fee of $1,700. In February of 2014, Sheehan informed LS that he saw LS’s offer and that LS should have it in his hands in the next 24 to 48 hours. Although LS’s house was scheduled to be sold as a Sherriff’s sale on several occasions, Sheehan allegedly reassured LS that he would take care of it. In May of 2014, a man came to LS’s and told LS that he was going to purchase the house at Sherriff’s sale. When LS told Sheehan, Sheehan instructed LS to ignore the man. On July 1, 2014, Sheehan told LS that the modification had been approved, that his house had not been sold, and presented him with an agreement to sign. He told LS that he would have to make trial payments of $1,525.55 for the next three months and he instructed LS to make the payments out to him and that he would place the payments in an escrow account. In September of 2014, Sheehan allegedly gave LS a document that purported to be an order from a judge allowing LS to stay in his home until September 23, 2105. On November 5, 2014, LS appeared in court where he learned from the judge that the document provided to him by Sheehan was a forgery. On November 5, 2014, LS and his family were physically evicted from their home.
In another instance, according to the indictment, when a client of Sheehan’s started receiving foreclosure notices from her bank, Sheehan told her that a representative with the new mortgagor would resolve the issue. Sheehan then, it is alleged, had Hoban pose as that bank representative, convincing the homeowner that the foreclosure notice would be “frozen” and that she would receive a packet from the new bank in 30 days. Meanwhile, no application for a loan modification had ever been filed on that homeowner’s behalf.
“This type of mortgage fraud is very personal. The defendants cheated their homeowner victims out of hundreds of thousands of dollars by preying on their emotional and financial vulnerabilities,” said Memeger. “The financially struggling victims viewed the defendants as life savers who would help them preserve their most valuable investment -- their homes. Instead, the defendants betrayed their victims, sank them into deeper debt, and, in some cases, left them homeless.”
“It’s hard to overstate the cruelty displayed by these defendants,” said FBI Special Agent-in-Charge William F. Sweeney, Jr. “Portraying themselves as white knights who would help families keep their homes, pocketing their money – knowing, all the while, their unsuspecting victims would soon be homeless. Their actions are unconscionable.”
It is further alleged that between April 2014 and February 2015, Sheehan transported, transmitted, and transferred in interstate and foreign commerce, goods, wares, securities, and money of the value of $5,000 or more, taken by fraud.
If convicted, each defendant faces a maximum statutory sentence of 20 years in prison, possible fines, and up to three years of supervised release. Sheehan would be required to pay a $2,900 special assessment; Hoban, a $900 special assessment. A notice of forfeiture for $470,000 is also attached.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Paul Shapiro.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Owner of Axis Benefits Administrators Pleads Guilty to Theft of $3 Million Dollars from Health Care Reimbursement Trust Account FundsRead the Press Release
Portland, Ore. – Darrin Bottinelli, 45, of Portland, Oregon, pled guilty Thursday, March 17, 2016, before U.S. District Judge Robert E. Jones to one count of theft in connection with health care. Bottinelli admitted in his plea agreement that between 2009 and 2014 he stole approximately $3 million dollars from individual health reimbursement accounts (HRAs) under management by his company, Axis Benefit Administrators, Inc., also known as AXIS Health Partners.
Bottinelli served as the sole shareholder, officer and director of Axis, which held its principle place of business in Portland. Axis administered employee health reimbursement or flexible spending accounts for their client employers. According to Axis contracts with employers, Axis pledged to post employer contributions to trust accounts for employee plan participants. These plan participants could then seek reimbursement for eligible health expenditures from their account funds.
Between 2009 and 2014,the defendant improperly and repeatedly accessed trust account funds for his own personal use. On March 19, 2014, Bottinelli abruptly closed the Axis office without any communication to client employers or plan participants. As a result, approximately four thousand plan participants were unable to access their account funds. Individual victim losses range from $22,500 to less than $10.
The maximum sentence for theft in connection with health care is ten years of imprisonment, a $250,000 fine, and three years of supervised release. Sentencing is currently scheduled for September 14, 2016.
This case was investigated by the U. S. Department of Labor, Employee Benefits Security Administration, the Federal Bureau of Investigation, and the U. S. Department of Labor – Office of Inspector General. The case is being handled by Assistant United States Attorney Donna Brecker Maddux.
