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Friday 26 February 2016
Jordanian Man Sentenced for Visa FraudRead the Press Release
United States Attorney Deborah R. Gilg announced that Ala Marouf Salameh, age 39, a citizen of Jordan, was sentenced for his conviction for visa fraud. United States District Court Judge John M. Gerrard sentenced Salameh to eight months of imprisonment to be followed by three years of supervised release. As Salameh had completed eight months of imprisonment while awaiting trial and sentencing in this matter, he was turned over to immigration authorities for further proceedings relating to his removal from the United States.
Although Salameh held a Jordanian passport, he was required to obtain a visa to be able to enter the United States. On October 29, 2014, Salameh obtained an A-2 visa, a type of visa issued to foreign governmental officials, by falsely representing that he was a sky marshal with the Jordan Armed Forces. Salameh used this visa to enter the United States on June 8, 2015. Prior to the issuance of this A-2 visa, Salameh had been denied a non-immigrant visa on five separate occasions.
This case was investigated by Immigration and Customs Enforcement and the United States State Department, Diplomatic Security Service.
Jefferson County Resident Sentenced for Drug and Firearm OffensesRead the Press Release
On February 25, 2016, Scott L. Fowler, 38, of Mt. Vernon, was sentenced on heroin and firearm offenses, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
Fowler had previously pled guilty to a three-count indictment charging conspiracy to distribute more than 100 grams of heroin, possession of a sawed-off shotgun, and possession of a firearm by a felon. On the heroin offense, Fowler was sentenced to 204 months in federal prison, to be followed by 5 years’ supervised release. On the firearm offenses, Fowler was sentenced to concurrent terms of 120 months in prison, followed by 3 years’ supervised release. Fowler was fined a total of $600.00. Evidence at the plea and sentencing hearings established that, from at least August 2014 to March 2015, Fowler was involved with others in the distribution of heroin in Williamson and Jefferson Counties. During a March 19, 2015, search of a vehicle being driven by Fowler, agents located over 200 grams of heroin, a large amount of U.S. currency, a sawed-off Winchester 12-gauge shotgun, and ammunition. At sentencing, the judge found that Fowler was responsible for the distribution of over 1.8 kilograms of heroin and 35 grams of ice/methamphetamine. The judge also ordered the forfeiture of the firearm.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group, Marion Police Department, Mt. Vernon Drug Task Force, and the Drug Enforcement Administration. The Williamson County State’s Attorney’s Office also assisted in the investigation.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Iranian Man Pleads Guilty for Role in Illegally Distributing “Cracked” Kodak Printing SoftwareRead 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 Navid Salehvaziri, 34, of Tehran, Iran, pleaded guilty before U.S. District Court Judge Charles J. Siragusa to illegally circumventing technological measures protecting a copyrighted work for private financial gain. The charge carries a maximum penalty of five years in prison, a $500,000 fine, or both.
Assistant U.S. Attorney John J. Field, who is handling the matter, stated that Salehvaziri and others worked at a business entity located in Tehran, Iran. There, Salehvaziri sold unauthorized, pirated copies of Kodak software known as Prinergy Evo, a sophisticated commercial printing software. The specific software that the defendant and others sold was “cracked,” meaning that Kodak’s regular security and access control features had been disabled. In an undercover operation, the FBI arranged to purchase a copy of the “cracked” software from Salehvaziri for $1500. Authorized versions of the software, obtained through legitimate Kodak distribution channels, retail for approximately $10,000 and $300,000, depending on the features purchased.
The plea is the result of an investigation by Special Agents of Federal Bureau of Investigation, acting under the direction of Special Agent in Charge Adam S. Cohen.
Sentencing is scheduled for May 26, 2016 at 11:00 a.m. before Judge Siragusa.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Lynch in Missoula on February 25, 2016 and entering pleas of Not Guilty were:
- STEPHEN JOSEPH MARTIN, a 75-year-old resident of Phoenix, Arizona, appeared on charges of failure to register as a sex offender. If convicted of the charge contained in the indictment, MARTIN faces 10 years in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the United States Marshals Service. PACER Case Reference. 16-04
Appearing before U.S. Magistrate Ostby in Billings on February 24, 2016 and entering pleas of Not Guilty were:
- JUAN CARLOS DORADO, a 40-year-old resident of Tucson, Arizona, appeared on charges of conspiracy to possess with intent to distribute methamphetamine and conspiracy to commit money laundering. If convicted of the most serious charge contained in the indictment, DORADO faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Montana Division of Criminal Investigation, Drug Enforcement Administration, Federal Bureau of Investigation, Homeland Security Investigations and HIDTA. PACER Case Reference. 16-05
- JUAN RAMON DELGADILLO-MEZA, a 40-year-old resident of Ephrata, Washington, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, conspiracy to commit money laundering, and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious charges contained in the indictment, DELGADILLO-MEZA faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the FBI Task Force. PACER Case Reference. 16-12
- OTIS TAYLOR YELLOW MULE, a 29-year-old resident of Wyola, appeared on charges of escape. If convicted of the charge contained in the indictment, YELLOW MULE faces 5 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the United States Marshals Service. PACER Case Reference. 16-24
Appearing before U.S. Magistrate Johnston in Great Falls on February 24, 2016 and entering pleas of Not Guilty were:
- DAVID LEE ARMITAGE, a 27-year-old resident of Great Falls, appeared on charges of possession of a firearm not registered in National Firearms Registration and Transfer Record. If convicted of the charge contained in the indictment, ARMITAGE faces 10 years in prison, $10,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 15-85
- LINDA D. TAYLOR, a 61-year-old resident of Great Falls, appeared on charges of desertion of mails and delay or destruction of mail. If convicted of the charge contained in the indictment, TAYLOR faces 1 year in prison and $100,000 in fines. The case was investigated by the United States Postal Service Office of Inspector General. PACER Case Reference. 16-05
Appearing before U.S. Magistrate Ostby in Billings on February 23, 2016 and entering pleas of Not Guilty were:
- OMAR COTA, a 21-year-old resident of Mexico, appeared on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, COTA faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration, Federal Bureau of Investigation, Homeland Security Investigations and HIDTA. PACER Case Reference. 16-04
- TOMAS COTA, a 21-year-old resident of Mexico, appeared on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, COTA faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration, Federal Bureau of Investigation, Homeland Security Investigations and HIDTA. PACER Case Reference. 16-04
- BETHANY ANN FAIRCHILD, a 29-year-old resident of Pasco, Washington, appeared on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, FAIRCHILD faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the FBI Task Force. PACER Case Reference. 16-12
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Illinois Man Sentenced for Transportation of Drug MoneyRead the Press Release
United States Attorney Deborah R. Gilg announced that on February 26, 2016, Matthew Steven Crothers, 32, of Palos Heights, Illinois, was sentenced to 15 months in prison for Interstate Travel/Transportation in Aid of Racketeering Enterprise. Following the prison term, Crothers will serve three years on supervised release.
On October 25, 2014, Crothers was stopped by a Lancaster County Sheriff’s Deputy on Interstate 80 for having a suspended registration. A deputy smelled the odor of marijuana coming from Crothers’s pickup truck. The pickup was searched, and deputies did not find marijuana, but they did find $438,881.00 in cash inside a spare tire. Further investigation by Homeland Security Investigations (HSI) resulted in a determination that the cash found in the spare tire was the proceeds of marijuana sales in the Chicago, Illinois, area and was being transported back to marijuana growers in California. HSI Chicago reported that at that time, high-grade marijuana was selling in the Chicago area for approximately $2,500 per pound, and the cash found was therefore equivalent to approximately 175 ½ pounds of marijuana.
This case was investigated by the Lancaster County Sheriff’s Department and Homeland Security Investigations.
Houston Woman Pleads Guilty to PerjuryRead the Press Release
HOUSTON – Amy Fisher, 36, of Houston, has been convicted of one count of perjury, announced U.S. Attorney Kenneth Magidson.
Fisher committed perjury on Nov. 17, 2014, during her deposition and trial testimony related to the civil trial of Lipinski et. al. v. Meritage Co., Civil Action No. H-10-CV-605.
The Meritage case was a Fair Labor Standards Act (FLSA) case that went to trial in Houston in November 2014. One of the primary issues during trial was whether or not Meritage Corporation had properly classified its sales people as “outside salesmen” who are exempt from the FLSA’s overtime and a minimum wage requirements. Plaintiffs, who were all employed as sales associates for Meritage Corporation, argued the company misclassified them as “outside salesmen” to avoid paying minimum wage and overtime pay.
One of the key issues during the civil trial was determining how much time Meritage sales associates spent in sales activity outside of the sales office. Fisher was the only Meritage sales associate who testified on behalf of the corporation and knew that testimony would benefit her employer.
The deposition and trial, which both occurred on Nov. 17, 2014, focused on what activities Fisher performed outside of her sales office. Fisher gave an oral deposition in the morning and was a trial witness in the afternoon. She was under oath during the deposition and at trial and swore to testify truthfully. However, Fisher has admitted she willfully and knowingly made several false statements regarding her sales activities.
Specifically, she claimed she had left her sales office model home in Katy on Nov. 16, 2014, to escort clients to tour model homes outside the sales office on at least three occasions. She added that her activities on that date were a representation of what she had “typically” done during her 12-year tenure at Meritage.
These statements were false. In fact, she never left the sales office model home at any time on that date to escort any clients. During the trial, Fisher was shown a videotape surveillance of the sales office from that date which confirmed she did not leave and never showed homes to any clients. Confronted with that evidence, she did not recant her false trial testimony or deposition testimony. She was also questioned by the presiding judge regarding the number of times she left her sales office model home on Nov. 16, 2014. She still did not recant her false trial testimony or false deposition testimony.
Fisher admitted today that her false statements were not the result of confusion, mistake or faulty memory. She also admitted that her fabricated testimony was material to the civil proceeding because it had a natural tendency to influence, and was capable of influencing, the decision of the jury.
U.S. District Judge Keith P. Ellison accepted the plea today and has set sentencing for May 26, 2016, at which time Fisher faces up to five years in federal prison and a possible $250,000 fine. She was permitted to remain on bond pending that hearing.
This case is being investigated by the FBI. Assistant U.S. Attorney Julie Searle and Jay Hileman are prosecuting the case.
Head of Utah Heroin, Meth Distribution Organization Sentenced to 144 Months in Federal PrisonRead the Press Release
SALT LAKE CITY – Lorenzo Verduzco-Benitez, age 28, of West Jordan, Utah, head of a drug organization which sold heroin and methamphetamine in Utah, will serve 144 months in federal prison. U.S. District Court Judge Jill N. Parrish imposed the sentenced Thursday afternoon.
Verduzco-Benitez, a citizen of Mexico, pleaded guilty in December to one count of conspiracy to distribute heroin and one count of conspiracy to commit money laundering. He admitted that between July 1, 2014, and March 6, 2015, he was the head of a narcotics organization operating in Utah. He admitted that during this time he distributed approximately 10.5 kilograms of heroin and 10.7 kilograms of methamphetamine in Utah. He admitted using surrogates to deposit drug proceeds into nominee bank accounts to pay his suppliers, allowing him to conceal and disguise the nature, source, and ownership of the drug proceeds. He also admitted that he reinvested drug proceeds into the drug distribution business to ensure its ongoing success.
According to a documents filed in court, DEA started an investigation of the drug trafficking organization in July 2014 after a confidential source provided information to them that law enforcement officers were able to independently corroborate. Evidence showed Verduzco-Benitez resupplied numerous subordinate dealers in Utah, Colorado, Wyoming, and Michigan. As a part of the investigation, agents intercepted significant loads of drugs on several occasions and conducted many controlled drug purchases from the Verduzco organization.
Verduzco-Benitez and five others drug distribution conspiracy were charged in a sealed indictment returned by a federal grand jury in March 2015. Ernesto Vega, age 29, of West Jordan pleaded guilty to conspiracy to deliver a controlled substance and conspiracy to commit money laundering and was sentenced to 72 months in federal prison. Jorge Aquino Andrade, age 44, of Salt Lake City pleaded guilty to conspiracy to distribute heroin and money laundering and is scheduled to be sentenced March 1. His plea agreement includes a stipulated sentence of 60 months. Miquel Escobedo-Mendoza, age 24, of West Valley City, pleaded guilty to possession of heroin with intent to distribute and possession of a firearm in furtherance of a drug trafficking offense. He was sentenced to 120 months in federal prison. Melissa Cervantes, age 24, of Salt Lake City pleaded guilty to conspiracy to commit money laundering and was sentenced to a year in federal prison. Elvira Damian, age 50, of West Jordan, is a fugitive. Several of the defendants are citizens of Mexico and will be referred to ICE for deportation proceedings when they finish their prison sentences.
As a part of his plea agreement, Verduzco-Benitez agreed to forfeit $11,231 in cash and a Cobra Enterprise .380 semi-automatic handgun.
The case is being prosecuted by the U.S. Attorney’s Office in Salt Lake City and investigated by the DEA, IRS Criminal Investigation, and the Davis Metro Narcotics Strike Force.
Hartford Man Sentenced to 5 Years in Prison for Gang-Related Narcotics TraffickingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that TAFARIE GREEN, also known as “Farie,” 26, of Hartford, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 60 months of imprisonment, followed by four years of supervised release, for gang-related narcotics trafficking.
