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21 April 2016
Kilgore Sentenced to 60 Months in Prison after Pleading Guilty to Three Counts of Conspiracy to Commit Health Care FraudRead the Press Release
SALT LAKE CITY – Jacob J. Kilgore, a former owner of a Salt Lake City durable medical equipment company, will serve 60 months in federal prison after pleading guilty to three counts of conspiracy to commit health care fraud as a part of Medicare fraud scheme involving power wheelchairs. Three company sales representatives were sentenced Thursday, two receiving prison terms, for their role in the fraud scheme.
Kilgore, 36, of Fruit Heights, was the co-owner of and employed as the vice president, and later, president of Orbit Medical, a Utah- and Indiana-based national supplier of durable medical equipment that specialized in power wheelchairs. Orbit maintained three Utah offices in the Salt Lake City area. Kilgore acted as sales manager for Orbit’s western region sales territory which included offices in Utah, Arizona, Nevada, Idaho, Washington, and Oregon. The case was investigated by the agents of the FBI, the Defense Criminal Investigative Service, and Health and Human Services Office of Inspector General.
U.S. District Judge David Nuffer imposed the 60-month sentence for Kilgore last week. Kilgore will be on supervised release for 36 months following the completion of his federal prison sentence. As a part of the resolution of the case, Kilgore has agreed to pay $4 million in restitution in the case over the next eight months. The first installment of $1 million was paid at his sentencing. A second $1 million payment is due by June 1, 2016, with a final payment of $2 million due by Dec. 31, 2016 on the date of his sentence Kilgore also must forfeit $776,001, the amount of his personal gain from the criminal conduct.
In a sentencing memorandum submitted to the court as a part of the sentencing hearing, federal prosecutors told the court the fraud scheme was driven by money and drove the imposition of a monthly quota demanding each sales representative sell 10 power wheelchairs per month. “While the genesis of the quota remains unclear, Jake Kilgore enforced it relentlessly throughout Orbit Medical’s western regional offices, at times threatening sales reps with probation and, if low sales persisted, termination,” federal prosecutors wrote in the sentencing memorandum. Prosecutors said that pressure to perform and to reach unrealistic sales heights caused sales reps to alter physician charts to meet Medicare’s stringent medical necessity requirements.
“This was a serious offense. It was not a crime of opportunity. It involved significant planning and an undaunted, selfish desire by a durable medical equipment company executive to maximize his company’s bottom line at the expense of compromising the values and morals of scores of Orbit sales reps,” prosecutors wrote in their sentencing memorandum. To his credit, prosecutors wrote, “Jake Kilgore takes full responsibility for his actions.”
Federal prosecutors told the court that the sales reps were not innocent victims. “Many were young, inexperienced, hungry for success, and as is common in the sales industry, driven and competitive. Jake Kilgore knew that. He used commissions to entice sales reps, to encourage them, and, sadly, to corrupt them,” they wrote in a sentencing memorandum filed with the court.
“Kilgore’s pressure to perform and close power wheelchair sales never let up, and over time, caused sales reps to pursue more shortcuts, essentially ramping up the fraud and deception. Rather than facilitating mobility evaluations and obtaining proper chart notes, sales reps instead requested a signed prescription and any recent chart notes. With genuine physician chart notes in hand, sales reps chiseled away (electronically or via cut-and-paste), creating mobility evaluations that never occurred, concocting medical findings never made, and adding a physician signature never signed,” federal prosecutors said.
While noting that Hartman, Evans, and Workman have taken responsibility for their misdeeds and sought to make amends, “falsifying physician chart notes cannot be defended, sugar-coated, or swept under the rug,” federal prosecutors said.
Three sales representatives of the company, Hunter Hartman, age 31, of Ladera Ranch, Calif., David Evans, age 38, of South Jordan, and Morgan Scott Workman, age 37, of Farmington, each pleaded guilty to one count of conspiracy to commit health care fraud. Judge Nuffer imposed sentences on the three sale representatives Thursday morning. Hartman was sentenced to 4 months in prison and 36 months of supervised release. He must pay $585,786.62 in restitution in the case, an obligation he shares with Kilgore. Evans received a 6-month sentence and will be on supervised release for 36-months following his release from prison. He was ordered to pay $957,055.77 in restitution, a responsibility he shares with Kilgore. Workman was sentenced to 36 months of probation. He shares an obligation with Kilgore to pay $230,910.80 in restitution.
According to documents filed in court, throughout his employment at Orbit, Evans altered and concocted medical records resulting in approximately $957,055.77 in total reimbursements from the Medicare Trust Fund, paid under false and fraudulent pretenses. Hartman altered and concocted medical records resulting in approximately $585,768.62 in total reimbursements from the Medicare Trust Fund. Workman’s conduct resulted in about $230,910.80 in total reimbursements.
“The resolution of these four cases should discourage those in the health care industry tempted to cut corners and circumvent rules to maximize reimbursement from a health care benefit program for personal or business gain. Durable medical equipment executives or sales reps currently engaged in or contemplating fraud against these programs would do well to reconsider their conduct,” U.S. Attorney John W. Huber said today.
“The Salt Lake City FBI recognizes the significant collaborative effort among our federal partners in bringing this lengthy and complex health care fraud investigation to a suitable resolution. We underscore the importance of protecting the Medicare trust fund as well as other government and private insurance programs for legitimate medical needs. We encourage our Utah citizens to bring to our attention any activity within the health care arena that appears to be illegal or suspicious,” FBI Special Agent in Charge Eric Barnhart said today.
"Jacob Kilgore and Orbit Medical, Inc., overbilled federal health care programs, including the TRICARE program, which provides health care for our military warfighters, their families, and military retirees," said Janice M. Flores, Special Agent in Charge of the Defense Criminal Investigative Service (DCIS) Southwest Field Office. "These sentences demonstrate that DCIS and its law enforcement partners will continue to aggressively investigate health care fraud and hold individuals or companies accountable for their actions."
“These sentences are the result of the diligent work of several agencies. Our office will continue to work with our law enforcement partners to pursue and bring to justice those individuals who attempt to cheat the federal health care programs,” said Steven D. Hanson, Special Agent in Charge of Health and Human Services Office of Inspector General.
Justice Department Closes Case after Rhode Island Judiciary Reforms Provide Equal Access for Individuals with Limited English ProficiencyRead the Press Release
The Justice Department today announced the closure of its case concerning the provision of language assistance to individuals with limited English proficiency (LEP) in the state court system following the successful implementation of reforms by the Rhode Island Judiciary.
The Rhode Island Judiciary and the Justice Department successfully resolved an investigation of an administrative complaint filed under Title VI of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race, color or national origin in federally funded programs or activities. The complaint alleged that the Rhode Island Judiciary failed to provide interpreters and other language assistance services to LEP court users. In 2012, following extensive negotiations between the Rhode Island Judiciary and the department, Chief Justice Paul A. Suttell of the Rhode Island Supreme Court issued Executive Order No. 2012-05 on language services in the courts to mandate that qualified interpreters and other approved language assistance be provided at no charge for individuals with LEP in all court proceedings, services and programs.
In 2014, the department approved the Rhode Island Judiciary’s language access plan and the parties signed a voluntary resolution agreement that required the successful implementation of the executive order and plan, continued input from a stakeholder committee, compliance with Title VI and two years of monitoring and technical assistance. Today, after the Rhode Island Judiciary completed the conditions for termination of the agreement, the department officially closed the case.
The department and the Rhode Island Judiciary have worked cooperatively to improve how the courts communicate with LEP court users. In addition to adopting the comprehensive language access policy contained in the executive order, the judiciary’s accomplishments include:
• Designating staff qualified to provide services to court customers in languages other than English;
• Posting signage in six languages throughout each court house advising the public of the right to an interpreter at no cost;
• Requiring both parties to state court actions to report interpreter needs data to the court through new e-filing requirements;
• Translating forms and website content into commonly spoken languages in Rhode Island, such as Spanish, Portuguese, Khmer and Cape Verdean;
• Creating a multilingual notice of right to language assistance and adopting a court rule requiring service of the notice upon each defendant in a proceeding;
• And, creating a language services complaint policy and posting a complaint form in multiple languages on the court’s website, in court clerk’s offices and in the Office of Court Interpreters.
“Access to justice requires that all people, including those with limited English proficiency, can fully access and fairly participate in our courts,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We commend Chief Justice Suttell and staff in the Administrative Office of State Courts for their efforts to make the promise of equal access to justice a reality for all Rhode Island residents.”
The Rhode Island matter was handled by Attorney Paul M. Uyehara of the Civil Rights Division’s Federal Coordination and Compliance (FCS) Section.
The complaint was resolved as part of the initiative by FCS to ensure that state courts comply with the language access requirements of Title VI. To ensure that no LEP individual is denied justice due to a court’s failure to provide language services, the FCS courts team provides policy guidance and technical assistance to state court systems and undertakes enforcement actions across the country.
For further information about FCS and Title VI, please visit https://www.justice.gov/crt/fcs. For additional LEP-related resources, please visit http://www.lep.gov/index.htm.
Justice Department Closes Case After RI Judiciary Reforms Provide Equal Access for Individuals with Limited English ProficiencyRead the Press Release
WASHINGTON – The Justice Department today announced the closure of its case concerning the provision of language assistance to individuals with limited English proficiency (LEP) in the state court system following the successful implementation of reforms by the Rhode Island Judiciary.
The Rhode Island Judiciary and the Justice Department successfully resolved an investigation of an administrative complaint filed under Title VI of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race, color or national origin in federally funded programs or activities. The complaint alleged that the Rhode Island Judiciary failed to provide interpreters and other language assistance services to LEP court users. In 2012, following extensive negotiations between the Rhode Island Judiciary and the department, Chief Justice Paul A. Suttell of the Rhode Island Supreme Court issued Executive Order No. 2012-05 on language services in the courts to mandate that qualified interpreters and other approved language assistance be provided at no charge for individuals with LEP in all court proceedings, services and programs.
In 2014, the department approved the Rhode Island Judiciary’s language access plan and the parties signed a voluntary resolution agreement that required the successful implementation of the executive order and plan, continued input from a stakeholder committee, compliance with Title VI and two years of monitoring and technical assistance. Today, after the Rhode Island Judiciary completed the conditions for termination of the agreement, the department officially closed the case.
The department and the Rhode Island Judiciary have worked cooperatively to improve how the courts communicate with LEP court users. In addition to adopting the comprehensive language access policy contained in the executive order, the judiciary’s accomplishments include:
• Designating staff qualified to provide services to court customers in languages other
than English;
• Posting signage in six languages throughout each court house advising the public of the
right to an interpreter at no cost;
• Requiring both parties to state court actions to report interpreter needs data to the court
through new e-filing requirements;
• Translating forms and website content into commonly spoken languages in Rhode
Island, such as Spanish, Portuguese, Khmer and Cape Verdean;
• Creating a multilingual notice of right to language assistance and adopting a court
rule requiring service of the notice upon each defendant in a proceeding;
• And, creating a language services complaint policy and posting a complaint form in multiple languages on the court’s website, in court clerk’s offices and in the Office of Court Interpreters.
“Access to justice requires that all people, including those with limited English proficiency, can fully access and fairly participate in our courts,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We commend Chief Justice Suttell and staff in the Administrative Office of State Courts for their efforts to make the promise of equal access to justice a reality for all Rhode Island residents.”
The Rhode Island matter was handled by Attorney Paul M. Uyehara of the Civil Rights Division’s Federal Coordination and Compliance (FCS) Section.
The complaint was resolved as part of the initiative by FCS to ensure that state courts comply with the language access requirements of Title VI. To ensure that no LEP individual is denied justice due to a court’s failure to provide language services, the FCS courts team provides policy guidance and technical assistance to state court systems and undertakes enforcement actions across the country.
For further information about FCS and Title VI, please visit https://www.justice.gov/crt/fcs. For additional LEP-related resources, please visit http://www.lep.gov/index.htm.
# # #
Rhode Island courts LEP Closing Letter.pdf
Judge Sentences Johnstown Crack Cocaine Dealer Sentenced to 10 Years in PrisonRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been sentenced in federal court to 120 months in prison and three years’ supervised release on his conviction of distributing cocaine base, in the form commonly known as "crack," United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on James K. Parker, 43, of Johnstown, Pa.
According to information presented to the Court, on Oct. 18, 2012, Parker distributed less than 28 grams of cocaine base.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
Mr. Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation leading to the successful prosecution of Parker.
Jose Gonzalez-Martinez is Third Conviction in Operation Ice StormRead the Press Release
CHARLOTTESVILLE, VIRGINIA – A federal law enforcement initiative targeting those trafficking methamphetamine into the greater Charlottesville area has led to a third federal conviction after a local man pled guilty today in United States District Court in Charlottesville, United States Attorney John P. Fishwick Jr. announced.
Jose Alfredo Gonzalez-Martinez, 32, of Charlottesville, was arrested on a federal criminal complaint in late March and pled guilty today in District Court to distribution of methamphetamine. Two other men, Alfonso Lopez-Rios and John Mark Fisher were previously convicted and sentenced to federal prison time as part of the Operation Ice Storm initiative. Lopez-Rios was sentenced to 58 months in federal prison and Fisher was sentenced 132 months.
“Methamphetamine is often a drug that leads to other criminal behavior, acts such a domestic abuse, property crime, violence, things that destroy families and communities,” United States Attorney John P. Fishwick Jr. said today. “It is paramount that we continue to work with our partners in law enforcement in manners such as this to slow the spread of this deadly and addictive substance.”
According to evidence presented at previous hearings by Assistant United States Attorney Christopher Kavanaugh, Gonzalez-Martinez sold distribution-sized quantities in the Charlottesville area.
Gonzalez-Martinez, Lopez-Rios and Fisher were prosecuted as part of Operation Ice Storm, a multi-agency operation headed by the Drug Enforcement Administration and in partnership with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The operations’ goal is to target larger distributors and traffickers of methamphetamine into Charlottesville and surrounding areas.
The investigation of the case was conducted by the Drug Enforcement Administration and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Assistant United States Attorney Christopher Kavanaugh prosecuted the case for the United States.
Jose Gonzalez-Martinez is Third Conviction in Operation Ice StormRead the Press Release
CHARLOTTESVILLE, VIRGINIA – A federal law enforcement initiative targeting those trafficking methamphetamine into the greater Charlottesville area has led to a third federal conviction after a local man pled guilty today in United States District Court in Charlottesville, United States Attorney John P. Fishwick Jr. announced.
