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Thursday 25 February 2016
Enfield Man Sentenced to More Than 8 Years in Federal Prison for Committing 3 Armed Bank RobberiesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID M. JOHNSON, 28, of Enfield, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 97 months of imprisonment, followed by three years of supervised release, for committing three armed bank robberies.
According to court documents and statements made in court, on January 10, 2015, at approximately 9:15 a.m., two masked men, at least one of whom brandished a firearm, entered the First Niagara Bank at 2133 Poquonock Avenue in Windsor. The two men jumped over the teller counter, directed two bank employees to the bank vault and ordered one of the employees to open the vault. Once inside the vault, the men ordered the bank employees to the ground and took cash from the vault. The men also ordered bank employees to open teller drawers and proceeded to take an additional amount of money from the drawers. During the robbery, a customer entered the bank. One of the masked men pointed a gun at the customer, ordered him to the ground and told him not to look up. After exiting the bank, the men confronted a second customer who was about to enter the bank. One of the men pointed a gun at the customer and stated “If you say anything, we’ll shoot you….”
While investigating the robbery, Windsor Police were contacted by East Windsor Police who were investigating similar bank and credit union robberies in East Windsor and Glastonbury. East Windsor Police had recently obtained an arrest warrant for JOHNSON with respect to the robbery of the Nutmeg State Federal Credit Union in East Windsor on July 21, 2014.
After further investigation, on January 10 at approximately 9:45 p.m., law enforcement executed a search warrant at JOHNSON’s Enfield residence and found a total of $81,946 in cash, most of which was bound by First Niagara Bank strapping that was initialed by one of victim bank employees. Investigators also found and seized other items allegedly used during the robbery earlier that day, as well as a .380 caliber semi-automatic handgun with a fully-loaded magazine.
JOHNSON has been detained since his arrest on January 10, 2015.
On August 31, 2015, JOHNSON pleaded guilty to one count of armed bank robbery and admitted that he committed the robbery in Windsor on January 10, 2015, and also the armed robberies of the Nutmeg State Federal Credit Union in East Windsor on July 21, 2014, and the Nutmeg State Credit Union in Glastonbury on November 7, 2014, stealing $109,166 and $84,145, respectively.
JOHNSON was ordered to pay restitution in the amount of $193,311.
On May 29, 2015, Odain J. Johnson, of Hartford, pleaded guilty to one count of armed bank robbery stemming from his role in the Windsor bank robbery. On October 27, 2015, he was sentenced to 70 months of imprisonment.
This matter was investigated by the FBI and the Windsor, East Windsor and Glastonbury Police Departments, with the assistance of the Enfield Police Department, the Capital Region Emergency Services Team (CREST) and the Maine State Police. The case was prosecuted by Assistant U.S. Attorneys Deborah R. Slater and Douglas P. Morabito.
El Paso Man Sentenced to Federal Prison for Heroin Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Arturo Martinez, 23, of El Paso, Texas, was sentenced yesterday afternoon in federal court in Las Cruces, N.M., to 54 months in prison followed by five years of supervised release for his heroin trafficking conviction. His co-defendant Bryan Marinelarena, 21, a Mexican national, was sentenced on Feb. 23, 2016 to three years in prison for his heroin conviction. Marinelarena will be deported after completing his prison sentence.
Martinez and Marinelarena were arrested on May 23, 2015, during a routine inspection at the U.S. Border Patrol checkpoint on Interstate 10 in Doña Ana County, N.M. According to the criminal complaint, agents found approximately 6.6 kilograms (14.6 pounds) of heroin concealed in the vehicle in which Martinez and Marinelarena were driving from El Paso to California.
On Aug. 4, 2015, Marinelarena and Martinez each pled guilty to a felony information charging them with participating in a heroin trafficking conspiracy. Each admitted that on May 23, 2015, Border Patrol agents at the Interstate 10 checkpoint discovered 6.6 kilograms of heroin hidden in the engine of the SUV in which they were traveling.
In entering their guilty pleas, each man also admitted that he expected to be paid for transporting the heroin from El Paso to California. Martinez anticipated a $6,000 payment while Marinelarena expected to receive a $1,000 payment.
This case was investigated by the Las Cruces Station of the U.S. Border Patrol and the Las Cruces office of the DEA and was prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.
The case was prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Eight Individuals Arrested for Bribery, Conspiracy, Health Care and Mail FraudRead the Press Release
Yesterday, a federal grand jury returned a 14 count indictment against eight individuals for bribery, conspiracy to commit health care fraud, conspiracy to commit an offense against the United States, mail fraud and aggravated identity theft, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico. The investigation was led by the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG), with the collaboration of the Federal Bureau of Investigation, U.S. Secret Service, U.S. Postal Inspection Service and the Puerto Rico Department of Health Medicaid Anti-Fraud Unit.
The Medicaid Program (Medicaid) is a federal health benefit program intended to provide benefits to low-income individuals and families. Medicaid is monitored and funded by the U.S. Department of Health and Human Services (HHS) through its agency, the Centers for Medicare and Medicaid Services (CMS). In the Commonwealth of Puerto Rico, Medicaid is referred to in Spanish as “Mi Salud,” or “Plan de Salud del Gobierno” (PSG). Mi Salud beneficiaries included Medicaid participants and “state only funded health care recipients,” commonly referred to as “Commonwealth participants.” An individual’s eligibility for Medicaid or Commonwealth health care benefits depends on certain eligibility requirements.
Although Medicaid is federally-funded, it is administered by the states and/or United States territories, including the Commonwealth of Puerto Rico. HHS provided the Puerto Rico Department of Health (PR-DOH) approximately $1 billion annually to fund and/or reimburse the costs of Medicaid.
Within the PR-DOH, the Office of the Medicaid Program, also known in Spanish as “Programa De Asistencia Médica,” or “Programa De Medicaid,” was responsible for handling applications for Medicaid as well as the Commonwealth health plan eligibility, certification and recertification process. Medicaid and the Commonwealth health plan eligibility was determined by a Program Technician, a government employee from the Programa de Asistencia Medica.
The indictment charges three agents of the Programa de Asistencia Medica Santurce Office with receiving monetary bribes in exchange for certifying individuals as eligible to receive Medicaid health care benefits. The charged agents the Programa de Asistencia Medica are:Luis González-Cordova, a clerk in the Santurce office who dealt with Mi Salud participant files and individual applicants that sought Mi Salud benefits; Karen Curet-Nieves, a program technician in the Santurce office who evaluated and determined the eligibility of Mi Salud applicants, input data in the MEDITI system and approved Mi Salud benefits for participants; and Orlando Negrón-Bonilla, a program technician in the Santurce office who evaluated and determined eligibility of Mi Salud applicants, input data in the MEDITI system and approved Mi Salud benefits for participants.
The indictment alleges that from on or about July 9, 2014, through on or about Oct. 10, 2015, González-Cordova, Curet-Nieves and Negrón-Bonilla aiding and abetting one another, did corruptly solicit, demand, accept and agree to accept a thing of value from a person, to wit, cash payments, intending to be influenced and rewarded in connection with a transaction and series of transactions of Programa De Asistencia Médica involving $5,000 or more. Rather, than abiding by their duties to ensure participants were in fact low-income and eligible for Medicaid, defendants abdicated those responsibilities in exchange for cash. Those defendants and various “runners” are also charged with conspiracy to commit an offense against the United States, conspiracy to commit health care fraud, mail fraud and aggravated identity theft .
During the course of the conspiracy and scheme, defendants Ruben Escalera-Rivera, Perfecto De Leon-Toribio, Luis Caceres-De Leon, Luis Angel Garcia-Rosa and Andrea Jimenez-De Jesús, acted as “runners,” soliciting and referring individuals to defendant Luis González-Cordova for their fraudulent entry into the Medicaid health care benefit programs. The runners would recruit individuals to be fraudulently enrolled into the Medicaid health care benefits programs in exchange for cash bribes and monetary payments without personally meeting with the individuals to determine their eligibility as required by PR-DOH procedures. The runners delivered cash bribes to González-Cordova and upon receiving the personal identification information, including names, social security numbers, dates of birth and addresses, from the runners, González-Cordova would provide it to Curet-Nieves or Negrón-Bonilla by text or handwritten note for entry into the MEDITI database. Curet-Nieves and Negrón-Bonilla fraudulently certified the participants as eligible to receive Medicaid health care benefits.
Curet-Nieves approved 20 to 30 unqualified individuals per week into the Mi Salud program for a fee of $10 each and Negrón-Bonilla approved 20 to 30 unqualified individuals per week into the Mi Salud program for a fee of $10 to $30 each.
The individually identifiable information for eligible participants was transferred daily to the Puerto Rico Health Insurance Administration, known in Spanish as Administración de Seguros de Salud de Puerto Rico (ASES), in order to complete the enrollment process with the various contracted Managed Care Organizations (MCO’s). Medicaid health insurance cards for the MCO’s were then sent via regular mail to the participant.
ASES paid monthly premiums to the MCOs for the purposes of providing Medicaid health care benefits. Monthly premiums were paid to MCO’s regardless of whether the participant required medical care services. MCO’s also received federal monies for utilization of the health care plan. As a result, each participant fraudulently certified as eligible for Medicaid health care benefits would result in the fraudulent payment of federal Medicaid funds to MCO’s. This amount could range from hundreds to thousands of dollars per participant depending on the corresponding premiums and utilization.
In conjunction with this investigation, the Puerto Rico Department of Health Medicaid Anti-Fraud Unit is sending approximately 6,000 notification letters to participants whose eligibility has been identified as suspicious. Over 130 participants have been mailed notifications already.
“Today’s arrests by HHS-OIG agents and our law enforcement partners show that we will not tolerate the improper use of health care program funds such as Medicaid which are essential to the welfare of low-income families in our community,” said U.S. Attorney Rodríguez-Vélez. “The U.S. Attorney’s Office and federal law enforcement agencies will continue to investigate, charge and prosecute those who corruptly enrich themselves at the expense of the Medicaid program.
The Medicaid program provides health care benefits to low-income individuals and families, and the fraudulent enrollment of individuals into the program is unacceptable,” said Special Agent in Charge Scott Lampert of HHS-OIG New York Regional Office. HHS-OIG and its law enforcement partners will continue to aggressively pursue to the fullest extent of the law those who seek to unlawfully enrich themselves by defrauding Medicaid.”
The case is being prosecuted by Assistant U.S. Attorney Luke Cass and Assistant U.S. Attorney Seth Erbe. The case was investigated by U.S. Department of Health and Human Services-Office of Inspector General, with the collaboration of the Federal Bureau of Investigation, U.S. Secret Service, U.S. Postal Inspection Service, the Puerto Rico Department of Health Medicaid Anti-Fraud Unit and the Puerto Rico Police Department.
If convicted, the defendants face a sentence of up to twenty years of imprisonment plus a mandatory two year term of imprisonment for aggravated identity theft. Criminal indictments are only charges and are not evidence of guilt. A defendant is presumed innocent unless and until proven guilty.
Eight Individuals Arrested for Bribery, Conspiracy, Health Care and Mail FraudRead the Press Release
SAN JUAN, P.R. – On February 24, 2016, a Federal grand jury returned a fourteen count indictment against eight individuals for bribery, conspiracy to commit health care fraud, conspiracy to commit an offense against the United States, mail fraud, and aggravated identity theft, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The investigation was led by the U.S. Department of Health and Human Services-Office of Inspector General, with the collaboration of the Federal Bureau of Investigation, United States Secret Service, United States Postal Inspection Service, and the Puerto Rico Department of Health Medicaid Anti-Fraud Unit.
The Medicaid Program (“Medicaid”) is a federal health benefit program intended to provide benefits to low-income individuals and families. Medicaid is monitored and funded by the United States Department of Health and Human Services (“HHS”) through its agency, the Centers for Medicare and Medicaid Services (“CMS”). In the Commonwealth of Puerto Rico, Medicaid is referred to in Spanish as “Mi Salud,” or “Plan de Salud del Gobierno” (PSG). Mi Salud beneficiaries included Medicaid participants and “state only funded health care recipients,” commonly referred to as “Commonwealth participants.” An individual’s eligibility for Medicaid or Commonwealth health care benefits depends on certain eligibility requirements.
Although Medicaid is federally-funded, it is administered by the states and/or United States territories, including the Commonwealth of Puerto Rico. HHS provided the Puerto Rico Department of Health (PR-DOH) approximately $1 billion annually to fund and/or reimburse the costs of Medicaid.