According to court documents and statements made in court, this matter stems from a year-long joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force into narcotics trafficking by members and associates of WestHell street gang, and gang-related violent activity. The investigation, which included the use of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, identified Melkuan Scott, also known as “Young God,” “Mel,” “Young” and “YG,” as the leader of the West Hell street gang who, along with GREEN and other associates, distributed crack cocaine in the Westland Street area of Hartford.
GREEN has been detained since April 2014. On April 24, 2015, he pleaded guilty to one count of conspiracy to distribute 28 grams or more of cocaine base (“crack”).
Twenty-five individuals were charged as a result of the investigation. One defendant was convicted after trial and 23 defendants pleaded guilty to various offenses. One defendant was shot and killed while his case was pending. Scott pleaded guilty and awaits sentencing.
GREEN’s criminal history includes convictions for assault, robbery, attempted burglary and criminal possession of a firearm. While previously incarcerated, he received disciplinary tickets for fighting and assault of a guard.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, Drug Enforcement Administration, U.S. Marshals Service and Internal Revenue Service – Criminal Investigation Division. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Squad, Major Crimes Unit and Shooting Task Force are providing valuable assistance to the investigation, and the Capitol Region Emergency Response Team (CREST) assisted with the arrest of certain defendants.
The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.
Greenville Tax Preparer Sentenced to 90 Months in Prison for Tax Fraud Conspiracy and Aggravated Identity TheftRead the Press Release
WILMINGTON – The United States Attorney’s Office for the Eastern District of North Carolina announced that yesterday, February 25, 2016, Senior United States District James C. Fox entered judgment against TONYA MARIE BATTLE, 37, of Greenville, North Carolina, sentencing her to serve a total of 90 months in prison, followed by 3 years of supervised release, on charges of Aggravated Identity Theft and Conspiracy to Defraud the United States on Claims. BATTLE was also ordered to make restitution of $1,635,515 to the Internal Revenue Service.
The investigation showed that BATTLE, with the assistance of others, devised a scheme to file fraudulent personal income tax returns with the IRS. BATTLE and those working at her direction, recruited individuals to participate in the scheme and offered those individuals significant refunds through the use of their name and identifying information.
In January, 2011, BATTLE opened TBS Tax Service in Greenville, North Carolina, and filed returns using an Electronic Filing Identification Number (EFIN). BATTLE also established a business account with Drake Software and purchased their products to electronically prepare and e-file income tax forms. BATTLE also established an account with EPS Financial Services to print refund checks in her office.
BATTLE used the personal information of TBS Tax Service’s clients to create and e-file false Form 1040s. Once the returns were accepted and funded by the IRS, BATTLE printed refund checks in her office. BATTLE then contacted clients and informed them their checks were available. BATTLE had several office assistants, one of whom was a “strongman”, who escorted clients to a nearby check cashing service in Greenville. BATTLE instructed office assistants to take a portion of most checks as additional fees and return the cash to BATTLE. Some clients had refund checks of as much as $6,000, of which BATTLE would collect the majority.
To carry out the scheme, BATTLE created and used at least 14 fictitious companies. BATTLE applied for Employer Identification Numbers (EINs) through the IRS website for each company, and then provided false names, addresses, and employees for each business. BATTLE then created fictitious Form 1099s for the TBS Tax Service clients using the IRS website to make it appear as though the TBS Tax Service clients had income from the fake companies.
To carry out the scheme BATTLE also utilized a list of dependents, consisting of the names and social security numbers of various children. BATTLE added various dependents’ names to TBX Tax Service client Form 1040s to maximize profits under the scheme.
The investigation established that between January, 2011, and April, 2012, BATTLE filed, or caused to be electronically filed, 366 fraudulent returns with the IRS, which resulted in a loss of $1,635,515 to the government.
On July 13, 2015, BATTLE pleaded guilty to Counts One and 35 of the Indictment, which charged her, respectively, with Conspiracy to Defraud the United States on Claims, in violation of Title 18, United States Code, Section 286; and Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A.
Investigation of BATTLE’s case was conducted by the Internal Revenue Service Criminal Investigation. Assistant United States Attorney William M. Gilmore represented the United States.
Four Men Plead Guilty to Multi-State Fraud Scheme to Obtain More Than $330,000 in New Cell PhonesRead the Press Release
BOSTON – Four men pleaded guilty today in U.S. District Court in Boston in connection with a fraudulent scheme to obtain and re-sell more than $330,000 in new cell phones.
Jimmy Phan, 29 of Boston; David Hul, 34 of North Arlington, NJ; Curtis Peebles, 26 of Boston and New York, NY; and Lee Tran, 29 of Waltham, pleaded guilty to wire fraud conspiracy. U.S. District Court Senior Judge Mark L. Wolf scheduled sentencing for May 23, 2016.
At today’s hearing, the defendants admitted that they and their co-conspirators gained access to T-Mobile customer records, including customer names, phone numbers, and information regarding those customers’ eligibility for free phone upgrades.
From at least January 2014 through October 17, 2014, Phan, Hul, Peebles, and other co-conspirators called T-Mobile customer service centers and, impersonating T-Mobile employees, used dealer codes that enabled them to add any name as an authorized user on T-Mobile accounts. They then recruited “runners”, including Tran and others, to go into T-Mobile stores and impersonate the customers. Phan, Hul, and Peebles used the dealer codes, among other methods, to cause either the runners’ real names or false identities to be added the customer accounts, sometimes using false names that closely matched the runners’ real names to reduce the likelihood of T-Mobile detecting the fraud.
Runners then went to T-Mobile stores in Massachusetts, Nevada, New Hampshire, New York, Pennsylvania, Rhode Island, New Jersey, Florida, and elsewhere, presented identification in the real or assumed names, and acquired one or more new cell phones on accounts that were eligible for upgrades. Runners then returned the new phones to Phan, Hul, Peebles, and others, who paid them a portion of the phone’s value. Although T-Mobile regularly alerted its customers to changes to their accounts, the affected customers frequently did not learn of the fraudulent modifications in time to prevent the distribution of the phones.
Phan, Hul, and others re-sold the cell phones to other co-conspirators for distribution in the United States and abroad. In total, Phan, Hul, Peebles, Tran, and other co-conspirators obtained at least $330,000 worth of new cell phones by defrauding T-Mobile.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Phan, Hul, Peebles and Tran agreed to pay restitution and to forfeit proceeds from the offense and various items seized from Phan’s house in connection with his arrest. 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.
Co-defendants Kevin Johnson, 24, of New York, NY, and Khoa Doan, 32 of Manchester, NH, are currently slated to stand trial.
United States Attorney Carmen M. Ortiz; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Lisa Quinn, Special Agent in Charge of the U.S. Secret Service’s Boston Field Office, made the announcement today. The U.S. Attorney’s Office acknowledges T-Mobile for its assistance with the investigation. The case is being prosecuted by Assistant U.S. Attorney Seth B. Kosto of Ortiz’s Cybercrime Unit.
Former Suffolk County Police Chief Pleads Guilty to Civil Rights Violation and Conspiracy to Obstruct JusticeRead the Press Release
Earlier today, at the federal courthouse in Central Islip, New York, James Burke, the former Chief of Department for the Suffolk County Police Department (SCPD), pleaded guilty to a civil rights violation and conspiracy to obstruct justice. The civil rights violation related to Burke’s assault of a Smithtown man who had been arrested for breaking into Burke’s SCPD-issued vehicle and stealing his property on December 14, 2012. Following that assault, over almost three years, Burke and other Suffolk County law enforcement authorities took actions to obstruct the federal civil rights investigation into the assault. Burke was arrested and arraigned on December 9, 2015, and he has been in federal custody since that date.
The guilty plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“The defendant violated his oath and responsibilities as a law enforcement officer by exacting personal vengeance, assaulting a handcuffed suspect, and abusing his authority as the highest ranking uniformed member of the Suffolk County Police Department. Despite the efforts of the defendant and his co-conspirators to obstruct the federal investigation, he has been brought to justice,” stated United States Attorney Capers. “Our investigation is ongoing, and we will seek to hold accountable anyone who violates another’s civil rights or attempts to obstruct justice.”
FBI Assistant Director-in-Charge Rodriguez stated, “An honest government, trusted by the people, is imperative to protect our freedoms. For these reasons, combating public corruption is the top criminal priority of the FBI. In his guilty plea today, Burke has taken responsibility for his illegal conduct. This begins the restoration of the public’s trust in the Suffolk County Police Department’s ability to protect their Constitutional freedoms.”
According to the indictment, court filings, and statements during today’s guilty plea proceeding, on December 14, 2012, New York State Probation Department and SCPD officers arrested probationer Christopher Loeb at his mother’s home in Smithtown, New York, for a variety of probation violations. During the arrest and search of the Loeb residence, officers discovered a large cache of merchandise stolen from over a dozen vehicles, including an SCPD-issued SUV operated by Burke. Among the items taken from Burke’s SUV was his gun belt, several magazines of ammunition, a box of cigars, a humidor, and a canvas bag that contained toiletries, clothing, and other items.
Burke was permitted to enter the Loeb residence and retrieve the canvas bag and several other articles, even as the search was underway. He then drove to the SCPD’s 4th Precinct in Smithtown where detectives had begun interrogating Loeb. Burke entered the interrogation room where Loeb was handcuffed and chained to an eyebolt fastened to the floor. Burke then punched and kicked Loeb in the head and body.
Subsequently, Burke and others pressured the detectives who witnessed the assault to conceal the event. Those efforts continued even after the FBI and the U.S. Attorney’s Office opened an investigation of the assault in 2013. In one instance, Burke summoned detectives under his command to SCPD headquarters in Yaphank, New York, to persuade the detectives to agree to a false version of events that would conceal the assault. In October 2013, one of those detectives testified falsely under oath in a state pretrial hearing in the Loeb prosecution, denying that Loeb had been assaulted.
The guilty plea proceeding was held before United States District Judge Leonard D. Wexler.
The government’s case is being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorneys Lara Treinis Gatz and John J. Durham are in charge of the prosecution, assisted by EDNY Investigator William Hessle.
The Defendant:
JAMES BURKE
Age: 51
Smithtown, New YorkE.D.N.Y. Docket No. 15-CR-627 (LDW)
Former Puerto Rico Police Officer Found Guilty by A Jury for Conspiracy to Deprive A Person of Civil RightsRead the Press Release
SAN JUAN, P.R. – On February 26, 2016, former Puerto Rico Police Officer Francisco Martinez-Mercado was found guilty of Conspiracy to Deprive a Person of his Civil Rights, announced United States Attorney Rosa Emilia Rodríguez-Vélez. United States District Judge Francisco A. Besosa presided over the trial.
On September 15, 2015 a federal grand jury returned a one-count indictment charging Martinez-Mercado for the offense committed on or about September 23, 2010, when the defendant did conspire, combine, confederate and agree to injure, oppress, threaten and intimidate a known individual in the exercise of a right, secure and protected by the Constitution of the United States, to be free from unreasonable searches and seizures by those acting under color of law, by agreeing to unreasonably search and seize property of the known individual located in Puerto Rico. At the time of the offense, Francisco Martinez-Mercado was a police officer with the Police of Puerto Rico (POPR) assigned as a Task Force Officer to the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
During the five-day trial, the government presented evidence proving that on September 23, 2010, defendant hired corrupt police officers and other individuals to break into a home and steal property.
“Corrupt public employees undermine the fabric of our nation’s security, our overall safety, the public trust and confidence in those chosen to protect and serve,” said Rosa Emilia Rodríguez Vélez, U.S. Attorney for the District of Puerto Rico. “The corruption and negligence uncovered in this case cannot and will not be tolerated. We will continue to investigate and prosecute these types of schemes.”
The case was prosecuted by Assistant U.S. Attorney Mariana Bauzá, Deputy Chief of the Narcotics Unit and Assistant U.S. Attorney Teresa Zapata. The defendant faces a maximum penalty of up to 10 years in prison. The sentencing hearing was scheduled for May 26, 2016. The case was investigated by the FBI’s San Juan Division with the assistance of the U.S. Department of Justice Office of the Inspector General Miami Field Office.Former Police Officer Sentenced to 18 Years in Prison on Child Pornography and Sexual Abuse ChargesRead the Press Release
WASHINGTON - Darrell Best, 46, a former member of the Metropolitan Police Department (MPD), was sentenced today to 18 years in prison after earlier pleading guilty to one count of production of child pornography, one count of first-degree sexual abuse of a minor, and one count of second-degree sexual abuse of a minor, announced U.S. Attorney Channing D. Phillips and Cathy L. Lanier, Chief of the Metropolitan Police Department.
Best pled guilty in October 2015 in the U.S. District Court for the District of Columbia. The plea agreement, which was contingent upon the Court’s approval, called for the 18-year prison sentence. The Honorable Reggie B. Walton accepted the plea today and sentenced Best accordingly. Following his prison term, Best will be placed on supervised release for the rest of his life. He also will be required by law to register as a sex offender for the remainder of his life.
In addition to working as a police officer, Best was the head pastor of a church in Southeast Washington. The sexual abuse charges stem from incidents involving two minor females who knew and trusted him through the church. Best pled guilty to second-degree sexual abuse of a minor based on his sexual abuse of one of the girls on Dec. 3, 2014 at MPD Headquarters. He pled guilty to first-degree sexual abuse of a minor based on his sexual abuse of the other girl on Feb. 14, 2015 while inside the church.
On March 14, 2015, after one of the girls told her parents about the abuse, the Metropolitan Police Department’s Youth Division began investigating the case. Best was arrested two days later and has been in custody ever since.
