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Monday 7 March 2016
Florida Man Sentenced to More than 14 Years in Prison for Multimillion-Dollar Health Care Fraud and Money Laundering SchemeRead the Press Release
A Land O’ Lakes, Florida, businessman was sentenced by a judge in federal court in Tampa today to 174 months in prison for his role in a multimillion-dollar health care fraud and money laundering scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) Miami Regional Office and Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office made the announcement.
In December 2015, a jury in Tampa found David Brock Lovelace, 45, guilty of conspiracy to commit health care fraud and wire fraud, health care fraud, conspiracy to commit money laundering, money laundering and aggravated identity theft. Judge Steven D. Merryday of the Middle District of Florida imposed today’s sentence and also ordered Lovelace to pay $2,512,460 in restitution.
According to evidence presented at trial, from approximately June 2010 through approximately May 2014, Lovelace and co-conspirators used Cornerstone Health Specialists, Summit Health Specialists and Coastal Health Specialists, three purported medical clinics in Florida, to submit approximately $12,351,046 in false and fraudulent claims to Medicare seeking reimbursement for radiology, audiology, cardiology and neurology services. Medicare paid approximately $2,848,424 in reimbursement on the fraudulent claims. Trial evidence also showed that Lovelace and his co-conspirators paid illegal kickbacks in exchange for access to Medicare patients and Medicare patient information used in the fraud scheme, used forged and falsified documents in the Medicare enrollment process for the medical clinics, and billed Medicare for services that had not been rendered by physicians. The conspirators transferred and disbursed proceeds of the fraudulent Medicare claims among themselves, through shell companies and via numerous cash withdrawals in an effort to conceal the fraud, according to evidence at trial.
HHS-OIG and the FBI investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office for the Middle District of Florida. Senior Trial Attorney Christopher J. Hunter of the Criminal Division’s Fraud Section is prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to www.stopmedicarefraud.gov.
Florida Man Sentenced to More Than 14 Years in Prison for Multimillion-Dollar Health Care Fraud and Money Laundering SchemeRead the Press Release
Tampa, FL – A Land O’ Lakes businessman was sentenced by a judge in federal court today to 174 months in prison for his role in a multimillion-dollar health care fraud and money laundering scheme.
U.S. Attorney A. Lee Bentley, III, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) Miami Regional Office and Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office made the announcement.
In December 2015, a federal jury found David Brock Lovelace, 45, guilty of conspiracy to commit health care fraud and wire fraud, health care fraud, conspiracy to commit money laundering, money laundering and aggravated identity theft. Judge Steven D. Merryday imposed today’s sentence and also ordered Lovelace to pay $2,512,460 in restitution.
According to evidence presented at trial, from approximately June 2010 through approximately May 2014, Lovelace and co-conspirators used Cornerstone Health Specialists, Summit Health Specialists and Coastal Health Specialists, three purported medical clinics in Florida, to submit approximately $12,351,046 in false and fraudulent claims to Medicare seeking reimbursement for radiology, audiology, cardiology and neurology services. Medicare paid approximately $2,848,424 in reimbursement on the fraudulent claims. Trial evidence also showed that Lovelace and his co-conspirators paid illegal kickbacks in exchange for access to Medicare patients and Medicare patient information used in the fraud scheme, used forged and falsified documents in the Medicare enrollment process for the medical clinics, and billed Medicare for services that had not been rendered by physicians. The conspirators transferred and disbursed proceeds of the fraudulent Medicare claims among themselves, through shell companies and via numerous cash withdrawals in an effort to conceal the fraud, according to evidence at trial.
HHS-OIG and the FBI investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office for the Middle District of Florida. Senior Trial Attorney Christopher J. Hunter of the Criminal Division’s Fraud Section is prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to http://www.stopmedicarefraud.gov/.
Federal Judge Sentences Jackson Co. Woman to 70 Months for Trafficking Crystal MethamphetamineRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Max O. Cogburn, Jr. today sentenced Jamie Lynn Swartz, 36, formerly of Sylva, N.C. N.C. to serve 70 months in prison followed by five years of supervised release on drug conspiracy charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Rose is joined in making today’s announcement by Daniel R. Salter, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office; B.W. Collier, Director of the North Carolina State Bureau of Investigation; and Sheriff Chip Hall of the Jackson County Sheriff’s Office.
According to filed court documents and today’s sentencing hearing, from about August 2013 to March 2015, Swartz engaged in a drug conspiracy and was responsible for trafficking crystal methamphetamine to Jackson County and surrounding areas. According to court records, Swartz was utilizing a source of supply in Atlanta, Georgia for larger quantities of crystal methamphetamine. Court records show that Swartz made frequent trips to Atlanta and purchased the drugs from her co-defendant, Lisa Keith Jenkins.
Swartz pleaded guilty in October 2015 to one count of conspiracy to possess with intent to distribute methamphetamine. She has been in federal custody since August 2015 and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
Lisa Jenkins was sentenced on February 2, 2016 to 78 months in prison and five years of supervised release, after pleading guilty to conspiracy to possess with intent to distribute methamphetamine.
The investigation was handled by the DEA, SBI and the Jackson County Sheriff’s Office. Assistant U.S. Attorney Thomas Kent of the U.S. Attorney’s office in Asheville is in charge of the prosecution.
Edmond Ministry Volunteer to Serve 40 Years in Prison for Engaging in Sexual Conduct with Multiple Children in KenyaRead the Press Release
Oklahoma City, Oklahoma – Today, MATTHEW LANE DURHAM, 21, from Edmond, Oklahoma, was sentenced by United States District Judge David Russell to serve 480 months in federal prison for engaging in illicit sexual conduct with multiple children in Kenya, announced Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma.
"Mr. Durham took advantage of his position as a ministry volunteer to sexually assault multiple children in Kenya," said Acting U.S. Attorney Mark Yancey. "The significant sentence imposed today will remove the threat of any other children being exploited by him. However, the innocence of the child victims cannot be restored and their lives will never be the same. It is our hope and prayer that his conviction and lengthy sentence will someday bring them some comfort and peace."
Durham was convicted on June 19, 2015, following a trial that lasted six and a half days. According to evidence at trial, Durham was a volunteer at the Upendo Children’s Home, located in Juja, Kenya. Upendo specializes in assisting neglected Kenyan children by providing them with food, housing, clothes, school and religion. Evidence showed that between April 30, 2014, and June 17, 2014, Durham traveled from Oklahoma City to Nairobi, Kenya, and while in Kenya he engaged in sexual conduct with multiple children under 18 years of age. The jury deliberated for approximately nine hours before finding Durham guilty.
At the sentencing hearing today, Mr. Durham stood convicted of four counts. After finding that Durham lied under oath at trial, Judge Russell ordered him to serve 480 months in federal prison. After serving his prison term, he was also ordered to spend the rest of his life on supervised release and must register as a sex offender for life. He was also ordered to pay $15,863 in restitution.
Reference is made to the court record for further information.
This case was the result of an investigation by the Federal Bureau of Investigation, who was assisted by the United States Embassy in Kenya, the U.S. Department of State Diplomatic Security Service, and the Kenyan National Police Directorate of Criminal Investigations. The case was prosecuted by Assistant U.S. Attorney Robert Don Gifford II, Assistant U.S. Attorney David P. Petermann, and Assistant U.S. Attorney Steven W. Creager.
Detroit man sentenced for role in Detroit-to-Huntington heroin conspiracyRead the Press Release
HUNTINGTON, W.Va. – A Detroit man who participated in a heroin conspiracy in 2013 was sentenced today to five years of probation, announced Acting United States Attorney Carol Casto. Warren G. Howard, Jr., 25, previously pleaded guilty in December 2015 to distributing heroin.
During 2013, Howard conspired with others, including Kenneth E. Baxter, to distribute heroin which had been transported from Detroit to the Huntington area. On May 20, 2013, a confidential informant contacted Baxter to arrange the purchase of heroin. Howard and Baxter met the informant in the parking lot of a grocery store located at 1st Street and 7th Avenue in Huntington. The drug deal took place in Howard’s vehicle.
Multiple defendants have been convicted of drug offenses as a result of the investigation. Those sentenced to federal prison include Baxter, who was sentenced to seven years and three months; Coty S. Richardson, who was sentenced to five years and ten months; Sean L. Gist, who was sentenced to five years and three months; Ramone L. Wells, who was sentenced to four years; Pricilla Lee Dylan, who was sentenced to two years and nine months; and Dustin S. Barton, who was sentenced to a year and a day. Paul A. Roberts, Jr., was sentenced to five years of probation for assisting the group in securing a residence to conduct drug deals.
The Huntington FBI Drug Task Force, United States Postal Service, West Virginia State Police and Huntington Police Department conducted the investigation of these cases. Assistant United States Attorney Joseph F. Adams handled the prosecutions. Chief United States District Judge Robert C. Chambers imposed the sentences.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Defense Contractor Armorsource LLC Agrees to Pay $3 Million to Settle False Claims Act AllegationsRead the Press Release
ArmorSource, LLC has agreed to pay $3 million to resolve False Claims Act allegations in connection with a contract to provide combat helmets to the U.S. Army, the Department of Justice announced today. ArmorSource, a Delaware Limited Liability Company headquartered in Hebron, Ohio, designs, develops and manufactures ballistic helmets for military and law enforcement personnel worldwide.
In 2006, the Army contracted with ArmorSource to manufacture the Advanced Combat Helmet or ACH for use by soldiers in combat. ACH helmets are made of Kevlar, an armored material, and are worn to provide ballistic protection for the soldier. The United States alleged that from 2006 to 2009, ArmorSource delivered ACH helmets to the Army that were manufactured and tested using methods that did not conform to contract requirements and that failed to meet contract performance standards. In May 2010, the Army began recalling the helmets after several lots failed ballistic safety tests.
“The U.S. government relies on contractors to manufacture equipment that is critical to the safety of our men and women in uniform, and equipment that fails to meet performance standards not only cheats taxpayers, but can put lives at risk,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates our commitment to ensuring our military receives products that meet its requirements and for which it has paid.”
“Today’s settlement in this important case is a reminder to all government contractors that they must deliver on their promises, especially when the safety and security of our troops is on the line,” said Special Agent in Charge Monte A. Cason of the Department of Justice Office of the Inspector General’s Dallas Field Office.
“Not conforming to contract requirements, failing to meet performance standards, and failing to pass ballistic safety tests for the helmets that protect the very heads and lives of our young men and women who serve this nation is incredibly unconscionable,” said Director Frank Robey of the U.S. Army Criminal Investigation Commands Major Procurement. “Thanks to the efforts of our special agents and our other law enforcement partners, today’s settlement is possible.”
ArmorSource subcontracted the manufacturing to Federal Prison Industries, Inc., which operates under the trade name UNICOR. This settlement resolves a lawsuit filed by whistleblowers Melessa Ponzio and Sharon Clubb, FPI employees, under the qui tam or whistleblower provisions of the False Claims Act. The Act permits private individuals to sue on behalf of the government those who falsely claim federal funds and to receive a share of any recovery. Ms. Ponzio and Ms. Clubb will receive $450,000.
This settlement was the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Eastern District of Texas. The investigation was conducted by the Department of Justice Office of the Inspector General, the Department of Defense Office of Inspector General’s Defense Criminal Investigative Service and the U.S. Army Criminal Investigation Command, Major Procurement Fraud Unit.
The case is captioned U.S. ex rel. Ponzio, et al. v. Rabintex Industries Ltd., et al., Case No. 1:10-CV-588 (E.D. Tex.). The claims resolved by the settlement are allegations only; there has been no determination of liability.
Decatur Man Enters Guilty Pleas to Hobbs Act Robbery, Gun CrimesRead the Press Release
Urbana, Ill. – A Decatur, Ill., man, Kelton Snyder, 23, appeared today in federal court in Urbana and entered open pleas of guilty to three of the four charges against him. Snyder admitted that he committed the April 3, 2015, armed robbery of the Circle K convenience store at 1685 South Baltimore in Decatur, that he brandished a firearm during the armed robbery, and that at the time he possessed the firearm, he was a convicted felon.