Jose Alfredo Gonzalez-Martinez, 32, of Charlottesville, was arrested on a federal criminal complaint in late March and pled guilty today in District Court to distribution of methamphetamine. Two other men, Alfonso Lopez-Rios and John Mark Fisher were previously convicted and sentenced to federal prison time as part of the Operation Ice Storm initiative. Lopez-Rios was sentenced to 58 months in federal prison and Fisher was sentenced 132 months.
“Methamphetamine is often a drug that leads to other criminal behavior, acts such a domestic abuse, property crime, violence, things that destroy families and communities,” United States Attorney John P. Fishwick Jr. said today. “It is paramount that we continue to work with our partners in law enforcement in manners such as this to slow the spread of this deadly and addictive substance.”
According to evidence presented at previous hearings by Assistant United States Attorney Christopher Kavanaugh, Gonzalez-Martinez sold distribution-sized quantities in the Charlottesville area.
Gonzalez-Martinez, Lopez-Rios and Fisher were prosecuted as part of Operation Ice Storm, a multi-agency operation headed by the Drug Enforcement Administration and in partnership with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The operations’ goal is to target larger distributors and traffickers of methamphetamine into Charlottesville and surrounding areas.
The investigation of the case was conducted by the Drug Enforcement Administration and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Assistant United States Attorney Christopher Kavanaugh prosecuted the case for the United States.
Jonesville Man Sentenced for Role in Tax Scheme that Submitted to the IRS Claims for over $400,000 in RefundsRead the Press Release
ABINGDON, VIRGINIA – A Jonesville man who worked with his brother, and several others, to submit claims for more than $400,000 of fraudulent tax returns, was sentenced today in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr. announced today.
Tommy Witt, 57, of Jonesville, Virginia, previously pled guilty to one count of making false, fictitious or fraudulent claims and one count of conspiring to defraud the United States Government in respect to claims. Today in District Court, Witt was sentenced to 30 months in federal prison and was ordered to pay $67,356 in restitution.
“Just a few days ago, millions of Americans filed their taxes and fulfilled their civic obligation. They must be able to do this knowing the process is safe and reliable,” United States Attorney John P. Fishwick Jr. said today. “When individuals participate in brazen tax schemes like this one, we will hold them accountable.”
“An integral part of IRS Criminal Investigation’s mission involves detecting, investigating, and stopping fraudulent refund schemes that ultimately victimize our nation’s honest taxpayers,” said Thomas Jankowski, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “We will remain committed to dismantling criminal conspiracies designed solely to defraud and bring the law breakers to the table of justice."
According to evidence presented at previous hearings by Special Assistant United States Attorney Kevin Jayne, Tommy Witt, and others, participated in a sophisticated conspiracy to defraud the federal government. The scheme began when David Witt, who was at the time an inmate in a Tennessee state prison, gathered personally identifiable information (including birth dates and social security numbers) belonging to other inmates. David Witt would then use that information to complete Internal Revenue Service Form 1040s. These Form 1040s contained false information, including false addresses outside of prison and false claims that the inmates were due a tax refund based on wages never earned by those inmates.
Subsequently, these Form 1040s were sent to persons outside of the prison, namely co-conspirators Tommy Witt, William Ziehler, Diane Powers and Richard Powers, who then forwarded them to the IRS for processing. Based on these Form 1040s, the IRS issued tax refund checks in the names of these inmates but sent the checks to the addresses associated with the conspirators. Many of these checks were cashed at banks throughout Southwest Virginia by the co-conspirators using fraudulent power-of-attorney forms.
In all, the conspiracy filed 431 fraudulent tax returns claiming approximately $400,000 in fraudulent returns. The co-conspirators, including Tommy Witt, cashed $67,356 in tax refund checks.
The investigation of the case was conducted by the Internal Revenue Service Criminal Investigation and United States Postal Inspection Service. Special Assistant United States Attorney Kevin Jayne prosecuted the case for the United States.
Joint Efforts Globally Distribute 2 Million Child Exploitation LeadsRead the Press Release
In early 2014, INTERPOL Washington, the U.S. National Central Bureau (USNCB), initiated a 30-day pilot program to test how INTERPOL member countries would assimilate data from the National Center for Missing and Exploited Children (NCMEC). The source of the shared information is NCMEC’s Cyber Tipline Reports, the organization’s analytical result for child abuse leads received. To start, the USNCB disseminated NCMEC information to 10 random member countries, excluding child exploitation imagery. National Central Bureaus (NCBs) in other countries could receive the images via requests to the USNCB, however.
By May 2014, the program went live and the service became available to approximately 140 INTERPOL member countries. By November 2015, 1 million leads had been distributed, with 38 countries requesting additional information for follow-up investigations. These leads are distributed electronically, without the need for dedicated personnel resources.
Now, on April 11th, 2016, less than 2 years later, over 2 million leads have been distributed across 130 different countries. The project’s focus is now to develop the ability of NCBs to retrieve the images without involvement from the USNCB.
Among the program’s most recent successes was the arrest of Colin Fisher, a British national operating in Gibraltar. Of the many leads the USNCB distributed, a Cyber Tipline report was utilized by NCB Gibraltar to inform the country’s own law enforcement to locate Fisher. He was charged with multiple counts of possession (and distribution) of indecent images of children. Combined with a voyeurism charge unrelated to the abuse, Fisher is now serving a 3-year, 8-month sentence.
Iowa Man Sentenced to 30 Years in Federal Prison for the Robbery of a Fargo InnRead the Press Release
FARGO - U. S. Attorney Christopher C. Myers announced that on April 21, 2016, Eric Lee Webb, 31, Cedar Rapids, Iowa, was sentenced before U. S. District Judge Ralph R. Erickson to serve 30 years in prison.
On January 29, 2016, the defendant appeared before Chief United States District Judge Ralph R. Erickson, in Fargo, for a change of plea hearing. Pursuant to a Rule ll(c)(l)(B) plea agreement, the defendant entered a guilty plea to a three-count information that was filed January 19, 2015. Pursuant to the information, count one charged him with Interference with Commerce by Threats and Violence-Hobbs Act Robbery, in violation of 18 U.S.C. § 1951(a); count two charged Use and Carry of a Firearm During and in Relation to a Crime of Violence, in violation of 18 U.S.C. § 924(c)(1); count three charged Possession of a Firearm and Ammunition by a Convicted Felon, in violation of 18 U.S.C. §§ 922(g)(1) and 924(a)(2).
On June 4, 2015, Webb entered the Howard Johnson Inn, 301 3rd Ave. N., Fargo, ND, wielded a firearm at an employee of the Inn demanding money. Webb was wearing blue surgical gloves and had a pistol in his hand which he pointed at two employees and demanded money. The employees originally thought the gun was a fake because it was so small. Webb responded by firing the gun into a wall near them. An employee provided Webb with $300 in cash.
The Fargo Police Department was immediately called and shortly thereafter confronted Webb. Law enforcement was dispatched and pursued Webb as he fled on foot. Fargo Police Officer Wahl was driving his patrol vehicle near the northeast corner of Sahr's Sudden Service (601 4th Street North) when he observed Webb in the parking lot. Webb fired at least one round at Officer Wahl's vehicle. Two spent casings were located in the parking lot just north of Sahr's Sudden Service; indicating Webb fired two rounds at Officer Wahl. A bullet hole was located in the front driver's side wheel well of Officer Wahl's patrol vehicle. The second round was not located and is still unaccounted for.
Fargo Police Officer Niemeyer arrived at Sahr's Sudden Service parking lot and observed Webb at the north end of the parking lot. Officer Niemeyer parked and exited his vehicle crouching down near the driver's side. Webb proceeded towards Officer Niemeyer and fired one round, which struck the passenger door of the patrol vehicle. The bullet passed through the door and into the duty bag that was positioned on the front passenger seat. Officer Niemeyer moved to the trunk area of his patrol vehicle and fired two rounds at Webb from his Glock .40 caliber duty weapon. One round struck Webb and the other round struck the northwest comer of the Sahr's Sudden Service building.
Webb fell to the ground and officers took Webb into custody. Located near Webb was a Raven, Model MP-25 pistol, with one round in the chamber, and one round in the magazine. A routine search of the defendant's person following his arrest revealed an open box of Sellier & Bellot brand ammunition, containing 26 live rounds, and a cellphone in his pants pocket, as well as, blue surgical gloves and a plastic grocery bag containing $355 in his underwear. Webb was transported via ambulance to Sanford Medical Center.
Officers located Webb's vehicle, a 1991 Honda Accord, in a parking lot at 202 6th Avenue North. In a search of the defendant's vehicle, law enforcement found and seized an open box of Sellier & Bellot brand ammunition containing 13 live rounds.
Webb is a convicted felon and he was aware that he was prohibited from possessing firearms. As outlined in the information, the defendant had been convicted of the following crimes punishable by imprisonment exceeding one year:
1) Burlgary-3rd Degree in Linn County District Comi, Iowa, on June 6, 2003.
2) Robbery-2nd Degree in Linn County District Court, Iowa, on June 2, 2006.
This case was investigated by the Fargo Police Department, the North Dakota Bureau of Criminal Investigation and The Bureau of alcohol, Tobacco and Firearms.
First Assistant U. S. Attorney Keith Reisenauer prosecuted the case.
Houston Tax Preparer Sentenced to Prison for Defrauding the IRSRead the Press Release
HOUSTON – The operator of a tax preparation in Houston has been ordered to federal prison following her conviction of knowingly preparing a materially false claim against the United States, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Rick Goss of IRS-Criminal Investigation (IRS-CI). Adriana Lizette Luna pleaded guilty Sept, 17, 2015, admitting she prepared a materially false 2011 U.S. Individual Income Tax return.
Today, U.S. District Judge Sim Lake, who accepted the guilty plea, handed Luna an 18-month sentence to be immediately followed by two years of supervised release. She was further ordered to pay a $116,000 in restitution.
“Cheating the government, including making bogus claims for tax refunds hurts everyone. The money that is fraudulently taken comes out of the pockets of all honest people that pay their taxes,” said Goss. “IRS special agents will continue to protect our taxpayers from those that compromise the integrity of our nation's tax system for personal greed.”
According to the written plea agreement filed in the record of the case, Luna operated an income tax preparation business known at times as Ruby’s Income Tax and Diaz Tax Service at other times. As part of the plea, Luna admitted preparing at least 23 false income tax returns for clients, including the 2011 return which the basis for her plea which claimed a false refund of approximately $11,724.
Luna admitted in the plea agreement that the intended tax loss on the 23 false tax returns she prepared was more than $235,000 and that she split roughly one-half of the false tax refunds with her clients. As part of the plea, she has agreed to pay restitution to the United States in the amount of $116,000.
Luna was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
IRS-CI investigated. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.
Henderson Co. Marijuana Grow Operator Sentenced to PrisonRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced a Henderson County marijuana grow operator to 54 months in prison, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Gary Maxwell Lee, 48, of Hendersonville, was also ordered to remain under court supervision for three years after his release from prison.
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; Janie Sutton, Acting Director of the North Carolina State Bureau of Investigation; and Sheriff Charles S. McDonald of the Henderson County Sheriff’s Office.
According to filed court documents and today’s sentencing hearing, in May 2015, law enforcement began their investigation into Lee, after receiving information that he was operating an extensive indoor marijuana growing operation. According to court records, Lee ran the marijuana grow house from two structures located next to the main home owned by Lee. Court records indicate that as part of the investigation law enforcement searched Lee’s house and the two structures located on the property, seizing 66 marijuana plants, 10.4 pounds of marijuana in various stages of drying and processing, and $4,245 in cash. Court records indicate that one of the structures was used as a “nursery” for the younger plants, whereas the larger, more mature plants were stored in the second structure. Lee had set up in the structures extensive lighting, air filtration, and hydration systems to assist in the growth of the plants. Law enforcement also seized numerous firearms, including shotguns and semi-automatic rifles, as well as twelve ammo cans containing thousands of rounds of ammunition.
According to court records, Lee took steps to avoid detection of his marijuana grow operation by law enforcement, including taking his trash to the dump or burning it, and using carbon filters to cut down on the odor emanating from the grow. Court records show that Lee has a previous conviction in Florida related to the manufacture of marijuana.
Lee pleaded guilty in December 2015 to manufacturing marijuana and being a felon in possession of firearms. He is currently in federal custody and will be transferred to custody of the Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
DEA, SBI, and the Henderson County Sheriff’s Office investigated the case. Assistant United States Attorney Thomas Kent of the U.S. Attorney’s Office in Asheville handled the prosecution.
Gun Felon Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Steven J. H. King, was sentenced in federal court this afternoon on gun charges. In December of 2015, King pled guilty to a one-count indictment charging him with being a prohibited person (convicted felon) in possession of a firearm.
United States District Court Judge William H. Steele imposed a sentence of 96 months imprisonment. He also ordered that King will commence a three-year term of supervised release when he is discharged from incarceration. As conditions of his supervision, King will be subject to testing and treatment for drug abuse. Judge Steele did not impose a fine but ordered that King pay $100 in special mandatory assessments.
The case was investigated by the Mobile Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives It was prosecuted in the United States Attorney’s Office by Assistant United States Attorneys Gina Vann and Gloria Bedwell.
Getaway Driver and Lookout in Taco John’s Robbery Sentenced to PrisonRead the Press Release
FARGO - U. S. Attorney Christopher C. Myers announced that on April 21, 2016, Rico Jamal Brown, 27, and Calvin Michael Frederick Brown, 25, both residing in the Fargo-Moorhead area, were sentenced before U. S. District Judge Ralph R. Erickson. Calvin was sentenced to serve three (3) years and six (6) months in prison and Rico was sentenced to serve five (5) years in prison for Interference with Commerce by Threats and Violence-Hobbs Act Robbery. Judge Erickson further sentenced each of them to serve three (3) years of supervised release and to pay a $100 special assessment to the Crime Victims’ Fund.
On September 3, 2015, the Taco John’s restaurant located at 2601 32nd Avenue South, Fargo, was robbed at gunpoint. During the robbery, two men entered the business and an employee was shot during the course of the robbery. Rico Brown pled to aiding and abetting this robbery by participating as a lookout, while Calvin Brown admitted to being a get-away driver for the robbery.
This case was investigated by the Fargo Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATFE).