Following Best’s arrest, investigators obtained a search and seizure warrant from the Superior Court of the District of Columbia for Best’s cellular phone. A forensic examination of the phone revealed seven images depicting child pornography, which Best had produced using one of the victims.
“As a police officer and church pastor, Darrell Best was entrusted by the community to help people in need, not exploit them,” said U.S. Attorney Phillips. “He betrayed the trust placed in him by the two young victims in this case, causing great harm to them and their families. This sentence holds him appropriately accountable for his predatory and criminal conduct.”
“I am hopeful the sentencing today provides some measure of comfort for these victims and their families,” said Chief Lanier. “Mr. Best used the trust he had built within the community, as a pastor and a police officer, to take advantage of those who relied on him.”
In announcing the sentence, U.S. Attorney Phillips and Chief Lanier commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the FBI’s Washington Field Office. In addition, they acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Criminal Investigator John Marsh; Paralegal Specialist Donhue Troy Griffith, and Victim/Witness Advocate Lezlie Richardson. Finally, they commended the work of Assistant U.S. Attorneys Sarah D. McClellan and Lindsay Suttenberg, who investigated and prosecuted the case.
Former Officer with Federal Immigration Agency Found Guilty of Accepting Bribes in Large-Scale Immigration Fraud SchemeRead the Press Release
SANTA ANA, California – A former Senior Immigration Services Officer with the United States Citizenship and Immigration Services (USCIS) has been found guilty of accepting bribes in a long-running immigration fraud scheme.
Jesus Figueroa, 69, of Tujunga, was found guilty yesterday afternoon of one count of conspiracy to commit bribery and to impede the lawful function of government immigration agencies. Figueroa was also convicted of four counts of accepting bribes and three counts of fraudulently misusing his official USCIS seal.
United States District Judge Andrew Guilford, who presided over a six-day trial, is scheduled to sentence Figueroa on June 6, at which time the defendant will face a statutory maximum penalty of 80 years in federal prison.
The evidence at trial showed that Figueroa accepted bribes from a Los Angeles attorney in exchange for approving immigration applications regardless of whether the immigrants applying were entitled to immigration benefits, including lawful permanent residence status.
The attorney who paid the bribes – Kwang Man “John” Lee, 50, of Rancho Cucamonga – pleaded guilty in January 2015 to three counts of bribing a public official and is scheduled to be sentenced in September.
Figueroa and Lee had known each other for years, and both worked together at the agency then known as the Immigration and Naturalization Service (INS), where they oversaw the issuance of immigration benefits, including “Green Cards” and citizenship. In 1999, Lee left the INS and became a lawyer in private practice. Figueroa stayed with the INS, part of which became USCIS with the creation of the Department of Homeland Security. Figueroa continued to review applications for immigration benefits.
“Lee’s law practice became primarily immigration related and he began engaging in fraud and bribery in order to obtain immigration benefits for his clients,” according to court documents. “The public officials Lee would bribe in order to obtain immigration benefits for his clients were primarily the individuals he knew while working for INS,” including Figueroa.
Lee and recruiters working for him would tell foreign national clients that Lee could obtain immigration benefits, such as legal permanent resident status, in exchange for fees that ran as high as $50,000. In some cases, Lee and his recruiters arranged sham marriages for aliens to make it appear that they were entitled to immigration benefits. Figueroa, when reviewing petitions from aliens in sham marriages, knew the marriages were bogus and, because he had taken bribes from Lee, approved the applications for legal permanent residence.
“Defendant betrayed his oath to the United States by selling his services and allowing aliens to improperly reside in the United States,” said United States Attorney Eileen M. Decker. “As this case demonstrates, public officials who are more concerned with illicit profit than upholding the law will lose their positions and face prosecution.”
Figueroa was found guilty of conspiracy, which carries a statutory maximum penalty of five years in federal prison; four counts of bribery, each one of which carries a statutory maximum penalty of 15 years in prison; and three counts of fraudulently misusing his official USCIS seal, each one of which carries a maximum statutory sentence of five years.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Office of Professional Responsibility and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, which received substantial assistance from U.S. Customs and Border Protection, Office of Internal Affairs; the Department of Homeland Security, Office of Inspector General; U.S. Citizenship and Immigration Services, Office of Security and Integrity; and the Los Angeles County Sheriff’s Department.
Former Ochsner Clinic Credit Union Manager Pleads Guilty to Stealing over One Million DollarsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JACQUELINE RAY, 60, of Biloxi, Mississippi, pled guilty as charged today to a Bill of Information which charged her with one count of stealing over one million dollars from Ochsner Clinic Federal Credit Union in connection with bank larceny during her employment there.
According to the Bill of Information, RAY was employed by Ochsner Clinic Federal Credit Union (OCFCU), as the credit union manager and had been employed at OCFCU for nearly thirty years. From 2007 to 2013, RAY stole at least one million dollars by creating numerous fictitious loans on the books of OCFCU. RAY created approximately 149 fictitious loans.
No loan documentation existed on any of the fictitious loans. RAY controlled the day-to-day operation of OCFCU. These fictitious accounts were all coded in the OCFCU data processing system so that no statement of account would be generated, thus hiding RAY’S fraudulent scheme
The proceeds from the fictitious loan would be stolen from the OCFCU in the form of a check drawn on the OCFCU and deposited in accounts controlled by RAY, or converted to cash.
RAY also made false deposits into a local bank to make it appear that she had money in accounts she controlled, when she really did not. RAY would steal cash from these falsely inflated accounts.
RAY faces a possible maximum sentence of ten years imprisonment, and/or a fine of $250,000 and up to three years of supervised release, as well as restitution for the money taken.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the National Credit Union Administration in investigating this matter. Assistant United States Attorney Carter K. D. Guice, Jr. of the Fraud Unit is in charge of the prosecution.
Former Haughton bank employee sentenced for embezzling $1.7 millionRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Haughton bank employee was sentenced Thursday to 42 months in prison for embezzling more than $1.7 million from the bank where he worked.
Jim Scott, 65, of Haughton, La., was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of embezzlement. He was also sentenced to three years of supervised release and ordered to pay $1,794,156.20 restitution. According to evidence presented at the August 7, 2015 guilty plea, Scott embezzled funds from 2000 to 2014 while employed as vice president of operations at Tri-State Bank and Trust in Haughton. The defendant had moved bank-controlled funds from the bank’s general fund to his personal checking account and savings accounts located at the same bank, which caused a $1,794,156.20 loss to the bank.
The U.S. Secret Service conducted the investigation. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.
Former Elkton Man Sentenced to Nine Years in Prison for Distribution of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Micheal Jordon, age 35, formerly of Elkton, Maryland, to nine years in prison, followed by lifetime supervised release, for distribution of child pornography. Judge Hollander also ordered that Jordon must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, on January 21, 2014, Jordon engaged in a private chat with an undercover FBI agent who was working in a chat room known to promote incest. Jordon and the undercover agent discussed Jordon’s interest in young girls, and continued their conversation on an instant messaging application and through text messages. Jordon ultimately sent the undercover officer videos and images of prepubescent females engaged in sexually explicit conduct with adult men.
On February 10, 2014, a search warrant was executed at Jordon’s residence and seized two laptop computers and two external hard drives, as well as other digital media. A forensic examination of the seized material showed Jordon to be in possession of more than 600 images of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney P. Michael Cunningham, who prosecuted the case.
Former Corporate Executives of Samarion, Inc. Sentenced for Conspiracy to Defraud InvestorsRead the Press Release
Jackson, Miss – Mark E. Rodgers, 53, currently from Houston, Texas, the former Chief Executive Officer and President of Samarion Solutions, Inc., in Ridgeland, Mississippi, was sentenced today by U.S. District Judge Daniel P. Jordan III to 60 months in federal prison followed by three years of supervised release for his participation in a securities fraud conspiracy, announced U.S. Attorney Gregory K. Davis, FBI Special Agent in Charge Don Alway, and Joseph Borg, Director of the Alabama Securities Commission. A forfeiture of $312,063.70 in the form of a money judgment was also ordered.
Samer N’Ser, 54, of Ridgeland, the former Chief Technology Officer of Samarion Solutions, Inc., was also sentenced today by U.S. District Judge Daniel P. Jordan III. N’Ser was ordered to serve 37 months in federal prison followed by three years of supervised release for his participation in the conspiracy. A forfeiture of $100,000 in the form of a money judgement was ordered.
Rodgers and N’Ser were ordered to pay $14,884,389.35, jointly and severally, in restitution to defrauded investors.
Beginning in 2006 and continuing until approximately October, 2009, Rodgers and N’Ser conspired to intentionally mislead Samarion, Inc., investors in Mississippi, Alabama and elsewhere. During that time, Samarion, Inc., formerly known as Valence Broadband, Inc., was a corporation operating out of Madison County, Mississippi. The business plan of the company was to produce a viable monitoring system, commonly referred to as the "Samarion Solution", for installation in nursing homes, and elsewhere, that could predict when a patient might fall, and prevent abuse and/or neglect by staff, and improve the over-all care of nursing home patients. Rodgers and N’Ser engaged in a course of business which operated as a fraud and deceit upon the purchasers of the stock, using wire communications and the U.S. Mail to further that activity.
Both Rodgers and N’Ser were involved in the offer and sale of stock to investors and conspired to fraudulently misrepresent to potential investors material facts that would affect their decision to invest, including the financial strength of the company and the true functionality and capacity of the product, among other things. Rodgers and N’Ser sold stock to investors representing that the investment funds would be used solely for the business purposes of the company, and instead used some of the money for their own personal benefit, including personal loans to each, an unauthorized bonus for Rodgers, and the purchase of a 2007 Land Rover SUV titled in Rodgers name. N’Ser and Rodgers fraudulently used Samarion investor funds to loan approximately $500,000 to C First Class Corporation, a company that was unrelated to Samarion or its business purpose, but for which Rodgers also served as a board member. Rodgers fraudulently concealed his personal interest in that company from the Samarion Board of Directors.
"Rodgers and N’Ser convinced approximately 300 clients to invest millions of dollars in their company through fraud and deceit," said U.S. Attorney Gregory K. Davis. "The United States Attorney’s Office will continue to work with federal, state and local investigative agencies to pursue and prosecute those who seek to defraud investors and damage the marketplace." U.S. Attorney Davis praised the work of the FBI, the Alabama Securities Commission, Madison County, Alabama, District Attorney’s Office, and the Madison County, Alabama, Sheriff’s Department.
"Those who illegally use their insider position for personal financial gain threaten the stability and confidence of our financial systems here in Mississippi and throughout the United States," said Don Alway, Special Agent in Charge of the FBI in Mississippi. "Unfortunately, there are likely many more of these kinds of cases out there. Rest assured, the FBI in Mississippi will aggressively investigate these violations."
Joseph Borg, Director of the Alabama Securities Commission said, "I want to thank the Office of Greg Davis, United States Attorney for the Southern District of Mississippi; the Federal Bureau of Investigation; the Office of Robert L. Broussard, Madison County, Alabama District Attorney; the Madison County, Alabama Sheriff’s Department and the Alabama Securities Commission staff for working together to ensure this conviction and to see that justice was served for the victims. The successful prosecution demonstrates the outstanding results that are achieved when federal, state and local law enforcement work together."
This case was prosecuted by Assistant United States Attorney Carla J. Clark, Chief of the Criminal Division. It was investigated by the FBI with assistance from the Alabama Attorney General’s Office and the Alabama Securities Commission.
Former Bank Employees Sentenced for Making False EntriesRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced today in federal court, Chief United States District Judge James C. Dever, III, sentenced APRIL LYNN LOCKLEAR, 36, of Rowland, North Carolina, to 24 months’ imprisonment, followed by 3 years of supervised release. LOCKLEAR was also ordered to pay $500,000 in restitution, jointly and severally, with CHONA KAY OXENDINE, 32, of Shannon, North Carolina. OXENDINE was sentenced to 30 months’ imprisonment, followed by 3 years of supervised release.
On March 24, 2015, LOCKLEAR and OXENDINE were indicted by a federal grand jury on 16 counts related to crimes committed while they were employed by the Lumbee Guaranty Bank headquartered in Pembroke, North Carolina. As a result of a robbery of the branch in Red Springs, North Carolina, on April 9, 2010, an internal audit was conducted and revealed that $500,000 was missing, in addition to the money stolen during the bank robbery.
On November 23, 2015, LOCKLEAR and OXENDINE pled guilty to conspiring to make false entries in bank records.
The investigation of this case was conducted by the Federal Bureau of Investigations. Assistant United States Attorney Felice McConnell Corpening represented the government.
Florence Man Sentenced for Smuggling and Distributing Prescription DrugsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles announced today that Florence resident Willard Lester “Les” Willard, age 51, was sentenced for his role in an international conspiracy to smuggle and distribute approximately $600,000 in prescription drugs in violation of the Food, Drug and Cosmetic Act. United States District Court Judge Bruce Howe Hendricks sentenced Willard to 12 months home confinement and 5 years probation.
Beginning in 2010, Willard ran a fulfillment center for foreign drug companies that illegally sold unapproved pharmaceutical drugs to U.S. residents. He also sold unapproved prescription drugs to U.S. customers through a website, www.click1market.com, that he maintained and controlled. Willard shipped more than 10,000 packages containing the smuggled drugs.
“The safety of the U.S. pharmaceutical drug supply is of critical importance,” said Nettles. “The proliferation of illegal online pharmacies means that individuals like this defendant are putting Americans at risk by selling drugs of unknown quality and efficacy in the interest of profit. This is not merely a regulatory crime and we will not treat it as such.”