Snyder remains scheduled for trial beginning on April 5, 2016, on the charge that he conspired to commit the April 5, 2015, murder of Paige Mars, also of Decatur.
During court this afternoon, before U.S. District Judge Colin Bruce, Snyder admitted to facts presented by the government that would have been presented to a jury had the defendant gone to trial on the charges:
Shortly before 2:30 a.m., on April 3, 2015, a cashier was outside the Circle K smoking a cigarette when two masked men approached him from behind. One of the men, identified as Snyder, put a shotgun to the cashier’s back and told him to “keep calm, go inside.” Inside the store, the cashier was ordered to the ground while the men took money from the cash register and liquor. A male customer who entered the store was also ordered to the ground and the robbers tied up the two men. After the robbers left, the cashier and customer untangled their hands and called police.
Law enforcement officers reviewed the surveillance camera recording of the robbery where Snyder is clearly seen holding a shotgun. Law enforcement also acquired text messages from Snyder’s phone to others which included messages from Snyder that he had committed the armed robbery. Officers also identified the driver of the car for the robbery as Paige Mars. On April 6, 2015, officers executed a search warrant at Snyder’s grandmother’s home, where Snyder had been living in a basement bedroom, in the 300 block of S. 19th Street, Decatur. Officers recovered 20-gauge and 12-gauge shotgun shells from Snyder’s bedroom. On May 15, 2015, officers located a Mossberg 12-gauge shotgun, which, based on the modifications to the shotgun, appears to be the same one used during the robbery.
The case is being prosecuted in federal court by Assistant U.S. Attorneys Jason Bohm and Katherine Boyle. The Decatur Police Department and FBI conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Macon County Sheriff’s Office.
The statutory penalty for committing a Hobbs Act Robbery, the commission of a robbery in interference with commerce, is up to 20 years in prison; for brandishing a firearm during and in relation to a violent crime, the penalty is a mandatory minimum seven years in prison and up to life, to be served consecutive to any term of imprisonment ordered for the underlying crime of violence; and for being a felon in possession of a firearm, the penalty is up to 10 years in prison.
Snyder remains in the custody of the U.S. Marshals Service. If convicted of conspiracy to commit murder, the statutory penalty is life in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Culpeper Man Sentenced for Robbing BankRead the Press Release
CHARLOTTESVILLE, VIRGINIA – A Culpeper, Virginia man, who was convicted last November for robbing a bank was sentenced today in the United States District Court for the Western District of Virginia in Charlottesville, United States Attorney John P. Fishwick Jr. announced.
Edward Lavon Ferris, 30, of Culpeper, Va., was convicted in November 2015, following a jury trial, of one count of aggravated bank robbery, one count of brandishing a firearm during that bank robbery, one count of being a previously convicted felon in possession of a firearm, one count of tampering with a witness and two counts relating to tampering with evidence.
Today in District Court, Ferris was sentenced to170 months of federal incarceration and five years of supervised release thereafter. The defendant was also ordered to pay $3,072 in restitution to the bank and a $600 special assessment to the court. Giovanni A. Waters, 32, of Culpeper, Va., was sentenced last week to 24 months in prison for his role in the robbery. Waters previously pled guilty to helping Ferris three weeks after the robbery by disposing of the gun and clothing used during the robbery.
“On January 6, 2015 the employees at SunTrust bank went to work like any other day. But instead of a productive day at their jobs, they were victimized by Mr. Ferris,” United States Attorney John P. Fishwick Jr. said today. “Today’s sentence shows just how a serious and violent a crime this bank robbery was and how many people it negatively affected.”
According to evidence presented at trial by Assistant United States Attorney Nancy S. Healey, on the morning of January 6, 2015, Ferris, while wearing a ski-mask, gloves, and a black North Face with the logos covered by tape, robbed a SunTrust Bank in Culpeper, Virginia at gunpoint while brandishing a Ruger .357 revolver. As shown in the bank surveillance film that was played during trial, the defendant, immediately after entering the bank, produced a revolver and pointed the gun at one or both of the tellers and proceeded to rob the bank before fleeing. During the trial, the jury heard recorded jail calls made to Waters during which Ferris asked Waters to remove the above-referenced items from his mother’s home. Other evidence also showed Ferris’ attempts to get one or more witnesses to lie.
The investigation of the case was conducted by the Federal Bureau of Investigation, the Culpeper Police Department, and the Culpeper County Sheriff’s Office. Assistant United States Attorney Nancy S. Healey prosecuted the case for the United States.
Convicted sex offender sentenced for failure to update registration statusRead the Press Release
CLARKSBURG, WEST VIRGINIA – Convicted sex offender Richard Doman, 47, of Lorain, Ohio, was sentenced today to 18 months in prison after he failed to properly update his registration status, United States Attorney William J. Ihlenfeld, II, announced.
Doman was convicted in 2003 of “Statutory Sexual Assault” and “Indecent Assault” in the Court of Common Pleas of York County, Pennsylvania. As a result of that conviction, he is required to register as a sex offender. Doman moved from Ohio to West Virginia in 2014 without updating his sex offender registration. He pled guilty in November 2015 to one count of “Failure to Update Sex Offender Registration.”
Assistant U.S. Attorney Sarah Montoro and former Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government. The United States Marshals Service investigated.
U.S. District Judge Irene M. Keeley presided.
Clovis Man Pleads Guilty to Laser Strikes on CHP PlaneRead the Press Release
FRESNO, Calif. — Jeremy Scott Danielson, 35, of Clovis, pleaded guilty today to striking a California Highway Patrol plane with a powerful green laser beam, United States Attorney Benjamin B. Wagner announced.
According to court documents, Danielson tracked and struck a CHP plane, Air 43, 18 to 20 times with a powerful green laser pointer. Clovis police officers were dispatched to the source of the laser beam and found Danielson with a laser pointer in his pants’ pocket. As a result of the laser strikes, the pilot and tactical flight officer, who were conducting a routine patrol, suffered flash blindness and watery eyes. The laser pointer was the size of a flashlight and had a danger warning.
Reports of laser attacks have increased dramatically in recent years as powerful laser devices have become more affordable and widely available to the public. This year, according to the Federal Aviation Administration (FAA), there have been over 22 laser incidents reported each day in the United States. The Eastern District of California, which encompasses 34 counties in the eastern portion of California, has a high proportion of reported laser incidents. Lasers can completely incapacitate pilots who are trying to fly safely to their destination, endangering their crew members, passengers and people on the ground.
Danielson is scheduled for sentencing before U.S. District Judge Lawrence J. O’Neill on May 31, 2016. He faces a maximum prison term of five years and a fine of up to $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Federal Bureau of Investigation, the CHP, and the Clovis and Fresno Police Departments. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Central Valley Defendants Sentenced to Prison for $33 Million Tax Refund SchemeRead the Press Release
FRESNO, Calif. — United States District Judge Anthony W. Ishii sentenced four defendants today after being found guilty in a November 2015 trial for a tax refund scheme that claimed over $33 million in refunds, United States Attorney Benjamin B. Wagner announced.
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Gaylene Lynnette Bolanos, 58, of Fresno, was sentenced to 10 years in prison and ordered to pay $429,300 in restitution;
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Leroy Donovan Combs, 74 of Fresno, was sentenced to three years and nine months in prison;
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Charles Wayne Uptergrove, 57 of Madera County; was sentenced to three years and three months in prison; and
- Ladonna Lee Moon, 55, of Texas, was sentenced to one year and nine months in prison. All four defendants were convicted of submitting false claims against the IRS and conspiracy.
Prior to trial, three co-defendants pleaded guilty to submitting false claims to the IRS and were sentenced. On February 29, 2016, Judge Ishii sentenced Louis Calles, 67, of Fresno to 16 months in prison and James Schwartz, 61, of Fresno, to one year and a day of in prison. On January 11, 2016, Oswald Georgner, was sentenced to 18 months in prison.
According to court documents and testimony at trial, between August 2008 and October 16, 2008, Bolanos and Georgner, with the assistance of their co-defendants submitted false tax returns utilizing IRS Form 1099-OID in an attempt to eliminate their debts and receive sizable tax refunds. Specifically, the tax returns were fraudulent because the defendants listed their debts, bills, and other non-income items as interest income. The defendants then claimed that almost all of that interest income had been withheld and paid to the IRS, even though none of the purported interest income was ever withheld. Based on the reported withholdings, the defendants claimed they were owed millions of dollars in refunds by the IRS.
In all, the defendants submitted false tax returns to the IRS seeking more than $33 million in fraudulent tax refunds, and in response the IRS issued approximately $400,000 in unearned refunds
U.S. Attorney Wagner stated: “These defendants submitted bogus tax forms to the IRS claiming enormous unearned refunds. Through their fraud, they sought to enrich themselves and victimize American taxpayers. The U.S. Attorney’s Office will continue to work with IRS Criminal Investigation to enforce our nation’s tax laws and stop fraud and abuse.”
“With more than $33 million in federal tax refunds claimed, this was not your typical false claims case against the government — it exceeded most salaries of hard-working, tax-abiding citizens,” said Special Agent in Charge Michael T. Batdorf, IRS Criminal Investigation. “Plain and simple, this was fraud. Today‘s sentencings reflect the seriousness of these crimes, promotes respect for the law and provides just punishment.”
This case was the product of an investigation by the Internal Revenue Service‑Criminal Investigation. Assistant United States Attorneys Grant B. Rabenn and Henry Z. Carbajal III prosecuted the case with assistance from Trial Attorney Karen J. Sharp, of the Department of Justice, Antitrust Division.
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California Man Federally Charged with Travel with Intent to Engage in Criminal Sexual ConductRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Stephen Chang, age 27, from Los Angeles, California was arrested at the Harrisburg International Airport on Saturday, March 5, 2016 and charged with three counts of travel with intent to engage in criminal sexual conduct.
According to United States Attorney Peter Smith, Chang allegedly began communicating with a minor female when she was only 13 years old. The communications began in August 2014 and continued until the day of his arrest. During these conversations, Chang enticed the juvenile to produce and send sexual exploitative images. Chang also traveled from Los Angeles, California to Elizabethtown, Pennsylvania on December 12, 2014, October 1, 2015 and March 4, 2016, to engage in sexual conduct with the minor. On January 29, 2016, police were notified by the National Center for Missing and Exploited Children in a CyberTipline report about Facebook communications between the minor residing in Elizabethtown, Pennsylvania and an adult male in California, later identified as Stephen Chang.
Chang appeared before U.S. Magistrate Judge Susan E. Schwab today for his initial appearance and preliminary hearing. Judge Schwab found probable cause to conclude that Chang traveled to Pennsylvania to engage in sexual conduct with a minor. Chang was ordered temporarily detained pending a detention hearing which is scheduled for March 10, 2016.
This case was investigated by the Federal Bureau of Investigation, the Lancaster County District Attorney’s Office, the Elizabethtown Police Department, the Northwest Regional Police Department, the Dauphin County District Attorney’s Office and the Harrisburg International Airport Police and demonstrates an excellent collaborative investigative effort to remove dangerous sexual predators from the street and protect the communities’ children. The federal charges are being prosecuted by Assistant United States Attorney Daryl Bloom.
If you have any information related to this case or believe you or someone you know may be a victim, you are encouraged to contact the Federal Bureau of Investigation at 717-232-8686.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for each offense is 30 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 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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Business Manager and Secretary-Treasurer of Iron Workers Local 201 Charged with Taking Kickbacks from the Wages of Public Works EmployeesRead the Press Release
The business manager and secretary-treasurer of Local 201 of the International Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers Union AFL-CIO (Iron Workers) based in Washington, D.C., was charged with taking kickbacks from public works employees at the Blue Plains Wastewater Treatment Plant of the District of Columbia Water and Sewer Authority (Blue Plains).
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting Special Agent in Charge John J. Dolce of the Department of Labor Office of Inspector General’s Office of Labor Racketeering and Fraud Investigations Washington, D.C., Regional Office and District Director Mark Wheeler of the Department of Labor’s Office of Labor Management Standards Washington, D.C., District Office made the announcement.