Owner of Long Island Produce Distributor Convicted at Trial of Embezzling Money from Company Profit Sharing PlanRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today the conviction after trial of THOMAS HOEY, JR. for embezzling nearly all of the assets of his company’s profit sharing plan and defrauding the plan participants. HOEY, the owner and president of a Long Island based produce distributor (the “Company”), and trustee for the Company’s profit sharing plan (the “Plan”), an employee benefit plan set up for the benefit of the Company’s employees, transferred over $750,000 from the Plan to the Company’s corporate accounts. HOEY then unlawfully used the money to cover significant negative balances in the Company’s accounts, to purchase, among other things, hundreds of thousands of dollars of produce for the Company, and for hundreds of thousands of dollars of HOEY’s personal expenses. HOEY was convicted after a four-day jury trial before Judge Paul A. Engelmayer.
U.S. Attorney Preet Bharara said: “Thomas Hoey Jr. made real what is the nightmare of any hardworking employee: the theft of a company-sponsored pension plan. As the jury found in convicting him today, Hoey stole virtually all of his employees’ retirement plan money, and spent it himself on international travel, limousine service, and luxury Manhattan hotels. Thanks to the efforts of our law enforcement partners at the Department of Labor and Internal Revenue Service, Hoey will now receive just punishment for his crimes.”
According to the allegations contained in the Indictment as well as the evidence presented during trial:
The Plan was set up as an employee pension benefit plan under the Employee Retirement Income Security Act of 1974 (“ERISA”), for the benefit of certain employees of the Company. As an ERISA qualified pension plan, there were strict statutory and regulatory limitations on the use of money contributed to the Plan. In particular, Plan proceeds could only be used to pay for employee disbursement and employee loans, which, in no circumstances, could be greater than $50,000. Moreover, the Company, which was the sponsor for the loan, was not allowed to receive any money from the Plan.
Between June 2009 and July 2012, however, the defendant transferred almost all of the assets in the Company’s Plan to corporate accounts that HOEY controlled. Specifically, in three transactions on one day in June 2009, the defendant transferred $350,000 from the Plan to the Company’s corporate bank account. In May 2010, the defendant transferred $415,000 from the Plan to the Company’s corporate bank account. And finally, in July 2012, the defendant transferred $73,000 from the Plan to the Company’s corporate bank account. As a result of these withdrawals from the Plan as well as fees on the account, the Plan, which at one point was worth over $900,000 in employee benefits, was almost entirely depleted.
The Plan money was transferred to corporate accounts to cover significant negative balances as well as for additional corporate expenses and HOEY’s personal expenses. For example, hundreds of thousands of dollars of Plan money was used to pay invoices from the Company’s produce suppliers. Plan money was also used to pay for automobile insurance on a policy that covered, among other vehicles, numerous luxury cars that HOEY used for his personal use. During the period of time that HOEY was using Plan money to fund the Company’s corporate accounts, the corporate accounts were also being used to pay for HOEY’s personal expenses, including international travel for HOEY and his family, limousine service, and hotels in Manhattan.
In order to cover up HOEY’s embezzlement of Plan assets, HOEY caused plan statements to be created that reflected the employees’ full account balances as if no money had been taken out of the Plan. A 2012 account statement for one employee, for example, reflected an individual benefit total of approximately $140,000. At that time, however, the total amount of money left in the Plan was only approximately $15,000.
* * *
HOEY, 48, of Garden City, New York, was convicted of one count of embezzlement from an employee pension plan, which carries a maximum sentence of five years in prison; one count of interstate transportation of stolen money, which carries a maximum sentence of 10 years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; and one count of money laundering, which carries a maximum sentence of 10 years in prison. HOEY will be sentenced on July 19, 2016, at 10:00 a.m. before Judge Paul A. Engelmayer.
Mr. Bharara praised the work of the DOL and IRS.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Kristy J. Greenberg and Daniel B. Tehrani are in charge of the prosecution.
Organizer of Bank Fraud Scheme that Used Information Stolen by Wells Fargo Employees to Access Customer Accounts Pleads GuiltyRead the Press Release
LOS ANGELES – The lead defendant in a bank fraud case who oversaw a scheme in which Wells Fargo Bank employees stole customer account data – information that was used to impersonate customers and steal money from their accounts – has pleaded guilty to federal fraud charges.
Ronald Charles Reed, 69, of Inglewood, pleaded guilty late yesterday to felony counts of bank fraud and aggravated identity theft.