U. S. Attorney Christopher C. Myers prosecuted the case.
Fugitive Remains in Federal Custody on Federal Charge Following Arrest by DSS and USMSRead the Press Release
FORT WORTH, Texas — A fugitive wanted for various offenses, including most recently, making a false statement on a passport application, remains in federal custody following a detention hearing held yesterday in federal court before U.S. Magistrate Judge Jeffrey L. Cureton, announced U.S. Attorney John Parker of the Northern District of Texas.
Avniel Awan Anthony, 40, a U.S. citizen and former resident of Arlington, Texas, was taken into custody on April 14, 2016, by the Diplomatic Security Service (DSS) and the U.S. Marshals Service (USMS). Anthony remains in federal custody on a federal criminal complaint filed last month in the Northern District of Texas that charges him with willfully and knowingly making a false statement in a passport application.
The criminal complaint alleges that in October 2013, Anthony willfully and knowingly made a false statement in an application for a passport, when he knowingly falsely stated his name was “Dominic Dewayne Wilson” on the passport application he submitted at the U.S. Post Office located on E. Bardin Road in Arlington.
According to information contained in the complaint’s affidavit, as well as information presented at yesterday’s hearing, Anthony was a DSS fugitive wanted for passport fraud, identity theft, evading the police, and being a felon in possession of a firearm. Anthony changed his identity and fled to Playa de Carmen, Mexico, where he remained a fugitive until DSS located him in March 2016.
DSS and the USMS coordinated with the Playa de Carmen Tourist Police and Mexican immigration officials to locate, arrest, and return Anthony to the U.S. to face charges. Yesterday, Judge Cureton found that Anthony was a flight risk and danger to the community and ordered that he remain in federal custody.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. The government has 30 days to present the matter to a grand jury for indictment.
The maximum statutory penalty, upon conviction, for willfully and knowingly making a false statement in a passport application is 10 years in federal prison and a $250,000 fine. A defendant is entitled to the presumption of innocence until proven guilty.
The DSS is the security and law enforcement arm of the U.S. Department of State with agents located in more than 160 countries worldwide. DSS and the USMS work together to locate and return U.S. fugitives from abroad.
Assistant U.S. Attorney J. Michael Worley is in charge of the prosecution.
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Former Vice President of Health Care Company Pleads Guilty to Fraud Scheme Worth over $7.5 MillionRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that MICHAEL DAVID PITTS, age 41, has pled guilty to a Bill of Information which charges him with wire fraud in connection with a scheme to defraud Amedisys, Incorporated, a home health and hospice care company with a substantial presence in Baton Rouge, Louisiana. PITTS is accused of stealing $7,641,528 from Amedisys, which annually furnishes home health services to approximately 380,000 patients in 37 states, the District of Columbia, and Puerto Rico.
According to the Bill of Information, PITTS was the Vice President of Tax for Amedisys for the period January 2005 through July 2014. In this role, PITTS was responsible for all corporate tax matters, including the preparation of state and federal tax returns and the payment of state income taxes in the various states where Amedisys operated its business. The Bill of Information alleges that PITTS had the authority and ability to purchase tax credits for the purpose of executing his duty of reducing and paying state income taxes in the various states where Amedisys did business.
According to the Bill of Information, PITTS engaged in a scheme to defraud Amedisys from October 2006 through May 2014 through an elaborate scheme involving shell entities and fictitious film tax credits. As part of the scheme, PITTS created a counterfeit company named “Stonehenge Entertainment” for the purpose of selling false and fictitious “Tax Credit Transfer Agreements” to Amedisys. PITTS allegedly used this company name because it closely resembled the name of a legitimate company with which Amedisys did business. PITTS also allegedly created an entity known as “Evergreen Incentives” for the purpose of selling false and fictitious “Tax Credit Transfer Agreements” to Amedisys.
In order to carry out his scheme, PITTS opened and maintained a bank account at Capital One Bank, N.A. for Stonehenge Entertainment and a separate account at Regions Bank for Evergreen Incentives. PITTS created false and fictitious “Tax Credit Transfer Agreements” and used his position as Vice President of Tax to present the false and fictitious Tax Credit Transfer Agreements to his corporate supervisors for approval, falsely representing them to be valid tax credits. Once approved, PITTS then purchased the false and fictitious Tax Credit Transfer Agreements on behalf of Amedisys.
According to the Bill of Information, in order to personally benefit from the sale of false and fictitious tax credits to Amedisys, PITTS caused electronic banking transfers to divert funds from an Amedisys account at JPMorgan Chase Bank to his accounts at Capital One Bank and Regions Bank for his personal enrichment. During the period October 3, 2006 through May 16, 2014, PITTS allegedly caused Amedisys to make 21 wire transfers totaling $7,641,528 to accounts which he controlled, and for his personal enrichment.
PITTS’ guilty plea to one count of wire fraud carries a maximum statutory penalty of 20 years imprisonment, a fine of $250,000, or twice the gross gain derived from the offense. He is also subject to forfeiture of the proceeds of the offense, that is, $7,641,528. A date for sentencing has not yet been set by Judge deGravelles.
This matter is being prosecuted by the United States Attorney’s Office for the Middle District of Louisiana. The investigation has been conducted by the Baton Rouge Resident Office of the Federal Bureau of Investigation, with substantial assistance provided by the victim, Amedisys, Inc. The matter is being prosecuted by Assistant United States Attorney René Salomon.
Former Oneida County Man Arrested for Tax FraudRead the Press Release
SYRACUSE, NEW YORK – Dale J. Sexton (47), formerly of Barneveld, New York, was arrested this morning at his residence in Bradenton, Florida, for filing false income tax returns and for impeding the Internal Revenue Service (IRS) in its administration of the internal revenue laws. Sexton was named last week as the sole defendant in an indictment that was unsealed today during his arraignment before a federal judge in Tampa, Florida, following his arrest. Sexton was released pending a trial, which will be scheduled later this year in Syracuse, New York.
The charges were announced by United States Attorney Richard S. Hartunian and Shantelle P. Kitchen, Internal Revenue Service Criminal Investigation (IRS-CI), Special Agent in Charge, New York Field Office.
The indictment alleges that, for tax years 2005 through 2008, Sexton concealed tens of thousands of dollars in income derived from various business interests and investments, and that Sexton filed false income tax returns and made false and misleading statements to the Internal Revenue Service when confronted about his taxable income and tax due and owing for these years. These false statements and false filings were allegedly made in Utica, New York, in the Northern District of New York. The charges filed against Sexton carry a maximum sentence of up to 3 years in prison and a fine of up to $100,000.
The charges in the indictment are merely accusations, and the defendant is presumed innocent until proven guilty.
This case is being investigated by IRS-CI (Syracuse), and it is being prosecuted by Assistant U.S. Attorney Michael F. Perry.
Former Member of Mount Olive Township Board of Education Admits Role in Scheme to Defraud School DistrictRead the Press Release
TRENTON, N.J. – A former member of the Mount Olive Township Board of Education (MOBOE) today admitted his role in a scheme to defraud the school district of $371,000, U.S. Attorney Paul J. Fishman announced.
Robert Mania, 47, of Flanders, New Jersey, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with wire fraud.
According to documents filed in this case and statements made in court:
From 2007 to 2009, while serving as a board member, Mania and others took part in a scheme to increase the amount of commissions to be paid on the school district’s account and then divert a portion of the commission payments to a company controlled by an individual, referred to in the information as the “Associate,” for distribution to Mania and his co-schemers. Mania admitted secretly inflating the commission rate and then diverting to himself approximately $371,000 in commission payments.
To conceal the rate increase and payments, Mania caused the district’s health insurance provider to send the annual disclosure statements generated by the health insurance carrier – which detailed the true commission rate and the payments to the associate’s company – to Mania’s own personal post office box, rather than to the school district. Approximately $606,000 in commissions was diverted to the associate’s company for distribution to Mania and his co-schemers, including approximately $371,000 that was received by Mania.
The wire fraud charge to which Mania pleaded guilty carries a maximum potential penalty of 20 years in prison and a fine of $250,000 or twice the amount of the gain or loss from the offense. Sentencing is scheduled for July 27, 2016.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge Timothy Gallagher, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Lee M. Cortes Jr. of the U.S. Attorney’s Office Special Prosecutions Division.
Defense counsel: James A. Plaisted Esq., Roseland, New Jersey
Former Immigration Officer Sentenced to Federal Prison for Concealing His Relationship with A Foreign National During A National Security Clearance InvestigationRead the Press Release
Jacksonville, FL - United States District Judge Timothy J. Corrigan has sentenced former immigration officer Paul Reynolds Friel, Jr. (48, Orange Park) to six months in federal prison, followed by two years of supervised release, for concealing a material fact during an interview with a government agent. In December 2011, during an interview, Friel failed to disclose the fact that he was living with Marisol Rodriguez Chavarria, a foreign national, and that he had contact with her during the preceding seven years. The interview was required as part of a background investigation for an expected job promotion within the U.S. Citizenship and Immigration Services, where Friel was employed as an immigration officer.
According to court documents, Rodriguez entered the United States from Nicaragua on December 10, 2010, on an immigrant visa issued by the U.S. State Department. She was a citizen of Nicaragua and entered the United States as the spouse of Luis Aguilar. In or around March 2011, Rodriguez moved into an apartment with Friel and divorced Aguilar. Thereafter, Friel and Rodriguez lived together in a romantic relationship, were married in March 2012, and later had a child together.
According to court records, Friel had known Rodriguez from previous trips to Nicaragua and paid for her airfare to fly to the United States from Nicaragua. Rodriguez previously pleaded guilty to possession of an immigrant visa issued by means of a false statement. Aguilar previously pleaded guilty to conspiracy to commit visa fraud.
The case was investigated by the U.S. Department of Homeland Security, Office of Inspector General, and the Jacksonville office of the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Dale R. Campion.
Former Capital Blue Cross Employee and Four Others Charged with Health Care Fraud ConspiracyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Harrisburg indicted five persons for health care fraud on April 20, 2016. The defendants named in the Indictment are Chireta E. Dantzler, age 34, of Harrisburg, Pennsylvania; Victoria Thomas, age 37, of Harrisburg, Pennsylvania; Henry Nolen Bell, age 61, of Baltimore, Maryland; Latanya Deidre Hill, age 45, of Baltimore, Maryland; and Deneen Maria Whiteside, age 56, of Parkville, Maryland.
According to United States Attorney Peter Smith, the grand jury alleged that, as part of a the fraud scheme, Thomas, Nolen, Bell, Hill, and Whiteside provided Dantzler, who was employed as a health claims examiner with Capital Blue Cross (CBC), with their personal identifying information. The defendants allegedly agreed that Dantzler would file bogus health insurance claims on their behalf, representing that each of the defendants received health care ambulance services when, in fact, they had not. As a result, the claimants received payment from CBC as well as CareFirst and Excellus Health Plan, two other providers, which, along with CBC, are licensed health care providers under the National Blue Cross, Blue Shield Health Insurance Program.
The scheme allegedly took place in 2012 and 2013 and resulted in approximately $292,000 in fraudulent claims being paid to the conspirators. According to the government, the intended loss was approximately $400,000. CBC staff discovered the scheme and cooperated in the fraud investigation, as did the other providers.
Dantzler, the alleged leader of the scheme, is also charged alone in a three separate counts of Health Care Fraud in connection with claims submitted in 2013. She was dismissed by CBC in 2014.
The Indictment further alleges that Thomas, Bell, Hill, and Whiteside gave Dantzler a share of the health insurance money they received.
The investigation was conducted by the Harrisburg Office of the Federal Bureau of Investigation. The case is assigned to Assistant United States Attorney Joseph J. Terz.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine of $250,000. 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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Florida Woman Charged in 18-Count Indictment for Conspiracy to Illegally Export Systems, Components and Documents to ChinaRead the Press Release
Defendant is Charged with Acting as an Illegal Agent of a Foreign Government in the United States Without Prior Notification to the Attorney General, Among Other Crimes
An 18-count superseding indictment was unsealed today charging Amin Yu, 53, of Orlando, Florida, with acting as an illegal agent of a foreign government in the United States without prior notification to the Attorney General, conspiring to defraud the United States and to commit offenses against the United States, committing unlawful export information activities, smuggling goods from the United States, conspiring to and committing international money laundering and making false statements to the U.S. Citizenship and Immigration Services.
The indictment was announced by Assistant Attorney General for National Security John P. Carlin and U.S. Attorney A. Lee Bentley III of the Middle District of Florida.
According to the superseding indictment, from at least 2002 until approximately February 2014, Yu obtained systems and components for marine submersible vehicles from companies in the United States. She did so at the direction of co-conspirators working for Harbin Engineering University (HEU), which is a state-owned entity in the People’s Republic of China. Yu proceeded to illegally export the systems and components to China for use by her co-conspirators in the development of marine submersible vehicles – unmanned underwater vehicles, remotely operated vehicles and autonomous underwater vehicles – for HEU and other state-controlled entities. It is alleged that Yu illegally exported items by failing to file electronic export information as required by U.S. law and also by filing false electronic export information. In particular, Yu completed and caused the completion of export-related documents in which she significantly undervalued the items that she had exported and also provided false end-user information for those items.
An indictment is merely an allegation and every defendant is presumed innocent unless, and until, proven guilty.
If convicted, Yu faces a maximum penalty of 20 years in federal prison on each of the money laundering counts. She faces a maximum sentence of 10 years in prison for acting as an illegal agent of a foreign government and faces a maximum sentence of five years in prison on all other counts. The indictment also notifies Yu that the United States intends to forfeit approximately $2,668,648.92, the alleged traceable proceeds of the offenses.
This case was investigated by the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Internal Revenue Service-Criminal Investigation and the Naval Criminal Investigative Service. The case is being prosecuted by Assistant U.S. Attorney Daniel C. Irick of the Middle District of Florida and Trial Attorneys David C. Recker and Thea D. R. Kendler of the National Security Division’s Counterintelligence and Export Control Section.
Yu Indictment
Florida Man Sentenced to 120 Days in Jail for Flying Gyrocopter to U.S. Capitol GroundsRead the Press Release
WASHINGTON – Douglas Hughes, 62, of Ruskin, Fla., was sentenced today to 120 days in jail on a federal charge stemming from the April 15, 2015, incident in which he flew a gyrocopter into Washington, D.C., and landed on the West Front lawn of the Capitol, announced U.S. Attorney Channing D. Phillips, Matthew R. Verderosa, Chief of the U.S. Capitol Police, and Tammy L. Whitcomb, Acting Inspector General for the United States Postal Service.
