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2 May 2016
Two Alleged Members of LCN Sentenced for ExtortionRead the Press Release
BOSTON – Two alleged members of the New England Family of La Cosa Nostra were sentenced in U.S. District Court in Boston today in connection with extortion.
Anthony Spagnolo, 74, of Revere, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 20 months in prison and ordered to pay a fine of $5,000. On March 24, 2016, Pryce Quintina, 76, of Revere, was sentenced to15 months in prison. In December 2015, both men pleaded guilty to conspiring to interfere with interstate commerce by extortion.
In November 2012, Moose Lodge, a social club in Revere, wanted to replace its existing video poker machines, supplied by Constitution Vending Company, with new video poker machines. Constitution paid Spagnolo and Quintina to protect their video poker machines in social clubs, including the Moose Lodge. Moose Lodge intended to replace Constitution’s aging machines with new ones – a move that would decrease Constitution’s profits and potentially cause Spagnolo and Quintina to receive less protection money. In response, Spagnolo and Quintina met with the manager of Moose Lodge and told him that Constitution’s machines “were not going anywhere.” As a result of this threat, the Moose Lodge did not replace those machines.
The case is part of a multi-year investigation into La Cosa Nostra (LCN) operations in Eastern Massachusetts. As a result of the investigation, five individuals have been convicted. Louis DiNunzio, 29, of Medford, who the government alleges is also a member of the LCN, Joseph Spagnuolo-Kazonis, 30, of Boston, and John Woodman, 43, of Braintree, were convicted of conspiracy to possess with intent to distribute marijuana. In addition, John Evans, 68, of Middleborough, and Joseph Petrucelli, 24, of Winthrop, were convicted of conducting an illegal gambling business.
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. Assistance was also provided by the Internal Revenue Service’s Criminal Investigations, the Massachusetts Department of Correction, and the Boston, Braintree, Everett, Medford and Quincy Police Departments. The case was prosecuted by Assistant U.S. Attorney Timothy E. Moran of Ortiz's Organized Crime and Gang Unit.
Three East Flatbush Gang Members Sentenced for Their Roles in Police Impersonation RobberiesRead the Press Release
Today in Brooklyn federal court, Ringo Delcid, a member of the violent Predator Set street gang operating primarily in the East Flatbush neighborhood of Brooklyn, was sentenced to 130 months of imprisonment for conspiring to commit two Hobbs Act robberies and for the use of a firearm in connection with one of those robberies. Last month, two other members of the gang were also sentenced for their roles in these crimes: Steele was sentenced to 130 months’ imprisonment for his participation in both robberies, and Hall was sentenced to 96 months’ imprisonment for his participation in one of those robberies. All three defendants were convicted following their previously-entered guilty pleas.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office; and William J. Bratton, Commissioner, New York City Police Department (NYPD).
The convictions resulted from a series of police impersonation robberies committed in 2013. On January 16, 2013, Steele and Delcid committed a home invasion robbery of a narcotics trafficker in Brooklyn. Posing as undercover police officers, the defendants gained access to the residence and proceeded to tie up the trafficker’s girlfriend and twelve-year-old son and ransack the apartment. On July 10, 2013, Steele, Hall, Delcid, and others attempted to rob another narcotics trafficker by carrying out a traffic stop while posing as undercover police officers, complete with a rental car modified to look like a police car. The robbery was thwarted when real NYPD officers arrived at the scene and the defendants fled.
At a hearing on April 14, 2016, U.S. District Judge I. Leo Glasser found that Steele and Hall also conspired to commit a September 27, 2014, armed robbery in which the victim was shot in the leg after he withdrew money from a check-cashing establishment in East Flatbush. The evidence at the hearing established that Steele and Delcid had accumulated an arsenal of weapons in a storage unit in Brooklyn, including three firearms, hundreds of rounds of ammunition, and three homemade silencers, all of which was seized by law enforcement.
“The defendants’ crimes were carefully planned, brazenly executed, and demonstrated a complete disregard for the safety for their victims and the community,” stated United States Attorney Capers. “By impersonating police officers, the defendants took advantage of their victims’ trust in law enforcement; their actions also undermined the operation of legitimate law enforcement officers. The sentences imposed appropriately reflect the seriousness of their crimes and demonstrate our commitment to keeping our neighborhoods safe.” Mr. Capers expressed his grateful appreciation to the FBI’s Violent Crimes squad and the NYPD’s Internal Affairs Division for their cooperation and assistance in the investigation.
FBI Assistant Director-in-Charge Rodriguez stated, “Delcid not only intruded on a residence but he also intruded on the trust the public has with police when he and his coconspirators posed as police officers to commit violent crimes. Serious offenses like this warrant serious sentences and today’s sentencing of Delcid is no exception.”
“These gang members committed gunpoint robberies, violating the public’s trust by impersonating police officers and, in one case, preying upon a woman and child,” said Police Commissioner Bratton. “I would like to thank the members of the NYPD, the FBI, and the U.S. Attorney’s office whose work has led to lengthy prison sentences for the defendants.”
The government’s case is being prosecuted by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Alixandra Smith and David Pitluck are in charge of the prosecution.
The Defendants:
BENJAMIN HALL
Age: 21
Brooklyn, New YorkRINGO DELCID
AGE: 27
BROOKLYN, NEW YORKKASAGAMA STEELE
Age: 30
Brooklyn, New YorkE.D.N.Y. Docket No. 14-CR-576 (ILG)
The United States Announces Civil Allegations Against ARH PharmaciesRead the Press Release
Allegations include claims of filling fraudulent prescriptions for stimulants and failing to maintain proper records of controlled substances
LEXINGTON, Ky. – Appalachian Regional Healthcare, Inc. (“ARH”) has been accused of unlawfully filling fraudulent prescriptions for stimulants, written by a physician working in Harlan ARH’s Emergency Room, for ARH nurses and staff, and their family members, without a proper doctor-patient relationship, and failing to make and maintain complete and accurate records of its controlled substances.
In a civil lawsuit filed today, the United States has alleged that Harlan ARH Hospital Pharmacy improperly filled prescriptions for stimulants that were written by a Harlan ARH Emergency Room physician. The United States contends that many of these prescriptions were written for double the standard recommended dose of prescription pills and that, as a result of these improperly filled prescriptions, thousands of stimulant pills were illegally dispensed to ARH employees and their family members. The United States further contends that ARH failed to make and maintain complete and accurate records of its controlled substances at two other pharmacies – Hazard ARH Regional Medical Center Clinic Pharmacy and Middlesboro ARH Pharmacy – which prevents the Government from determining whether other controlled substances had been diverted for illegal use.
The United States is seeking civil penalties for ARH’s alleged violations of the Controlled Substances Act.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Timothy J. Plancon, Special Agent in Charge of the Detroit Division of the Drug Enforcement Administration, jointly announced the filing of the complaint.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
Texas Man Sentenced to 20 Years for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Mexican national in Sugarland, Texas, was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine in the Joplin area.
Israel Belmontes-Cisneros, 34, a citizen of Mexico residing in Sugarland, was sentenced by U.S. District Judge M. Douglas Harpool to 20 years in federal prison without parole.
According to court documents, Belmontes-Cisneros was part of a drug-trafficking organization identified as a major source of supply in the Joplin, Mo., area as a result of a year-long, multi-agency investigation into an international organization based in Matamoras, Mexico, with members across the United States, including Texas, Oklahoma and Missouri.
On July 8, 2015, Belmontes-Cisneros pleaded guilty to his role in a conspiracy to distribute methamphetamine in the Joplin area. Belmontes-Cisneros also pleaded guilty to one count of possessing methamphetamine with the intent to distribute, which originated in the Southern District of Texas but was transferred to the Western District of Missouri.
Belmontes-Cisneros’s girlfriend, Miriam DeLeon, 35, of Brownsville, Texas, also was sentenced to 20 years in federal prison without parole after pleading guilty to her role in the conspiracy. Miriam DeLeon was identified as the leader of the drug-trafficking organization.
According to court documents, they transported one to two kilograms of methamphetamine per month to Joplin. Miriam DeLeon and Belmontes-Cisneros drove from Texas to Joplin to transport the methamphetamine, which was concealed in laundry detergent boxes. A kilogram of methamphetamine cost approximately $25,000. Drug-trafficking proceeds were transported back to Texas in the same concealment method.
According to court documents, a confidential source traveled from Joplin to Sugarland to pick up a kilogram of methamphetamine from Belmontes-Cisneros and Miriam DeLeon and transport it back to Joplin. The confidential source was given an eightball of methamphetamine by Miriam DeLeon’s brother, co-defendant Jose Luis Deleon, Jr., 36, of Joplin, as payment for the transportation. The methamphetamine was concealed in a spare tire in the vehicle, which was off-loaded at Jose Deleon’s residence.
Jose DeLeon has pleaded guilty to his role in the conspiracy and to being a felon in possession of a firearm and awaits sentencing. A confidential source told law enforcement investigators that Jose DeLeon sold multiple pounds of methamphetamine each week and had received at least two shipments of firearms in exchange for methamphetamine, each approximately 15 firearms.
According to court documents related to the original charge against Belmontes-Cisneros filed in Texas, a confidential source represented himself as a drug trafficker from the northeastern United States and met with Belmontes-Cisneros and Miriam DeLeon at a restaurant in Houston, Texas, in August 2012. During that meeting, Belmontes-Cisneros told the confidential source they could supply 20 to 30 kilograms of cocaine for $27,000 per kilogram. Belmontes-Cisneros also told the confidential source they could supply methamphetamine. The confidential source later met with Belmontes-Cisneros on two occasions and, at each meeting, purchased approximately a pound of methamphetamine for $9,000.
Seven additional Joplin residents have also pleaded guilty. Jack Holguin, 46, Ashley Lynn Mobley, 32, and Eric Allen Meyer, 32, were each sentenced to 15 years in federal prison without parole. Jeremy McClean, 33, was sentenced to 10 years in federal prison without parole. Brian Stark, 41, was sentenced to seven years in federal prison without parole. Juan Leonardo Simmons, 32, was sentenced to six years and three months in federal prison without parole. Billy Duane Henson, 61, was sentenced to five years in federal prison without parole. Brian Ashton, 31, awaits sentencing.
Miriam DeLeon was arrested on July 31, 2014, after visiting the Jasper County courthouse for a hearing for her brother and co-defendant, Jose DeLeon, who was being held on state charges at that time. In the courthouse parking lot, she handed Mobley a bag of dog food that was later found to contain 470 grams of methamphetamine. According to court documents, Miriam DeLeon was bringing the methamphetamine to her brother, who planned to distribute inside the Jasper County jail.
Miriam DeLeon had also been stopped in August 2008 by the Texas Department of Public Safety for a traffic violation in Wharton, Texas. The traffic stop resulted in the seizure of $122,300 that was discovered hidden in the vehicle.
This case is being prosecuted by Assistant U.S. Attorneys Ami Harshad Miller and Cindy Hyde. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the FBI, the Jasper County Drug Task Force, the Joplin, Mo., Police Department, the Missouri State Highway Patrol, the Kansas Bureau of Investigations, IRS-Criminal Investigations, the Bureau of Indian Affairs and the Newton County, Mo., Prosecuting Attorney.
St. Louis Man Sentenced in Craigslist Counterfeit ConspiracyRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today, that Eric Rogers, 23, of St. Louis, Missouri, was sentenced on Friday, April 29, 2016, in the U.S. District Court in East Saint Louis, Illinois, on the charge of Conspiracy to Manufacture, Possess and Pass Counterfeit United States Currency. The district court sentenced Johnson to 30 months in federal prison to be followed by 3 years of supervised release.
Rogers pled guilty to the charge on December 9, 2015. During his plea he admitted that he along with several others had engaged in an agreement to use counterfeit United States Currency to buy vehicles. Once in possession of the vehicles they would then resell them for genuine United States currency.
During August of 2013, the group contacted a person in Sandoval Illinois, who had listed his vehicle for sale on Craigslist. Johnson, along with the other conspirators then met with the seller in Sandoval, Illinois and purchased the vehicle for $2,400 in counterfeit $100 Federal Reserve Notes. Johnson and others involved in the conspiracy were arrested a short time after the fraudulent purchase by law enforcement from Carlyle, Clinton County and Sandoval.
The investigation in this case was conducted by the Carlyle and Sandoval Police Departments, the Clinton County Sheriff’s Office and the United States Secret Service. The case is being prosecuted by Assistant United States Attorney Ranley R. Killian.
South Florida Resident Charged for Attempt to Use Explosive DeviceRead the Press Release
James Gonzalo Medina was charged Saturday by criminal complaint with attempting to use a weapon of mass destruction - an explosive device – at a synagogue in Aventura, Florida.
Wifredo A. Ferrer, Unites States Attorney for the Southern District of Florida, John P. Carlin, Assistant Attorney General for National Security, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and members of the South Florida Joint Terrorism Task Force (JTTF), made the announcement.
James Gonzalo Medina, 40, of Hollywood, Florida, is charged by criminal complaint with knowingly attempting to use a weapon of mass destruction against a person or property within the United States, in violation of Title 18, United States Code, Section 2332a(a)(2). If convicted, Medina faces a maximum sentence of life in prison.
The arrest was the culmination of an undercover operation during which Medina was closely monitored by the South Florida Joint Terrorism Task Force (JTTF). The explosive device that he allegedly sought and attempted to use had been rendered inoperable by law enforcement and posed no threat to the public.