Reed was among eight defendants who were charged in two indictments returned by a federal grand jury last year (see: http://go.usa.gov/c7ZDY). Three of the defendants charged in the case have not yet been identified, and authorities are seeking the public’s help in identifying and apprehending the currently unknown individuals.
Reed, who is also known as “Disco Ronnie,” pleaded guilty before United States District Judge Fernando M. Olguin, who is scheduled to sentence the defendant on July 15. As a result of the guilty pleas, Reed faces a statutory maximum sentence of 32 years in federal prison.
“Schemes involving bank insiders are particularly difficult to investigate,” said United States Attorney Eileen M. Decker. “But in this case, the FBI and Secret Service diligently worked to uncover the mechanics of the scheme and those responsible for the losses suffered by the bank. I want to compliment the special agents involved in this matter, as well as Wells Fargo for cooperating in the investigation.”
When he pleaded guilty, Reed admitted that he worked with former Wells Fargo employees and the three unknown individuals in a scheme that caused Wells Fargo to suffer hundreds of thousands of dollars in losses. In his plea agreement, Reed has agreed to pay nearly $600,000 in restitution.
Reed recruited four Wells Fargo employees in 2013 and 2014, asked them to access the bank’s computer records, and then purchased personal identifying information (PII) belonging to bank customers, including dates of birth, account numbers, driver’s license numbers and social security numbers. With this information, the currently unidentified “runners” used fake IDs to impersonate bank customers and made substantial cash withdrawals from the customers’ accounts. In some cases, the runners also used the customer’s account to deposit worthless checks and receive cash back. The fraudulent transactions were made at Wells Fargo branches across Southern California and in other states, including Minnesota and Nevada.
Reed also admitted that in 2014 he purchased PII for accounts at U.S. Bank – but the information was for an undercover account and was supplied by a confidential informant who was working with law enforcement.
Three former Wells Fargo employees involved in the scheme previously also pleaded guilty and are pending sentencing. A case against one former Wells Fargo employee is still pending.
“The FBI is seeking the public's help in identifying three individuals who participated in the scheme by going into bank branches with fake IDs to illegally access customer accounts,” said FBI Assistant Director in Charge David Bowdich. “Anyone with information is urged to call the FBI’s Los Angeles Field Office at 1-888-226-8443.”
This matter was jointly investigated by the Federal Bureau of Investigation and the United States Secret Service. Wells Fargo Bank fully cooperated during the investigation.
Norway Man Sentenced for Distribution of Child PornographyRead the Press Release
MARQUETTE, MICHIGAN — Garrett Joseph Thoresen, 23, of Norway, Michigan was sentenced to 60 months in federal prison for distribution of child pornography, U.S. Attorney Patrick A. Miles, Jr. announced today. In addition to the prison term, U.S. District Judge Robert Holmes Bell ordered Thoresen to serve five years of court supervision following his release from prison, to pay a $100 special assessment, and to pay $3,000 in restitution to one of his victims. Thoresen will also be required to register as a sexual offender.
On December 22, 2015, Thoresen pleaded guilty to a federal felony charge of distributing child pornography. Thoresen’s activities came to light through an undercover investigation into his use of a closed peer-to-peer file sharing network. An undercover agent was able to download images and videos containing child pornography from Thoresen’s computer through peer-to-peer software. Investigators obtained a federal search warrant for computer media at Thoresen’s residence. A forensic examination of Thoresen’s computers revealed his possession of approximately 4,600 images and 189 videos containing child pornography involving approximately 65 known child victims.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor's offices, Internet Crimes Against Children task force (ICAC), federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov.
The Federal Bureau of Investigation investigated the case. The case was prosecuted by Assistant U.S. Attorney Paul D. Lochner.
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North Miami Man Sentenced to Five Years for Identity Fraud and Tax Fraud SchemeRead the Press Release
Orlando, Florida – U.S. District Judge John Antoon II today sentenced Joseph A. Johns to 5 years in federal prison for possession of 15 or more fraudulent debit cards and aggravated identity fraud. He pleaded guilty on October 19, 2015.