Hughes pled guilty on Nov. 20, 2015, in the U.S. District Court for the District of Columbia, to a felony charge of operating as an airman without an airman’s certificate. He was sentenced by the Honorable Colleen Kollar-Kotelly, who stated that his actions showed a “total lack of concern and disregard” for the safety of others. Following completion of his prison term, Hughes will be placed on one year of supervised release; during that time, he is to stay away from the U.S. Capitol and White House. Also, as part of his plea agreement, he agreed to the forfeiture of his gyrocopter, which was seized on the day of the incident.
“Douglas Hughes intentionally violated one of the most secure and restricted airspaces in the world, placing himself and countless others at risk,” said U.S. Attorney Phillips. “His actions led to a lockdown of the U.S. Capitol, major traffic delays, and a diversion of law enforcement resources. Today’s sentence holds him accountable for his reckless acts and hopefully will deter others from attempting to violate the airspace surrounding Washington, D.C.”
According to the government’s evidence, on the morning of April 15, 2015, Hughes drove to the Gettysburg Regional Airport in Pennsylvania and unpacked his gyrocopter for a flight to Washington, D.C. Hughes had never had an airman’s certificate (pilot’s license) and he did not license his aircraft with the Federal Aviation Administration. Hughes also did not file a flight plan with the FAA or any other governmental agency, and he did not seek to obtain any official authorization before or during his flight.
Hughes had modified his aircraft by replacing the original gas tank with a larger-ten-gallon tank to increase the gyrocopter’s range to reach Washington, D.C. He also was wearing a U.S. Postal Service jacket and his gyrocopter was affixed with a U.S. Postal Service seal. Although Hughes worked for the U.S. Postal Service, he was not acting in any official capacity at the time. Hughes placed two bins into the gyrocopter, carrying letters addressed to members of the U.S. Congress. He then flew the gyrocopter into Washington, D.C. from Gettysburg, Pa., passing through three no-fly zones. This federally restricted airspace includes, among other places, the National Mall, the White House, and the U.S. Capitol area.
Hughes flew over the National Mall and landed his gyrocopter in the early afternoon on the Front Lawn of the U.S. Capitol. He was quickly arrested, and the gyrocopter was seized as evidence. No weapons were found on Hughes or his aircraft.
As a result of the defendant’s actions, the entire U.S. Capitol complex was placed on lockdown, including the Capitol Visitor Center. In addition, streets around the U.S. Capitol were shut down, which resulted in traffic delays. Capitol Police deployed bomb squad technicians, explosives’ dogs, and robotic devices to examine the scene. It was only after the scene was cleared that the lockdown was lifted.
In announcing the sentence, U.S. Attorney Phillips, Chief Verderosa, and Acting Inspector General Whitcomb commended the work of those who investigated the case from the U.S. Capitol Police and the Office of the Inspector General for the U.S. Postal Service. They also expressed appreciation for the assistance provided by the United States Park Police and the Federal Aviation Administration. Finally, they praised the work of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Devron Elliott and Michelle Holland; Legal Assistants Bianca Evans and Donice Adams, and Assistant U.S. Attorneys Tejpal S. Chawla and Michael J. Friedman, who investigated and prosecuted the case.
El Paso Man Sentenced to Federal Prison on Child Pornography ChargesRead the Press Release
This morning, 33-year-old Joshua Alan Taylor of El Paso was sentenced to 210 months in federal prison followed by ten years of supervised release for accessing, receiving and possessing child pornography announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.
On January 27, 2016, Taylor pleaded guilty to one count each of accessing child pornography with the intent to view; receipt of child pornography; and, possession of child pornography.
By pleading guilty, Taylor admitted that in February and March 2015, he accessed and downloaded images and videos involving child pornography from the Internet.
On July 21, 2015, FBI agents arrested Taylor following the execution of a search warrant at his residence. A subsequent forensics examination of seized materials, including the defendant’s computer and related media, revealed the presence of approximately 2,500 images and 127 videos depicting child pornography.
This investigation was conducted by the FBI. Assistant United States Attorney Nikhil Bhagat prosecuted this case on behalf of the Government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who 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.
Eight Years in Prison for Youth Organization Leader Who Admitted Sexually Abusing Children, Possessing Images of Child Sexual AbuseRead the Press Release
NEWARK, N.J. – A Union County, New Jersey man who admitted sexually abusing children and possessing images of child sexual abuse was sentenced today to 96 months in prison, U.S. Attorney Paul J. Fishman announced.
Gregory J. Aker, 46, of Linden, New Jersey previously pleaded guilty before U.S. District Judge Susan G. Wigenton to an information charging him with possession of child pornography. Judge Wigenton imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
Aker was a leader with a boys’ youth organization and a religious education teacher with his church. On Feb. 22, 2014, Aker was arrested by the Linden Police Department for sexual assault and endangering the welfare of two minor children.
After his arrest, law enforcement obtained multiple computers and electronic storage media from Aker’s residence. Today, Aker admitted that the devices belonged to him and contained more than 600 images and dozens of videos of child sexual abuse that he knowingly collected. Aker also admitted sexually abusing more than one child who was known to him on more than one occasion.
In addition to the prison term, Judge Wigenton sentenced Aker to a lifetime of supervised release. Aker will be required to register as a sex offender.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, the New Jersey Regional Computer Forensics Laboratory, the Union County Prosecutor’s Office and the Linden Police Department with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Criminal Division in Newark.
Defense counsel: Jeffrey Hark Esq., Cherry Hill, New Jersey
Drug Supplier Sentenced to 7 Years in PrisonRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Luis Lugo-Santiago, a/k/a “Papi,” and “Andres Galvez,” age 41, of New York, New York today to seven years in prison followed by a year of supervised release for conspiring to distribute and possess with intent to distribute a kilogram or more of heroin, in connection with a drug distribution ring.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Gary Tuggle, Philadelphia Division of the DEA; Cecil County Sheriff Scott Adams; Chief William Ryan of the Elkton Police Department; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Cecil County State’s Attorney Ellis Rollins; and Colonel Nathaniel McQueen, Jr. of the Delaware State Police.
According to his plea agreement, since at least December 2012, Lugo-Santiago obtained bulk quantities of heroin from a supplier in Pennsylvania and others. Lugo-Santiago and his associates took this bulk heroin to an apartment they rented in New York. Lugo-Santiago employed approximately six people at the apartment to cut and re-package the heroin for further distribution in Maryland and Delaware.
Co-defendant Rachine Garnett generally purchased the heroin in quantities of 1.4 grams for $260. Beginning in January 2013, the Cecil County (Maryland) Drug Enforcement Task Force and DEA had a wiretap on phones used by Lugo-Santiago and Garnett, pursuant to a court order. On several occasions, Garnett and Lugo-Santiago were overheard disputing the amount of money owed. Over the course of the seven-month wiretap, investigators identified 59 money deliveries from Garnett totaling $1,668,510. At a rate of $260 per 1.4 grams of heroin, Garnett was intercepted obtaining approximately 8.98 kilograms of heroin during the course of the wiretap.
Investigators also intercepted numerous calls between Lugo-Santiago and: customers in Maryland and Delaware about providing new supplies of heroin, obtaining payment for prior supplies of heroin, and the quality of the heroin; his suppliers; individuals he employed to cut and package the heroin.
On August 15, 2013, investigators executed a search warrant at the New York apartment used to process the heroin, and seized more than a kilogram of heroin, some of which was in the process of being packaged by several individuals.
Over the course of the conspiracy, Lugo-Santiago distributed more than 10 kilograms of heroin to customers in Maryland and Delaware, which were then re-distributed to local customers.
Six defendants have pleaded guilty to their participation in the heroin conspiracy and have been sentenced to between two and 10 years in prison, including Rachine Huron Garnett, a/k/a “Sheen,” “Red,” “Ray,” and “Blockhead,” age 40, of Elkton, Maryland who was sentenced to 10 years in prison.
United States Attorney Rod J. Rosenstein praised the DEA, Cecil County Drug Task Force, and Delaware State Police for their work in the investigation. Mr. Rosenstein also recognized the U.S. Attorney’s Offices in the District of Delaware, Southern District of New York and the Eastern District of Pennsylvania, the Office of the Special Narcotics Prosecutor for the City of New York and the New York Police Department for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Kenneth S. Clark and James G. Warwick, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Detainee Charged with Attempting to EscapeRead the Press Release
PHILADELPHIA – Cory Foster, 28, a detainee at the Federal Detention Center (FDC) in Philadelphia, was charged today by indictment with attempted escape, announced United States Attorney Zane David Memeger. According to the indictment, on October 14, 2015, Foster, who had been indicted and was being detained at the FDC, attempted to escape.
If convicted, the defendant faces a maximum possible sentence of five years in prison, a possible fine, up to three years of supervised release, and a $100 special assessment.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Jose Arteaga.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Departamento de Justicia Cierra Caso Después de Que las Reformas del Poder Judicial de Rhode Island Brindaran Igualdad de Acceso a Personas con Conocimientos Limitados del InglésRead the Press Release
WASHINGTON – El Departamento de Justicia anunció hoy el cierre de su caso sobre el ofrecimiento de asistencia lingüística a personas con conocimientos limitados del inglés [Limited English Proficiency (LEP)] en el sistema de tribunales estatales después de la implementación exitosa de reformas por parte del Poder Judicial de Rhode Island.
El Poder Judicial de Rhode Island y el Departamento de Justicia resolvieron con éxito una investigación de una demanda administrativa entablada bajo el Título VI de la Ley de Derechos Civiles de 1964, que prohibe la discriminación con base en la raza, el color o el origen nacional en programas o actividades con financiamiento federal. La demanda alegaba que el Poder Judicial de Rhode Island no ofrecía intérpretes y otros servicios de asistencia lingüística a usuarios LEP de los tribunales. En 2012, después de amplias negociaciones entre el Poder Judicial de Rhode Island y el departamento, el Juez Principal Paul A. Suttell de la Corte Suprema de Rhode Island emitió la Orden Ejecutiva No. 2012-05 sobre servicios lingüísticos en los tribunales para exigir que se ofrecieran intérpretes calificados y otros tipos aprobados de asistencia lingüística sin cargo para personas con LEP en todos los procedimientos, servicios y programas judiciales.
En 2014, el departamento aprobó el plan de acceso idiomático del Poder Judicial de Rhode Island y las partes firmaron un acuerdo de resolución voluntaria que exigía la implementación exitosa de la orden ejecutiva y el plan, participación constante de un comité de partes interesadas, cumplimiento con el Título VI y dos años de monitoreo y asistencia técnica. Hoy, después de que el Poder Judicial de Rhode Island completara las condiciones para la rescisión del acuerdo, el departamento cerró oficialmente el caso.
El departamento y el Poder Judicial de Rhode Island han colaborado conjuntamente para mejorar la manera en que los tribunales se comunican con los usuarios LEP de los tribunales. Además de adoptar la política integral de acceso lingüístico incluída en la orden ejecutiva, los logros del poder judicial incluyen:
• Designar a personal calificado para ofrecer servicios a clientes de los tribunales en idiomas que no sean el inglés;
• Colocar carteles en seis idiomas en cada tribunal informándole al público sobre el derecho de contar con un intérprete de manera gratuita;
• Exigir que ambas partes en acciones judiciales estatales informen al tribunal sobre la necesidad de intérprete a través del nuevo requerimiento de presentación electrónica de los escritos;
• Traducción de formularios y contenido de los sitios webs en idiomas comúnmente hablados en Rhode Island, como español, portugués, jemer y caboverdiano;
• Creación de un aviso multilingüe sobre el derecho a asistencia lingüística y adopción de una norma judicial que requiera la entrega del aviso a cada demandado en un procedimiento;
• Y creación de una guía a seguir para la presentación de quejas relacionadas a los servicios lingüísticos y publicación de un formulario de queja en múltiples idiomas en el sitio web, en las secretarías del juzgado y en la Oficina de Intérpretes Judiciales.
“El acceso a la justicia requiere que todas las personas, entre ellas las que tienen conocimientos limitados del inglés, puedan acceder plenamente y participar de manera justa en nuestros tribunales”, dijo la Secretaria de Justicia Auxiliar Adjunta Principal Vanita Gupta, jefa de la División de Derechos Civiles del Departamento de Justicia. “Felicitamos al Juez Principal Suttell y al personal de la Oficina Administrativa de Tribunales Estatales por su labor para hacer realidad la promesa de igualdad de acceso para todos los residentes de Rhode Island”.
El asunto de Rhode Island fue tratado por el Fiscal Paul M. Uyehara de la Sección de Coordinación y Cumplimiento Federal [Federal Coordination and Compliance Section (FCS)] de la División de Derechos Civiles.
La demanda fue resuelta como parte de la iniciativa de la FCS para asegurar que los tribunales estatales cumplan con las exigencias de acceso idiomático del Título VI. Para asegurar que no se le niegue justicia a ninguna persona LEP por la falta de servicios lingüísticos del tribunal, el equipo judicial de la FCS ofrece orientación sobre políticas y asistencia técnica a sistemas judiciales estatales y realiza acciones de coacción en todo el país.
Para obtener información adicional sobre la FCS y el Título VI, por favor visite https://www.justice.gov/crt/fcs. Para acceder a recursos adicionales relacionados con LEP, visite http://www.lep.gov/index.htm.
Daycare Operator Pleads Guilty to Defrauding Federally-Funded Program of $250,000Read the Press Release
A daycare operator from Covington, Washington pleaded guilty today in U.S. District Court in Seattle to theft of public funds for falsely claiming reimbursement from a program that provides childcare to low income families, announced U.S. Attorney Annette L. Hayes. HINDIA YUSUF, 52, admitted that she falsely claimed $250,000 in reimbursement from the Working Connections Child Care program, a federally-funded program intended to promote employment in low-income families. YUSUF is scheduled to be sentenced by U.S. District Judge John C. Coughenour on July 29, 2016.
According to facts stated in the plea agreement, beginning in 2005 YUSUF operated Harar Home Daycare. Under a program administered by the Washington State Department of Social and Health Services, YUSUF was paid for providing childcare to low-income families. Between 2012 and 2014, YUSUF claimed to be caring for 24 children divided into two twelve hour shifts. Beginning in January 2012, and ending on September 16, 2014, defendant submitted reimbursement reports to DSHS on which she intentionally overstated the number of hours of child care she and Harar Home Daycare had provided. YUSUF billed DSHS for care at times when she was caring for no children. YUSUF forged the signatures of parents on various logs so that she could seek reimbursement for childcare that was never provided. The amount of loss is estimated to be $250,000.
