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Monday 29 February 2016
Dover Man Pleads Guilty to Child Pornography PossessionRead the Press Release
CONCORD, NEW HAMPSHIRE - Shawn Gagne, 30, of Dover, New Hampshire, pled guilty on Monday in United States District Court for the District of New Hampshire to possessing child pornography, announced United States Attorney Emily Gray Rice.
A joint investigation by the Dover, New Hampshire Police Department, Homeland Security Investigations Manchester, and the New Hampshire Crimes Against Children Task Force resulted in the seizure of Gagne’s personal computer from his residence in Dover, New Hampshire. A subsequent analysis of that computer revealed several dozen videos of child pornography.
Gagne is scheduled for sentencing in June 2016. He faces a maximum prison term of 10 years, to be followed by a term of at least 5 years of supervised release and a fine of up to $250,000.
The case is being prosecuted by Assistant United States Attorney Nick Abramson.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
District Man Sentenced to Seven and a Half Years in Prison for Shooting in Southeast WashingtonRead the Press Release
WASHINGTON – Marcus Berry, 20, of Washington, D.C., has been sentenced to a 7 ½-year prison term for the shooting of two victims, which shattered one victim’s knee and left the second victim with a permanent hip injury, U.S. Attorney Channing D. Phillips announced.
Berry pled guilty in August 2015, in the Superior Court of the District of Columbia, to a felony offense of possession of a firearm during a crime of violence and a felony offense of aggravated assault. The Honorable Robert I. Richter sentenced him on Feb. 25, 2016. Following his prison term, Berry will be placed on three years of supervised release.
According to the government’s evidence, on Jan. 17, 2012, a teenage girl called her family to report that she was touched and kicked in the buttocks by Berry while walking to the bus stop after leaving school. Her mother and brother went to the area, near the 1500 block of White Place SE, and found the girl there.
All three approached Berry, who was standing with several other young men. A confrontation ensued, during which Berry’s friend handed him a black pistol. Berry pointed the gun at the girl’s brother and started shooting. Several shots hit the brother in the hip, causing him to fall to the ground. While the brother was crawling away, Berry continued to shoot at him. The mother ran to help and was shot in the knee by Berry. Berry fled the scene, and was later apprehended by officers from the Metropolitan Police Department (MPD). Both victims suffered debilitating injuries, and the mother required repeated reconstructive surgeries on her knee.
In announcing the sentence, U.S. Attorney Phillips commended the work of the officers, detectives, and others who worked on the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Brandon Long, now of the U.S. Attorney’s Office for the Eastern District of Louisiana, and Assistant U.S. Attorneys Erik Kenerson and Karen P. Seifert, all of whom investigated and prosecuted the case.
Community Chevrolet GM Admits Ripping Off DealershipRead the Press Release
ERIE, Pa. - A resident of Edinboro, Pennsylvania pleaded guilty in federal court to a charge of conspiracy to commit wire fraud, United States Attorney David J. Hickton announced today.
Douglas A. Grooms, 44, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that from June 2008 to September 2013, while employed as the general manager of Community Chevrolet in Meadville, Pennsylvania, Grooms embezzled money from the dealership by writing dealership checks to a fictitious marketing company which he set up solely for the purpose of receiving the checks, resulting in a loss of $485,800 to Community Chevrolet.
Judge Cercone scheduled sentencing for July 11, 2016 at 12:45 p.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Grooms on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation that led to the prosecution of Grooms.
Cocaine Trafficker Receives Statutory Maximum 20-Year Federal Prison SentenceRead the Press Release
FORT WORTH, Texas — A Fort Worth, Texas, man, Josimar Badillo-Ortiz, 29, was sentenced on Friday by U.S. District Judge John McBryde to the statutory maximum sentence of 240 months in federal prison, following his guilty plea in November 2015 to one count of conspiracy to possess with intent to distribute cocaine, announced U.S. Attorney John Parker of the Northern District of Texas.
Badillo-Ortiz’s two co-conspirators, Joel Gonzalez-Oviedo, 25, and Juan Carranza-Moreno, 31, both of Fort Worth, are scheduled to be sentenced by Judge McBryde on March 25, 2016. They each pleaded guilty in November 2015 to the same offense, and each faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine.
According to documents filed in the case, beginning sometime last year or before, Gonzalez-Oviedo supplied Badillo-Ortiz and others with cocaine. Badillo-Ortiz rarely, if ever, dealt directly with Gonzalez-Oviedo, rather, Badillo-Ortiz dealt almost exclusively with Carranza-Moreno, who acted as a broker between the two. As for his part, Badillo-Ortiz worked on behalf of and at another person’s direction to distribute the cocaine he received from Gonzalez-Oviedo.
According to an affidavit filed with a criminal complaint in the case, on September 15, 2015, law enforcement conducted a traffic stop on a truck they had observed leave a suspected narcotics stash house in Fort Worth. Gonzalez-Oviedo was the driver and Carranza-Moreno was the passenger. Acting on probable cause from a canine’s alert, a search of the truck was conducted, and law enforcement discovered an aftermarket “trap” in the air bag that contained nearly $58,000 in cash. Two days later, Badillo-Ortiz was arrested after law enforcement executed a search warrant at his residence and at the suspected narcotics stash house. He advised law enforcement that he had met with Carranza-Moreno and another man on September 15, 2015, and that he paid Carranza-Moreno approximately $58,000 in exchange for two kilograms of cocaine.
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Arlington Police Department investigated the case. Assistant U.S. Attorney Shawn Smith is in charge of the prosecution.
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Charleston Restaurant Owner Pleads Guilty to Making a False Statement to the Department of LaborRead the Press Release
Contact Person: Dean Secor (843) 266-1654
Charleston, South Carolina ---- United States Attorney Bill Nettles stated today that Jose Jamie Villalpando, a/k/a “Jamie Villapondo,” age 48, of Charleston, and owner of Senor Tequila Restaurants in Charleston, has entered a guilty plea in federal court in Charleston, to False Statement, a violation of 18 U.S.C. § 1001(a)(1). United States District Judge David C. Norton of Charleston accepted the guilty plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that the Wage & Hour Division (WHD) of the Department of Labor (DOL) began an investigation into whether Senor Tequila Mexican Restaurants (Senor Tequila) was paying its employees proper minimum wage and overtime pay in compliance with the Fair Labor Standards Act. The investigation found that Senor Tequila had failed to pay seven of its employees a total of approximately $106,103.05 in minimum wage and overtime pay for the period of July 28, 2008 to July 19, 2010.
Jose Jaime Villalpando (Villalpando), owner and operator of Senor Tequila, agreed to pay the back wages. However, instead of paying all of the back wages he devised and executed a scheme in 2011 in an attempt to deceive WHD investigators and avoid the payment of back wages owed to three of the employees in the amount of $76,575.92.
Villalpando executed the scheme by writing “Senor Tequila” back wages paychecks to the three employees. Villalpando then took those employees to the bank used by Senor Tequila and helped them set up accounts (one employee already had an account at the bank). Villalpando then had the three employees deposit the back wages paychecks into their respective bank accounts. Over the next several weeks, Villalpando had the three employees withdraw the amounts of the back wages paychecks from their accounts in increments and give the money back to him. Villalpando then mailed letters to WHD stating that he paid the three employees, and he attached copies of the cancelled back wages paychecks in an attempt to show that he had in fact paid the employees.
Mr. Nettles stated the maximum penalty for False Statement is imprisonment for 5 years and/or a fine of $250,000.
The case was investigated by agents of the Department of Labor-Office of Investigation (DOL-OIG). Assistant United States Attorney Dean H. Secor of the Charleston office is prosecuting the case.
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Brothers Sentenced for Participating in a Violent Drug ConspiracyRead the Press Release
PITTSBURGH - Two Pittsburgh-area brothers have been sentenced in federal court for conspiracy to distribute and possess with intent to distribute heroin, United States Attorney David J. Hickton announced today.
On Friday, United States District Judge Cathy Bissoon imposed a sentence of imprisonment of 240 months, followed by five years of supervised release, on Keith Harris, 25, of Pittsburgh, Pa. She then imposed a sentence of imprisonment of 121 months, followed by five years of supervised release, on Gregory Harris, Jr., 27, of Homestead, Pa.
According to information presented to the court, both Keith and Gregory Harris conspired to distribute and possess with intent to distribute heroin, and used violence in the course of the drug trafficking conspiracy. Keith Harris played a major role in the conspiracy, and Gregory Harris, Jr. possessed a firearm.
Prior to imposing sentence, Judge Bissoon concluded that Keith Harris was responsible for between one and three kilograms of heroin, which she called an addictive and deadly poison that he chose to sell on the street for profit. Judge Bissoon concluded that Gregory Harris, Jr. was responsible for between 400 and 700 grams of heroin, and she noted that he turned his back on the opportunities given to him. Judge Bissoon also specifically credited the testimony of a victim who testified at trial that both Keith and Gregory Harris physically assaulted and injured him during the heroin conspiracy.
Assistant United States Attorneys Conor Lamb and Ryan Hart prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Allegheny County Sheriff’s Office, the Munhall Police Department, and the Pennsylvania State Police for the investigation leading to the successful prosecution of the Harris brothers. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Animal Rights Activist Sentenced to Three Years in Prison for Vandalizing a Farm and Releasing 2,000 Mink from Their CagesRead the Press Release
CHICAGO — A California man was sentenced today to three years in federal prison for vandalizing a Grundy County fur farm and releasing more than 2,000 mink from their cages.
After releasing the mink, KEVIN JOHNSON and an accomplice spray painted the barn with the words, “Liberation is Love.” The pair also poured an acidic substance over two trucks that were parked on the farm in Morris, Ill.
JOHNSON, 28, of Los Angeles, pleaded guilty last year to one count of conspiring to travel in interstate commerce with the purpose of damaging an animal enterprise. U.S. District Judge Amy J. St. Eve imposed the three-year sentence in federal court in Chicago.
Johnson “vandalized a small, family-owned business, forcing it to close its doors,” Assistant U.S. Attorney Bethany K. Biesenthal argued in the government’s sentencing memorandum. “While his intentions are noble, his tactics are not.”
The accomplice, TYLER LANG, of Los Angeles, pleaded guilty last year to the same charge as Johnson. Lang is scheduled to be sentenced by Judge St. Eve on March 23, 2016, at 9:15 a.m.
The vandalism and releasing of the mink occurred on Aug. 13, 2013. The mink farmers, with assistance from law enforcement, were able to recover 1,600 of the animals. The remaining mink died or were never found. Johnson and Lang also destroyed cards from the cages that identified the breed of each animal, making it impossible to determine the breed of the recovered minks.
The sentencing of Johnson was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The government is being represented by Ms. Biesenthal and Assistant U.S. Attorney William Ridgway.
14 Charged in Southern District of Texas as Part of Operation Dream CatcherRead the Press Release
HOUSTON – A total of 14 people are now in custody on methamphetamine charges in three separate cases, announced U.S. Attorney Kenneth Magidson. These arrests were part of Operation Dream Catcher which also led to the apprehension of seven and 15 more individuals in the Eastern and Western Districts of Texas, respectively.
“Methamphetamine is a vicious poison that has caused horrific and long-term damage to the quality of life in too many of our communities,” said Special Agent in Charge Joseph M. Arabit of the Drug Enforcement Administration (DEA). “These indictments and arrests, as part of Operation Dream Catcher, conclude an 18-month investigation and underscore DEA’s continued commitment to working with our Federal and local law enforcement partners to disrupt and dismantle drug trafficking organizations that negatively impact our neighborhoods and families.”
Those taken into custody included:
Jorge Rojo-Villa, 32, of Pasadena
Maria Villa, 58, Mexican national residing in Houston
Pedro Rojo, 31, of Houston
Juan Cantarero, 49, of El Salvador
Fernando Pacheco Olivo, 33, Mexican national residing in Houston
Alimid Delatorre Garcia, 54, Mexican national residing in Katy
Feliberto Pineda Duarte, 36, Mexican national residing in Humble
Marco Antonio Aparicio-Santos, 44, of Houston
Jesus Ortiz-Flores aka “Alacran,” 26, of MexicoOne defendant - Arturo Hernandez-Villegas, 50, of Mexico - was already in federal custody on other charges.