According to court documents, in February 19, 2012, Osceola County Sheriff’s Office deputies stopped Johns’s vehicle because of an active arrest warrant. During the stop, Johns gave deputies consent to search his car, during which they found ledgers containing Personal Identifying Information (PII), including the Social Security numbers, dates of birth, and bank account numbers of hundreds of individuals. Deputies also found approximately 197 debit cards in the names of various individuals, some of whose PII was contained in the ledgers. Further investigation revealed that Johns was using the victim information to file fraudulent tax returns and receive tax refunds in the victims’ names. Johns arranged for these tax refunds to be deposited onto prepaid debit cards in his possession.
Through this scheme, Johns obtained at least $158,425.65 in fraudulent federal tax refunds. He also received at least $15,914.70 in fraudulent state tax refunds from the state of Georgia.
This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, and the Osceola County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Vincent S. Chiu.
New Orleans Man Charged with Illegal Possession of a FirearmRead the Press Release
U.S. Attorney Kenneth A. Polite announced today the unsealing of a one-count Indictment charging KIDUS WODAJO, age 23, of New Orleans, with being a felon in possession of a firearm.
According to the Indictment, WODAJO, who had previously been convicted of a felony in Orleans Parish Criminal District Court, possessed a Taurus Millennium Pro .45 caliber semiautomatic pistol in December 2013.
If convicted, WODAJO faces a maximum term of imprisonment of ten years, a fine of $250,000 and three years of supervised release following any term of imprisonment.
U.S. Attorney Polite reiterated that the Indictment is merely an allegation and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives in investigating this matter. Assistant United States Attorney Jonathan L. Shih and Trial Attorney Joseph K. Wheatley, of the Department of Justice, Organized Crime and Gang Section, are in charge of the prosecution.
New Orleans Jury Convicts Company Owner and Doctor for Roles in $34 Million Fraud SchemeRead the Press Release
WASHINGTON – A federal jury in New Orleans convicted the owner of a health care company and a doctor for their roles in a $34 million Medicare fraud scheme that operated over the course of seven years in New Orleans and surrounding communities.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Dallas Regional Office made the announcement.
Elaine Davis, 59, and Dr. Pramela Ganji, 66, both of New Orleans, were each convicted of one count of conspiracy to commit health care fraud and one count of health care fraud late yesterday after an eight-day trial before Chief U.S. Judge Kurt D. Englehardt of the Eastern District of Louisiana. Davis and Ganji will be sentenced on July 6, 2016.
Evidence introduced at trial showed that Davis owned and controlled the operations of Christian Home Health Care Inc., and Davis and Ganji caused Christian to bill Medicare for home health care services that were not needed and/or were not provided. In her role, Davis paid employees to recruit new patients from communities in and around New Orleans and Hammond, Louisiana. Christian then sent the new patients’ Medicare information to doctors, including Ganji, to obtain their signatures to certify that the patients qualified to receive home health care services, which trial evidence showed they did not qualify for or need. Trial evidence showed that Ganji had often never seen these patients and these false certifications allowed Davis and Christian to bill Medicare for home health services and to conceal that the services were unnecessary. Evidence introduced at trial showed that from 2007 through June 2015, Christian submitted more than $34.4 million in claims to Medicare, a large number of which were fraudulent. Medicare paid Christian approximately $29.6 million on these claims.
Davis was found not guilty of three additional counts of health care fraud and Ganji was found not guilty of one additional count of health care fraud. Dr. Godwin Ogbuokiri was acquitted of all charges.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Louisiana. Trial Attorneys William Kanellis, Antonio Pozos and Drew Bradylyons of the Criminal Division’s Fraud Section prosecuted the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
New Orleans Jury Convicts Company Owner and Doctor for Roles in $34 Million Fraud SchemeRead the Press Release
A federal jury in New Orleans convicted the owner of a health care company and a doctor for their roles in a $34 million Medicare fraud scheme that operated over the course of seven years in New Orleans and surrounding communities.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Dallas Regional Office made the announcement.
Elaine Davis, 59, and Dr. Pramela Ganji, 66, both of New Orleans, were each convicted of one count of conspiracy to commit health care fraud and one count of health care fraud late yesterday after an eight-day trial before Chief U.S. Judge Kurt D. Englehardt of the Eastern District of Louisiana. Davis and Ganji will be sentenced on July 6, 2016.