Within the PR-DOH, the Office of the Medicaid Program, also known in Spanish as “Programa De Asistencia Médica,” or “Programa De Medicaid,” was responsible for handling applications for Medicaid as well as the Commonwealth health plan eligibility, certification and recertification process. Medicaid and the Commonwealth health plan eligibility was determined by a Program Technician, a government employee from the Programa de Asistencia Medica.
The indictment charges three agents of the Programa de Asistencia Medica Santurce Office with receiving monetary bribes in exchange for certifying individuals as eligible to receive Medicaid health care benefits. The charged agents the Programa de Asistencia Medica are (1) Defendant Luis González-Cordova, a clerk in the Santurce office who dealt with Mi Salud participant files and individual applicants that sought Mi Salud benefits; (2) Defendant Karen Curet-Nieves, a program technician in the Santurce office who evaluated and determined the eligibility of Mi Salud applicants, input data in the MEDITI system, and approved Mi Salud benefits for participants; and (3) Defendant Orlando Negrón-Bonilla, a program technician in the Santurce office who evaluated and determined eligibility of Mi Salud applicants, input data in the MEDITI system, and approved Mi Salud benefits for participants.
The indictment alleges that from on or about July 9, 2014, through on or about October 10, 2015, Luis González-Cordova, Karen Curet-Nieves, and Orlando Negrón-Bonilla aiding and abetting one another, did corruptly solicit, demand, accept, and agree to accept a thing of value from a person, to wit, cash payments, intending to be influenced and rewarded in connection with a transaction and series of transactions of Programa De Asistencia Médica involving $5,000 or more. All in violation of Title 18, United States Code, Sections 666(a)(1)(B), 2(a), and 2(b). Rather, than abiding by their duties to ensure participants were in fact low-income and eligible for Medicaid, defendants abdicated those responsibilities in exchange for cash. Those defendants and various “runners” are also charged with conspiracy to commit an offense against the United States in violation of Title 18, United States Code, Section 371, conspiracy to commit health care fraud in violation of Title 18, United States Code, Sections 1347 and 1349, mail fraud in violation of Title 18, United States Code, Section 1341, and aggravated identity theft in violation of Title 18, United States Code, Section 1028A.
During the course of the conspiracy and scheme, defendants Ruben Escalera-Rivera, Perfecto De Leon-Toribio, Luis Caceres-De Leon, Luis Angel Garcia-Rosa, and Andrea Jimenez-De Jesús, acted as “runners,” soliciting and referring individuals to defendant Luis González-Cordova for their fraudulent entry into the Medicaid health care benefit programs. The runners would recruit individuals to be fraudulently enrolled into the Medicaid health care benefits programs in exchange for cash bribes and monetary payments without personally meeting with the individuals to determine their eligibility as required by PR-DOH procedures. The runners delivered cash bribes to defendant Luis González-Cordova and upon receiving the personal identification information, including names, social security numbers, dates of birth, and addresses, from the runners, Luis González-Cordova would provide it to Karen Curet-Nieves or Orlando Negrón-Bonilla by text or handwritten note for entry into the MEDITI database. Karen Curet-Nieves and Orlando Negrón-Bonilla fraudulently certified the participants as eligible to receive Medicaid health care benefits.
Defendant Karen Curet-Nieves approved twenty to thirty unqualified individuals per week into the Mi Salud program for a fee of $10.00 each and Orlando Negrón-Bonilla approved twenty to thirty unqualified individuals per week into the Mi Salud program for a fee of $10.00 to $30.00 each.
The individually identifiable information for eligible participants was transferred daily to the Puerto Rico Health Insurance Administration, known in Spanish as “Administración de Seguros de Salud de Puerto Rico” (“ASES”), in order to complete the enrollment process with the various contracted “Managed Care Organizations” (“MCO’s”). Medicaid health insurance cards for the MCO’s were then sent via regular mail to the participant.
ASES paid monthly premiums to the MCOs for the purposes of providing Medicaid health care benefits. Monthly premiums were paid to MCO’s regardless of whether the participant required medical care services. MCO’s also received federal monies for utilization of the health care plan. As a result, each participant fraudulently certified as eligible for Medicaid health care benefits would result in the fraudulent payment of federal Medicaid funds to MCO’s. This amount could range from hundreds to thousands of dollars per participant depending on the corresponding premiums and utilization.
In conjunction with this investigation, the Puerto Rico Department of Health Medicaid Anti-Fraud Unit is sending approximately 6,000 notification letters to participants whose eligibility has been identified as suspicious. Over 130 participants have been mailed notifications already.
“Today’s arrests by HHS-OIG agents and our law enforcement partners show that we will not tolerate the improper use of health care program funds such as Medicaid which are essential to the welfare of low-income families in our community. The U.S. Attorney’s Office and federal law enforcement agencies will continue to investigate, charge and prosecute those who corruptly enrich themselves at the expense of the Medicaid program,” said United States Attorney, Rosa Emilia Rodríguez-Vélez.
“The Medicaid program provides health care benefits to low-income individuals and families, and the fraudulent enrollment of individuals into the program is unacceptable. HHS-OIG and its law enforcement partners will continue to aggressively pursue to the fullest extent of the law those who seek to unlawfully enrich themselves by defrauding Medicaid,” said Scott Lampert, Special Agent in Charge of HHS-OIG New York Regional Office.The case is being prosecuted by Assistant U.S. Attorney Luke Cass and Assistant U.S. Attorney Seth Erbe. The case was investigated by U.S. Department of Health and Human Services, Office of Inspector General, with the collaboration of the Federal Bureau of Investigation, United States Secret Service, United States Postal Inspection Service, the Puerto Rico Department of Health Medicaid Anti-Fraud Unit and the Puerto Rico Police Department.
If convicted, the defendants face a sentence of up to twenty years of imprisonment plus a mandatory two year term of imprisonment for aggravated identity theft. Criminal indictments are only charges and are not evidence of guilt. A defendant is presumed innocent unless and until proven guilty.
District Man Pleads Guilty to Bank Robbery ChargeRead the Press Release
WASHINGTON – Francis Davis, 69, of Washington, D.C., pled guilty today to a federal bank robbery charge for a hold-up at a bank in Southeast Washington, announced U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Davis pled guilty in the U.S. District Court for the District of Columbia. The Honorable Christopher R. Cooper scheduled sentencing for May 9, 2016. The charge carries a statutory maximum of 20 years in prison. Davis also is subject to a forfeiture money judgment.
According to the government’s evidence, on Monday, Nov. 9, 2015, at approximately 9:15 a.m., Davis entered the rear door of the SunTrust Bank in the 300 block of Pennsylvania Avenue SE. Once inside, he walked to a teller station. Davis then passed the bank teller a note which demanded money. The teller read the note and paused in disbelief. At that time, Davis stated, “Quit stalling … Somebody is gonna’ get hurt.”
The teller opened the cash drawer and passed $1,589 to the defendant. Davis stated, “That’s good,” and then walked swiftly out the door. Law enforcement officers submitted images taken from the bank’s surveillance video to the law enforcement community. The defendant was subsequently identified from several surveillance video photos from the robbery. He was arrested on Dec. 11, 2015 and has been in custody ever since.
In announcing the guilty plea, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Chief Lanier commended the actions of the FBI and Metropolitan Police Department officers who worked to solve this case. They also expressed appreciation for the work of Paralegal Specialists Jeannette Litz and Teesha Tobias of the U.S. Attorney’s Office. Finally, they commended efforts of Assistant U.S. Attorney Emory V. Cole, who investigated and prosecuted the case.
Dallas Man Pleads Guilty to Role in AAFES Jewelry Theft SchemeRead the Press Release
DALLAS — Arthur Lee Hightower, II, a Dallas man who was on the lam for more than seven months following his indictment in May 2015 for his role in a jewelry theft scheme that targeted the Army and Air Force Exchange Services (AAFES), is now in custody, and today he pleaded guilty to his role in that scheme, announced U.S. Attorney John Parker of the Northern District of Texas.
Hightower II, 56, pleaded guilty before U.S. Magistrate Judge David L. Horan, to one count of theft of government property. He faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Restitution could also be ordered. Sentencing is set for July 11, 2016, before U.S. District Judge Sam A. Lindsay.
In May 2015, Hightower and his former wife, Jessie Faye Hightower, a/k/a “Jessie Faye Lewis,” 55, of Balch Springs, Texas, and their two sons, Arthur Lee Hightower III, 34, of Lancaster, Texas, and Travoine Lee Hightower, 31, of Dallas, were charged in a federal indictment with felony offenses stemming from a scheme they ran to steal nearly $100,000 in wedding ring sets from AAFES. Jessie Fay Hightower and Arthur Lee Hightower III have each pleaded guilty to one count of conspiracy to receive stolen government property. Travoine Lee Hightower pleaded guilty to one count of receiving stolen government property.
According to plea documents filed in the case, Hightower II worked as a truck driver, and part of his duties included delivering AAFES merchandise to the AAFES offices in Dallas. On approximately October 3, 2014, Hightower II, who was responsible for safeguarding the merchandise, did not deliver all of the AAFES merchandise, instead, he stole approximately 70 wedding ring sets from AAFES.
Hightower II admitted he gave several of the wedding ring sets to his co-defendant family members so they could pawn the stolen jewelry to obtain cash.
The case was investigated by agents of the Defense Criminal Investigative Service and the Air Force Office of Special Investigations. Assistant U.S. Attorney David Jarvis is prosecuting.
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Clarksburg man sentenced to 20 years for distributing child pornographyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Joshua Hood, 34, of Clarksburg, was sentenced to 240 months in prison for transmitting images of child pornography, United States Attorney William J. Ihlenfeld, II, announced.
In August 2015, Hood utilized his smartphone to distribute and transmit images depicting a minor engaged in explicit conduct. Hood pled guilty in October 2015 to one count of “Transportation of Child Pornography.”
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government. The Federal Bureau of Investigation investigated.
U.S. District Judge Irene M. Keeley presided.
Cedar Falls Man Sentenced to Prison for Conspiracy to Distribute Pure MethamphetamineRead the Press Release
A Cedar Falls man who distributed pure methamphetamine was sentenced February 22, 2016, to more than 17 years in federal prison.
Seth Beard, age 36, from Cedar Falls, Iowa, received the prison term after an October 29, 2015, guilty plea to one count of conspiracy to distribute more than 50 grams of pure methamphetamine. At the guilty plea, Beard admitted that between December 2013 and August 2015 he was involved in the importation of over 8.7 kilograms (3.9 pounds) of pure methamphetamine which he distributed with others in the Cedar Falls area.
Beard was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Beard was sentenced to 205 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Beard 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 as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Federal Bureau of Investigation, the Iowa Division of Narcotics Enforcement, and the Tri-County Drug Task Force, comprised of the Waterloo Police Department, Black Hawk County Sheriff’s Office, Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-2042.
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Cape Cod Dental Practice Settles Drug Diversion AllegationsRead the Press Release
BOSTON – The U.S. Attorney’s Office reached a $25,000 civil settlement with Dr. Richard Bravman, Dr. John Langston, and their Cape Cod dental practice, Bravman, Langston, and Associates, LLC in connection with the practice’s flawed recordkeeping of controlled substances.
According to court documents, the practice allegedly failed to conduct required inventories of controlled substances, to keep inventories of drugs on hand, to maintain dispensing records and invoices for drug transfers between practice locations, and to create order forms for controlled substances. The practice also allegedly failed to report a theft of a controlled substance to the DEA as it was required to do.
Upon learning of the violations at their practice, Drs. Bravman and Langston cooperated with the investigation. In consultation with the DEA, they have implemented new recordkeeping procedures to ensure compliance with regulations aimed at avoiding diversion of controlled substances from medical offices.
Drs. Bravman and Langston agreed to pay $25,000 to settle these claims and to permit the DEA to perform administrative inspections of the practice’s offices during the next three years without a warrant.
United States Attorney Carmen M. Ortiz and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. The case was handled by Assistant U.S. Attorney Kriss Basil of Ortiz’s Civil Division.
California Man Sentenced to Prison for Drug Charge and Money LaunderingRead the Press Release
A California man who distributed pure methamphetamine in Iowa and laundered some of the proceeds to a Mexican bank account was sentenced February 22, 2016, to 22 years in federal prison.
Jesus Lizarraga, age 34, from Yucaipa, California, received the prison term after a November 2, 2015, guilty plea to one count of conspiracy to distribute more than 50 grams of pure methamphetamine and one count of money laundering.
At the guilty plea, Lizarraga admitted he recruited individuals from Cedar Falls, Iowa, to assist in the distribution of over 11 kilograms (5 pounds) of pure methamphetamine. Lizarraga gave the Iowans methamphetamine in Cedar Falls, Omaha, Nebraska, and in California to distribute in the Cedar Falls area. Lizarraga laundered some of the proceeds from drug sales by directing others to wire the money from Iowa to a Mexican bank account.
