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12 April 2016
Five Lancaster County Residents Charged with Robbing Pharmacies in Lancaster, York and Cumberland CountiesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Harrisburg indicted Jeremy Joseph Morant, age 24, Bryce Chad Butson, age 19, Earl Cord Owens, Jr., age 33, Carlos Ruben Arenas, Jr., age 33, and Jessica Lynn Weir, age 33, on March 23, 2016, charging them with robbery. The indictment was unsealed today following the arrests of the defendants.
According to United States Attorney Peter Smith, the indictment alleges that from December 2015 to February 2016, the defendants conspired to rob CVS and Walgreen pharmacies in Lancaster, York, and Cumberland Counties of oxycodone, a Schedule II controlled substance.
The investigation was conducted by the Drug Enforcement Administration and the Manheim, Springettsbury, Hampden and Tredyffin Township Police Departments. Assistant United States Attorney Joseph J. Terz has been assigned to prosecute the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 10 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Final Two Defendants Plead Guilty in Internet Fraud CaseRead the Press Release
Gulfport, Miss – Funso Hassan and Anthony Shane Jeffers entered guilty pleas on Monday, April 11, 2016, before Chief District Judge Louis Guirola, Jr., in a case involving counterfeit checks distributed through fraudulent "Mystery Shopper" internet sites, U. S. Attorney Gregory K. Davis announced today.
Funso Hassan, 27, of Ibadan, Nigeria, faces a maximum of 10 years in prison and a $250,000 fine after pleading guilty to conspiracy to commit identity theft and theft of government property along with use of mail and interstate facility to distribute proceeds of a racketeering activity. Hassan also faces deportation as a convicted felon. He will be sentenced on July 11, 2016.
Anthony Shane Jeffers, 44, of Maryville, Tennessee, faces a maximum of 10 years in prison and a $250,000 fine after pleading guilty to conspiracy to commit identity theft and theft of government property along with use of mail and interstate facility to distribute proceeds of a racketeering activity. He will be sentenced on July 22, 2016.
This case was investigated by Homeland Security Investigations and prosecuted by Assistant United States Attorney Annette Williams and Department of Justice Trial Attorneys Conor Mulroe, of the Organized Crime Gang Section, and Peter Roman of the Computer Crimes and Intellectual Property Section.
Felon Possessing Stolen Weapons Sentenced to PrisonRead the Press Release
A twice convicted felon who possessed three stolen weapons was sentenced today to more than four years in federal prison.
Randall Williams, 26, from Waterloo, Iowa, received the prison term after a guilty plea on January 15, 2016, to one count of being a felon in possession of firearms.
The evidence showed that Williams purchased three firearms from another individual who was involved in burglaries in the Waterloo area. At the guilty plea, Williams admitted he purchased the weapons knowing they were stolen. Williams admitted he had an Illinois felony conviction for burglary. He also had an Iowa felony drug conviction.
Williams was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. He was sentenced to 57 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Williams 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 Steve Young and investigated by the Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-2026.
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Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
United States Attorney Bill Nettles stated today that a Federal Grand Jury in Charleston, South Carolina, returned Indictment(s) against the following:
Charleston-based NOAA Employee Charged with Possession of Child Pornography involving Prepubescent Minors
Clayton A. Norfleet, age 53, of West Columbia, was charged in a one-count Indictment with Possession of Child Pornography involving Prepubescent Minors, in violation of Title 18, United States Code, Sections 2252A(a)(5)(B) and 2252A(b)(2). Norfleet could receive a maximum sentence of 20 years imprisonment and a $250,000 fine. The case was investigated by agents of the Department of Commerce-Office of Inspector General (DOC-OIG) and is assigned to Assistant United States Attorney Dean H. Secor of the Charleston office for prosecution.North Charleston Felon Indicted for Illegally Reentering the United States
Fidel Ramos Sanchez, age 39, of North Charleston, was charged in a one-count Indictment with Illegal Reentry of an Alien after being removed subsequent to a conviction for an aggravated felony, in violation of Title 8, United States Code, Sections 1326(a) and 1326(b)(2). The maximum penalty Sanchez could receive is 20 years imprisonment and a $250,000 fine. The case was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE-ERO) and is assigned to Assistant United States Attorney Dean H. Secor of the Charleston office for prosecution.North Charleston Man Charged with Distribution of Child Pornography and Possession of Child Pornography involving Prepubescent Minors
Derek Wayne Sanson, age 26, of North Charleston, was charged in a two-count Indictment with Distribution of Child Pornography, in violation of Title 18, United States Code, Sections 2252A(a)(2) and 2252A(b)(1), and Possession of Child Pornography involving Prepubescent Minors, in violation of Title 18, United States Code, Sections 2252A(a)(5)(B) and 2252A(b)(2). Sanson could receive a mandatory minimum sentence of 5 years imprisonment and a maximum of 20 years imprisonment and a $250,000 fine for the Distribution of Child Pornography count, and a maximum sentence of 20 years imprisonment and a $250,000 fine for the Possession of Child Pornography involving Prepubescent Minors count. The case was investigated by agents of the Federal Bureau of Investigation (FBI) and is assigned to Assistant United States Attorney Dean H. Secor of the Charleston office for prosecution.The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Fayetteville Man Sentenced to 76 Months in Federal Prison for Child Pornography OffenseRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Markice Jasper, age 38, of Fayetteville, Arkansas, was sentenced to 76 months imprisonment followed by 10 years of supervised release, and ordered to pay a $6,900.00 fine for Receipt of Child Pornography. The sentencing took place before the Honorable Timothy L. Brooks in the United States District Court in Fayetteville.
According to court records, in February, 2015, Homeland Security Investigations and the Northwest Arkansas Internet Crimes Against Children Taskforce received a tip from the National Center for Missing and Exploited Children reporting that an image of child pornography was uploaded by a Fayetteville resident onto the social media website Instagram. Consequently, law enforcement was able to execute a federal search warrant on the specific residence from which the image was uploaded. While at the residence, law enforcement encountered Markice Jasper, who admitted to downloading and viewing child pornography via the internet. At that time, numerous items of digital evidence including computers and hard drives were confiscated. A subsequent forensic examination of the digital devices revealed hundreds of videos and images of child pornography. Jasper was indicted by a federal grand jury on October 28, 2015 and pleaded guilty on December 15, 2015.
"This investigation highlights the continued successful partnership between ICE Homeland Security Investigations and the River Valley and Northwest Arkansas Internet Crimes Against Children Task Force," said Raymond R. Parmer Jr. special agent in charge of HSI New Orleans. "Identifying and investigating those who prey on innocent children via the Internet will continue to be one of HSI's highest priorities."
This case was investigated by Homeland Security Investigations and the Northwest Arkansas Internet Crimes Against Children Taskforce. Assistant United States Attorney Dustin Roberts prosecuted the case for the United States.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and their Criminal Division Child Exploitation and Obscenity Sections (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
Eleventh Circuit Affirms Convictions of Pharmacy Owner and Manager for Conspiracy to Distribute Drugs UnlawfullyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that the Eleventh Circuit Court of Appeals has affirmed the convictions of Jeffrey R. Green (51, formerly of Englewood), owner of Gulf Coast Medical Pharmacy in Ft. Myers, and Karen S. Hebble (46, formerly of Englewood), the pharmacy’s office manager, for conspiracy to unlawfully possess with intent to distribute and distribute oxycodone and alprazolam, and for money laundering. Following a January 2015 jury trial, at which the both defendants were found guilty, United States District Judge John Steele sentenced Green and Hebble to seven and five years’ imprisonment, respectively. He also ordered them to forfeit $4,918,603.36.