Theft of public funds is punishable by up to ten years in prison and a $250,000 fine.
The case was investigated by the FBI, the U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG) and U.S. Health and Human Services Office of Inspector General (HHS-OIG), and the Washington Department of Social and Health Services (DSHS). .
The case is being prosecuted by Assistant United States Attorney Seth Wilkinson.
Press contact for the U.S. Attorney’s Office is Public Affairs Officer Emily Langlie at (206) 553-4110 or [email protected].
Convicted Felon Indicted on Firearm and Drug Trafficking ChargesRead the Press Release
PROVIDENCE, R.I. – A federal grand jury in Providence today returned a two-count indictment charging Christopher Rene, 25, of Providence, with being a felon in possession of a firearm and possession with the intent to distribute crack cocaine. Rene was arrested by Providence Police on February 4, 2016. It is the third time Rene has been arrested on a firearm charge.
Rene’s indictment is announced by United States Attorney Peter F. Neronha, Providence Police Chief Colonel Hugh T. Clements, Jr., and Harold B. Shaw, Special Agent in Charge of the FBI in New England.
According to court records, at the time of his most recent arrest, Rene was on federal supervised release and state probation. In August 2009, Rene was convicted in state court on drug trafficking and firearm charges. He was sentenced to 7 years in prison, 6 months to serve and 78 months of probation. In a separate matter, in March 2011, Rene was convicted in federal court of being a felon in possession of a firearm. He was sentenced to 46 months in prison, to be followed by 3 years of supervised release.
On February 10, 2015, while on federal supervised release and state probation, Rene was among 35 individuals arrested during a series of investigations into violent crime in Providence as part of the Rhode Island Urban Violent Crime Initiative. Based on information gathered by law enforcement, Rene was arrested for violating the terms of his federal supervised release. He was sentenced to six months in federal prison and an additional 30 months of federal supervised release.
According to state court documents, in February 2016, during an investigation into Rene’s alleged drug trafficking activities, Providence Police seized 41 bags of crack cocaine and .40 caliber handgun from vehicles allegedly accessed by Rene while he was under police surveillance. It is alleged that Rene was detained shortly after he exited one vehicle and allegedly placed the handgun in the second vehicle. The crack cocaine was discovered in the first vehicle allegedly accessed by Rene.
Rene has been held in state custody since his arrest.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted in federal court by Assistant U.S. Attorney Milind M. Shah.
The matter was investigated by the Providence Police Department with the assistance of the FBI’s Safe Streets Task Force.
United States Attorney Peter F. Neronha acknowledges and thanks the Rhode Island Department of Attorney General for their assistance in this matter.
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Company Executive and Consultant Sentenced in Manhattan Federal Court for Scheme to Embezzle Millions from International Insurance CompanyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that JAMES J. SHEA and EUGENE FALLON were sentenced in Manhattan federal court to 18 and three months in prison, respectively, for their participation in a scheme to embezzle approximately $2.6 million from a large international insurance company. In perpetrating the scheme, SHEA, an executive at the company, forged the signature of the company’s Chief Financial Officer to authorize numerous payments to consulting companies that FALLON controlled for purported work that was never performed. FALLON then returned more than two-thirds of the proceeds of the fraud to SHEA, who used the money to purchase a multimillion-dollar house and luxury automobiles, and FALLON kept the remainder. On November 13, 2015, SHEA pled guilty to one count of wire fraud before U.S. District Judge Paul A. Engelmayer. FALLON pled guilty to one count of wire fraud before Judge Engelmayer on November 18, 2015. Judge Engelmayer sentenced SHEA on March 31, 2016, and sentenced FALLON earlier today.
U.S. Attorney Preet Bharara said: “Not satisfied with the income they earned as senior executives in their respective companies, James Shea and Eugene Fallon broke the law for even more money. They embezzled $2.6 million from Shea’s company by claiming the money was for consulting work by Fallon, when in fact it was shared between the two to fund the purchase of lavish homes and luxury cars.”
According to the Complaint, Indictment, other documents filed in the case, and statements made in open court:
From January 2012 through December 2013, SHEA and FALLON engaged in a scheme to embezzle approximately $2.6 million from SHEA’s employer, the North American subsidiary of an international insurance company (“Company-1”). SHEA, who rose to the title of Executive Vice President at Company-1, was responsible for the integration of the information technology systems of subsidiaries of Company-1. In that capacity, SHEA oversaw the use of third-party consultants, one of whom was FALLON, who worked in that capacity at Company-1 from 2010 through 2013. According to Company-1’s policies and practices, the CFO of Company-1 could personally authorize and approve any third-party vendor contracts up to $1.5 million.
In 2012, SHEA forged the signature of Company-1’s CFO on contracts between Company-1 and two consulting companies controlled by FALLON (the “Consulting Companies”). According to the contracts that outlined the sham engagement between Company-1 and the Consulting Companies, the Consulting Companies were primarily tasked with providing Company-1 with assistance in integrating the technology systems of Company-1. For a total of 17 months of work, the agreements required Company-1 to pay one of the Consulting Companies approximately $1.5 million and the other approximately $1.1 million. In fact, the Consulting Companies did no work for Company-1.
Beginning in August 2012, and continuing through February 2013, FALLON submitted fraudulent invoices on behalf of the Consulting Companies to Company-1 for consulting work that was not performed. On behalf of Company-1, SHEA then authorized approximately 16 payments for the invoices in the amount of approximately $2.6 million to bank accounts that were controlled by FALLON. Of the approximately $2.6 million that SHEA and FALLON embezzled, more than $1.8 million was routed back to SHEA, while FALLON kept the remainder. SHEA used the majority of his fraudulent proceeds to purchase a multimillion-dollar house and two luxury cars.
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SHEA, 49, of Paramus, New Jersey, was sentenced to 18 months in prison, to be followed by three years of supervised release, and a $100 special assessment. FALLON, 52, of Nanuet, New York, was sentenced to three months in prison, to be followed by three years of supervised release, and a $100 special assessment.
Mr. Bharara praised the work of the Federal Bureau of Investigation.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Daniel S. Goldman and Michael Ferrara are in charge of the prosecution, and Edward Diskant is in charge of the forfeiture aspects of the case.
Chevron Oil Trader Indicted in International Commercial Bribery SchemeRead the Press Release
HOUSTON – Two men have been charged in an international commercial bribery scheme which victimized Chevron Corporation, announced U.S. Attorney Kenneth Magidson along with Inspector In Charge Adrian Gonzalez of the U.S. Postal Inspection Service (USPIS) and Rick Goss of Internal Revenue Service - Criminal Investigation (IRS-CI).
Shawn Thomas Potts, 41, of Pennsylvania, surrendered to federal authorities in Houston this morning and is expected to make his initial appearance before U.S. Magistrate Judge Nancy Johnson at 2:00 p.m. today. Robert Stanley Corbitt, 71, of Houston, was arrested yesterday, made his initial appearance and was permitted release upon posting bond.
The indictment alleges the two men engaged in a wire fraud and money laundering conspiracy running from 2004 to 2012. According to the indictment, Potts, a Chevron oil trader based in New Jersey and later in London, England, steered Chevron oil trades to counterparties who were willing to pay him kickbacks. Corbitt, who worked as a consultant to counterparties on Chevron transactions, obtained kickbacks on transactions involving Potts. He also allegedly funneled kickback payments to Potts through a Cayman Islands bank account that he held. The Indictment alleges the kickback scheme deprived Chevron of the honest services of its employee, Potts. The kickback scheme allegedly involved Chevron oil purchases from Cameroon in West Africa, Belarus and Russia, among other locales.
“USPIS has sought for hundreds of years those who use the Postal Service for illegal gain,” said Gonzalez. “The ability to use the mail in a safe and secure manner is at the core of the Postal Inspection Service’s mission. When criminals use the mail to defraud, postal inspectors will not hesitate to ensure they are brought to justice.”
The Indictment details elaborate steps taken to conceal the scheme from Chevron and others and to launder the proceeds of the scheme. Potts, Corbitt and other conspirators allegedly used foreign entities and nominees to hold foreign bank accounts in Switzerland and the Cayman Islands to receive, hold and transfer kickback funds and submitted false invoices to disguise kickback payments as legitimate fees for service. The indictment also alleges they filed false tax returns that omitted kickback income and that falsely claimed no interest in foreign bank accounts. Potts and Corbitt allegedly received kickback funds in cash or caused money to be wired directly from nominee accounts in Switzerland to other individuals and entities on their behalf. According to the indictment, kickback funds were wired directly from Swiss bank accounts to car dealers in the United States for cars Potts and Corbitt were purchasing.
“Hiding income and assets offshore whether obtained legally or illegally is against the law,” said Goss. “IRS-CI has stepped up its efforts in the international financial arena and has become a trusted leader in pursuit of those who use hidden offshore accounts and companies to circumvent the law.”
Both men are charged with wire fraud conspiracy and conspiracy to commit money laundering. If convicted, they each face up to 20 years in federal prison. Corbitt is also charged with filing a false tax return and faces another three years upon conviction.
The charges are the result of an investigation by USPIS and IRS-CI. Assistant U.S. Attorney Robert S. Johnson is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Charleston felon sentenced to Federal prison for gun crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to three years and ten months in federal prison for being a felon in possession of a firearm, announced Acting United States Attorney Carol Casto. Derrick Lamb, 24, previously pleaded guilty in January 2016 to the federal gun crime.
Lamb admitted that on April 13, 2015, law enforcement arrested him and found him in possession of a Taurus .38 caliber revolver. Lamb is prohibited from possessing any firearm because of a 2012 felony conviction in Kanawha County Circuit Court for possession of a controlled substance with intent to deliver.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Charleston Police Department. Assistant United States Attorney John J. Frail is in charge of the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Charleston doctor pleads guilty to Federal crime involving dispensing fentanylRead the Press Release
CHARLESTON, W.Va. – A Charleston doctor pleaded guilty today to a federal crime involving the illegal dispensing of fentanyl. Dr. Iraj Derakhshan, 72, entered his guilty plea to violating reporting requirements mandated by federal drug laws for dispensing controlled substances.
Dr. Derakhshan admitted that on June 18, 2015, he obtained fentanyl from one of his patients. The patient acquired the fentanyl from a prescription written by Dr. Derakhshan, and was returning the unused portion of the prescription to Dr. Derakhshan because the patient had an adverse reaction to the drug. On the same day, Dr. Derakhshan admitted to illegally dispensing the unused fentanyl to a different patient. He also admitted that he was never authorized to dispense controlled substances. Dr. Derakhshan further admitted to knowingly and intentionally failing to report and maintain a record of this dispensing of fentanyl as required by federal law. The dispensing was also unlawful because it was not done by authorized prescription and was not presented to a pharmacy to be filled. One of the reasons for these requirements is so that prescription drugs can be properly traced and recorded by the West Virginia Board of Pharmacy.
Dr. Derakhshan faces up to four years in federal prison and a fine of $250,000 when he is sentenced on July 8, 2016. As part of the plea agreement, Dr. Derakhshan will permanently surrender his DEA Certificate of Registration and not oppose revocation of his registration to dispense controlled substances. Dr. Derakhshan agreed that one of the grounds for the revocation is being convicted of a felony relating to a controlled substance.
The investigation of Dr. Derakhshan was conducted by the DEA. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
This case was brought 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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Branson Man Pleads Guilty to Tax EvasionRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Branson, Mo., man pleaded guilty in federal court today to tax evasion.
Barry Knudsen, 54, of Branson, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with one count of tax evasion and one count of failing to file a tax return.
Knudsen admitted that, despite earning significant income through several businesses in which he is a shareholder, he repeatedly failed to file and pay federal and state income taxes. Knudsen took affirmative acts to evade paying income taxes for six years, for the tax periods from 2009 through 2014. His gross annual income during those years ranged from $229,271 to $286,642 and totaled more than $1.5 million.
Knudsen’s continued failure to file income tax returns, in conjunction with his failure to have adequate federal income tax withholding, resulted in a total federal tax loss of $217,958 and a total state tax loss of $46,439. The total tax loss for both the federal and state governments amounts to $264,397.
Knudsen was in regular contact with IRS employees regarding his tax liabilities, and received numerous notices regarding his unfiled returns. Despite being contacted by law enforcement in October 2014, Knudsen has not filed federal income tax returns for the years of 2009 through 2013. Furthermore, Knudsen has not voluntarily paid all of federal income tax for the years 2009 through 2014. As of March 8, 2016, through Missouri’s amnesty tax program, Knudsen has satisfied the state’s demand for payment of state income taxes.
Under federal statutes, Knudsen is subject to a sentence of up to six years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by IRS-Criminal Investigation.
Boston Man Pleads Guilty to Armed Bank RobberyRead the Press Release
BOSTON – A Boston man pleaded guilty yesterday in U.S. District Court in Boston in connection with robbing a Citizens Bank in Brighton.
Kenneth E. Denny, 60, pleaded guilty to one count of armed bank robbery. U.S. District Court Judge Denise J. Casper scheduled sentencing for Aug. 3, 2016.
On July 24, 2015, a man, dressed in a tan hat, gray wig, blue sports coat, shirt and tie, entered a Citizens Bank on Washington Street in Brighton. Once inside the bank, the man handed the teller a demand note, removed an item which appeared to be a bomb from a newspaper he was carrying, placed it on the teller’s counter, and demanded money. The man was given $4,040, but was confronted by the bank’s manager when he attempted to leave. The man dropped the bag containing the money, removed a white cell phone from his pocket and stated “I am going to blow it up.” The individual then exited the bank and was seen heading down Washington Street.
The Boston Police Bomb Squad arrived and determined that the bomb was a hoax. Inside the bank, law enforcement officers found that the robber had left his wallet on the teller’s counter with a picture ID inside in the name of Kenneth E. Denny. Law enforcement officers recalled that they had observed a man who resembled Denny on Washington Street as they were approaching the bank. A few minutes later, officers located the man and confirmed that his name was Kenneth Denny. Denny was asked to produce identification and stated he must have lost his wallet.
Denny was detained and returned to the bank for a live line-up. Bank employees identified Denny as the man who had robbed them earlier in the day.