Lizarraga was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Lizarraga was sentenced to 264 months’ imprisonment. A special assessment of $200 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Lizarraga 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 as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Federal Bureau of Investigation, the Iowa Division of Narcotics Enforcement, and the Tri-County Drug Task Force, comprised of the Waterloo Police Department, Black Hawk County Sheriff’s Office, Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-2027.
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California Man Sentenced to 40 Years for Running Multi-Million Dollar Fraud Scheme in KentuckyRead the Press Release
FRANKFORT, Ky. C A federal judge has sentenced a California man to 40 years in federal prison, for orchestrating a fraudulent oil production enterprise in Kentucky that defrauded investors, nationwide, out of more than $3 million.
On Wednesday, U.S. District Judge Gregory Van Tatenhove sentenced John G. Westine, Jr., 69, for mail fraud, conspiracy to launder funds, and securities fraud. Westine was also ordered to pay $3,042,621 in restitution. One of Westine’s co-defendants, Mark Cornell, 56, was sentenced to 114 months in prison, for deception in the purchase and sale of a security. Cornell was ordered to pay $2,181,414 in restitution.
Westine’s sentence was enhanced due to a prior conviction, for running a similar fraud scheme in Ohio. Westine served more than 20 years in prison for his 1992 conviction and was still on parole when he orchestrated the fraud scheme in Kentucky.
According to testimony at trial, Westine, Cornell, and others solicited money from investors, by intentionally making false statements regarding the success of their oil production business. They misled investors to believe that oil was being produced, when in fact it was not, and also misled investors to believe that the oil companies Westine operated had been in the oil production business for decades. Additionally, Westine concealed from investors that he had served more than 20 years in prison for a fraud scheme and was still on parole.
Westine and his co-defendants used aliases and fictitious company names to conceal their true identities from both investors and authorities and they defrauded more than 240 investors, nationwide. Two of Westine’s other co-defendants, Michael Hicks and Henry Irving Ramer, were previously convicted and sentenced, to three years imprisonment and thirteen years imprisonment respectively, for their roles in the scheme.
The investigation was initiated based on investor complaints submitted to the Kentucky Department of Financial Institutions, Division of Securities.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Tommy D. Coke, Inspector in Charge of the U.S. Postal Inspection Service; Pittsburg Division; and Charles Vice, Commissioner of the Kentucky Department of Financial Institutions, jointly made the announcement.
The investigation was conducted by the U.S. Postal Inspection Service, including Postal Inspector Roberta Bottoms, and the Kentucky Department of Financial Institutions, Division of Securities.
Assistant U.S. Attorneys Ken Taylor and Neeraj Gupta prosecuted this case on behalf of the federal government
Bryant Woman Pleads Guilty to Conspiracy in Scheme to Steal Feeding Program FundsRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Francine Leon, 42, of Bryant, pled guilty to an Information charging her with conspiring to commit wire fraud. The charge relates to a conspiracy to fraudulently obtain United States Department of Agriculture (USDA) program funds intended to feed children in low income areas during the school year.
Today’s plea hearing took place in Little Rock before United States District Judge James M. Moody, Jr. Judge Moody will sentence Leon at a later date.
The USDA funds the Child and Adult Care Feeding Program, which includes an at-risk after school component. In Arkansas, the feeding programs are administered by the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. Once approved, they can provide meals as part of the feeding program and be reimbursed based on the number of eligible meals they serve.
According to facts read at the plea hearing, Leon operated as a sponsor for a feeding program through an organization called "Brighter Kids, Brighter Futures." At times during the period charged in the Information, Leon approved sites in Cotton Plant, Wheatley, Poplar Grove, Morrilton, Brinkley and West Helena. Leon admitted that she was recruited by former DHS employee Tonique Hatton—who is indicted on similar charges in case number 4:14-cr-000250 JM—and another former DHS employee to participate. They explained that they would do all of the paperwork and make sure Leon received the maximum amount possible for each Site. They did this through overstating the number of children that were fed. In exchange, out of the money she received, Leon paid cash initially back to Hatton and then later to the second DHS employee. Leon received a total of approximately $1,003,630. Leon withdrew approximately $534,710 in cash. Leon paid Hatton between approximately $100,000 - $110,000 and the other DHS employee between approximately $60,000 - $80,000.
Leon is the third person to plead guilty concerning USDA feeding program funds. The previous charges filed in this investigation and Leon’s information detail alleged fraud involving over $10 million in USDA feeding program funds. Kattie Jordan and Christopher Nichols previously pled guilty to conspiracy to commit wire fraud on August 3, 2015 and January 15, 2016, respectively.
The statutory penalty for conspiracy to commit wire fraud is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than three years supervised release.
The investigation is ongoing and is being conducted by the USDA–Office of Inspector General, Federal Bureau of Investigation, Internal Revenue Service–Criminal Investigations, and United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana Harris and Allison W. Bragg. If you are aware of any fraudulent activity regarding these feeding programs, please email that information to [email protected].
Brothers Sentenced to 20 Years for Running Violent Human Trafficking EnterpriseRead the Press Release
PHILADELPHIA – Mykhaylo Botsvynyuk, 38, and Yaroslav Churuk, 48, both of Ukraine, were each sentenced today to 20 years in prison for their roles in a human trafficking enterprise. The brothers were convicted at trial, on February 24, 2015, of conspiracy to violate RICO, in relation to several predicate offenses in furtherance of the conspiracy, including: a) peonage; b) involuntary servitude; c) extortion and attempted extortion; d) and several immigration offenses, including bringing aliens into the United States at a place other than a designated port of entry, encouraging or inducing illegal entry of aliens, transporting aliens, and harboring illegal aliens for purposes of financial gain. At the 2015 trial, the government presented the testimony of seven victims of trafficking and several family member victims from Ukraine who received extortionate threats of physical harm from other members of and associates of the enterprise.
From the Fall of 2000 through the Spring of 2007, members of the enterprise lured Ukrainian nationals into the United States with promises of good-paying jobs, room and board, and the opportunity to live and work in the United States to earn up to $500 per month and/or approximately $10,000 after three years’ work. The criminal organization provided the smuggled workers with all of the necessary travel documents and costs, including false travel documents, plane and/or bus tickets, hotel money, cash for travel expenses, visas to Mexico, and even provided attorneys to assist those detained by U.S. immigration authorities upon crossing the Mexico/U.S. border. Once in the United States, the smuggled workers were divided up and each assigned to work for defendant Mykhaylo Botsvynyuk, Omelyan Botsvynyuk, Yaroslav Churuk or Stepan Botsvynyuk. Each brother had a “crew” of workers that were placed in various cities to do nighttime labor in large retail stores cleaning and waxing floors. The evidence at trial established that the Botsvynyuk brothers instituted a reign of terror and a climate of fear to maintain their workforce and prevent them from escaping. The defendant participated in the physical abuse and beatings of some of the workers. The violence that enterprise members instituted against the victims included rape of female workers, beatings, kicks, slaps and punches against the male workers. The victims were not paid for their work and received a paltry stipend for food.
In addition to the prison terms, U.S. District Court Judge Paul S. Diamond ordered each to: serve three years of supervised release, pay joint and several restitution in the amount of $288,272, and pay a $100 special assessment.
Omelyan and Stepan Botsvynyuk were convicted in a separate trial and sentenced to life plus 20 years, and 20 years in prison, respectively.
The case was investigated by the Joint FBI Organized Crime/ICE Human Trafficking Alien Smuggling Task Force. Assistance was provided by Pennsylvania State Police, the Philadelphia Police Department, the Department of Labor Office of Inspector General, Toronto Police Department, German National Police, Berlin State Police, Ukraine Security Service, US National Central Bureau, the U.S. Department of Justice Office of International Affairs, and INTERPOL. It is being prosecuted by Assistant U.S. Attorneys Daniel A. Velez and Michelle Morgan.
Brothers Convicted for their Participation in an Identity Theft SchemeRead the Press Release
Following a five-day trial before United States District Court Judge William P. Dimitrouleas, a jury convicted two brothers of all seven counts in the indictment for their participation in an identity theft scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcements Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
Bechir Delva, 24, and Dan Kenny Delva, 27, both of Miramar, were each convicted of one count of conspiracy to possess fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(b)(2), one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and five counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). The defendants were remanded into custody following their conviction.
According to evidence presented at trial, the defendants conspired to possess and did possess debit cards and over 1,600 Social Security numbers issued to other persons. To protect the stolen items in their possession, the defendants possessed several firearms, including an AR-15 rifle, a SIG 522 rifle and a .380 pistol. At trial, eight victims testified that they neither knew the defendants nor authorized them to possess their Social Security numbers and other personal information.
The defendants are scheduled to be sentenced by United States District Court Judge William P. Dimitrouleas on May 11, 2016.
Mr. Ferrer commended the investigative efforts of IRS-CI and ICE-HSI. The case is being prosecuted by Assistant U.S. Attorney John R. Byrne.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Brooke County, WV man pleads guilty to methamphetamine traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Charles A. Marker, 40, of Wellsburg, West Virginia, pled guilty in federal court to methamphetamine trafficking, United States Attorney William J. Ihlenfeld, II, announced.Throughout 2015, Marker conspired with additional individuals to manufacture, possesses, and distribute methamphetamine in Brooke County, West Virginia.
Marker pled guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine.” He faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Vogrin prosecuted the case on behalf of the government. The Hancock, Brooke, Weirton Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James E. Seibert presided.
Brewster Man Convicted by Jury of Assaulting a Park Ranger on Cape Cod BeachRead the Press Release
BOSTON – Following a three-day trial, a federal jury in U.S. District Court in Boston convicted a Brewster man for assaulting a Park Ranger on a federally-protected beach in Eastham, Mass.
Donald L. Savage, 57, was convicted of assaulting a federal officer. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for May 26, 2016.
On June 6, 2015, Savage and his wife requested permission to park in a restricted lot at the Coast Guard Beach, which is part of the Cape Cod National Seashore in Eastham. Park attendants granted Savage permission to park for 10 minutes, and instructed him not to go on the protected beach. After 30 minutes, Savage had not left the beach and the gate attendants requested assistance from a Park Ranger. When the Ranger arrived and spoke with Savage, he refused to provide identification despite repeated requests. Savage became hostile and the Ranger requested that he sit on the ground. Eventually, Savage provided a driver’s license, but after a few minutes of sitting he got up and began a physical altercation with the Ranger. During the altercation, which was captured on the Ranger’s body camera, Savage bit the Ranger’s right ring finger causing a significant injury. The Ranger drew his Taser and ordered Savage to the ground. After sitting on the ground for five minutes, Savage got up and again physically confronted the Ranger at which point the Ranger tased Savage. Within minutes, additional law enforcement officers arrived.
The charge of assaulting a federal officer provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Leslie Reynolds, Chief Ranger of Cape Cod National Seashore; and Eastham Police Chief Edward Kulhawik, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
Bethany Man Charged with Manufacturing Counterfeit CurrencyRead the Press Release
Oklahoma City, Oklahoma – On February 23, 2016, DANIEL JOHNSON, of Bethany, Oklahoma, was charged by complaint in the Western District of Oklahoma with manufacturing counterfeit currency.
According to an affidavit in support of the complaint, U.S. Secret Service agents obtained a search warrant for a commercial office in west Oklahoma City on February 19, 2016. Among other things, agents had learned that nineteen discarded stainless steel plates with faded images of Federal Reserve notes had been discovered in a dumpster near the office. When they executed the search warrant, they found an industrial printing press, ink, and plates designed to stamp sheets of counterfeited currency together. They also found personal mail addressed to Johnson, who had been under investigation for counterfeiting for several months.
Johnson’s initial appearance took place today before United States Magistrate Judge Shon Erwin.
The crime of manufacturing counterfeit currency carries a maximum penalty of twenty years in prison, three years of supervised release, and a fine of $250,000.
"The Secret Service is committed to protecting our financial system and preserving the integrity of U.S. currency," said Joseph Slawinski, Assistant to the Oklahoma City Special Agent in Charge. “The Secret Service appreciates the support of the U.S. Attorney’s Office, U.S. Postal Inspection Service, IRS-Criminal Investigations, Homeland Security Investigations, FBI, Oklahoma Highway Patrol, the Oklahoma City Police Department, the Moore Police Department, the Norman Police Department, and the Oklahoma Bureau of Narcotics and Dangerous Drugs for their assistance, as well as numerous other law enforcement partners who work in cooperation with the Oklahoma City Economic and Identity Crimes Task Force throughout the state of Oklahoma.”