The case was investigated by Special Agents with the Food and Drug Administration’s Office of Criminal Investigation, working with Homeland Security Investigations and Inspectors with the United States Postal Inspection Service. Assistant United States Attorney Eric Klumb is prosecuting the case.
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Federal Jury Convicts Arizona Man of Conspiracy and Possession with Intent to Distribute MethamphetamineRead the Press Release
BISMARCK - U. S. Attorney Christopher C. Myers announced that on Feb. 25, 2016, Rocky Thomas Mayfield, 31, from Goodyear, AZ., was found guilty following a three-day trial for Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine; two counts of Possession with Intent to Distribute Methamphetamine; and one count of Possession of a Firearm by a Convicted Felon.
In early 2015, Mayfield and his associates arranged for the delivery of methamphetamine from Arizona to the Williston, North Dakota, area. On Feb. 11, 2015, law enforcement officials conducted a traffic stop near Berthold, ND, where they discovered approximately one pound of methamphetamine in a car that Mayfield had rented. After executing a search warrant at a hotel in Minot, law enforcement officials discovered another ten pounds of methamphetamine, which was believed to be the largest methamphetamine seizure ever in the state of North Dakota. If sold by the ounce, it would have an approximate street value of $200,000-350,000.
A sentencing hearing has yet to be scheduled.
The case was investigated by the Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Berthold Police Department, as well as members of the Ward County Narcotics Task Force, which includes law enforcement officials from the North Dakota Bureau of Criminal Investigation, the Ward County Sheriff’s Department, and the U.S. Border Patrol.
The case was prosecuted by Assistant U. S. Attorney David Hagler and Special Assistant U.S. Attorney Jeremy Ensrud.
Federal Court Permanently Enjoins Eastern Washington Dental Care Provider and Its Owners from Accruing Payroll Tax LiabilitiesRead the Press Release
A federal court in Spokane, Washington has ordered that James Hood, a dentist, and Karen Hood, his wife, ensure that their businesses timely file payroll tax returns and pay payroll taxes, the Department of Justice announced today.
U.S. District Court Judge Rosanna Malouf Peterson for the Eastern District of Washington entered a permanent injunction requiring Dental Care Associates of Spokane Valley, P.S.; Dr. James G. Hood Family Dentistry, aka Spokane Valley Dental Care, aka James G. Hood Family Dentistry, P.S.; Dr. James G. Hood, D.D.S., M.A., P.S., aka James G. Hood D.D.S., P.S., aka James G. Hood D.D.S., M.A., P.S.; Dr. James G. Hood, D.D.S., P.S.; Karen Jean Matsko Hood as Trustee of the Hood Family Trust; Whispering Pine Press, Inc.; James G. Hood and Karen J. Hood, to timely file payroll tax returns and pay any payroll taxes that accrue. Additionally, James and Karen Hood must notify the Internal Revenue Service (IRS) if they start to operate a new business.
According to the United States’ amended civil complaint, the various entities have repeatedly failed to timely file payroll tax returns or pay payroll taxes. Moreover, James and Karen Hood have frustrated payroll tax enforcement by continually abandoning old entities and creating new ones. The district court held that James and Karen Hood had admitted the facts in the complaint by failing to file an answer after the court ordered them to do so. The permanent injunction entered by the court requires the defendants to stay current on their federal employment tax obligations.
Acting Assistant Attorney General Caroline D. Ciraolo of the Tax Division thanked the revenue officer of IRS Field Collection for investigating and preparing the civil case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Farmington Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Kenneth Verzani, 63, of Farmington, N.M., pleaded guilty yesterday in federal court in Albuquerque, N.M., to a methamphetamine trafficking charge under a plea agreement with the U.S. Attorney’s Office. The guilty plea was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso, Texas, and Commander Phil Goodwin of the Region II HITDA Narcotics Task Force.
Verzani was arrested in Nov. 2015, on a five-count indictment charging him with methamphetamine trafficking offenses. According to the indictment, Verzani distributed methamphetamine on five occasions between May 3, 2015 and June 10, 2015, in San Juan County, N.M. The indictment included forfeiture allegations requiring Verzani to forfeit $4,260, proceeds of the drug trafficking charged, to the United States.
During yesterday’s proceedings, Verzani pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Verzani admitted selling quantities of methamphetamine to an undercover officer on the following dates: 56 grams on May 5, 2015; 28 grams on May 28, 2015; 56 grams on June 2, 2015; and 56 grams on June 7, 2015.
In his plea agreement, Verzani admitted that the drug deals took place in his vehicle or his residence. Verzani also admitted that on June 10, 2015, officers seized 1.29 kilograms (2.8 pounds) of methamphetamine from his residence. The plea agreement states that Verzani obtained the methamphetamine from his regular source of supply with the intention of distributing the drugs to the six or seven small-time methamphetamine dealers with whom he regularly dealt.
At sentencing, Verzani faces a statutory maximum penalty of 20 years in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of Homeland Security Investigations and the HIDTA Region II Narcotics Task Force. Assistant U.S. Attorney George C. Kraehe is prosecuting the case.
The HIDTA Region II Narcotics Task Force is comprised of officers and investigators from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department and Aztec Police Department, and is part of the High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Fact Sheet: The Health Care Fraud and Abuse Control Program Protects Conusmers and Taxpayers by Combating Health Care FraudRead the Press Release
The Affordable Care Act Has Helped the Government Fight Fraud, Strengthen Health Insurance Programs, Protect Consumers, and Save Taxpayer Dollars
The Obama Administration is committed to reducing fraud, waste, and abuse across the government. Since 2010, the U.S. Department of Health & Human Services, Office of Inspector General (HHS OIG), the Centers for Medicare & Medicaid Services (CMS), and the U.S. Department of Justice (DOJ) have been using powerful, new anti-fraud tools to protect Medicare and Medicaid by shifting from a “pay and chase” approach toward fraud prevention. Through the groundbreaking Healthcare Fraud Prevention Partnership, stronger relationships have been built between the government and the private sector to help protect all consumers.
These focused efforts are successful. In Fiscal Year (FY) 2015, the government recovered $2.4 billion as a result of health care fraud judgements, settlements and additional administrative impositions in health care fraud cases and proceedings. Since its inception in 1997, the Health Care Fraud and Abuse Control (HCFAC) Program has returned more than $29.4 billion to the Medicare Trust Funds. In this past fiscal year, the HCFAC program has returned $6.10 for each dollar invested.
The Health Care Fraud Prevention and Enforcement Action Team (HEAT), a joint initiative between HHS, OIG, and DOJ, has played a critical role in the fight against health care fraud.
A key component of HEAT is the Medicare Fraud Strike Force – an interagency task force teams comprised of OIG and DOJ analysts, investigators, and prosecutors who target emerging or migrating fraud schemes, including fraud by criminals masquerading as health care providers or suppliers.
Since 2007, the Medicare Fraud Strike Force has charged over 2,536 individuals involved in more than $8 billion in fraud. Many of these charges have resulted from coordinated, multi-district national takedowns. In June 2015, the Medicare Fraud Strike Force conducted its largest ever nationwide health care fraud takedown, which, for the first time, involved non-Strike Force participants and resulted in charges against a record 243 individuals for approximately $712 million in false Medicare and Medicaid billing. Since its inception, the Medicare Fraud Strike Force has maintained a conviction rate of approximately 95 percent and an average term of incarceration of more than four years.
Another powerful tool in the effort to combat health care fraud is the federal False Claims Act. In 2015, DOJ obtained over $1.9 billion in settlements and judgments from civil cases involving fraud and false claims against federal health care programs such as Medicare and Medicaid. Since January 2009, DOJ has recovered more than $17.1 billion for the federal government in cases involving health care fraud. In many of these cases, the department was instrumental in recovering additional billions of dollars for state health care programs.
Other steps the administration has taken to fight fraud include:
State-of-the-Art Fraud Detection Technology: HCFAC funding also supported HHS OIG’s continued enhancement of data analysis capabilities for detecting health care fraud. HHS OIG continues to use data analysis, predictive analytics, trend evaluation, and modeling approaches to better analyze and target oversight of HHS programs. Analysis teams use data to examine Medicare claims for known fraud patterns, identify suspected fraud trends, and calculate ratios of allowed services as compared to national averages; new analytic tools and methods are being developed to perform more innovative and complex data analytics. Combining the expertise of HHS OIG agents, auditors, and evaluators, as well as our HEAT partners, with data analytics and traditional investigative skills has fostered a highly effective model for fighting health care fraud.
Since June 2011, CMS uses the Fraud Prevention System (FPS) on all Medicare fee-for-service claims on a streaming, national basis. Similar to the fraud detection technology used by credit card companies, FPS applies predictive analytics to claims before making payments in order to identify aberrant and suspicious billing patterns. CMS uses leads generated by FPS to trigger actions that can be implemented swiftly. Early results from FPS show significant promise. Since 2011 the FPS identified savings (certified by HHS OIG) associated with these prevention and detection actions were $820 million.[1] This resulted in more than a 10-to-1 return on investment for the first three years of implementation.
Enhanced Provider Screening and Enrollment Requirements: Provider enrollment is the gateway to billing the Medicare program, and CMS implemented new critical safeguards in efforts to better screen providers enrolling in the Medicare program. The Affordable Care Act required CMS to revalidate all existing 1.6 million Medicare suppliers and providers under new risk-based screening requirements. As a result of revalidation and other proactive initiatives, CMS deactivated more than 500,000 enrollments meaning, billing privileges were stopped for these providers but may be restored upon the submission and approval of an updated enrollment application. CMS also revoked more than 34,000 enrollments meaning, these providers were barred from re-entering the Medicare program for one to three years. These enhanced screening and enrollment requirements have led to more than $2.4 billion in estimated Medicare savings since 2010.
In May 2014, CMS issued a final rule that requires prescribers of Part D drugs to enroll in Medicare and undergo screening. In December 2014, CMS issued a final rule that provides additional authority to remove bad actors from the Medicare program, including providers affiliated with outstanding Medicare debts and providers that have a pattern or practice of abusive billing.
Health Care Fraud Prevention Partnership (HFPP): The Obama Administration has joined with private insurers, states, and associations in the HFPP to prevent health care fraud on a national scale. To detect and prevent payment of fraudulent billings, HFPP participants exchange information and best practices across the public and private sectors. Since 2013, the HFPP has conducted eight studies that enabled partners, including DOJ, HHS-OIG, FBI, and CMS, states, private plans, and associations to take substantive actions, such as payment system edits, revocations, and payment suspensions to stop fraudulent payments and improve the government’s collective forces against fraud, waste, and abuse.
Senior Medicare Patrols: The Obama Administration has expanded funding for Senior Medicare Patrols (SMP) – groups of volunteers who educate and empower their peers to identify, prevent, and report health care fraud. In 2014, the SMP projects had a total of 5,249 active volunteers. These volunteers conducted 202,862 one-on-one counseling sessions and 14,692 group education sessions. In total, 452,714 beneficiaries attended these group education sessions. The projects also reported conducting 110,615 media airings (e.g., print, radio, television, or electronic) to provide education about fraud and the services of the project. Additionally, the projects reported conducting 12,417 community outreach education events. Local SMP offices provide assistance when issues are identified, ensuring that mistakes are corrected and suspected fraud is referred to the appropriate authorities. Since the program’s inception 18 years ago, $122 million in total estimated savings to Medicare and Medicaid is attributable to SMP projects.
[1] Note that a portion of the total FPS savings is comprised of payments prevented due to provider revocations. This amount is a subset of the $2.4 billion total prevented payments from revocations reported in section 'Enhanced Provider Screening and Enrollment Requirements' of this report. Therefore, comparison of these two metrics may result in double-counting.
District Man Sentenced to 30 Months in Prison for Robbing Pedestrians with a BB-GunRead the Press Release
WASHINGTON – Kyree Black, 18, of Washington, D.C., was sentenced today to 30 months in prison for robbing pedestrians with a BB-gun last fall in a Capitol Hill neighborhood, U.S. Attorney Channing D. Phillips announced.
Black pled guilty in December 2015, in the Superior Court of the District of Columbia, to two counts of robbery and one count of receiving stolen property. The Honorable Anita Josey-Herring sentenced him to a total of 48 months in prison, but suspended 18 of the months on the condition that he successfully complete three years of supervised release.
According to the government’s evidence, Black robbed three men in the Capitol Hill neighborhood near Nationals Park in Southeast Washington. On Oct. 21, 2015, at approximately 9 p.m., he approached the first victim, who was walking down the sidewalk in the unit block of L Street SE, displayed a gun, and demanded his cell phone. Fifteen minutes later, and one block away, in the unit block of K Street SE, the defendant found his next victim, who he also approached and robbed of a cell phone at gunpoint. Then, on Oct. 23, 2015, at about 9:15 p.m., Black again approached a person on the sidewalk in the 900 block of New Jersey Avenue SE, displayed a gun, and robbed the victim of a laptop and a cell phone. The last robbery was witnessed by an off-duty police officer and the defendant was immediately apprehended.
The phones from all three victims were found in Black’s pockets, together with a BB-gun that resembled a semi-automatic firearm. Each of the victims had relinquished their property because they feared for their lives.
At the sentencing hearing, one victim described the robbery as a “terrible event” and he specifically thanked officers from the Metropolitan Police Department (MPD) for “the police support I received after this event.”