The charging statute provides for a sentence of no greater than 25 years in prison, five years of supervised release, and a fine of up to $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Evans, made the announcement. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
Barbour County man pleads guilty to drug, firearms offensesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Dylan Lee Hamrick, 23, of Belington, West Virginia, pled guilty in federal court in Clarksburg today to drug and firearms offenses, United States Attorney William J. Ihlenfeld, II, announced.
Hamrick was discovered in possession of methamphetamine and a shotgun with a barrel length of less than 18 inches in November 2015 in Randolph County, West Virginia.
Hamrick pled guilty today to one count of “Possession with Intent to Distribute Methamphetamine,” and one count of “Possession of a Firearm with a Shortened Barrel.” He faces up to 20 years in prison and a fine of up to $1,000,000 for the methamphetamine charge and up to 10 years in prison and a fine of up to $250,000 for the firearm charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Warner prosecuted the case on behalf of the government. The Mountain Region Drug and Violent Crime Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Baltimore Man Admits to Robbing Three Stores in Just over an HourRead the Press Release
Baltimore, Maryland – Carlos Rodgers, age 23, of Baltimore, pleaded guilty late yesterday to robbing three stores in Baltimore.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Baltimore Police Commissioner Kevin Davis; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, on March 14, 2015 at approximately 11:12 p.m., Rodgers walked into a convenience store on 41st Street in Baltimore and pointed what appeared to be a handgun at the cashier. After demanding and receiving money from two cash registers, he fled.
A few minutes later Rodgers entered another convenience store on Falls Road and placed the apparent handgun on the counter, demanding money from the cashier. Rodgers took money from two cash registers and cigarettes before fleeing the store.
At approximately 12:38 a.m. on March 15, Rodgers walked into a restaurant on 36th Street and pointed what appeared to be a handgun at the cashier, demanding money. As Rodgers began to walk around the front counter, another employee confronted him with a large kitchen knife, causing him to flee.
Based on physical descriptions of the suspect provided by the victims, Rodgers was quickly apprehended.
Rodgers faces a maximum sentence of 20 years in prison on each of the three counts of robbery. U.S. District Judge James K. Bredar has scheduled sentencing for August 18, 2016 at 10:00 a.m.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Piper F. McKeithen, a cross-designated Baltimore Assistant State’s Attorney assigned to Exile cases, who prosecuted the case.
Albuquerque Man Sentenced to Probation for Submitting Fraudulent Claims to Veterans Affairs Medical CenterRead the Press Release
ALBUQUERQUE – Tomas Jaramillo, 55, of Albuquerque, N.M., was sentenced today in federal court for his conviction for submitting false and fraudulent claims to the Veterans Affairs Medical Center (VAMC) in Albuquerque. Jaramillo was sentenced to five years of probation and ordered to pay $11,439.90 in restitution to the VAMC.
Jaramillo was charged by information on Aug. 18, 2015, with submitting fraudulent vouchers to collect payments for roundtrip travel to attend medical appointment. He was subsequently charged by indictment on Sept. 22, 2015, with submitting 173 fraudulent claims to the VAMC for travel beneficiary payments from June 2009 through July 2010.
On Dec. 11, 2015, Jaramillo pled guilty to a felony information charging him with making fraudulent claims. In entering the guilty plea, Jaramillo admitted that from June 2009 through July 2010, he travelled to the VAMC in Bernalillo County, N.M., to obtain medical treatment and falsely claimed that he traveled from Socorro, N.M., to do so. Jaramillo admitted that he submitted fraudulent vouchers to VAMC to receive payment for roundtrip travel which he did not actually make to attend his medical appointments. Jaramillo received $11,439.90 in travel reimbursements to which he was not entitled.
This case was investigated by the Department of Veterans Affairs, Office of Inspector General, Criminal Investigation Division and was prosecuted by Assistant U.S. Attorney Samuel A. Hurtado.
10 Defendants Charged in International Money Laundering and Identity Theft Scheme Involving $14 Million in Fraudulent Tax RefundsRead the Press Release
SANTA ANA, California – Federal authorities late yesterday arrested five out of 10 defendants who have been charged in identity thefts cases related to an international money laundering scheme that laundered millions of dollars in fraudulently obtained federal income tax refunds.
The criminal complaints filed Tuesday in United States District Court and unsealed yesterday charge the 10 defendants with participating in a money laundering ring that used hundreds of bank accounts opened with stolen identities to launder millions of dollars in fraudulently obtained tax refunds. According to the affidavits supporting the complaints, the Internal Revenue Service has identified approximately 7,000 fraudulent tax returns related to this scheme that cumulatively sought about $38 million in refunds. The IRS issued about $14 million in refunds, and the money was deposited into and laundered through bank accounts used in this scheme. The fraudulent tax returns were filed and the bank accounts were opened with personal identifying information that had been stolen from thousands of victims.
“Stolen identity refund fraud schemes are a growing problem that victimize both the United States government and individuals who have tax returns fraudulently filed in their names,” said United States Attorney Eileen M. Decker. “We are devoting more resources to combat this problem and will continue to pursue organizations that engage in this type of fraud. The cases unsealed today demonstrate that we will dismantle these criminal operations and stop schemes that target innocent Americans and steal taxpayers' money.”
The 10 defendants, each of whom was named in a separate criminal complaint, allegedly used fraudulent foreign passports to commit identity theft by opening numerous bank accounts and mailbox addresses with the stolen identities. According to the criminal complaints, they used fraudulent passports from the Republic of Armenia, Georgia and the Czech Republic that had the names of identity theft victims but the defendants’ photographs.
“Investigating refund fraud and identity theft is a top priority for IRS Criminal Investigation,” stated Anthony J. Orlando, acting Special Agent in Charge for IRS Criminal Investigation. “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers. Today's arrests should serve as a strong warning to those who are considering similar conduct. Law enforcement is serious about investigating these crimes and holding accountable those who defraud the government.”
“The complexity and audacity of this scheme were truly astounding and illustrate the lengths to which fraudsters will go to game the system for financial gain,” said Mark Selby, acting Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Los Angeles. “Identity theft and tax fraud result in billions of dollars in losses every year in this country and cause incalculable heartache and financial harm to law-abiding consumers. We owe it to them to pursue these cases aggressively, making it clear that those who brazenly enrich themselves on the back of the American taxpayer, as these defendants allegedly did, will be held accountable for their crimes.”
The mailboxes and bank accounts were opened throughout southern California, including the cities of Newport Beach, Cypress, and La Habra in Orange County; and the cities of Alhambra, Azusa, Covina, Encino, Los Angeles, Montebello, North Hollywood, Rowland Heights, Temple City and Glendale in Los Angeles County.
The five defendants taken into custody late yesterday afternoon are:
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Eduard Astvatsatryan, 34, of Glendale, who allegedly opened at least 17 bank accounts and 14 mailbox addresses in different identities using fraudulent Armenian passports;
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Hripsime Avagyan, 24, of Burbank, who allegedly opened at least six bank accounts and seven mailbox addresses in different identities using fraudulent Armenian passports;
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Armen Mkrtchyan, 46, of Glendale, who allegedly opened at least two bank accounts and two mailbox addresses in different identities using fraudulent Armenian passports;
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Sargis “Sergio” Tabadzhyan, 54, of West Hollywood, who allegedly opened at least 13 bank accounts and seven mailbox addresses in different identities using fraudulent Armenian passports; and
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Artash Stepanyan, 31, of Glendale, who allegedly opened at least 14 bank accounts and six mailbox addresses in different identities using fraudulent Armenian and Georgian passports;
The defendants who were arrested were held overnight and are scheduled to make their initial court appearances this afternoon in the United States Courthouse in Santa Ana.
Authorities continue to search for the other five defendants. They are:
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Mkhitar Mkrtchyan, 43, of Sylmar, who allegedly opened at least two bank accounts and two mailbox addresses in different identities using fraudulent Armenian passports;
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Karen Pogosian, 45, of Sun Valley, who allegedly opened at least two bank accounts and two mailbox addresses in different identities using fraudulent Armenian passports;
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Konstantin Galstyan, 23, of Sylmar, who allegedly opened at least four bank accounts and two mailbox addresses in different identities using fraudulent Armenian passports;
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Jane Doe, who allegedly opened at least eight bank accounts and six mailbox addresses in different identities using fraudulent Armenian passports; and
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John Doe, who allegedly opened at least four bank accounts and two mailbox addresses in different identities using fraudulent Georgian passports.
Federal authorities are seeking the public’s help is apprehending these defendants. Anyone with information about these defendants is encouraged to contact IRS Criminal Investigation at (213) 200-3083 or HSI at (866) DHS-2-ICE.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The identity theft charges alleged in the 10 complaints each carry a statutory maximum sentence of 15 years in federal prison and a fine of up to $250,000.
Yesterday’s arrests are part of an ongoing investigation being conducted by IRS Criminal Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Federal Bureau of Investigation. During yesterday’s operation, the federal agencies receive substantial assistance from the Los Angeles Police Department, the Los Angeles International Airport Police Department, the Glendale Police Department and the Santa Monica Police Department.
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20 April 2016
Volunteer Church Bus Driver Charged with Aggravated Sexual Abuse of MinorsRead the Press Release
CINCINNATI – A federal grand jury has charged Jory Leedy, 46, of Franklin, Ohio with two counts of aggravated sexual abuse involving a minor in an indictment returned in Cincinnati.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, Hamilton County Sheriff Jim Neil and other members of the Regional Electronics and Computer Investigations (RECI) Task Force announced the indictment returned today.
The indictment alleges that Leedy sexually abused two minor boys as young as seven and eight years old. He allegedly met the victims through his volunteer work as a bus driver for Target Ministries of Dayton, who provided transportation and assistance in poorer neighborhoods in the Dayton area.
Eventually, Leedy allegedly ingratiated himself into the family and began visiting the victims’ home, taking them to church in Cincinnati and on trips to the zoo, Cincinnati Reds games and Kings Island. He began taking the boys on vacations out of state.
Leedy had allegedly provided the family with a fake name. His true identity was discovered during an altercation with the victims’ father in which the police were called. Police advised the parents of Leedy’s true identity and that he was a registered sex offender.
It is alleged that the defendant sexually abused the victims consistently for more than two years and that he threatened the victims that if they told anyone what happened he would not able to take them fun places anymore or buy games and clothes for them.
Aggravated sexual abuse involving a person less than 12 years of age carries a potential maximum sentence of up to life in prison.
Acting U.S. Attorney Glassman commended the investigation of this case by the FBI and Hamilton County Sheriff’s Office, as well as Assistant United States Attorney Christy L. Muncy, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
United States Attorney Wagner Announces His ResignationRead the Press Release
SACRAMENTO, Calif. — United States Attorney Benjamin B. Wagner has announced his resignation effective midnight on April 30, 2016. Wagner has served as the U.S. Attorney for the Eastern District of California for six and a half years, and he served as an Assistant U.S. Attorney and Supervisory AUSA for over 17 years before that.
During his tenure as United States Attorney, Wagner served for three years on the Attorney General’s Advisory Committee under Attorney General Eric Holder, and was appointed to co-chair the White Collar Crime Subcommittee of the AGAC by Attorney General Loretta Lynch. He served on numerous other AGAC subcommittees, and for five years was a co-chair of the Mortgage Fraud Working Group of the President’s Financial Fraud Enforcement Task Force.
“Serving as the United States Attorney for the Eastern District of California has been the most fulfilling and exciting experience of my professional career,” said Wagner. “I have the greatest respect for the women and men in this office who seek to do justice each day, and I am proud of all that we have been able to accomplish together.”
“Ben Wagner has served the people of the Eastern District of California with distinction for nearly a quarter of a century, spending more than 17 years as a prosecutor in the office before becoming U.S. Attorney in 2009,” said Attorney General Loretta Lynch. “Throughout his career with the Department of Justice, he has accepted a wide range of responsibilities – from coordinating his district’s anti-terrorism and hate crimes efforts to representing the department overseas as our Resident Legal Advisor in Indonesia. As U.S. Attorney, he has worked tirelessly to combat the most serious offenses, including gang violence and child exploitation. He has been a leader in the department’s outreach to Arab and Muslim Americans, helping to ensure strong relationships and defend against bigotry. He has vigorously prosecuted cases of mortgage fraud, securing record sums from banks for their role in the 2008 financial crisis. And he has provided critical insight and valuable advice as a member of my Advisory Committee, where I appointed him co-chair of the Subcommittee on White Collar Crime. I am grateful to Ben for his outstanding record of service to the Department of Justice and to the American people, and I wish him the very best in his future endeavors.”
In civil and asset forfeiture cases, the Eastern District had several years of record recoveries under Wagner’s leadership. A few of the significant civil cases handled by the office over the past six years include the following:
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The recent $5.06 billion multiparty settlement with Goldman Sachs relating to the securitization and sale of residential mortgage-backed securities. The settlement included a $2.385 billion payment to the Department of Justice as a result of efforts by attorneys in the Eastern District — the largest civil recovery in the history of the district.
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The $13 billion multiparty settlement with JPMorgan Chase announced in 2013 relating to the securitization and sale of residential mortgage-backed securities. The settlement included a $2 billion payment to the Department of Justice as a result of the Eastern District’s work.
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The settlement with Sierra Pacific Industries announced in 2012, valued at approximately $122 million, relating to its role in the huge Moonlight Fire that damaged tens of thousands of acres of U.S. Forest Service land. The settlement agreement required the transfer of 22,500 acres of wilderness to the USFS in California.
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Health care fraud and false billing settlements against Adventist Health, Catholic Health Care West, Medtronic Inc., Biotronik, and Quest Diagnostics, resulting in total recoveries of nearly $40 million between 2011 and 2015.
In criminal cases, the office expanded its prosecution of financial and health care fraud cases, firearms trafficking, human trafficking and child exploitation cases. In the area of narcotics enforcement, the office focused on the prosecution of high-level and violent offenders, while seeking more lenient sentences for lower-level and nonviolent offenders. A few of the significant criminal cases handled by the office include the following:
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The conviction of nearly 300 defendants in complex mortgage fraud cases, many involving schemes that fleeced homeowner victims of many millions of dollars. Sentences imposed ranged up to 30 years in prison.
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The convictions and lengthy sentences obtained in the Wannakuatte and Vassallo cases, involving the largest Ponzi schemes in the history of the district, in which investors lost about $150 million.
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The RICO conviction of Scott Salyer, CEO of SK Foods, and nine other officers of food product companies in a series of prosecutions involving fraud and commercial bribery in the tomato products industry.