Juan Carlos Recinos, 40, of Upper Marlboro, Maryland, the business manager and secretary-treasurer of Iron Workers Local 201, was charged by a grand jury in the District of Columbia with seven counts of taking kickbacks from public works employees. Recinos is scheduled to have his initial appearance at 1:30 p.m. EST before U.S. Magistrate Judge G. Michael Harvey of the District of Columbia.
The Iron Workers Local 201 represents workers known as “rodmen” who set rebar into concrete forms at construction sites in Washington, D.C., and adjacent counties. Prior to being elected business manager and secretary-treasurer of Local 201 in 2014, Recinos served as an organizer for Local 201.
The indictment alleges that, on seven instances between April and September 2013, Recinos knowingly induced rodmen who had received back pay awards from their employment at Blue Plains to give him part of their award, ranging from $500 to $3,800 in cash, by falsely representing that the rodmen owed money to an unnamed attorney. Recinos allegedly pocketed the money, in violation of the Copeland Anti-Kickback Act, which ensures that employees on public works projects receive all the wages to which they are entitled.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent until and unless proven guilty.
The U.S. Department of Labor is investigating the case. Trial Attorney Vincent Falvo of the Criminal Division’s Organized Crime and Gang Section is prosecuting the case.
Boise Man Pleads Guilty to Failing to Register as a Sex OffenderRead the Press Release
BOISE - Richard Martinez, Jr., 39, of Boise, Idaho, pleaded guilty today in United States District Court for failing to register as a sex offender, U.S. Attorney Wendy J. Olson announced. Martinez was indicted by a federal grand jury on August 11, 2015.
According to the plea agreement, Martinez was convicted in July 2011, of possession of child pornography by the Department of the Army. As a result of the conviction, Martinez was required to register and update his registration under the Sex Offender Registration and Notification Act (SORNA). Martinez was previously convicted of failing to register as a sex offender in Ada County, Idaho in 2015. After release from custody in February of 2015, Martinez registered as a sex offender with the State of Idaho, listing his residence as a hotel in Boise. Martinez confirmed this as his residence with the State of Idaho in April and June 2015. However, Martinez moved from the hotel in May of 2015, and did not update his registration. Boise Police Detectives arrested Martinez in Garden City, Idaho on July 8, 2015. Martinez subsequently admitted that he had moved approximately 4-6 weeks earlier and had not updated his registry as required.
The charge of failure to register as a sex offender is punishable by up to ten years in prison, a maximum fine of $250,000.00, and five years up to lifetime supervised release.
Sentencing is scheduled for May 6, 2016 before visiting U.S. District Judge Dee V. Benson.
The case was investigated by the United States Marshals Service (USMS), the Boise Police Department, and the Idaho Department of Corrections, Bureau of Probation and Parole.
Richard Martinez, Jr. was prosecuted for a violation of the Sex Offender Registration and Notification Act (SORNA) passed by Congress in 2006. The Act requires sex offenders to register and keep their registration current in each jurisdiction where they reside. Violations of SORNA can be prosecuted in federal court.
Boca Raton Resident Sentenced for Impersonating a Federal OfficialRead the Press Release
Simon E. Zablah, 29, of Boca Raton, Florida, was sentenced by U.S. District Senior Judge Daniel Hurley in West Palm Beach to one year and a day in prison, to be followed by three years of supervised release, after pleading guilty to two counts of impersonating a federal official and one count of access device fraud. Zablah was also order to pay $3,500 in restitution.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigations (FBI), Miami Field Office, and John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS) Southeast Field Office, made the announcement.
According to documents and statements introduced in court, Zablah was stopped for speeding on April 8, 2015 by an officer of the Hollywood Police Department. During this traffic stop, Zablah presented a counterfeit identification card which falsely identified him as a Staff Sergeant assigned to United States Special Operations in order to get out of a $205 traffic ticket.
In April 2013, Zablah also falsely claimed to be a Sergeant First Class in the United Starts Army Reserve in order to obtain a job with a uniform supply company in Broward County. In August 2013, while working in the call center for this uniform supply company, Zablah obtained the credit card number of a customer which he then used to make six unauthorized charges totaling approximately $3,669. Zablah used the customer’s credit card to purchase items on the internet, including a personal computer, which were delivered to an address associated with the defendant in Fort Lauderdale.
Zablah admitted that in actuality he only served as a soldier in the United States Army for approximately two weeks in January 2005. Other that this brief service, Zablah has never been employed or otherwise associated with any branch of the military or law enforcement.
“The federal sentencing of Simon E. Zablah is a warning for others that the false impersonation of a member of the U.S. military or law enforcement will have legal consequences,” stated U.S. Attorney Wifredo A. Ferrer.
“Falsely claiming to be a federal official to obtain something of value can and does have serious consequences,” said Michael A. D’Alonzo, Assistant Special Agent in Charge, FBI Miami. “Law enforcement took note of Simon E. Zablah’s scam and now he has a federal conviction and a prison sentence as a result of his actions. Let this serve as a lesson to other would-be impersonators.”
“Today's sentencing sends a clear warning to anyone who would impersonate a U.S. military member and make false claims about military service for personal and monetary gain,” said Special Agent in Charge John F. Khin, Defense Criminal Investigative Service (DCIS) Southeast Field Office. “DCIS will continue to work tirelessly to investigate fraud, waste, and abuse involving the Department of Defense."
Mr. Ferrer commended the investigative efforts of the FBI, DCIS, Hollywood Florida Police Department, and U.S. Customs and Border Protection. The case was prosecuted by Assistant U.S. Attorney Carolyn Bell.
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.
Arizona Man Texted His Way into Federal Drug Conviction in KansasRead the Press Release
WICHITA, KAN. – An Arizona man who didn’t realize he was texting with a Wichita police officer pleaded guilty Monday to driving five pounds of methamphetamine to Kansas, U.S. Attorney Barry Grissom said today.
Mark McFarland, 31, Phoenix, Ariz., pleaded guilty to one count of interstate transportation in furtherance of drug trafficking. According to court records, McFarland thought the texts he received while planning to travel with drugs to Kansas were coming from his former girlfriend. In fact, the girlfriend had been arrested in another case and a Wichita police officer had seized her cell phone.
Two days after the girlfriend was arrested, McFarland sent a text to the girlfriend’s number saying, “Hi.” The officer texted back: “Hi.” What followed was a series of texts in which they arranged for McFarland to drive to Wichita to visit the girlfriend and to deliver five pounds of methamphetamine. McFarland was arrested when he arrived in Wichita with the drugs.
Sentencing is set for July 7. He faces a maximum penalty of five years in federal prison and a fine up to $250,000. Grissom commended the Wichita Police Department and Assistant U.S. Attorney Matt Treaster for their work on the case.
Another member of Culloden heroin-dealing family sentenced on Federal drug chargeRead the Press Release
HUNTINGTON, W.Va. – A Culloden man who assisted his parents in selling heroin from their home in 2014 and 2015 was sentenced today to five years of probation, announced Acting United States Attorney Carol Casto. Shawn Paul Cremeans, 24, previously pleaded guilty in December 2015 to aiding and abetting the distribution of heroin.
From early 2014 to May 2015, Sanford Dale Cremeans and his wife, Toni Cremeans, along with their son, Shawn Cremeans, conspired to sell heroin from their residence at 2246 3rd Street in Culloden. On December 2, 2014, a confidential informant working with law enforcement contacted Shawn Cremeans to arrange a heroin purchase. The informant traveled to the Cremeans’ residence and met with Shawn and Sanford Cremeans while they waited for Toni Cremeans to arrive with additional heroin. Once Toni Cremeans arrived, the informant paid Shawn Cremeans and received the heroin from Sanford Cremeans. Both Toni and Shawn Cremeans admitted that they were responsible for distributing up to 100 grams of heroin during the conspiracy. Sanford Cremeans admitted that he assisted in the sale of heroin from the family residence on numerous other occasions and was responsible for the distribution of up to 100 grams of heroin.
Sanford Cremeans was sentenced in January 2016 to three and a half years in federal prison. Toni Cremeans previously pleaded guilty to distribution of heroin and faces up to 20 years in federal prison and a $1 million fine when she is sentenced on March 28, 2016.
The Huntington FBI Drug Task Force and the Cabell County Sheriff’s Department conducted the investigation of these cases. Assistant United States Attorney Joseph F. Adams is handling the prosecutions. Chief United States District Judge Robert C. Chambers imposed the sentence.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Altamont Man Sentenced for Identity Theft, Extortion, and Child Pornography OffensesRead the Press Release
On March 7, 2016, Stephen B. Mislich, 24, of Bowling Green, Ohio, formerly of Altamont, Illinois, was sentenced to 235 months in federal prison for identity theft, extortion, and child pornography offenses, Acting United States Attorney for the Southern District of Illinois James L. Porter, announced today.
"Clearly, the Court was as concerned for these victims as we were. This was a brutal crime which involved the utter degradation and cyber rape of these victims. Mislich’s actions were certainly deserving of the punishment meted out. The Court showed true courage in delivering the sentence that it did." noted Acting United States Attorney Porter.
Evidence at his sentencing hearing established that Mislich stole the online identity of a victim from Effingham County, Illinois, and then used that identity to extort and attempt to extort nude images and videos from several other victims in the area. One of the victims was 16 years old at the time of the offense and the images Mislich forced her to produce constituted child pornography under federal law. Besides the almost 20 year sentence, the Court also ordered Mislich to spend the rest of his life on Supervised Release and ordered him to pay a $2,000.00 fine.
The investigation was conducted by the Federal Bureau of Investigation and the Effingham Police Department. The case was prosecuted by Assistant United States Attorney Thomas E. Leggans.
Allen Man Sentenced for Sexually Abusing a MinorRead the Press Release
United States Attorney Randolph J. Seiler announced that an Allen, South Dakota, man convicted of Sexual Abuse of a Minor was sentenced on March 4, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Edgar James Brown Bear, age 39, was sentenced to 10 years of imprisonment, followed by 10 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. He will also be required to register as a sex offender.
Brown Bear was charged on May 19, 2015, and pleaded guilty on August 14, 2015.
The conviction stems from Brown Bear sexually abusing a fourteen year-old girl at Allen.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Ben Patterson prosecuted the case.
Brown Bear was immediately turned over to the custody of the U.S. Marshals Service.
Alleged Sinaloa Cartel Trafficker Victor Emilio Cazares Gastellum Extradited to the U.S.Read the Press Release
Assistant U. S. Attorney Michael Kaplan (619) 546-7927
NEWS RELEASE SUMMARY – March 7, 2016
SAN DIEGO – Alleged drug kingpin Victor Emilio Cazares Gastellum, who for years was one of the United States’ most-wanted Mexican drug trafficking suspects, was extradited on Friday and arraigned in federal court in San Diego this morning on drug conspiracy and money laundering charges.
Cazares, also known as “El Licenciado,” was indicted by a federal grand jury in San Diego in 2007, along with 18 of his suspected lieutenants and foot soldiers. According to the indictment, Cazares' organization shipped multi-ton quantities of drugs from Colombia and Venezuela through Central America to Mexico. The narcotics were then smuggled across the Southwestern border and he and others distributed the drug throughout the United States.
The United States issued a provisional arrest warrant for Cazares following his indictment, and the U.S. Department of State offered a reward of up to $5 million for information leading to his arrest and/or conviction. Cazares was captured by Mexican authorities about five years later, on April 8, 2012, at a highway checkpoint near the western city of Guadalajara.
Until his arrest, Cazares was believed to be aligned with Joaquin “Chapo” Guzman, former leader of the Sinaloa drug cartel, one of the most notorious and violent drug trafficking organizations operating in Mexico. The Sinaloa Cartel imports and distributes hundreds of tons of cocaine, methamphetamine, and marijuana into the United States each year.
The indictments were announced at a news conference in San Diego by then –Attorney General Alberto Gonzales. The 22-month sting, code-named “Operation Imperial Emperor,” resulted in the nationwide arrests of 402 people suspected of working for the cartel, more than $45 million in cash and tons of cocaine, heroin and marijuana.