Reference is made to the complaint and other public filings for further information. The complaint is only an allegation and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial, at which the government must prove guilt beyond a reasonable doubt.
This case is the result of an investigation by the Oklahoma City Economic and Identity Crimes Task Force, which is hosted by the United States Secret Service. It is being prosecuted by Assistant U.S. Attorney Charles W. Brown.
Assisted Living Facility Manager Indicted for Stealing Elderly Residents’ Identities to Obtain Credit CardsRead the Press Release
Baltimore, Maryland – A federal grand jury indicted Salah Eldean Sood, age 34, of Baltimore, today on charges arising from a scheme to open credit card accounts using the stolen identity information of elderly persons who were in Sood’s care at Holland Manor Eldercare, an assisted living facility in Towson, Maryland.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services (HHS); Chief James W. Johnson of the Baltimore County Police Department; Baltimore County State’s Attorney Scott Shellenberger; and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division (SSA).
According to the four count indictment, Sood managed Holland Manor Eldercare. From July 2014 to January 2016, Sood used the names and social security numbers of three elderly persons who resided at the assisted living facility to apply for and receive six credit cards from a bank. Sood falsely represented himself to the bank as the resident in whose name he applied for the credit card. Sood added himself as an authorized user on those accounts and made over $75,000 in purchases using the accounts.
Sood faces a maximum sentence of 30 years in prison and a $1 million fine for bank fraud, and a mandatory minimum of two years in prison consecutive to any other sentence imposed on each of three counts for aggravated identity theft. An initial appearance has not yet been scheduled. Sood is detained in federal custody.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’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 fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended HHS, the Baltimore County Police Department, Baltimore County State’s Attorney’s Office and SSA for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Lauren E. Perry and Roann Nichols, who are prosecuting the case.
Wednesday 24 February 2016
Youngstown man faces federal firearm and drug chargesRead the Press Release
A federal grand jury returned an 11-count indictment charging Raymond R. Ingram, 36, of Youngstown, with distributing crack cocaine, heroin and buprenorphine, maintaining a drug premises and being a felon in possession of a firearm and ammunition, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
Ingram distributed crack cocaine, heroin and buprenorphine on various dates in May 2015. He maintained a place on Stewart Avenue in Youngstown for the purpose of distributing crack cocaine and heroin, according to the indictment.
Ingram also possessed a Smith & Wesson, model SW9VE, 9mm semi-automatic pistol and ammunition, despite a prior felony conviction in the Medina County Court of Common Pleas in 2010, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mahoning Valley Law Enforcement Task Force. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Washington State Man, Brother and Sister-In-Law Arrested and Charged in A Scheme to Defraud Federal Research FundingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, NY—U.S. Attorney William J. Hochul, Jr. announced today that Haifang Wen, aka Harry, 41, of Pullman, WA, his brother Bin Wen, aka Ben, 44, and Ben’s wife Pang Wen, 43, aka Jessica, both formerly of Horseheads, NY and most recently of Great Falls, VA, were arrested and charged by criminal complaint with conspiring to and making false material statements to federal agencies, perpetrating a wire fraud scheme, and conspiracy to engage in financial transactions with the proceeds of the false statement and wire fraud schemes. The charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine.
“As charged, the defendants took money intended to foster innovative research by small businesses, and instead used for their own personal use,” said U.S. Attorney Hochul. “This fraud scheme had the effect of depriving deserving businesses of the opportunity for research funds, while simultaneously hurting the very Western New York communities where the research and work were most needed. This Office will continue to protect federal taxpayers, the agencies that expend public money, and legitimate businesses which seek to fairly compete for research dollars.”
Assistant U.S. Attorney Bradley E. Tyler, who is handling the case, stated that according to the complaint, the defendants engaged in a scheme to defraud the federal government of federal research funds that were awarded to companies controlled by the defendants. Haifang Wen, Bin Wen and Pang Wen are accused of:
• fabricating letters of support and investment;
• providing false information in research grant proposals and reports regarding business entities, business employees, business/research facilities, matching funds and investments; and
• providing falsified reports and emails regarding how federal research funds were expended.The defendants received approximately 30 grants totaling approximately $8,000,000 from federal agencies, including the National Science Foundation, the Department of Energy, the Department of Transportation and the U.S. Department of Agriculture. The grant award proceeds were to be used for the development of asphalt composition technologies. Grant award funds were initially deposited into bank accounts controlled by the defendants in Horseheads and Elmira, NY, to then be distributed for the defendants’ personal use, and not the technology development represented in their grant applications.
The defendants will make initial appearances at a later date in the Western District of New York.
The criminal complaint is the result of a joint investigation by special agents with the National Science Foundation, Office of Inspector General, the Internal Revenue Service, Criminal Investigations, under the direction of Special Agent in Charge Shantelle Kitchen, New York Field Office, Special Agent in Charge Teri Alexander, Seattle Field Office, and Special Agent in Charge Thomas Jankowski, Washington DC Field Office, the Department of Transportation, Office of Inspector General, under the direction of Special Agent in Charge Douglas Shoemaker and the Federal Bureau of Investigation, under the direction of Special Agent in Charge Frank Montoya, Jr., Seattle Division, and Adam S. Cohen, Buffalo Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Video Poker Business Owner Sentenced to PrisonRead the Press Release
Contact Person: Jim May (803) 929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles stated that Larry Flynn, a/k/a L.W., age 40, of Richland County, South Carolina, was sentenced in federal court in Columbia, South Carolina, for operation of an illegal gambling business, a violation of 18 U.S.C. § 1955; tax evasion, a violation of 26 U.S.C. § 7201; and failure to pay taxes, a violation of 26 U.S.C. § 7203. Senior United States District Judge Joseph F. Anderson of Columbia sentenced Flynn to 15 months in the Bureau of Prisons, plus three years supervised release, and ordered Flynn to pay $251,000 in restitution to the Government.
Evidence presented during the plea and sentencing hearings showed that Mr. Flynn ran the illegal video poker business called Magic Minutes from 2011-13. Magic Minutes placed video poker machines throughout the state, generally in gas stations, liquor stores and party shops. The machines allowed gamblers for a fee to play poker, black jack, keno and other games of chance – with the ability to cash out their winnings with the owners of the stores where the machines were housed. Magic Minutes was a profitable illegal gambling business, in two years making well over a million dollars. However, during this same time, the defendant paid no taxes and had members of his family on Medicaid.
The case was investigated by agents of the FBI, SLED, IRS, as well as the offices of the South Carolina Attorney General and the United States Attorney’s Office. Assistant United States Attorneys Jim May and Jay Richardson of the Columbia United States Attorney’s Office prosecuted the case.#####
Troy Man Pleads Guilty to Health Care FraudRead the Press Release
ALBANY, NEW YORK – Michael VonFricken, age 44, of Troy, New York, pled guilty today to obtaining false receipts for orthodontic services and submitting them to his union’s health care plan, announced United States Attorney Richard S. Hartunian.
VonFricken was charged with health care fraud for obtaining $32,732 in cash reimbursements from the Health and Welfare Plan of the Plumbers and Steamfitters, Local Union Number 7. Between July 1, 2008 and March 5, 2015, he submitted approximately 17 fake receipts for orthodontic work that he did not receive.
U.S. District Judge Mae A. D’Agostino is scheduled to sentence Michael VonFricken on June 21, 2016. His brother John VonFricken, age 50, also of Troy, was separately charged with fraudulently obtaining $54,600 in cash reimbursements from the same union. John VonFricken also pleaded guilty and is scheduled to be sentenced by Judge D’Agostino on June 3, 2016.
The convictions carry 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 the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.
Tohatchi Man Arrested on Federal Murder ChargeRead the Press Release
ALBUQUERQUE – Dennison Hale, 42, an enrolled member of the Navajo Nation who resides in Tohatchi, N.M., made his initial appearance today in federal court in Farmington, N.M., on a criminal complaint charging him with murder. Hale remains in custody pending a preliminary hearing and a detention hearing, both of which are scheduled for February 26, 2016, in federal court in Albuquerque, N.M.
Hale was arrested on Feb. 23, 2016, by the FBI on a criminal complaint alleging that he murdered a Navajo woman on the Navajo Indian Reservation in San Juan County, N.M. The criminal complaint alleges that on Feb. 20, 2016, Hale struck the victim in the head and fled from the scene, the victim’s home in Hogsback, N.M. The victim was subsequently transported by helicopter to the hospital, where she was pronounced dead.
If convicted of the crime charged in the criminal complaint, Hale faces a statutory maximum penalty of life imprisonment. Charges in criminal complaints are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Farmington office of the FBI and the Navajo Nation Department of Public Safety. Assistant U.S. Attorney Michael D. Murphy is prosecuting the case.
This case was brought as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Ten Defendants Sentenced for Roles in Methamphetamine Distribution ConspiracyRead the Press Release
WICHITA FALLS, Texas — Ten defendants who pleaded guilty in October 2015 to their respective roles in a methamphetamine distribution conspiracy that operated in Wichita Falls, Texas, from approximately March 2014 to August 2015, were sentenced on Monday by U.S. District Judge Reed C. O’Connor, announced U.S. Attorney John Parker of the Northern District of Texas.
Nine residents of Wichita Falls received the following federal prison sentences:Mark Anthony Peysen, 54, 180 months
Tamara Ann Beasley, 43, 51 months
Clinton Ray Durham, 47, 63 months
John Monroe Drullinger, Jr., 53, 155 months
Chad Edward Fluharty, 36, 110 months
Juan Anthony Gabaldon, 31, 168 months
Vincent Mark Hinson, 36, 151 months
Curtis Lisle Shawver, 28, 168 months
Cody Shane Walsh, 30, 240 monthsDallas resident Michael David Thompson, 50, was sentenced to 168 months in federal prison.
Each pleaded guilty to one count of conspiracy to possess with intent to distribute five grams or more of methamphetamine, a Schedule II controlled substance. A total of 13 were charged in the conspiracy. One defendant, James Anthony Streadwick, 54, of Wichita Falls, pleaded guilty to the same offense and was sentenced last month to 292 months in federal prison. Two defendants, William Muyleart and Kimberly Paulk Shaffer, remain fugitives.
According to documents filed in the case, from approximately March 2014 to August 12, 2015, these defendants conspired together, and with others, to possess with intent to distribute and distribute five grams or more of methamphetamine. They arranged to acquire the methamphetamine and used residences and other locations in the Northern District of Texas to package and distribute it to customers. They delivered and distributed, and coordinated the delivery and distribution of, quantities of methamphetamine. They also acted as intermediaries and brokers to negotiate the acquisition, price, sale and delivery of the methamphetamine, as well as the collection of payment for the methamphetamine.
The Wichita County District Attorney’s Office, the Wichita Falls Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Mary Walters was in charge of the prosecution.
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Steve Casaus Pleads Guilty to Federal Firearms ChargeRead the Press Release
ALBUQUERQUE – Steve Casaus, 43, of Albuquerque, N.M., pleaded guilty this morning in federal court to being a felon in possession of a firearm and ammunition. The guilty plea was announced by U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso, Texas, and Chief Gorden Eden, Jr., of the Albuquerque Police Department (APD).
Casaus was charged in a criminal complaint on April 25, 2014, with unlawfully possessing a firearm and ammunition on April 21, 2014, in Bernalillo County, N.M. According to the criminal complaint, Casaus was arrested after APD officers after they observed what they believed to be a drug deal, and based on an outstanding arrest warrant for failing to appear on a pending state court case. The complaint alleged that at the time of his arrest, Casaus was in possession of $20,790.00 in cash, 1.3 grams of methamphetamine, drug paraphernalia, and a firearm loaded with six rounds of ammunition.
Casaus was subsequently indicted on June 11, 2014, and charged with being a felon in possession of firearms and ammunition on April 21, 2014, in Bernalillo County. Casaus was prohibited from possessing firearms or ammunition because of his prior felony convictions of disarming a peace officer, aggravated battery on a peace officer, trafficking by possession with intent to distribute and conspiracy to commit unlawful taking of a motor vehicle.
The federal prosecution of Casaus was stayed during the pendency of unrelated state court proceedings. Casaus was arrested on the federal charge in Jan. 2016, after he was transferred into federal custody from state custody.
During today’s change of plea hearing, Casaus pled guilty to the indictment. The guilty plea was entered without the benefit of a plea agreement.
At sentencing, Casaus faces a maximum sentence of ten years in federal prison. Casaus remains detained pending his sentencing hearing, which has yet to be scheduled.