According to allegations contained in the complaint, in March 2016, Medina came to the attention of the FBI due to his conversations about attacking a synagogue in South Florida. The FBI was able to gauge Medina’s interest in the plot and collect evidence through the use of a confidential human source (CHS). Medina expressed anti-Semitic views and identified to the CHS the target of his attack, a Jewish synagogue in Aventura.
The complaint further alleges that Medina wanted to use an explosive device to commit the attack and engaged the CHS and an undercover FBI employee about the details of his planned criminal conduct. In preparation for the proposed attack, Medina studied the synagogue property to assess its vulnerabilities. On April 29, 2016, Medina took possession of an inert explosive device and was arrested while approaching the synagogue. Medina was under FBI surveillance and, once the FBI became involved, it worked to effectively mitigate any danger posed to the public.
The case was investigated by the FBI’s Miami Division and the South Florida JTTF. The case is being prosecuted by Assistant U.S. Attorneys Karen E. Gilbert and Marc S. Anton of the Southern District of Florida, and Trial Attorney Taryn Meeks of the National Security Division’s Counterterrorism Section.
A complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. 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.
Sex Traffickers Sentenced for Pimping Three Minor Girls During 2013 Final Four NCAA PlayoffsRead the Press Release
ATLANTA - Isaiah Jernigan, Darren Williamson, Jr., a/k/a Chef Boy RD, Marie St. Vil, a/k/a Jasmine, and Brianne Marcelin, a/k/a Bri, have been sentenced for sex trafficking three minor girls in Atlanta during the 2013 Final Four NCAA Playoffs.
“As fans descended on Atlanta for the Final Four in 2013, these defendants operated in the shadows, selling these young girls for sex to anyone who would pay,” said U. S. Attorney John Horn. “The three teenagers who were exploited in this case are tragic examples of how quickly young women can be entrapped into commercial sex trafficking.”
“The sentencing of these four individuals who were previously convicted in federal court of human trafficking is a tremendous victory for the many investigators, counselors and non-government organizations working so hard to protect our nation’s children from those who would prey on them. While our streets are now safer with the removal of these callous and reprehensible defendants, the fight to eradicate human trafficking continues and the FBI asks that anyone with information regarding such activity to immediately contact their nearest FBI field office or law enforcement agency,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges and other information presented in court: From approximately mid-March 2013 to April 20, 2013, the four defendants recruited and enticed three juveniles for committing commercial sex acts. The juveniles ranged in age from 15 to 17 years old. The group’s criminal scheme also involved adult women engaged in prostitution.
The group recruited the girls and then provided them a place to live at an apartment in Sandy Springs, Georgia. At least one of the juveniles was required to have sex with Williamson as an “audition” for working for the group as a prostitute. Members of the group would take photos of the girls in lingerie and then post the photos in advertisements on the website “Backpage.com,” seeking men for commercial sex acts. Various members of the group drove the girls to their sex-dates at different hotels around town, and on occasion, male customers would also visit the Sandy Springs apartment for commercial sex. At one point Jernigan knocked one of the adult women to the ground in front of some of the other girls, dragged her into another room, and shaved off some of her hair.
The defendants’ scheme was uncovered as part of an FBI undercover operation aimed at locating and identifying minor sex traffickers operating during the NCAA Final Four Playoffs in Atlanta, Georgia in April 2103.
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Isaiah Jernigan, 27, of Orlando, Florida, has been sentenced to 11 years, seven months in prison to be followed by five years of supervised release.
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Darren Williamson, Jr., a/k/a Chef Boy RD, 28, of Atlanta, Georgia, has been sentenced to ten years, three months in prison to be followed by five years of supervised release.
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Marie St. Vil, a/k/a Jasmine, 27, of Orlando, Florida, was sentenced April 14, 2016, to six years in prison to be followed by five years of supervised release.
- Brianne Marceline, a/k/a Bri, 26, of Atlanta, Georgia, was sentenced April 15, 2016, to five years of prison to be followed by five years of supervised release.
All defendants have received a $100 special assessment and are required to register as sex offenders as a condition of their supervised release.
This case was investigated by the FBI led Metro Atlanta Child Exploitation (MATCH) Task Force.
Assistant United States Attorney Skye Davis prosecuted the case.
Men who think they are buying sex from a consenting adult may actually be contributing to sex trafficking of minors unwittingly.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga
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Sex Offender Sentenced to 15 Years for Trading Child PornographyRead the Press Release
BOSTON – A previously convicted sex offender was sentenced in U.S. District Court in Boston today in connection with receiving thousands of child exploitation videos.
Derrick Jones, 45, of Arlington, was sentenced today by U.S. District Court William G. Young to 15 years in prison, 10 years of supervised release and will be required to register as a sex offender upon release from prison. In January 2016, Jones pleaded guilty to receipt of child pornography and possession of child pornography.
Jones used file sharing computer programs to trade and receive images of child pornography and also downloaded and viewed images and videos of children ranging in age from infants to minors under the age of 18, being sexually exploited. Jones maintained a collection of 34,000 images and approximately 13,000 videos of child pornography. In 2005, Jones was convicted of two counts of possession of child pornography.
United States Attorney Carmen M. Ortiz; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Arlington Police Chief Will Johnson, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz's Major Crimes Unit.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Santa Fe Man Sentenced for Attempting to Rob Wells Fargo Bank Branch in April 2015Read the Press Release
ALBUQUERQUE – Anthony Quintana, 31, of Santa Fe, N.M., was sentenced today in federal court in Albuquerque, N.M., to 43 months in prison for attempting to rob the Wells Fargo Bank branch located at 545 West Cordova Rd. in Santa Fe, in April 2015. Quintana will be on supervised release for three years after completing his prison sentence.
Quintana was arrested on May 2, 2015, based on a criminal complaint charging him with attempted bank robbery of the Wells Fargo Bank branch on April 7, 2015. According to the criminal complaint, Quintana attempted to rob the bank by approaching a bank teller, requesting a withdrawal, and then demanding that the teller give him all of the $100 bills in her drawer. In making the demand for the money, Quintana claimed he had a gun. While the teller was searching for keys to open her money drawer, Quintana left the bank without obtaining any money.
Quintana was subsequently indicted on an attempted bank robbery charge on May 28, 2015. On Nov. 19, 2015, Quintana pled guilty to the indictment and admitted that on April 7, 2015, he attempted to rob the Wells Fargo Bank branch in Santa Fe.
This case was investigated by the Albuquerque office of the FBI and the Santa Fe Police Department. Assistant U.S. Attorney Presiliano Torrez prosecuted the case.
Sacramento Man Sentenced to 15 Years in Prison for Producing Child Pornography Used in Online Ads for Prostitution ServicesRead the Press Release
LOS ANGELES – A Sacramento man was sentenced today to 15 years in federal prison today for producing child pornography that was used to advertise the victim as a prostitute.
Antonio Dickerson, 26, was found guilty in February by a federal jury of one count of sexual exploitation of a minor for production of child pornography.
Previously in this case, Dickerson’s co-defendant – D’Antoine Thomas, 26, also of Sacramento – pleaded guilty to sex trafficking of a minor. Thomas was sentenced by Judge Wilson in March to seven years in federal prison.
The victim in the case was 16 when she met Thomas in Sacramento in 2010. She soon started working for Thomas as a prostitute in Northern California. In April 2011, Dickerson transported Thomas, the victim and another prostitute to Orange County. During this trip, Dickerson directed the 16-year-old victim and another prostitute to simulate sex acts, which he photographed and posted on a website to advertise prostitution services involving the girls.
Dickerson also directed the victim and another 16-year old girl to engage in commercial sex acts, according to the sentencing papers filed by prosecutors, which noted that Dickerson was well aware of the victim’s age, but he “didn’t care” how old she was.
“No child should be subjected to this type of exploitation,” said United States Attorney Eileen M. Decker. “This defendant’s criminal conduct demeaned his child victim, caused the victim harm each time one of the images appeared on the Internet, and was used to further promote illegal sex trafficking.”
This case is the result of an investigation by the Federal Bureau of Investigation and the Sacramento Sheriff’s Department.
Riverdale Felon Exiled to 40 Years in Prison for Gun and Drug OffensesRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Quintin A. Bell, age 51, of Riverdale, Maryland, today to 40 years in prison followed by five years of supervised release for possession with intent to distribute heroin and crack cocaine; possession of a firearm in furtherance of a drug trafficking crime; and for being a felon in possession of a firearm. A jury convicted Bell of those charges on November 18, 2015.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Frank Riehl of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Henry P. Stawinski of the Prince George’s County Police Department.
According to evidence presented at his five day trial, on April 10, 2014, law enforcement executed a search warrant at Bell’s residence. They located Bell in the basement of the home, along with over 100 grams of heroin and drug paraphernalia, including cutting agents, scales, grinders, empty pill capsules, a pill capsule filler, and small ziplock baggies. Also found in the basement was a Ruger Mini magazine loaded with 13 rounds of 7.62x39mm ammunition and a box containing nine additional rounds of ammunition.
Witnesses testified that Bell was brought in to the living room of the home where he told officers that there was a gun under a couch in that room. Law enforcement officers looked under the couch and located a black gun case containing a Ruger Mini-14 .223 caliber semi-automatic rifle, which was compatible with the magazine located in the basement. Bell told the officers that a friend had given him the gun after someone tried to rob the residence. Officers also seized: over $12,000 in cash; jewelry; a magazine for a .40 caliber handgun; 4.5 grams of heroin; and six rounds of 9mm ammunition.
According to testimony at trial, five months later, officers executed another search warrant at the home and found more heroin in the basement, more drug paraphernalia, and crack cocaine. Five days before the second search, Bell was arrested in Washington, D.C., after he was found behind the wheel of his car with a loaded .40 caliber semi-automatic handgun. The gun was tucked next to Bell’s seat, between Bell and the center console. In the center console law enforcement recovered three baggies each of heroin and crack cocaine, as well as a small baggie of marijuana, all packaged for distribution. From Bell’s front left pants pocket, officers seized $1,054. Bell made a videotaped statement to the Metropolitan Police Department officers after his arrest, which was played at trial, in which he admitted to having been out “hustling,” trying to buy cocaine and two “Rugers,” so that he would have a firearm for his exclusive use.
Bell had several previous felony convictions, including violent crimes committed in both Maryland and Washington, D.C., and was prohibited from possessing firearms or ammunition.
United States Attorney Rod J. Rosenstein commended the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Michael T. Packard and Daniel C. Gardner, who prosecuted the case.
Project Safe Childhood - Salem Man Pleads Guilty to Producing Child PornographyRead the Press Release
CONCORD, NEW HAMPSHIRE: Brian Powell, 33, of Salem, New Hampshire, pled guilty on Monday in United States District Court for the District of New Hampshire to producing child pornography, announced United States Attorney Emily Gray Rice.
In 2015, an Electronic Service Provider (ESP) alerted the National Center for Missing and Exploited Children (NCMEC) that an individual had uploaded a child pornography file to the ESP’s website. That file was ultimately traced back to the defendant’s residence in Salem, New Hampshire. The Salem Police Department obtained a search warrant for the residence and seized the defendant’s personal computer. A subsequent analysis of that computer by a detective with the Rochester, New Hampshire Police Department – also a member of the New Hampshire Internet Crimes Against Children Task Force – revealed a collection of child pornography. That collection included several videos which the defendant had manufactured himself by initiating contact with minor females through an internet chat service, and persuading them to engage in sexually explicit conduct – which the defendant then captured on video using computer recording software.
Powell is scheduled to be sentenced in August 2016. He faces a mandatory minimum of 15 years in prison, at least 5 years of supervised release, and a fine of up to $250,000.
The investigation in this case was led by the Salem, New Hampshire Police Department with the assistance of the New Hampshire Internet Crimes Against Children Task Force, the Police Departments of Rochester and Derry, New Hampshire, and Homeland Security Investigations Manchester (HSI Manchester).
The case is being prosecuted by Assistant United States Attorney Nick Abramson.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led, in each district, by the United States Attorney’s Office, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, and to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc
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Philadelphia Man Admits That He Exchanged More Than $1.2 Million in ‘Snap’/Food Stamp Benefits for CashRead the Press Release
CAMDEN, N.J. – A Philadelphia man today admitted that he stole more than $1.2 million dollars from the U.S. Government through a food stamp scheme, U.S. Attorney Paul J. Fishman announced.
Kaher Abdullah, 57, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with one count of theft of government funds.
According to documents filed in this case and statements made in court:
In June 2011, Abdullah opened Express Food Mart on South Broadway in Camden, New Jersey. From November 2011 until about October 2014, Express Food Mart was a small grocery store that was authorized to accept Supplemental Nutrition and Assistance Program (SNAP) benefits (formerly known as food stamps). The program is administered by the U.S. Department of Agriculture. Retail food stores that have been approved for participation in SNAP may sell food in exchange for food stamp benefits. They may not, however, exchange food stamp benefits for cash.
Every food stamp recipient receives an Electronic Benefits Transfer (EBT) card, similar to a debit card, with which to make purchases. Every retailer authorized to accept food stamp benefits has an EBT terminal. Food purchases are made by swiping the card at the terminal. After the customer enters a Personal Identification Number (PIN), the EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the proposed transaction and informs the retailer whether the transaction should be authorized or denied. If the transaction is authorized, the amount of the purchase is then deducted electronically from the food stamp benefits reserved for the customer, and the amount is credited to the retailer’s designated bank account.
Abdullah admitted he controlled a business bank account at CitiBank to receive the reimbursements for SNAP benefits. Bank records listed Abdullah as the president of the corporation that owned Express Food Mart. He admitted that from November 2011 until October 2014, the SNAP redemptions were more than $1.2 million. The volume of SNAP benefits reimbursement received at Express Food Mart substantially exceeded estimates for businesses of similar size, indicating large-scale food stamp fraud.