Evidence introduced at trial showed that Davis owned and controlled the operations of Christian Home Health Care Inc., and Davis and Ganji caused Christian to bill Medicare for home health care services that were not needed and/or were not provided. In her role, Davis paid employees to recruit new patients from communities in and around New Orleans and Hammond, Louisiana. Christian then sent the new patients’ Medicare information to doctors, including Ganji, to obtain their signatures to certify that the patients qualified to receive home health care services, which trial evidence showed they did not qualify for or need. Trial evidence showed that Ganji had often never seen these patients and these false certifications allowed Davis and Christian to bill Medicare for home health services and to conceal that the services were unnecessary. Evidence introduced at trial showed that from 2007 through June 2015, Christian submitted more than $34.4 million in claims to Medicare, a large number of which were fraudulent. Medicare paid Christian approximately $29.6 million on these claims.
Davis was found not guilty of three additional counts of health care fraud and Ganji was found not guilty of one additional count of health care fraud. Dr. Godwin Ogbuokiri was acquitted of all charges.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Louisiana. Trial Attorneys William Kanellis, Antonio Pozos and Drew Bradylyons of the Criminal Division’s Fraud Section prosecuted the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
New Haven Man Sentenced to Federal Prison for Distributing CrackRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PERRY FLOWERS, also known as “Mel,” 46, of New Haven, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to approximately 21 months of imprisonment, time already served, and four years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, on two occasions in late 2013, and again in March 2014, FLOWERS sold crack cocaine to an individual working with law enforcement. FLOWERS sold a total of approximately 43 grams of crack during the three sales.
FLOWERS has been detained since his arrest on June 18, 2014. On December 2, 2015, he pleaded guilty to one count of possession with intent to distribute, and distribution of, cocaine base (“crack cocaine”).
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Haven Police Department. The case was prosecuted by Assistant U.S. Attorneys Robert Spector and Gabriel Vidoni.
Navajo Man from Torreon Sentenced to Three Years Probation for Federal Misdemeanor Assault ConvictionRead the Press Release
ALBUQUERQUE – Orlando King, 35, an enrolled member of the Navajo Nation who resides in Torreon, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to a misdemeanor assault charge. After entering his guilty plea, King was sentenced to three years of probation.
King was arrested on Dec. 29, 2015, on a criminal complaint charging him with assault with a dangerous weapon with intent to do bodily harm. According to the complaint, on Dec. 4, 2015, in Sandoval County, N.M., King and another man allegedly attacked the victim, hitting the victim in the face, kicking his body and face, and hitting the victim in the left arm and back with an ax. The victim sustained an open fracture to the bone between his elbow and shoulder that required two surgeries.
During today’s proceedings, King pled guilty to a misdemeanor information charging him with assault by striking, beating or wounding. In entering the guilty plea, King admitted that on Dec. 4, 2015, he and another man got into a verbal argument with the victim, and the other man began to physically fight the victim. King further admitted that he struck and kicked the victim several times, and the other man involved in the fight then used an ax to strike the victim which caused serious injury. King admitted that he did not participate or encourage the assault with the ax. The assault occurred within the Navajo Indian Reservation. A sentencing hearing has yet to be scheduled.
The other man referred to by King is Henderson Castillo who is charged in a two-count indictment with assault with a dangerous weapon and assault resulting in serious bodily injury. The indictment alleges that Castillo injured the victim by assaulting him with an ax on Dec. 4, 2015. Castillo has entered a not guilty plea to the indictment and remains detained pending trial. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Sarah Mease.
Mexican Citizen in Pottawattamie County, Iowa, Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
Council Bluffs, IA - On March 16, 2016, Jonathon Oros-Moreno, a 29 year-old citizen of Mexico, was sentenced by Senior United States District Court Judge James E. Gritzner, to 100 months in prison followed by five years of supervised release for possession with intent to distribute methamphetamine announced Acting United States Attorney Kevin E. VanderSchel.
Oros-Moreno entered a guilty plea on July 24, 2015, to possession with intent to distribute methamphetamine following his arrest on July 24, 2014, by the Southwest Iowa Narcotics Task Force working with the Federal Bureau of Investigation's Safe Streets Task Force. On July 24, 2014, law enforcement purchased two one-pound packages of methamphetamine from Oros-Moreno before serving a search warrant on the Council Bluffs, Iowa apartment where Oro-Moreno was staying. At the apartment, law enforcement located an additional twelve one-pound packages of methamphetamine.