All have made their initial appearances in federal court. Hernandez-Villegas, Aparicio-Santos and Ortiz-Flores are set for a detention hearing today before U.S. Magistrate Judge Mary Milloy, while the remaining defendants will appear March 3, 2016, at 10:00 a.m.
Two additional defendants - Huber Cornejo, 30, and Osmel Serrano, 30, both Mexican nationals living in Houston – were in state custody on unrelated charges and are expected to make appearances in federal court in the near future.
Two others were arrested in Florida - Reilandis Florat, 30, and Evelio Villalba, 62. They have made their initial appearances there are expected to be transferred to the Southern District of Texas in the near future.
Rojo-Villa, Villa, Rojo and Cantarero are charged by criminal complaint with conspiracy to and possession with intent to distribute controlled substances. This case centered around the distribution of methamphetamine and cocaine in the Houston area.
In a separate criminal complaint, Olivo, Garcia and Duarte are charged with conspiracy to and possession with intent to distribute controlled substances. These charges centered around the distribution of methamphetamine in the Houston area. The criminal complaint in this case details the facts underlying the charges, some of which included drug purchases with the defendants.
In the third case, Hernandez-Villegas, Aparicio-Santos and Ortiz-Flores are charged in a six-count indictment filed Feb. 18, 2016. Each are charged with conspiracy with each defendant facing additional counts of possession with intent to distribute controlled substances.
All 14 defendants face a minimum of 10 years and up to life in prison as well as a possible $10 million fine, upon conviction.
The complaints and indictment remain sealed as to those charged but as yet in custody.
As a part of the overall operation, authorities seized more than $2 million, 279 pounds of methamphetamine, 206 pounds of cocaine and 138 pounds of heroin.
Operation Dream Catcher is the result of investigations conducted by the DEA, Houston Organized Crime Drug Enforcement Task Force - Strike Force, DEA High Intensity Drug Trafficking Area Task Force, Homeland Security Investigations, IRS-Criminal Investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives; FBI; Several Divisions within the Ft. Bend County Sheriff’s Office to include the Patrol Division, SWAT and the Narcotics Task Force; Harris County Sheriff’s Office - Patrol Division; police departments in Houston, Huntsville and Pasadena; Texas Alcoholic Beverage Commission, Texas Department of Public Safety Intel; sheriff’s offices in Montgomery and Walker counties; and the Bureau of Animal Regulation and Care.
Assistant U.S. Attorneys Richard Magness and Arthur R. Jones are prosecuting the cases.
Friday 26 February 2016
Webster Man Sentenced for Downloading Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- U.S. Attorney William J. Hochul Jr. announced today that Preston Field, 24, of Webster, N.Y., who was convicted of possession of child pornography, was sentenced by Chief U.S. District Judge Frank P. Geraci to 48 months in prison, to be followed by 15 years of supervised release.
Assistant U.S. Attorney John J. Field, who handled the case, stated that from November 2012 to March 2014, the defendant downloaded and stored more than 600 images of child pornography. Some of the images portrayed or depicted violence against children. The defendant also made his collection available for others to view and download.
The sentencing is the culmination of an investigation by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Undercover Operation Nets Owner and Bookkeeper of Major Commercial Fishing Business for Violating RegulationsRead the Press Release
BOSTON – The owner of one of the largest commercial fishing businesses in the northeastern United States and his bookkeeper were arrested today on charges of conspiracy and submitting falsified records to the federal government to evade federal fishing quotas. The charges arose out of an undercover investigation in which federal agents posed as organized crime figures interested in buying the fishing business.
Carlos A. Rafael, 64, and Debra Messier, 60, both of Dartmouth, were charged in a criminal complaint with submitting falsified records to the federal government and conspiracy. They are scheduled to appear in U.S. District Court in Boston at 3:30 p.m. today.
According to court documents, Rafael owns Carlos Seafood, Inc., in New Bedford, which is one of the largest commercial fishing businesses in the northeastern United States. The complaint alleges that for years, Rafael, with help from his bookkeeper, Messier, lied to federal authorities about the quantity and species of fish his boats caught, in order to evade federal quotas designed to guarantee the sustainability of certain fish species. After submitting false records to federal regulators to conceal the violation of quotas, Rafael sold the fish to a business in New York City in exchange for bags of cash.
According to court documents, beginning in June 2015, two undercover federal agents posing as organized crime figures had several meetings with Rafael to negotiate the purchase of his business. During those meetings, Rafael allegedly told the agents how he operated his business off-the-books by selling fish for cash. This culminated in a meeting at Rafael’s office in New Bedford in January 2016, during which Rafael and Messier allegedly explained, step by step, what they called “the dance”: the process by which Rafael and others coordinated with Rafael’s boat captains to falsify federal forms intended to track what was caught as well as forms designed to monitor the fish species purchased by Carlos Seafood. Rafael also allegedly told the undercover agents that, in his most recent dealings with the New York City buyer, he earned $668,000 in less than six months. Rafael allegedly smuggled some of the cash through Logan International Airport to Portugal.
The charge of submitting falsified records to the federal government provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 fine. The charge of conspiracy provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Manny J. Muriel, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Rear Admiral Linda L. Fagan, Commander of the First Coast Guard District; Timothy Donovan, Acting Assistant Director of the National Oceanic and Atmospheric Administration, Office of Law Enforcement; Gregory K. Null, Special Agent in Charge of the Department of Homeland Security, Office of Inspector General, Philadelphia Field Office; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Andrew E. Lelling, of Ortiz’s Economic Crimes Unit, and David G. Tobin, of Ortiz’s Major Crimes Unit.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
To confidentially report illegal fisihing activity, contact the U.S. Coast Guard at 1 (844) 847-2431.
U.S. District Court Issues Final Order of Forfeiture Against Hong Kong Entertainment (Overseas) Investments, Ltd, D/B/A Tinian Dynasty Hotel & Casino in the Amount of 2.5 MillionRead the Press Release
Saipan, CNMI - ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced the successful forfeiture of $2,500,000 from Hong Kong Entertainment (Overseas) Investments Ltd., d/b/a Tinian Dynasty Hotel & Casino (“TDHC”). The forfeiture comes months after the United States Attorney’s Office and TDHC entered into a Non Prosecution Agreement which required the casino to forfeit millions in proceeds traceable to criminal violations. Specifically, the agreement required THDC to administratively forfeit $536,969.12 as well as the $2,500,000.00 contemplated in the U.S. District Court’s Final Order of Forfeiture. Together, these sums represent the largest forfeiture by the United States in NMI history. The Agreement also obligates TDHC to fully cooperate with the United States in ongoing criminal investigations and to comply with federal reporting and other regulatory requirements. The United States — in its sole discretion — can rescind the Agreement and initiate criminal proceedings should the Government determine that TDHC has failed to comply with any provision of the Agreement.
In her Final Order of Forfeiture, U.S. District Court Chief Judge Ramona V. Manglona ordered that the casino’s rights, title, and interest in the $2,500,000 are now vested with the United States of America. U.S. Attorney Limtiaco stated, “This forfeiture is the culmination of a year-long investigation. The persistent and dedicated efforts of IRS Criminal Investigators were instrumental in recovering these funds. The IRS Criminal Investigation, the U.S. Attorney’s Office, and the Department of Justice will continue to partner together to ensure casinos, financial institutions, and businesses comply with the requirements of federal law and other financial regulations.”
“The Bank Secrecy laws were enacted to curtail the movement of ill-gotten gains through our financial institutions. When one of those entities shirks their duty and fails to comply with the law requiring the examining and reporting of certain financial transactions, it creates an entry point for would-be criminals to circumvent rules intended to frustrate and detect their criminal enterprises. Together with the U.S. Attorney’s Office, we will continue to monitor the gaming industry to ensure the integrity of our financial markets,” stated Special Agent in Charge Teri Alexander of IRS Criminal Investigation.
Federal law known as the Bank Secrecy Act (BSA) requires that financial institutions and certain businesses, including casinos with annual gaming revenue in excess of $1 million, be vigilant in detecting and reporting activity that may indicate that money laundering, or other financial crimes, are being committed, and that the casino implement and maintain an effective anti-money laundering program. The BSA requires casinos to file a “Currency Transaction Report for Casinos” (CTR-C) for transactions that involve more than $10,000 in cash. Cash includes the coins and currency of the United States and foreign countries. The law requires that casinos and businesses report transactions when customers use cash in a single transaction or a related transaction occurring within a 24-hour period.
On November 20, 2014, a federal grand jury returned a Second Superseding Indictment that charged TDHC with one count of conspiracy to fail to file CTRs in violation of 18 U.S.C. § 371 and 31 U.S.C. §§ 5313(a), 5322(b) and 5324(a)(1) and (d)(2); 155 counts of failure to file CTRs in violation of 31 U.S.C. §§ 5313(a) and 5322(b); one count of failure to file a SAR in violation of 31 U.S.C. §§ 5313(a), and 5322(b); and one count of failure to maintain an effective anti-money laundering program in violation of 31 U.S.C. §§ 5318(h) and 5322(b).
According to filings with the Court, TDHC did not fully identify and disclose all individuals whose gambling activities should have legally triggered a BSA report. From October 1, 2009 through April 25, 2013, TDHC failed to document over $138 million in reportable cash transactions. It is estimated that TDHC failed to report 3,640 separate cash transactions during this same time period.
U.S. Attorney Carter M. Stewart Announces ResignationRead the Press Release
COLUMBUS, Ohio – United States Attorney Carter M. Stewart, 46, of Gahanna, Ohio, has announced his resignation effective midnight on March 11, 2016. After his resignation, he plans on joining a non-profit/foundation in the Columbus area.
“Not just serving as U.S. Attorney in the Southern District of Ohio, but serving under this president and these Attorneys General Holder and Lynch, has been the highest honor of my professional career,” U.S. Attorney Stewart said. “I could not be prouder to call myself a member of this U.S. Attorney’s Office. There are no more dedicated public servants than the men and women in this office who push themselves every day to pursue our core mission: protecting and serving the citizens of the Southern District of Ohio through the ethical, vigorous, impartial enforcement of the laws of the United States.”
Entering office in 2009 during the height of the national financial crises and the collapse of the housing market, U.S. Attorney Stewart established White Collar crime with a focus on mortgage fraud as a top priority for the district, in addition to National Security and Violent Crime. More recently, as the opioid epidemic has grown, he has increased resources for prosecuting pill mills, preventing opioid/heroin abuse and treating addiction.
Emphasizing prevention, Stewart created a robust outreach program in the District, establishing the position of Outreach Coordinator to better understand community needs. He made efforts to be a consistent and accessible resource for the community and also encouraged greater involvement in reentry efforts. Stewart prioritized building trust between community and law enforcement.
“Since 2009, U.S. Attorney Carter Stewart has served the people of the Southern District of Ohio – and all Americans – with fidelity and distinction,” said Attorney General Loretta Lynch. “Throughout his tenure, he has brought his collaborative approach to a wide range of issues, convening important summits on civil rights, cybercrime, juvenile justice, and opioid abuse. He helped to strengthen our global partnerships by representing the U.S. Attorneys community abroad. And as a member of the Attorney General’s Advisory Committee, he spearheaded vital efforts to promote racial equality and to protect children throughout the United States. In these and in many other undertakings, Carter distinguished himself through his hard work, his dedication, and his integrity. I want to thank him for his outstanding contributions, and I wish him the best as he continues his public service career in the nonprofit sector.”
Stewart brought together a diverse group of stakeholders through the creation of the Columbus Community Engagement Council, which included community leaders who represent the city’s diversity in terms of ethnicity, race, faith and sexual orientation.
Under his leadership, the office convened education professionals, medical personnel, faith leaders, advocates and the business community to raise awareness about various issues including civil rights for new Americans, cybersecurity, child exploitation, human trafficking, the school-to-prison pipeline and violent extremism.