In announcing the sentence, U.S. Attorney Phillips commended the work of the First District Detectives Division, crime scene officers, and the patrol officers in both the First and Seventh Police Districts of the Metropolitan Police Department. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Jennifer Allen of the Victim Witness Unit. In addition, he commended the work of Assistant U.S. Attorneys Dineen A. Baker and Douglas Klein, who investigated and prosecuted the case.
District Man Sentenced to 18 Years in Prison for Murder of Cousin in Northeast WashingtonRead the Press Release
WASHINGTON – Roosevelt Robinson, 67, of Washington, D.C., was sentenced today to 18 years in prison on a charge of second-degree murder while armed stemming from the shooting death last summer of his cousin, U.S. Attorney Channing D. Phillips announced.
Robinson pled guilty to the charge in December 2015 in the Superior Court of the District of Columbia. He was sentenced by the Honorable Michael Ryan. Following his prison term, Robinson will be placed on five years of supervised release.
According to the government’s evidence, on Friday, Aug. 21, 2015, at approximately 10:35 a.m., Robinson rode his bicycle to the house of his cousin, Loretta Carswell, 63, in the 3700 block of 18th Street NE. He confronted Ms. Carswell outside, accusing her of stealing a ring from him that he intended to give to his daughter. This was an ongoing accusation based on a time when Ms. Carswell safeguarded some of Robinson’s valuables. Every time this issue had been raised, Ms. Carswell denied knowing what Robinson was talking about.
When Robinson confronted Ms. Carswell on Aug. 21, 2015 and asked her about the ring, Ms. Carswell said she did not have it and gave Robinson a look that he interpreted as dismissive. Robinson told her: “Girl, you know I should kill you for doing what you did.” Ms. Carswell responded by saying, “You can go ahead and kill me if you want to, I done told you I don’t have your ring.” At that point, Robinson pulled out a Ruger .357-caliber Magnum revolver and shot Ms. Carswell one time in the head in front of her home. The bullet entered her forehead.
Immediately after the shooting, Robinson rode his bicycle down the street to his home in the 3600 block of 18th Street NE. Robinson barricaded himself inside until the Metropolitan Police Department (MPD) was able to arrest him approximately 30 hours later. In an interview with the police, Robinson confessed to shooting his cousin in the head.
In announcing the sentence, U.S. Attorney Phillips commended the work of the detectives of the Criminal Investigations Division Homicide Branch, crime scene officers, and the Fifth Police District of the Metropolitan Police Department. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Marcia Rinker of the Victim/Witness Assistance Unit and Paralegal Specialist Vanessa Trent-Valentine. He also praised the efforts of Assistant U.S. Attorney Christine Macey, who investigated and prosecuted the case.
District Court Enters Permanent Injunction to Prevent Florida Man from Distributing Unapproved Herpes CureRead the Press Release
The U.S. District Court for the Middle District of Florida entered a consent decree of permanent injunction against James R. Hill, of Ocala, Florida, to prevent the distribution of unapproved drugs masquerading as a cure for the herpes virus, the Department of Justice announced today.
The department filed a complaint in the U.S. District Court for the Middle District of Florida alleging that Hill sold a product, Viruxo Immune Support (Viruxo), that he marketed as a “natural herpes medicine” that can “Stop Herpes Outbreaks.” Although labeled as a dietary supplement, Viruxo qualifies as an unapproved and misbranded drug, according to the complaint, because of Hill’s claims that it could treat the herpes virus despite the absence of approval from the Food and Drug Administration (FDA) that it was safe and effective for such a use.
The complaint further alleged that Hill defrauded consumers by promoting Viruxo to cure, mitigate, treat, or prevent a disease despite the absence of well-controlled clinical studies or other credible scientific substantiation to support those claims. Hill made his misleading claims about Viruxo despite having received a warning letter from FDA and the Federal Trade Commission advising him that his product is an unapproved drug and was misbranded.
“Unfortunately, many dietary supplements cannot do what their sellers claim they can do,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “In some instances, consumers might be choosing supplements over other proven therapies for serious conditions under the mistaken belief that these products can help. The Department of Justice will continue to work aggressively with FDA to prevent the distribution of unapproved drugs.”
“Consumers should exercise extreme caution when purchasing supplements online,” warned U.S. Attorney A. Lee Bentley, III for the Middle District of Florida. “Viruxo was marketed to consumers as a ‘medicine’ for herpes, even though this product was not approved by the FDA and there were no well-controlled clinical studies to support the therapeutic claims.”
“Products being sold as treatments for which they have not been studied or approved defrauds consumers and can cause harm if proper treatment is delayed,” said Associate Commissioner Melinda Plaisier for FDA regulatory affairs. “When a company refuses to comply with regulations, we will take enforcement action to protect the public.”
Hill agreed to settle the case and be bound by a consent decree of permanent injunction. Although he has ceased selling Viruxo, the consent decree requires him to notify FDA and receive its permission before resuming sale of Viruxo or distribution of any food, including a dietary supplement, or drug. To obtain permission from FDA, FDA must first determine that Hill’s practices comply with the Federal Food, Drug and Cosmetic Act.
The government is represented by Trial Attorney Daniel E. Zytnick of the Civil Division’s Consumer Protection Branch and Lacy R. Harwell Jr. of the U.S. Attorney’s Office for the Middle District of Florida, with the assistance of Senior Counsel Claudia J. Zuckerman of the Department of Health and Human Services’ Office of General Counsel – Food and Drug Division.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Middle District of Florida, visit its website at http://www.justice.gov/usao-mdfl.
District Court Enters Permanent Injunction to Prevent Florida Man from Distributing Unapproved Herpes CureRead the Press Release
Tampa, FL – The U.S. District Court for the Middle District of Florida entered a consent decree of permanent injunction against James R. Hill, of Ocala, Florida, to prevent the distribution of unapproved drugs masquerading as a cure for the herpes virus, the Department of Justice announced today.
The department filed a complaint in the U.S. District Court for the Middle District of Florida alleging that Hill sold a product, Viruxo Immune Support (Viruxo), that he marketed as a “natural herpes medicine” that can “Stop Herpes Outbreaks.” Although labeled as a dietary supplement, Viruxo qualifies as an unapproved and misbranded drug, according to the complaint, because of Hill’s claims that it could treat the herpes virus despite the absence of approval from the Food and Drug Administration (FDA) that it was safe and effective for such a use.
The complaint further alleged that Hill defrauded consumers by promoting Viruxo to cure, mitigate, treat, or prevent a disease despite the absence of well-controlled clinical studies or other credible scientific substantiation to support those claims. Hill made his misleading claims about Viruxo despite having received a warning letter from FDA and the Federal Trade Commission advising him that his product is an unapproved drug and was misbranded.
“Consumers should exercise extreme caution when purchasing supplements online,” warned U.S. Attorney A. Lee Bentley, III for the Middle District of Florida. “Viruxo was marketed to consumers as a ‘medicine’ for herpes, even though this product was not approved by the FDA and there were no well-controlled clinical studies to support the therapeutic claims.”
“Unfortunately, many dietary supplements cannot do what their sellers claim they can do,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “In some instances, consumers might be choosing supplements over other proven therapies for serious conditions under the mistaken belief that these products can help. The Department of Justice will continue to work aggressively with FDA to prevent the distribution of unapproved drugs.”
Hill agreed to settle the case and be bound by a consent decree of permanent injunction. Although he has ceased selling Viruxo, the consent decree requires him to notify FDA and receive its permission before resuming sale of Viruxo or distribution of any food, including a dietary supplement, or drug. To obtain permission from FDA, FDA must first determine that Hill’s practices comply with the Federal Food, Drug and Cosmetic Act.
The government is represented by Trial Attorney Daniel E. Zytnick of the Civil Division’s Consumer Protection Branch and Lacy R. Harwell Jr. of the U.S. Attorney’s Office for the Middle District of Florida, with the assistance of Senior Counsel Claudia J. Zuckerman of the Department of Health and Human Services’ Office of General Counsel – Food and Drug Division.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Middle District of Florida, visit its website at http://www.justice.gov/usao-mdfl.
Denver Man Found Guilty Following Jury Trial of Interference with a Flight CrewRead the Press Release
DENVER – U.S. Attorney John Walsh and FBI Denver Division Special Agent in Charge Thomas Ravenelle announced that Joseph Wayne Lynch, II was found guilty this week following a three-day jury trial before U.S. District Court Judge Raymond P. Moore of interference with flight crew members and attendants. The jury deliberated for approximately 3 hours before reaching their guilty verdict. Lynch, who is free on bond, is scheduled to appear next for sentencing, which is scheduled for May 16, 2016.
According to evidence submitted during trial, as well as court documents, on August 4th, 2015, Joseph Wayne Lynch boarded U.S. Airways Flight 580 from Philadelphia to Denver. Having missed his previous connection, the airline upgraded Lynch to first class to accommodate the inconvenience. Because of his loud and odd behavior upon boarding, the lead flight attendant limited his alcohol intake. After the flight took off, he swapped seats to sit next to a young lady with whom he wanted to strike up a conversation. He became increasingly upset when the flight attendant denied him further alcoholic beverages, which made him disruptive and threatening. At numerous times during the flight the defendant also had inappropriate physical contact with the flight attendant, including placing his hand on the small of her back repeatedly, and finally grabbing her and kissing her neck. When instructed that his conduct was inappropriate, he then began a slew of profanities directed at flight attendants and passengers. Mr. Lynch was so loud that the plane’s captain heard his rants in the cockpit – over radio traffic and despite noise cancelling headphones. The flight attendants got an ice hammer, a pot of hot coffee, plastic handcuffs and alerted two able-bodied passengers to assist in the event that Mr. Lynch got even further out of hand. When confronted, Lynch responded by repeatedly stating, “Let’s go!” He then promised to bring the airline down. He also (falsely) claimed to be a former Green Beret / Special Forces, and he showed off his purported bullet wounds, along with a photo of his pot farm.
Normally the first class section requires only one flight attendant. Because of the defendant’s misconduct, a second flight attendant was in the first class section for half the flight for safety reasons. Lynch’s continued escalation of threats and inappropriate behavior eventually led to the Captain temporarily turning over flying duties of the aircraft to the first officer, lock-down the cockpit, and notify the airline of the situation and request law enforcement be present at the gate upon arrival. When Denver Police officers arrived, and later an FBI Special Agent, Lynch redirected his threats and anger towards them.
“As everyone who flies on airliners knows, a drunk, abusive passenger acting out against other passengers and the flight crew is not merely an inconvenience, but a serious threat to the safety of everyone on the flight,” said U.S. Attorney John Walsh. “This sort of boorish, abusive and threatening behavior will not be tolerated by the flight crew (and fellow passengers) and constitutes a federal crime that we will prosecute forcefully to protect the flying public. May this case serve as a warning to others.”
The defendant faces not more than 20 years in federal prison, and up to a $250,000 fine.
This case was investigated by the FBI with assistance from the Denver Police Department.
Lynch was prosecuted by Assistant U.S. Attorneys Jason St. Julien and Mark Pestal.
Daycare employee found guilty on child pornography chargesRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today the conviction of an Indianapolis man on seven counts of production and attempted production of child pornography. Ali Al-Awadi, 22, Indianapolis was found guilty after a four-day trial before U.S. District Judge Tanya Walton Pratt.
“The jury convicted Al- Awadi of the hideous and terrifying crime that he committed,” said Minkler. “Because of their decision, our community is a safer place to raise our children. This office will not hesitate to use the federal hammer in the most severe way possible against anyone who victimizes a child.”
Al-Awadi worked as a day care provider at Children’s Choice Learning Center at St. Vincent Hospital in Indianapolis. While caring for several children, he molested a four year old girl while she was napping and took several explicit photos of her on his cell phone. He took these images to later fuel his sexual fantasies.
According to Assistant United States Attorneys Kristina Korobov and Bradley Shepard who prosecuted this case for the government, Al-Awadi faces a minimum of 15 years and a maximum of life in prison. No future sentencing date has been set.
Court Accepts Pleas in Adulterated and Misbranded Cheese CasesRead the Press Release
PITTSBURGH - Two cheese companies and a cheese company executive pleaded guilty in federal court today to charges relating to their introduction of adulterated and misbranded cheese products into interstate commerce, U.S. Attorney David J. Hickton announced today.
Universal Cheese & Drying, Inc. and International Packing, LLC each pleaded guilty to one count of conspiring to introduce misbranded and adulterated cheese products into interstate commerce and to commit money laundering before U.S. District Judge Mark R. Hornak for the Western District of Pennsylvania. Each company also agreed to forfeit to the United States $500,000. Castle Cheese Company executive Michelle Myrter, 44, of Harmony, Pennsylvania, also pleaded guilty as a responsible corporate officer to one misdemeanor count of aiding and abetting the introduction of adulterated and misbranded cheese products into interstate commerce, in violation of provisions of the Federal Food, Drug and Cosmetic Act.
“The Department of Justice prosecutes people and companies who introduce adulterated or misbranded food into interstate commerce,” stated U.S. Attorney Hickton. “In this case, the fraud was perpetrated on consumers who purchased parmesan and romano cheeses that were inferior to what they believed they were buying.”