During today’s hearing before U.S. Magistrate Judge David Bartick, the defendant was ordered detained without bail. His next court hearing is scheduled for April 4, 2016 at 9 a.m. before U.S. District Court Judge William Q. Hayes.
DEFENDANT Case Number: 07CR0449
Victor Emilio Cazares Gastellum Age: 52
SUMMARY OF CHARGES
Conspiracy to Import Controlled Substance, in violation of Title 21, U.S.C., Secs. 952, 960, and 963; Maximum penalty- Life
Conspiracy to Distribute Controlled Substance, in violation of Title 21, U.S.C., Secs. 846 and 841(a)(1); Maximum penalty- life
Engaging in a Continuing Criminal Enterprise, in violation of Title 21, U.S.C. Sec. 848(b); Maximum penalty- Life
Conspiracy to Launder Money, in violation of Title 18, U.S.C., Secs. 1956(a)(2)(A) and 1956(h); Maximum penalty 20 years
AGENCY
Drug Enforcement Administration
El Centro Police Department
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Sunday 6 March 2016
Arrest for Creation and Distribution of Animal Crushing Videos, Exhibition of Animals in Animal Fighting VenturesRead the Press Release
SAN JUAN, P.R. – On March 4, 2016, Ehbrin Castro-Correa (Castro-Correa) was arrested by Immigration and Customs Enforcement, Homeland Security Investigations (HSI) agents, for violations to 18 USC § 48(b)(1)(B) and (b)(2), the creation of an animal crush video and its distribution in interstate commerce; and 18 USC § 49(a), a violation of 7 USC § 2156(a)(1), which prohibits the sponsoring and exhibiting of an animal in an animal fighting venture, announced United States Attorney Rosa Emilia Rodríguez-Vélez. The arrest warrant was issued by US Magistrate Judge Bruce McGiverin based on a Complaint and affidavit presented on March 5, 2016. This is the first case of this nature presented in the District of Puerto Rico.
The sworn affidavit attached to the Complaint alleges that on March 4, 2016, at approximately 4:48 p.m., Castro-Correa arrived at the Pan American Dock (PAD), in San Juan, Puerto Rico in a 2005 white Dodge Dakota pickup truck. Federal agents observed several canines being transported inside crates located within the pickup truck’s bed area. At approximately 5:45 p.m., HSI Agents then observed when Castro-Correa placed six (6) crates – each containing a canine - in the luggage drop off area before he went to present his boarding pass to board the Caribbean Fantasy Ferry. Castro-Correa presented documentation showing he was the owner of the six (6) canines, Spanish Alano (Spanish Bulldog) breed dogs, 4 male and 2 female. He then went to check in to board the ferry at where he showed the CBP Officers a boarding pass. The boarding pass indicated that Castro-Correa was traveling to the Dominican Republic along with pets. The CBP officers referred Castro-Correa to a secondary inspection in which he was subject to a more thorough search of his belongings. All passengers travelling with canines were submitted to secondary inspection.
During the secondary inspection, Castro-Correa was interviewed by HSI Agents. Castro-Correa indicated that he was transporting the canines to the Dominican Republic, that he was paid $800.00 to do so, and that the canines belonged to someone else. Agents were able to inspect Castro-Correa’s cellular phone. The cellular phone contained three videos, an original six-minute video of a dog fight, and two shorter clips made of that same video. The six-minute video depicts a fight between two pit bull female dogs, and two men are overheard encouraging the canines to fight. Castro-Correa admitted that he filmed the video recording. The two clips of the original video were transmitted in interstate and foreign commerce using a communications application known as WhatsApp.
The affidavit further alleges that a search of Castro-Correa’s residence in Rio Piedras, Puerto Rico, was conducted during the evening of March 4, 2016. A preliminary search of the residence revealed several man-made structures made either of concrete or wood with chicken wire that were used as cages. Other structures were simply made-man pits that did not have any overhead cover exposing the dogs to the elements. The dogs inside the cages appeared to be adult dogs that could barely fit inside the cages. Agents observed a total of twenty-five (25) dogs in back area of the residence. There were approximately nine (9) puppies out of the twenty-five (25) found. The conditions in which the dogs were found were deplorable. Some were chained or tied to a structure, or a cement cylinder block or palet, while others were caged, and/or exposed to the elements. The water containers from the dogs were expected to drink from were dirty. Most of the dogs appeared to be pit bulls, and some of them had scars in their muzzle areas and faces. Inside the residence, agents found a man-made treadmill designed for training dogs, old newspaper articles of dog fights, a bag containing what appeared to be medications such as antibiotics, iron and calcium supplements for dogs and dressing compounds, among other evidence. Also seized was what appeared to be medication that requires the use of syringes, along with an open bag containing several syringes.
“This is the first case investigated and prosecuted in this District involving the promotion of dog fights and the creation and distribution of dog fighting videos. The cruelty to which these animals have been submitted is appalling, and this case should put everyone on notice that we will not tolerate this type of inhumane treatment of animals,” said United States Attorney Rodriguez-Velez.
"One does not have to be a pet lover to condemn animal cruelty," said Ricardo Mayoral, acting special agent in charge of HSI San Juan. "HSI has distinguished itself for protecting our children from online predators and those who exploit the most vulnerable segment of our society but it's also important to let people know that we will not tolerate animal cruelty as well. We will continue identifying, investigating, and with the help of our partners, prosecuting those who show total disregard for animals. It is despicable, it is inhumane and it is against the law."
The case was investigated by Immigrations and Customs Enforcement, Homeland Security Investigations, with the collaboration of U.S. Customs and Border Protection (CBP). The dogs have been seized and will be under the custody and care of the U.S. Marshals Service. The case will be prosecuted by Assistant U.S. Attorney Mariana Bauzá, Deputy Chief of the Narcotics Unit and Assistant U.S. Attorney Dina Avila-Jiménez. The defendant faces a maximum penalty of up to seven years in prison for the violations to 18 USC § 48(b)(1)(B) and (b)(2); and up to five years in prison for the violations to 18 USC § 49(a) and 7 USC § 2156(a)(1). The Complaint contains allegations and is not evidence of guilt, the defendant is presumed innocent until his guilt is proven by the government beyond a reasonable doubt.
Saturday 5 March 2016
Authorities arrest Bridgeport, WV man, seize large quantity of prescription painkillersRead the Press Release
WHEELING, WEST VIRGINIA – Authorities from Ohio and Marshall Counties in West Virginia recovered large quantities of prescription painkillers and United States currency today when they arrested Suhip E. Ebrahim, 26, of Bridgeport, West Virginia, United States Attorney William J. Ihlenfeld, II, announced.
Officers from the Ohio Valley Drug and Violent Crime Task Force and the Marshall County Drug and Violent Crime Task Force, both HIDTA-funded initiatives, allegedly discovered Ebrahim in the Wheeling area in possession of nearly 600 oxycodone pills and in excess of $100,000 in United States currency.
Following his arrest, Ebrahim made an initial appearance in federal court today before U.S. Magistrate Judge James E. Seibert. He is currently being held without bond.
Ebrahim is named in a federal criminal complaint charging him with “Possession with Intent to Distribute Oxycodone.” A complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Two other defendants were also arrested today. They are facing charges in state court.
Friday 4 March 2016
“Pill Mill” Operators Plead Guilty to Drug Distribution and Money Laundering ChargesRead the Press Release
MONTGOMERY, AL— Erik Raul Torres, 33, and Marc Oliver Adam, 29, both of southern Florida, pleaded guilty on Thursday, March 3, 2016 in federal court to charges stemming from their operation of a “pill mill” in Opelika, Alabama, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama. A “pill mill” is a medical clinic created to sell pills unlawfully, illegally, and for no medical reason.
In 2012, Torres formed EMED Medical Management Corporation—the Opelika pill mill. Torres was the owner and chief executive of the pill mill and he hired Adam to serve as the day-to-day office manager. Torres and Adam then employed Dr. Francisco Huidor-Figueroa to serve as the pill mill’s doctor. At Torres’s direction, Dr. Huidor-Figueroa prescribed controlled substances, like oxycodone, to patients who had no legitimate need for the medicine and intended to either abuse the drug or sell the pills to others who would abuse them. Torres and Adam then laundered the money generated by the unlawful prescriptions.
In December of 2015, Dr. Huidor-Figueroa pleaded guilty to drug distribution and money laundering charges and currently is awaiting sentencing. Thursday, Torres pleaded guilty to conspiring to unlawfully deal drugs (the medically unnecessary prescription medications), and conspiring to launder the proceeds. Adam pleaded guilty to conspiring to launder money.
A sentencing hearing for Torres and Adam is yet to be scheduled. When sentenced, Torres faces up to 20 years’ imprisonment on each count. Additionally, on the drug distribution conspiracy count, Torres faces a maximum fine of $1,000,000. On the money laundering conspiracy count, the maximum fine Torres could be made to pay is $500,000, or twice the value of the property involved in the transaction, whichever is greater. Adam also faces a maximum sentence of 20 years in prison and a fine of $500,000 or twice the value of the property involved in the transaction, whichever is greater.
The Drug Enforcement Administration and Internal Revenue Service’s Criminal Investigations Division investigated the case, with assistance from the Federal Bureau of Investigation, Opelika Police Department, Auburn Police Department and the Alabama Board of Medical Examiners. Assistant United States Attorneys Jonathan S. Ross and Rand N. Neeley are prosecuting the case.
Woman Indicted for Impersonating FBI Agent in Connection with Lottery Fraud Scheme Based in JamaicaRead the Press Release
A federal grand jury in the Southern District of Georgia indicted a woman for impersonating an FBI special agent in connection with an international lottery fraud scheme based in Jamaica, the Department of Justice announced today.
Vania Lee Allen, 30, was charged with one count of conspiracy to commit wire fraud and falsely impersonating an employee of the United States, one count of wire fraud and one count of falsely impersonating an employee of the United States.
According to the indictment, Allen and a co-conspirator in Jamaica sought to unlawfully enrich themselves through a fraudulent lottery scheme targeting an elderly resident of Evans, Georgia. Allen’s co-conspirator falsely informed the victim by phone that the victim had won money in a lottery and instructed the victim to make payments to various people in order to collect the purported lottery winnings. As alleged in the indictment, in order to gain the trust of the victim and induce him to continue to make payments, Allen traveled from Jamaica to the United States and falsely portrayed herself to the victim as an FBI agent.
“Fraud schemes operating from other countries and targeting Americans often cannot fully succeed without assistance from a co-conspirator in the United States,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Scammers use many different tactics in an effort to gain the trust of their victims. The Justice Department will actively pursue and charge those who participate in such criminal activity.”
“The U.S. Attorney’s Office for the Southern District of Georgia is committed to vigorously prosecuting fraud schemes of all kinds,” said U.S. Attorney Edward J. Tarver of the Southern District of Georgia. “Those who perpetrate scams upon the vulnerable should know that federal law enforcement will work tirelessly to shut down fraud schemes and prosecute those responsible.”
According to the indictment, Allen traveled from Jamaica to the United States in early May 2015. The indictment alleges that Allen sent a number of text messages to her co-conspirator in Jamaica discussing the plan to impersonate an FBI agent, including a text that attached an image of a law enforcement style badge with an “FBI” logo and the words “Federal Bureau of Investigation” on the face of the badge. The indictment further alleges that on May 7, 2015, Allen traveled to the victim’s home in Evans, Georgia, falsely portrayed herself to the victim as a FBI special agent and provided the victim with a cellphone and directed him to speak with the person on the line, who was her co-conspirator in Jamaica.
“These lottery scammers prey on elderly Americans, and convince them to send significant amounts of money based on false promises,” said U.S. Postal Inspector in Charge David W. Bosch of the Philadelphia Division. “The Postal Inspection Service is committed to investigating and combating these international lottery schemes.”
This prosecution is part of the Department of Justice’s effort to work with federal and local law enforcement to combat fraudulent lottery schemes in Jamaica that prey on American citizens. According to the U.S. Postal Inspection Service, Americans have lost tens of millions of dollars to fraudulent foreign lotteries.