The case was investigated by the Albuquerque office of Homeland Security Investigations and APD, with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney David M. Walsh is prosecuting the case.
The case is being prosecuted as part of the federal “worst of the worst” anti-violence initiative. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior felony convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
St. Thomas Man Sentenced to Four Months in Prison for Impersonating a Federal Officer and BlackmailRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez sentenced today George W. Lewis, Jr., 50, of St. Thomas, to four months in prison and one year of supervised release for impersonating a federal officer and blackmail, United States Attorney Ronald W. Sharpe announced. Judge Gomez also ordered Lewis to perform 400 hours of community service, and pay a special assessment of $125.
Lewis pleaded guilty on November 6, 2015, to two counts of an indictment charging him with impersonating a federal officer and blackmail. According to court records, between October 2014 and January 2015, Lewis presented himself as being employed by immigration. In that pretend capacity, he befriended an illegal alien. When that relationship ended, Lewis threatened to have the illegal alien deported even though Lewis knew he was not an employee of immigration and had no authority to do so.
This case was investigated by Immigration and Customs Enforcement’s Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Everard E. Potter.
Smyrna, Tennessee Resident Guilty of Supplemental Security Income FraudRead the Press Release
Claimed she lived alone in Water Valley, Kentucky to receive benefits
PADUCAH, Ky. – A Smyrna, Tennessee woman pleaded guilty in United States District Court last week before Senior U.S. District Judge Thomas B. Russell for lying about where she lived in order to receive Supplemental Security Income, announced United States Attorney John E. Kuhn, Jr. Supplemental Security Income (SSI) is a Federal income supplement program funded by general tax revenues (not Social Security taxes) that is designed to provide cash to aged, blind, and disabled people, who have little or no income, in order to meet basic needs for food, clothing, and shelter.
According to the plea agreement, Mary Jane Higgins, 64, applied for and was denied SSI benefits in March of 2001 due to her co-habitation with her husband in Smyrna, Tennessee and her husband’s income being too high for qualification of benefits. Higgins then re-applied for SSI benefits in July of 2001 and claimed that she had moved from Smyrna, Tennessee to Water Valley, Kentucky. The defendant claimed that by living in Water Valley, she no longer lived with her husband and no longer enjoyed the benefits of his income, which earlier had precluded her eligibility for SSI benefits. The defendant’s reapplication was approved and defendant received SSI payments from July of 2001 through July of 2014.
Furthermore, on April 5, 2010, April 6, 2011, and May 7, 2013, Higgins completed interviews for redetermining her eligibility for SSI payments. On all three occasions, Higgins claimed to live alone in Water Valley, when, in fact, she was actually living with her husband in Smyrna. During the time periods discussed in the interviews, her husband’s income would have continued to prevent her eligibility for SSI benefits.
On July 24, 2014, Higgins came to the Social Security Administration Office in Mayfield, Kentucky, for a pre-scheduled interview with SSA personnel regarding her SSI benefits. Higgins claimed that she was still separated from her husband and living in Water Valley. The defendant also claimed that her husband had dementia and that she hadn’t seen her husband in several months. However, her husband had actually driven her to the interview that day and was outside in the parking lot sitting in their car during the interview when Higgins was making these false statements.
Higgins has agreed to pay $120,850.88 of restitution to the United States Commissioner of Social Security and the Kentucky Department of Medicaid Services. Sentencing is scheduled before Senior Judge Russell on June 14, 2016 in Paducah.
This case is being prosecuted by Assistant United States Attorney Nute A. Bonner and was investigated by the Social Security Administration Office of the Inspector General.
Slidell Woman Sentenced for Lying to Federal AgentsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TRACY C. HARTMAN, 49, of Slidell, was sentenced today for lying to federal agents.
U.S. District Judge Martin L.C. Feldman sentenced HARTMAN to three years probation. Additionally, HARTMAN was ordered to pay $9,443 in restitution to the Small Business Administration (SBA) which is the amount of money lost by the SBA while the loan was suspended.
According to court documents, on October 21, 2015, HARTMAN pled guilty to one count of a Bill of Information for making false statements to an agency of the United States. According to the Bill of Information, on January 4, 2006, HARTMAN and her husband were approved for a SBA Disaster loan in the amount of $182,700, resulting from Hurricane Katrina damages.
HARTMAN and her husband defaulted on the SBA disaster loan. As a result of the loan default, in or about June 2010, the SBA began garnishment proceedings for Mr. Hartman’s payroll checks from St. Bernard Parish. In or about December 2011, the SBA stopped receiving the HARTMAN’s garnishment payments from St. Bernard Parish. A letter, purporting to be from the SBA, was received by St. Bernard Parish claiming the debt had been paid and to stop the garnishment. The letter was a forgery and was not prepared by the SBA. On or about April 20, 2012, HARTMAN made a false statement to federal authorities that she did not know the origin of the fraudulent letter which was hand delivered to the St. Bernard Parish government by her husband on or about November 29, 2011. After further investigation, it was determined that HARTMAN composed the letter.
U.S. Attorney Polite praised the work of the Small Business Administration, Office of Inspector General in investigating this matter. Assistant United States Attorney Carter K. D. Guice, Jr. of the Fraud Unit was in charge of the prosecution.
Rochester Man Sentenced on Marijuana and Gun ChargesRead 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 Laverne Singletary, 49, of Rochester, NY, who was found guilty following a federal jury trial of possessing marijuana and being a felon in possession of a firearm, was sentenced to 57 months in prison by Chief U.S. District Court Judge Frank P. Geraci.
Assistant U.S. Attorneys Craig Gestring and Charles E. Moynihan, who handled the case, stated that on October 6, 2012, Singletary, a four-time convicted felon, was arrested on Roth Street in Rochester after law enforcement attempted to stop him for carrying an open beer can on a public sidewalk. Upon being approached by law enforcement officers, the defendant ran but was caught by the officers after a short foot pursuit. Singletary resisted attempts by officers to place him in handcuffs. Once handcuffed, officers stood the defendant up from the ground and found a Hungarian-made 7.65mm semi-automatic pistol. In searching Singletary, officers also located thirteen bags of marijuana.
The sentencing is the culmination of an investigation on the part of on the part of Special Agents of the Bureau of Alcohol Tobacco, Firearms and Explosives under the direction of Delano A. Reid, Special Agent in Charge, the Monroe County Office of Probation and Community Corrections, under the direction of Robert J. Burns, Chief Probation Officer and the Rochester Police Department under the direction of Chief Michael Ciminelli.
Rochester Man Charged with Possession and Receipt of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Pedro Cruz, 39, of Rochester, NY, was arrested and charged by criminal complaint with receipt and possession of child pornography. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 20 years and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that according to the complaint, the investigation began when law enforcement officers discovered the downloading of child pornography related to a website and a particular user name. The investigation led to the execution of a search warrant at Cruz’s residence. Forensic previews of some computer-related items seized from the defendant’s residence revealed thousands of images of child pornography on a laptop computer, thousands of images of child pornography on a desktop computer, over 30,000 images of child pornography on an external hard drive, and over 20,000 images of child pornography on various CDs and DVDs.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Marian W. Payson and was released on conditions including home detention and electronic monitoring.
The complaint is the culmination of an investigation on the part of the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Special Agent in Charge Adam S. Cohen. The task force consists of the Monroe County Sheriff’s Office, the Rochester Police Department, the Greece Police Department and Immigration and Customs Enforcement, Homeland Security Investigations.
Retired Marine Pleads Guilty to Fatally Stabbing his Girlfriend, Dismembering her Body with a Machete and Dumping her Remains in the Panamanian JungleRead the Press Release
Assistant U.S. Attorneys W. Mark Conover (619) 546-6763 or Shane P. Harrigan (619) 546-6981
NEWS RELEASE SUMMARY – February 24, 2016
SAN DIEGO – Over four years after the disappearance and death of Yvonne Baldelli, Brian Karl Brimager pleaded guilty in federal court today to her murder, admitting that he fatally stabbed Baldelli in the back with a knife, dismembered her body with a machete and disposed of her remains in a remote jungle on the Panamanian island where they lived as a couple for two months. Baldelli’s skeletal remains were discovered by a Panamanian citizen approximately 21 months after her murder.
Brimager pleaded guilty before U.S. District Judge Jeffrey T. Miller to an information charging him with Foreign Murder of a United States National. In his guilty plea, Brimager also admitted that after he murdered Baldelli, he obstructed the investigation into her murder by destroying, concealing and disposing of evidence, including a blood-stained mattress and Baldelli’s dog, clothes and jewelry; accessing Baldelli’s email account after her murder and impersonating Baldelli in emails sent from her account to friends and family; withdrawing money from Baldelli’s bank account in Costa Rica after her death; and providing false statements to a federal agent – all in an attempt to make it seem as though Baldelli were alive and well and traveling with another man in Costa Rica.
As a result of his guilty plea, Brimager faces up to life in prison. Brimager has been in federal custody since June 2013. A sentencing hearing before Judge Miller is scheduled for May 25, 2016 at 10 a.m.
“Brian Brimager took a young woman’s life in a heinous way and then further victimized her family by creating a cruel lie that she was happily traveling the world with another man,” said U.S. Attorney Laura Duffy. “Now that Brimager has finally admitted his crime, we hope that the truth, and knowing that their daughter’s murderer will serve decades in prison, will give this grieving family a sense of justice and peace.”
Duffy added: “This prosecution was made possible by the hard work and dedication of the FBI Offices in San Diego and Panama, our colleagues in the Department of Justice, the U.S. Mission in Panama City, and most notably, the cooperation and assistance of the Panamanian Government, whose police and prosecutors enabled our office to bring this prosecution by providing access to witnesses and evidence.”
“Mr. Brimager's guilty plea is another step in obtaining justice for the victim in this case, Yvonne Baldelli,” said FBI Special Agent in Charge, Eric S. Birnbaum. “The FBI will continue to work with the U.S. Attorney's Office and our international law enforcement partners to obtain justice for Ms. Baldelli and hold Mr. Brimager accountable for her brutal murder.”
DEFENDANT Case Number: 13CR2381-JM
Brian Karl Brimager Age: 39
SUMMARY OF CHARGE
Foreign Murder of a United States National – Second Degree, Title 18, United States Code, Sections 1119 and 1111; Maximum Penalties: Life imprisonment, $250,000 fine, restitution
AGENCIES
Federal Bureau of Investigation, San Diego Division and Panama City Legal Attaché Office
U.S. Embassy, Panama City
Office of International Affairs, U.S. Department of Justice
Human Rights and Special Prosecution Section, U.S. Department of Justice
Reggie Rucker pleads guilty to using charitable donations to pay gambling debts, personal expensesRead the Press Release
Reggie Rucker pleaded guilty today in federal court to charges related to using charitable donations to anti-violence groups he led to pay his gambling debts and personal expenses, including mortgage payments, meals, and entertainment, law enforcement officials said.
Rucker, 68, of Warrensville Heights, is scheduled to be sentenced on May 23. He pleaded guilty to one count of one count of wire fraud and one count of making false statements to law enforcement.
“Today Mr. Rucker publically owned to up to his misdeeds,” said Acting U.S. Attorney Carole Rendon. “He betrayed the trust of his employees, the generous foundations, individuals, and businesses that supported him, and the entire community. I am pleased that the Cleveland Peacemakers Alliance has begun to move forward with its important work, and Mr. Rucker will be held accountable for his crimes.”
“Mr. Rucker used his position of trust to help fund his gambling habits and personal expenses, and ultimately, he betrayed those that supported his work in the community,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “The FBI will continue to work with our partners to identify and hold accountable those who chose to commit such fraud.”
Rucker served as executive director of Amer-I-Can Cleveland (Amer-I-Can), a nonprofit organization located in Shaker Heights. Rucker also served as president of the Cleveland Peacemakers Alliance (CPA), a collaboration of community organizations that employed outreach workers to resolve conflicts in Cleveland. Rucker solicited charitable contributions and deposited them into Amer-I-Can’s bank account, according to the criminal information.
From 2011 through February 11, 2015, Rucker diverted funds intended to support Amer-I-Can and CPA for his personal use and in excess of any compensation he was entitled to receive. Rucker wrote checks to himself and made withdrawals from the Amer-I-Can bank account in amounts and frequencies unrelated to the work he performed, but rather dictated by his own personal financial needs, including to pay his mortgage, entertainment, meals, travel, groceries, and dry cleaning, according to the information.