Green and Hebble appealed to the Eleventh Circuit. That Court has now rejected, in a published opinion, their arguments that the evidence was insufficient for the jury to find them guilty, that Hebble was too minimally involved with their business to be held accountable, and that the district court should have ordered Hebble tried first so that Green (who is now married to Hebble) could testify on her behalf.
According to testimony and evidence presented at trial, from 2009 through October 6, 2011, Green and Hebble, neither of whom were a licensed pharmacist, conspired with each other, and others, to possess with intent to distribute and to distribute oxycodone and alprazolam at their pharmacy. The Eleventh Circuit affirmed the jury’s decision that they had agreed both to distribute controlled substances and to fill prescriptions for controlled substances that had not been issued for legitimate medical purposes.
This case was investigated by the Drug Enforcement Administration Task Force, which includes the Naples Police Department, Charlotte County Sheriff’s Office, and other local law enforcement agencies. It was prosecuted by Assistant United States Attorneys Yolande G. Viacava and Robert P. Barclift. The appeal was handled by Senior Litigation Counsel Karin B. Hoppmann and Assistant United States Attorney Cherie Krigsman.
Durant Man Pleads Guilty to Theft of Gaming Establishment on Indian LandsRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that CHARLES BLAIR SMALLWOOD, age 24, of Durant, Oklahoma, pled guilty to THEFT BY OFFICERS OR EMPLOYEES OF GAMING ESTABLISHMENT ON INDIAN LANDS, in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3).
The charge arose from an investigation by the Choctaw Nation Tribal Police and the Federal Bureau of Investigation. The defendant was indicted in March, 2016.
The Indictment alleged that from in or about December 2014, to on or about August 17, 2015, in the Eastern District of Oklahoma, the defendant, while an employee of the Choctaw Nation Casino and Resort, in Indian Country, did embezzle, abstract, purloin, willfully misapply, and take and carry away with intent to steal any moneys, funds, assets, or other property in excess of $1,000.00 belonging to the Choctaw Nation Casino and Resort, an Indian gaming establishment operated by the Choctaw Nation of Oklahoma pursuant to an ordinance or resolution approved by the National Indian Gaming Commission.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain on bond pending sentencing.
The statutory range of punishment is not more than 20 years imprisonment, up to a $1,000,000 fine or both.
Assistant United States Attorney Kristin Harrington represented the United States.
District Man Sentenced to 80 Months in Prison for Firearm Possession in Northeast WashingtonRead the Press Release
WASHINGTON – Tyrone Johnson, 34, of Washington, D.C., has been sentenced to a prison term of 80 months for unlawful possession of a firearm, U.S. Attorney Channing D. Phillips announced today.
Johnson pled guilty in January 2016, in the U.S. District Court for the District of Columbia, to one count of unlawful possession of a firearm. On April 11, 2016, Johnson was sentenced by the Honorable Tanya S. Chutkan. Upon completion of his prison term, Johnson will be placed on three years of supervised release.
According to the government’s evidence, on the afternoon of July 31, 2015, law enforcement officers received a tip that there was a man with a gun in the 1500 Block of Neal Street NE. Officers made contact with Johnson, who was carrying in his waist a Sig Sauer 9mm firearm that was loaded with eight rounds of ammunition. At the time of his arrest, Johnson was on supervision for possession with the intent to distribute PCP in the Superior Court of the District of Columbia.
In announcing the sentence, U.S. Attorney Phillips commended the work of the U.S. Bureau of Alcohol Tobacco Firearms and Explosives and the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Candace Battle and Assistant U.S. Attorney Christopher Macchiaroli, of the Violent Crimes and Narcotics Trafficking Section, who prosecuted the matter.
Corrupt Public Health Employee Sentenced to Federal Prison for Role in Extensive Identity Theft and Tax Fraud SchemeRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced that a former public health employee with the Ascension Parish Health Unit was recently sentenced to federal prison for her involvement in an extensive identity theft and tax fraud scheme.
U.S. District Court Judge James J. Brady sentenced TA’SHA THOMAS, age 26, of Donaldsonville, Louisiana, last week to thirty-six (36) months in federal prison for stealing and selling the social security numbers of over 425 people. The social security numbers were used to obtain over $464,000 in fraudulent tax returns from the United States Treasury. The defendant was also sentenced to a 3-year term of supervised release and ordered to pay $464,764 in restitution.
On June 22, 2015, the defendant pled guilty to access device fraud and aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A. Her convictions resulted from her theft of the personal identifying information of over 425 individuals from a database used by her employer, the Ascension Parish Health Unit, over a six month period in 2012. The defendant sold this information to Mona Hill, who in turn used the information to file fraudulent federal tax returns.
Thomas is one of four defendants to be charged in connection with this scheme. The following is the status of the other three defendants:
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Mona Hill, age 34, of Plaquemine, Louisiana, has been sentenced to sixty-five (65) months in federal prison and to pay $491,268.18 in restitution to the IRS.
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Cameron Butler, age 33, of Baton Rouge, Louisiana, has pled guilty to receiving stolen government funds.He is awaiting sentencing.
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Shonda V. Johnson, age 42, of Baton Rouge, Louisiana, has pled guilty to receiving stolen government funds.She is awaiting sentencing.
U.S. Attorney Green stated: “It seems like this defendant, together with the others involved in the scheme, sought to cover the world of white collar crime: public corruption, identity theft, stealing government money, and false tax documents. Today’s prison sentence reflects the results of those efforts. I greatly appreciate the excellent work of IRS Criminal Investigations and the prosecutor in this important matter. We will continue to work with our partners to root out fraud and corruption wherever found.”
“We are pleased with today's sentence of Ms. Thomas. The protection of taxpayers’ identities and personal information is an integral part of our agency's mission.” said Jerome R. McDuffie, Special Agent-in-Charge, IRS Criminal Investigation. “Special Agents of IRS Criminal Investigation will continue to aggressively work with the United States Attorney's Office to protect taxpayers’ interests and thoroughly investigate fraudulent tax refund schemes. The message this case sends is clear: participation in those schemes, and the theft of personal identifying information, does not and will not pay; and those who do so will be investigated and prosecuted."
This matter was prosecuted by Assistant United States Attorney Jessica M.P. Thornhill and investigated by the Internal Revenue Service’s Criminal Investigation Division.
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Convicted Felon Ordered to Prison for Illegal Possession of FirearmsRead the Press Release
McALLEN, Texas – A 35-year-old “Valluco” is headed to federal prison following his conviction of being a felon in possession of a firearm, announced U.S. Attorney Kenneth Magidson. Jesus Grijalva, of San Juan, pleaded guilty Dec. 18, 2015.
Today, U.S. District Judge Randy Crane handed Grijalva a 63-month sentence to be immediately followed by three years of supervised release. At the hearing, the court heard evidence regarding several previous violent offenses that Grijalva had committed. In handing down the sentence, Judge Crane noted that Grijalva’s parents and siblings were accomplished individuals and that the defendant had taken a much different path in life.
On Aug. 21, 2015 law enforcement officials executed a search warrant on Grijalva’s residence in San Juan while investigating a possible kidnapping. Officers located Grijalva at the residence and identified him as a Valluco gang member. At that time, he was found to be in possession of cocaine, a stolen pistol and a shotgun despite having multiple felony convictions. Agents arrested Grijalva and seized the firearms and ammunition.
Grijalva will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the San Juan Police Department. Assistant U.S. Attorney David A. Lindenmuth prosecuted the case.
Canyon Country Man Sentenced to 10 Years in Federal Prison for Possession of Child Pornography on His Mobile PhoneRead the Press Release
SANTA ANA, California – A registered sex offender from Canyon Country has been sentenced to a decade in federal prison and ordered to serve 40 years of supervised release for his conviction pleading guilty to one count of possession of child pornography.
Paul Frederick Kampmeyer Jr., 45, was sentenced on April 8 by United States District Judge Josephine L. Stanton after he pleaded guilty last May and admitted possessing over a hundred images of minors engaging in sexually explicit conduct.