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The conviction of approximately 70 leaders of the hyper-violent Nuestra Familia criminal organization in a series of prosecutions in both Fresno and Sacramento. Most defendants received lengthy prisons sentences.
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The extradition and prosecution of Shiraz Malik, the leader of an international drug trafficking organization, who was based in Poland.
During Wagner’s tenure, the number of Assistant U.S. Attorneys in the Eastern District increased by over 12 percent. He established a National Security Unit within the office, created a Civil Rights/Human Trafficking Working Group, expanded the White Collar Unit in the Fresno Division, and opened a new branch office in Bakersfield. He also conducted extensive outreach to underserved populations in the district, including the Muslim, Sikh, Southeast Asian, and LGBT communities.
As of May 1, 2016, Phillip A. Talbert will assume leadership of the office as Acting U.S. Attorney. Talbert, who is currently the First Assistant U.S. Attorney, has had a distinguished career in more than 13 years in the office. He previously served as Appellate Chief and as a prosecutor in the Narcotics and Violent Crime Unit, and served in the Department of Justice’s Office of Professional Responsibility before coming to the Eastern District of California. Before joining the Department of Justice, he was in private practice. He is a graduate of Harvard University and the UCLA School of Law.
As a supervisor and line prosecutor in the office before becoming U.S. Attorney, Wagner worked in all three units of the criminal division and prosecuted a wide range of cases, including investment fraud, tax evasion, violent crime, public corruption, money laundering, domestic terrorism, and hate crimes. He tried 19 cases to verdict and argued numerous appeals in the Ninth Circuit Court of Appeals. At various times he served as the district antiterrorism coordinator, the hate crimes and civil rights coordinator, and the Violence Against Women Act coordinator. He was awarded a national Director’s Award for Superior Performance by an AUSA three times, and was also presented with the national IRS Criminal Investigation Chief’s Award, and with a Meritorious Honor Award by the State Department. In 2005-06, he was stationed in Jakarta as the first Department of Justice Resident Legal Advisor in Indonesia.
Some of the notable cases which Wagner handled as an Assistant U.S. Attorney include the prosecution of Blue Shield of California in an audit obstruction case; the prosecution of reproductive health care clinic serial arsonists Rachelle Shannon and Richard Andrews; the prosecution of the leaders of Anderson Ark & Associates, an international money laundering and tax evasion organization; the prosecution of 10 defendants including doctors, a CPA and an attorney, in three offshore tax evasion scheme cases; the prosecution of 17 defendants, including a CPA and an attorney, in seven investment fraud cases; the prosecution of two corrupt State Department employees and several others in a scheme to obtain visas through bribes; the hate crime prosecution of the Williams brothers, who torched three synagogues in Sacramento; the public corruption prosecution of Monte McFall and various officials from San Joaquin County, including the elected sheriff; the prosecution of five defendants, including three attorneys, in an asylum application fraud scheme; and the prosecution of two cross-burning cases.
After his resignation, Wagner plans to seek employment at a law firm in the Northern California area.
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United States Attorney Wagner Announces His ResignationRead the Press Release
U.S. Attorney Benjamin B. Wagner for the Eastern District of California has announced his resignation effective midnight on April 30. U.S. Attorney Wagner has served as the U.S. Attorney for the Eastern District of California for six and a half years and he served as an Assistant U.S. Attorney (AUSA) and Supervisory AUSA for over 17 years before that.
During his tenure as U.S. Attorney, he served for three years on the Attorney General’s Advisory Committee (AGAC) under Attorney General Eric Holder and was appointed to co-chair the White Collar Crime Subcommittee of the AGAC by Attorney General Loretta E. Lynch. He served on numerous other AGAC subcommittees and for five years was a co-chair of the Mortgage Fraud Working Group of the President’s Financial Fraud Enforcement Task Force.
“Serving as the U.S. Attorney for the Eastern District of California has been the most fulfilling and exciting experience of my professional career,” said U.S. Attorney Wagner. “I have the greatest respect for the women and men in this office who seek to do justice each day and I am proud of all that we have been able to accomplish together.”
“Ben Wagner has served the people of the Eastern District of California with distinction for nearly a quarter of a century, spending more than 17 years as a prosecutor in the office before becoming U.S. Attorney in 2009,” said Attorney General Lynch. “Throughout his career with the Department of Justice, he has accepted a wide range of responsibilities – from coordinating his district’s anti-terrorism and hate crimes efforts to representing the department overseas as our Resident Legal Advisor in Indonesia. As U.S. Attorney, he has worked tirelessly to combat the most serious offenses, including gang violence and child exploitation. He has been a leader in the department’s outreach to Arab and Muslim Americans, helping to ensure strong relationships and defend against bigotry. He has vigorously prosecuted cases of mortgage fraud, securing record sums from banks for their role in the 2008 financial crisis. And he has provided critical insight and valuable advice as a member of my Advisory Committee, where I appointed him co-chair of the Subcommittee on White Collar Crime. I am grateful to Ben for his outstanding record of service to the Department of Justice and to the American people and I wish him the very best in his future endeavors.”
In civil and asset forfeiture cases, the Eastern District had several years of record recoveries under U.S. Attorney Wagner’s leadership. A few of the significant civil cases handled by the office over the past six years include the following:
- The recent $5.06 billion multiparty settlement with Goldman Sachs relating to the securitization and sale of residential mortgage-backed securities. The settlement included a $2.385 billion payment to the Department of Justice as a result of efforts by attorneys in the Eastern District — the largest civil recovery in the history of the district.
- The $13 billion multiparty settlement with JPMorgan Chase announced in 2013 relating to the securitization and sale of residential mortgage-backed securities. The settlement included a $2 billion payment to the Department of Justice as a result of the Eastern District’s work.
- The settlement with Sierra Pacific Industries announced in 2012, valued at approximately $122 million, relating to its role in the huge Moonlight Fire that damaged tens of thousands of acres of U.S. Forest Service (USFS) land. The settlement agreement required the transfer of 22,500 acres of wilderness to the USFS in California.
- Health care fraud and false billing settlements against Adventist Health, Catholic Health Care West, Medtronic Inc., Biotronik and Quest Diagnostics, resulting in total recoveries of nearly $40 million between 2011 and 2015.
In criminal cases, the office expanded its prosecution of financial and health care fraud cases, firearms trafficking, human trafficking and child exploitation cases. In the area of narcotics enforcement, the office focused on the prosecution of high-level and violent offenders, while seeking more lenient sentences for lower-level and nonviolent offenders. A few of the significant criminal cases handled by the office include the following:
- The conviction of nearly 300 defendants in complex mortgage fraud cases, many involving schemes that fleeced homeowner victims of many millions of dollars. Sentences imposed ranged up to 30 years in prison.
- The convictions and lengthy sentences obtained in the Wannakuatte and Vassallo cases, involving the largest Ponzi schemes in the history of the district, in which investors lost about $150 million.
- The RICO conviction of Scott Salyer, CEO of SK Foods and nine other officers of food product companies in a series of prosecutions involving fraud and commercial bribery in the tomato products industry.
- The conviction of approximately 70 leaders of the hyper-violent Nuestra Familia criminal organization in a series of prosecutions in both Fresno and Sacramento. Most defendants received lengthy prisons sentences.
- The extradition and prosecution of Shiraz Malik, the leader of an international drug trafficking organization, who was based in Poland.
During U.S. Attorney Wagner’s tenure, the number of Assistant U.S. Attorneys in the Eastern District increased by over 12 percent. He established a National Security Unit within the office, created a Civil Rights/Human Trafficking Working Group, expanded the White Collar Unit in the Fresno Division and opened a new branch office in Bakersfield. He also conducted extensive outreach to underserved populations in the district, including the Muslim, Sikh, Southeast Asian and LGBT communities.
As of May 1, Phillip A. Talbert will assume leadership of the office as Acting U.S. Attorney. Talbert, who is currently the First Assistant U.S. Attorney, has had a distinguished career in more than 13 years in the office. He previously served as Appellate Chief and as a prosecutor in the Narcotics and Violent Crime Unit and served in the Department of Justice’s Office of Professional Responsibility before coming to the Eastern District of California. Before joining the Department of Justice, he was in private practice. He is a graduate of Harvard University and the UCLA School of Law.
As a supervisor and line prosecutor in the office before becoming U.S. Attorney, U.S. Attorney Wagner worked in all three units of the criminal division and prosecuted a wide range of cases, including investment fraud, tax evasion, violent crime, public corruption, money laundering, domestic terrorism, and hate crimes. He tried 19 cases to verdict and argued numerous appeals in the Ninth Circuit Court of Appeals. At various times he served as the district antiterrorism coordinator, the hate crimes and civil rights coordinator and the Violence Against Women Act coordinator. He was awarded a national Director’s Award for Superior Performance by an AUSA three times and was also presented with the national IRS-Criminal Investigation Chief’s Award and with a Meritorious Honor Award by the State Department. In 2005 to2006, he was stationed in Jakarta as the first Department of Justice Resident Legal Advisor in Indonesia.
Some of the notable cases which U.S. Attorney Wagner handled as an Assistant U.S. Attorney include the prosecution of Blue Shield of California in an audit obstruction case; the prosecution of reproductive health care clinic serial arsonists Rachelle Shannon and Richard Andrews; the prosecution of the leaders of Anderson Ark & Associates, an international money laundering and tax evasion organization; the prosecution of 10 defendants including doctors, a CPA and an attorney, in three offshore tax evasion scheme cases; the prosecution of 17 defendants, including a CPA and an attorney, in seven investment fraud cases; the prosecution of two corrupt State Department employees and several others in a scheme to obtain visas through bribes; the hate crime prosecution of the Williams brothers, who torched three synagogues in Sacramento; the public corruption prosecution of Monte McFall and various officials from San Joaquin County, including the elected sheriff; the prosecution of five defendants, including three attorneys, in an asylum application fraud scheme; and the prosecution of two cross-burning cases.
U.S. Attorney Kenneth A. Polite Delivers Remarks Following the Guilty Pleas and Sentencings of Five Former New Orleans Police Officers in the Danziger Bridge ShootingRead the Press Release
As you know, on July 13, 2010, our Office, together with the Civil Rights Division of the Department of Justice, filed criminal charges against 6 former NOPD officers in connection with the September 4, 2005 shooting of several New Orleans citizens on the Danziger Bridge. The case against one, Sgt. Gerald Dugue, was severed and remains pending. The case against the remaining 5 proceeded to trial. Following jury convictions and sentencings, the District Court threw out the convictions and granted a new trial, based on prosecutorial misconduct. That decision has been affirmed by a closely divided 5th Circuit Court of Appeals, and the matter has returned to the District Court for further proceedings.
This morning, the five defendants entered guilty pleas to various counts of the indictment. As part of the agreements, the Court accepted the pleas as well as the negotiated sentencing terms.
Former NOPD Officers Robert Faulcon, Kenneth Bowen, Robert Gisevius, and Anthony Villavaso each plead guilty to 3 charges: deprivation of rights under color of law, conspiracy to obstruct justice, substantive obstruction of justice. Faulcon was sentenced to 12 years, Bowen and Gisevius to 10 years, and Villavaso to 7 years. Their former supervisor, Arthur Kaufman, plead guilty to one count of conspiracy to obstruct justice and one count of falsification of evidence to obstruct justice. He was sentenced to 3 years in prison.
While an imperfect resolution, today's proceeding ensures that these defendants are held accountable for their criminal actions. As the son and brother of police officers, I know all too well that serving as an officer is perhaps the most complex and difficult job in our society. At the same time, when individuals ignore their oath of office, and instead violate the civil rights of the public they are sworn to serve, they will be held accountable.
This is an extremely unique case with a long history. These events occurred almost 11 years ago, and our indictment, almost 6 years. While we disagreed with the legal reasoning that vacated the convictions and granted a new trial, we must undoubtedly accept the fact that the misconduct was unacceptable. I was not in the Office at the time, but I certainly deal with these consequences every day. It undermined the work of this Office and the Department, and called into question the credibility and integrity of the people who do it. Since I became U.S. Attorney, our entire Office has worked hard to help restore that credibility by emphasizing collegiality, diligence, and professionalism at every turn, all while allowing our good work to speak for itself. Those of us who continue to serve as prosecutors must embrace the lessons learned from this case. As prosecutors, we must always be mindful of the unique position that we have in our criminal justice system. We are not called to seek victories in the courtroom, but to ensure that justice and fairness reign throughout all parts of the process, for all parties involved, at all times.
Lastly, today’s proceeding also ensures some measure of finality for the victims and their families. Indeed, we would not have entertained the notion of these pleas without their approval. They have suffered enough, and today allows them to move forward, to continue with additional legal proceedings, all while gaining some peace by knowing that these 5 defendants stood in court today and pled guilty for their criminal actions. I ask that the public embrace the sentiments of these families. This case – regardless of its outcome -- would never bring back their deceased loved ones. This case was never about receiving some specific jail sentences. It was always about accountability. Nothing more, and certainly nothing less.
Two Major International Hackers Who Developed the “SpyEye” Malware get over 24 Years Combined in Federal PrisonRead the Press Release
ATLANTA – Two international computer hackers; Aleksandr Andreevich Panin, a/k/a Gribodemon, of Russia, and Hamza Bendelladj, a/k/a Bx1, of Algeria, have been sentenced to a combined 24 years, six months in prison for their roles in developing and distributing the prolific malware known as SpyEye, which caused hundreds of millions of dollars in losses to the financial industry around the world.
“It is difficult to over state the significance of this case, not only in terms of bringing two prolific computer hackers to justice, but also in disrupting and preventing immeasurable financial losses to individuals and the financial industry around the world,” said U.S. Attorney John Horn. “The outstanding work by our law enforcement partners, both domestically and internationally, as well as terrific cooperation from the private sector, serves as a blueprint on how to combat complex cyber-crime syndicates around the world.”
“Through these arrests and sentencing, the risk the public unknowingly faced from the threat posed by the imminent release of a new highly sophisticated version of SpyEye was effectively reduced to zero. The FBI led investigation that brought one of the world’s most nefarious malware developers to justice and significantly disrupted the prolific SpyEye botnet demonstrates the power of focused investigations that combine the skills and talents of global law enforcement and private industry partners. Furthermore, the arrests and sentences serve as a strong deterrent to future malware developers and their customers, regardless of where they are located,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges and other information presented in court: Until dismantled by the FBI, SpyEye was the preeminent malware banking Trojan from 2010-2012, used by a global syndicate of cybercriminals to infect over 50 million computers, causing close to $1 billion in financial harm to individuals and financial institutions around the globe.