In connection with the guilty pleas, the court was advised that the corporate defendants packaged and sold cheese under various labels at the Castle Cheese facility in Slippery Rock, Pennsylvania. The cheese was distributed through retail, food service, and wholesale customers throughout the United States. The corporate defendants had knowledge of the Food and Drug Administration’s (FDA) regulations and standards of identity for parmesan and romano cheese products and were aware that the products did not conform to FDA standards of identity for real parmesan and romano cheese, but represented to customers that the products contained 100 percent real parmesan and romano cheese. The corporate defendants also knew that the cheese products were misbranded because they did not bear labels that accurately reflected the products’ ingredients. The corporate defendants likewise knew that the cheese products were also adulterated in that certain ingredients had been substituted or omitted and other ingredients had been added. The defendants used proceeds from the sale of the misbranded and adulterated cheese products to continue the operation of the cheese manufacturing and packaging at the Slippery Rock facility.
The adulterated romano and parmesan products were sold under several brand names, the owners of which were unaware of the fraud. The adulterated products are no longer available for sale. At no time did the adulterated products pose a threat to the health or safety of consumers.
Judge Hornak will set sentencing date at a later time. For the corporate defendants, the law provides for a fine of $500,000 for each defendant. For the individual defendant, the law provides for a total sentence of one year in prison, a fine of $100,000, 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 released Myrter on a personal recognizance bond.
Assistant U.S. Attorney Tonia Sulia Goodman is prosecuting these cases on behalf of the government.
Federal agents with the FDA’s Office of Criminal Investigations and the Internal Revenue Service (IRS)’s Criminal Investigation conducted the investigation that led to the prosecutions of Universal Cheese & Drying, Inc., International Packing, LLC and Michelle Myrter.
Court Accepts Pleas in Adulterated and Misbranded Cheese CasesRead the Press Release
Two cheese companies and a cheese company executive pleaded guilty in federal court today to charges relating to their introduction of adulterated and misbranded cheese products into interstate commerce, U.S. Attorney David J. Hickton announced today.
Universal Cheese & Drying, Inc. and International Packing, LLC each pleaded guilty to one count of conspiring to introduce misbranded and adulterated cheese products into interstate commerce and to commit money laundering before U.S. District Judge Mark R. Hornak for the Western District of Pennsylvania. Each company also agreed to forfeit to the United States $500,000. Castle Cheese Company executive Michelle Myrter, 44, of Harmony, Pennsylvania, also pleaded guilty as a responsible corporate officer to one misdemeanor count of aiding and abetting the introduction of adulterated and misbranded cheese products into interstate commerce, in violation of provisions of the Federal Food, Drug and Cosmetic Act.
“The Department of Justice prosecutes people and companies who introduce adulterated or misbranded food into interstate commerce,” stated U.S. Attorney Hickton. “In this case, the fraud was perpetrated on consumers who purchased parmesan and romano cheeses that were inferior to what they believed they were buying.”
In connection with the guilty pleas, the court was advised that the corporate defendants packaged and sold cheese under various labels at the Castle Cheese facility in Slippery Rock, Pennsylvania. The cheese was distributed through retail, food service, and wholesale customers throughout the United States. The corporate defendants had knowledge of the Food and Drug Administration’s (FDA) regulations and standards of identity for parmesan and romano cheese products and were aware that the products did not conform to FDA standards of identity for real parmesan and romano cheese, but represented to customers that the products contained 100 percent real parmesan and romano cheese. The corporate defendants also knew that the cheese products were misbranded because they did not bear labels that accurately reflected the products’ ingredients. The corporate defendants likewise knew that the cheese products were also adulterated in that certain ingredients had been substituted or omitted and other ingredients had been added. The defendants used proceeds from the sale of the misbranded and adulterated cheese products to continue the operation of the cheese manufacturing and packaging at the Slippery Rock facility.
The adulterated romano and parmesan products were sold under several brand names, the owners of which were unaware of the fraud. The adulterated products are no longer available for sale. At no time did the adulterated products pose a threat to the health or safety of consumers.
Judge Hornak will set sentencing date at a later time. For the corporate defendants, the law provides for a fine of $500,000 for each defendant. For the individual defendant, the law provides for a total sentence of one year in prison, a fine of $100,000, 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 released Myrter on a personal recognizance bond.
Assistant U.S. Attorney Tonia Sulia Goodman is prosecuting these cases on behalf of the government.
Federal agents with the FDA’s Office of Criminal Investigations and the Internal Revenue Service (IRS)’s Criminal Investigation conducted the investigation that led to the prosecutions of Universal Cheese & Drying, Inc., International Packing, LLC and Michelle Myrter.
Conspirator Sentenced to over 5 Years in Prison for $3.8 Million Mortgage Fraud SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Alberic Okou Agodio, age 31, of Bethesda, Maryland, today to 61 months in prison followed by five years of supervised release for conspiracy, wire fraud, and aggravated identity theft, arising from a mortgage fraud scheme in which he used the names of immigrants and students, along with false financial information, to obtain $3.8 million in home mortgage loans to buy approximately three dozen row houses in Baltimore, all but one of which are in default or foreclosure. Judge Bredar also entered an order that Agodio pay restitution of $3,356,581.78.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency Office of Inspector General; Special Agent in Charge Cary A. Rubenstein of the U.S. Department of Housing and Urban Development Office of Inspector General; Special Agent in Charge Fran Mace, of the Federal Deposit Insurance Corporation Office of Inspector General; and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, Agodio agreed to purchase row houses in Baltimore City from co-conspirator Kevin Campbell, who had acquired the houses as part of his real estate business. Agodio purchased the houses at prices far in excess of their actual market value. In return, Campbell kicked back a substantial portion of the purchase price to Agodio, which Agodio used to pay for the down payments and closing costs for most of the properties; to pay a commission to the individuals whom he persuaded to allow him to use their names to purchase the properties (“the straw purchasers”); to pay referral fees to individuals who referred other straw purchasers to him; and to compensate himself for his participation in the scheme. In all, from June 2009 to November 2010, Agodio purchased 35 row houses from Campbell. The financing received on these transactions totaled approximately $3.8 million and Agodio received commission payments from Campbell in excess of $1.2 million.
To perpetrate the scheme, Agodio persuaded approximately three dozen immigrants and students to purchase the row houses under their names. Although none of these “straw purchasers” had any experience in real estate transactions, nor the funds needed to buy the properties, Agodio told each straw purchaser that he would prepare the loan application; manage the property after its purchase by finding renters, collecting the rent and paying the mortgage; and would pay the straw purchaser $7,000 to $8,000 after the transaction closed. He further promised to sell the property in three years and give the individual up to 80% of the sale proceeds. Agodio also paid thousands of dollars in additional commissions to those straw purchasers who referred other individuals to him as potential buyers for similar transactions.
Agodio admitted that he falsely represented in the loan applications the straw purchasers’ assets and earnings, and that the property would be the primary residence of the purchaser. Agodio also provided fraudulent earnings and bank statements for the purchasers, to document the false information provided in the loan application. Agodio provided the necessary funds for the down payment and the buyer’s share of the closing costs, causing the settlement statement form to inaccurately reflect that the down payments and closing costs had been paid by the straw purchasers.
Following the closings, Agodio retained the keys to each property and assumed the responsibility for finding renters and making the required monthly mortgage payments. The named purchasers never lived in the properties. Agodio eventually allowed all of the mortgages to go into default.
After a fire occurred at one of the row house properties purchased through a straw purchaser Agodio falsely identified himself as the straw purchaser to the insurance company in order to collect $106,500 in insurance paid for the repair the property. Agodio cashed the check, which was made out to the straw purchaser and the bank holding the mortgage, and used the funds for his own purposes. Agodio did not notify the bank that the funds to make the repairs to the property had been received, nor did he arrange to make or pay for any repairs to the property.
Kevin Campbell, age 53, of Baltimore, previously pleaded guilty to conspiring to commit mail, wire and bank fraud arising from mortgage fraud schemes resulting in losses totaling approximately $1.2 million. Campbell was sentenced to 19 months in prison and ordered to pay restitution of $1,182,822. In a related case, Judge Bredar sentenced co-conspirator Jonathan L. Miles, age 45, of Perry Hall, Maryland to 18 months in prison for conspiring to commit bank fraud, and ordered Miles to pay restitution of $1,182,822.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available http://www.justice.gov/usao-md/financial-fraud-and-identity-theft.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended HUD- OIG, FDIC – OIG, FHFA - OIG and the FBI for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Jefferson M. Gray, who prosecuted the case.
Co-Owner of Huntington Park Towing Company Indicted on Charges of Bribing City Council Member to Secure Tow Fee IncreaseRead the Press Release
LOS ANGELES – The co-owner of a towing business was named in a federal grand jury indictment returned today that charges him with paying a bribe to a member of the Huntington Park City Council in an attempt to obtain support for a proposed fee increase for towing and vehicle storage.
Sukhbir Singh, 39, and his company, H.P. Automotive & Tow, Inc., were charged today in a two-count indictment that accuses Singh and his company of paying a bribe “to influence and reward” the city councilmember in relation to official action related to a proposed contract to increase rates to tow and store vehicles in Huntington Park.
The indictment states that the city councilperson was a “cooperating witness,” meaning s/he was working with the FBI when Singh allegedly paid the bribe.
Singh is also charged with making false statements to the FBI in October when he falsely stated that he had never discussed the proposed tow fee increase with the city councilmember and when he falsely stated that he had not discussed how payments could made so as to disguise the source of the money.
According to a criminal complaint previously filed in this case, Singh gave a total of $2,650 in checks to the city councilmember between August 2013 and March 2015, although the affidavit in support of the complaint notes that two checks totaling $800 were rejected for insufficient funds and because a signature was illegible.
“By seeking to influence a city council vote through bribes, this defendant perverted the democratic process,” said United States Attorney Eileen M. Decker. “The public deserves to be confident that its elected officials are making decisions in the best interests of the people they serve.”
“City residents deserve honest government and should not tolerate it when bribe payments dictate how their town is run,” said David Bowdich, the Assistant Director in Charge of the FBI's Field Office. “We encourage anyone with knowledge of bribes being paid or being proffered to contact the FBI to report the allegations confidentially.”
The bribery scheme followed an August 19, 2013 meeting in which the City Council voted 3-2 to deny a request by H.P. Tow to increase towing and vehicle storage fees. Ten days later, Singh met with the FBI cooperating witness in the first of a series of meetings that included discussions of Singh and H.P. Tow making campaign contributions to the city councilmember, according to the affidavit, which alleges that Singh offered to make the bribe payments through third-party checks to a campaign account.
The Huntington Park City Council approved the fee increases for H.P. Tow in January in a vote in which the cooperating witness did not participate.
Singh and H.P Tow will be summoned to appear for an arraigned on the indictment next month.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The bribery count in the indictment carries a statutory maximum penalty of 10 years in federal prison for Singh. If convicted, the company could be ordered to pay a fine as high as $250,000. The false statement charge in the indictment carries a statutory maximum penalty of five years in federal prison.
This case is the product of an investigation by the Federal Bureau of Investigation.
Chinese National Gets Probation with Home Detention for Fraudulent Test Taking SchemeRead the Press Release
PITTSBURGH - A Chinese national has been sentenced in federal court to two years probation and six months home detention on his conviction of Mail Fraud in relation to a scheme involving the fraudulent taking of college entrance exams, United States Attorney David J. Hickton announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Xi Fu, 27, of Portland, Oregon.
According to information presented to the court, Xi Fu was one of the individuals who was paid to take TOEFL exams for other Chinese students. Fu took approximately three tests and used counterfeit Chinese passports which were mailed to him from China as identification at the testing locations.
Prior to imposing the sentence, Judge Conti stated that her sentence reflected the seriousness of the offense in that it allowed people who otherwise would not have been eligible to enter the U.S. to enter and also affected the integrity of the American college admissions process.
Assistant United States Attorney James T. Kitchen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Department of Homeland Security, Homeland Security Investigations and the Department of State for the investigation leading to the successful prosecution of Fu.
Cedar Rapids Man Sentenced to Prison for Distribution of HeroinRead the Press Release
A Cedar Rapids man who distributed heroin resulting in an overdose was sentenced February 25, 2016, to more than 2 1/2 years in federal prison.
David Hudson, age 31, from Cedar Rapids, Iowa, received the prison term after an October 15, 2015, guilty plea to one count of distribution of heroin and fentanyl.
Hudson admitted that on January 20, 2015, he sold a mixture of heroin and fentanyl to a heroin user. Hudson watched the user inject the heroin in the bathroom of a convenience store. After leaving the bathroom, the user collapsed on the floor due to overdosing on the heroin. Paramedics were called to the scene and were able to revive the user and save his life by administering Narcan.
Hudson was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Hudson was sentenced to 34 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Hudson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Dan Chatham and investigated by the Cedar Rapids Police Department and the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Cedar Rapids Police Department; the Linn County Sheriff's Office; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-78.
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Bloods Gang Member Sentenced to over 39 Years in Prison for Armed Business RobberiesRead the Press Release
Memphis, TN – A Memphis man who robbed two businesses at gunpoint and forced a store clerk to perform a sex act has been sentenced to 477 months (over 39 years) in federal prison. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencing today.
According to evidence presented in court, in the early morning hours of January 26, 2014, 20-year-old Khalil Davis, a member of the Bloods street gang, entered a Circle K convenience store on Poplar Avenue, masked in a bandana and armed with a firearm. Davis pointed the gun at the store clerk’s face and took money from both the cash register and safe. He then placed the gun to the female clerk’s head and forced her to perform oral sex on him before fleeing the scene.