Kampmeyer, who was previously convicted in state court of possessing child pornography, used his cell phone in 2011 to send a text message that contained a sexually explicit image of a man and a young child. During the execution of a federal search warrant in 2012, agents seized two mobile phones with approximately 124 images of child pornography that had been transmitted over the Internet. One image found on Kampmeyer’s phone included a sexually explicit photo involving a young toddler engaging in sexual acts with an adult male.
Kampmeyer will be ordered to pay restitution to the victims.
“Possessing child pornography is not a victimless crime,” said United States Attorney Eileen M. Decker. “Real children were raped when these images were produced, and every time the images are distributed or possessed the child is re-victimized. The demand for these disturbing images leads to victimization, so my Office is committed to shutting down the illicit market for these images.”
This case was the result of an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Bullhead Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Bullhead, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Mario Delaney Crow Ghost, age 45, was indicted on March 15, 2016. He appeared before U.S. Magistrate Judge William D. Gerdes on April 8, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between October 19, 2015, and March 15, 2016, Crow Ghost, a person required to register under the Sex Offender Registration and Notification Act, knowingly failed to register and update his registration.
The charge is merely an accusation and Crow Ghost is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Crow Ghost was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
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Bradenton Man Sentenced to Federal Prison for Selling Counterfeit, Unapproved, and Misbranded DrugsRead the Press Release
Tampa, Florida – United States District Judge Steven D. Merryday today sentenced Robert Lohr (72, Bradenton) to 21 months in federal prison for conspiracy to smuggle misbranded and counterfeit drugs into the United States. The Court also entered an order forfeiting Lohr’s interest in approximately $926,466, the proceeds of the conspiracy.
According to court documents, from July 2009 through September 25, 2015, Lohr operated a business in Bradenton known as “Canadian American Drug Club” or “American Drug Club of Bradenton.” The business sold and distributed illegally smuggled prescription drugs, including Viagra, Cialis, Achiphex, and Lipitor, as well as other drug products that were falsely represented as “herbal,” but that contained active prescription ingredients. Lohr generated more than $1 million in sales of these misbranded and counterfeit drugs. At no time was Lohr ever licensed as a pharmacist, a drug importer, or a drug wholesaler. Neither was American Drug Club a licensed pharmacy, drug importer, or wholesaler.
Between March 21, 2014, and September 15, 2015, several undercover purchases of misbranded, unapproved, and counterfeit prescription drugs were made from Lohr’s business. Prescriptions for Viagra and Cialis were filled and mailed from the business, along with counterfeit drugs made in China. Other prescription drugs, such as Achiphex and Lipitor, were filled by foreign pharmacies with foreign drugs, which had been approved for the U.S. market. Lohr also sold several herbal Viagra products, without prescriptions, that had been illegally smuggled from China. These products, with names such as “Maxmen,” “Superhard,” or “Vigour,” contained sildenafil citrate, the active pharmaceutical ingredient in Viagra. Several of the packages addressed to Lohr’s business, containing the counterfeit drugs, were seized by U.S. Customs and Border Protection.
“Counterfeit pharmaceuticals can and have led to serious injuries and death,” said Susan L. McCormick, special agent in charge of HSI Tampa. “HSI takes cases like this very seriously and work tirelessly with our partners, like the FDA, to investigate these crimes and bring to justice those who commit them.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the United States Food and Drug Administration, which is responsible for protecting the health and safety of the American public, and ensuring that drugs intended for human use bear true and accurate information and are safe and effective for their intended uses. This case was prosecuted by Assistant United States Attorneys Kelley Howard-Allen and Holly Gershow.
Bangor Resident Pleads Guilty to Maintaining a Drug Involved PremisesRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Laura Lyons, 30, of Bangor pleaded guilty today in U.S. District Court to maintaining a drug involved premises.
According to court records, in 2014, the defendant maintained a residence on Essex Street in Bangor where she allowed dealers to store and sell heroin to customers on a daily basis and for which she was compensated in heroin.
The defendant faces up to 20 years in prison, a $500,000 fine and three years of supervised release.
The case was investigated by the U.S Drug Enforcement Administration and the Maine Drug Enforcement Agency.
30-Year Sentence for Fresno Man for Receiving and Distributing Child PornographyRead the Press Release
FRESNO, Calif. — United States District Judge Dale A. Drozd sentenced Shane Paul Young, 45, of Fresno, on Monday to 30 years in federal prison for receipt and distribution of child pornography, United States Attorney Benjamin B. Wagner announced.
On January 22, 2016, after a three–day trial, a federal jury returned a guilty verdict. According to evidence presented at trial, federal investigators in Fresno received a lead regarding an email address in Fresno that was distributing child pornography. Investigators determined that Young was the user of that Fresno email account. The evidence showed that Young sent and received hundreds of videos and images containing child pornography over the Internet with users across Europe and North America. The child pornography that Young received and distributed was not only voluminous, but also included graphic images of infants and toddlers being sexually abused. Both the nature of Young’s offense and his significant prior criminal history factored into the sentence that was imposed.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Fresno County Sheriff’s Department, the Kings County District Attorney’s Office, and the Fresno Internet Crimes Against Children (ICAC) task force. ICAC is a federally and state-funded task force with agents from federal, state, and local agencies. The Fresno ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant United States Attorneys Mark J. McKeon and Jeffrey A. Spivak prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. . Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
14 Convicted in Methamphetamine Distribution ConspiracyRead the Press Release
FORT WORTH, Texas — Following a one-day trial yesterday before U.S. District Judge John McBryde, a federal jury convicted Cleto Tarin, 52, most recently of the Dallas-Fort Worth area, and Hector Saldivar, 33, of Wichita Falls, Texas, each on one count of conspiracy to possess with intent to distribute 50 grams or more of methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Tarin and Salvidar each face a statutory penalty of not less than five years or more than 40 years in federal prison and up to a $5 million fine. They are scheduled to be sentenced by Judge McBryde in August 2016.
With these two convictions yesterday, all 14 defendants charged in an indictment with conspiracy to possess with the intent to distribute methamphetamine that was returned by a federal grand jury in Fort Worth on February 10, 2016, have been convicted.
Three defendants, Miguel Antonio Martinez, 31, Marcus Caldwell, 32, and Bobbie Frie, Jr., 30, each pleaded guilty to one count of conspiracy to possess with intent to distribute 50 grams or more of methamphetamine. They each face a statutory penalty of not less than five years or more than 40 years in federal prison and up to a $5 million fine.
Seven defendants, David Sheppard, 40, Kendra Ward, 27, Eric Overstreet, 27, Robert Baggott, 45, Cecil Hindman, 51, Oscar Melanson, 31, and Jonathan Morris, 31, each pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine. They each face a maximum statutory penalty of 20 years in federal prison and a $1 million fine.
Two defendants, Susan Williams, 29, and Raymondo Acuna, 31, each pleaded guilty to one substantive count of possession with intent to distribute methamphetamine, as charged in superseding informations. They each face a maximum statutory penalty of 20 years in federal prison and a $1 million fine.
Sentencing dates for the 12 defendants who pleaded guilty are set in July and August 2016.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wichita Falls Police Department conducted the investigation.
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11th Defendant in $17 Million Case Stemming from Indy Movie Financing Scam Sentenced to over 11 Years in Federal PrisonRead the Press Release
LOS ANGELES – A Palm Springs man who helped fraudulently raise millions of dollars for independent movie productions – money that primarily went to the fundraisers – has been sentenced to 135 months in federal prison.
Paul Baker was sentenced yesterday by United States District Judge John F. Walter, who also ordered the defendant to pay $2,688,433 in restitution.