Stewart, a graduate of Stanford University, Columbia University and Harvard Law School, previously worked as an Assistant U.S. Attorney in San Jose, Calif., where he prosecuted a variety of cases including drug and gun crimes, environmental crimes, and the illegal distribution of steroids to professional athletes. During his tenure as U.S. Attorney, he served on the Attorney General’s Advisory Committee and chaired the Attorney General’s Child Exploitation Working Group and the Racial Disparities Working Group.
Among the cases prosecuted under Stewart:
U.S. v. William M. and Connie M. Apostelos is a pending case which charges the couple, who oversaw multiple companies in the Dayton, Ohio area, with orchestrating an alleged $70 million Ponzi scheme.
U.S. v. Keith A. Arrick, Sr. and Keith A. Arrick, Jr. is a case in which a father and son have both been sentenced for running a sex trafficking operation. Arrick Sr. was sentenced to 13 years in prison and Arrick Jr. was sentenced to 10 years in prison.
U.S. v. Mark M. Beatty is the first criminal enforcement of the Native American Graves Protection and Repatriation Act in the Southern District of Ohio. It involves a Jackson County man who has pleaded guilty to illegally purchasing Native American human remains. Beatty has not been sentenced yet.
U.S. v. Columbus Steel Castings Company, Inc. resulted in the company paying $825,000 for violating the Clean Air Act. Part of that money funded a Conservation Classroom Program in ten schools in South Columbus within the Columbus Public Schools.
U.S. v. Christopher Lee Cornell involves a 21-year-old Cincinnati-area man charged with attempting to provide material support to ISIL and other related offenses. He allegedly plotted, planned and attempted to attack the U.S. Capitol and kill government officials.
U.S. v. Shane K. Floyd et al. resulted in a jury trial at which school officials charged with a bribe and kickback scheme were found guilty of a $500,000 public corruption scheme. Four defendants were sentenced for their roles in connection with the crimes at the Arise Academy in Dayton, Ohio. School officials solicited and accepted bribes in exchange for a lucrative, unbid consulting contract.
U.S. v. Glen Galemmo involves an investment company owner who was sentenced to 188 months in prison for operating a Ponzi scheme that defrauded investors of more than $87 million. Galemmo used the money as his personal bank, paying country club fees, taking luxurious vacations and buying real estate, clothing and jewelry.
United States ex rel. Fry v. Health Alliance of Greater Cincinnati, Inc (HAGC).—In 2010, HAGC and The Christ Hospital paid $110 million for violating the anti-kickback statute and False Claims Act by paying physicians for referring cardiac patients to The Christ Hospital.
U.S. v. Robert Ledbetter et al. (Short North Posse) is the largest federal murder indictment in Ohio’s history. The racketeering case involves 20 defendants and 13 previously unsolved murders. A trial is set for April 2016.
U.S. v. Charles M. McBeath and Antonio J. Spiva includes charges against two Dayton, Ohio men for distributing heroin and fentanyl that resulted in overdose deaths. Distribution resulting in death is a crime that is punishable by a mandatory minimum of 20 years up to lifetime imprisonment.
U.S. v. Abdirahman Mohamud involves a 23-year-old Columbus, Ohio resident and naturalized citizen who is charged with providing material support to terrorists (al-Nusrah). He allegedly traveled to Syria to obtain terrorist training and was instructed to return to the United States and commit an act of terrorism.
U.S. v. James O. Napier involves a Cincinnati man that was sentenced to serve 240 years in prison for producing child pornography involving an 11-month old infant and an approximately nine-year-old child.
U.S. v. Robert Frank Poandl involves a priest that was sentenced to 90 months in prison for illicit interstate transportation of a minor. A jury convicted Poandl on September 20, 2013. Testimony presented during the trial showed that, in August 1991, Poandl transported a 10-year- old boy from Cincinnati to West Virginia where he sexually assaulted the child. The crime was not disclosed until the victim came forward in 2009.
U.S. v. John P. Raphael is a pending case in which Raphael, a Columbus lobbyist, has pleaded guilty to extortion in relation to contracts with a red light photo enforcement company. Raphael repeatedly pressured and induced the company to make campaign contributions to the campaigns of various elected officials. He communicated to the company that it would lose its contracts and suffer an economic loss if it did not make the payments. Thus, Raphael obtained and attempted to obtain the funds by the wrongful use of fear of economic harm.
U.S. v. Paul H. Volkman resulted in four life sentences for a physician who was the largest physician dispenser of Oxycodone in the U.S. from 2003 to 2005 and whose illegal distribution of the pills led to the deaths of four people.
The Southern District of Ohio covers 48 counties in the state, and includes offices in the cities of Cincinnati, Columbus and Dayton. The U.S. Attorney’s Office has 52 attorneys and is responsible for conducting all criminal and civil litigation involving the United States government in Southern Ohio.
Two Women Plead Guilty to Conspiracy in Scheme to Steal Feeding Program FundsRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Erica Warren, 36, of Little Rock, and Alexis Young, 37, of Bryant, pled guilty to an Information charging them with conspiring to commit mail fraud. The charge relates to a conspiracy to fraudulently obtain United States Department of Agriculture (USDA) program funds intended to feed children in low income areas during the school year.
Today’s plea hearing took place in Little Rock before United States District Judge Brian S. Miller. Judge Miller will sentence Warren and Young at a later date.
The USDA funds the Child and Adult Care Feeding Program (CACFP), which includes an at-risk after school component. In Arkansas, the feeding programs are administered by the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. Once approved, they can provide meals as part of the feeding program and be reimbursed based on the number of eligible meals they serve.
According to facts read at the plea hearing, Warren operated as a sponsor for a feeding program through an organization called "Write of Passage." At times during the period charged in the Information, Warren had approved sites in Little Rock. Young worked for DHS, and part of her job was to determine eligibility of sponsors to participate in the feeding programs. Young was responsible for reviewing Warren’s sites.
Warren and Young admitted that they conspired to form Write of Passage to obtain funds fraudulently from the feeding program. This was done by inflating the number of children fed on claims submitted to DHS. Write of Passage was paid $253,817.44. Warren and Young both shared in the proceeds from these inflated claims as Warren paid Young cash and indirectly by checks made payable to one of Young’s relatives.
Warren and Young are the fourth and fifth persons to plead guilty concerning USDA feeding program funds. The previous charges filed in this investigation and Warren and Young’s Information detail alleged fraud involving over $10 million in USDA feeding program funds. Francine Leon, Kattie Jordan and Christopher Nichols previously pled guilty to conspiracy to commit wire fraud.
The statutory penalty for conspiracy to commit wire fraud is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than three years supervised release.
The investigation is ongoing and is being conducted by the USDA–Office of Inspector General, Federal Bureau of Investigation, Internal Revenue Service–Criminal Investigations, and United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana Harris and Allison W. Bragg. If you are aware of any fraudulent activity regarding these feeding programs, please email that information to [email protected].
Two Glendale Men Found Guilty of Laundering Illegal Proceeds of Multi-Million Dollar Health Care Fraud Scheme that Bilked MedicareRead the Press Release
LOS ANGELES – Two Glendale residents have been found guilty of laundering millions of dollars illegally generated by a health care fraud scheme that billed Medicare for equipment and tests that were not medically necessary and sometimes were never provided.
Edgar Pogosian, also known as “Edgar Hakobyan,” 32, was found guilty today of conspiring to commit money laundering and one count of money laundering.
Karen “Gary” Sarkissian, 44, was convicted Thursday of conspiring to commit money laundering, six counts of money laundering, and five counts of health care fraud.
Pogosian and Sarkissian were found guilty by a federal jury following a three-week trial before United States District Judge Philip S. Gutierrez. The jury returned verdicts against Sarkissian on Thursday afternoon and continued to deliberate on the charges against Pogosian until today.
Judge Gutierrez is scheduled to sentence Sarkissian on June 6, and Pogosian on June 27. At sentencing, Pogosian will face a statutory maximum sentence of 40 years in federal prison, and Sarkissian could be sentenced to as much as 190 years in prison.
“As we continue to target organizations that scheme to defraud the Medicare system, criminals develop more elaborate methods to avoid detection, as seen in the money laundering activities of these defendants,” said United States Attorney Eileen M. Decker. “This case shows, however, that federal investigators have the knowledge, skills and tenacity to investigate and prosecute complex fraud schemes, and my office will continue such prosecutions to protect critical government programs like Medicare.”
With today’s guilty verdicts, a total of five defendants have now been convicted in relation to a health care fraud scheme related to several medical clinics, durable medical equipment suppliers and independent diagnostic testing facilities. Sarkissian operated a clinic on Sunset Boulevard in Echo Park and worked there with a physician’s assistant, L’Tanya Smith, who pleaded guilty in this case on the eve of trial. Between July 2009 and March 2010, Smith prescribed or ordered medically unnecessary tests and services at the Sunset clinic, some of which were never provided to the patients. Those prescriptions and orders led to more than $1.2 million in fraudulent claims to Medicare.
“Smith also prescribed medically unnecessary [durable medical equipment] (mainly orthotics) and other medically unnecessary diagnostic tests that were referred to other Medicare providers, some of which were also depositors into the money laundering conspiracy…,” according to court documents. “These providers, in turn, submitted and caused to be submitted over $10 million in false and fraudulent claims to Medicare.”
Smith, 58, of Ladera Park, pleaded guilty to five counts of health care fraud and is scheduled to be sentenced by Judge Gutierrez on May 2, at which time she will face a statutory maximum sentence of 50 years in federal prison.
Sarkissian participated in a scheme that laundered the fraudulent proceeds generated through the Sunset Clinic through five bogus corporations set up by two other men who have also been convicted in this case. The two co-conspirators deposited millions of dollars in fraudulent proceeds into bank accounts for the companies and then wrote checks from these corporations to themselves and their relatives, including Pogosian, who was found guilty based on evidence that he received checks from the sham corporations that he either cashed or deposited in his own bank accounts.
“Some of the checks written to the five corporations falsely indicated that they were payments for services such as advertising, investment, consulting, management, equipment, or professional or technical services,” according to court documents. “The five corporations in fact had no connection to the medical industry, did not provide any legitimate business services to the Medicare providers that wrote the checks, and existed primarily to launder money.”
Pogosian’s uncle, Khachatour Hakobyan, 47, of Glendale, who prosecutors argued was the overall leader of the scheme, was sentenced last month to 57 months in prison and was ordered to pay $606,681 in restitution after he pleaded guilty to conspiring to launder health care fraud proceeds through the five sham corporations and underreporting his income from the conspiracy on his federal income tax returns.
Aram Aramyan, 60, of Glendale, was sentenced in November to 51 months in prison and was ordered to pay $353,669 in restitution.
“The defendants laundered over $1 million in fraudulently obtained Medicare funds through their sham businesses, often using it for their own personal gain,” said Erick Martinez, Special Agent in Charge of IRS Criminal Investigation's Los Angeles Field Office. “As today’s verdict shows, IRS Criminal Investigation will not stand still while criminals line their pockets with illicit proceeds obtained from publically funded health care programs. The defendants have overstepped their bounds feeling entitled to this benefit program.”
The jury that convicted Pogosian also acquitted him of two counts of money laundering.
This case is the product of an investigation by the Federal Bureau of Investigation; the U.S. Department of Health and Human Services, Office of Inspector General; and IRS Criminal Investigation.
Two Former Executives of Houston-Based Oil Supply Company Plead Guilty to Fraud in Illegal Kickback SchemeRead the Press Release
Two former executives of a Houston-based oil supply company pleaded guilty today to fraud charges for their role in a scheme to secure illegal kickbacks in connection with oil projects in Latin America.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas and Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office made the announcement.
Franklin Marsan, 51, and Eduardo Betancourt, 48, both of Spring, Texas, each pleaded guilty to one count of conspiracy to commit wire fraud. They will be sentenced on July 1, 2016, by U.S. District Judge Melinda Harmon of the Southern District of Texas, who accepted their pleas today. As part of their plea agreements, Marsan and Betancourt agreed to pay restitution to their former employer.