On the same day, less than an hour later, Davis, along with a co-conspirator, 33-year-old Antonio Griffin, entered the Marathon Gas Station on Poplar Avenue. After Griffin approached the counter to make a purchase, Davis ran behind the counter and put a gun to the store clerk’s head. A struggle ensued between Davis and the clerk while Griffin grabbed money out of the cash register and fled the store. Davis was able to eventually release himself with the gun. As he exited the store, Davis fired one shot at the clerk.
In July 2015, Davis’ co-conspirator, Griffin, pled guilty to one count of committing a robbery affecting interstate commerce and one count of brandishing and discharging a firearm in relation to a crime of violence. He was sentenced by U.S. District Judge Samuel H. Mays to a 10-year prison term in November 2015.
In November 2015, a jury convicted Davis on two counts of committing a robbery affecting interstate commerce and two counts of brandishing and discharging a firearm in relation to a crime of violence.
On Thursday, February 25, 2016, Judge Mays sentenced Davis to 477 months imprisonment.
The case was investigated by Safe Streets Task Force and the Memphis Police Department.
Assistant U.S. Attorneys Samuel Stringfellow and Kevin Whitmore prosecuted this case on the government’s behalf.
Attorney General Loretta E. Lynch Appoints Three New Board Members to the Board of Immigration AppealsRead the Press Release
FALLS CHURCH, Va. – The Executive Office for Immigration Review (EOIR) today announced that Attorney General Loretta E. Lynch has appointed Molly Kendall Clark, Ellen Liebowitz, and Blair T. O’Connor as board members to the Board of Immigration Appeals (BIA). The BIA is responsible for hearing appeals from certain decisions rendered by immigration judges and by district directors of the Department of Homeland Security. It is the highest administrative body for interpreting and applying federal immigration laws.
Biographical information follows.
Molly Kendall Clark, Board Member
Attorney General Loretta E. Lynch appointed Board Member Kendall Clark to begin hearing cases in February 2016. Board Member Kendall Clark received a Bachelor of Arts degree in 1974 from Colorado College and a Juris Doctor in 1978 from Suffolk University. From 1995 to 2016, she has served as a senior legal advisor to the chairman, Board of Immigration Appeals (BIA). From 1983 to 1991, and previously from 1978 to 1981, she was an attorney advisor for the BIA. From 1981 to 1982, Board Member Kendall Clark worked in the General Counsel’s Office of the former Immigration and Naturalization Service. Board Member Kendall Clark is a member of the District of Columbia Bar.
Ellen Liebowitz, Board Member
Attorney General Loretta E. Lynch appointed Board Member Liebowitz to begin hearing cases in February 2016. Board Member Liebowitz received a Bachelor of Arts degree in 1987 from the University of Delaware and a Juris Doctor in 1990 from the University of Maryland. From 2008 to January 2016, Board Member Liebowitz served as a senior legal advisor to the chairman, Board of Immigration Appeals (BIA). From 2007 to 2008, she was a senior counsel to the chairman, BIA, and from 1991 to 2007, as an attorney advisor for the BIA. Prior to joining the board, she clerked for the Circuit Court for Harford County, Maryland. Board Member Liebowitz is a member of the Maryland Bar.
Blair T. O’Connor, Board Member
Attorney General Loretta E. Lynch appointed Board Member O’Connor to begin hearing cases in February 2016. Board Member O’Connor received a Bachelor of Business Administration degree in 1992 from the University of Notre Dame and a Juris Doctor in 1995 from the Valparaiso University School of Law. From 2002 to 2016, he served as an assistant director, senior litigation counsel, and trial attorney at the Office of Immigration Litigation, Civil Division, Department of Justice. From 1996 to 2002, he served on active duty in various capacities in the Army’s Judge Advocate General Corps including as legal assistance and claims attorney, prosecutor, appellate defense attorney, and as a law clerk to the U.S. Army Court of Criminal Appeals. Board Member O’Connor is a member of the Illinois Bar.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR's immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR's Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Anna Man Indicted on 11 Child Exploitation Charges, Including Production of Child Pornography and Coercion and EnticmentRead the Press Release
DAYTON, Ohio – A federal grand jury has charged Robert Steven Jones, 28, of Anna, Ohio, with charges related to child pornography and coercion and enticement of a minor in an indictment returned yesterday in Dayton.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division announced the indictment returned today.
The indictment alleges that Jones knowingly coerced and enticed five minor females to engage in sexual activity for the purpose of producing or attempting to produce child pornography. Jones also allegedly received and possessed child pornography depicting female minors under the age of 12. Jones’ alleged criminal activity occurred while he was required by law to register as a sex offender.
Jones is charged with six counts of production and attempted production of child pornography involving five different alleged victims in multiple states, two counts of coercion and enticement of minor to engage in unlawful sexual activity, one count of receipt of child pornography and one count of possession of child pornography He also faces an enhanced penalty for allegedly committing certain felony offenses involving a minor while being a registered sex offender.
Jones faces at least 10 years up to life in prison for each coercion and enticement charge. Production of child pornography carries a mandatory minimum sentence of 15 years and a potential maximum sentence of 30 years in prison. Receipt and possession of child pornography are each crimes punishable by up to 20 years in prison, with the receipt charge carrying a 5 year minimum sentence. Committing a felony offense involving a minor while being required to register as a sex offender carries a mandatory 10 year sentence, to run consecutive to any other sentence.
Jones was arrested on November 4, 2015 by criminal complaint. The magistrate court ordered him detained pending trial.
U.S. Attorney Stewart commended the investigation of this case by the FBI, and Assistant U.S. Attorneys Alex R. Sistla and Vipal Patel, who are prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Amsterdam Man Admits to Unlawfully Possessing Guns and Distributing HeroinRead the Press Release
ALBANY, NEW YORK – Shawn Taft, age 46, of Amsterdam, New York, pled guilty today to being a felon in possession of five firearms and to distributing heroin.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration.
In May 2014, Taft sold heroin to a confidential informant on two separate occasions in the city of Schenectady.
On July 8, 2015, the U.S. Marshals Service, with assistance from the Amsterdam Police Department, went to arrest Taft at his home. While arresting him, an officer observed a .22 caliber rifle in a closet in the front bedroom of Taft’s residence. Officers went on to find four additional firearms in the residence, which were three rifles and a High Standard, model 88, .22 caliber revolver. The revolver was found in a bag of dog food on the back porch. Taft had previously been convicted of a felony and could not possess a firearm.
U.S. District Judge Mae A. D’Agostino is scheduled to sentence Taft on June 23, 2016. Distributing heroin carries a maximum sentence of 20 years in prison, a fine of up to $1 million and a term of supervised release of up to life. Being a felon in possession of a firearm carries a maximum sentence of 10 years in prison, a fine of up to $250,000 and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on a combination of factors including the U.S. Sentencing Guidelines and relevant statutes.
This case was investigated by the U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms & Explosives and the U.S. Marshals Service, in conjunction with the Schenectady Police Department and the Amsterdam Police Department. The case is being prosecuted by Assistant U.S. Attorney Elizabeth R. Rabe.
Thursday 25 February 2016
Youngstown man convicted of raping 11-year-oldRead the Press Release
A Youngstown man faces up to life in prison after he was convicted of crossing state lines to rape an 11-year old, law enforcement officials said.
Iraephraim Underwood, 59, was convicted following a jury trial of one count of crossing a state line to engage in a sexual act with a person who had not attained the age of 12 years old and one count of transporting a child under 18 years of age in interstate commerce with the intent to engage in an illegal sexual act.
Underwood is expected to be sentenced later this year.
This case was prosecuted by Assistant U.S. Attorneys Michael A. Sullivan and Benedict Gullo following an investigation by FBI, with assistance from the Youngstown and Boardman police departments.
Wisconsin Man Sentenced to 20 Years for Attempted Sexual Enticement of A MinorRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Ross Edward Paulson (60, Wittenberg, WI) to 20 years in federal prison for attempted sexual enticement of a minor. The Court also ordered him to forfeit the cellphone and laptop he had used to facilitate the offense. Paulson pleaded guilty on November 30, 2015.
According to court documents, while visiting Florida in July 2015, Paulson responded to a Craigslist ad. The ad had been placed by an undercover officer posing as the father of a 13-year-old girl who was looking for other men to have sex with his daughter. During a series of online communications, Paulson graphically discussed the sexual activities that he wanted to engage in with the “child.” On July 23, 2015, Paulson agreed to meet the “father” and “child” in a parking lot in Brevard County so that he could have sex with the “child.” When Paulson arrived at the meeting place, he was arrested.
This case was investigated by the Brevard County Sheriff’s Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Kara M. Wick.
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.
West Seneca Man Sentenced on Extortion ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Thi Nguyen, 40, of West Seneca, NY, who was convicted of conspiracy to collect extension of credit by extortion, was sentenced to 12 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Brendan T. Cullinane, who handled the case, stated that a individual placed bets on NFL football games with Nguyen and other individuals during the 2012 season. On May 7, 2013, the defendant, and co-defendant Eric Battistoni, told the individual his outstanding debt of $24,000 needed to be settled. On May 15, 2013, at a pre-arranged meeting, it was determined the individual would make $300 payments every Friday until the debt was settled. Battistoni also threatened violence if a payment was not made.
Nguyen and Battistoni were arrested on May 31, 2013. During the execution of a search warrant at Nguyen’s residence, officers seized numerous ledgers used in the defendant’s bookmaking activities.
Battistoni was convicted and will be sentenced on May 11, 2016.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.
Upper Marlboro Man Sentenced to 17 Years in Prison for Three Bank RobberiesRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Derek Lamar Tompkins, age 20, of Upper Marlboro, Maryland today to 17 years in prison, followed by five years of supervised release, for bank robbery and forcing a bank employee to accompany him without the employee’s consent; and to brandishing a firearm during a crime of violence. Judge Bredar also ordered Tompkins to pay restitution of $85,695.05.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Chief Timothy Bozman of the Princess Anne Police Department; Chief Hank Stawinski of the Prince George’s County Police Department; and Chief James W. Johnson of the Baltimore County Police Department.
According to Tompkins’ plea agreement, from February through August 2014, Tompkins robbed three banks, stealing a total of $164,615.05.
Specifically, on February 11, 2014, Tompkins entered the BB&T Bank in Princess Anne, Maryland, and passed the teller a note that read, “I have been watching you, I know you have $10,000 in cash. Give me the money or I will shoot you or kill you.” Fearing for her safety, the teller emptied her drawer, handing $1,539.05 to Tompkins who fled the bank.
On May 21, 2014, Tompkins and a second robber entered the M&T Bank located in Largo, Maryland. The robbers went to the victim employee’s office and demanded money and told her that they had a weapon. After the victim told them that she did not have any money, they ordered her to open the door to the teller line. Tompkins and the other robber demanded money from two victim tellers, and ordered them to open a small safe. Tompkins and the second robber took approximately $84,120, and fled the bank.
On August 18, 2014, Tompkins and a second robber entered the First Mariner Bank in Owings Mills, Maryland, wearing masks and hoods. Tompkins was wielding a 9 mm handgun, which he and the second robber passed brandished as they passed the gun back and forth between them. The robbers ordered the tellers to open their drawers, and Tompkins ordered one of the employees, at gun point, to get the key and move to the area where the vault was located. Once at the vault, Tompkins ordered her to open the vault and then he removed cash from the vault. Tompkins and the second robber then ordered the bank employees into the vault and closed the door. The robbers fled the bank in two separate vehicles with $78,956 of the bank’s money.
Police in the area were able to identify and stop the vehicle Tompkins had fled in on August 18. From the vehicle, officers located a large amount of cash (with First Mariner straps), the 9 mm handgun used during the robbery, as well as clothes, a pair of gloves, a mask, and two hooded sweatshirts, all of which matched the description of the items worn during the armed bank robbery. After being advised of his rights, Tompkins admitted that he participated in the armed robbery of the First Mariner, that he had entered with the handgun, and that he was the one who had entered the vault with the victim employee to get the money.
A subsequent trace of the 9 mm handgun showed that it had been stolen from an off duty Metropolitan (DC) Police Officer in Washington, DC, on May 6, 2014.
United States Attorney Rod J. Rosenstein commended the FBI, Princess Anne Police Department, Prince George’s County Police Department, and the Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok and Aaron S. J. Zelinsky, who prosecuted the case.
United States Seeks to Forfeit and Return A Roman Statue Stolen from the Villa Torlonia in 1983Read the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, and Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the filing of a civil forfeiture complaint against a Roman marble peplophoros statue (the “Torlonia Peplophoros”) stolen from the Villa Torlonia in Rome in 1983. The Torlonia Peplophoros had been sold in Manhattan in 2001 after being unlawfully brought into the United States in the late 1990s. The current owner of the Torlonia Peplophoros, having discovered that it was stolen, voluntarily turned it over the United States.
Manhattan U.S. Attorney Preet Bharara said: “The Torlonia Peplophoros was stolen in a brazen theft more than 30 years ago, and we are proud to have recovered it so it can finally be returned to its rightful owners. We will continue to work with our law enforcement partners to recover and return stolen treasures no matter how long they have been missing.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “Stolen artwork and culture items belong with their rightful owners no matter how much time has passed since the theft. The FBI is pleased to help with the return of the Torlonia Peplophoros to its rightful home in the Villa Torlonia museum in Rome.”