If convicted, Allen faces a statutory maximum sentence of up to 20 years in prison for the wire fraud count, as well as up to five years for the conspiracy count and up to three years for the false impersonation count.
The case is being prosecuted by Trial Attorney Clint Narver of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney C. Troy Clark of the Southern District of Georgia. The case was investigated by the U.S. Postal Inspection Service and the Columbia County Georgia Sherriff’s Office.
An indictment is merely an allegation and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Georgia, visit its website at http://www.justice.gov/usao-sdga.
Wilkes-Barre Township Man Charged with Theft of MailRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Joseph Stefanski, age 35, Wilkes-Barre, was indicted by a federal grand jury on March 1, 2016 in Scranton for theft of mail. The indictment was unsealed today following his arrest.
According to United States Attorney Peter Smith, the indictment charges Stefanski with theft of mail between December 2014 and February 2015. The alleged thefts were discovered after postal customers in the areas of Dallas, Shavertown, Plains, Trucksville and Luzerne Township, Luzerne County, complained about mail that was not received and/or mail that was received with contents missing. Some of the missing contents included cash, gift cards, and lottery tickets.
Further investigation revealed that Stefanski, who was employed by a trucking company hired to transport mail from one post office to another, had allegedly removed mail and its contents from mail containers in his truck.
The case is being investigated by the United States Postal Service, Office of Postal Inspection Services, and is being prosecuted by Assistant United States Attorney Robert J. O’Hara.
Anyone who believes they may be a victim or have further information should contact Postal Inspector David Heinke, United States Postal Service, at 877-876-2455
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of 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 5 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 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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Weslaco Man Sentenced for Child Pornography ConvictionsRead the Press Release
McALLEN, Texas – Raul Casarez, 35, of Weslaco, has been ordered to prison following his conviction on one count of production of child pornography and one count of receipt of child pornography, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Shane Folden of Homeland Security Investigations (HSI) - San Antonio. Casarez pleaded guilty Sep. 21, 2010.
Today, Chief U.S. District Judge Ricardo H. Hinojosa imposed a 20-year sentence which will be immediately followed by five years of supervised release. The court also ordered a total of $9,500 in restitution for all of the identified victims in the case. Additionally, Casarez will be ordered to register as a sex offender for the rest of his life.
At a previous hearing, the court heard testimony concerning the familial relationship the defendant had to the victims involved in the child pornography production. Testimony established that Casarez sexually exploited four young relatives that considered him to be the “fun” relative. Furthermore, the court heard how the defendant had preyed on his younger relatives for several years dating back to the mid-90s and up until the date of his arrest in 2009.
On Sept. 30, 2009, an agent with Homeland Security Investigations (HSI) began an Internet investigation to identify persons using peer-to peer software to traffic in child pornography and soon discovered a specific computer as offering to participate in the distribution of child pornography movies. Casarez was identified as the person linked to that computer.
Agents executed a search warrant of his residence and seized computers and various external storage media. The forensic examination of the items revealed more than 4,000 child pornographic images and more than 400 child pornographic movies of clearly young children engaged in sexually explicit conduct. The images include children under the age of 12, bondage and acts of violence. Some of the images are of known victims as identified through the National Center for Missing and Exploited Children.
Casarez admitted he downloaded child pornography from the Internet and that he was in possession of child pornography on his computer.
The forensic examination also revealed three photographs or visual depictions of a young pre-pubescent girl stored on the computer’s hard drive. The photographs depicted her in a pose considered to be sexually explicit conduct.
The pictures were taken by a Samsung cell phone and uploaded to Casarez’s computer.
This case, investigated by HSI and prosecuted by Assistant U.S. Attorneys Kimberly Ann Leo, Juan Alanis, and Alex Benavides, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Two sentenced for drug traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Two individuals were sentenced for drug trafficking today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Sharod D. Nickelson, 44, of Detroit, Michigan, conspired with other individuals to possess and sell oxycodone throughout the Ohio Valley. Following an investigation by the Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, Nickelson pled guilty in January 2016 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Oxycodone.” He was sentenced today to 87 months in prison.
Donald William Butler, 57, of Saint Marys, West Virginia, was among six individuals charged in a federal indictment when authorities disrupted a Pleasants County methamphetamine manufacturing operation in June 2015. Specifically, Butler was discovered in possession of materials commonly utilized to manufacture methamphetamine. Following an investigation by the West Virginia State Police and the Pleasants Count Sheriff’s Department, Butler pled guilty in October 2015 to one count of “Possession of Material Used in the Manufacturing of Methamphetamine – Aiding and Abetting.” He was sentenced today to 46 months in prison.
Assistant U.S. Attorney Robert McWilliams prosecuted Nickelson and Assistant U.S. Attorney Shawn Adkins prosecuted Butler on behalf of the government.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Two Northwest Arkansas Men Sentenced to Total of Almost 14 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced today that Oscar Alonzo, age 23, of Springdale, was sentenced to 110 months in federal prison followed by three years of supervised release on one count of Possession of Methamphetamine with Intent to Distribute. He was also ordered to pay a $3500.00 fine. Co-Defendant, Francisco Mejia-Galdamez, age 37, of Fayetteville, was sentenced to 57 months in federal prison and three years of supervised release on one count of Distribution of Methamphetamine on February 24. The Honorable Timothy L. Brooks presided over the sentencing hearings in the United States District Court in Fayetteville.
A federal grand jury issued an indictment for Mejia-Galdamez and Alonso on July 22, 2015. They each pleaded guilty to the charges in November, 2015.
These cases were investigated by the Rogers Police Department and the Drug Enforcement Administration. Assistant United States Attorney Brice White prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Two Mexican Nationals Ordered Detained Pending Trial on Federal Heroin Trafficking ChargeRead the Press Release
ALBUQUERQUE – This morning a U.S. Magistrate Judge sitting in Albuquerque, N.M., found probable cause to support a criminal complaint charging Francisco Rodriguez-Moreno, 26, and Octavio Lopez-Ramirez, 31, both Mexican nationals, with heroin trafficking offenses. Both men, who are illegally in the United States and residing in Albuquerque, were ordered detained pending trial.
Rodriguez-Moreno and Lopez-Ramirez were arrested on March 2, 2016, by the DEA and the HIDTA Region III Narcotics Task Force after they executed searches on Rodriguez-Moreno’s vehicle and the residence in which both men reside. The agents allegedly seized 425 gross grams of heroin from Rodriguez-Moreno’s vehicle and 1070.6 gross grams of heroin from the residence. The agents also allegedly seized more than $8000 and drug paraphernalia from the residence and more than $7000 from Rodriguez-Moreno.
If convicted of the crimes charged in the criminal complaint, Rodriguez-Moreno and Lopez-Ramirez face a statutory minimum of ten years and a maximum of life in federal prison. Charges in criminal complaints are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the DEA and the HIDTA Region III Narcotics Task Force.
Assistant U.S. Attorney Presiliano Torrez is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
The HIDTA – High Intensity Drug Trafficking Area – Program is a program of the White House Office National Drug Control Policy (ONDCP) that facilitates cooperation among federal, state, local and tribal law enforcement to foster intelligence sharing and to support the execution of effective enforcement operations aimed at dismantling drug trafficking organization in critical drug trafficking regions of the United States. The HIDTA Region III Narcotics Task Force is comprised of the New Mexico State Police, the Santa Fe County Sheriff’s Office and the Santa Fe Police Department.
Tennessee Man Indicted for Veterans Unemployment Compensation Benefit FraudRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Tennessee man was indicted and arrested for fraudulently obtaining $7,319 in Veterans’ unemployment compensation benefits from the Pennsylvania Department of Labor & Industry.
According to U.S. Attorney Peter Smith, Earl Lafayete Hall, III, age 35 of Arlington, Tennessee, is charged with 12 Counts of Mail Fraud and 10 Counts of Money Laundering. According to the Indictment filed on March 2, 2016, Hall applied for Veteran’s unemployment compensation benefits under the false name and identity of another individual. The bogus application was submitted to the Pennsylvania Department of Labor & Industry in Harrisburg. As a result, the Department mailed Hall unemployment compensation benefit checks totaling $7,319 between July and November of 2014.
The Indictment also alleges the benefit checks were deposited into a bank account Hall controlled in Illinois. Thereafter, $4,900 in cash was removed from the account. The cash withdrawals form the basis of the Money Laundering counts in the Indictment.
The Indictment also charges Hall with one count of Aggravated Identity Theft.
The indictment was unsealed yesterday following Hall’s arrest by federal agents in Arlington. Hall appeared before a U.S. Magistrate Judge in Memphis, Tennessee for a bail hearing and was released on a $5,000 unsecured bail.
Hall received the benefits under the Unemployment Compensation for Ex-Service Members Program, which is commonly known as “The UCX Program.” The UCX Program is a federally funded U.S. Department of Labor program administered by the States. Under this federal-state partnership, the States pay out unemployment insurance benefits to the veterans and are subsequently reimbursed by the various branches of the military. Benefits are based upon the military wages and pay grade of the serviceman at the time of his or her separation from military service. There is no payroll deduction for UCX unemployment insurance protection.
The investigation is being conducted by the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering & Fraud Investigations, U.S. Defense Criminal Investigative Service, U.S. Postal Inspection Service with assistance from Pennsylvania Department of Labor and Industry, Internal Audits Division, Pennsylvania Department of Labor and Industry, Office of Unemployment Compensation Benefits and Policy, and the Pennsylvania Department of the Treasury, Office of Unemployment Compensation Disbursements. The case is being prosecuted by Assistant U.S. Attorney Kim Douglas Daniel.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of 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 of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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State Inmate Sentenced to 70 Months for Threatening JudgeRead the Press Release
TALLAHASSEE, FLORIDA – Michael Dean Drew, 43, originally from Jacksonville but now an inmate of the Florida Department of Corrections, was sentenced to 70 months in federal prison today for mailing a threatening letter to a federal judge with the intent to extort a thing of value. United States District Judge Robert Hinkle imposed this sentence consecutively to Drew’s 30-year state sentence for dealing in stolen property and to Drew’s 28-month federal sentence for threatening a different federal judge. The sentence was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
Drew pled guilty to the current charge on December 2, 2015. Court records show that Drew committed the stolen property offense in Jacksonville, less than two months after his release from the Florida Department of Corrections. He received the 30-year sentence under Florida’s Prison Release Reoffender law. In 2006, Drew challenged the 30-year sentence in federal court in Jacksonville. Relief was denied in 2009. In 2011, Drew sent threatening letters to the federal judge who denied him relief and to a Florida Assistant Attorney General involved in those proceedings. Drew was charged with mailing threatening communications in U.S. District Court for the Middle District of Florida and sentenced to 28 months in prison in 2012.
In June 2015, Drew sent threatening letters to the federal judge who presided over his 2012 prosecution, still seeking relief on the underlying state conviction. He was being held at the Wakulla Correctional Institution when he wrote the letters. Drew will be returned to the Florida Department of Corrections, so that he will complete his state sentence first. Thereafter, he will serve his federal sentences in the Federal Bureau of Prisons.
Acting United States Attorney Canova praised the work of the United States Marshals Service, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Florida Department of Corrections, whose joint investigation led to the conviction in this case. This case was prosecuted by Assistant United States Attorney Michael T. Simpson.
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. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available 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]Springfield Felon Sentenced for Illegally Possessing FirearmRead the Press Release
BOSTON – A previously convicted felon was sentenced today in U.S. District Court in Springfield for being in possession of a firearm with an obliterated serial number.
Lavon Pemberton, 28, was sentenced by U.S. District Court Judge Michael A. Ponsor to seven years in prison and three years of supervised release after pleading guilty in September 2015.
On June 15, 2012, Pemberton possessed a Taurus .357 caliber handgun loaded with six rounds of hollow-point .380 ammunition. Law enforcement officers discovered the firearm in Pemberton’s backpack after arresting him on an outstanding warrant. Pemberton has a an extensive, violent criminal history, including a 2012 conviction for attempted second degree assault for which he was sentenced to a five-year suspended sentence just three days before being caught with the handgun and ammunition.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Commissioner John Barbieri of the Springfield Police Department, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Kevin O’Regan and Katharine A. Wagner of Ortiz’s Springfield Branch Office.