According to the plea agreements, Marsan and Betancourt worked for a Texas-based company that, among other things, manufactured and supplied products for the petroleum, oil and gas industries. The company hired and paid third-party sales agents to promote and sell its products to customers outside the United States. Marsan and Betancourt ran the company’s Latin American operations from offices located in Houston. As part of their guilty pleas, Marsan and Betancourt admitted that from at least 2008 until at least March 2011, they obtained kickbacks from the commissions that these third-party sales agents received in connection with sales of the company’s products in several Latin American countries. Marsan and Betancourt admitted that during the course of the scheme, they received a total of at least $150,000, mostly in cash, in kickbacks, which they actively concealed from the company.
The FBI’s Houston Field Office investigated the case. Senior Trial Attorney Patrick Pericak and Trial Attorney Lorinda Laryea of the Criminal Division’s Fraud Section and Deputy Chief John Pearson of the Southern District of Texas are prosecuting the case.
The United States thanks the government of Panama for its assistance in this case. The Criminal Division’s Office of International Affairs provided significant assistance in this matter.
Two Former Executives of Houston-Based Oil Supply Company Plead Guilty in Illegal Kickback SchemeRead the Press Release
HOUSTON - Two former executives of a Houston-based oil supply company pleaded guilty today to fraud charges for their role in a scheme to secure illegal kickbacks in connection with oil projects in Latin America.
U.S. Attorney Kenneth Magidson, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office made the announcement.
Franklin Marsan, 51, and Eduardo Betancourt, 48, both of Spring, each pleaded guilty to one count of conspiracy to commit wire fraud. They will be sentenced July 1, 2016, by U.S. District Judge Melinda Harmon of the Southern District of Texas, who accepted their pleas today. As part of their plea agreements, Marsan and Betancourt agreed to pay restitution to their former employer.
According to the plea agreements, Marsan and Betancourt worked for a Texas-based company that, among other things, manufactured and supplied products for the petroleum, oil and gas industries. The company hired and paid third-party sales agents to promote and sell its products to customers outside the United States. Marsan and Betancourt ran the company’s Latin American operations from offices located in Houston. As part of their guilty pleas, Marsan and Betancourt admitted that from at least 2008 until at least March 2011, they obtained kickbacks from the commissions that these third-party sales agents received in connection with sales of the company’s products in several Latin American countries. Marsan and Betancourt admitted that during the course of the scheme, they received a total of at least $150,000, mostly in cash, in kickbacks, which they actively concealed from the company.
The FBI’s Houston Field Office investigated the case. Deputy Chief John Pearson of the Southern District of Texas, and Senior Trial Attorney Patrick Pericak and Trial Attorney Lorinda Laryea of the Criminal Division’s Fraud Section are prosecuting the case.
The United States thanks the government of Panama for its assistance in this case. The Criminal Division’s Office of International Affairs provided significant assistance in this matter.
Two Dallas-Area Doctors and Four Others Charged for Roles in $13.4 Million Medicare Fraud SchemeRead the Press Release
Six individuals, including two Dallas-area doctors, were charged in a superseding indictment that was unsealed today for their alleged participation in a $13.4 million health care fraud scheme involving fraudulent claims for home health services.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John Parker of the Northern District of Texas, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) Dallas Region, Special Agent in Charge Thomas M. Class Sr. of the FBI’s Dallas Field Office and Director of Law Enforcement David Maxwell of the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
Dr. Kelly Robinett, 66, of Denton County, Texas; Dr. Angel Claudio, 60, of Hood County, Texas; Patience Okoroji, 57, of Dallas County, Texas; Usani Ewah, 58, of Dallas County ; Kingsley Nwanguma, 45, of Dallas County; and Joy Ogwuegbu, 39, of Collin County, Texas, were each charged with one count of conspiracy to commit health care fraud. The defendants were also each charged with health care fraud: Robinett and Nwanguma with three counts each, Claudio with two counts, Okoroji and Ewah with five counts each and Ogwuegbu with four counts. Okoroji, Ewah, Nwanguma and Ogwuegbu were previously charged in the original indictment.
Robinett, a doctor of osteopathic medicine, is the owner of Boomer Housecalls, based in Frisco, Texas. Claudio, a medical doctor, is an employee of Dallas-based Texas Medical Housecalls.
Okoroji and Ewah co-owned Timely Home Health Services Inc. (Timely), where Okoroji was an administrator and licensed vocational nurse and Ewah was the director of nursing and a registered nurse. Nwanguma was a licensed vocational nurse working for Timely and Ogwuegbu was the former director of nursing for Timely.
The indictment alleges that from approximately January 2007 to September 2015, the defendants conspired to defraud Medicare by causing the submission and concealment of false and fraudulent claims to Medicare. According to the allegations, Robinett and Claudio falsely certified beneficiaries for home health care when the patients were not under their care and did not qualify for home health services. The indictment also alleges that in some cases, Okoroji and Ewah would pay recruiters, including Nwanguma, to recruit beneficiaries for home health services, regardless of whether the beneficiaries needed home health care. Okoroji, Ewah and Ogwuegbu allegedly prepared or caused to be prepared fraudulent Medicare documents that made it appear as though the beneficiaries qualified for home health services.
The indictment alleges that during the scheme, the defendants billed Medicare approximately $13,434,550 based on false home health certification signed by doctors, including Robinett and Claudio, and false and fraudulent claims for home health services.
An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
HHS-OIG, FBI and the MFCU investigated the case, which was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Northern District of Texas. Fraud Section Trial Attorney Jason Knutson is prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Two Charged with Distributing Heroin Involved in Overdose DeathsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that investigations into recent drug overdose deaths have resulted in federal heroin distribution charges against two men.
In unrelated cases, BRADLEY COMMERFORD, 20, of Derby, and REGINALD MILES, JR., also known as “Rocky,” 25, of Waterbury, are each charged with possession with intent to distribute, and distribution of, heroin.
“We are combatting a tragic opioid epidemic that is plaguing not only Connecticut but much of the country,” said U.S. Attorney Daly. “The U.S. Attorney’s Office is working closely with DEA and our state and local partners to actively investigate multiple overdose deaths. Our primary goal is to identify the source and makeup of the drugs involved. This is a very serious public health issue. We will continue to prioritize the prosecution of individuals who traffic narcotics that pose significant public safety concerns.”
“Anytime there is a loss of life involving a drug overdose it is a tragic event; but even more so, when the victims are young adults,” said DEA Special Agent in Charge Ferguson. “Those suffering from the disease of heroin addiction need access to treatment and recovery. But, those responsible for distributing these lethal drugs to the citizens of Connecticut need to be held responsible for their actions. DEA and its federal, state, and local partners are committed to bringing to justice those that distribute this poison.”
According the criminal complaint charging COMMERFORD, the Drug Enforcement Administration’s New Haven Tactical Diversion Squad is investigating two heroin overdoses that occurred in Shelton on February 16, 2016 and one that occurred in Derby on February 17, 2016. The Derby overdose resulted in the death of a 23-year-old male. The investigation, which includes victim and witness interviews, as well as analysis of numerous text messages of the decedent’s phone, identified COMMERFORD as the heroin source of supply in all three overdose cases.
The State of Connecticut Chief Medical Examiner has not yet issued a toxicology report on the decedent.
COMMERFORD has been detained in state custody since February 18, 2016.
According to the criminal complaint charging MILES, on November 19, 2015, a 22-year-old male died from an apparent heroin overdose at a residence in Woodbridge. The investigation revealed that shortly before the victim’s overdose, the victim and two other individuals purchased heroin from MILES in Waterbury.
According to the State of Connecticut Chief Medical Examiner, the victim’s death was determined to be acute intoxication due to the combined effects of heroin and Alprazolam (a generic form of Xanax).
MILES has been detained in federal custody since his arrest on January 22, 2016. He has a bond hearing scheduled for March 1.
The charge of possession with intent to distribute, and distribution of, heroin carries a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
These investigations are being conducted by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, with the assistance of the Derby, Shelton, Monroe, Middlebury and Woodbridge Police Departments. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon and Wilton Police Departments. These cases are being prosecuted by Assistant U.S. Attorney Robert M. Spector.
Trophy Hunter Sentenced to Three Years’ Probation for Illegally Killing Black Bear in New Jersey and Staging Fake Kill Site in New York to Conceal CrimeRead the Press Release
NEWARK, N.J. – A Ringwood, New Jersey, man was sentenced today to three years of probation for transporting an American black bear he illegally killed in New Jersey across state lines to New York, and covering up the crime by creating false records and staging a fake kill site, U.S. Attorney Paul J. Fishman announced.
Martin Kaszycki, 36, previously pleaded guilty before U.S. Magistrate Judge Leda D. Wettre to an information charging him with two counts of violating the Lacey Act by transporting a bear he had illegally killed in Newfoundland, New Jersey, to Sterling State Forest in New York, and covering up the crime by making false statements and staging a fake kill site. Judge Wettre imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On Oct. 5, 2012, Kaszycki killed a 450-pound, male, America black bear from an elevated tree stand, with a bow and arrow, out of hunting season, after setting out bait for the bear within 300 feet of the stand near his place of business in Newfoundland, all in violation of New Jersey state laws. He then drove the bear across state lines to New York, where he falsely told a New York weigh station employee that he had killed the bear in New York’s Sterling State Forest, causing the employee to record the false information on a New York state Bear Data Form.
On Oct. 8, 2012, Kaszycki drove the hide and skull of the bear to a taxidermy shop in Pennsylvania to arrange for the parts to be mounted for a trophy display and falsely represented to a taxidermist that he had hunted the bear in New York, causing the taxidermist to record that information on a New York State Department of Environmental Conservation Taxidermist Bear Report.
When N.J. Division of Fish and Wildlife Officers confronted Kaszycki about the bear on Oct. 10, 2012, at his place of business, Kaszycki told them he had killed the bear in New York. Later that night, Kaszycki drove the guts of the bear to Sterling State Forest in New York, where he placed them in the woods to stage a fake kill site. When confronted again the next day by state officials about the bear, he led those officials to the staged kill site and told them it was the location where he had killed the bear.
The Lacey Act prohibits the interstate transport of wildlife taken or possessed in violation of any state law or regulation as well as the making of a false record for wildlife that has been or is intended to be transported in interstate commerce. New Jersey state laws prohibit the hunting of an American black bear out of season. New Jersey laws also prohibit the hunting of these bears while elevated in a standing tree within 300 feet of a baited area or with a bow and arrow.
As part of his plea agreement, Kaszycki must pay a fine of $5,000 to the U.S. Fish and Wildlife Service Lacey Act Reward Fund. He must also forfeit the skull and hide of the bear and pay $1,250 to the Woodlands Wildlife Refuge for the care and release of orphaned and injured American black bears in New Jersey.
In addition, Kaszycki is prohibited from hunting, shooting, wounding, trapping, fishing, or killing wildlife or wild animals anywhere in the United States by any means during the term of probation or renew any license, permit, or other certificate that would entitle him to hunt during that time. He must also publish a statement in the N.J. Division of Fish and Wildlife (NJDFW) Hunting and Trapping Digest acknowledging the criminal conduct to which he has pleaded guilty.
U.S. Attorney Fishman credited special agents of the U.S. Fish and Wildlife Service, Office of Law Enforcement, under the direction Resident Agent in Charge Preston Fant, as well as the N.J. Division of Fish and Wildlife, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Kathleen P. O’Leary of the U.S. Attorney's Office Health Care and Government Fraud Unit in Newark.
Defense counsel: Peter L. Festa Esq., Paterson, New Jersey
Three Co-Defendants Plead Guilty to Sex Trafficking Minors in Grand Rapids, MichiganRead the Press Release
GRAND RAPIDS, MICHIGAN – All three co-defendants in a West Michigan child sex trafficking case pled guilty today in federal court. Anthony Wilson-Lackey (22) and Shyron Smith (22), both of Grand Rapids, and Stephanie Martin (24) of Holland, Michigan, pled guilty to conspiring to sex traffic two minors in Grand Rapids and Holland, Michigan, in September and October 2014. Wilson-Lackey recruited the minors, who were 15 and 16 years old, and provided them to paying customers for commercial sex in motels around Grand Rapids and an apartment complex in Holland, Michigan. Martin rented hotel rooms and helped post online advertisements promoting the minors for commercial sex. Smith conspired with Wilson-Lackey to split the profits, and he drove the minors to the motels and to Holland to meet johns. All three co-defendants admitted that they knew the minors were only 15 and 16 years old.