According to the allegations in the Civil Complaint unsealed today:
In 1797, Giovanni Torlonia, a famous Vatican banker in Rome, purchased what is now called the Villa Torlonia (the “Villa”) after inheriting the title of Marchese. The Torlonia family owned the Villa until 1977, though it was used by Benito Mussolini as his personal residence from 1925 to 1943, and then occupied by the Allied High Command from 1944 to 1947. After 1947, the Villa was abandoned and deteriorated until the Municipality of Rome purchased it from the Torlonia family in 1977.
Since 1978, the Villa has been opened to the public and restored by the Municipality of Rome. It contained various works of art and other significant cultural property, including the Torlonia Peplophoros, a statue depicting a woman wearing a body-length garment, known as a peplos (or peplum), that was common in ancient Greece.
During the night of November 11, 1983, and the following morning, an unknown number of thieves stole 15 statues and other items from the Villa. The Torlonia Peplophoros was among the stolen statues.
In the late 1990s, the Torlonia Peplophoros was imported into the United States by the owner of a New York City art gallery (the “Gallery”). In 2001, the Gallery sold the Torlonia Peplophoros to an individual residing in New York City (the “Buyer”) for approximately $75,000.
The Buyer became aware that the Torlonia Peplophoros was stolen when the Buyer attempted to offer it for sale through a New York City auction house, and voluntarily turned it over to the FBI in late 2015.
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Mr. Bharara thanked the FBI’s Art Crime Team for its outstanding work on this matter.
The case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorney Alexander Wilson is in charge of the case.
United States Attorney provides Municipality of Anchorage with check for $1,110,559 in restitution arising from cigarette tax evasion convictionsRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler today presented a check for $1,110,559 to Anchorage Mayor Ethan Berkowitz in a ceremony held at the United States Attorney’s Office. The check represents proceeds of the forfeiture of funds obtained through seizure warrants executed in the investigation of six individuals for various crimes arising out of a scheme to defraud the Municipality of Anchorage (MOA) of cigarette taxes owed for sales within the MOA. Pursuant to plea agreements with two of the defendants the monies were forfeited to the United States Treasury. Then through a restoration request, the Attorney General restored the approximately 1.1 million dollars to the Municipality as payment of restitution ordered at sentencing.
Previously, on March 18, 2015, U.S. District Judge Sharon L. Gleason ordered Michael Butler, 44, along with Sun Sims, 52, Kyong Hee Kim, 57, Jae Ho Lee, 60, Jae Gak Lee, 62, and Jerry Lee, 60, to pay a total of $2,007, 250, plus interest, in restitution to the Municipality of Anchorage following their convictions on charges that they were participants in a conspiracy to defraud the MOA by evading the payment of cigarette excise tax. The conspirators were indicted on July 18, 2013, on charges including mail fraud, conspiracy to commit money laundering, and conspiracy to make false statements regarding the distribution of cigarettes. Kyong Hee Kim, Sun Sims, Kimberly Sims, Jae Ho Lee, Jae Gak Lee, and Jerry Lee previously pleaded guilty in U.S. District Court for their roles in the conspiracy and other criminal violations. Michael Butler was convicted at trial in November 2014.
According to the court documents, Michael Butler and Sun Sims operated and managed Up in Smoke, located in the MOA, and Golden Eagle Tobacco and Longmere Lake Grocery and Liquor, both located outside the MOA. Because they owned Golden Eagle Tobacco and Longmere Lake Grocery and Liquor, Butler and Sims could legitimately purchase MOA excise tax exempt cigarettes from tobacco wholesale distributors located in the MOA, but only if those cigarettes were actually transported outside of the MOA and offered for sale at those two stores. However, cigarettes that they purchased within the MOA and intended to sell at Up in Smoke or distribute to others within the MOA were not excise tax exempt.
Between 2009 and October 10, 2012, Michael Butler and Sun Sims used their Golden Eagle Tobacco and Longmere Lake Grocery and Liquor store accounts with tobacco wholesale distributors within the MOA to purchase excise tax exempt cigarettes that they intended to sell and distribute within the MOA. Thus, they avoided paying the MOA excise tax and increased their own profits.
The other co-conspirators paid a fee to Michael Butler and Sun Sims for the purchase of excise tax exempt cigarettes. They paid this fee for the tax exempt cigarette in an effort to avoid paying the tax owed to the MOA. Butler and Sims would collect payment from Kyong Hee Kim and other retailers. They would then convert the money collected into cashier’s checks that appeared to be purchased by either Golden Eagle Tobacco or Longmere Lake Grocery and Liquor. They then used these cashier’s checks to purchase more tax exempt cigarettes, which they then delivered to the following retail stores within the MOA:
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Up in Smoke, owned and operated by Michael Butler and Sun Sims and managed by Kimberly Sims
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Mini Stop, owned and operated by Kyong Hee Kim
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Party Time Liquor, owned and operated by Jae Gak Lee
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Cheap Smokes, owned and operated by Jae Ho Lee
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Lucky Seven Foodmart, owned and operated by Jerry Lee
The defendants received the following sentences:
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Michael Butler sentenced on 3/13/15 to 36 months incarceration, 3 years supervised release.
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Sun Sims sentenced on 2/4/15 to 34 months incarceration, 3 years supervised release, $18,000 fine.
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Jae Gak Lee sentenced on 2/2/15 to 16 months incarceration, 3 years supervised release, $100,000 fine.
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Jae Ho Lee, sentenced on 1/21/15 to 16 months incarceration, 3 years supervised release.
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Kimberly Crandell, sentenced on 1/21/15 to 3 years’ probation, $1,500 fine.
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Jerry Lee, sentenced on 1/20/15 to 9 months incarceration, 3 years supervised release.
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Kyong Hee Kim sentenced 12/4/14 to 5 years’ probation.
Assistant U.S. Attorney Stephan A. Collins of the U.S. Attorney’s Office, District of Alaska, prosecuted the case. The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI), Alcohol Tobacco and Firearms (ATF), and the Anchorage Police Department.
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U.S. Attorney Rose Announces over $7.7 Million in Federal Grants Awarded in 2015 to Grantees in the Western DistrictRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Jill Westmoreland Rose announced today that over $7.7 million in federal grants were awarded in 2015 to local law enforcement agencies, non-profit organizations, educational institutions and tribal government programs in the Western District. The federal grants were awarded by the Office of Justice Programs (OJP), the Office of Violence against Women (OVW), the Office of Community Oriented Policing Services (COPS Office), and the Bureau of Justice Assistance (BJA).
In making today’s announcement, U.S. Attorney Rose stated, “Federal grant funding is an important resource for local law enforcement, community groups and non-profit service providers. The much-needed funding is used to support law enforcement initiatives, fund tribal programs, enhance public safety, and provide victim assistance services within local and tribal communities.”
Grantees in 12 of the western district’s 32 counties received federal funding. The funding will be used by local law enforcement to support a broad range of activities, including conducting state and local initiatives, technical assistance, training, equipment, supplies, court programs, prevention and education programs, drug treatment and enforcement programs and crime victim and witness programs, among others. Grants provided to educational institutions will be used for research purposes to assist law enforcement and to fund outreach and public awareness efforts, such as combating violence against women on campus.
Funding allocated to non-profit organizations will be used for comprehensive victim-centered services, including victim assistance and advocacy, and legal services to victims of sexual assault and dating violence. Funding provided to tribal government programs will be used to enhance civil and criminal tribal court systems and to improve access to those systems, as well as creating a domestic program to improve the support services available to Indian women victims, to develop ongoing education and prevention campaigns, to provide community outreach and legal assistance to Indian women.
The Office of Justice Programs (OJP) provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime fighting strategies. Current OJP funding opportunities can be found at: http://ojp.gov/funding/Explore/CurrentFundingOpportunities.htm.
The Office on Violence Against Women (OVW) currently administers 24 grant programs authorized by the Violence Against Women Act (VAWA) of 1994 and subsequent legislation. For a list of OVW grant programs and additional grant funding information please visit: http://www.justice.gov/ovw/grant-programs.
The Office of Community Oriented Policing Services (COPS Office) is the component of the U.S. Department of Justice responsible for advancing the practice of community policing by the nation’s state, local, territorial, and tribal law enforcement agencies through information and grant resources. Since 1995, COPS Office has invested over $14 billion to advance community policing. For the latest applicant and grantee information please go to: http://www.cops.usdoj.gov/grants.
The Bureau of Justice Assistance (BJA) provides leadership and assistance to local criminal justice programs that improve and reinforce the nation’s criminal justice system. BJA’s goals are to reduce and prevent crime, violence, and drug abuse and to improve the way in which the criminal justice system functions. In order to achieve such goals, BJA programs illustrate the coordination and cooperation of local, state, and federal governments. BJA works closely with programs that bolster law enforcement operations, expand drug courts, and provide benefits to safety officers. BJA Funding announcements are posted at: https://www.bja.gov/funding.aspx
Two sentenced for drug traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Two individuals were sentenced in federal court for drug trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Khalil Brown, 34, of Philadelphia, Pennsylvania, sold heroin in 2014 near West Virginia University in Monongalia County, West Virginia, as part of an extensive drug trafficking network designed to transport heroin and oxycodone across state lines from Philadelphia, Pennsylvania to Morgantown, West Virginia for redistribution and sale throughout the region. He pled guilty in October 2015 to one count of “Distribution of Heroin within 1000 feet of a Protected Location.” He was sentenced to 92 months in prison.
Harvey Orlando Higgs, 30, of Morgantown, West Virginia, sold cocaine in March 2015 in Monongalia County. He pled guilty in October 2015 to one count of “Distribution of Cocaine Base.” He was sentenced to 37 months in prison.
Assistant U.S. Attorney Zelda Wesley prosecuted the cases on behalf of the government. The Mon Metro Drug and Violent Crime Task Force investigated.
U.S. District Judge Irene M. Keeley presided.
Twelve Members of Orlando-Area Heroin Trafficking Crew Charged with Federal Drug OffensesRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that 12 members of a drug trafficking organization have been charged with distributing street-level quantities of heroin in the Orlando area. A criminal complaint has been unsealed charging Steven Joseph Malham (55, Orlando), Angel Manuel Fontanez (31, Clermont), Pedro Juan Rivera-Aviles (63, Orlando), Jason Paul Manore (36, Orlando), Aref Hamdan (39, Orlando), Wilbert Joel Alequin-Pagan (21, Orlando), Robert Bryan Sautner (28, Winter Garden), Emmanuel Verges (26, Orlando), Constantine Kotsianidis (37, Orlando), Zuleyka Jeanette Colon-Rivera (24, Orlando), Ernesto Cabanas-Torres, (41, Orlando), and Domingo Perez-Lamboy (42, Orlando) with conspiracy to distribute and to possess with intent to distribute heroin. If convicted, each faces a maximum penalty of 20 years in federal prison.
According to the complaint, a drug trafficking organization whose members referred to themselves as “La Compania” or “the Company” acquired heroin from out of state. They then used a telephone number that changed frequently (the heroin line) to sell heroin to customers in Orlando, primarily in the tourist district, near International Drive. Using information provided by informants, the Drug Enforcement Administration identified the organization’s heroin line and had informants and undercover agents call to set up controlled purchases of heroin. Between November 2013 and October 2015, controlled purchases of heroin were made from each of the individuals charged in the criminal complaint. These drug sales ranged from 5 baggies of heroin for $100 to 200 bags for $2,000. More than 100 grams of heroin was sold to law enforcement officers during this investigation.
A criminal complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation entitled “La Compania.” The investigation was conducted by the Drug Enforcement Administration, with assistance from the Orange County Sheriff’s Office, the Metropolitan Bureau of Investigation, the United States Marshals Service, the Federal Bureau of Investigation, and the Orlando Police Department. It will be prosecuted by Assistant United States Attorneys Andrew C. Searle and Embry J. Kidd.
Topsfield Man Sentenced to Prison for Tax Evasion and Bankruptcy FraudRead the Press Release
BOSTON – A Topsfield man was sentenced today in connection with evading nearly $400,000 in federal income taxes and making false statements in bankruptcy filings.
Robert P. Bonefant, Jr., 58, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 15 months in prison, one year of supervised release and ordered to cooperate with the IRS to assess and pay his outstanding taxes. In September 2015, Bonefant pleaded guilty to two counts of tax evasion, three counts of filing a false tax return and three counts of bankruptcy fraud.
At the sentencing hearing, Judge Saris noted the need to deter others from evading their legal obligation to pay taxes. Judge Saris also pointed out that the loss caused by tax offenses like those committed by Bonefant is not suffered by the Internal Revenue Service, but instead by everyone who pays their taxes.
In 2008, the IRS assessed Bonefant $194,430 in taxes owed for 2004 and 2005. Bonefant then began to take steps to prevent the IRS from determining his entire income and actual tax liabilities. Those steps included depositing $1 million into his father’s bank accounts, including both taxable income and non-taxable business expense reimbursements, filing tax returns that failed to report significant income, and failing to file a return for 2010 when he had income of more than $250,000. In total, including the amounts assessed for 2004 and 2005 and the amounts owed for 2009 through 2012, Bonefant failed to pay approximately $389,030 in taxes.
In 2012, Bonefant filed for bankruptcy in Massachusetts seeking to discharge various debts, including the outstanding 2004 and 2005 federal tax liability. In documents filed with the Bankruptcy Court, Bonefant made false statements concerning his income and assets, as well as his use of his father’s bank accounts.
United States Attorney Carmen M. Ortiz; Manny J. Muriel, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The U.S. Trustee’s Office in Boston also provided assistance. The case was prosecuted by Assistant U.S. Attorney Mark J. Balthazard of Ortiz’s Economic Crimes Unit.