Shiprock Man Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Matthew Yazzie, 26, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to assault charges.
Yazzie was arrested on Sept. 21, 2015, on a federal indictment charging him with assaulting two women and a man on June 13, 2015, in Indian Country in San Juan County, N.M. According to the indictment, the victims suffered serious bodily injuries as a result of the assaults.
During today’s hearing, Yazzie pled guilty to the indictment without the benefit of a plea agreement. In its proffer of evidence, the United States indicated that Yazzie assaulted the victims by crashing the vehicle he was driving while under the influence of alcohol.
At sentencing, Yazzie faces a statutory maximum penalty of ten years in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI, the New Mexico State Police and the Shiprock office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Elaine Y. Ramirez is prosecuting the case.
Sentencings for February 26 - March 3, 2016Read the Press Release
Jayde Mucklow, 29, of Englewood, Colorado, was sentenced by Federal District Court Judge Scott W. Skavdahl on March 3, 2016, for possession with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, and aiding and abetting. Mucklow was arrested in Denver, Colorado. She received 66 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $250.00 fine and a $100.00 special assessment. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Jose Pena-Garcia, aka Jose Garcia, 27, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 3, 2016, for illegal re-entry of a previously deported alien into the United States. Pena-Garcia was arrested in Gillette, Wyoming. He received time served, plus 10 days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security.
Julia Cesar Munoz-Hernandez, aka Emiliano Martinez, aka Julio Hernandez, 30, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 3, 2016, for illegal re-entry of a previously deported alien into the United States. Munoz-Hernandez was arrested in Gillette, Wyoming. He received time served, plus 10 days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security.
Daniel Serrano-Alvarado, 41, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 3, 2016, for illegal re-entry of a previously deported alien into the United States. Serrano-Alvarado was arrested in Casper, Wyoming. He received time served, plus 10 days, was ordered to pay a $100.00 special assessment and is subject to
deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security.
Jose Yanez-Salinas, 27, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on March 1, 2016, for illegal re-entry of a previously deported alien into the United States. Yanez-Salinas was arrested in Jackson, Wyoming. He received time served, plus 10 days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security.
Jose Luis Cruz-Ramos, 40, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on March 1, 2016, for illegal re-entry of a previously deported alien into the United States. Cruz-Ramos was arrested in Jackson, Wyoming. He received time served, plus 10 days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security.
Raymond Austin Roberts, 39, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on February 26, 2016, for possession with intent to distribute a mixture of substance containing a detectable amount of methamphetamine. Roberts was arrested in Casper, Wyoming. He received 130 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Scranton Man Sentenced to 10 Years in Prison for Sex Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jimmy Cantelmo, age 27, Scranton, was sentenced today to 10 years in prison by Senior U.S. District Court Judge James M. Munley.
According to United States Attorney Peter Smith, Cantelmo previously pleaded guilty to conspiracy to commit sex trafficking of a minor. Cantelmo admitted to conspiring with others to commit the crime during February through August 2014.
The sex trafficking activity involved placing photographs of the minor along with ads in the adult “escort” section of a website; renting motel rooms in Lackawanna and Luzerne Counties where the prostitution activities occurred; and serving as security or “bodyguards” at the motels where the commercial sex acts took place.
Cantelmo was indicted by a federal grand jury in April 2015, as a result of an investigation by Homeland Security Investigations, the Pennsylvania State Police, and the Lackawanna County District Attorneys Office. Four persons have been charged in connection with the investigation. Sean Cantelmo, Jimmy Cantelmo’s brother, previously pleaded guilty and was sentenced to 151 months in prison. Justin Strait pleaded guilty and is awaiting sentencing. A fourth defendant is awaiting trial.
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
Judge Munley also ordered that Cantelmo serve five years on supervised release following his prison sentence. Cantelmo will also have to comply with the registration requirements of the Sex Offender Registration and Notification Act when released from prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Rogers Man Sentenced to 63 Months in Federal Prison for Child Pornography OffenseRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that Donnie Vest, age 61, of Rogers, Arkansas, was sentenced to 63 months imprisonment followed by 10 years of supervised release for Receipt of Child Pornography and ordered to pay a $15,000.00 fine. The sentencing took place before the Honorable Timothy L. Brooks in the United States District Court in Fayetteville.
According to court records, in January, 2014, the Northwest Arkansas Internet Crimes Against Children Taskforce identified an account with a known IP address that was receiving child pornography using a file sharing program. The IP address returned to Vest’s address located in Rogers. On or about June 26, 2014, law enforcement executed a search warrant at Vest’s residence, at which time he admitted to downloading and receiving images of child pornography onto his computer. A subsequent forensic examination of the hard drive on his computer revealed multiple images of child pornography. Vest pleaded guilty to the charge on December 1, 2015.
This case was investigated by Homeland Security Investigations and the Internet Crimes Against Children Taskforce. Assistant United States Attorney Denis Dean prosecuted the case for the United States.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and their Criminal Division Child Exploitation and Obscenity Sections (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
Rockwall, Texas, Man Sentenced to 80 Months in Federal Prison on Investment Fraud ConvictionRead the Press Release
DALLAS — Mark Lee Cleaton, 34, of Rockwall, Texas, was sentenced yesterday afternoon by U.S. District Judge Jane J. Boyle to 80 months in federal prison and ordered to pay $343,353.00 in restitution, following his conviction at trial in October 2015 on four counts of wire fraud stemming from an investment fraud scheme he ran, announced U.S. Attorney John Parker of the Northern District of Texas.
Judge Boyle ordered that he surrender to the Bureau of Prisons on April 6, 2016.
Cleaton was the managing member of North American Capital, LLC, formerly located at 2001 Bryan Street, Suite 2125, in Dallas. He created a limited partnership, North American Capital Investment Fund, LP (NACIF), in August 2009. From approximately August 2009 to July 2010, Cleaton solicited $350,000 in investments in NACIF from several individuals, promising to invest that money in short-term, high-yield real estate projects, when, in reality, he misappropriated all the money for himself, spending none of it as promised.
Throughout the scheme, Cleaton provided false investment memoranda and marketing materials to potential investors concerning the investment opportunity. Some of that material falsely represented an audited “7 year performance” history of NACIF, when as Cleaton well knew, NACIF had not even existed for seven years or had any rate of return.
Cleaton instructed each investor to wire funds into a checking account over which he had sole signatory authority. By the time he received the first investor’s funds, he had been locked out of his office in Bryan Tower for non-payment of two months’ rent. Cleaton immediately spent the investors’ money within weeks on personal expenses and unrelated business ventures, including credit card bills, trips to Hawaii, cash withdrawals, a used car business, and a high-end car audio/stereo store. He also intentionally failed to disclose to subsequent investors that he had already raised and spent prior investors’ money. Additionally, he made lulling payments to one victim investor from a later investor’s funds.
The FBI investigated the case. Assistant U.S. Attorney Nick Bunch and Deputy Criminal Chief Assistant U.S. Attorney Katherine Miller prosecuted.
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Repeat Bank Robber Sentenced to 12 Years in PrisonRead the Press Release
A long time bank robber who has done multiple prison terms for his crimes was sentenced today in U.S. District Court in Tacoma to 12 years in prison for a January 2015 bank robbery, announced U.S. Attorney Annette L. Hayes. LARRY G. BAILEY, JR., 53, of Chehalis, Washington has spent most of his adult life in prison for bank robbery. This latest robbery occurred shortly after he escaped from a half-way house following his last ten year prison term. At sentencing U.S. District Judge Ronald B. Leighton said the prison term was necessary to protect the community.
According to records filed in the case, on January 26, 2015 BAILEY walked into a Chase bank branch in Chehalis dressed as an elderly woman, with a canvas bag and one of his hands hidden under his shirt. He introduced himself to the bank manager saying he was “on his third strike.” BAILEY told the manager he had a gun and wanted to be taken to the vault. BAILEY took $36,000 from the vault and fled on a silver bicycle. A Lewis County Sheriff’s Deputy spotted BAILEY riding away near an I-5 overpass and after a brief foot pursuit took him into custody. All of the stolen money was recovered.
BAILEY’s bank robbery history begins in the 1980s. His first prison term for bank robbery was 30 months and he was released in 1990. In 1991 he was sentenced to nearly ten years in prison for bank robberies in Kansas and Spokane, Washington. Five years after his release on that prison term, in July 2004, BAILEY was arrested and sentenced to ten years in prison for another bank robbery in Spanaway, Washington. He escaped from a community corrections facility in Tacoma in March 2013, and was taken back into custody in August 2013. BAILEY was sent back to prison to finish his prison term. He had been out of prison less than a year when he committed the bank robbery in Chehalis.
The case was investigated by the Chehalis Police Department, the Lewis County Sheriff’s Office and the FBI. The case was prosecuted by Assistant United States Attorney Grady Leupold.
Red Feather Lakes Resident Indicted and Ordered Held Without Bond for Distribution and Possession of Child PornographyRead the Press Release
DENVER – Eli Traufield, age 42, of Red Feather Lakes, Colorado, was ordered held without bond by U.S. Magistrate Judge Nina Y. Wang earlier this week after being arrested based on an indictment alleging the distribution and possession of child pornography, U.S. Attorney John Walsh and FBI Denver Division Special Agent in Charge Thomas Ravenelle announced. Traufield was indicted on February 23, 2016. He soon thereafter appeared in court, where he was advised of his rights and the charges pending against him. He was then arraigned, and at the detention hearing Magistrate Judge Wang ordered the defendant held without bond because she believed he was a flight risk. Traufield had multiple misdemeanor offenses for which he failed to appear in court.
According to court documents, as well as a proffer before the court, an FBI agent, working in an undercover capacity out of the Minneapolis Field Office, began electronic communications with a Colorado resident who had child pornography to trade. The agent, posing as someone with similar interests, was able to download multiple videos and photos of child pornography images, all provided by the target turned defendant, Eli Traufield. Following additional investigation, Denver FBI agents, after obtaining a search warrant, searched Traufield’s cell phone and found that Traufield had emailed himself child pornography so that he could later download it to a file sharing network so he could share it with others. He also had emailed other people looking for specific child pornography. There were also multiple chats regarding the defendant’s sexual interest in young girls.
The defendant faces two counts of distribution of child pornography. If convicted, Traufield faces not less than 5 years, and not more than 20 years in federal prison, as well as up to a $250,000 fine, per count. He also faces one count of possession of child pornography, which carries a penalty of not more than 10 years in federal prison, and up to a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation (FBI).
The defendant is being prosecuted by Assistant U.S. Attorney Valeria Spencer.
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
Randolph County Resident Sentenced for Methamphetamine OffenseRead the Press Release
On March 3, 2016, Brian T. Lane, a/k/a Squirrel, 32, of Coulterville, was sentenced on a methamphetamine offense, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
Lane, who had previously pled guilty to one count of conspiracy to distribute and manufacture methamphetamine, was sentenced to 100 months in federal prison, to be followed by 3 years’ supervised release, and fined $200.00. Evidence at the plea and sentencing hearings established that Lane was involved with others in the manufacture and distribution of methamphetamine. Lane obtained and collected pseudoephedrine from others for use in the manufacture of methamphetamine. At sentencing, the judge found that Lane was responsible for the possession of 151.88 grams of pseudoephedrine and 2 grams of ice/methamphetamine. The offense occurred between 2013 and June 2015, in Perry, Jackson, and Randolph Counties. Two co-defendants have previously been sentenced for their role in the methamphetamine conspiracy. Five co-defendants have pled guilty and are awaiting sentencing. Four co-defendants have pled not guilty and are awaiting an April 18, 2016, jury trial.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Perry County Drug Task Force, Percy Police Department, Steeleville Police Department, Mascoutah Police Department, Illinois State Police Methamphetamine Response Team, DuQuoin Police Department, Pinckneyville Police Department, and Drug Enforcement Administration. The Randolph and Perry County State’s Attorney’s Offices also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Pueblo Woman Convicted of Conspiracy, Drug Trafficking and Firearm ChargesRead the Press Release
DENVER – A jury in U.S. District Court in Denver late yesterday found Leilani Marie Ontiveras-Martinez, age 34, of Pueblo, guilty of conspiracy, drug trafficking and firearm charges, U.S. Attorney John Walsh, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Ken Croke and Pueblo Police Chief Luis Velez announced. The jury trial was before U.S. District Court Judge William J. Martinez, lasted four days, with the jury deliberating approximately 2 hours before reaching their verdict on the first of two phases. They deliberated a short while longer before returning a guilty verdict on the second of the two phases. Ontiveras-Martinez, who appeared at the trial in custody, is scheduled to be sentenced by Judge Martinez on July 6, 2016.