Law enforcement agents verified the fraudulent exchange of SNAP benefits for cash through the use of undercover law enforcement officers. During a series of transactions, undercover law enforcement agents exchanged SNAP benefits from Abdullah and other employees at Express Food Mart for cash. Abdullah admitted that, in general, he and other employees redeemed SNAP benefits for approximately 50 cents on the dollar.
A review of the bank records showed that Express Food Mart received through its Citibank Business account $1,264,006 for illegally redeemed SNAP benefits. Abdullah admitted that shortly after receiving the money in the Express Food Mart account, he transferred the money to another account which he used to pay personal expenses.
The count of theft of government funds carries a maximum penalty of 10 years in prison and a fine of $250,000, or two times the amount of the loss to the United States, whichever is greater. Under the terms of the plea agreement, Abduallah has agreed to the entry of a forfeiture money judgment for $1,264,006. Sentencing is scheduled for Sept. 13, 2016.
U.S. Attorney Fishman credited special agents of the U.S. Department of Agriculture, Office of Inspector General, under the direction of Special Agent in Charge William G. Squires in New York; and the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney's Office Criminal Division in Camden in the criminal case.
Defense counsel: Justin Loughry Esq., Camden
Overland Park Woman Pleads Guilty to Sexual Exploitation of a MinorRead the Press Release
WICHITA, KAN. - An Overland Park woman pleaded guilty to sexually exploiting a 13-year-old victim, Acting U.S. Attorney Tom Beall said.
Tricia Rodarmel, 39, Overland Park, Kan., pleaded guilty to one count of transporting a minor across state lines for the purpose of engaging in sexual activity. In her plea, Rodarmel admitted that in October 2013 she began a relationship with co-defendant Robert Dickson through social media. Dickson told her of his interest in having sex with minors. Rodarmel helped by putting Dickson in contact with a 13-year-old minor.
On March 16, 2014, Rodarmel took the 13-year-old from Missouri to a hotel in Kansas where Dickson was to meet them. Rodarmel knew that Dickson intended to engage in sex with the minor.
Sentencing is set for July 25. Both parties have agreed to recommend Rodarmel be sentenced to 17 years in federal prison, followed by 10 years of supervised release.
Co-defendant Dickson is set for sentencing July 11. Both parties in his case have agreed to recommend Dickson be sentenced to 25 years, followed by lifetime supervised release.
Beall commended the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.
Nuestra Familia Leader and Associates Sentenced on Racketeering ChargesRead the Press Release
The last of three defendants charged with racketeering offenses was sentenced today by the Honorable Lawrence J. O’Neill. Gary Anthony Romero, 50, of Stockton, California, was sentenced on April 11, to 20 years imprisonment for racketeering conspiracy. Today, Judge O’Neill sentenced Joe Anthony Felix, 36, of Modesto, California, to 151 months imprisonment for racketeering conspiracy, and Jesus Gomez Felix, 32, of Modesto, to 30 months imprisonment for Assault With a Deadly Weapon in Aid of Racketeering Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney Phillip Talbert of the Eastern District of California announced.
According to court documents, Nuestra Familia is a prison gang that originally formed in the California state prison system in the 1960s. Nuestra Familia leaders control and direct the gang’s criminal activities both inside and outside of the prison system.
According to court documents, Romero has been a member of Nuestra Familia for about 20 years and has reached one of the highest levels of authority in Nuestra Familia. He ordered various crimes to be committed for the benefit of the gang in Stanislaus County, including aggravated assaults, robberies and drug dealing. Romero ordered a home invasion robbery in Turlock in which the robbers wielded firearms and made off with a vehicle and several other items. While Romero was in custody at the Stanislaus County Jail, he ordered the “removal” of several Nortenos who had violated Nuestra Familia rules. A “removal” involved assaulting the individuals with homemade weapons, as well as fists and feet. Several of the victims suffered stab wounds. Romero also directed a gang member to set up subsets of the gang throughout Stanislaus County, to collect money from the members, including from their drug trafficking activities and to put the funds on Romero’s books at Stanislaus County Jail.
Joe Felix was a Norteno, a gang under the Nuestra Familia umbrella, who was in charge of Stanislaus County and provided direction to other Nortenos to commit various crimes, including attempted murder and drug trafficking in Modesto. Joe Felix participated in an assault of two individuals who had dropped out of the gang. As a result of the attack, one of the victims suffered a fractured orbital bone and injury to his eye. Joe Felix also provided direction to other Nortenos regarding the sales of methamphetamine, and profited from the drug trafficking operation.
Jesus Felix went armed to the assault of the two gang drop-outs. He exchanged gunfire with someone from the opposing side during the incident. No one was shot.
“I would like to thank the United States Department of Justice and the hard work of the federal prosecutors who prosecuted this case,” said District Attorney Birgit Fladager for Stanislaus County. “We will remain committed to working collaboratively with our federal partners to pursue criminal gang members who commit violent crimes and pose a threat to the citizens of Stanislaus County.”
In addition to the prison term, Joe Felix is to serve 60 months of supervised release on the instant matter, and nine months imprisonment consecutive on a supervised release violation on a 2004 case. Jesus Felix is to serve three years of supervised release.
This case was investigated by the Central Valley Gang Impact Task Force under the FBI’s Safe Streets Initiative, with the assistance of the Stanislaus County District Attorney’s Office, Stanislaus County Sheriff’s Office, Modesto Police Department, Ceres Police Department, the California Highway Patrol, the California Department of Corrections and Rehabilitation, the Bureau of Prisons and the Stanislaus County Probation Department.
The case was prosecuted by Trial Attorneys Louis A. Crisostomo and Kelly Pearson of the Criminal Division’s Organized Crime and Gang Section and Assistant United States Attorneys Kimberly A. Sanchez and Laurel J. Montoya of the Eastern District of California.
Nuestra Familia Leader and Associates Sentenced on Racketeering ChargesRead the Press Release
FRESNO, Calif. — Two Nuestra Familia gang members were sentenced today for racketeering offenses, and a third defendant who held a leadership role in the gang was also recently sentenced, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney Phillip A. Talbert of the Eastern District of California announced.
Earlier today, United States District Judge Lawrence J. O’Neill sentenced Joe Anthony Felix, 36, of Modesto, to 12 years and seven months in prison for conspiring to engage in racketeering and sentenced him to an additional, consecutive term of nine months in prison for a supervised release violation on a 2004 case. Judge O’Neill also sentenced Jesus Gomez Felix, 32, of Modesto, today to two and a half years in prison for assault with a deadly weapon in aid of racketeering. Previously, on April 11, Gary Anthony Romero, 50, of Stockton, was sentenced to 20 years in prison for conspiring to engage in racketeering.
According to court documents, Nuestra Familia is a prison gang that originally formed in the California state prison system in the 1960s. Nuestra Familia leaders control and direct the gang’s criminal activities both inside and outside of the prison system.
According to court documents, Romero has been a member of Nuestra Familia for approximately 20 years and reached one of the highest levels of authority in Nuestra Familia. He ordered various crimes to be committed for the benefit of the gang in Stanislaus County, including aggravated assaults, robberies and drug dealing. Romero ordered a home invasion robbery in Turlock in which the robbers wielded firearms and made off with a vehicle and several other items. While Romero was in custody at the Stanislaus County Jail, he ordered the “removal” of several Nortenos who had violated Nuestra Familia rules. A “removal” involved assaulting the individuals with homemade weapons, as well as fists and feet. Several of the victims suffered stab wounds. Romero also directed a gang member to set up subsets of the gang throughout Stanislaus County to collect money from the members, including proceeds of their drug trafficking activities, and to put the funds in Romero’s account at Stanislaus County Jail.
Joe Felix was a Norteno, a gang under the Nuestra Familia umbrella, who provided direction to other Nortenos to commit various crimes, including attempted murder and drug trafficking in Modesto. Joe Felix participated and directed others to participate in an assault on two individuals who had dropped out of the gang. Jesus Felix participated in this assault and exchanged gunfire with someone from the opposing side during the incident. No one was shot, but as a result of the attack, one of the victims suffered a fractured orbital bone and injury to his eye. Joe Felix also directed the sales of methamphetamine by other Nortenos, and profited from the drug trafficking operation.
This case was the product of an investigation by the Central Valley Gang Impact Task Force under the FBI’s Safe Streets Initiative, with the assistance of the Stanislaus County District Attorney’s Office, the Stanislaus County Sheriff’s Office, the Modesto Police Department, the Ceres Police Department, the California Highway Patrol, the California Department of Corrections and Rehabilitation, the Bureau of Prisons, and the Stanislaus County Probation Department.
Stanislaus County District Attorney Birgit Fladager said, “I would like to thank the United States Department of Justice and the hard work of the federal prosecutors who prosecuted this case. We will remain committed to working collaboratively with our federal partners to pursue criminal gang members who commit violent crimes and pose a threat to the citizens of Stanislaus County.”
The case was prosecuted by Trial Attorneys Louis A. Crisostomo and Kelly Pearson of the Criminal Division’s Organized Crime and Gang Section and Assistant United States Attorneys Kimberly A. Sanchez and Laurel J. Montoya of the Eastern District of California.
Norwich Man Pleads Guilty to Federal Heroin Distribution ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that JONATHAN FISHER, 34, of Norwich, waived his right to indictment and pleaded guilty today in Hartford federal court to one count of possession with the intent to distribute, and distribution of, heroin.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on April 9, 2016, Norwich Police responded to a medical emergency at FISHER’s residence. The emergency involved an 18-year-old male who had died from an apparent heroin overdose. FISHER was not present at the time law enforcement had arrived. A search of the victim’s wallet revealed one used glassine baggy and 10 unopened baggies marked with a particular brand stamp. A field test of the substance in the baggies yielded a positive presence for both heroin and fentanyl.
Approximately one month prior to the overdose death, FISHER was arrested by Norwich Police after he was found in possession of numerous baggies of heroin that were marked with the same stamp.
On April 12, 2016, Norwich Police arrested FISHER at a Norwich hotel. A search of FISHER’s wallet contained two glassine baggies containing suspected heroin and marked with the same brand stamp. A search of the hotel room where FISHER had been staying revealed more than 300 bags of heroin, prescription narcotics, more than one pound of marijuana, a digital scale and hundreds of empty glassine bags marked with the same stamp.
FISHER was charged by federal complaint on April 20 and is detained. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on July 27, 2016. The offense carries a maximum term of imprisonment of 20 years.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Norwich Police Department. The Task Force includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon and Wilton Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Nikita Kuzmin, Creator of the Gozi Virus, Sentenced in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that NIKITA KUZMIN, the creator of “Gozi” malware, was sentenced in Manhattan federal court to time served (37 months). Gozi, which was used to steal money from bank accounts across the United States and Europe, infected over one million computers globally and caused tens of millions of dollars in losses. KUZMIN pled guilty, pursuant to a cooperation agreement, to various computer intrusion and fraud charges in May 2011. He was sentenced today by the Honorable Kimba M. Wood.
According to the charging and sentencing documents, and statements made in Manhattan federal court:
In approximately 2007, computer network security experts identified, for the first time, a form of malicious software, or malware, that was stealing victims’ personal bank account information on a widespread basis. The malware, which the experts named “Gozi” (and which is sometimes called the “Gozi Virus”) infected the victim’s computer, among other ways, when the victim received and opened a .pdf document that was designed to appear innocuous and relevant to the victim. Opening the .pdf caused Gozi to be downloaded onto the victim’s computer secretly, where it generally remained undetectable by anti-virus software. Once downloaded, the malware collected bank account-related data from the victim’s computer, including the username and password, to access the victim’s bank account online. The malware transmitted that data to the individuals who controlled the malware, which they used fraudulently to transfer money out of victims’ bank accounts. The network security experts subsequently identified a server that contained certain data stolen by Gozi, including 10,000 account records belonging to over 5,200 personal computer users. The records included login information for accounts at over 300 companies, including leading global banks and financial services firms.
Coordinated efforts between U.S. and foreign law enforcement ultimately led to the identification of KUZMIN, a Russian national, as the individual who controlled the malware. KUZMIN previously had significant computer science training, attending two major engineering universities in Russia and graduating with a computer science degree.
In addition to creating Gozi, KUZMIN developed an innovative means of distributing and profiting from it. Unlike many cybercriminals at the time, who profited from malware solely by using it to steal money, KUZMIN rented out Gozi to other criminals, pioneering the model of cybercriminals as service providers for other criminals. For a fee of $500 a week paid in WebMoney, a digital currency widely used by cybercriminals, KUZMIN rented the Gozi “executable,” the file that could be used to infect victims with Gozi malware, to other criminals. KUZMIN designed Gozi to work with customized “web injects” created by other criminals that could be used to enable the malware to target information from specific banks; for example, criminals who sought to target customers of particular American banks could purchase web injects that caused the malware to search for and steal information associated with those banks. Once KUZMIN’s customers succeeded in infecting victims’ computers with Gozi, the malware caused victims’ bank account information to be sent to a server that KUZMIN controlled where, as long as the criminals had paid their weekly rental fee, KUZMIN gave them access to it. KUZMIN, who used the online identity “76,” advertised this cybercriminal business, which he called “76 Service,” on underground cybercriminal forums. KUZMIN made at least a quarter of a million dollars renting and selling Gozi to other criminals.