Over the past 18 months, the U.S. Attorney’s Office for the Western District of Michigan has successfully prosecuted six defendants for child sex trafficking, including the three in this case. The sentencing hearings will be held on a date to be determined, in the summer of 2016. Martin and Smith face up to five years in prison and Wilson-Lackey faces up to life in prison.
U.S. Attorney Patrick Miles stated, "Sadly, sex trafficking happens everywhere in the country, even right here in West Michigan. Traffickers often target minors who are lured by the promise of money, independence, and sometimes friendship, love, drugs, or violence, into selling their bodies. The growing number of sex trafficking investigations and prosecutions represent law enforcement’s increasing focus on finding and prosecuting those who prey on the vulnerable youth in our community."
"No longer can we say these crimes don’t happen in ‘my neighborhood,’" said David P Gelios, Special Agent in Charge, FBI Detroit Division. "The sexual exploitation of minors, which routinely involves trafficking teenage girls, is repulsive and all too common. The FBI’s collective effort with our Law Enforcement partners to eliminate the ability of traffickers to victimize our children is time and resources well spent. Little can be more important than that."
The Grand Rapids Police Department, Ottawa County Sheriff’s Office, FBI, and the West Michigan Based Child Exploitation Task Force (WEBCHEX) collaboratively conducted the investigation. Assistant U.S. Attorney Tessa K. Hessmiller prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney’s Office; county prosecutor’s offices; and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html.
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Statesboro Man Sentenced for Identity Theft ChargesRead the Press Release
Acting United States Attorney G. F. “Pete” Peterman, III, announces that Jai Devon Lee, age 39, of Statesboro, Georgia, was sentenced on February 25, 2016, in Valdosta, Georgia, by Senior United States District Judge Hugh Lawson to serve 101 months for aggravated identity theft and access device fraud.
Mr. Lee was convicted of the charges in October, 2015, following a two-day jury trial in Valdosta. Evidence presented at trial showed that in June, 2014, Mr. Lee possessed documents containing personal identifying information, including names, social security numbers, and dates of birth of more than 1000 individuals, intended to be used for fraudulent purposes. A tip had been received by the U.S. Secret Service office in Albany, Georgia, that Mr. Lee was trying to sell the various items of personal identifying information (PII) for $50 each. A meeting was arranged at a Valdosta restaurant between Mr. Lee and a Lowndes County Sheriff’s Office detective posing as a buyer who was to purchase 900 of the documents for $45,000.00. Mr. Lee arrived with a backpack containing the stolen identifying information he intended to sell, as well as a folder containing more stolen identifying information, including some personal credit reports. Mr. Lee was taken into custody at that time and charged. Mr. Lee has an extensive criminal record, including nine (9) prior felony convictions.
Acting U.S. Attorney G.P. Peterman, III said, “Identity theft is one of the most prevalent crimes in the United States today. The results can be devastating, depriving the victims not only of their money but of their reputation, credit rating and peace of mind. People who prey on their fellow citizens in the manner of Mr. Lee are nothing more than predators. Hopefully this prosecution and sentence will send the message to others who might be similarly inclined that they will be punished to the fullest extent of the law when caught.”
“Identity theft is one of the fastest-growing crimes in the nation. The U.S. Secret Service remains committed to aggressively investigating those responsible for committing identity theft for the purpose of defrauding the nation’s financial system. Victims that have their personally identifiable information (PII) stolen have their lives invaded in a way that often causes long lasting financial consequences. Along with our law enforcement partners we will continue to pursue those committing these crimes,” said Clint A. Bush, Resident Agent in Charge, Albany, Georgia Resident Office, United States Secret Service.
The case was investigated by the United States Secret Service and the Lowndes County Sheriff’s Office. Assistant United States Attorney Robert D. McCullers prosecuted the case on behalf of the Government.
St. Thomas Man Sentenced to 27 Months in Prison for Transmission of Threat to Injure WitnessRead the Press Release
St. Croix, USVI – Chief District Court Judge Wilma A. Lewis sentenced on February 25, 2016, Kamoui Francis, 25, to 27 months in federal prison for transmission of threat to injure, United States Attorney Ronald W. Sharpe announced. Judge Lewis also sentenced Francis to three years of supervised release, pay a $1,000 fine and pay a special monetary assessment of $100.
Francis pleaded guilty on October 9, 2015. According to the plea agreement filed with the court, in January 2014, on St. Croix, the victim was a witness in a Superior Court case involving the murder of a police officer. On January 28, 2014, the victim received two threatening messages on her Facebook account which were sent from a mobile device. The first message stated that if anyone was found guilty, the victim’s parents and children would be killed, that people were watching the victim and her family every night, that they knew where her kids went to school, and that they were following the victim from court every day. The second message stated that the victim would go missing like the murdered police officer and that people were listening to her testimony. The victim was called a rat and was warned that if anyone received a life sentence, the victim’s family would be killed, that the victim would die slowly just like the officer and would be fed to the sharks.
.Investigators determined that the messages were sent from a Facebook account which they linked to Francis, who was serving a sentence at Golden Grove Adult Correctional Facility. A subsequent search of Francis’ prison cell uncovered a cellular telephone whose assigned number was associated with the Facebook account from which the messages were sent.
This case was investigated by the Federal Bureau of Investigation and the Virgin Islands Bureau of Corrections. It was prosecuted by Assistant U.S. Attorney Rhonda Williams-Henry.
St. Petersburg Man Sentenced to Eight Years for Child Pornography OffensesRead the Press Release
Tampa, Florida – U.S. Senior District Judge Richard A. Lazzara has sentenced Jetmir Qose (23, St. Petersburg) to 8 years in federal prison for transportation and possession of child pornography. The Court also ordered him to forfeit certain items used in the commission of the offenses, including a laptop computer and two external hard drives.
Qose was found guilty after a bench trial held on November 5, 2015.
According to court documents, in September 2014, during an undercover operation, law enforcement discovered that Qose was sharing files of child pornography using a publicly available sharing program. As a result of this initial investigation, a search warrant was executed at Qose’s residence and several of his electronic devices were seized. An examination of the devices revealed a large collection of child pornography, including numerous videos and images featuring the exploitation of minors under the age of 12.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Rachel Jones and Jennifer Peresie.
It is another case 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 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.
South Carolina Man Sentenced to Prison for Role in Nationwide Health Care Benefits SchemeRead the Press Release
Nashville, Tenn. - February 26, 2016 - William M. Worthy, II, 53, of Isle of Palms, South Carolina, was sentenced to 82 months in prison today for his role in a nationwide health care fraud scheme that defrauded over 17,000 victims, announced David Rivera, United States Attorney, and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
Worthy was sentenced by U.S. District Judge Aleta A. Trauger, who also imposed a term of three years’ supervised release upon Worthy’s release from prison. A restitution hearing has been scheduled for June 1, 2016. Worthy pleaded guilty on November 3, 2015, to one count of wire fraud and one count of conspiring to commit mail fraud, wire fraud, health plan embezzlement and money laundering.
As part of his guilty plea, Worthy admitted that he participated in a scheme to defraud thousands of individuals who purchased purported health care coverage from Worthy and his co-conspirators, when in fact the health care plans were not backed by insurance companies. The purported health care plans were marketed by Smart Data Solutions, LLC, a company located in Springfield, Tennessee, owned and managed by Bart Sidney Posey, Sr., 48, of Springfield, who is charged as a co-conspirator in this case.
Smart Data Solutions LLC, and related entities, were seized and liquidated by the State of Tennessee in 2010 when the Davidson County Chancery Court found that these entities were acting as an unlicensed insurance company and posed a significant hazard to the public. Worthy also admitted that he and his co-conspirators embezzled funds from premiums paid by individuals who had signed up for these unauthorized health plans, diverting more than $5.4 million in premiums for their own personal use. He further admitted that the majority of claims submitted in connection with these unauthorized health plans were never paid and accepted responsibility for more than $7.3 million of losses from the fraud.
Worthy was charged along with Posey Sr., Richard Hall Bachman, 67, of Austin, Texas, and Angela Slavey Posey, 49, of Springfield, Tennessee, in a 57-count indictment returned on June 26, 2013. The three co-defendants are pending trial. An indictment is merely an accusation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the United States Postal Inspection Service, the FBI, the United States Department of Labor- Employee Benefits Security Administration and Office of Inspector General, the United States Secret Service, the IRS- Criminal Investigation and the Tennessee Office of the Attorney General. The United States is represented by Assistant United States Attorneys Sandra G. Moses and William F. Abely and Senior Trial Attorney Nicholas Acker of the Criminal Division’s Fraud Section.
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South Carolina Man Sentenced to 82 Months in Prison for Role in Nationwide Health Care Benefits SchemeRead the Press Release
Contact Person: Office of Public Affairs (202) 514-2007
WASHINGTON – A South Carolina man was sentenced to 82 months in prison today for his role in a nationwide health care fraud scheme that defrauded more than 17,000 victims, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David Rivera of the Middle District of Tennessee.
William M. Worthy II, 53, of Isle of Palms, South Carolina, was sentenced by U.S. District Judge Aleta A. Trauger of the Middle District of Tennessee, who also ordered Worthy to pay $6,524,888.86 in restitution and forfeiture. Worthy pleaded guilty on Nov. 3, 2015, to one count of wire fraud and one count of conspiring to commit mail fraud, wire fraud, health plan embezzlement and money laundering.
As part of his guilty plea, Worthy admitted that he participated in a scheme to defraud thousands of individuals who purchased purported health care coverage from Worthy and his co-conspirators, when in fact the health care plans were not backed by insurance companies. The purported health care plans were marketed by Smart Data Solutions LLC, a company located in Springfield, Tennessee, owned and managed by charged co-conspirator Bart Sidney Posey Sr., 48, of Springfield. Worthy also admitted that he and his co-conspirators embezzled funds from premiums paid by individuals who had signed up for these unauthorized health plans, diverting more than $5.4 million in premiums for their own personal use. He further admitted that the majority of claims submitted in connection with these unauthorized health plans were never paid and accepted responsibility for more than $7.3 million of losses from the fraud.
Worthy was charged along with Posey Sr., Richard Hall Bachman, 67, of Austin, Texas, and Angela Slavey Posey, 49, of Springfield, in a 57-count indictment returned on June 26, 2013. The three co-defendants are pending trial. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The U.S. Postal Inspection Service, the FBI, the U.S. Department of Labor’s Employee Benefits Security Administration and Office of Inspector General, the U.S. Secret Service, Internal Revenue Service-Criminal Investigation and the Tennessee Office of the Attorney General investigated the case. Senior Trial Attorney Nicholas Acker of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Sandra G. Moses and William F. Abely of the Middle District of Tennessee are prosecuting the case.
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South Carolina Man Sentenced to 82 Months in Prison for Role in Nationwide Health Care Benefits SchemeRead the Press Release
A South Carolina man was sentenced to 82 months in prison today for his role in a nationwide health care fraud scheme that defrauded more than 17,000 victims, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David Rivera of the Middle District of Tennessee.
William M. Worthy II, 53, of Isle of Palms, South Carolina, was sentenced by U.S. District Judge Aleta A. Trauger of the Middle District of Tennessee, who also ordered Worthy to pay $6,524,888.86 in restitution and forfeiture. Worthy pleaded guilty on Nov. 3, 2015, to one count of wire fraud and one count of conspiring to commit mail fraud, wire fraud, health plan embezzlement and money laundering.