Baker is the eleventh defendant to be sentenced after each was convicted of participating in a scheme to raise money for two films with false promises of huge returns and misrepresentations as to how investor funds would be used. While some of the movies were actually produced, the defendants lied, gave half-truths and concealed material facts from investors around the nation, according to court documents. (Baker was previously sentenced to more than 16 years, but that sentence was overturned by the U.S. 9th Circuit Court of Appeals, which found an error in how his previous convictions were factored into the sentence.)
Baker’s conviction by a jury in June 2012 on charges of conspiracy, mail fraud, wire fraud and the sale of unregistered securities was related to the activities of Cinamour Entertainment LLC, which bilked investors who put money into independent motion pictures called “From Mexico with Love” and “Red Water: 2012.” The defendants in the case raised money for the films through boiler room telemarketing operations, which made fraudulent pitches to investors. As part of the scheme, telemarketers made “cold calls” and solicited investments with false claims, such as that 93 percent of investor money would be used to produce and promote the films, and that investors would receive returns up to 1,000 percent. In fact, little more than one third of investor funds were used to actually produce and promote “From Mexico with Love,” and the second film was never made.
The scheme raised more than $17 million.
“Investors must beware when presented with extravagant promises of profits,” said United States Attorney Eileen M. Decker. “These defendants used the glamour of the film industry to make their false promises more attractive, which enabled them to steal millions of dollars from these victims. The sentences imposed in this case are a testament to the dedication and persistence of the law enforcement agencies which dismantled this fraudulent scheme, preventing further harm to victims.”
A total of 11 defendants have been convicted in the Cinamour case, including:
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Daniel Toll, of Encino, the president of Cinamour, who pleaded guilty to conspiracy and selling unregistered securities and was sentenced to eight years in federal prison;
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James Lloyd, of Lake Arrowhead, a “closer” for Cinamour and later operated his own boiler room, pleaded guilty to wire fraud and was sentenced to 13 years in prison; and
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Bart Douglas Slanaker, of Panorama City, another closer who helped raise funds for Cinamour in several capacities, pleaded guilty to wire fraud and tax evasion and was sentenced to 145 months in prison.
The investigation into fraudulent boiler rooms raising money for independent movies was conducted by special agents with the Federal Bureau of Investigation and IRS Criminal Investigation.
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11 April 2016
“Arizona Boys” Sentenced to Federal Prison in Meth ConspiracyRead the Press Release
FARGO - U. S. Attorney Christopher C. Myers announced that on April 11, 2016, Christian Michael Marlar, 38, Tucson Ariz., and Joseph Ferrand Johnson, 27, Tucson Ariz., were both sentenced before U. S. District Judge Ralph R. Erickson for Conspiracy to Possess with Intent to Distribute and Distribution of a Controlled Substance. Marlar was sentenced to seven (7) years in prison and three (3) years supervised release; Johnson was sentenced to 10 years in prison and five (5) years supervised release. Judge Erickson also ordered that each of them pay a $100 special assessment to the Crime Victims’ Fund.
During the course of the conspiracy, Marlar and Johnson were known as the "Arizona Boys" by local drug traffickers. Marlar and Johnson received over one (1) pound of methamphetamine in Arizona and would distribute it to local drug traffickers in the Fargo-Moorhead area during the course of the conspiracy.
Other defendants sentenced in this conspiracy include:
Susan Dokken - 56, 10 years in federal prison
Kathy Lorsung -54, 10 years and 3 months in federal prison
Lyle Lanigan - 43, 6 months prison
This case was investigated by the DEA and Fargo Police Department
U. S. Attorney Christopher C. Myers prosecuted these cases.
Woman Sentenced for Defrauding Disabled Couple of More Than $500,000Read the Press Release
Memphis, TN – A woman has been sentenced to federal prison for defrauding a disabled couple of more than $500,000 in less than a year. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, Martha Bizzell, 41, of Crump, Tennessee, served as the guardian for an elderly and disabled couple between November 2011 and July 2012.
In November 2011, James Robertson, then 81, of Peoria, Illinois, was severely beaten in a home invasion at his residence. He lived at the home with his wife, Helen, who suffered from dementia. Although James Robertson survived the attack, he was no longer able to live on his own and care for his wife.
At the time of the home invasion, the estate of the Robertsons was valued at approximately $1.5 million. The couple had more than 50 rental properties in Illinois; approximately $585,000 in Caterpillar Inc. stock; approximately $638,000 in other investment accounts; and approximately $83,000 in credit union accounts.
Shortly after the home invasion, Bizzell, a distant relative of James Robertson, was appointed as temporary guardian of the Robertsons’ estate by order of Peoria County Probate Court. She was made the couple’s plenary guardian in January 2012, and subsequently moved them to Crump, Tennessee.
Bizzell executed her scheme in several ways: Property was donated or deeded to others; stock investments were liquidated; funds were transferred from the Robertsons’ accounts to Bizzell’s personal account; and funds were transferred to two guardianship accounts Bizzell established for the Robertsons in her name.
In December 2011, the defendant had checks mailed from Bank of New York, Mellon — located in Jersey City, New Jersey — to a post office box she used in Savannah, Tennessee.
Bizzell used the Robertsons’ finances to purchase two automobiles and several properties in her name, one of which was rented to a tenant. Bizzell also purchased a commercial property in Savannah, Tennessee. The property was turned into a frozen yogurt shop called Happy Katz. The defendant’s teenage daughter ran the establishment.
In July 2015, Bizzell pleaded guilty before U.S. District Judge Samuel H. Mays Jr. to one count of executing a scheme to defraud and obtain money and property by means of false and fraudulent pretenses.
On Friday, April 8, 2016, Judge Mays sentenced Bizzell to 41 months in federal prison. She was also ordered to pay $587,207.57 in restitution.
The case was investigated by the U.S. Postal Inspection Service and the Federal Bureau of Investigation.
Assistant U.S. Attorney Debra Ireland prosecuted this case on the government’s behalf.
White River Woman Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a White River, South Dakota, woman has been indicted by a federal grand jury for Assaulting, Resisting, Opposing, and Impeding a Federal Officer.
Jessica Moran, age 39, was indicted on March 15, 2016. She appeared before U.S. Magistrate Judge Mark A. Moreno on April 5, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
It is alleged that on December 10, 2015, Moran assaulted a corrections officer, while in custody at the Adult Corrections Facility in Rosebud. Moran allegedly kicked the corrections officer twice in the legs.
The charge is merely an accusation and Moran is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carrie G. Sanderson is prosecuting the case.
Moran was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Washington, D.C. Getaway Driver Sentenced to 8 Years in Prison for Carjacking and Gun ChargesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced David Nathaniel Peebles, age 32, of Washington, D.C., late Friday, April 8, 2016 to eight years in prison followed by three years of supervised release for carjacking and being a felon in possession of a gun.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Director in Charge Paul M. Abbate of the Federal Bureau of Investigation’s Washington Field Office; Chief Hank Stawinski of the Prince George’s County Police Department; Prince George’s County State’s Attorney Angela D. Alsobrooks; Chief J. Thomas Manger of the Montgomery County Police Department; Montgomery County State’s Attorney John McCarthy; Maryland Attorney General Brian E. Frosh; Chief Alan Goldberg of the Takoma Park Police Department; Chief Ronald A. Pavlik Jr.of the Metro Transit Police Department; Chief Cathy L. Lanier of the Metropolitan Police Department; and Chief Earl L. Cook of the Alexandria (City) Police Department.
According to his plea agreement, on February 8, 2012, Peebles, Jeffrey Franklin and another co-conspirator drove to the Manchester Road area of Silver Spring, Maryland, where they spotted an individual parking a 2008 Infiniti. As the individual got out of the vehicle, Peebles remained in the car while his co-conspirators approached the individual. At gunpoint, the co-conspirators demanded the keys to the car. The co-conspirators took the victim’s purse and keys, and then drove away in the Infiniti, with Peebles following behind.