The investigation was conducted by the Southwest Iowa Narcotics Task Force, Council Bluffs Police Department, the Bellevue (Nebraska) Police Department, the Omaha (Nebraska) Police Department and the FBI’s Safe Streets Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Members of Chester Drug Trafficking Organization ConvictedRead the Press Release
PHILADELPHIA – A federal jury, today, returned guilty verdicts against members of a violent drug trafficking gang that operated in and around Chester, PA. The jury found Donald Womack, Sr., Paris Church, Ronell Whitehead, Breon Burton, Spencer Payne, guilty of operating a drug market within the Rose and Upland neighborhood on the east side of Chester City. Womack, Church, Whitehead, Burton, and Payne were convicted of conspiracy. All of the defendants face a maximum possible sentence of life in prison; Womack faces a mandatory term of life in prison; the remaining defendants, except Payne, face a mandatory term of 20 years in prison; Payne faces a mandatory term of 10 years in prison. Sentencing hearings have not yet been scheduled.
Among the charges that these defendants and their 17 co-defendants were convicted of: distributing cocaine, crack cocaine, and heroin to customers in their territory and elsewhere between August of 2012 and September of 2014; maintaining a drug house; possessing firearms in furtherance of drug trafficking crimes; and distributing cocaine, crack and heroin within 1,000 feet of area schools and a playground. Burton was previously convicted of being a felon in possession of firearms and use of a firearm in furtherance of drug trafficking. One of the group’s largest alleged cocaine and heroin suppliers, Paris Church, was convicted of conspiracy to distribute 280 or more of cocaine base (“crack”), 500 grams or more of cocaine, and 100 or more grams of heroin for re-distribution. The leader of the drug trafficking group, William Dorsey, and 16 other co-defendants pleaded guilty to their roles in the organization.
The case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Chester Police Department, the Pennsylvania State Police, and the Delaware County Office of the District Attorney’s Criminal Investigation Division. Also providing substantial manpower and assistance in the arrests were agents from the U.S. Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorneys Ashley K. Lunkenheimer, A. Nicole Phillips, and Faithe Moore Taylor.
Massachusetts Woman Charged with Passport and Identity FraudRead the Press Release
PHILADELPHIA - Altagracia Arias, 60, of Lawrence, Massachusetts, was charged by indictment, filed today, with passport fraud, use of a fraudulently obtained passport, and aggravated identity theft, announced United States Attorney Zane David Memeger.
According to the indictment, between November of 2008 and February of 2016, Arias used a United States passport which she had obtained through false statements on her passport application. She allegedly ARIAS used the name of another individual (“A.S.”), stated that she was born in Puerto Rico and was, therefore, a U.S. citizen, and gave a Social Security Number that was not hers.
If convicted of all charges, Arias faces a mandatory minimum term of two years in prison for the identity theft with a maximum statutory sentence of 32 years in prison, a possible fine, a $400 special assessment, and up to three years of supervised release.
This case was investigated by the U.S. Department of State Diplomatic Security Service, and is being prosecuted by Assistant United States Attorney V. Paige Pratter.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Maryland Man Charged in Alleged Sexting CaseRead the Press Release
PHILADELPHIA – Ralph Fisher, 38, of Elkton, Maryland, was charged by indictment, filed on March 15, 2016, with attempting to entice a minor to engage in sexual conduct, attempting to transfer obscene material to minors, and other charges. The case was announced today by United States Attorney Zane David Memeger and Delaware County District Attorney Jack Whelan.
According to the indictment, between June 15, 2015 and July 20, 2015, Fisher engaged in sexually explicit chats over the Internet with “Minor #1,” a person Fisher believed to be a 15-year old boy. Fisher allegedly attempted to engage “Minor #1” in sexual conduct and sent pornographic pictures of himself to “Minor #1.” It is further alleged that on July 20, 2016, Fisher traveled to Delaware County, Pennsylvania, to have sex with “Minor #1” but was, instead, arrested by the Delaware County Criminal Investigation Division. Fisher is also charged with distributing child pornography to others over the Internet, and possessing child pornography on his cell phone.
If convicted of all charges, Fisher faces a mandatory minimum sentence of 10 years in prison with a statutory maximum sentenced of life in prison, a possible fine, supervised release, and a $500 special assessment.
This case was investigated by the Delaware County Criminal Investigation Division and the Federal Bureau of Investigation. It is being prosecuted by Special Assistant United States Attorney Alan Borowsky.