In the course of the investigation, Gozi was found to have infected over one million computers across the United States, Germany, Great Britain, Poland, France, Finland, Italy, Turkey, and other countries. U.S. victims include individuals, companies, and others, including the National Aeronautics and Space Administration (“NASA”). Gozi caused at least tens of millions of dollars in losses to victims.
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In addition to the sentence, KUZMIN, 28, a citizen of Russia, was ordered to pay forfeiture and restitution in the amount of $6,934,979.
On January 5, 2016, Deniss Calovskis, a/k/a “Miami,” a Latvian national who wrote the computer code for certain “web injects” that enabled Gozi to target information from particular banks, was sentenced to time served (21 months) for his role in the offense. Mihai Ionut Paunescu, a/k/a “Virus,” a Romanian national who allegedly ran a “bulletproof hosting” service that enabled cybercriminals to distribute Gozi and other notorious malware, was arrested in Romania in December 2012 and currently awaits extradition to the United States.
Mr. Bharara praised the Federal Bureau of Investigation for its outstanding work in the investigation. He also specially thanked the NASA Office of Inspector General.
The case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Nicole Friedlander and Sarah Lai are in charge of the prosecution.
New York City Human Resources Administration Supervisor Pleads Guilty to Defrauding Two Public Assistance Programs of More Than $1.8 MillionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that CHERRISE WATSON-JACKSON, a/k/a “Reesie,” a supervisor with the New York City Human Resources Administration (“HRA”), pled guilty today to fraud offenses involving the theft of more than $1.8 million from two public assistance programs she helped to administer. WATSON-JACKSON, who was arrested in December 2015, entered her plea today before U.S. District Judge John G. Koeltl, and is scheduled to be sentenced by Judge Koeltl on August 5, 2016.
U.S. Attorney Bharara stated: “As she admitted today, Cherrise Watson-Jackson, a supervisor with the New York City Human Resources Administration, abused her official position to defraud public benefit programs out of nearly $2 million. Because of Watson-Jackson’s crimes, money meant for the needy went instead to the pockets of the corrupt.”
According to the Complaint, Superseding Indictment, other information in the public record, and today’s plea proceeding:
HRA is an agency of the City of New York responsible for administering various public assistance programs. Among other things, HRA provides temporary help to individuals and families with social service and economic needs to assist them in reaching self-sufficiency. Its services include, among other things, administering the federally-funded Supplemental Nutrition Assistance Program (“SNAP”) (more commonly known as “food stamps”), and providing rental assistance to low-income families and individuals.
Starting in 1993, WATSON-JACKSON worked at HRA, most recently as a supervisor in a job center in Queens, New York. In that capacity, she supervised a group of other supervisors who in turn were responsible for teams of employees who review and determine eligibility for public assistance clients. Since at least early 2012, and continuing until at least December 2013, WATSON-JACKSON abused her position by engaging in a scheme to defraud two of the public assistance programs that she was charged to help administer. The first of the two schemes involved WATSON-JACKSON fraudulently loading electronic benefit transfer (“EBT”) cards with funds from SNAP, and the cards were then used by co-conspirators throughout the New York City area. The second scheme involved WATSON-JACKSON fraudulently causing rental assistance checks to be mailed to co-conspirators who posed as “landlords” of low-income tenants. Co-conspirators then cashed and/or assisted others to cash the fraudulently obtained checks. The two schemes resulted in the loss of more than $1.8 million in public funds.
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WATSON-JACKSON, 45, of Queens, New York, pled guilty to one count of conspiracy to commit mail fraud and one count of conspiracy to commit wire fraud, each of which carries a statutory maximum of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
In connection with pleading guilty, WATSON-JACKSON also agreed to forfeit more than $1.8 million and to pay restitution of more than $1.8 million.
WATSON-JACKSON was arrested in December 2015, along with alleged co-conspirators Maurice Cromwell, a/k/a “Reese,” 40, of Staten Island, New York; Isaac Allen, 39, of Brooklyn, New York; Corey Brock, a/k/a “Cee,” 35, of Queens, New York; Derrick Williams, a/k/a “Blood,” 35, of Queens, New York; Vernecka Petersen-Fowler, 45, of Brooklyn, New York; Kevin Williams, 28, of Queens, New York; Jaron Annuziata, 36, of Brooklyn, New York; Beverly Franklin, 38, of Queens, New York; Beverly Lord, 54, of Queens, New York; Yesenia Depena, 24, of Brooklyn, New York; and Gerard Stokes, 32, of Queens, New York. To date, all defendants except Lord, Depena, and Stokes have pled guilty to their participation in one or both fraudulent schemes, and are scheduled to be sentenced by Judge Koeltl in the coming months.
U.S. Attorney Bharara thanked and praised the work of the New York City Department of Investigation, the New York State Office of Welfare Inspector General, and the Federal Bureau of Investigation.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Daniel C. Richenthal and Andrew D. Beaty are in charge of the prosecution.
The pending charges against Beverly Lord, Yesenia Depena, and Gerard Stokes are merely accusations, and these defendants are presumed innocent unless and until proven guilty.
New Orleans Jury Convicts Company Owner for Directing $3 Million Fraud and Kickback SchemeRead the Press Release
On Saturday, a jury in New Orleans convicted the owner of a health care company for her role in a $3.2 million Medicare fraud scheme operating in and around New Orleans.
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 Division and Special Agent in Charge CJ Porter of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG)’s Dallas Regional Office made the announcement.
Tracy Richardson Brown, 46, of New Orleans, was convicted of 18 counts after a five-day trial before U.S. District Judge Stanwood R. Duval Jr. of the Eastern District of Louisiana. Brown was convicted of one count of conspiracy to commit health care fraud, nine counts of health care fraud, one count of conspiracy to pay illegal kickbacks and seven counts of paying illegal kickbacks. Brown’s sentencing hearing is scheduled for Aug. 10, 2016.
Evidence introduced at trial showed that Brown owned and operated Psalms 23 DME LLC (Psalms) and caused Psalms to bill Medicare for durable medical equipment and orthotics that were not needed and/or were not provided. Brown paid patient recruiters for the names and Medicare numbers of Medicare recipients in and around New Orleans and then used these Medicare numbers to bill Medicare, claiming that Psalms provided them power wheelchairs, accessories and orthotics. Trial evidence showed that a vast majority of these patients did not need and often did not receive, or even want, the equipment. Evidence also revealed that Brown engaged in “upcoding,” billing Medicare as if she provided these patients with high-cost back and knee braces, when she in fact provided them much cheaper versions of these braces. Brown caused Psalms to bill Medicare for more than $3.2 million in claims, a large number of which were fraudulent. Medicare paid Psalms approximately $1.9 million on these claims.
This case was investigated by the FBI and HHS-OIG and 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 for the Eastern District of Louisiana. This case was prosecuted by Assistant U.S. Attorney Patrice Sullivan of the Eastern District of Louisiana and Trial Attorney William Kanellis of the Criminal Division’s Fraud Section.
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 for Directing $3 Million Fraud and Kickback SchemeRead the Press Release
WASHINGTON – On Saturday, a jury in New Orleans convicted the owner of a health care company for her role in a $3.2 million Medicare fraud scheme operating in and around New Orleans.
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 Division and Special Agent in Charge CJ Porter of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG)’s Dallas Regional Office made the announcement.
Tracy Richardson Brown, 46, of New Orleans, was convicted of 18 counts after a five-day trial before U.S. District Judge Stanwood R. Duval Jr. of the Eastern District of Louisiana. Brown was convicted of one count of conspiracy to commit health care fraud, nine counts of health care fraud, one count of conspiracy to pay illegal kickbacks and seven counts of paying illegal kickbacks. Brown’s sentencing hearing is scheduled for Aug. 10, 2016.
Evidence introduced at trial showed that Brown owned and operated Psalms 23 DME LLC (Psalms) and caused Psalms to bill Medicare for durable medical equipment and orthotics that were not needed and/or were not provided. Brown paid patient recruiters for the names and Medicare numbers of Medicare recipients in and around New Orleans and then used these Medicare numbers to bill Medicare, claiming that Psalms provided them power wheelchairs, accessories and orthotics. Trial evidence showed that a vast majority of these patients did not need and often did not receive, or even want, the equipment. Evidence also revealed that Brown engaged in “upcoding,” billing Medicare as if she provided these patients with high-cost back and knee braces, when she in fact provided them much cheaper versions of these braces. Brown caused Psalms to bill Medicare for more than $3.2 million in claims, a large number of which were fraudulent. Medicare paid Psalms approximately $1.9 million on these claims.
This case was investigated by the FBI and HHS-OIG and 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 for the Eastern District of Louisiana. This case was prosecuted by Assistant U.S. Attorney Patrice Sullivan of the Eastern District of Louisiana and Trial Attorney William Kanellis of the Criminal Division’s Fraud Section.
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.justice.gov/criminal-fraud/health-care-fraud-unit.
National Prescription Drug Take Back Day, April 30, 2016Read the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), together with Drug Enforcement Administration (DEA) Resident Agent in Charge Michael Puralewski, announced that the National Prescription Drug Take Back Day was held on Saturday, April 30, 2016.
The first National Prescription Drug Take-Back Day event was held nationwide in September 2010. Guam and the NMI have participated every year since. The purpose of the National Drug Take-Back Initiative is to help prevent increased pill abuse and theft, to encourage the public to rid their household of unused prescription drugs that pose a safety hazard and can contribute to prescription drug abuse, and to provide a venue for persons who want to dispose of unwanted and unused prescription drugs for safe disposal by DEA.
The following sites in Guam and in the NMI were designated to receive unused prescription drugs:
- Naval Base Guam (Navy Exchange Food Court)
- Agana Shopping Center (Across Vitamin World)
- Agat Village Mayor's Office
- Andersen Air Force Base (Exchange & Commissary)
- Dededo Village Mayor’s Office
- Rota Health Center
- Saipan Commonwealth Health Center
- Tinian Health Center
Take-back programs are the best way to dispose of old drugs. Unused or expired prescription medications are a public safety issue, leading to accidental poisoning, overdose, and abuse. Pharmaceutical drugs can be just as dangerous as street drugs when taken without a prescription or a doctor’s supervision. The majority of teenagers abusing prescription drugs get them from family and friends – and the home medicine cabinet.
The non-medical use of prescription drugs ranks second only to marijuana as the most common form of drug abuse in America. Unused prescription drugs thrown in the trash can be retrieved and abused or illegally sold. Unused drugs that are flushed contaminate the water supply. Proper disposal of unused drugs saves lives and protects the environment.
For more information on prescription drug abuse, go to: www.dea.gov, www.getsmartaboutdrugs.com, or www.justthinktwice.com.
Monroe County Woman Pleads Guilty to Heroin Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Monroe County woman connected to a heroin trafficking ring that operated in Monroe County and elsewhere during 2012 through March 2015, pleaded guilty today before Senior U.S. District Court Judge James M. Munley in Scranton.
According to United States Attorney Peter Smith, Shawnette Isaac, age 39, of Marshalls Creek, pleaded guilty to conspiracy to distribute heroin and cocaine. Isaac admitted to traveling to New Jersey on several occasions to obtain a total of more than 80 grams of heroin, which is equivalent to approximately 2600 retail bags of heroin, for distribution to others in the Monroe County area.
Isaac was indicted by a federal grand jury in Scranton in March 2015. The charges were the result of an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police in Monroe County.
Judge Munley ordered a presentence investigation to be completed, and scheduled sentencing for August 2, 2016.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Milford Man Sentenced to 51 Months on Bank Robbery ChargeRead the Press Release
CONCORD, NEW HAMPSHIRE: Seamus Murphy, 34, of Milford, New Hampshire, was sentenced in the United States District Court for the District of New Hampshire for bank robbery, announced United States Attorney Emily Gray Rice. The Court imposed a term of 51 months imprisonment, three years of supervised release, and full restitution to the victim bank.
Murphy walked into a Citizens Bank in Stratham, New Hampshire, on February 24, 2015 and gave the teller a note demanding money. The teller gave Murphy a quantity of United States currency. Surveillance cameras captured images of the robbery which were broadcast on local news outlets. Numerous individuals identified Murphy from the photographs and he was apprehended in Massachusetts the next day.
“The Stratham Police and Federal Bureau of Investigation did a great job of tracking this suspect to a neighboring state, successfully apprehending him, and bringing this case to justice,” stated United States Attorney Emily Rice. “Bank robbery, even an unarmed bank robbery, is an inherently dangerous crime that causes great turmoil to its victims. We will continue to work with our state and local partners to vigorously prosecute these serious offenses.”
This case was investigated by the Stratham Police Department and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Georgiana L. Konesky.
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Member of a Baltimore Drug Organization Sentenced to 10 Years in Prison for Conspiring to Distribute over 1,000 Kilograms of Marijuana and to Launder Drug ProceedsRead the Press Release
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced David D’Amico, age 49, of Baltimore, today to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute at least 1,000 kilograms of marijuana and conspiracy to commit money laundering. Judge Titus also ordered D’Amico to pay a money judgment of $1 million.
D’Amico, and his co-conspirators Matthew Nicka and Gretchen Peterson had been fugitives since the indictment was returned in December 2010. Nicka and Peterson were arrested in Canada in early August 2013, and D’Amico was extradited from Colombia, South America. All three pleaded guilty on January 13, 2016.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Henry P. Stawinski of the Prince George’s County Police Department; Chief James W. Johnson of the Baltimore County Police Department; and Commissioner Kevin Davis of the Baltimore Police Department.