Ontiveras-Martinez was indicted by a federal grand jury in Denver on October 6, 2014 on charges of conspiracy to distribute a controlled substance, three counts of distribution of a controlled substance, possession of a firearm during a drug trafficking crime, being a felon in possession of a firearm, and being a felon in possession of ammunition.
The defendant is a Pueblo gang member and drug dealer. According to court testimony, she conspired with another person to distribute heroin, and she possessed and distributed heroin, methamphetamine and crack cocaine. The Pueblo Police Department investigated the defendant, and was able to develop enough information to obtain state search warrants for her car, home and person.
After Ontiveras-Martinez went through the drive thru of a fast food restaurant on June 18, 2014, the Pueblo Police Department initiated a traffic stop. Inside her purse law enforcement found 50 grams of heroin, which is worth about $5,000 on the street. In her house officers found in her dresser drawer multiple baggies containing about 150 grams of heroin, which is worth about $15,000 on the street. Also in her dresser drawer, she had baggies containing 113 grams of methamphetamine, worth about $13,000 on the street. In a small safe under Ontiveras-Martinez’s bed authorities found a bundle of cash, as well as another 4.5 grams of heroin, 20 grams of methamphetamine, and 7 grams of crack cocaine. Also within arms’ reach of the drugs in her bedroom, hidden in between the mattress and boxsprings of her bed was a 12 gauge shotgun loaded with three rounds, as well as a plastic baggie with ammunition. In total, Ontiveras-Martinez had well over $30,000 worth of drugs in her purse and in her house.
“This case demonstrates the shared commitment of the U.S. Attorney’s Office and the ATF, working closely with the Pueblo Police Department and other southern Colorado law enforcement agencies to protect the people of the greater Pueblo area,” said U.S. Attorney John Walsh. “This defendant, a gang member and drug dealer in Pueblo, was rightly convicted of drug trafficking and firearm violations following a jury trial, and faces substantial federal criminal prison time.”
“Ontiveras-Martinez committed herself to a life of violent crime a long time ago. She repeatedly promoted drug use and violence in our community and preyed on troubled individuals,” said SAC Ken Croke. “Thanks to the collaborative effort between Pueblo PD, the U.S. Attorney’s Office and ATF, she will be unable to add to her criminal record or continue to negatively impact the citizens of Pueblo.”
“Ms. Ontiveras-Martinez is a career criminal and gang member in the City of Pueblo. She was a high level drug trafficker, dealing in Methamphetamines, Heroin, and Cocaine,” said Pueblo Police Chief Dr. Luis Velez. “Her conviction in Federal Court may be a precursor to similar collaborations in the future between municipal agencies and Federal agencies. I want to thank our Narcotics Officers, our Task Force Officers, and all of the Federal Agents and Prosecutors that took part in this investigation.”
Co-defendant Colter Grant Martinez, age 35, of Pueblo, was sentenced by Judge Martinez to serve 120 months (10 years) in federal prison for firearm and drug offenses. His federal prison sentence was also ordered to be served concurrently with any state imprisonment.
The defendant faces not more than 20 years in federal prison, and up to a $1,000,000 fine for conspiracy to distribute heroin. She faces not more than 20 years in federal prison, and up to a $1,000,000 fine for distribution of crack cocaine. Further, she faces not less than 10 years, and up to life in federal prison, as well as a $10,000,000 fine for distribution of methamphetamine. Ontiveras-Martinez faces not less than 5 years, and up to life in federal prison, as well as a $5,000,000 fine, for distribution of heroin. She faces not less than 5 years, to be served consecutively to any other prison sentence, for possession of a firearm during a drug trafficking offense. Finally, she faces not more than 10 years in federal prison, and up to a $250,000 fine for the one count of being a felon in possession of a firearm and one count of being a felon in possession of ammunition.
This case was investigated by the Pueblo Police Department’s Narcotics Unit and the ATF Gun Task Force.
The defendants were prosecuted by Assistant U.S. Attorneys Kurt Bohn and Jamie Mendelson.
Pittsburgh Man Pleads Guilty to Drug ChargeRead the Press Release
PITTSBURGH - A Pittsburgh resident pleaded guilty in federal court to a charge of conspiracy to distribute crack cocaine, United States Attorney David J. Hickton announced today.
Ronald Broadus, 42, pleaded guilty to one count 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 government received authorization to intercept wire and electronic communications over Broadus’s phone for a period of 30 days. During that timeframe, Broadus was intercepted over the wire conspiring with others to possess with intent to distribute and distribute crack cocaine.
Judge Hornak scheduled sentencing for June 27, 2016. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, 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 Broadus on 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 Broadus.
Pennsylvania Man Sentenced to 30 Years in Prison for Sex TraffickingRead the Press Release
The Justice Department announced today that Corderro Cody, 28, of Allentown, Pennsylvania, was sentenced today to 30 years in prison for running a sex trafficking operation.
Cody pleaded guilty on Oct. 30, 2015, to one count of conspiracy to commit sex trafficking by force, fraud or coercion; 12 counts of sex trafficking; one count of conspiracy to transport individuals across state lines for the purpose of prostitution and one count of sex trafficking of a minor. In addition to the prison term, U.S. District Court Judge Edward G. Smith of the Eastern District of Pennsylvania ordered 20 years of supervised release and a $1,500 special assessment.
Since at least 2009 through May of 2014, Cody recruited women to work as prostitutes, referred to his prostitution business as the “program” and advertised the women on Backpage.com. The women were sometimes driven to other states and forced to perform sexual acts. Cody recovered and kept most, if not all, of the money generated by the sexual acts. He also used physical force in the form of rape and violent assaults as well as extreme emotional manipulation when the women did not adhere to the “program” and to maintain the women performing commercial sexual acts. Cody forced one victim to work for him as a prostitute when she was just 17 years old.
“Cody operated a vicious sex trafficking scheme, using brutal physical attacks and emotional abuse to compel his victims to continue selling their bodies for his profit,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Civil Rights Division remains fiercely committed to holding traffickers accountable for their reprehensible conduct, and to safeguarding the rights and dignity of survivors of this heinous crime.”
“The sentence imposed today will ensure that this defendant is unable to subject other girls and women to the tortures that these victims endured,” said U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania.
“Investigations like this highlight the collaborative efforts of the many law enforcements agencies involved in the aggressive fight against human trafficking,” said Acting Special Agent in Charge Jack P. Staton of U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI) in Philadelphia. “This sentence should serve as a warning to all individuals and criminal groups involved in the trafficking of minors and women that we are determined to investigate and prosecute to the fullest extent of the law all that are involved in this heinous crime.”
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations and the Allentown Police Department. It was prosecuted by Assistant U.S. Attorney Sherri A. Stephan Eastern District of Pennsylvania and Trial Attorney Anita Channapati of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Pawn Shop Owner Pleads Guilty to Five Year Scheme to Sell Stolen GoodsRead the Press Release
Baltimore, Maryland – Noel Erik Anshel, age 48, of Owings Mills, Maryland pleaded guilty today to transportation of stolen goods.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Chief Gary Gardner of the Howard County Police Department; and Commissioner Kevin Davis of the Baltimore Police Department.
According to Anshel’s plea agreement, from January 1, 2010 to January 1, 2014, he was part owner of Hilltop Cellular, a pawn shop located in the 5400 block of Reisterstown Road in Baltimore. Anshel was the sole owner and manager of the shop from January 1, 2014 to August 12, 2015.
Anshel admitted that beginning from at least January 1, 2010 and continuing through August 12, 2015, he paid cash to “boosters,” a common term for shoplifters, in exchange for stolen products, including construction tools, pressure washers, kitchen appliances, electrical generators, and consumer electronics. The products were frequently new and still in the original box. The boosters brought the stolen items to Hilltop Cellular, where Anshel purchased the items, knowing that the boosters stole them from retail establishments. Anshel paid the boosters far less than the products’ retail value. Anshel paid at least three of his “regular” boosters over $40,000 each for stolen products.
Anshel had a license to resell “second-hand” merchandise at Hillside Cellular, but would list the stolen items on eBay as “new” and “brand new.” Most of the stolen items were sold to individuals residing outside of Maryland, and Anshel would ship the items through the U.S. Post Service and other commercial carriers.
During an investigation of an individual believed to be stealing items from a Home Depot store, Howard County Police Department officers followed the individual from a Home Depot store where the individual stole several items, to Hilltop Cellular where the individual sold the items to Anshel. According to his plea agreement, investigators spoke with Anshel who stated that, “90% of what I buy is stolen,” and “it’s the cost of doing business.” A subsequent search warrant executed at Hilltop Cellular recovered stolen property worth approximately $20,000, including dishwashers and circular saws.
The total estimated loss from the scheme is approximately $550,000. Anshel used the proceeds of the scheme to purchase, among other things, six houses in Baltimore.
As part of his plea agreement, Anshel will be required to forfeit the six properties, funds held in four PayPal accounts and six bank accounts, as well as property seized from his pawn shop.
Anshel and the government have agreed that if the Court accepts the plea agreement Anshel will be sentenced to 46 months in prison. U.S. District Judge J. Frederick Motz has scheduled sentencing for June 10, 2016 at 10:00 a.m.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service, Howard County Police Department, and Baltimore City Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Aaron S. J. Zelinsky, who is prosecuting the case.
Ottawa County Resident, Robert Allen Haveman, Charged with Wire Fraud and Money Laundering in $16 Million Fraud SchemeRead the Press Release
Robert Haveman Has Agreed To Plead Guilty and Repay $16,240,000
GRAND RAPIDS, MICHIGAN — Robert Allen Haveman, 68, of Ottawa County, Michigan, was charged with two felonies in connection with a scheme to defraud the Elsa D. Prince Living Trust between 1999 and 2015, U.S. Attorney Patrick A. Miles, Jr. announced today. Haveman has signed a plea agreement in which he waived his right to indictment by a Grand Jury and agreed to enter guilty pleas to wire fraud and money laundering.
The felony charges filed in U.S. District Court in Grand Rapids allege that Bob Haveman, while employed by EDP Management Company ("EDP") in Holland, Michigan, devised a scheme to defraud to obtain money belonging to Elsa D. Prince-Broekhuizen and the Elsa D. Prince Living Trust ("Prince Trust"). As part of his fraud scheme, it is alleged that Haveman, who primarily managed private equity investments for EDP, transferred money belonging to Ms. Prince-Broekhuizen and the Prince Trust to his personal bank account and other bank accounts for his personal use and investment activities. Haveman allegedly caused false entries to be made in the books and records of EDP to disguise his theft of money, and made material misrepresentations to and concealed material facts from Ms. Prince-Broekhuizen and others. Haveman also is charged with money laundering in connection with the purchase of vacant land with Lake Michigan frontage in Ottawa County.
Haveman faces a maximum sentence of 20 years in prison on the fraud charge and a maximum sentence of 10 years in prison for money laundering. The Court will determine the sentence after considering the federal sentencing guidelines and statutory sentencing factors.
Haveman has signed a plea agreement in which he agreed to plead guilty to the charges and admitted causing $16,240,000 in losses to the Prince Trust. An arraignment and change of plea will be scheduled with the Court. Until a defendant enters his plea and is found guilty, charges in a felony information are merely accusations, and a defendant is presumed innocent unless and until proven guilty in a court of law.