On February 12, 2012, Peebles and two co-conspirators drove to the Russell Avenue area of Mount Rainier, Maryland, looking for carjacking targets. Again, Peebles remained in the car while the two co-conspirators approached victims in a 2004 Acura TL. One co-conspirator pointed a gun at the driver’s head and demanded that the driver get out of the car. The driver complied. The second co-conspirator approached the passenger in the Acura and demanded the passenger’s purse. When the victim did not immediately comply, the co-conspirator struck the victim in the face several times. During the assault, the other co-conspirator took the victim’s property. The co-conspirators then drove away in the Acura while Peebles followed.
During the course of the conspiracy, Peebles or a co-conspirator possessed a pistol with an obliterated serial number to use in the carjackings. Peebles had at least one previous felony conviction and therefore was prohibited from possessing a firearm or ammunition.
Jeffrey Carl Franklin, age 29, of Greenbelt, Maryland, previously pleaded guilty to his role in the carjacking conspiracy and is scheduled to be sentenced on June 21, 2016 at 9:00 a.m. Another member of the conspiracy, Samuel Damien Bynum, age 25, of Washington, D.C., pleaded guilty and was sentenced to 207 months in prison for conspiring to use a gun during carjackings, using a gun during a carjacking, carjacking and being a felon in possession of a gun and ammunition.
United States Attorney Rod J. Rosenstein commended the FBI; the Prince George’s County, Montgomery County, Takoma Park, Metro Transit, Alexandria and Metropolitan Police Departments; the Prince George’s County and Montgomery County State’s Attorney’s Offices; and Maryland Attorney General’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Thomas M. Sullivan and Special Assistant Matthew L. Paeffgen, who prosecuted the case.
Visalia Man Sentenced to over 12 Years in Prison for Sex Trafficking of a MinorRead the Press Release
FRESNO, Calif. — Tyrell Richmond, 33, of Visalia, was sentenced today by U.S. District Judge Lawrence O’Neill to 12 years and seven months in prison for sex trafficking a minor, United States Attorney Benjamin B. Wagner announced.
According to court documents, on June 21, 2014, FBI’s Fresno Child Exploitation Task Force and members of the Fresno Police Department’s Vice Unit conducted undercover operations targeting prostitution rings that appeared to utilize underage victims. During the investigation, they detained three 16-year-old girls, all of whom were runaways, at a motel in Fresno. Further investigation revealed that Richmond had prostituted the girls for about one week, first in Visalia and then in Fresno. Richmond collected all of the money received by the girls, and did not permit them to leave their motel rooms, other than to get ice. Richmond pleaded guilty on December 14, 2015.
At the sentencing hearing, one of the victims delivered powerful testimony about the trauma she endured at the hands of Richmond. In imposing the sentence, Judge O’Neill described Richmond’s conduct as “horrid” and noted the serious impact it had on the victims in this case.
“Today's sentencing highlights the commitment of the FBI, the Fresno Police Department, and the Visalia Police Department to combating the commercial sexual exploitation of minors in the region and the success of Operation Cross Country,” said Supervisory Special Agent Robert Guyton of the FBI Sacramento field office Fresno resident agency's violent crime squad. “Richmond's sentence offers justice for his victims and serves as a warning to others who may attempt to exploit minors.”
This case was the product of an investigation by the Federal Bureau of Investigation, the Visalia Police Department, and the Fresno Police Department. Assistant United States Attorney Vincenza Rabenn prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
United States Attorney and IRS, Special Agent in Charge, Urge Taxpayers to Beware of Fraudulent Tax Return Preparers and Tax Scheme PromotersRead the Press Release
Remind Taxpayers To Pay Federal Income Taxes On Time And In Full
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr., joined by Tracey D. Montaño, Special Agent in Charge, IRS Criminal Investigation, urged the public today, to avoid dishonest tax-return preparers and their fraudulent schemes, and urged taxpayers to pay federal income taxes on time and in full, during a press conference today, at the U.S. Attorney’s Office in Louisville.
“Recently, my Office has successfully prosecuted a number of tax preparers who unlawfully falsified returns,” stated U.S. Attorney Kuhn. “As the filing deadline approaches, it is imperative the public guard against the many dishonest and fraudulent schemes of some return preparers as well as ensure their own returns are accurate and honest.”
“The U.S. Tax system is based on a principle of voluntary compliance and is the cost we pay for government services we use on a daily basis. It is important for the honest taxpayer to have confidence that when they pay their taxes, their neighbors and co-workers are doing the same,” stated Tracey D. Montaño, Special Agent in Charge. “IRS-Criminal Investigation will continue to partner with the U.S. Attorney’s Office to ensure that those committing schemes to defraud the government and the taxpaying public are caught and prosecuted for their crimes. Those Americans who file accurate, honest and timely returns can be assured that the government will hold accountable those who don't."
During the press conference, U.S. Attorney Kuhn noted several recent successful prosecutions by his Office, with investigative assistance by the IRS Criminal Investigation division, for return preparer fraud and individual income tax fraud.
Last month, Tiffany Elliott pleaded guilty to preparing fraudulent tax returns through her business, Tax Time, Inc., by creating false deductions including investment expenses, business losses, charitable deductions, and work expenses. The loss to the United States Treasury was $255,938, exclusive of penalties and interest. Tara L. Mitchell and Mechelle Blankenship, of Logan County, Kentucky, were charged with falsely claiming education credits for taxpayers who were not entitled to them. And in a Civil Complaint by the Department of Justice Tax Division against NJ Mobile Tax Service, owner and preparer Napoleon Jackson was permanently barred from tax preparation. Jackson allegedly promised customers he could increase their chances of a higher tax return. Jackson allegedly falsified charitable donations, education credits, claims of dependents, and deductions for homes not owned by taxpayers. Preparers who charge clients a percentage of their tax refund intentionally prepare false returns to increase their clients’ refund, and thus their own fees.
As in past years, the IRS has designated return preparer fraud as one of 2016’s “Dirty Dozen” tax scams to avoid during return filing season. U.S. Attorney Kuhn and S.A.C Montaño urged taxpayers to remain diligent to ensure their returns are accurate even if they are prepared by a professional, noting that taxpayers are ultimately responsible for the content of their own returns.
Further, across the nation and in the Western District of Kentucky, individuals are prosecuted for stealing social security numbers, then filing completely fictitious returns to obtain fraudulent refunds. Recently Erica Spencer, of Louisville, was sentenced to 48 months in prison, and ordered to pay $94,000 in restitution for using identities to file fraudulent federal income tax returns and receive fraudulent federal income tax refunds in their names. Also, prosecuted in the Western District of Kentucky, Fernando Herrera, who was sentenced to 48 months in prison for a scheme that included obtaining identification documents from Mexican nationals, applying for false taxpayer identification numbers, filing fictitious returns, and obtaining fraudulent refunds totaling more than $730,000.
The IRS website has information about how to guard against identity theft: Identity Protection: Prevention, Detection and Victim Assistance information on reporting tax fraud How Do You Report Suspected Tax Fraud Activity?, and how to Report Phishing and Online Scams.
U.S. Attorney Kuhn further reminded tax payers of their obligation to file accurate federal income taxes on time and to pay in full. “Unfortunately, we all too often see taxpayers themselves filing false returns. We sometimes have cases where taxpayers fail to report income, or falsely pad deductions with false entries such as business expenses, charitable contributions, educational expenses, or dependent care credits. This is against the law, and we prosecute these cases,” concluded U.S. Attorney Kuhn. Last month, a Madisonville, Kentucky business owner was sentenced to 30 months in prison and ordered to pay $649,506.15 in restitution for filing false tax returns. Gholam A. Sattar-Shamsabadi failed to report the proceeds of his admitted insurance fraud as taxable income during a six year period.