According to D’Amico’s plea agreement and other court documents, D’Amico was part of an extensive drug trafficking operation which was discovered by the DEA when they executed a search warrant at a residence in the 3500 block of Hickory Avenue in Baltimore on March 18, 2009. The residence was a center of operation for the group. Agents seized more than 80 pounds of marijuana, $20,000 in cash, 31 cell phones, documents regarding a plane purchased for $450,000, tally sheets showing over $14.5 million in marijuana sales, four money counters and false identifications.
As part of the conspiracy, D’Amico and his co-conspirators obtained large quantities of marijuana grown in Canada and northern California, which they transported by plane, tractor trailer and trains, to warehouses in Maryland. The marijuana was then divided for distribution in Maryland, Pennsylvania, Louisiana, Kansas, Florida, Ohio, North Carolina, Georgia and elsewhere. The conspirators used multiple cellular telephones to avoid detection by law enforcement, as well as aliases and false identifications to conceal their activities. D’Amico oversaw the day-to-day operations, received orders for marijuana, collected money, arranged for the purchase, operation and rental of planes used to transport marijuana and cash, arranged for the transportation and storage of marijuana, and transported bulk cash payments to marijuana suppliers. D’Amico also counted drug proceeds with other conspirators at a stash house in Baltimore.
From 2007 through June 2009, D’Amico used aliases and false identifications, and created and used shell corporations to hold and hide assets, conduct financial transactions, title vehicles, convert assets, and to conceal the source, ownership and control of the proceeds from the marijuana distribution. D’Amico and his co-conspirators structured financial transactions to avoid IRS filing requirements for transactions involving more than $10,000 in cash payments in a single transaction, and further conceal from the government large cash transactions using drug proceeds.
A total of 15 defendants, including D’Amico, Nicka and Peterson, have been convicted in this case. The other 12 defendants have already been sentenced to up to 121 months in prison.
Matthew Nicka, age 43, of Baltimore, his wife, Gretchen Peterson, age 34, of Kennett Square, Pennsylvania, and the government have agreed that if the Court accepts their plea agreements, Nicka will be sentenced to between 168 months and 228 months in prison; and Peterson will be sentenced to between 84 months and 144 months in prison. Judge Titus has scheduled sentencing for Nicka on May 9, 2016, and for Peterson on September 8, 2016.
United States Attorney Rod J. Rosenstein praised the DEA, IRS-CI, and the Montgomery County, Prince George’s County, Baltimore County and Baltimore City Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Deborah A. Johnston, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Man Charged with Wire Fraud and Id TheftRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned an eight-count indictment charging Emmanuel Guobadia, 41, formerly of Atlanta, Georgia, with wire fraud and aggravated identity theft. The wire fraud charge carries a maximum penalty of 20 years in prison, a fine of $250,000 or both, and the aggravated identity theft charge carries a maximum penalty of two years in prison which would run consecutively to the sentence imposed for the wire fraud violation.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, state that according to the indictment, the defendant committed fraud against the Internal Revenue Service by electronically filing false and fraudulent income tax returns and claiming refunds to which he was not entitled. The case came to the IRS’s attention when it was discovered that a bank account in the Western District of New York was being used to facilitate the attempted refund claims for over 600 fraudulent tax returns, claiming over $1,200,000 in fraudulent tax refunds. The IRS refunded and deposited over $178,000 into this bank account. The investigation revealed that between May 2012 and July 2012, for 37 of the over 600 false claims which resulted in refunds to the bank account in the Western District of New York, most of the money was then wired to the defendant’s bank account in Georgia.
The indictment is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, Criminal Investigations, under the direction of Shantelle Kitchen, Special Agent in Charge of the New York Field Office.The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Lewis County, WV man sentenced for synthetic drug traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – John R. Burrows, 54, of Weston, West Virginia, was sentenced today to 60 months in prison for synthetic drug trafficking, United States Attorney William J. Ihlenfeld, II, announced.
In April 2014, Burrows sold a synthetic cannabinoid known as AM-2201 in a package labeled “Crown Worthy.” When depositing proceeds from the sale of these drugs into his bank accounts, he structured those deposits so as to avoid the reporting requirements of the Internal Revenue Service.
Burrows pled guilty in November 2015 to an Information charging him with one count of “Distribution of a Schedule I Drug – Controlled Substance,” and one count of “Structuring Transactions to Evade Reporting Requirement.” He was sentenced today to 60 months in prison on each count. The sentences will run concurrently for a total of 60 months in prison.
Assistant U.S. Attorney Robert McWilliams prosecuted the case on behalf of the government. The West Virginia State Police and the Internal Revenue Service - Criminal Investigation led the inquiry.
U.S. District Judge Irene M. Keeley presided.
Leadership of Local OKC Street Gang and Affiliates Convicted of Operating Million Dollar Crack Cocaine Distribution RingRead the Press Release
Oklahoma City, Oklahoma – Last Thursday, a federal jury convicted Daryl Lee Ingram, Michael Eugene Banks, and Michael Shandelon Brown, all from Oklahoma City, of conspiring to distribute cocaine base (crack) in a million-dollar drug distribution ring, announced Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma. In addition, all three were found guilty of conspiring to launder the proceeds of that drug-distribution ring.
The trial was a culmination of a long-term investigation into the senior leadership of a local street gang in Oklahoma City. According to evidence presented at trial and court records, Ingram and Banks were both high-ranking gang members and large-scale cocaine base distributors in Oklahoma City. Evidence showed that these two were assisted by a number of other individuals in the gang or affiliates, including Brown. As part of these conspiracies, Ingram, Banks, and Brown also involved family members and friends to hide the profits from illegal drug sales. Typical of the conspiracy, co-conspirators would purchase blank $1,000 money orders and mail them to California, where they were cashed by other co-conspirators for the benefit of the conspiracy. The drugs and money recovered during the investigation, as well as the money accounted for in seized drug ledgers, revealed that this group was responsible for distributing cocaine base with a street value well in excess of one million dollars.
Ten people have been charged and convicted as a result of this investigation. All pled guilty to offenses identified below, except for Ingram, Banks and Brown who went to trial. The trial lasted approximately 11 days. The jury deliberated approximately 5 hours before finding the three men guilty.
All defendants are awaiting sentencing. Both Ingram and Banks face mandatory life sentences as a result of their conviction. The following summarizes the charges associated with each of the defendants and the potential sentence they face:
#
Name
Age & Hometown
Conviction Offenses
Date of Conviction
Potential Sentence
1
Daryl Lee Ingram (aka “Black” “Clacc” “Ninety Black” “BJ”)
37, Oklahoma City
Conspiracy to distribute cocaine base; conspiracy to commit money laundering of drug proceeds; manufacturing cocaine base; money laundering
Convicted at trial on April 28, 2016
Mandatory Life in Prison
2
Michael Eugene Banks (aka “Bird” “Birdie” and “Tiny Bird”)
36, Oklahoma City
Conspiracy to distribute cocaine base; conspiracy to commit money laundering of drug proceeds; manufacturing cocaine base; possession of cocaine base with intent to distribute; illegally possessing firearms to further a drug trafficking crime; possession of a firearm by a felon; money laundering; and witness tampering by threatening a government witness
Convicted at trial on April 28, 2016
Mandatory Life in Prison
3
Michael Shandelon Brown (aka “Kaos” and “Ozz”)
36, Oklahoma City
Conspiracy to distribute cocaine base; and conspiracy to commit money laundering of drug proceeds
Convicted at trial on April 28, 2016
Up to Life in Prison
4
Anthony Ray Anderson
40, Oklahoma City
Maintaining a drug-involved premises
Guilty Plea on April 12, 2016
Up to 20 Years in Prison
5
Linda Donell Banks
56, Oklahoma City
Money laundering of drug proceeds
Guilty plea on August 6, 2015
Up to 20 Years in Prison
6
Raven Tanike Barnes
37, Oklahoma City
Money laundering of drug proceeds
Guilty plea on August 5, 2015
Up to 10 Years in Prison
7
Aundre T Cade
35, Oklahoma City
Possession of cocaine base with intent to distribute
Guilty plea on
October 19, 2015
Up to Life in Prison
8
Brittany Jamelia Frazier
26, Midwest City
Possession of cocaine base
Guilty plea on November 13, 2015
Up to 1 Year in Prison
9
Xavier Jorge Guerrero
43, Los Angeles, CA
Money laundering of drug proceeds
Guilty plea on April 11, 2016
Up to 20 Years in Prison
10
Satin Sierre Watley
24, Oklahoma City
Money laundering of drug proceeds
Guilty plea on June 18, 2015
Up to 20 Years in Prison
These convictions were the result of a joint investigation between the Oklahoma City Police Department, the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, and the United States Postal Inspection Service. This case was prosecuted by Assistant U.S. Attorneys David McCrary, Kate Holey, and Virginia L. Hines.
Leaders of Violent Drug Trafficking Organization ConvictedRead the Press Release
Two men who led a violent drug trafficking organization distributing meth, heroin and cocaine in the Seattle area were convicted April 28th of numerous counts of drug trafficking and one count of money laundering following a seven day jury trial, announced U.S. Attorney Annette L. Hayes. The jury deliberated for seven hours before returning the guilty verdicts against SON V. TRAN, 29, and TUAN A VU, 50, both of Seattle. The two year investigation lead by the FBI’s Seattle Safe Streets Task Force (SSTF) and Bellevue Police Department’s Eastside Narcotics Task Force (ENTF), revealed that the organization distributed cocaine, crack cocaine, heroin and methamphetamine across a wide swath of the greater Seattle metro area.
According to court records and testimony at trial, beginning in February 2013 law enforcement authorities used a variety of tools including telephone wire taps and confidential sources to infiltrate and interdict this drug organization. The investigation determined that the organization distributed approximately 15-20 kilos of cocaine, 10-15 kilos of heroin and 5 kilos of methamphetamine per month. In addition, on multiple occasions members of the drug trafficking organization were arrested with firearms. During the investigation law enforcement seized drugs and cash including a September 2014 seizure of two kilos of cocaine, one pound of methamphetamine and $14,000 cash from a rental car. In March 2015, investigators seized more than $32,000 from a hidden compartment in another vehicle. At the end of the investigation, additional drugs and more than $100,000 in cash was seized from TRAN and VU’s residences.
Drug activity associated with the organization occurred over a wide geographic area with many drug sales occurring in the “Jungle” homeless encampment, as well as at homes and near businesses in Seattle, Renton, Shoreline and Kent. The drug transactions occurred in areas ranging from the parking lot of Viet Wah supermarket near South Jackson Street, the parking lot of Dick’s Drive-In on NE 45th Street, the parking lot of a gas station on Beacon Hill, and at a motel in Tukwila.
Both Son V. Tran and Tuan A. Vu were convicted of conspiracy to distribute controlled substances. Son V. Tran was also convicted of fifteen separate counts of distribution of controlled substance or possession of controlled substance with intent to distribute offenses. Tuan A Vu was similarly convicted of eleven separate distribution of controlled substance or possession of controlled substance offenses. Both men face up to life in prison when sentenced by U.S. District Judge John C. Coughenour on August 16, 2016.
These defendants have already pleaded guilty and are scheduled for sentencing in the months ahead:
Cuong T. Le, 57, of Federal Way, Washington
Niem H. Doan, aka “Linh,” 36, of Everett, Washington
Huy V. Tran, 39, of Seattle, Washington
Son T. Nguyen, aka “Nine Fingers” aka “Kim,” 42, of Seattle, Washington
Tam C. Nguyen, aka “Andy,” 39, of Tukwila, Washington
Long V. Trong aka “Black Long,” 42, of Seattle, Washington
Vinh Q. Nguyen, 29, of Seattle, Washington
Giang T. Ngo, aka “Uncle Jack,” 51, of Burien, Washington
Phuong H. Nguyen, aka “LJ,” 30, of Kent, Washington
Kenneth W. Thomas, 55, of SeaTac, Washington
Donald K. Jordan, aka “Looney,” 34, of Seattle, Washington
Donald C. Scholoff, 47, of Edmonds, Washington
Steven J. Connell, 47, of Seattle, WashingtonThese defendants have already pleaded guilty and been sentenced to prison:
Phuong A. Nguyen, aka “P,” 42, of Kent, Washington – 12 years
Brieanna K. Carlson, 27, of Seattle, Washington – three years
Kimberle S. Alojasin, aka “Nguyen,” 56, of South King County, Washington – four years
Kenneth W. Thomas, 55, of SeaTac, Washington – four years
Yen T. Vu, 55, of Seattle – three years
Tony V. Nguyen, 23, of Seattle – two years
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. This investigation was led by the FBI’s Seattle Safe Streets Task Force (SSTF) and Bellevue Police Department’s Eastside Narcotics Task Force (ENTF). The SSTF includes task force officers from the Seattle Police Department, and the ENTF is composed of Bellevue Police Department officers, and agents and officers from the Washington State Patrol, US Postal Inspection Service, and the Redmond, Kirkland, and Mercer Island police departments in partnership with the King County Prosecuting Attorney’s Office. Additional assistance was provided by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Drug Enforcement Administration (DEA) and ICE’s Homeland Security Investigations (HSI), King County Sheriff’s Office, the Washington State Department of Corrections, and the Kent and Tukwila police departments, and the Seattle Fire Department.
The case is being prosecuted by Assistant United States Attorneys Vince Lombardi and Kate Vaughan.
Justice Department Finds South Dakota Unnecessarily Relies on Nursing Facilities to Provide Services to People with DisabilitiesRead the Press Release
Following a comprehensive investigation, today, the Justice Department released its findings that South Dakota unnecessarily relies on nursing facilities to provide services to people with disabilities, in violation of the community integration mandate of the Americans with Disabilities Act (ADA) and the Supreme Court’s decision in Olmstead v. L.C.