SpyEye was designed to automate the theft of confidential personal and financial information, such as online banking credentials, credit card information, usernames, passwords, PINs, and other personally identifying information. The malware facilitated its theft of personal and confidential information by secretly infecting victims’ computers, enabling cybercriminals to remotely control the infected computers through command and control (“C2”) servers. Once a computer was infected and under their control, cybercriminals remotely accessed the infected computers, without authorization, and stole victims’ personal and financial information through a variety of techniques, including “web injects,” “keystroke loggers,” and “credit card grabbers.” The victims’ stolen personal and financial data was then surreptitiously transmitted to the C2 servers, where it was used to, among other things, steal money from the victims’ financial accounts.
Panin was the primary developer and distributor of SpyEye. Panin developed SpyEye as a successor to the notorious Zeus malware that had, since 2009, wreaked havoc on financial institutions around the world. In November 2010, Panin allegedly received the source code and rights to sell Zeus from Evginy Bogachev, a/k/a Slavik, and incorporated many components of Zeus into SpyEye. Bogachev remains at large and is currently the FBI’s most wanted cybercriminal.
Operating from Russia between 2009 and 2011, Panin conspired with others, including co-defendant Hamza Bendelladj, to develop, market, and sell various versions of SpyEye and component parts on the Internet. Panin allowed cybercriminals to customize their purchases to include tailor-made methods of obtaining victims’ personal and financial information, as well as marketed versions that targeted information about specific financial institutions, including banks and credit card companies.
With the assistance of Bendelladj, a/k/a Bx1, Panin advertised and promoted the SpyEye malware on online, invite-only criminal forums, such as Darkode.com and other exclusive Russian-based criminal forums. The arrest of Bendelladj in January 2013 was a contributing factor that ultimately led to the dismantling of Darkode.com through a coordinated law enforcement effort involving 20 countries in July 2015.
For his part, Bendelladj transmitted over one million spam emails containing strains of SpyEye and related malware to computers in the United States, yielding hundreds of thousands of infected computers. He also developed and sold malicious “plugins” or add-ons for botnets, such as a “spreader”, Automated Transfer System (“ATS”), and “web injects”. These malicious tools were designed to surreptitiously automate the theft of funds from victim bank accounts and to proliferate the spread of malware, including SpyEye and Zeus. Bendelladj used his unauthorized access into infected computers to steal personal identifying information from close to half a million people, hundreds of thousands of credit card and bank account numbers, causing millions of dollars in losses to individuals and financial institutions around the world. Bendelladj also ran a website called VCC.sc where he automated the sale of stolen credit card information to cybercriminals around the world.
On December 20, 2011, a Northern District of Georgia grand jury returned a 23-count indictment against Panin, who had yet to be fully identified, and Bendelladj. The indictment charged one count of conspiracy to commit wire and bank fraud, 10 counts of wire fraud, one count of conspiracy to commit computer fraud, and 11 counts of computer fraud. A superseding indictment was subsequently returned identifying Panin by his true name.
Panin was arrested by U.S. authorities on July 1, 2013, when he flew through Hartsfield-Jackson Atlanta International Airport. On January 28, 2014, Panin pleaded guilty to conspiring to commit wire fraud and bank fraud. Bendelladj was apprehended at Suvarnabhumi Airport in Bangkok, Thailand, on January 5, 2013, while he was in transit from Malaysia to Algeria. Bendelladj was extradited from Thailand to the United States on May 2, 2013. On June 26, 2015, Bendelladj pleaded guilty to all 23 counts of the superseding indictment.
The apprehension of Panin and Bendelladj has resulted in several of the world’s top malware developers no longer being in a position to create malware that can victimize people in the U.S. and abroad. The FBI discovered that within months of his arrest, Panin was planning to release a new strain of SpyEye, called “SpyEye 2.0”, which, if released, would have been one of the most prolific and undetectable botnets distributed to date, and cause immeasurable losses to the international banking industry and individuals around the world. The investigation has also led to the arrests by foreign authorities of four of Panin’s SpyEye clients and associates in the United Kingdom and Bulgaria.
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Aleksandr Andreevich Panin, a/k/a Gribodemon, 27, of Tver, Russia, was sentenced by United States District Court Judge Amy Totenberg, to nine years, six months in prison to be followed by three years of supervised release.
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Hamza Bendelladj, a/k/a Bx1, 27, of Tizi Ouzou, Algeria, was also sentenced by Judge Totenberg, to 15 years in prison to be followed by three years of supervised release.
This case was investigated by Special Agents of the Federal Bureau of Investigation. The FBI disrupted and dismantled the organizational structure behind SpyEye by utilizing unprecedented levels of cooperation with private industry and 26 international law enforcement agencies, demonstrating international boundaries no longer offer safe havens for cyber criminals.
Assistant United States Attorneys Steven D. Grimberg, Kamal Ghali, and Scott Ferber prosecuted the case. Trial Attorneys from the Criminal Division’s Computer Crime and Intellectual Property Section provided valuable assistance. The Justice Department’s Office of International Affairs also provided assistance with this case.
Assistance throughout the investigation was also provided by a number of international law enforcement agencies, including the United Kingdom’s National Crime Agency, the Royal Thai Police, the National Police of the Netherlands - National High Tech Crime Unit (NHTCU), Dominican Republic’s Departamento Nacional de Investigaciones (DNI), the Cybercrime Department at the State Agency for National Security-Bulgaria, and the Australian Federal Police (AFP).
Private sector partners also provided valuable assistance, including Trend Micro’s Forward-looking Threat Research (FTR) Team, Microsoft’s Digital Crimes Unit, Flashpoint, PhishLabs, Dell SecureWorks, Damballa, and the Norwegian Security Research Team known as “Underworld.no”.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga
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Tok Man indicted by Federal Grand Jury for being a felon in possession of firearmsRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a Tok man has been indicted by a federal grand jury in Anchorage for possessing firearms as a convicted felon.
Floyd Julius Stuck, 48, of Tok, Alaska, was charged in a one count indictment.
The indictment alleges that Stuck illegally possessed six firearms on February 2, 2016, and notes that a total of 31 firearms were seized from Stuck’s property on February 2, 2016. Stuck is a four-time felon, whose felony convictions date as far back as 1991 when he was convicted of burglary in the second degree.
Assistant U.S. Attorney Andrea W. Hattan, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both, for the charged offense. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the United States Marshal Service, both branches of the Department of Justice, and the Alaska State Troopers conducted the investigation leading to the indictment in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Three Mexican nationals charged with illegal reentryRead the Press Release
ELKINS, WEST VIRGINIA – A federal grand jury has returned indictments charging three men from Mexico with illegal reentry into the United States, alleging that they were discovered to be in the country unlawfully, United States Attorney William J. Ihlenfeld, II, announced.
Alejandro Cervantes-Martinez, 35, originally of Mexico, was allegedly discovered in April 2016 in Jefferson County, West Virginia after previously having been deported from the United States. Cervantes-Martinez also allegedly utilized a fraudulent Permanent Resident Card and Social Security Card. He is charged with one count of “Reentry of a Removed Alien,” and two counts of “Fraud and Misuse of Visas, Permits, and other Documents.” He faces up to two years in prison for the illegal reentry charge and up to ten years in prison on each of the fraud charges. He also faces a fine of up to $250,000 on each of the three counts.
Alberto Martinez-Nieto, 45, originally of Mexico, was allegedly discovered in April 2016 in Berkeley County, West Virginia after previously having been deported from the United States. Martinez-Nieto has multiple previous felony convictions, including “Vehicle Theft” and “Possession for Sale or Purchase for Purposes of Sale a Controlled Substance (Cocaine).” He is charged with one count of “Reentry of a Deported Alien Previously Convicted of an Aggravated Felony.” He faces up to 20 years in prison and a fine of up to $250,000.
Pedro Camarrillo-Guevarra, 26, originally of Mexico, was allegedly discovered in October 2015 in Berkeley County after previously having been deported from the United States. He is charged with one count of “Reentry of a Removed Alien.” He faces up to two years in prison and a fine of up to $250,000.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Shawn Adkins is prosecuting the cases on behalf of the government. The United States Department of Homeland Security Immigrations and Customs Enforcement is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Somersworth Man Sentenced for Possessing Stolen Government Property with Intent to ConvertRead the Press Release
CONCORD, NEW HAMPSHIRE –United States Attorney Emily Gray Rice announced that Kevin Joseph Fields, formerly of Somersworth, was sentenced to thirty months in prison, three years supervised release and restitution of $22,381.29 to be paid to the U.S. Postal Service after previously pleading guilty to Possessing Stolen Government Property With Intent To Convert.
From May 18, 2014, to on and about June 17, 2014, Fields engaged in a scheme in to obtain United States postage stamps using insufficient funds checks. Fields initiated the scheme by opening a bank account in which he deposited funds from counterfeit checks. Fields then used checks drawn against the bank account to acquire postage stamps at various post offices in New Hampshire and Maine. Fields sold the stamps to pawn shops for less than face value or in exchange for other items such as a laptop computer and a tablet computer. Fields used the cash proceeds to purchase a television, a Blu-ray player, for hotel rooms, and to pay other expenses. Fields’ scheme allowed him to obtain approximately $22,381.29 worth of stamps from U.S. Post Offices.
The case was investigated by the United States Postal Inspection Service offices in Manchester, New Hampshire and Portland, Maine. The case was prosecuted by Assistant U.S. Attorney Alfred Rubega.
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Shreveport felon pleads guilty to illegal firearm possessionRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Shreveport man pleaded guilty to possessing a loaded revolver after being convicted of a felony.
Joseph Dominic Pronnette Jr., 34, of Shreveport, pleaded guilty before U.S. District Judge S. Maurice Hicks Jr. to possession of a firearm and ammunition by a convicted felon. According to the guilty plea, members of the U.S. Marshal’s Fugitive Task Force executed an arrest warrant on September 13, 2015 on Pronnette for a prior felony. He was found in the driver’s seat of a car parked behind a residence in Shreveport. After he was removed from the car and taken into custody, a loaded .38 caliber revolver was found on the driver’s seat.
It is unlawful for Pronnette to possess a firearm or ammunition as he has prior felony convictions for felony theft, simple burglary of an inhabited dwelling, unauthorized entry of an inhabited dwelling, and domestic abuse aggravated assault.
Pronnette faces up to 10 years in prison, one to three years supervised release and a $250,000 fine. A sentencing date of August 1, 2016 was set.
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to promote firearm safety and to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm.
The ATF, U.S. Marshals Service, Louisiana Department of Corrections Probation and Parole, and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. is prosecuting the case.
Scobey Man Sentenced to Nine Years for Raping Woman in Wolf PointRead the Press Release
GREAT FALLS - Joseph Dean Lee, 27, of Scobey, was sentenced for assault with the intent to commit aggravated sexual abuse and assault with the intent to commit abusive sexual contact on April 19, 2016. Lee was convicted following a jury trial in January. U.S. District Court Judge Brian M. Morris sentenced Lee to 110 months of imprisonment, three years of supervised release, and a $200 special assessment.
In documents filed with the Court, Assistant U.S. Attorney Ryan Weldon outlined the proof presented at trial. On January 28, 2015, at approximately 3:00 a.m., the victim called 911 while she was being raped. The 911 operator heard the victim begging Lee to stop, telling Lee to quit “choking” her, and stating that Lee “ripped” her pants down. The 911 operator immediately dispatched law enforcement to a rape in progress. Lee released the victim, and law enforcement found Lee in the victim’s bed after arriving on scene. When interviewed at the police station, Lee claimed that he never touched the victim. Law enforcement swabbed Lee’s penis, and it showed that, to a reasonable degree of scientific certainty, the foreign DNA on Lee’s penis was the victim’s DNA.
Because there is no parole in the federal system, the truth in sentencing guidelines mandate that Lee will likely serve all of the time imposed by the court. In the federal system, Lee does have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.
This case was investigated by the Federal Bureau of Investigation and the Fort Peck Tribe.
Scarborough Man Sentenced to Almost 3 Years for Drug Trafficking ConspiracyRead the Press Release
Contact: Daniel J. Perry
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced today Chad Conner, age 35, of Scarborough was sentenced by United States District Judge Nancy Torresen for the crime of conspiring to distribute and possess with intent to distribute oxycodone and cocaine. Conner received a sentence of 33 months in prison to be followed by 3 years of supervised release for these crimes.
Evidence in the case showed that from at least August 2014 through April 2015, Conner was part of a drug trafficking organization that distributed oxycodone and cocaine from different locations in the Scarborough area. Various co-conspirators would obtain the oxycodone pills and cocaine from out of state sources of supply. The drugs would then be brought to various locations in Maine whereupon they would be distributed by Conner and other conspirators to their customer base in the Scarborough area.
Conner was charged with conspiracy to distribute and possession with intent to distribute oxycodone and cocaine in October 8, 2015. Conner pleaded guilty to the charge on October 28, 2015.
This case results from a joint investigation conducted by Scarborough Police Department and DEA.Rockville Man Sentenced to over 9 Years in Prison for Distributing Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Romeo Joseph Hillman, age 29, of Rockville, Maryland, today to 114 months in prison, followed by lifetime supervised release, for distribution of child pornography. Judge Hazel also ordered that upon his release from prison Hillman must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to Hillman’s plea agreement, on October 22, 2014, an undercover FBI Task Force Officer downloaded 82 image and video files depicting child pornography from a computer using an IP address associated with Hillman’s residence. The images and videos depicted children from approximately ages three to 13 engaged in sexually explicit conduct. On February 11, 2015, a search warrant was executed at Hillman’s residence and law enforcement seized two laptop computers, four USB drives and a cellular telephone.
A subsequent forensic examination of the seized media revealed at least 12,765 images and 600 videos of child pornography, including the images previously downloaded by the FBI Task Force Officer. At least 125 files recovered from the seized media depict children previously identified as victims of child pornography by the National Center for Missing and Exploited Children. The images included depictions of sexual acts and/or bondage with boys and girls from infancy through pre-pubescence. The forensic analysis also confirmed that Hillman had a file sharing program loaded on his computer. Investigation showed that, in addition to the file sharing program, Hillman used Skype to exchange messages regarding the sexual exploitation of children and to trade pictures and videos depicting child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Joseph R. Baldwin and Kristi N. O’Malley, who prosecuted the case.