IRS, SAC Montaño emphasized the investigative work done by the IRS Criminal Investigation office, alongside the U.S. Attorney’s Office, to find dishonest preparers and shut them down. Further, Montaño warned the public of phone scams and so called phishing scams. The IRS has seen a surge of phone scams in recent years as scam artists threaten taxpayers with police arrest, deportation and license revocation, among other things. Also, taxpayers need to be on guard against fake emails or websites looking to steal personal information. According to Montaño, the IRS will never send taxpayers an email about a bill or refund out of the blue. Montaño warned the public to not click on one claiming to be from the IRS and to be wary of strange emails and websites that may be nothing more than scams to steal personal information.
During this last week before the tax filing deadline, those in need of assistance may contact the IRS Customer Service Phone Numbers - Individuals: 800-829-1040 or Businesses:800-829-4933
U.S. taxpayers filed approximately 150 million returns in 2014. According to statistics available from the Treasury Inspector General for Tax Administration, the Internal Revenue Service (IRS) identified more than 2.1 million of those returns that claimed fraudulent refunds totaling more than $15.7 billion.
United Kingdom Man Pleads Guilty to Child PornographyRead the Press Release
FARGO - U. S. Attorney Christopher C. Myers announced that on April 11, 2016, Simon William Riley, 21, Swansea, Wales, United Kingdom, pled guilty before Judge Ralph R. Erickson to one charge of Sexual Exploitation of a Minor and two charges of Advertising Material Involving the Sexual Exploitation of Minors. All three charges carry a minimum-mandatory sentence of 15 years’ incarceration and a maximum sentence of 30 years’ incarceration.
This case came to the attention of law enforcement after the National Center for Missing and Exploited Children (NCMEC) notified members of the North Dakota Internet Crimes Against Children (ICAC) Task Force that a website on the Tor Network contained child pornographic images of a girl located in Fargo, North Dakota. Subsequently, ICAC task force members identified the 13-year-old victim who told law enforcement that she sent the sexually explicit images to another female via Kik Messenger. In reality, this “female” was Simon Riley, an adult male. After Riley obtained these images, he posted advertisements on the website found on the Tor Network. The advertisement contained a link to a file-sharing site where other Tor users could access the images depicting the victim. Law enforcement determined that the victim’s images were accessed on more than 20,000 occasions by Tor users located throughout the world.
Through further investigation, the ND Bureau of Criminal Investigations and Homeland Security Investigation agents identified Simon Riley in the United Kingdom as the individual responsible for posting the above-mentioned advertisements. Based upon information provided to them by the ND ICAC task force, the National Crime Agency in the United Kingdom executed a search warrant at Riley’s residence on September 10, 2015. Foreign law enforcement recovered evidence at Riley’s residence which linked him to the user account that posted the advertisements on the Tor Network and which contained a link to a separate file-sharing site which contained the victim’s images.
Riley was later arrested on September 11, 2015, while vacationing in Orlando, Florida.
Judge Erickson has set sentencing for July 13, 2016, at the U. S. District Court, Fargo, ND.
This case is being investigated by the Department of Homeland Security - Homeland Security Investigations in Grand Forks, ND, as well as the North Dakota Bureau of Criminal Investigation and the Fargo Police Department.
Assistant U. S. Attorney Jennifer Puhl is prosecuting the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by U.S. Attorneys’ Offices throughout the nation, Project Safe Childhood, in conjunction with Internet Crimes Against Children Task Force (ICAC), help federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems, or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations, and criminal prosecutions. Project Safe Childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Court of Appeals for the Third Circuit Denies Former Lackawanna County Commissioner’s Latest AppealRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the U.S. Court of Appeals for the Third Circuit denied former Lackawanna County Commissioner Robert C. Cordaro’s latest appeal regarding his 2011 conviction on multiple public corruption charges. Specifically, the Court of Appeals denied Cordaro’s request for a Certificate of Appealability of U.S District Court Judge A. Richard Caputo’s August 18, 2015, denial of Cordaro’s motion for a new trial based on ineffective assistance of counsel. The Appellate Court also denied Cordaro’s motion for release from custody.
In it’s Order denying Cordaro’s appeal, the Appellate Court stated:
The application for a Certificate of Appealability is denied because [Mr. Cordaro] has not made a substantial showing of the denial of a Constitutional right. For the reasons given by the District Court, [Mr. Cordaro] has not shown that jurists of reason would debate the denial of his claims. In particular, jurists of reason would not debate whether [Mr. Cordaro] failed to establish prejudice for any of his claims of ineffective assistance of counsel.
Cordaro was convicted in 2011, along with former Lackawanna County Commissioner Anthony Munchak, on multiple charges including racketeering and other public corruption offenses relating to the Commissioner’s demands for payments and other benefits from individuals and entities doing business with Lackawanna County. Cordaro was sentenced on January 30, 2012, to serve 132 months’ imprisonment and the Third Circuit affirmed the conviction and sentence on May 31, 2013.
After the conviction and sentenced were affirmed, Cordaro filed a motion to vacate his conviction and sentence based on alleged ineffective assistance of his trial counsel. A three-day hearing was held in January 2015 and the District Court denied the motion in August 2015.
Cordaro appealed that ruling and the decision today by the Third Circuit Court of Appeals affirmed the District Court’s August 2015 ruling.
The case was investigated by the Federal Bureau of Investigation and the Criminal Investigation Division of the Internal Revenue Service. At trial, the government was represented by Assistant United States Attorneys Lorna N. Graham, William S. Houser and Bruce Brandler.
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Two men sent to prison for role in forced-labor scheme that exploited Guatemalan minors at Ohio egg farmRead the Press Release
Conrado Salgado Soto, 53, of Mexico, was sentenced to 51 months in prison today in the Northern District of Ohio for his role in luring Guatemalan minors and adults into the United States on false pretenses, then using threats of physical harm to compel their labor at egg farms in Ohio.
The announcement was made by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division; Acting U.S. Attorney Carole S. Rendon of the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division.
Salgado Soto pleaded guilty to the labor-trafficking conspiracy in August 2015.
According to the indictment, which was unsealed on July 2, 2015, members of the labor-trafficking conspiracy recruited workers from Guatemala, some as young as 14 or 15 years old, falsely promising them good jobs and a chance to attend school in the United States. Salgado’s co-conspirators then smuggled and transported the workers to a trailer park in Marion, Ohio, where he and his co-conspirators ordered them to live in dilapidated trailers and to work at physically demanding jobs at Trillium Farms for up to 12 hours a day for minimal amounts of money. The work included cleaning chicken coops, loading and unloading crates of chickens, de-beaking chickens and vaccinating chickens. Eight minors and two adults were identified in the indictment as victims of the forced labor scheme.
Another co-defendant, Pablo Duran Jr., was sentenced today to 14 months in prison for alien harboring. Duran Jr. pleaded guilty in December 2015.
“The defendants operated a criminal enterprise that exploited the hopes and dreams of young people eager to make better lives for themselves here in the United States,” said Principal Deputy Assistant Attorney General Gupta. “The Department of Justice will continue to vigorously prosecute and hold accountable those who target innocent men, women and children for trafficking and threaten violence to assert their illegal control.”
“These defendants preyed upon vulnerable children with false promises of a better life and instead forced them into manual labor in horrific conditions on an egg farm for little or no pay,” said Acting U.S. Attorney Rendon. “We will continue to prosecute human traffickers, whether they force children into the commercial sex industry or enslave them in rural parts of our district. Protecting the most vulnerable people in our communities will always remain a top priority.”
“These defendants preyed upon vulnerable children and families,” said Special Agent in Charge Anthony. “This investigation revealed how they used threats, humiliation, deprivation and other means to keep these minors working and enriching the defendants.”