As part of his guilty plea, Worthy admitted that he participated in a scheme to defraud thousands of individuals who purchased purported health care coverage from Worthy and his co-conspirators, when in fact the health care plans were not backed by insurance companies. The purported health care plans were marketed by Smart Data Solutions LLC, a company located in Springfield, Tennessee, owned and managed by charged co-conspirator Bart Sidney Posey Sr., 48, of Springfield. Worthy also admitted that he and his co-conspirators embezzled funds from premiums paid by individuals who had signed up for these unauthorized health plans, diverting more than $5.4 million in premiums for their own personal use. He further admitted that the majority of claims submitted in connection with these unauthorized health plans were never paid and accepted responsibility for more than $7.3 million of losses from the fraud.
Worthy was charged along with Posey Sr., Richard Hall Bachman, 67, of Austin, Texas, and Angela Slavey Posey, 49, of Springfield, in a 57-count indictment returned on June 26, 2013. The three co-defendants are pending trial. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The U.S. Postal Inspection Service, the FBI, the U.S. Department of Labor’s Employee Benefits Security Administration and Office of Inspector General, the U.S. Secret Service, Internal Revenue Service-Criminal Investigation and the Tennessee Office of the Attorney General investigated the case. Senior Trial Attorney Nicholas Acker of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Sandra G. Moses and William F. Abely of the Middle District of Tennessee are prosecuting the case.
Seven People Charged with Federal Firearms OffensesRead the Press Release
PANAMA CITY/PENSACOLA, FLORIDA – Defendants in seven cases were arraigned this week in federal court after a grand jury returned indictments charging them with firearms-related crimes. The indictments were announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
The defendants are:
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Hess, William Howard, 54, Daphne, Alabama;
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Kelly, Terrence Toboris, 37, Pensacola;
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Lange, Arthur Kyle, 30, Panama City;
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Murphy, Leroy Romaro, 51, Pensacola;
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Randall, Robert, 31, Panama City;
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Richey, Tristan M., 30, Pensacola; and
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Smith, Luther C., 44, Pensacola.
The firearms-related charges are:
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Selling a firearm to a convicted felon, (Hess and Smith);
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Possessing a non-registered firearm, (Hess); and
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Possessing a firearm as a convicted felon, (Kelly, Lange, Murphy, Randall, and Richey);
Additionally, Lange and Randall are also charged with controlled substance crimes.
These cases resulted from investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration, the Florida Department of Law Enforcement, Bay County Sheriff’s Office, Escambia County Sheriff’s Office, Panama City Beach Police Department, Pensacola Police Department, and the ATF Gun Crime Response Team. Assistant United States Attorneys David L. Goldberg, Edwin F. Knight, J. Ryan Love, and Jeffrey M. Tharp are prosecuting the cases.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]-
Reno Man Convicted of Kidnapping and Sex Trafficking ChargesRead the Press Release
RENO, Nev. – A Reno man was convicted by a federal jury on Thursday, Feb. 25, of kidnapping a 15-year-old boy and girl in California and transporting them to Reno with the intent that the girl engage in illegal sexual activity, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
“Investigating persons who prey on minors, elderly, and other vulnerable victims, is a top priority of the Justice Department and U.S. Attorney’s Office in Nevada,” said U.S. Attorney Bogden. “We have dedicated more resources than ever to catching and prosecuting these predators, and are working with local, state and federal partners to make sure they face the criminal justice system.”
John Thomas Abrams, aka Buck, aka David George Garnett, aka John McDonald, aka David Blackwell, 50, was convicted of two counts of kidnapping and one count of transportation of a minor for illegal sexual activity. Abrams faces a minimum of 20 years in prison on the kidnapping charges, a minimum of 10 years in prison on the transportation charge, and fines of up to $250,000 on each count. Abrams is in custody and is scheduled to be sentenced on June 13, at 10:00 a.m.
According to the court records and evidence introduced at trial, between about July 12 and July 22, 2012, Abrams kidnapped the girl and the boy in the Sacramento, Calif. area, and held them for ransom, reward, and otherwise. Abrams then transported them to Reno, Nev. with the intent that the girl engage in illegal sexual activity.
The investigation was conducted by the FBI in Sacramento and Las Vegas and the Sacramento Police Department. The case is being prosecuted by Assistant United States Attorneys Carla Higginbotham and Sue Fahami.
The case was brought as part of Project Safe Childhood (PSC), 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 U.S. Attorneys' Offices and the Child Exploitation and Obscenity Section, PSC marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Reentry Simulation Set for Mobile and State HouseRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama, and Project HOPE Reentry Task Force Chairwoman, Senator Vivian Davis Figures, announce that a Reentry Simulation event will be held on Friday, March 4th at 2:30pm at the Mobile Alabama Cruise Terminal. Numerous public officials and reentry stakeholders in the City of Mobile and the Mobile region have been invited to participate in the simulation. Participants will assume new identities as well as new personal factors that apply to them as ex-offenders returning to the community. They will have to meet the strict life requirements that actual returning ex-offenders have to meet or risk going back to jail (yes, a mock jail is part of the simulation).
The purpose of the Reentry Simulation is to highlight unnecessary barriers to successful reentry so that they can be removed. When Mobile Mayor Sandy Stimpson was informed of this event he stated, "You never truly know the challenges others face in life until you walk in their shoes. I commend the Reentry Task Force for holding such an important event in Mobile."
Members of the Alabama Legislature will also be participants in a second Reentry Simulation event on April 13th in Montgomery that will feature remarks from Governor Nathan Deal of Georgia and Governor Robert Bentley. In 2012 and 2013 Governor Deal successfully spearheaded significant criminal justice reforms in Georgia which led to limiting costly prison bed space to the most violent and hardened criminals while reducing corrections costs for Georgia taxpayers. For example, historically, the Georgia Department of Corrections spent more than $20 million annually to keep state inmates in local jails pending their transfer to prison. By FY2014, state spending on such subsidies had fallen to $40,720. Moreover, Georgia tax payers avoided an additional expenditure of $264 million when they did not experience a projected inmate population increase of 8%.1 The State of Georgia then spent significantly less money to build up its reentry infrastructure as compared to the cost of direct incarceration in order to reduce prisoner recidivism.
Senator Figures stated, "Georgia has a blue print for what we can accomplish on a nonpartisan basis here in Alabama. I commend Governor Deal and my legislative colleagues in Georgia for placing an equal emphasis on both enforcement and reentry. I also want to thank Senator Cam Ward, Chair of the Senate Judiciary Committee, for partnering with me in order to bring fresh approaches to solving Alabama’s criminal justice problems."
US Attorney Brown said, "By developing a collective plan to address the needs of ex-offenders in our State we can assist thousands of individuals break the cycle of crime, poverty and self-degradation while promoting standards of good citizenship inclusive of sustained employment and the wherewithal to become tax payers and not a tax burden. In exchange, we, as the greater community, will recognize the benefits of lower crime rates and safer communities in which to live."
US Attorney Brown and Senator Figures are available for interviews upon request or at the March 4th reentry event.
Rapid City Man Indicted for Multiple Sexual OffensesRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Attempted Sexual Exploitation of a Minor, Attempted Enticement of a Minor Using the Internet, and Transfer of Obscene Material to a Minor.
Nathan Johnross Weibel, age 31, was indicted on February 23, 2016. Weibel appeared before U.S. Magistrate Judge Daneta Wollmann on February 24, 2016, and pleaded not guilty to the Indictment.
The penalty upon conviction is a mandatory minimum of 15 years up to life imprisonment and/or a $250,000 fine, 5 years up to lifetime supervised release, $100 to the Federal Crime Victims Fund, and a $5,000 assessment if Weibel is found by the Court not to be indigent. Restitution may also be ordered.
The charges relate to Weibel attempting to have multiple underage females send him sexually explicit photographs and engage in sexual activity, and for sending obscene material to them via the internet.
The charges are merely an accusation and Weibel is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Weibel was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for April 19, 2016.
Ponchatoula Woman Indicted for Bank Fraud, Attempted Bank Fraud, and Aggravated Identity TheftRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JESSICA HENDERSON BERTHELOT, age 28, of Ponchatoula, was indicted yesterday for Bank Fraud, Attempted Bank Fraud, and Aggravated Identity Theft.
According to the court records, the investigation was initiated on September 17, 2015 by the Tangipahoa Parish Sheriff’s Office and the United States Postal Inspection Service after determining that BERTHELOT was stealing mail from residential mailboxes on the north shore.
Postal inspectors determined BERTHELOT stole approximately 1428 items of mail, including negotiable instruments. According to court records, BERTHELOT cashed and attempted to cash the stolen checks at various federally insured financial institutions on the north shore. BERTHELOT was also indicted with aggravated identity theft for forging the signatures of several victims on the stolen checks.
U. S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, BERTHELOT faces a maximum penalty of thirty years imprisonment, followed by up to five years of supervised release, and a $250,000 fine.
U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service and the Tangipahoa Parish Sheriff’s Office. The prosecution of this case is being handled by Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba.
Pinellas Pain Management Doctor and Wife Found GuiltyRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury found Edward N. Feldman, M.D., guilty of conspiring to dispense controlled substances for no legitimate medical purpose and outside the usual course of professional practice, dispensing controlled substances that resulted in death, and money laundering. His wife, Kim Xuan Feldman, was also convicted of conspiring to dispense controlled substances for no legitimate medical purpose and outside the usual course of professional practice and money laundering. Dr. Feldman faces a maximum penalty of life in federal prison, and Mrs. Feldman faces a maximum sentence of 30 years’ imprisonment. Their sentencing hearing is scheduled for May 23, 2016.
The Feldmans were indicted on December 10, 2014.
According to testimony and evidence presented at trial, from October 2009 through December 2014, the Feldmans operated Feldman Orthopedic and Wellness Center (FOWC) in Pinellas Park, Florida. FOWC saw between 80-100 patients a day, with new patients paying $300 in cash for visits, and follow-up patients paying $150-$225 for visits. Insurance was not accepted at FOWC.
During the trial, an expert in pain management opined that Dr. Feldman’s prescriptions to patients had not been for a legitimate medical purpose and had been outside the usual course of professional practice. The expert further opined that Dr. Feldman had been so far outside the usual course of professional practice that he had not been practicing medicine when he had prescribed large doses of controlled substances to his patients.
Additionally, Pinellas-Pasco Medical Examiners opined that J.M., R.G., and S.W. had died as a result of multi-drug toxicity related to the large amounts of Methadone, Oxycodone, Alprazolam, and Diazepam found in their systems. J.M. and S.W. only visited Dr. Feldman once before their respective deaths.
Evidence also showed that the couple had deposited more than $5,000,000 in cash in dozens of bank accounts during the period of the charged crimes. The couple used proceeds from FOWC to purchase their home and property for their business, and to fund investments accounts. More than $500,000 in cash and gold were recovered from various bank accounts and safety deposit boxes in the name of the Feldmans and other family members. Also, a 2011 Porsche, 2006 Infinity, and 2009 Mercedes Benz were seized. The issue of forfeiture will be determined at a later date.
This case was investigated by the Drug Enforcement Administration and the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state, and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. It is being prosecuted by Assistant United States Attorneys Shauna S. Hale and Kaitlin O’Donnell.
Orlando Man Sentenced for Receiving Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced David Ryan Alberts (43, Orlando) to 10 years in federal prison for receiving and possessing child pornography. The Court also ordered him to pay restitution to the victims of his offense. Alberts pleaded guilty in September 2015.
According to court documents, Alberts downloaded and possessed scores of images of prepubescent children, including infants, engaged in sexual acts with adults and with other children. Several of the images depicted sadistic and masochistic conduct, and included images of children engaged in bestiality. He also searched for and possessed dozens of sexually explicit stories involving incest. Based on his prior conduct, Alberts received an enhanced sentence for engaging in a pattern of activity involving the sexual abuse or exploitation of minors.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Embry J. Kidd.
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 (CEOS), 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.