In furtherance of his scheme, Rucker falsely told current and prospective donors that Amer-I-Can had an independent board of directors to provide oversight when it did not. Rucker also filed documents under the penalties of perjury with the Internal Revenue Service that significantly understated the amount of money he took from the Amer-I-Can bank account. He also falsely claimed to certain actual and prospective donors, “I do not have a salary with Amer-I-Can,” and “We don’t have any contracts that pay me…”, according to the information.
Rucker withdrew approximately $48,000 at casino ATMs in Tampa, Las Vegas, and Cleveland, from the Amer-I-Can bank account from 2011 to 2015, including over $35,000 in 2014 alone. He also paid multiple gambling debts he incurred at a Las Vegas casino totaling $65,000 using money donated to Amer-I-Can and CPA for charitable purposes, according to the information.
In January 2013, when an employee of a Cleveland-area foundation (identified in the charges as Foundation 1) informed Rucker that “The Board (of Foundation 1) has awarded $150,000…for Peacemakers Alliance. Congrats!!!”, Rucker forwarded the email to a Las Vegas casino that he owed $20,000, stating “this is my non profit and they were a little behind getting me my money. I will not actually have this in my hands for 10 days, maybe 14 . . . I like to keep communication open so that I don’t get into any trouble. Can they work with me on this?” On March 5, 2013, Amer-I-Can received $58,751.52 of Foundation 1’s charitable funds, and on March 12, 2013, Rucker wrote a check for $20,000, funded in part by Foundation 1’s donation to Amer-I-Can, to the Las Vegas Casino to pay his gambling debt, according to the information.
In January 2014, after receiving $47,500 from a donor identified in the information as Foundation 2, Rucker wrote himself two checks totaling $40,000 from the Amer-I-Can bank account, and used a portion of this money to pay an outstanding gambling debt of $25,000 to a Las Vegas casino, according to the information.
In September 2014, Rucker incurred a $20,000 debt at a Las Vegas casino. Between November 18 and December 1, 2014, Rucker wrote himself checks totaling approximately $21,200 from the Amer-I-Can bank account and paid the Las Vegas casino $15,000 of his debt. In January 2015, after Amer-I-Can received $47,500 from Foundation 2, Rucker wrote himself a check for $10,000 and paid the remaining $5,000 he owed the Las Vegas casino, according to the information.
Rucker repeatedly solicited grants and donations from foundations, corporations and executives, but failed to disclose his diversion of charitable funds. For example, on November 19, 2014, Amer-I-Can received $10,000 from an entity identified as Foundation 4. The next day, Rucker wrote himself a check for $10,000, but later submitted a report to Foundation 4 that stated: “We appreciated the bridge support granted to us by [Foundation 4], it was helpful in being able to assist high risk and gang affiliated youth. The continued support of [Foundation 4] will be instrumental…,” according to the information.
Rucker also repeatedly cited CPA outreach workers’ lack of pay to justify his requests for additional funds, but did not disclose his personal use of charitable funds. For example, Rucker solicited funds from Foundation 1, which provided approximately $2.45 million to CPA between 2011 and 2015, by claiming that CPA workers “believe they are being disrespected and taken advantage of . . . I can’t hold them together much longer. We have come too far, put too much into this . . . None of us has money!”, according to the information.
This case is being prosecuted by Assistant U.S. Attorneys Adam Hollingsworth and Miranda Dugi following an investigation by the Federal Bureau of Investigation.
Porter Man Sentenced to 15 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that BRANDON JAMES DEAN, age 33, of Porter, Oklahoma, was sentenced to 15 months imprisonment, followed by 36 months of supervised release for FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Section 922(g)(1) & 924(a)(2).
The charges arose from an investigation by Wagoner County Sheriff’s Office and the Federal Bureau of Investigation – Violent Crimes Task Force.
The Indictment alleged that on or about May 24, 2015, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm which had been shipped and transported in interstate commerce.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Rob Wallace represented the United States.
North Texas Men Indicted for Running Health Care Fraud Scheme That Caused TRICARE to Suffer More Than $65 Million LossRead the Press Release
DALLAS — Two north Texas men, Richard Robert Cesario of Plano, Texas, and John Paul Cooper, of Southlake, Texas, have been indicted on felony offenses stemming from a health care fraud conspiracy they ran that caused TRICARE, the U.S. Department of Defense (DOD) Military Health System that provides coverage for DOD beneficiaries, to suffer more than $65 million in losses, announced U.S. Attorney John Parker of the Northern District of Texas.
Both Cesario, 44, and Cooper, 47, were arrested yesterday morning by special agents with the Federal Bureau of Investigation. Both made their initial appearances in federal court and were detained, pending detention hearings set for Tuesday, March 1, 2016, at 2:00 p.m., before U.S. Magistrate Judge David L. Horan.
TRICARE provides health coverage for DOD beneficiaries world-wide, including active duty service members, National Guard and Reserve members, retirees, their families and survivors. Among other things, TRICARE provides coverage for certain prescription drugs, including certain compounded drugs that were medically necessary and prescribed by a licensed physician.
According to the indictment that was just unsealed, Cesario founded, and both Cesario and Cooper co-owned and co-operated, CMG RX LLC. (CMGRX), a Dallas company that primarily marketed compounded pain and scar creams to current and former U.S. military members and their families on behalf of various compounding pharmacies. Cesario served as its CEO and Treasurer and Cooper served as its President and Secretary. Neither defendant had any medical, nursing or pharmaceutical licensing or education. Formed in 2014, CMGRX ceased operations in mid-2015, shortly after TRICARE announced changes to its coverage of compounded drugs.
The indictment alleges that from approximately July 2014 to mid-February 2016, Cesario, Cooper and others conspired to run a scheme to defraud TRICARE in connection with the delivery of, and payment for, health care benefits, items and services, causing TRICARE to suffer an actual loss of more than $65 million.
As part of the scheme, according to the indictment, Cesario and Cooper paid TRICARE beneficiaries $250 per month for each prescription they obtained and filled for compounded drugs, principally compounded pain creams, scar creams, migraine creams and vitamins, through one of their partner pharmacies. They disguised these payments to TRICARE beneficiaries as “grants” for participating in a medical study they referred to as a TRICARE-approved “Patient Safety Initiative” or “PSI Study” to evaluate the safety and efficacy of compounded drugs. In reality, the PSI Study was not approved by TRICARE, was not overseen by a qualified physician or medical professional, and was not designed to gather any useful scientific data relating to the safety and efficacy of any drug. Its true purposed was to compile a list of TRICARE beneficiaries who had filled prescriptions so that Cesario, Cooper and their coconspirators could calculate how much to pay the beneficiaries. Using this information, the defendants and their coconspirators compiled monthly payout lists of individuals, addresses and payment amounts.
To disguise the source of those kickbacks to TRICARE beneficiaries, according to the indictment, Cesario and Cooper created the “Freedom From Pain Foundation” and registered it as a tax-exempt charitable foundation. The foundation, however, was funded entirely by payments from Cesario and Cooper, or CMGRX accounts they controlled, and from November 2014 to June 2015, they paid $2,425,725.00 into the foundation. The defendants instructed the Freedom From Pain Foundation to write checks to the TRICARE beneficiaries in amounts indicated on the payout lists. Cesario and Cooper shared these expenses equally; each wrote checks to the Freedom From Pain Foundation for half of the total from each payout list, indicating in the checks’ memo section that it was a charitable donation.
As a further part of their scheme, the indictment alleges the defendants paid physicians $60 for each compounded pain or scar cream prescription they wrote and $30 for each compounded vitamin prescription they wrote. Typically, the prescribing physician had no prior physician/patient relationship with the TRICARE beneficiaries for whom they wrote prescriptions. In an effort to disguise these physician kickbacks, the defendants funneled them though the Freedom From Pain Foundation, under the false premise that the physicians were participating in the PSI Study.
The indictment alleges that Cesario and Cooper caused CMGRX to enter into marketing service agreements with various compounding pharmacies, with the compounding pharmacy agreeing to pay a percentage of their gross revenue received for CMGRX-generated claims. In an attempt to disguise the nature of these kickbacks, Cesario and Cooper had the pharmacies make these payments as “employee wages,” even though neither Cesario nor Cooper was a bona fide employee of any compounding pharmacy.
Cesario and Cooper are each charged with one count of conspiracy to commit health care fraud, four counts of receipt of illegal remuneration and six counts of payment of illegal remuneration. The maximum statutory penalty, upon conviction, for the conspiracy count is 10 years in federal prison and a $250,000 fine. Each of the illegal remuneration offenses carries, upon conviction, a maximum statutory penalty of five years in federal prison and a $250,000 fine. Restitution may also be ordered.
The indictment also includes a forfeiture allegation that would require the defendants, upon conviction, to forfeit to the U.S. any property traceable to the offense, including four homes in Plano, Frisco and Southlake, Texas; one home in Jacksonville, Florida; the funds in 18 bank accounts; 21 cars and trucks, including a Jaguar, a Maserati, a Ferrari, a Porsche, an Aston Martin and three Mercedes-Benz; two motor coaches; and one boat.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty.
The Federal Bureau of Investigation and Defense Criminal Investigative Service are investigating. Assistant U.S. Attorney Douglas Brasher is in charge of the prosecution.
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North Charleston Man Indicted for Possessing FirearmRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Charleston, South Carolina ---- United States Attorney Bill Nettles stated today that William L. Dodson, of North Charleston, South Carolina was charged in a 1-count indictment. William L. Dodson was charged with possession of a firearm by a convicted felon, a violation of Title 18, U. S. C. §922(g). The maximum penalty Dodson could receive is 10 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives and North Charleston Police Department and is assigned to Assistant United States Attorney Nick Bianchi of the Charleston office for prosecution.
Mr. Nettles stated that the charges in this Indictment are merely accusations and that the defendants are presumed innocent until and unless proven guilty.#####
New York Man Sentenced to 14 Years in Federal Prison for Week-Long Armed Robbery SpreeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that FRANCIS MANIGAULT, 42, of New York, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 168 months of imprisonment, followed by five years of supervised release, for committing five armed robberies during one week last summer.
According to court documents and statements made in court, MANIGAULT, armed with and brandishing a firearm, robbed George’s Market at 175 Pequonnock Street in Bridgeport on June 27, 2015; B & M Grocery and Deli at 942 East Main Street in Bridgeport on June 28; Rodriguez Market at 384 Brooks Street in Bridgeport on June 29; a Subway restaurant at 1552 Wood Avenue in Bridgeport on June 29, and West Main Street Grocery at 495 West Main Street in Stamford on July 1.
After the July 1 robbery, Stamford Police, responding to 911 calls, encountered MANIGAULT on Virgil Street and observed him throwing a handgun to the ground. He was apprehended shortly thereafter and placed under arrest. Officers then recovered a loaded 40mm handgun that MANIGAULT had discarded. The firearm was previously reported stolen in North Carolina.
MANIGAULT has been detained since his arrest. On October 19, 2015, he pleaded guilty to two counts of interference with commerce by robbery and one count of brandishing a firearm during and in relation to a crime of violence.
This investigation was conducted by the Federal Bureau of Investigation, the Stamford Police Department and the Bridgeport Police Department. The case was prosecuted by Assistant U.S. Attorney Amy C. Brown.
New York Man Sentenced to Life Plus 20 Years for 2012 White Jewelers RobberyRead the Press Release
HARRISBURG-The United States Attorney's Office for the Middle District of Pennsylvania announced that Jesse Brewer, 41, of Jamaica, New York was sentenced today to life imprisonment plus 20 years by the Honorable William W. Caldwell for Brewer’s convictions of robbery and firearms offenses following a September 2015 jury trial.
According to United States Attorney Peter Smith, the jury convicted Brewer of robbing White Jewelers in York, PA with a firearm on July 12, 2012. Brewer, along with Jamell Smallwood and Timothy Forbes, robbed the store of more than fifty Rolex watches valued at over $500,000. In the course of the robbery, Brewer shot the owner of the store, permanently disabling him. Co-defendant Jamell Smallwood of Allentown, Pennsylvania pleaded guilty previously and was sentenced to 17 years for his role in this robbery. Timothy Forbes of Allentown, Pennsylvania pleaded guilty and is awaiting sentencing.
This case was investigated by the Federal Bureau of Investigation and the York Area Regional Police Department, with assistance from the Allentown Police Department and the New York City Police Department. This case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
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Nassau Man Pleads Guilty to Unlawfully Possessing FirearmsRead the Press Release
ALBANY, NEW YORK – Cory M. Saddlemire, age 35, of Nassau, New York, pled guilty today to being a felon in possession of firearms, and to possessing firearms while subject to a protective order.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge Delano Reid of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
Saddlemire was charged by indictment on November 5, 2015 with having unlawfully possessed, in his home, a Rossi shotgun, model S201220, and a .22 caliber Marlin rifle.