Aroldo Castillo-Serrano, 33, led the conspiracy and pleaded guilty in December 2015 to the labor-trafficking conspiracy, forced labor, witness tampering and alien harboring. He will be sentenced on June 27, 2016. Ana Angelica Pedro Juan, 22, pleaded guilty in February 2016 to the trafficking conspiracy and her sentencing hearing is set for June 27. Pedro Juan’s role in the scheme included falsely representing herself to government officials as a family friend of the minor victims in order to have them released to her custody, as well as overseeing the trailers where the victims were housed and arranging for their wages to be transferred to co-conspirators in Guatemala and elsewhere.
Two other co-defendants, Conrado Salgado-Borbon and Bartolo Dominguez, pleaded guilty to immigration offenses in connection with this case and were sentenced to six and 12 months, respectively.
The investigation is ongoing. The case is being investigated by the FBI Cleveland Division’s Mansfield Resident Agency, the Department of Homeland Security, the Marion Police Department and the Marion County Sherriff’s Office. The case is being jointly prosecuted by Trial Attorney Dana Mulhauser of the Civil Rights Division and Assistant U.S. Attorney Chelsea Rice of the Northern District of Ohio.
Two charged with heroin traffickingRead the Press Release
WHEELING, WEST VIRGINIA – A federal grand jury has returned an indictment charging Shawn Lamont McClain, 36, of Lisbon, Ohio, and Angel Rae Klein, 27, of Wheeling, with heroin trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Klein and McClain are alleged to have possessed and sold heroin throughout late 2014 and early 2015 in Ohio County, West Virginia. In several instances, the defendants allegedly sold heroin containing fentanyl. McClain, also known as “Gucci,” is specifically alleged to have sold heroin in February 2015 near Madison Elementary School in Wheeling. He was previously sentenced to ten years in prison in the Northern District of West Virginia for heroin trafficking in March 2015.
Both defendants are charged with one count of “Conspiracy to Distribute Heroin and Fentanyl.” Klein is further charged with two counts of “Distribution of Heroin,” one count of “Distribution of Heroin and Fentanyl,” and one count of “Possession with Intent to Distribute Heroin.” McClain is further charged with one count of “Distribution of Heroin and Fentanyl” and one count of “Distribution of Heroin and Fentanyl within 1,000 feet of a Protected Location.” McClain faces between one and forty years in prison and a fine of up to $2,000,000 on the protected location charge. The defendants each face up to 20 years in prison and a fine of up to $1,000,000 on each of the other counts. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
United States Attorney William Ihlenfeld is prosecuting the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Plead Guilty to Tax Refund ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two defendants have pleaded guilty in federal court to their roles in a tax refund conspiracy.
Theresa R. Gee, 45, of Kansas City, Mo., pleaded guilty today before U.S. District Judge Gary A. Fenner to one count of conspiracy to defraud the government. Co-defendant Nathaniel J. Justice, 43, formerly of Kansas City, Mo., pleaded guilty to the same charge on Thursday, April 7, 2016.
By pleading guilty, Gee and Justice admitted that they participated in a conspiracy from March 29, 2011, to Feb. 10, 2013, to submit false claims for federal income tax refunds.
The tax refund scheme involved the creation of false and fraudulent Form W-2s. The false W-2 forms reported fictitious employer information, fictitious income, fictitious income tax withholdings, fictitious dependents and other false information. Gee and Justice provided false W-2 forms to others (“filers”) who would then use the false W-2s to fraudulently file for federal and state income tax returns. Sometimes they would escort the filer inside H&R Block and assist the filer in the preparation of the fraudulent tax forms.
Gee and Justice recruited filers into the conspiracy through family relationships, friendships and other personal contacts. Conspirators promised each filer a portion or percentage of the illegally obtained refund. Gee and Justice also paid a fee – typically $500 – to those who referred a filer who was willing to participate in the scheme.
At the completion of the tax preparation process Gee and Justice retained the filer’s Emerald Card. (The Emerald Card would access an ATM account upon which the return would automatically be down-loaded.) Gee and Justice withdrew the refunds, gave a portion of each refund to the filer and kept a substantial portion for themselves.
The loss attributable to Gee and Justice is as much as $160,000. Gee and Justice are jointly and severally liable for restitution.
Under federal statutes, both Gee and Justice are subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Senior Litigation Counsel Gregg Coonrod. It was investigated by IRS-Criminal Investigation.
Two Defendants Sentenced for Role in Forced Labor Scheme that Exploited Guatemalan Minors at Ohio Egg FarmsRead the Press Release
Conrado Salgado Soto, 53, of Mexico, was sentenced to 51 months in prison today in the Northern District of Ohio for his role in luring Guatemalan minors and adults into the United States on false pretenses, then using threats of physical harm to compel their labor at egg farms in Ohio.
The announcement was made by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division; Acting U.S. Attorney Carole S. Rendon of the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division.
Salgado Soto pleaded guilty to the labor-trafficking conspiracy in August 2015.
According to the indictment, which was unsealed on July 2, 2015, members of the labor-trafficking conspiracy recruited workers from Guatemala, some as young as 14 or 15 years old, falsely promising them good jobs and a chance to attend school in the United States. Salgado’s co-conspirators then smuggled and transported the workers to a trailer park in Marion, Ohio, where he and his co-conspirators ordered them to live in dilapidated trailers and to work at physically demanding jobs at Trillium Farms for up to 12 hours a day for minimal amounts of money. The work included cleaning chicken coops, loading and unloading crates of chickens, de-beaking chickens and vaccinating chickens. Eight minors and two adults were identified in the indictment as victims of the forced labor scheme.
Another co-defendant, Pablo Duran Jr., was sentenced today to 14 months in prison for alien harboring. Duran Jr. pleaded guilty in December 2015.
“The defendants operated a criminal enterprise that exploited the hopes and dreams of young people eager to make better lives for themselves here in the United States,” said Principal Deputy Assistant Attorney General Gupta. “The Department of Justice will continue to vigorously prosecute and hold accountable those who target innocent men, women and children for trafficking and threaten violence to assert their illegal control.”
“These defendants preyed upon vulnerable children with false promises of a better life and instead forced them into manual labor in horrific conditions on an egg farm for little or no pay,” said Acting U.S. Attorney Rendon. “We will continue to prosecute human traffickers, whether they force children into the commercial sex industry or enslave them in rural parts of our district. Protecting the most vulnerable people in our communities will always remain a top priority.”
“These defendants preyed upon vulnerable children and families,” said Special Agent in Charge Anthony. “This investigation revealed how they used threats, humiliation, deprivation and other means to keep these minors working and enriching the defendants.”
Aroldo Castillo-Serrano, 33, led the conspiracy and pleaded guilty in December 2015 to the labor-trafficking conspiracy, forced labor, witness tampering and alien harboring. He will be sentenced on June 27, 2016. Ana Angelica Pedro Juan, 22, pleaded guilty in February 2016 to the trafficking conspiracy and her sentencing hearing is set for June 27. Pedro Juan’s role in the scheme included falsely representing herself to government officials as a family friend of the minor victims in order to have them released to her custody, as well as overseeing the trailers where the victims were housed and arranging for their wages to be transferred to co-conspirators in Guatemala and elsewhere.
Two other co-defendants, Conrado Salgado-Borbon and Bartolo Dominguez, pleaded guilty to immigration offenses in connection with this case and were sentenced to six and 12 months, respectively.
The investigation is ongoing. The case is being investigated by the FBI Cleveland Division’s Mansfield Resident Agency, the Department of Homeland Security, the Marion Police Department and the Marion County Sherriff’s Office. The case is being jointly prosecuted by Trial Attorney Dana Mulhauser of the Civil Rights Division and Assistant U.S. Attorney Chelsea Rice of the Northern District of Ohio.