Okaloosa County Father and Son Plead Guilty in Wire Fraud Scheme to Defraud Non-ProfitsRead the Press Release
PENSACOLA, FLORIDA – Anthony Floyd Hemphill, 38, and his father, William Hemphill, 58, both of Crestview, Florida, have pled guilty to conspiracy to commit wire fraud in connection with a scheme to defraud non-profit organizations of more than $300,000. The guilty pleas were announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
During their pleas on February 11, 2016 (Anthony Hemphill), and yesterday (William Hemphill), the conspirators admitted that, between December 2013 and December 2014, they fraudulently represented that A.F.H. Construction LLC owned modular buildings that could be donated to non-profit organizations free of charge, if the non-profit organizations would agree to pay for the transportation and set up of the buildings. Using high pressure sales tactics, the conspirators persuaded the non-profit organizations to quickly wire advance payments for transportation and set up costs, ostensibly to prevent the modular buildings from being donated to other parties.
Once they had their victims’ money in hand, the Hemphills used delaying tactics and false statements to convince the victims that the modular buildings were in the process of being delivered and set up. In fact, no modular buildings were ever delivered.
During the conspiracy, the victims wired approximately $311,700 as advance payments for the transportation and set up costs. Anthony Hemphill used $51,000 of these payments to make a partial restitution payment that he owed in another federal criminal case in the Western District of Texas. Anthony Hemphill is currently serving a 41-month sentence imposed in the Texas case. He committed the conduct underlying the modular building fraud while on pre-trial release and/or as a fugitive in the Texas case.
In addition to the conspiracy charge, Anthony Hemphill pled guilty to wire fraud, and William Hemphill pled guilty to making a false statement to a federal agent.
The sentencing hearings are scheduled for May 10, 2016, at 10:30 a.m. (Anthony Hemphill) and 2:00 p.m. (William Hemphill) at the United States Courthouse in Pensacola.
This case resulted from an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Kathryn D. Risinger is prosecuting the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Novi Restaurant Owner and Wife Indicted for Harboring Undocuments ImmigrantsRead the Press Release
The owner of a Novi, Michigan, restaurant and his wife were indicted on charges of harboring undocumented immigrants forthe purpose of commercial advantage and private financial gain and conspiracy to harbor undocumented immigrants for the purpose of commercial advantage and private financial gain, announced United States Attorney Barbara L. McQuade. McQuade was joined in the announcement by Special Agent in Charge Marlon Miller, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) and Chief David Molloy, Novi Police Department. Roger Tam, 55, and his wife, Ada Lei, 48, of Novi were charged in an indictment returned yesterday by a federal grand jury in Detroit. The indictment is the latest development in an ongoing probe by the Novi Police Department and HSI with assistance from ICE’s Enforcement and Removal Operations (ERO), U.S. Customs and Border Protection’s Border Patrol and the Oakland County Sherriff’s Office. An investigation was launched after HSI special agents and officers with the Novi Police executed federal and state search warrants at the Novi residence, where five Mexican nationals died as a result of a Jan. 31 fire. Department of Homeland Security databases revealed that all five men were illegally present in the United States and had entered in the lastsix months. As alleged in court records, Tam hired five Mexican nationals to work at Kim’s Garden in Novi. The Mexican nationals were provided housing in the Novi home owned by Tam and Lei, and were transported to and from the restaurant, as a condition of their employment. Tam told a Novi detective at the scene of the fire that the deceased individuals were employees at Kim’s Garden whom he paid in cash and allowed to reside in the home’s basement, where smoke detectors had been disabled. If found guilty, Tam and Lei face up to 10 years in prison and a $250,000 fine. An indictment is only a charge and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.New Haven Man Sentenced to Prison for Bribing West Haven Housing Authority OfficialRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANDREW ROSS, 58, of New Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 12 months and one day of imprisonment, followed by three years of supervised release, for paying nearly $350,000 in bribes to the former executive director of the West Haven Housing Authority in exchange for government contracts and business.
According to court documents and statements made in court, Michael Siwek was the executive director of the West Haven Housing Authority (“WHHA”), an agency that received federal funding. As part of his duties, Siwek had substantial discretion over awarding WHHA business and contracts. Siwek also owned and controlled Four Star Development Company, LLC (“Four Star”). Between January 2007 and February 2012, ROSS, who controlled business entities that received WHHA business and contracts for financial and consulting services, made approximately $349,500 in corrupt payments to Siwek and Four Star.
In total, Siwek received approximately $1.5 million in bribes from individuals who received business with the WHHA and the entities that the WHHA controlled.
ROSS was remanded to custody at the conclusion of today’s court proceeding.
A hearing to determine restitution is scheduled for May 19, 2016.
On September 3, 2015, ROSS pleaded guilty to one count of conspiracy to commit bribery in connection with a program receiving federal funds.
On September 4, 2014, Siwek pleaded guilty to related charges. He awaits sentencing.
This matter has been investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, the Federal Bureau of Investigation, and Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Sarah Karwan.
Citizens are encouraged to report corruption to the Connecticut Public Corruption Task Force by calling 203-238-0505.
Navajo Man from Littlewater Pleads Guilty to Assaulting Federally Commissioned Tribal OfficerRead the Press Release
ALBUQUERQUE – Eugene Kuhn, 52, a member of the Navajo Nation who resides in Littlewater, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to assaulting a federal officer with a dangerous weapon. Under the terms of his plea agreement, Kuhn will be sentenced to 18 months in federal prison followed by a term of supervised release to be determined by the court.
Kuhn was arrested on June 14, 2015, on a criminal complaint charging him with assaulting a federal officer on the Navajo Indian Reservation in San Juan County, N.M. Kuhn was arrested after attacking a tribal police officer of the Navajo Nation Division of Public Safety with a metal bar in Littlewater on June 14, 201. Kuhn attacked the officer, who is commissioned as a special federal officer by the BIA, while the officer was attempting to arrest on unrelated charges. Kuhn was subsequently indicted on July 14, 2015.
During today’s proceedings, Kuhn pled guilty to the indictment and admitted that on June 14, 2015, he assaulted a federal officer with a metal bar while the officer was performing his official duties. Kuhn remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Kyle T. Nayback is prosecuting this case.
Miami Resident Charged with Orchestrating an Immigration Fraud SchemeRead the Press Release
A Miami-Dade woman is charged with stealing immigration application payments from her clients when she prepared at least 146 fraudulent petitions filed with United States Citizenship and Immigration Services.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
Josefa M. Siverio, 60, of Miami-Dade, is charged by indictment with five counts of mail fraud, in violation of Title 18, United States Code, Section 1341; and three counts of conversion of postal money orders, in violation of Title 18, United States Code, Section 500.
As alleged in the indictment, Siverio is an immigration consulting and services provider who prepared immigration petitions and applications for aliens seeking immigration benefits from the United States Citizenship and Immigration Services. Siverio is alleged to have prepared at least 146 fraudulent petitions and stolen checks and money orders entrusted to her to pay the fees associated with the petitions and applications for immigration benefits. It is alleged that Siverio’s clients provided her with blank checks and money orders for the application fees and Siverio made the checks and money orders payable to herself and deposited the checks and money orders into her own personal bank accounts.
Mr. Ferrer commended the investigative efforts of ICE-HSI. This case is being prosecuted by Special Assistant U.S. Attorney Monica Beamer.
An indictment is merely an accusation and every defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Resident Charged with Orchestrating an Immigration Fraud SchemeRead the Press Release
A Miami-Dade woman is charged with stealing immigration application payments from her clients when she prepared at least 146 fraudulent petitions filed with United States Citizenship and Immigration Services.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, and Linda M. Swacina, District Director, U.S. Citizenship and Immigration Services (USCIS), made the announcement.
Josefa M. Siverio, 60, of Miami-Dade, is charged by indictment with five counts of mail fraud, in violation of Title 18, United States Code, Section 1341; and three counts of conversion of postal money orders, in violation of Title 18, United States Code, Section 500.
As alleged in the indictment, Siverio is an immigration consulting and services provider who prepared immigration petitions and applications for aliens seeking immigration benefits from the United States Citizenship and Immigration Services. Siverio is alleged to have prepared at least 146 fraudulent petitions and stolen checks and money orders entrusted to her to pay the fees associated with the petitions and applications for immigration benefits. It is alleged that Siverio’s clients provided her with blank checks and money orders for the application fees and Siverio made the checks and money orders payable to herself and deposited the checks and money orders into her own personal bank accounts.
Mr. Ferrer commended the investigative efforts of ICE-HSI and USCIS. This case is being prosecuted by Special Assistant U.S. Attorney Monica Beamer.
An indictment is merely an accusation and every defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Methamphetamine and Cocaine Traffickers Arrested in "Operation Oak Cliff" Sentenced to Lengthy Federal Prison SentencesRead the Press Release
DALLAS — The last of 15 defendants charged and convicted in a methamphetamine and cocaine distribution conspiracy that operated in the Oak Cliff area of Dallas, and elsewhere, has been sentenced to a lengthy federal prison sentence, announced U.S. Attorney John Parker of the Northern District of Texas.
The investigation, dubbed Operation Oak Cliff, was led by the Dallas Police Department’s Narcotics Section, with assistance from the Texas Department of Public Safety.
Armando Luna, 30, of Dallas, was sentenced by Chief U.S. District Judge Jorge A. Solis on Wednesday to serve 160 months in federal prison, following his guilty plea to one count of conspiracy to distribute methamphetamine. Armando Luna’s brother, coconspirator John Paul Luna, 28, pleaded guilty to the same offense and is currently serving a 360-month federal prison sentence.
Other defendants charged and convicted in the case have been sentenced as follows:
Gilbert Garcia, 29, 41 months
Jesus Mendoza, 49, 112 months
Eli Olivarez, 26, 144 months
Servando Pineda-Campos, 45, 112 months
Angeles Ramirez, 34, 78 months
Alan Villegas, 23, 156 months
Jonathon Williams, 26, 37 months
Dakota Michelle Perez, 27, 70 months
Michael Joseph Logan, 54, 112 months
Deanna Rios, 24, 30 months
Christopher Valdez, 26, 124 months
Lucy Valdez, 27, 57 months
Manuel Cedillo Villegas, 29, 188 monthsAccording to documents filed in the case and facts presented in court, in 2012 and 2013, the above-listed defendants conspired together and with others to distribute and possess with the intent to distribute cocaine and 50 grams or more of methamphetamine.
In addition, during the course of the conspiracy, law enforcement purchased approximately 1.9 kilograms of cocaine, 3.24 kilograms of methamphetamine and 8.2 kilograms of marijuana. Law enforcement seized 42 firearms and approximately $62,000 in drug proceeds. They also executed five search warrants during the investigation, closing multiple, mid-level drug houses.
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Man Sentenced to 45 Months in Prison on Wire Fraud Charges for Fraudulent Refund SchemeRead the Press Release
CHARLOTTE, N.C. – Robert Michael Milton, 51, of Blacksburg, S.C., was sentenced yesterday on wire fraud charges and was ordered to serve 45 months in prison for committing a 29-month fraudulent refund scheme targeting Walmart stores in North Carolina, South Carolina, Georgia and Florida, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. In addition to the prison term, Chief U.S. District Judge Frank D. Whitney also ordered Milton to serve two years of supervised release.
U.S. Attorney Rose is joined in making today’s announcement by Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas.
According to filed court documents and yesterday’s sentencing hearing, Milton engaged in the fraudulent scheme from December 2010 to April 2013. Court records show that Milton manufactured counterfeit Walmart paper sales receipts to appear substantially similar to previously-issued genuine Walmart paper sales receipts that Milton obtained when he purchased one or more prepaid debit cards totaling from $500 to $1,000. Court records show that, using transaction numbers from the original Walmart store receipts, Milton printed counterfeit Walmart receipts that replaced the actual purchased products associated with the transaction codes with UPC-barcodes and descriptions of substituted counterfeit Microsoft software and counterfeit DVDs. Court records show that Milton took advantage of a glitch in Walmart’s system, which the company has since fixed, and used the counterfeit Walmart receipts and counterfeit software and DVDs to get full refunds for the retail price of the original transaction. In addition to using counterfeit software and DVDs, Milton also used low-priced fishing rods and reels affixed with barcodes for high-priced fishing rods and reels to obtain fraudulent refunds.