Internal Revenue Service Criminal Investigation is investigating this matter and Assistant U.S. Attorney Christopher O’Connor is prosecuting the case.
END
Orangevale Man Arrested Today for Child Pornography ChargesRead the Press Release
SACRAMENTO, Calif. — An Orangevale resident was arrested today after a federal grand jury returned a four-count indictment on Thursday charging him with distribution, receipt and possession of child pornography and obstruction of justice, United States Attorney Benjamin B. Wagner announced. Dennis Boyle, 52, was arraigned today and pleaded not guilty. He is in custody, and a detention hearing has been scheduled for March 10, 2016.
According to court documents, law enforcement agents identified a user on a messenger service who was offering videos of child pornography in an online chat room. The investigation led to the residence of Boyle. Between August and October of 2015, Boyle allegedly distributed and received depictions of minors engaged in sexually explicit conduct. Boyle is alleged to have obstructed justice when he attempted to persuade a friend to delete electronic evidence stored on a laptop computer and on remote servers.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Special Assistant United States Attorney Josh F. Sigal is prosecuting the case.
If convicted, Boyle faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Operation Heat Wave Targets Florida Identity Theft, FraudRead the Press Release
The State Department’s Diplomatic Security Service Miami Field Office, working with multiple federal, state, and local enforcement authorities, has apprehended nine individuals suspected of passport fraud.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida and Robert Grech, Special Agent in Charge of the State Department’s Diplomatic Security Service (DSS), Miami Field Office, made the announcement.
Operation Heat Wave, a Florida statewide law enforcement operation that resulted in the suspects’ apprehension was conducted from February 18, 2016 through February 26, 2016 and spanned from Key Largo to Jacksonville.
“The U.S. Attorney’s Office and our federal, state and local law enforcement partners will continue to investigate and identify for prosecution individuals who compromise our nation’s security through passport fraud,” stated U.S. Attorney Wifredo A. Ferrer.
“The apprehension of fugitives and suspects delivers a clear message that federal, state, and local law enforcement authorities will find and bring to justice any individuals who attempt to defraud the U.S. government,” said Robert Grech, Special Agent in Charge of the DSS Miami Field Office. “If you engage in passport or visa fraud or engage in other forms of identity theft, sooner or later we will track you down.”
Operation Heat Wave generated the filing of federal criminal charges, by complaint, information or indictment, against a total of nine individuals for passport and/or visa fraud offenses. Seven individuals were charged in the Southern District of Florida for making false statements in passport applications. Two additional individuals were charged in the Middle District of Florida for making false statements in applications for a passport.
If convicted, individuals charged with falsifying a passport application will face a maximum penalty of 10 years’ imprisonment, and up to a $250,000 fine.
The DSS Miami Field Office is responsible for eight southern states. DSS personnel from across the region and approximately 100 federal, state, and local law enforcement officers were among those involved in support of Operation Heat Wave.
DSS partnered with the U.S. Attorney’s Offices for the Southern and Middle Districts of Florida, along with the Department of Homeland Security (DHS) Enforcement and Removal Operations; DHS Homeland Security Investigations; U.S. Marshals Service; Florida Highway Patrol; Miami-Dade Police Department; and several other local law enforcement agencies.
Mr. Ferrer commended DSS for leading this operation, and thanked the U.S. Attorney’s Office for the Middle District of Florida and all participating agencies for their investigative efforts and assistance. The cases in the Southern District of Florida are being prosecuted by Assistant United States Attorneys Jennifer Keene, Theodore Cooperstein, Carmen Lineberger, Jonathan Stratton and Brian Shack.
An information, complaint and indictment are merely legal filings containing accusations and every defendant is presumed innocent until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Olive Branch Man Sentenced for Two Separate Fraud Schemes Totaling More Than $2 MillionRead the Press Release
Memphis, TN – An Olive Branch, Mississippi man has been sentenced to nine years for executing two separate fraud schemes that defrauded victims of more than $2 million. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, between December 2012 and October 2014, Anthony Davis, 44, of Olive Branch, Mississippi, owned ADLM Automotive, Inc., a Mississippi-based wholesale automobile dealership that conducted business in Memphis. He used the company to promote a purported investment opportunity that ultimately defrauded investors of nearly $1.8 million.
During the aforementioned time period, Davis fraudulently told victims that they could purchase a Retail Installment Contract and Security Agreement (RICSA) from him through ADLM Automotive. He also told them that when he sold a vehicle to a customer and the customer financed any part of the purchase price, the customer would sign a RICSA, and an application for a title with the appropriate state (e.g., Tennessee, Arkansas, or Mississippi) agency responsible for issuing vehicle titles. Davis represented to the victims that they would have a perfected security interest in the vehicle which was the subject of the RICSA because their security interest would be noted on the Certificates of Title.
Davis told victims that monthly payments on the RICSAs would be collected by a Georgia-based company known as Vehicle Acceptance Corporation (VAC), and that each customer had signed an Automated Clearing House (ACH) payment form so that monthly payments would be automatically deducted from their bank account. Davis further represented that ADLM Automotive maintained an account with VAC and would direct VAC to route customers’ payments to the victims’ bank accounts. More so, Davis told the victims that if a customer defaulted and failed to make payments under the terms of the RICSA, ADLM Automotive would repurchase the non-performing loan, or give the victim the option of replacing the non-performing loan with a performing loan of equal or greater value.
Due to his fraudulent representations, Davis received investments from multiple victims. All along, Davis knew the RICSAs, customers, vehicles and titles did not exist.
In addition, and according to the charging document, Davis executed a separate fraud scheme between January 2014 and August 2014. This scheme involved Davis searching for and obtaining Social Security Numbers to create fraudulent credit profiles. The credit profiles and other false and fraudulent identifying information were used to obtain credit to finance the purchase of vehicles. As a result of the scheme, Davis and co-conspirators fraudulently obtained and attempted to obtain credit to finance the purchase of approximately 16 vehicles. The losses associated with this scheme were more than $457,000.
In December 2015, Davis pled guilty to two counts of wire fraud before U.S. District Judge John T. Fowlkes Jr.
On Friday, March 4, 2016, Judge Fowlkes sentenced Davis to nine years in prison.
The amount of restitution Davis will pay to victims will be determined on Wednesday, March 9, 2016. In the agreement filed at the time of his plea, Davis agreed to pay restitution in the total amount of $1,763,829.50 to those victimized in the first scheme; and a total amount of $457,507.06 to those victimized in the second scheme.
The case was investigated by the U.S. Postal Inspection Service, U.S. Marshal’s Service, and the Social Security Administration – Office of Inspector General.
Assistant U.S. Attorney Carroll L. Andre III prosecuted this case on the government’s behalf.
Ohio Convicted Murderer Sentenced to A Lifetime of Incarceration Without Parole for the 2005 Murder of Woman at Fort Knox Military BaseRead the Press Release
Ohio Woman had been missing since 2005
Formerly convicted of 2005 murder in Toledo, Ohio
PADUCAH, Ky. – A Toledo, Ohio, convicted murderer was sentenced today by Senior Judge Thomas B. Russell, in United States District Court, to a lifetime of incarceration, without the possibility of parole, for the 2005 murder of a woman at Fort Knox Military Base, announced United States Attorney John E. Kuhn, Jr.
In court, defendant Ernest Otto Smith, 49, admitted that on or about January 7, 2005, he murdered Cathy M. Barnett willfully, deliberately, maliciously, and with premeditation, on the grounds of Fort Knox, within the special territorial jurisdiction of the United States.
“This life sentence is a just punishment for the brutal murder Smith committed at Fort Knox,” stated U.S. Attorney, John Kuhn.“And because Smith will not ever be paroled, we have insured the public’s safety.”
Smith had previously admitted that on January 3, 2005, he robbed and shot and killed James Dillingham in Toledo, Ohio. It is believed Barnett was present during the murder. Shortly after the murder, Smith and Barnett fled Toledo and ultimately headed south to Kentucky in Smith’s van. Smith had formerly lived and worked near Fort Knox.
During the trip to Kentucky Smith decided to murder Barnett because she witnessed the Dillingham murder and could tell the police about the murder. On January 7, 2005, Smith’s van broke down in Kentucky and Smith and Barnett hitchhiked and they were dropped off near Fort Knox. Smith and Barnett walked approximately one quarter of a mile down a service road off the main highway, into a wooded area located on the grounds of Fort Knox, in Meade County, Kentucky. In the wooded area, Smith first attempted to break Barnett’s neck, and then beat her on the head with a tree branch until Smith knew Barnett was dead. Smith left Barnett’s body in the woods and eventually traveled to Tennessee where he was arrested in Nashville on January 21, 2005. In March 2006, Smith was convicted in Ohio of the Dillingham murder and was sentenced to 32 years of imprisonment.
In late 2010, Smith spoke with his former parole officer, Dan Van Vorhis, who asked Smith what happened to Barnett. Over the course of several recorded conversations, Smith explained to Van Vorhis the details of her murder. Smith also identified where Barnett’s remains would be found. The Federal Bureau of Investigation (FBI) searched and found Barnett’s remains on the grounds of Fort Knox, in the wooded area identified by Smith.
This case was prosecuted by Assistant United States Attorney David Weiser and was investigated by the Federal Bureau of Investigation.
Oak Brook Doctor Convicted in Kickback Scheme at Sacred Heart HospitalRead the Press Release
CHICAGO — A federal jury today convicted an Oak Brook doctor of illegally receiving benefits in exchange for referring elderly patients to Sacred Heart Hospital on Chicago’s West Side.
After a five-week trial, DR. VENKATESWARA R. “V.R.” KUCHIPUDI was convicted on one count of conspiracy to defraud the United States, and nine counts of illegally soliciting or receiving benefits in return for referrals of patients covered under a federal health care program. Each count carries a maximum sentence of five years in prison and a $250,000 fine.
U.S. District Judge Matthew F. Kennelly scheduled a sentencing hearing for June 2, 2016, at 1:30 p.m.
Dr. Kuchipudi, 69, is the tenth defendant convicted in a multi-year investigation of the now-shuttered hospital at 3240 W. Franklin Blvd. in Chicago. From 2001 through April 2013, Sacred Heart executives conspired to pay kickbacks and bribes to physicians to induce them to refer patients for services that would be reimbursed by Medicare and Medicaid. The scheme earned Sacred Heart millions of dollars in reimbursements from Medicare and Medicaid.
The prior convictions include EDWARD NOVAK, the hospital’s owner and chief executive officer; ROY PAYAWAL, the chief financial officer; CLARENCE NAGELVOORT and ANTHONY J. PUORRO, both of whom were chief operating officers; and four other physicians. Sacred Heart closed in 2013 in the aftermath of a federal law enforcement search of the hospital and the arrests of principal executives and Dr. Kuchipudi.
Evidence at Dr. Kuchipudi’s trial revealed that he was one of Sacred Heart’s most prolific sources of patient referrals. In exchange for his referrals, Sacred Heart provided Dr. Kuchipudi with free labor in the form of physician assistants and nurse practitioners. The free labor was provided not only inside Sacred Heart but also in Chicago-area nursing homes where many of Dr. Kuchipudi’s patients resided. Sacred Heart allowed Dr. Kuchipudi to bill Medicare and Medicaid for the services of the physician assistants and nurse practitioners as if he employed them himself.
Evidence at trial further revealed that Dr. Kuchipudi and Sacred Heart arranged for his patients to be transported long distances to Sacred Heart for treatment, even when the nursing homes in which they resided were closer to hospitals where Dr. Kuchipudi had privileges and which had more comprehensive facilities.
The conviction was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Lamont Pugh III, Special Agent-in-Charge of the Chicago Region of the U.S. Department of Health and Human Services Office of Inspector General; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The investigation was carried out by the Medicare Fraud Strike Force, which is part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative between the U.S. Justice Department and the U.S. Department of Health and Human Services to prevent fraud and to enforce anti-fraud laws around the country. Dozens of defendants have been charged in numerous fraud cases since the strike force began operating in Chicago in 2011.
The government is represented by Assistant U.S. Attorneys Joel Hammerman, Diane MacArthur, Kelly Greening and Brian Wallach.