Saddlemire faces 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 when he is sentenced on June 22, 2016 by U.S. District Judge Mae A. D’Agostino. 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 ATF and the Nassau Village Police Department, and is being prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.
Mexican National Pleads Guilty to Money Laundering and Drug Trafficking ChargesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Edgar Yanez-Gutierrez (31, Nayarit, Mexico) today pleaded guilty to conspiring to commit money laundering offenses and conspiring to distribute cocaine, methamphetamine, and marijuana. Yanez-Gutierrez faces a maximum term of 20 years’ imprisonment on the money laundering conspiracy charge, and a mandatory minimum term of 10 years’ imprisonment, up to life, on the drug trafficking conspiracy charge. A sentencing date has not yet been set.
According to the court documents, Yanez-Gutierrez’s plea is the latest in an investigation that has netted 28 convictions in the Middle District of Florida, for drug trafficking, money laundering, and firearms offenses, with sentences ranging from 4, up to 35 years’, imprisonment. The defendants were part of a large-scale drug trafficking organization that shipped cocaine, methamphetamine, and marijuana from California to drug distribution and money laundering cells throughout the United States, including Florida, Ohio, North Carolina, Nevada, New Jersey, New York, Alabama, and Arkansas. Yanez-Gutierrez fled from California to Mexico in 2011, but was later arrested and extradited to the United States in December 2015.
The case is being prosecuted by Assistant United States Attorney Christopher F. Murray. It was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with assistance from other federal, state, and local agencies as part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations, and those primarily responsible for the nation’s drug supply The Office of International Affairs, Department of Justice, assisted with Yanez-Gutierrez’s extradition to the United States.
Member of the Jenifer Drug Trafficking Organization Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Michael Williams, age 41, of Baltimore, Maryland, today to 10 years in prison followed by five years of supervised release for conspiring to distribute cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Commissioner Kevin Davis of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement and court documents, from September 2012 until his arrest in October 2014, Kedrick Jenifer was the head of a drug organization (Jenifer DTO) that transported cocaine and cash between Baltimore and Houston, Texas. Jenifer supplied kilograms of cocaine to Michael Williams and others for distribution in and around the Baltimore-Washington area. The Jenifer DTO obtained its cocaine from sources of supply in and around Houston. The Jenifer DTO would hide money in secret compartments in “courier vehicles” that were transported from Baltimore to Houston. The cocaine was then transported from Houston to Baltimore hidden in the courier vehicles.
In September 2012, Texas State Police stopped a courier vehicle in Chambers County, Texas. Law enforcement officers discovered approximately 30 kilograms of cocaine hidden in secret compartments within the vehicle. Between August 2013 and October 2014, approximately 30 shipments of cocaine concealed in secret compartments in the courier vehicles were made to the Jenifer DTO. During this time, Williams was frequently seen meeting with Jenifer and providing Jenifer with money in exchange for cocaine. In addition, during a separate joint FBI and Baltimore City Police Department investigation in 2014, law enforcement learned that Williams was supplying street level drug shops in Baltimore City with cocaine.
Williams admitted that during his participation in the conspiracy, the Jenifer DTO was responsible for the distribution of at least 750 kilograms of cocaine between August 2013 and October 2014.
Kedrick Arnold Jenifer, a/k/a “Ricky Jenifer,” “James Howard Collier, Jr.” and “Rick,” age 44, of Bowie, Maryland, pleaded guilty to conspiring to distribute cocaine and is scheduled to be sentenced on March 4, 2016. Eight other co-conspirators have pleaded guilty. Andre Brewer, age 36, of Jessup, Maryland; Brooke Renee Lunn, a/k/a “Brooke Thomas” and “Brooke Renee,” age 49; William Hegie, age 55; Kermit Clark, age 45; and Elroy Johnson, age 49, all of Baltimore; and Tyrone Allen, age 44, of Bowie, Maryland, and Thomas Simmons, age 38, of Hampton, Virginia, were sentenced to between 10 and 16 years in prison.
United States Attorney Rod J. Rosenstein praised the DEA, IRS Criminal Investigation, Baltimore City and County Police Departments, and the FBI for their work in the investigation, and expressed his appreciation to the United States Attorney’s Offices for the Southern District of Texas and the Southern District of New York for their assistance. Mr. Rosenstein thanked Assistant United States Attorney John W. Sippel, Jr., who is prosecuting this Organized Crime Drug Enforcement Task Force case.
Media Advisory - Law Enforcement Officials to Announce Multiple Arrests of Members of Central Florida Drug Trafficking OrganizationRead the Press Release
WHO: A. Lee Bentley, III, United States Attorney for the Middle District of Florida
Jeffrey T. Walsh, Assistant Special Agent in Charge, Drug Enforcement Administration, Orlando District Office, Central Region of Florida
Sheriff Jerry L. Demings, Orange County Sheriff's Office
WHAT: Press Conference
Federal, state, and local law enforcement agencies to announce charges involving several individuals in a multi-state drug trafficking conspiracy.
WHEN: THURSDAY, FEBRUARY 25, 2016, at 1:00 P.M. EST
WHERE: United States Attorney’s Office
400 W. Washington Street, Suite 3100
Orlando, FL 32801
OPEN PRESS
NOTE: All media must present government-issued photo I.D. (such as a driver’s license). Media may begin arriving at 12:30 P.M. EST.
Marana Man Sentenced for Saguaro Damage at Ironwood Forest National MonumentRead the Press Release
TUCSON, Ariz. – Last week, John Samuel Rahe, 50, of Marana, Ariz., was sentenced by U.S. Magistrate Judge Leslie A. Bowman to one year of probation and ordered to pay $10,000 to the Bureau of Land Management for damaging vegetation and soil at Ironwood Forest National Monument. Rahe previously pleaded guilty to resource damage and littering.
In March 2015, Rahe drove his utility vehicle illegally off road within National Monument boundaries, running over and destroying two small Saguaros, a Palo Verde tree, and over thirty more cactuses and shrubs. When his vehicle became stuck, he attempted to free it by attaching its winch to an eight-foot Saguaro, resulting in the toppling of that cactus.
The investigation was conducted by the Bureau of Land Management. The prosecution was handled by Brian R. Decker and Sarah B. Houston, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-15-961-TUC-LAB
RELEASE NUMBER: 2016-017_ Rahe
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Leader of Conspiracy to Rob an Owings Mills Jewelry Store also Admits to a Kidnapping, a Home Invasion Robbery and Brandishing a GunRead the Press Release
Baltimore, Maryland – Stanislav “Steven” Yelizarov, age 26, of Pikesville, Maryland, pleaded guilty today to a robbery conspiracy, kidnapping, and brandishing a firearm in relation to a crime of violence, in connection with the robbery of a jewelry store, including a carjacking and kidnapping.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, Yelizarov was the leader of a conspiracy to rob an Owings Mills jewelry store, and was also the leader of an armed home invasion robbery designed to obtain firearms, which were subsequently used in the robbery of the jewelry store.
Specifically, on July 22, 2012, Yelizarov, his brother MaratYelizarov, Aleksy Sosonko, and Grigory Zilberman robbed a home in Reisterstown, Maryland. Zilberman was familiar with the layout of the home, having been there as a guest on a number of occasions. Zilberman knew that the residents of the home owned firearms and he had handled and fired some of the weapons. After conducting surveillance of the home for several days prior to the robbery, at 2:30 a.m. on July 22, 2012, S. Yelizarov, Sosonko, M. Yelizarov, and Zilberman traveled to the home in Reisterstown. Dressed all in black and wearing ski masks and latex gloves, the co-conspirators entered the home through the unlocked garage door. S. Yelizarov was armed with a handgun when they entered the residence. Sosonko, M. Yelizarov, and Zilberman grabbed long guns from the residence and carried them throughout the home. A resident of the home was asleep when the four robbers entered his bedroom and woke him up, pointing guns at him and shining flashlights in his eyes. S. Yelizarov beat the resident when he tried to resist while M. Yelizarov tied up the resident with a belt and a cord. For approximately one hour the robbers ransacked the home looking for firearms and other valuables. After the robbers left, the resident was able to free himself and call police. The resident was taken to the hospital for treatment of his injuries. Among the items stolen from the house were 10 long guns (rifles and shotguns), a crossbow, a laptop computer, and jewelry. Numerous electronic devices including computers and televisions were destroyed during the robbery. The value of the items stolen was approximately $10,000.
In the fall of 2012, Yelizarov devised a plan to commit an armed robbery of a jewelry store, known to be owned and operated by members of the Russian community of Northwest Baltimore. Yelizarov was the leader of the conspiracy and had final decision making authority over the execution of the scheme. Yelizarov recruited Zilberman, Sosonko, Igor Yasinov, Peter Magnis, M. Yelizarov, Sorhib Omonov, and others to participate in the robbery. In preparation for the robbery, on December 25, 2012, S. Yelizarov, Yasinov, and others committed a burglary of a residence in Baltimore, during which they stole a shotgun and semiautomatic handgun. The handgun was used in the robbery of the jewelry store on January 16, 2013. Prior to the robbery, the conspirators gathered intelligence, including conducting surveillance. S. Yelizarov purchased and attached a GPS device to the car of an employee of the jewelry store in order to learn the employee’s travel routine and habits. Zilberman also exploited his friendship with the employee to obtain information about the operation of the jewelry store and the habits of the employee. According to S. Yelizarov’s plea agreement, on January 15, 2013, Zilberman enticed the employee to visit his home, in order to alert the other co-conspirators of the employee’s whereabouts. While the employee was at Zilberman’s home, the conspirators met at Yelizarov’s residence to prepare for the kidnapping and robbery, including preparing the firearms and donning masks and gloves. Early in the morning on January 16, 2013, M. Yelizarov and Omonov followed the employee from Zilberman’s home and notified the other conspirators of the employee’s location so they could follow the employee. S. Yelizarov, Sosonko, Yasinov, and Magnis driving in a rental car obtained by Yasinov, used a law enforcement-type light bar and a loudspeaker to impersonate a police officer and pull over the employee. Brandishing firearms which were supplied by S. Yelizarov, the conspirators removed the employee from his car, bound and blindfolded the employee, put him into the trunk of his own car, and drove him to a predetermined location.
According to the plea agreement, once at the location, S. Yelizarov and the co-conspirators continued to brandish firearms and threatened to kill the employee’s family if he did not comply with their demands or if he reported the incident to police. The employee complied and at approximately 3:52 a.m., S. Yelizarov and Sosonko drove the employee’s vehicle from the remote location to the jewelry store, while Yasinov and Magnis stayed with the employee, holding him bound and blindfolded at gunpoint. M. Yelizarov and Omonov were stationed near the jewelry store to act as “look-outs.” S. Yelizarov and Sosonko entered the store and stole jewelry, stones, and watches, valued at about $500,000, then drove back to the remote location. The employee was placed back into the trunk of his car and driven to another location, where he was left. The employee was able to kick his way out of the trunk through the back seat of his car.
On January 18, 2013, S. Yelizarov sold a portion of the stolen jewelry for approximately $29,000 to an FBI informant. On January 19, 2013, S. Yelizarov traveled to Brooklyn, New York to sell some of the jewelry and stones taken during the robbery, receiving over $100,000. On January 21, 2013, he returned to Maryland and divided the cash proceeds among the members of the conspiracy and others. S. Yelizarov determined how much each participant received based on his perception of the risk and the conduct of each participant.
On January 25, 2013, S. Yelizarov was arrested in Buffalo, New York, on federal misuse of passport charges. From January 25 through February 2, 2013, S. Yelizarov placed calls directing his brother, M. Yelizarov, and others, to remove from his residence and dispose of evidence related to the jewelry store robbery, including cash from the sale of the jewelry, firearms used during the conspiracy, the law enforcement light bar, the GPS device, a laptop computer, and other evidence of the crimes.
Stanislav Yelizarov and the government have agreed that if the Court accepts the plea agreement Yelizarov will be sentenced to 30 years in prison. U.S. District Judge J. Frederick Motz has scheduled sentencing for April 13, 2016 at 10:30 a.m.
Grigoriy (Greg) Zilberman, age 25, and Aleksey Sosonko, age 35, both of Owings Mills, Maryland; Peter Aleksandrov Magnis, age 28, of Hydes, Maryland; Igor Yasinov, age 26, and Sorhib Omonov, age 27, both of Baltimore; and Marat Yelizarov, age 27, of Pikesville, previously pleaded guilty to their roles in the robbery conspiracy and are awaiting sentencing.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Paul E. Budlow and Aaron S. J. Zelinsky, who are prosecuting the case.