According to court records, Milton targeted and obtained fraudulent refunds from numerous Walmart stores in North Carolina, South Carolina, Georgia and Florida, as reflected in a Walmart Store Atlas seized from Milton’s warehouse. Court records show that Milton’s warehouse contained thermal receipt printers, a barcode reader, 85 fake driver’s licenses for Ohio, South Carolina and Nebraska, and 1,600 counterfeit holograms for Ohio driver’s licenses. Milton’s warehouse also contained a Mapquest printout that mapped out a 786-mile, two-day Georgia road trip with 70 waypoints associated with Walmart stores.
At Milton’s sentencing, the government introduced published National Retail Federation reports that estimated the “amount of fraudulent returns” in the retail industry ranged from $9.1 billion to $14.3 billion during the time period from 2010 through 2013. According to court records, the combined losses were estimated at approximately $400,000 for fraudulent refunds paid to Milton and the value of seized counterfeit software and seized DVDs Milton used in his fraudulent refund wire fraud scheme. Milton pleaded guilty to a wire fraud charge in July 2014.
Milton has been in custody since his arrest in April 2013, and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the HSI. The prosecution for the government was handled by Assistant United States Attorney Thomas O’Malley of the U.S. Attorney’s Office in Charlotte.
Lutz Man Sentenced to 20 Years for Child Enticement and Firearms ChargesRead the Press Release
Tampa, Florida – U.S. District Judge Charlene E. Honeywell yesterday sentenced Bryan Shane Sneed (42, Lutz) to 20 years in prison for the attempted enticement of a minor for sex, and for possession of a firearm during and in relation to a crime of violence. The Court also ordered him to serve a 20-year term of supervision and to register as a sex offender upon his release from prison. Sneed was found guilty by a federal jury on August 7, 2015.
A superseding indictment was returned against Sneed on March 18, 2015.
According to testimony and evidence presented at trial, on January 24, 2014, an undercover agent posing as a 14-year-old child responded to an online personal ad posted by Sneed. Sneed, who traveled frequently, communicated with the undercover agent through emails and text messaging for almost a year. During the communications, Sneed repeatedly sent the “child” multiple graphic images of adult pornography and a video of adult pornography. Sneed made firm plans to meet the “child” in Tampa on January 21, 2015, and when he arrived at the agreed upon location, he was arrested. A search of Sneed’s vehicle by law enforcement revealed a loaded 9 millimeter and .45 caliber handgun and several condoms.
“This criminal intended to have sex with a 14-year-old child,” said Susan L. McCormick, special agent in charge of HSI Tampa. “Our HSI undercover special agents made sure that instead of forever harming a child, he is going to spend the next 20 years behind bars.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Amanda C. Kaiser.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to 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.
Lubbock Man Sentenced to 15 Years in Federal Prison for Producing Child PornographyRead the Press Release
LUBBOCK, Texas — Jimmy Edward Villa, 41, of Lubbock, Texas, was sentenced this morning by Senior U.S. District Judge Sam R. Cummings to 15 years in federal prison, following his guilty plea in October 2015 to one count of production of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Villa has been in federal custody since his arrest in September 2015.
According to documents filed in his case, in late July 2015, Villa used his cell phone to record a video, which he took through a hole in a bathroom ceiling, of a minor female taking a shower and then drying off. Villa subsequently made single-frame screen captures of the video that depicted sexually explicit photos of the minor female.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation and the Lubbock Police Department Internet Crimes Against Children (ICAC) Task Force conducted the investigation. Assistant U.S. Attorney Steven M. Sucsy, of the U.S. Attorney’s Office in Lubbock, was in charge of the prosecution.
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Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that on February 26, 2016, Marlon Romere Rupert, Jr., 33, of Lincoln, was sentenced to 21 years and 10 months (262 months) in prison for his role in a conspiracy to distribute and possess with the intent to distribute 500 grams or more of methamphetamine in the Lincoln area between June of 2013 and August of 2015. Information provided to law enforcement indicated that Rupert was responsible for the distribution of at least 500 grams (approximately 18 ounces) of methamphetamine during that time-period. Following the prison term, Rupert will serve five years on supervised release.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that on February 26, 2016, Patrick Benn Schulte, 39, of Lincoln, was sentenced to nine years and two months (110 months) in prison for his role in a conspiracy to distribute and possess with the intent to distribute 50 grams or more of methamphetamine in the Lincoln area between September of 2013 and April of 2015. Information provided to law enforcement indicated that Schulte was responsible for the distribution of at least 350 grams (approximately 12 ½ ounces) of methamphetamine during that time-period. Following the prison term, Schulte will serve five years on supervised release.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lancaster Man Admits Illegally Uploading Screeners of ‘The Revenant’ and ‘The Peanuts Movie’ to BitTorrent WebsiteRead the Press Release
LOS ANGELES – A Lancaster man has agreed to plead guilty to copyright infringement for illegally posting screener versions of two movies – “The Revenant” and “The Peanuts Movie” – to a publicly accessible website. As a result of the illegal upload, more than 1 million people were able to download “The Revenant,” which caused Twentieth Century Fox Film Corporation to suffer losses of well over $1 million
William Kyle Morarity, who used the screen name “clutchit,” 31, admitted the criminal conduct in a plea agreement filed today in United States District Court.
Morarity obtained the screeners without authorization while at work on a studio lot. He copied the screeners onto a portable drive and uploaded the movies from his home computer on December 17 and 19, 2015 to a BitTorrent website called “Pass the Popcorn,” which allowed downloading via a peer-to-peer network.
“The Revenant” was uploaded six days prior to its limited release in theaters.
“As the Academy Awards ceremony this weekend highlights, the entertainment industry is the economic cornerstone of the Central District of California. Therefore, my office is committed to protecting its intellectual property,” said United States Attorney Eileen M. Decker. “The defendant’s conduct harmed the very industry that was providing his livelihood as well as the livelihood of others in Southern California.”
“Stealing movies is not a victimless crime,” said David Bowdich, the Assistant Director of the FBI’s Los Angeles Field Office. “The FBI will continue to pursue those who steal intellectual property, a crime that negatively impacts the U.S. economy, and in the case of a movie leak, victimizes everyday workers in the entertainment industry.”
Morarity agreed to plead guilty to uploading copyrighted work being prepared for commercial distribution, a felony offense that carries a statutory maximum penalty of three years in federal prison.
Morarity will be arraigned on the charge next month in United States District Court.
The case against Morarity is the product of an investigation by the Federal Bureau of Investigation.
Lafayette felon sentenced to 42 months in prison for possessing a firearmRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced that a Lafayette man was sentenced Thursday to 42 months in prison for possessing a firearm after having previously been convicted of a felony.
Jarrod Ty Foxworthy, 29, of Lafayette, was sentenced by U.S. District Judge Patricia Minaldi on one count of possession of a firearm by a convicted felon. He was also sentenced to three years of supervised release and ordered to pay a $5,000 fine. According to the November 24, 2015 guilty plea, the Lafayette Parish Sheriff’s Office dispatched a deputy to investigate a complaint on April 2, 2013. Someone matching Foxworthy’s description was seen firing a weapon in the front yard of a home on Nyoka Circle in Lafayette during a verbal altercation with the owner of the home. When Foxworthy arrived to be interviewed by the responding deputy, he was carrying a black Smith & Wesson M&P .40 caliber semi-automatic handgun and was taken into custody.
This case is part of Project Safe Neighborhoods, which is a Department of Justice initiative designed to reduce firearm crimes by removing dangerous and persistent felons from the community and promote firearm safety.
The ATF and the Lafayette Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney David C. Joseph prosecuted the case.
Kansas Woman Charged with Transferring Firearm to Convicted Felon in Hesston ShootingRead the Press Release
WICHITA, KAN. – A criminal charge filed Friday alleges a Kansas woman unlawfully transferred guns to a convicted felon who was killed Thursday in a shootout with police in Hesston, Kan., U.S. Attorney Barry Grissom said.
Sarah T. Hopkins, 28, Newton, Kan., is charged with one count of knowingly transferring a firearm to a convicted felon. An affidavit filed in the case alleges Hopkins knew Cedric Ford was a convicted felon who was prohibited from possessing a firearm when she gave him a Zastava Serbia, AK-47 type semi-automatic rifle and a Glock Model 22 40-caliber handgun.
Cedric had the guns when he was shot and killed by police Thursday after they were called to a shooting incident at Excel Industries in Hesston.
If convicted, Hopkins faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Hesston Police Department, the Harvey County Sheriff’s Department, the Newton Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kansas Bureau of Investigation and the FBI investigated. Assistant U.S. Attorney Lanny Welch and Assistant U.S. Attorney David Lind are prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Justice Department Sues to Stop Florida Tax Return PreparerRead the Press Release
West Palm Beach Return Preparer Allegedly Overstated Refunds through Fabricated and Inflated Deductions and Credits
The United States has asked a federal court in West Palm Beach, Florida, to stop Renel Herard and his companies, Herard Tax Services aka Herard Security & Training and Herard Multi Services Inc., from preparing federal income tax returns for others, the Justice Department announced today.
The complaint alleges that Herard has been preparing tax returns since approximately 2009 and has prepared more than 4,000 tax returns for customers since 2011. The complaint alleges also that Herard prepares returns that unlawfully understate income tax liabilities and overstate refunds by fabricating and/or exaggerating deductions and tax credits his clients are not eligible to take. Herard’s practices include fabricating Schedule C losses for non-existent businesses, and falsely claiming fuel tax, child care and education credits for ineligible taxpayers who did not incur qualified expenses according to the complaint.
The complaint further alleges that beginning with returns he prepared for the 2014 tax year, Herard falsely claimed the Premium Tax Credit, a refundable tax credit designed to help eligible individuals and families with low or moderate income afford health insurance purchased through the Health Insurance Marketplace, also known as the Exchange, by claiming it for customers who did not purchase health insurance through the Exchange.
Altogether, the government complaint alleges that loss to the U.S. Treasury from the defendants’ activities may be in the millions of dollars.
Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Jury Finds Former ThermoEnergy Corp. CFO Andrew Melton Guilty on Federal Charges of Mail Fraud and Failure to Pay Employment TaxRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, David Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), and Christopher A. Henry, Internal Revenue Service (IRS) Special Agent in Charge, announced today that a federal jury found former ThermoEnergy Corporation Chief Financial Officer (CFO) Andrew Thurman Melton, 69, of Little Rock, guilty on twelve counts of mail fraud and five counts of failure to account for or pay to the IRS federal taxes withheld from employee paychecks.
United States District Judge Billy Roy Wilson presided over the three-day trial, which concluded Thursday with the jury verdict. Melton will be sentenced by Judge Wilson at a later date.
Melton served as CFO for ThermoEnergy Corp., a technology marketing company based in Little Rock, from 2005 through July 2009. The United States presented evidence which proved that Melton used approximately $109,000 of ThermoEnergy funds to pay for a personal debt arising from a judgment entered against him in a prior lawsuit. The prior judgment was for money Melton owed as a result of his failure to pay an interior decorator for work done at Melton’s home. This judgment resulted in an order garnishing Melton’s wages to satisfy the debt. Instead of complying with that order, however, Melton directed ThermoEnergy funds to be paid to satisfy the order.
The jury further found Melton guilty of failing to pay to the IRS approximately $1.8 million in payroll taxes withheld from ThermoEnergy employees’ wages. Beginning in 2005, Melton was responsible for the collection, accounting, and payment of federal withholding taxes, including Social Security withholding, federal unemployment taxes, and federal disability taxes on behalf of ThermoEnergy employees. During the last two quarters of 2005, all four quarters of 2006, 2007, 2008, and the first quarter of 2009, Melton failed to file IRS form 941 reporting the amounts withheld and failed to pay any of the required employee withholding taxes.
The statutory penalty for mail fraud, a violation of 18 U.S.C. § 1341, is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than three years supervised release. The statutory penalty for failure to pay employment taxes, a violation of 26 U.S.C. § 7202, is not more than five years imprisonment, not more than a $250,000 fine, or both, and not more than three years supervised release.
The investigation was conducted by the FBI and the IRS—Criminal Investigations. First Assistant United States Attorney Patrick C. Harris and Assistant United States Attorney Hunter Bridges prosecuted the case for the United States.