South Dakotans with disabilities do not have a meaningful choice to receive the services they need in their own homes and communities. The ADA and the Olmstead ruling require states to make services available to people with disabilities in the most integrated setting appropriate to their needs, regardless of age or type of disability.
The department’s findings, detailed in a letter to South Dakota Governor Dennis Daugaard, follow an investigation into the state’s system of care for people who receive services and supports in nursing facilities. The department found that thousands of people who rely on South Dakota for needed services must live in nursing facilities to receive those services, isolated from their communities. With access to adequate home- and community-based services, these individuals could instead live in their homes and communities.
“Regardless of their age, people with disabilities deserve privacy, autonomy and dignity in their everyday lives,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Our findings reveal how South Dakota’s current system of long-term care violates federal law and fails to give people with disabilities the choice to live in their own homes and their own communities. South Dakota officials have expressed their desire to provide meaningful opportunities for people with disabilities to receive home- and community-based care, and we look forward to working with South Dakota to build a more effective, more efficient and more just service system for all.”
An analysis of South Dakota’s current spending and national data shows that South Dakota – which has one of the highest nursing facility utilization rates in the country – may even realize cost savings and be able to serve more people by increasing the state’s use of home- and community-based services. The state funds the placement of about 3,400 people in nursing facilities through Medicaid at any given time, and approximately 5,500 people over the course of one year.
Nursing facility residents in South Dakota range in age, and include many older adults and almost 450 people under the age of 65. In addition to older adults with age-related disabilities, many of these individuals have disabilities they were born with or acquired at a young age, such as cerebral palsy, multiple sclerosis and amputations due to diabetes or mobility impairments due to an accident.
The findings letter examines the widespread impact of the state’s nursing facility system. For example, one 51-year-old man told the Justice Department that he had entered the nursing facility to recover after a leg amputation, but had been trying to leave the nursing facility for months, without help.
The department’s findings letter includes the following key conclusions:
- Thousands of people who need long-term care have no choice but a nursing facility because South Dakota does not adequately arrange for community-based services or identify residents appropriate for transition.
- Many people who rely on state services do not know that they could choose community-based services instead of a nursing facility because the state has not informed them of or offered them these services.
- South Dakota spends more than 80 percent of its long-term services budget on nursing facilities but could rebalance these funds to prioritize home- and community-based services.
- Most residents have physical disabilities, chronic illnesses or cognitive disabilities and need some assistance with some day-to-day tasks, rehabilitative therapy or nursing –services that the state can provide in community-based settings rather than in institutions.
- People with similar needs to those living in South Dakota’s nursing facilities successfully receive services at home in other states, and even in South Dakota. The state already offers many of the services people will need to live in their own homes and can increase community capacity and address service limitations to ensure all individuals can choose these services instead of nursing facility placement.
- People with disabilities living in rural and frontier areas of the state, including those living on reservations, have particular difficulty accessing services in their homes and communities.
The full findings letter can be found at www.ada.gov. Please visit www.ada.gov/olmstead to learn more about the division’s ADA Olmstead enforcement efforts, and www.justice.gov/crt to learn more about the laws enforced by the Justice Department’s Civil Rights Division. Additional information about the U.S. Attorney’s Office of the District of South Dakota is available on its website at www.justice.gov/usao-sd.
The investigation was conducted by the Civil Rights Division with assistance by the U.S. Attorney’s Office of the District of South Dakota. The United States is represented by Trial Attorneys Alexandra Shandell, Joshua Rogers and Mathew Schutzer of the Civil Rights Division’s Special Litigation Section and Assistant U.S. Attorney Alison Ramsdell of the District of South Dakota.
South Dakota Findings Letter
Jamaican National Sentenced to Prison to Passport FraudRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARK ANTHONY GOULDBOURNE, 42, of Hartford, Conn. and Brooklyn, N.Y., was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to nine months of imprisonment for making a false statement in a passport application.
According to court documents and statements made in court, GOULDBOURNE is a native and citizen of Jamaica. In March 2011, he submitted an application for a U.S. passport, in the name of his brother, at a U.S. Post Office in Hartford. Claiming to be his brother, who is a U.S. citizen, GOULDBOURNE presented to the passport acceptance agent a New York birth certificate and a Pennsylvania identity card, and then signed the passport application under oath. Passport authorities flagged the application as possibly fraudulent and did not issue the passport.
In May 2015, law enforcement determined that GOULDBOURNE was an inmate at Hartford Correctional Center under the same identity used in the fraudulent passport application. In an interview with law enforcement on May 7, 2015, GOULDBOURNE admitted that he had submitted the fraudulent passport application in March 2011, and that he had obtained the Pennsylvania identity card in his brother’s name.
On December 15, 2015, GOULDBOURNE waived indictment and pleaded guilty to one count of making a false statement in a passport application. He will be subject to deportation proceedings upon the completion of his federal sentence.
The case was investigated by the U.S. Department of State, Diplomatic Security Service. The case is being prosecuted by Assistant United States Attorney Hal Chen.
Justice Department Finds South Dakota Unnecessarily Relies on Nursing Facilities to Provide Services to People with DisabilitiesRead the Press Release
WASHINGTON – Following a comprehensive investigation, today, the Justice Department released its findings that South Dakota unnecessarily relies on nursing facilities to provide services to people with disabilities, in violation of the community integration mandate of the Americans with Disabilities Act (ADA) and the Supreme Court’s decision in Olmstead v. L.C.
South Dakotans with disabilities do not have a meaningful choice to receive the services they need in their own homes and communities. The ADA and the Olmstead ruling require states to make services available to people with disabilities in the most integrated setting appropriate to their needs, regardless of age or type of disability.
The department’s findings, detailed in a letter to South Dakota Governor Dennis Daugaard, follow an investigation into the state’s system of care for people who receive services and supports in nursing facilities. The department found that thousands of people who rely on South Dakota for needed services must live in nursing facilities to receive those services, isolated from their communities. With access to adequate home- and community-based services, these individuals could instead live in their homes and communities.
“Regardless of their age, people with disabilities deserve privacy, autonomy and dignity in their everyday lives,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Our findings reveal how South Dakota’s current system of long-term care violates federal law and fails to give people with disabilities the choice to live in their own homes and their own communities. South Dakota officials have expressed their desire to provide meaningful opportunities for people with disabilities to receive home- and community-based care, and we look forward to working with South Dakota to build a more effective, more efficient and more just service system for all.”
An analysis of South Dakota’s current spending and national data shows that South Dakota – which has one of the highest nursing facility utilization rates in the country – may even realize cost savings and be able to serve more people by increasing the state’s use of home- and community-based services. The state funds the placement of about 3,400 people in nursing facilities through Medicaid at any given time, and approximately 5,500 people over the course of one year.
Nursing facility residents in South Dakota range in age, and include many older adults and almost 450 people under the age of 65. In addition to older adults with age-related disabilities, many of these individuals have disabilities they were born with or acquired at a young age, such as cerebral palsy, multiple sclerosis and amputations due to diabetes or mobility impairments due to an accident.
The findings letter examines the widespread impact of the state’s nursing facility system. For example, one 51-year-old man told the Justice Department that he had entered the nursing facility to recover after a leg amputation, but had been trying to leave the nursing facility for months, without help.
The department’s findings letter includes the following key conclusions:
- Thousands of people who need long-term care have no choice but a nursing facility because South Dakota does not adequately arrange for community-based services or identify residents appropriate for transition.
- Many people who rely on state services do not know that they could choose community-based services instead of a nursing facility because the state has not informed them of or offered them these services.
- South Dakota spends more than 80 percent of its long-term services budget on nursing facilities but could rebalance these funds to prioritize home- and community-based services.
- Most residents have physical disabilities, chronic illnesses or cognitive disabilities and need some assistance with some day-to-day tasks, rehabilitative therapy or nursing –services that the state can provide in community-based settings rather than in institutions.
- People with similar needs to those living in South Dakota’s nursing facilities successfully receive services at home in other states, and even in South Dakota. The state already offers many of the services people will need to live in their own homes and can increase community capacity and address service limitations to ensure all individuals can choose these services instead of nursing facility placement.
- People with disabilities living in rural and frontier areas of the state, including those living on reservations, have particular difficulty accessing services in their homes and communities.
The full findings letter can be found at www.ada.gov. Please visit www.ada.gov/olmstead to learn more about the division’s ADA Olmstead enforcement efforts, and www.justice.gov/crt to learn more about the laws enforced by the Justice Department’s Civil Rights Division. Additional information about the U.S. Attorney’s Office of the District of South Dakota is available on its website at www.justice.gov/usao-sd.
The investigation was conducted by the Civil Rights Division with assistance by the U.S. Attorney’s Office of the District of South Dakota. The United States is represented by Trial Attorneys Alexandra Shandell, Joshua Rogers and Mathew Schutzer of the Civil Rights Division’s Special Litigation Section and Assistant U.S. Attorney Alison Ramsdell of the District of South Dakota.
Hurlburt Field Intelligence Squadron Member Pleads Guilty to Committing Federal Child Pornography Crimes on BaseRead the Press Release
PENSACOLA, FLORIDA – Douglas J. Plate, 53, of Navarre, Florida, a federal employee at Hurlburt Field, pled guilty today to receipt, possession, and access with intent to view child pornography. The guilty plea was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In December 2015, the United States Air Force determined that Plate, who worked in a sensitive facility with a top secret security clearance, was searching for pornography online at his work station and residence. A forensic review of his work and laptop computers revealed a significant amount of accessed pornography, including sexualized images of minor females. Additionally, Plate admitted to using foreign language search terms to avoid detection.
For the receipt of child pornography charge, Plate faces a mandatory minimum of 5 years and a maximum of 20 years in prison. For the possession and access with intent to view child pornography charge, Plate faces a maximum of 20 years in prison. The sentencing hearing is scheduled for July 12, 2016, at 12:30 p.m. at the United States Courthouse in Pensacola.
The case is being investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations and the Air Force Office of Special Investigations. Assistant United States Attorney David L. Goldberg is prosecuting the case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Highland Resident Sentenced for Child Pornography OffensesRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that on April 29, 2016, Richard Hogg, 56, Highland, IL, was sentenced on an Indictment charging him, in Count 1, with Distribution of Child Pornography; in Counts 2 and 3, with Receipt of Child Pornography; in Count 4, with Access with Intent to View Child Pornography; and, in Count 5, with Possession of Prepubescent Child Pornography. Hogg received 210 months in federal prison on Counts 1-3 and 5 and 120 months on Count 4, all to run concurrently, to be followed by15 years of supervised release on each count, also to run concurrently, and was ordered to pay a $500 special assessment. Hogg was also ordered, pursuant to a plea agreement with the United States, to pay restitution in the amount of $2,000 to each of three victims depicted in the images and/or videos of child pornography that he distributed, received and/or possessed, and to forfeit the electronic media that contained these images and/or videos of child pornography. Hogg has been detained since he entered his guilty plea on January 25, 2016.
The charges arose after the FBI found information on the internet that Hogg had engaged in a sexually explicit chat with what he apparently believed to be a minor female, as well as other reports of Hogg soliciting minors to engage in sex acts. Based on this information, on February 3, 2015, the FBI went to Hogg’s residence. Hogg agreed to provide a voluntary statement, in which he admitted chatting online with a girl he believed to be sixteen years old who resided in New York, and that the chats were sexual in nature.
Hogg stated that he began viewing pornography in 2007, and that he gradually started viewing younger females. When asked if images of prepubescent children would be found on his computer, he replied in the affirmative. When asked what the pictures he owned showed with respect to the minor females, he replied "everything." When asked how often he chatted with young females online, he said that it likely occurred a "few times a month." Hogg estimated that he had approximately 1,000 images and four videos of child pornography on his computers, and that they would be found in the "My Pictures" folder on his computers. Hogg said that the images typically included a "dad" with their children.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case was investigated by the Federal Bureau of Investigation's Springfield Child Exploitation Task Force. The case was assigned to Assistant United States Attorney Angela Scott.
Hickory, N.C. Physician Sentenced to 18 Months in Prison for Health Care FraudRead the Press Release
CHARLOTTE, N.C. – A Hickory physician was sentenced to 18 months in prison today on health care fraud charges for submitting to Medicaid and Medicare over $467,376 in fraudulent reimbursement claims, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Wayne Vincent Wilson, 55, was also ordered to serve one year of supervised release and to pay $208,112.58 as restitution to Medicaid and $2,148.08 to Medicare.
U.S. Attorney Rose is joined in making today’s announcement by Derrick Jackson, Special Agent in Charge, Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Atlanta Region.
According to filed court documents and today’s sentencing hearing, Wilson is a licensed family practitioner and owner and operator of Wayne Wilson, MD Family Practice (the “Practice”) located in Hickory. Wilson previously admitted that from 2007 to 2014, he engaged in a scheme to defraud Medicare and Medicaid by submitting fraudulent reimbursement claims totaling more than $467,376 for services that were never provided to beneficiaries. The fraudulent claims resulted in payments of at least $210,120 to Wilson and the Practice.
According to court records, Wilson “added and padded” his Medicaid and Medicare reimbursements with these false claims because he believed that Medicaid did not pay him enough for his services. Court records show that in some instances Wilson perpetrated the fraud by adding non-existent services, such as nerve conduction studies, strep tests, and pulmonary stress tests among others, to actual patient office visits. In other instances, Wilson fabricated entire office visits and submitted fraudulent claims for dates that patients were not even seen at the office.