Largest Grossing Broker in Agape Ponzi Scheme Sentenced to 108 Months’ ImprisonmentRead the Press Release
Earlier today, at the United States District Court in Central Islip, New York, the Hon. Denis R. Hurley sentenced Jason Keryc, a former broker of Agape World, Inc. (Agape), to 108 months’ imprisonment and ordered that he pay $179 million in restitution following his convictions on April 21, 2015, after a four-week jury trial, for securities fraud, conspiracy, mail fraud, and wire fraud. These convictions arose out of the Keryc’s participation in a Ponzi scheme, in which he took $8.9 million in commission payouts for himself, which he spent on a Long Beach condominium, a million-dollar Montauk vacation home, jewelry, designer clothing, automobiles, and other items. The defendant has been incarcerated since his conviction.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service (USPIS).
“For years, Jason Keryc was the chief fundraiser for a Ponzi scheme that devastated the lives of thousands of middle class Americans whom Keryc and his co-conspirators deceived into investing in a scam,” stated United States Attorney Capers. “Keryc will now pay the price for his self-enrichment and deceit.” Mr. Capers expressed his grateful appreciation to the United States Securities and Exchange Commission for its assistance in the case.
“After being convicted of his crimes, Jason Keryc will now pay for his greed and deception with years of his life behind bars and restitution to the victims. It is unfortunate the destruction his actions have caused. Perhaps this sentence will serve as a warning to others that fraud and Ponzi schemes are serious offenses, not worth risking the cost to self, others, and society,” stated FBI Assistant Director-in-Charge Rodriguez.
“Today’s sentencing represents the continued commitment of United States Postal Inspectors to bring to justice all parties involved in Agape World who participated in an egregious Ponzi scheme defrauding hundreds of investors of their hard earned money,” stated Postal Inspector-in-Charge Bartlett.
Nicholas Cosmo founded Agape in August 2000, following 21 months in a federal prison for defrauding investors. Between October 2005 and January 2009, Keryc played a critical role in the scheme, soliciting and obtaining hundreds of millions of dollars from investors. To induce investments and discourage withdrawals, he misled investors by assuring them that their money would only be used to fund specific, short-term secured bridge loans to commercial borrowers, or to make short-term loans to small businesses; promising to pay investors unusually high rates of returns; and representing that investing in Agape carried little or no risk of loss. As a result of these inducements, Keryc actually raised significantly more money than was needed for the loans, and for his efforts he made approximately $8.9 million – more than twice the $4 million that Cosmo personally profited from the scheme.
Keryc and his co-conspirators paid returns to Agape investors, not from any profits earned on investments, but rather from existing investors’ deposits or money paid by new investors. They then took more than $370 million – approximately $55 million of which came from investors that Keryc or his sub-brokers convinced to invest in the Ponzi scheme – from approximately 5,000 investors. Of that $370 million, only $22 million actually went to fund bridge loans. Approximately $113 million of investors’ money was used to trade high risk futures and commodities, over 80 million dollars of which was lost in these markets.
As the fraudulent scheme began to unravel, Keryc continued to deceive investors about Agape’s financial health. On November 3, 2008, Keryc learned that all of Agape’s 2007 bridge loans were in default or on extension, but did not disclose this information to existing or new investors. Instead, he continued to solicit money from investors, obtaining an additional $13 million. Ultimately, approximately 3,800 investors sustained actual losses totaling more than $150 million.
On October 14, 2011, Cosmo was sentenced to a term of imprisonment of 25 years for his role in the scheme. In addition to the convictions of Cosmo and Keryc, the government’s investigation led to the conviction of seven other defendants in the scheme, who are awaiting sentencing before Judge Hurley.
The government’s case is being prosecuted by the Office’s Long Island Criminal and Civil Divisions. Assistant United States Attorneys Christopher C. Caffarone, Bradley T. King, Grace M. Cucchissi, and Vincent Lipari are in charge of the prosecution.
The Defendant:
JASON KERYC
Age: 38
Wantagh, New YorkE.D.N.Y. Docket No. 12-CR-357 (S-4)(DRH)
Kentucky man sentenced for possession of child pornographyRead the Press Release
Evansville – United States Attorney Josh J. Minkler announced today that John Thomas Allen, 34, of Harned, Kentucky, was sentenced to 60 months in prison by U.S. District Chief Judge Richard L. Young following his guilty plea to possession of child pornography. This case was the result of an investigation by the Federal Bureau of Investigation Violent Crimes Task Force and the Evansville Police Department.
“Those who prey on our children can no longer hide behind the anonymity of computers in their own home,” said Minkler. “Let this be a warning to others who think they can avoid being detected and held accountable.”
In November 2013, a task force officer assigned to the FBI Child Exploitation Task Force conducted an on-line investigation of the sharing of child pornography files on a peer sharing network. Investigators found downloaded video files depicting children under the age of 18 engaged in sexually explicit acts and poses.
Investigators obtained a search warrant which led them to Allen’s apartment. Allen told investigators that he was the person using the lap top computer and a disc drive. Further investigation found 1073 pornographic images that were previously deleted but investigators were able to locate on the hard drive. Some of the images included minors under the age of 12 that portrayed sadistic or masochistic conduct and other depictions of violence.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Judge Young imposed 10 years of supervised release following Allen’s release from prison. Allen must register as a sex offender, must not have unsupervised contact with minors, and also must participate in a sex offender treatment program while on supervision.
KC Man Sentenced to 30 Years in Prison for Heroin Conspiracy, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute heroin and for illegally possessing a firearm and ammunition.
Robin M. Sims, also known as Robin Hood, 51, was sentenced by U.S. District Judge Dean Whipple to 30 years in federal prison without parole. Sims was sentenced as an armed career offender due to his prior felony convictions.
Sims and co-defendant Amy E. Jones, 52, of Kansas City, were found guilty on May 12, 2015, of participating in a conspiracy to distribute heroin between June 2012 and June 2013 and of aiding and abetting one another to distribute heroin. In addition, Sims was convicted of five counts of distributing heroin and one count of being a felon in possession of a firearm and ammunition. Jones was also convicted of being an unlawful drug user in possession of a firearm.
Jones was sentenced on Dec. 14, 2015, to five years in federal prison without parole.
Evidence introduced during the trial included a series of undercover and controlled purchases of heroin from Sims, often utilizing a confidential informant. Police officers conducted three searches at two separate residences shared by Sims and Jones and seized heroin and firearms.
On Aug. 30, 2012, during an investigation, Kansas City police officers searched a residence shared by Sims and Jones and found a Colt .32-caliber pistol under the mattress of a bed.
On Nov. 12, 2012, officers executed a search warrant at the residence shared by Sims and Jones and discovered heroin wrapped in a lottery ticket and a digital scale in the kitchen.
On June 20, 2013, officers executed a search warrant at the residence shared by Sims and Jones. When officers entered the residence, Sims placed a plastic baggie that contained what appeared to be heroin in his mouth and swallowed it. Officers discovered a loaded Davis Industries .22-caliber revolver under a bed.
Under federal statutes, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Sims has a prior felony conviction for second degree murder, two prior felony convictions for drug trafficking, one prior felony conviction for possessing a controlled substance and a prior felony conviction for distributing a controlled substance.
This case was prosecuted by Assistant U.S. Attorneys Rudolph R. Rhodes IV and Joseph M. Marquez. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Justice Department Reaches Agreement with a Texas YMCA to Ensure Equal Opportunities for Children with DiabetesRead the Press Release
The Justice Department reached a settlement agreement today with the Arlington-Mansfield Area YMCA, a local Texas affiliate of the YMCA, to resolve allegations that it violated the Americans with Disabilities Act (ADA) by denying a child the opportunity to participate in a summer day camp program because of his diabetes. YMCA refused to provide daily insulin injections to the child, which left him unable to attend the summer day camp program.
Title III of the ADA prohibits discrimination on the basis of disability by private camps and child care programs. Under the ADA, such entities must make reasonable modifications to their policies, practices or procedures when necessary to provide equal access to a child with a disability, unless a modification would fundamentally alter the nature of the goods and services. Absent a showing of fundamental alteration, where a parent and a child’s physician determine that it is appropriate for a non-nurse to assist a child with diabetes care, allowing a trained layperson to do so is a reasonable modification under the ADA.
“After-school and camp programs provide a critical place for all children to socialize with their friends and learn from their peers,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Department of Justice will continue to aggressively fight all forms of discrimination that seek to deny children with disabilities the protections the ADA guarantees and the opportunities they deserve.”
Under the terms of the two-year agreement, the YMCA will designate an ADA compliance officer who will be responsible for monitoring compliance with the terms of the agreement. The ADA compliance officer will also be responsible for ensuring that the YMCA updates its application materials and implements the policies and procedures required by the agreement, including a non-discrimination policy. The YMCA will designate an individual at each branch who is authorized to receive and review requests for reasonable modifications; inform parents and guardians about how to request reasonable modifications; and train its staff on the ADA, including information on diabetes management. The ADA compliance officer will also review all denials of reasonable modification requests and any decision to exclude a child with a disability from enrollment.
The YMCA will also pay $10,000 to the family to compensate them for the denial of an opportunity to participate in the YMCA program. The department will actively monitor the YMCA’s compliance with terms of the agreement.
One of the largest childcare providers of school-aged children in the region, the Arlington-Mansfield Area YMCA serves the Arlington and Mansfield communities near Dallas and Ft. Worth, Texas. Nearly 900 children participate in the local YMCA’s before and after-school programs and nearly 450 children participate in its summer camp program.
ADA enforcement is a top priority of the Justice Department’s Civil Rights Division. Those interested in finding out more about this settlement or the obligations of camps and child care programs under the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint/.
Juneau man indicted on distribution of child pornographyRead the Press Release
Juneau, Alaska – U.S. Attorney Karen L. Loeffler announced today that a Juneau man was indicted for the distribution of child pornography.
Steven Raymond Foster, 45, of Juneau, Alaska, was arraigned today before U.S. Magistrate Judge Leslie C. Longenbaugh on the sole charge of distribution of child pornography. Foster pled not guilty to the charge and was ordered detained pending trial.
Assistant U.S. Attorney Jack S. Schmidt, who is prosecuting the case, indicated that Foster faces a mandatory minimum sentence of five years and a potential maximum sentence of 20 years in prison, and a $250,000 fine, or both. Foster also faces up to life on supervised release. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Judge Longenbaugh set a trial date for May 3, 2016.
The charges against Foster are the result of an investigation conducted by the Federal Bureau of Investigation (FBI). If the public has any further information, questions, or concerns about the activities of Foster please contact the FBI at (907) 265-8254.
This case is being brought as part of Project Safe Childhood. In May 2006, DOJ launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
John Michael Wade Pleads Guilty to Conspiracy to Defraud A Cary, NC CompanyRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court, JOHN MICHAEL WADE, 63, pled guilty to Conspiracy to commit wire fraud. As part of his plea, WADE agreed to pay $219,304 in restitution. He faces a maximum of five years imprisonment.
The Criminal Information WADE pled guilty to charged that he and a co-conspirator contracted with a company in China to supply tools to their company headquartered in Cary, NC. WADE, his coconspirator, and the Chinese company reached an agreement to inflate the invoices to WADE’S company. After WADE’S company paid the inflated invoices to the Chinese company, the Chinese company paid the inflated amounts to WADE’S coconspirator, who in turn split the proceeds with WADE. Wade incorporated a business to receive his share of the proceeds.
The criminal investigation of this case was conducted by Internal Revenue Service Criminal Investigation. Assistant United States Attorney David Bragdon handling the case on behalf of the government.
Indiana Man Sentenced to Prison for Interstate Domestic Violence OffenseRead the Press Release
DES MOINES, IA – On February 22, 2016, Robert Eugene Graham, 46, of Michigan City, Indiana, was sentenced by Chief United States District Court Judge John A. Jarvey to 210 months (17-1/2 years) in prison for the crime of interstate domestic violence, announced Acting United States Attorney Kevin E. VanderSchel. Graham had previously pleaded guilty to this offense on November 6, 2015.
According to the plea agreement, Graham traveled from Michigan City, Indiana, to Chariton, Iowa, on January 15, 2015, while in possession of a Mossburg shotgun. The following morning, he shot the victim, with whom he had previously had an intimate relationship, while the victim was leaving her home for work. Graham’s actions caused severe, life-threatening bodily injury to the victim.
This matter was investigated by the Iowa Division of Criminal Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa, with assistance from the office of the Iowa Attorney General—Area Prosecutions.