According to court records, beginning in 2005, Wilson contracted with an individual identified as “D.D.” to perform nerve conduction studies, and sought reimbursement for those services through the Practice. In February 2012, D.D. terminated his relationship with Wilson and the Practice, but Wilson continued to submit fraudulent reimbursement claims to Medicare and Medicaid, falsely stating that he had performed nerve conduction studies for beneficiaries, even though Wilson did not have the equipment or the expertise to provide such studies.
Wilson pleaded guilty to two counts of health care fraud in October 2015. He will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
HHS-OIG conducted the investigation. The prosecution of the case was handled by Assistant U.S. Attorney Kelli Ferry and Special Assistant U.S. Attorney Timothy Rodgers. Mr. Rodgers is a Special Deputy Assistant Attorney General with the North Carolina Department of Justice Medicaid Investigations Division. The SAUSA position is reflection of the partnership between the Medicaid Investigations Division and the United States Attorney that helps ensure the effective and vigorous prosecution of Medicaid fraud.
The investigation and charges are the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-
8477 (1-800-HHS-TIPS), or E-Mail at [email protected].
Harrison County, WV man pleads guilty to unlawful possession of firearmsRead the Press Release
CLARKSBURG, WEST VIRGINIA – Aric J. Stutler, 38, of Mount Clare, West Virginia, pled guilty in federal court in Clarksburg today to unlawful possession of a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Stutler, who has a previous felony conviction in federal court in Ohio, was discovered in unlawful possession of a .22 caliber pistol in Mary 2015 in Harrison County, West Virginia. He was previously convicted of the felony offense of “Armed Bank Robbery” in the United States District Court for the Northern District of Ohio.
Stutler pled guilty today to one count of “Felon in Possession of a Firearm.” He faces up to 10 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Harrison County, WV man pleads guilty to oxycodone traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Suhip E. Ebrahim, 26, of Bridgeport, West Virginia, pled guilty in federal court in Wheeling today to oxycodone trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Ebrahim conspired with at least one other individual to possess and sell oxycodone throughout 2015 and 2016 in Ohio County, West Virginia. Specifically, Ebrahim was arrested in Wheeling in March 2016 after he was discovered to be in possession of a large quantity of oxycodone pills.
Ebrahim pled guilty today to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Oxycodone.” He faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Robert McWilliams and Jarod Douglas prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force, the Marshall County Drug and Violent Crime Task Force, and the Greater Harrison County Drug and Violent Crime Task Force, all HIDTA-funded initiatives, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Gila River Man Sentenced to 15 Years in Federal Prison for Abusive Sexual Contact with a MinorRead the Press Release
PHOENIX - Today, Donald Wade Pablo, of Blackwater, Ariz., a member of the Gila River Indian Community, was sentenced by U.S. District Judge John J. Tuchi to 180 months in prison, followed by a term of lifetime supervised release. Pablo had previously pleaded guilty to abusive sexual contact with a minor.
Between Aug. 1, 2013 and Nov. 2, 2014, within the Gila River Indian Community, Pablo sexually abused the victim who was under the age of 12 and also a member of the Gila River Indian Community.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-0385-PHX-JJT
RELEASE NUMBER: 2016-038_Pablo
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Garden Grove Man Surrenders on Charges of Traveling to Canada to Have Sex with a Teen Girl He Persuaded to Send Naked VideosRead the Press Release
SANTA ANA, California – A Garden Grove man was taken into federal custody this morning after being charged with receiving sexual videos from a 13-year-old girl he met on the Internet and traveling to Canada to have sex with the girl.
Paul Binh Do, 29, was arrested after he surrendered himself to federal authorities this morning.
Do was charged last month with one count of traveling with the intent to engage in illicit sexual conduct and one count of receipt of child pornography. In a plea agreement also filed last month, Do agreed to plead guilty to the charges that could send him to federal prison for as long as 50 years.
“All forms of child exploitation are deeply troubling, and this case demonstrates how quickly online child exploitation can lead to physical exploitation,” said United States Attorney Eileen M. Decker. “Mr. Do coerced a girl that he knew was only 13 to perform sex acts on camera and then travelled to another country in the hopes of further exploiting her. If not for the timely intervention of law enforcement here and in Canada, a greater tragedy would almost certainly have occurred.”
According to the documents filed in United States District court, Do began an online relationship with a 13-year-old girl and soon thereafter they began exchanging naked videos of themselves engaging in sexual conduct. Two years ago today, Do traveled to Canada from Orange County to celebrate the victim’s 14th birthday and have sex with her, but he was stopped by Canadian law enforcement as he attempted to enter into the country.
When he was stopped by Canadian authorities, Do possessed digital devices that contained naked videos of the victims. Following his arrest in Canada, Do obstructed justice when he contacted the victim and asked her to tell law enforcement that she had lied to Do about her age when, in fact, she had been completely truthful about being 13.
The investigation into Do was conducted by the Orange County Child Exploitation Task Force, which includes special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). The Task Force received substantial assistance from HSI’s attaché office in Vancouver, the Calgary Police Service, Canada Border Services Agency, and the Royal Canadian Mounted Police’s Southern Alberta Internet Child Exploitation Unit.
“As this case illustrates, the burgeoning use of the Internet means youth are now vulnerable to exploitation by sexual predators not just around the corner, but around the globe,” said Joseph Macias, special agent in charge for HSI Los Angeles. “That said, child sexual predators who mistakenly believe they can escape detection by boarding an airplane to victimize minors beyond our borders should be on notice – HSI is using all the resources at its disposal to combat this reprehensible behavior and hold the perpetrators responsible for their crimes.”
Do is expected to be arraigned on the charges this afternoon in United States District Court in Santa Ana.
The charge of receiving child pornography carries a mandatory minimum sentence of five years in federal prison and statutory maximum penalty of 20 years.
The charge of traveling with the intent to engage in illicit sexual conduct carries a statutory maximum sentence of 30 years.
Fresno Teacher’s Aide Sentenced for Marijuana Cultivation Operation in Trinity CountyRead the Press Release
FRESNO, Calif. — Kevin Nouthai Yang, aka Thai Yang, 49, of Fresno, was sentenced today to three years and 10 months in prison, to be followed by three years of supervised release, for conspiring to cultivate, distribute and possess with intent to distribute marijuana grown on property that he owned in Hay Fork in the Shasta Trinity National Forest, Acting United States Attorney Phillip A. Talbert announced.
In sentencing Yang, U.S. District Judge Lawrence J. O’Neill also ordered the forfeiture of the property and a firearm.
According to court documents, Yang, who was then a high school teacher’s aide for the Central Unified School District, was found armed at the Hay Fork property during the execution of a federal search warrant. Yang was in the process of harvesting marijuana and was in possession of 324 pounds of marijuana and 200 marijuana plants. He was also in possession of restricted-use pesticides that had been transported across public land for use in the marijuana cultivation operation. Yang has since resigned from his teaching position.
U.S. Forest Service agents obtained the search warrant after seeing hundreds of large, mature marijuana plants growing on Yang’s property. Some of the marijuana grown on Yang’s property had already been transported to Fresno for distribution.
This case was the product of an investigation by the U.S. Forest Service and the Trinity County Sheriff’s Office. Assistant United States Attorney Karen A. Escobar prosecuted the case.
Former Vice President of Woods Paint Company Receives 18-Month Sentence for Evading Payment of Federal TaxesRead the Press Release
GREENEVILLE, Tenn. – On May 2, 2016, Charles J. Rutherford, 44, of Johnson City, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 18 months in federal prison for his January 2016 conviction for filing false and fraudulent federal tax returns in an attempt to evade and defeat paying income tax.
From 2006 through 2014, while serving as vice president of Woods Paint Company (“WPC”) in Bristol, Tenn., Rutherford embezzled approximately $1 million by paying his own personal expenses out of company accounts. Although the funds were stolen, he was obligated to report the embezzled money as income on his federal individual income tax returns, which he failed to do for tax years 2008 through 2013. By filing false and fraudulent returns, he evaded paying well over $200,000 in federal taxes. In addition to his prison sentence, he was also ordered to pay over $1.2 million in restitution, to both WPC and the Internal Revenue Service (IRS). Rutherford will also be prosecuted in state court for theft.
This investigation was conducted jointly by the Sullivan County Office of the District Attorney General, City of Bristol Tennessee Police Department, and IRS-Criminal Investigation Division. Assistant U.S. Attorney David Gunn represented the United States.
"The IRS enforces the nation’s tax laws, but also takes particular interest in cases where someone, for their own personal benefit, has taken what belonged to others,” stated Tracey D. Montaño, Special Agent in Charge of the IRS-Criminal Investigation Nashville Field Office. “No matter what the source of income, all income is taxable. The prosecution of individuals who intentionally conceal income and evade taxes is a vital element of the IRS’ enforcement strategy. We are pleased with the successful resolution of this investigation."
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Former FBI Special Agent Pleads Guilty to Embezzlement of Drug Proceeds and Obstruction of JusticeRead the Press Release
A former FBI special agent pleaded guilty today for stealing over $136,000 of drug proceeds seized during the execution of search warrants in 2014 and falsifying reports and tampering with a witness.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge Angel D. Gunn of the Department of Justice Office of the Inspector General Los Angeles Field Office made the announcement.
Scott M. Bowman, 45, of Moreno Valley, California, pleaded guilty to one count of conversion of property by a federal employee, one count of obstruction of justice, one count of falsification of records and one count of witness tampering before U.S. District Judge Jesus G. Bernal of the Central District of California. Sentencing is set for Aug. 15.
In connection with his plea, Bowman admitted that he misappropriated drug proceeds seized during the execution of three search warrants in June and August 2014, after they were transferred to his custody in his official capacity as a federal law enforcement officer. Bowman then spent the stolen money for his own personal use, including by spending $43,850 to purchase a 2012 Dodge Challenger coupe, $27,500 to purchase a 2013 Toyota Scion FR-S coupe and $26,612 to outfit these vehicles with new speakers, rims, tires and other equipment. Bowman also admitted that he used $15,000 of the misappropriated cash to pay for cosmetic surgery for his spouse and opened a new checking account into which he deposited $10,665 of the stolen funds.
In order to conceal his embezzlement, Bowman falsified official FBI reports, submitted a receipt with a forged signature and asked a local police detective to provide false information to law enforcement officers if asked about Bowman’s activities with respect to the drug proceeds. Specifically, Bowman sent emails to the local police detective in October 2014 containing a detailed cover story that the detective was instructed to provide and a copy of the receipt with the forged signature, so that the detective could falsely claim the forged signature as his own.
“When the FBI became aware of allegations of misconduct by defendant Bowman, FBI management took immediate action by contacting the Justice Department’s Office of Inspector General,” said Acting Assistant Director in Charge James Struyk of the FBI’s Los Angeles Field Office. “As Mr. Bowman takes responsibility for his actions by pleading guilty, the public should be reminded that FBI personnel are held to the highest standards and misconduct of any kind is taken very seriously.”
This case was investigated by the Department of Justice Office of the Inspector General and is being prosecuted by Trial Attorneys Lauren Bell and Robert J. Heberle of the Criminal Division’s Public Integrity Section.
Former FBI Special Agent Pleads Guilty to Embezzlement of Drug Proceeds and Obstruction of JusticeRead the Press Release
WASHINGTON – A former FBI special agent pleaded guilty today for stealing over $136,000 of drug proceeds seized during the execution of search warrants in 2014 and falsifying reports and tampering with a witness.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge Angel D. Gunn of the Department of Justice Office of the Inspector General Los Angeles Field Office made the announcement.
Scott M. Bowman, 45, of Moreno Valley, California, pleaded guilty to one count of conversion of property by a federal employee, one count of obstruction of justice, one count of falsification of records and one count of witness tampering before U.S. District Judge Jesus G. Bernal of the Central District of California. Sentencing is set for Aug. 15.
In connection with his plea, Bowman admitted that he misappropriated drug proceeds seized during the execution of three search warrants in June and August 2014, after they were transferred to his custody in his official capacity as a federal law enforcement officer. Bowman then spent the stolen money for his own personal use, including by spending $43,850 to purchase a 2012 Dodge Challenger coupe, $27,500 to purchase a 2013 Toyota Scion FR-S coupe and $26,612 to outfit these vehicles with new speakers, rims, tires and other equipment. Bowman also admitted that he used $15,000 of the misappropriated cash to pay for cosmetic surgery for his spouse and opened a new checking account into which he deposited $10,665 of the stolen funds.
In order to conceal his embezzlement, Bowman falsified official FBI reports, submitted a receipt with a forged signature and asked a local police detective to provide false information to law enforcement officers if asked about Bowman’s activities with respect to the drug proceeds. Specifically, Bowman sent emails to the local police detective in October 2014 containing a detailed cover story that the detective was instructed to provide and a copy of the receipt with the forged signature, so that the detective could falsely claim the forged signature as his own.
“When the FBI became aware of allegations of misconduct by defendant Bowman, FBI management took immediate action by contacting the Justice Department’s Office of Inspector General,” said Acting Assistant Director in Charge James Struyk of the FBI’s Los Angeles Field Office. “As Mr. Bowman takes responsibility for his actions by pleading guilty, the public should be reminded that FBI personnel are held to the highest standards and misconduct of any kind is taken very seriously.”
This case was investigated by the Department of Justice Office of the Inspector General and is being prosecuted by Trial Attorneys Lauren Bell and Robert J. Heberle of the Criminal Division’s Public Integrity Section.
Florida Man Charged for Attempt to Use Explosive DeviceRead the Press Release
James Gonzalo Medina, 40, of Hollywood, Florida, was charged Saturday by criminal complaint with attempting to use a weapon of mass destruction – an explosive device – at a synagogue in Aventura, Florida.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Division made the announcement.
The arrest was the culmination of an undercover operation during which Medina was closely monitored by the South Florida Joint Terrorism Task Force (JTTF). The explosive device that he allegedly sought and attempted to use had been rendered inoperable by law enforcement and posed no threat to the public.
According to allegations contained in the complaint, in March 2016, Medina came to the attention of the FBI due to his conversations about attacking a synagogue in South Florida. The FBI was able to gauge Medina’s interest in the plot and collect evidence through the use of a confidential human source (CHS). Medina expressed anti-Semitic views and identified to the CHS the target of his attack, a Jewish synagogue in Aventura.
The complaint further alleges that Medina wanted to use an explosive device to commit the attack and engaged the CHS and an undercover FBI employee about the details of his planned criminal conduct. In preparation for the proposed attack, Medina studied the synagogue property to assess its vulnerabilities. On April 29, 2016, Medina took possession of an inert explosive device and was arrested while approaching the synagogue. Medina was under FBI surveillance and, once the FBI became involved, it worked to effectively mitigate any danger posed to the public.
A complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law. If convicted, Medina faces a maximum sentence of life in prison.
The case was investigated by the FBI’s Miami Division and the South Florida JTTF. The case is being prosecuted by Assistant U.S. Attorneys Karen E. Gilbert and Marc S. Anton of the Southern District of Florida, and Trial Attorney Taryn Meeks of the National Security Division’s Counterterrorism Section.
Medina Complaint
Federal Jury Convicts Former District Attorney Walter P. Reed on 18 CountsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that a federal jury has convicted former District Attorney for the 22nd Judicial District, WALTER P. REED, age 69, and his son STEVEN P. REED, age 44, both of Covington.
The jury found WALTER P. REED guilty on 18 of 19 counts. WALTER P. REED was found guilty of:
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one count conspiracy to commit wire fraud and money laundering,
(Count 1) maximum penalty of 5 years imprisonment;
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seven counts of wire fraud,
(Counts 2-8) maximum penalty of 20 years imprisonment per count;
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one count of money laundering,
(Count 9) maximum penalty of 20 years imprisonment;
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four counts of false statement on income tax return,
(Counts 11-14) maximum penalty of 3 years imprisonment per count;
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five counts of mail fraud,
(Counts 15-19) maximum penalty of 20 years imprisonment per count.
STEVEN P. REED was found guilty on 3 of 4 counts, including:
- one count of conspiracy to commit wire fraud, and money laundering,
(Count 1) maximum penalty of 5 years imprisonment;
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one count of wire fraud,
(Count 7) maximum penalty of 20 years imprisonment;
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one count of money laundering,
(Count 9) maximum penalty of 20 years imprisonment;
Evidence presented at trial showed that WALTER P. REED and STEVEN P. REED devised a scheme to defraud the Walter Reed Campaign and contributors to the Walter Reed Campaign by using donations to WALTER P. REED’s campaign to pay for goods and services unrelated to the campaign or to the holding of public office, and in amounts that grossly exceeded the value of the services provided.
Additional evidence presented showed that WALTER P. REED caused a series of payments to be made from the Campaign Fund to STEVEN P. REED’s companies in order to pay down a loan on which WALTER P. REED was a cosigner for services that either were not provided or whose value was substantially less than the amount paid. For example, WALTER P. REED caused STEVEN P. REED’s company, Globop, to be paid approximately $8,352.64 for producing a housewarming party at WALTER P. REED’s new condominium in April 2012 that was unrelated to WALTER P. REED’S campaign, or the holding of public office. Similarly, STEVEN P. REED’s company, Liquid Bread LLC, received $29,400 from the Campaign Fund account for purportedly providing catering or bar services at a campaign event at the Castine Center in September 2012 that STEVEN P. REED did not actually provide. WALTER P. REED also required one company that provided services at the September 2012 event to kickback a portion of his payment to STEVEN P. REED as a means to funnel campaign monies to him.
WALTER P. REED was also convicted of paying for numerous other personal expenses unrelated to his campaign out of his Campaign Fund, including flowers with an accompanying message that stated, “[T]o my rodeo girl from a secret admirer from Camp J,” $1,885.36 for a Thanksgiving Day dinner for REED and approximately ten other members of his family and a $500 gift card for his future personal use, and $2,635.00 to a North shore steakhouse for a dinner he hosted for “Pentecostal Preachers” for the purpose of recruiting clients to refer him private civil legal work. Subsequently, REED also sought, and received, a reimbursement for the $2,635.00 dinner from the law firm with which he was affiliated, which he did not then put back into his Campaign Fund. In total, WALTER P. REED, spent over $120,000 from the Walter Reed Campaign Fund bank account on personal expenses in this manner, including to recruit potential clients for his private legal practice, to pay off various expenses incurred by his son, STEVEN P. REED, and to pay for private and personal dinners.
Additionally, WALTER P. REED was convicted of diverting money paid by St. Tammany Parish Hospital for work performed by the Office of the District Attorney to his personal bank account. Specifically, between about 1994 and 2014, St. Tammany Parish Hospital retained the services of the Office of the District Attorney to advise it on various matters, for which it agreed to pay between $25,000 and $30,000 per year. REED attended some of the monthly meetings, though on dozens of occasions he directed Assistant District Attorneys to attend. Notwithstanding REED’s use of resources and personnel of his office, REED deposited into his own personal bank account each check provided by St. Tammany Parish Hospital that were intended for the Office of the District Attorney.
“We thank the jury for its careful deliberation in the Walter and Steven Reed trial,” stated U.S. Attorney Polite. “The defendants’ actions were not innocent 'mistakes,' as Walter Reed claimed in his testimony. They were crimes. As a community, we are tired of hearing, and accepting, excuses from public officials who violate the public trust to enrich themselves. The time for excuses is over.”
U.S. District Judge Eldon E. Fallon set sentencing for September 15, 2016.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation for investigating this matter and thanked the Metropolitan Crime Commission for its assistance. The prosecution of this case was handled by Assistant United States Attorneys Jordan Ginsberg, Marquest Meeks, Brian Klebba and Maria Carboni.
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FastTrain Owner and Admissions Representative Sentenced to Prison for Federal Student Aid SchemeRead the Press Release
On May 2, 2016, Alejandro Amor, the owner of a Florida for-profit college called FastTrain, was sentenced to 97 months in prison by United States District Court Judge Joan A. Lenard, after having been convicted by a federal jury of orchestrating a conspiracy to steal government money and in fact stealing government money. FastTrain admissions representative Anthony Mincey was previously sentenced to 33 months in prison for his participation in the conspiracy.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Yessyka Santana, Special Agent in Charge, Department of Education, Office of Inspector General (ED-OIG) and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
According to evidence presented at trial, starting in 2010, FastTrain admissions representatives, acting at the direction of Alejandro Amor, began recruiting potential students in low income neighborhoods in Miami-Dade, Broward, Hillsborough, Pinellas, and Duval Counties, where FastTrain’s seven campuses were located. When admissions representatives encountered potential students who were ineligible for federal student aid because they had not graduated from high school or earned a GED, the admissions representatives enrolled the potential students anyway, and coached them to lie on their applications to the United States Department of Education for federal student aid, including federal Pell Grants and Direct Loans. Often, FastTrain admissions representatives falsely promised the students they could earn their high school diplomas or GEDs at FastTrain and in some cases, FastTrain admissions representatives actually created fictitious high school diplomas on FastTrain computers. Six student witnesses identified Anthony Mincey as the admissions representative who had coached them to lie about their eligibility.
Once the applications for federal student aid had been processed, millions of dollars in Pell Grants and Direct Loans were disbursed to FastTrain bank accounts controlled by Alejandro Amor and his wife. Alejandro Amor used those funds to make payments on, among other things, his waterfront home, airplane, car, and yacht.
According to the testimony and evidence introduced at trial, Alejandro Amor routinely falsified student records, emails, policy memoranda, and reports of internal investigations to hide the actions of his admissions representatives and retain federal student aid on behalf of the ineligible students enrolled at FastTrain. In one instance, Alejandro Amor created a fictitious disciplinary record for an admissions representative who had been caught coaching students to lie about their eligibility, before sending that admissions representative back out onto the streets to continue recruiting.
Mr. Ferrer commended the investigative efforts of ED-OIG and the FBI. The case was prosecuted by Assistant United States Attorneys Amanda Perwin and Vanessa Snyder.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
East Pittsburgh Man Enters Guilty Plea to Federal Drug and Gun ChargesRead the Press Release
PITTSBURGH – An Allegheny County resident of East Pittsburgh, PA, pleaded guilty in federal court to charges of conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine and being a felon in possession of a firearm, United States Attorney David J. Hickton announced today.
Tracey Yancey, 53, pleaded guilty to two counts before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Tracey Yancey was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier. During the investigation, Yancey also obtained a firearm, which he was prohibited from possessing as a convicted felon.
Judge Hornak scheduled sentencing for September 9, 2016. The law provides for a minimum sentence of five years in prison, a maximum sentence of 50 years in prison, a fine of not more than $5,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s bond.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Tracey Yancey.
Drug Dealer Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Richard Harrison Moore, 49, of Marion, was sentenced in federal court for his distribution of marijuana and hydrocodone during 2013. Moore was arrested as part of a three-year investigation into drug distribution, gun violence, money laundering, and white collar fraud conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the 4th Judicial Circuit Task Force, the Alabama Law Enforcement Agency, the Alabama Attorney General’s Office, the Internal Revenue Service, the United States Secret Service, and the United States Department of Agriculture Office of Inspector General. Moore was one of many distributors of drugs in Marion charged in federal court. He pled guilty to the two charges in February of 2016.
Court documents reflect that Moore underwent psychiatric treatment between the time of his arrest on the charges, in June of 2014, and his guilty plea in February of this year. At his sentencing hearing today, Judge Kristi K. Dubose imposed a sentence of time served, and required mental health treatment as a condition of his three-year term of supervision. No fine was imposed but the judge ordered that Moore pay $200 in special mandatory assessments. The case was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Dominican Man Pleads Guilty to Misrepresenting A Social Security NumberRead the Press Release
CONCORD, NEW HAMPSHIRE –United States Attorney Emily Gray Rice announced that Sergio Yeremi Martinez-Mejia, of the Dominican Republic, pleaded guilty to falsely claiming that he was assigned a social security number that was in fact assigned to another person.
On March 24, 2015, Immigration and Customs Enforcement was notified that the defendant was suspected of being a foreign national illegally in the United States. On March 23, 2015, the defendant told the Portsmouth Police Department that he was a Puerto Rican U.S. citizen and provided the police a certain social security number that he claimed was his.
On March 24, 2015, an Immigration and Customs Enforcement Deportation Officer interviewed Martinez-Mejia. The defendant claimed that he was born in Puerto Rico and provided the officer with a social security number not in fact assigned to Martinez-Mejia.
The Deportation Officer submitted the defendant’s fingerprints to the Department of Homeland Security and to the FBI. Each agency returned a match for the defendant, Sergio Yeremi Martinez-Mejia, who had, on July 11, 2011, been ordered deported from the United States to the Dominican Republic. Records of the U.S. Social Security Administration revealed that neither of the numbers the defendant claimed were assigned to him actually had been assigned to him.
Martinez-Mejia will be sentenced at 11:30 AM on August 9, 2016, and will be deported after serving his sentence.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement and the Portsmouth Police Department. Assistant U.S. Attorney Alfred Rubega is prosecuting this case.
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Conspirators in Two Android Mobile Device App Piracy Groups Plead GuiltyRead the Press Release
Convictions Part of First-Ever Prosecution of Mobile App Piracy Groups
A leading member of an online piracy group pleaded guilty today and a co-conspirator pleaded guilty in January for their roles in a scheme to distribute more than four million pirated copies of copyrighted Android apps with a total retail value of more than $17 million.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John A. Horn of the Northern District of Georgia and Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Field Office made the announcement.
Aaron Blake Buckley, 22, of Moss Point, Mississippi, pleaded guilty today to one count of conspiracy to commit criminal copyright infringement and to one count of criminal copyright infringement before U.S. District Judge Timothy C. Batten Sr. of the Northern District of Georgia. Gary Edwin Sharp II, 29, of Uxbridge, Massachusetts, a co-conspirator, pleaded guilty to one count of conspiracy to commit criminal copyright infringement on Jan. 13. The defendants are scheduled to be sentenced on Aug. 1.
According to statements made in court, the conspirators identified themselves as members of the Applanet Group. From May 2010 through August 2012, they conspired to reproduce and distribute more than four million copies of copyrighted Android apps through the Applanet alternative online market without permission from the victim copyright owners, who would otherwise sell copies of the apps on legitimate online markets for a fee. On Aug. 21, 2012, the FBI seized the Applanet website, which marked the first seizure of the domain name for a website involving a mobile device app marketplace.
Sharp also pleaded guilty for his role in conspiring to commit criminal copyright infringement as the leader of another online piracy group, the SnappzMarket Group. Sharp admitted that he and two other members of the SnappzMarket Group conspired to distribute more than one million pirated copies of copyrighted Android apps with a total retail value of more than $1.7 million through the group’s website, which was also seized on Aug. 21, 2012.
The FBI investigated the case. Assistant Deputy Chief John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Christopher Bly of the Northern District of Georgia are prosecuting the case. The CCIPS Cybercrime Lab and the Criminal Division’s Office of International Affairs provided significant assistance.