Three Eagle Butte Men Charged with Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Randolph J. Seiler announced that three Eagle Butte, South Dakota, men have been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily.
Tahlon Ducheneaux, age 23, Raymond Uses The Knife, III, a/k/a Yamni Uses The Knife, III, age 25, and Chase Dolphus, age 21, were indicted on February 17, 2016. All three made initial appearances before U.S. Magistrate Judge Mark A. Moreno, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $500,000 fine, 6 years of supervised release, and $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about July 25, 2015, Ducheneaux, Uses The Knife, and Dolphus unlawfully assaulted another human being, resulting in serious bodily injury.
The charges are merely accusation and Ducheneaux, Uses The Knife, and Dolphus are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Ducheneaux and Dolphus were released on bond pending trial. Uses The Knife was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for April 26, 2016.
Tennessee Tax Return Preparer Charged with Filing False Tax ReturnsRead the Press Release
A federal grand jury sitting in Nashville, Tennessee, returned an indictment on April 6, which was unsealed today, against a Nashville woman charging her with six counts of assisting in the preparation of false tax returns, two counts of filing false personal tax returns and one count of obstructing the due administration of the internal revenue laws, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney David Rivera for the Middle District of Tennessee.
According to the indictment, Tracey Brown operated a tax return preparation business, Total Tax Services, from her residence. It is alleged that between 2006 and 2010, she filed false tax returns on behalf of her clients. On these returns, Brown claimed a variety of fraudulent deductions, including medical expenses, charitable contributions and unreimbursed employee expenses. After one of her clients was audited, Brown provided false documentation to the Internal Revenue Service (IRS). Brown is also alleged to have under-reported the gross receipts and sales figures on her personal income tax returns for the years 2008 and 2009.
If convicted, Brown faces a statutory maximum sentence of three years in prison for each count. She also faces substantial monetary penalties, supervised release and restitution.
An indictment merely alleges that crimes have been committed. Defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Rivera commended special agents of IRS-Criminal Investigation, who investigated the case and Assistant U.S. Attorney Tom Jaworski and Trial Attorneys Alex Effendi and Nathan Brooks of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
St. Louis Area Man Sentenced for Role in Cocaine ConspiracyRead the Press Release
Keith Harris, 60, of St. Louis, Missouri, was sentenced on April 8, 2016, in federal court, for his role as being courier for a drug distribution organization that funneled cocaine from Houston, Texas, to the Metro-East area, between April 2011 and February 2013, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today. Harris was sentenced to 32 months in prison, 2 years’ supervised release, ordered to pay a $200 fine and a $100 special assessment. To date, all ten other individuals charged as a result of this investigation have been convicted and sentenced.
Evidence in support of the sentencing was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. This case was investigated by the Drug Enforcement Administration (DEA). This case was prosecuted by Assistant United States Attorney Laura V. Reppert and Assistant United States Attorney Jonathan S. Drucker.
Shreveport man pleads guilty to drug and firearm chargesRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Shreveport man pleaded guilty last week to possession of marijuana with intent to distribute and possession of firearms in furtherance of drug trafficking.
Latrenton D. Washington, 28, of Shreveport, pleaded guilty Friday before U.S. District Judge Elizabeth E. Foote to one count of possession with intent to distribute marijuana and one count of possession of a firearm in furtherance of a drug trafficking crime. According to the guilty plea, while executing a warrant for another defendant at Washington’s residence on August 12, 2014, Shreveport police and Louisiana Probation and Parole agents discovered marijuana, scales and packaging items along with a loaded Romarm WASR-10 semi-automatic rifle with a drum magazine holding 65 rounds of 7.62x39 mm ammunition and a loaded Taurus .45 caliber pistol in Washington’s bedroom.
Washington faces up to five years in prison on the possession with intent to distribute marijuana count and an additional mandatory sentence of five years to life in prison for the possession of a firearm in the furtherance of the drug trafficking count. The five year sentence for the firearm is mandatory and runs consecutive to his sentence on the possession with intent to distribute marijuana count. Additionally, he faces five years of supervised release and a $250,000 fine for each count. A sentencing date of August 4, 2016 was set.
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to promote firearm safety and to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm.
The ATF, Louisiana State Probation and Parole, and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. is prosecuting the case.
San Antonio Accountant Pleads Guilty to Obstructing the IRSRead the Press Release
In San Antonio, Richard Molina Soto, owner of RMS & Associates, pleaded guilty to corruptly endeavoring to obstruct and impede the due administration of the internal revenue laws by failing to pay over $280,000 to the Internal Revenue Service on behalf of his clients, announced United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter.
Appearing before United States Magistrate Judge Pamela Mathy this afternoon, Soto pleaded guilty to one count of corruptly endeavoring to obstruct and impede the due administration of the internal revenue laws.
According to court records, from November 2009 to November 2011, Soto convinced his clients that he was a Certified Public Accountant who could prepare their income tax returns. Once the tax forms had been completed, Soto told his clients their balance due and provided them with the option of paying through RMS what they owed the IRS. Ultimately, Soto stole monies from clients who chose to pay through RMS. The total amount which Soto should have, but failed to pay to the IRS on behalf of his clients, was $282,107.01.
Soto, who remains on bond pending sentencing, faces up to three years in federal prison. Sentencing is scheduled for 9:00am on July 5, 2016, before Senior United States District Judge David Alan Ezra.
This case was investigated by special agents with the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney William R. Harris is prosecuting this case on behalf of the Government.
Rapid City Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Joseph Hatchett, age 39, was indicted on March 22, 2016. Hatchett appeared before U.S. Magistrate Judge Daneta Wollmann on April 4, 2016, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Hatchett failing to register and update his registration as a convicted sex offender between January 15, 2016, and March 10, 2016.
The charge is merely an accusation and Hatchett is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Hatchett was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for June 7, 2016.
Previously Convicted Felon Exiled to Eight Years in Prison for Gun and Drug OffensesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Deon Thornton, age 32, of Suitland, Maryland, today to eight years in prison, followed by four years of supervised release, for distribution of crack cocaine and for possession of a firearm by a convicted felon.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Michael B. Boxler of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Washington Field Division; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Chief M. Jay Farr of the Arlington County, Virginia Police Department; and Chief Earl L. Cook of the Alexandria, Virginia Police Department.
According to his plea agreement, on May 28 and June 10, 2015, the ATF and DEA used a confidential source to purchase 56 grams and 62 grams of crack cocaine, respectively, from Thornton. On June 9, 2015, ATF and DEA used an undercover officer to purchase a .357 caliber revolver from Thornton. On June 23, 2015, a confidential source for ATF and DEA purchased two guns, a 9mm pistol and a .22 caliber pistol, both with obliterated serial numbers, from Thornton.
Thornton has previous felony drug and gun convictions and is therefore prohibited from possessing a gun or ammunition.
United States Attorney Rod J. Rosenstein commended the ATF, DEA, Alexandria Police Department and Arlington Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Lindsay Eyler Kaplan, who prosecuted the case.
Premiertox Pays U.S. and Tennessee $2.5 Million to Resolve False Claims Act LawsuitRead the Press Release
PremierTox 2.0, Inc. has paid $2.5 million to resolve alleged violations of the False Claims Act, announced David Rivera, United States Attorney for the Middle District of Tennessee. PremierTox previously did business in Tennessee under the name Nexus and is a company that provides drug urine screening services to citizens of Tennessee and Kentucky. The government alleged that PremierTox submitted false claims when billing Medicare, TennCare and Kentucky Medicaid for drug urine screening services.
“Enforcement of the False Claims Act continues to be a top priority of the U.S. Attorney’s Office,” said U.S. Attorney David Rivera. “We will continue to intervene in these matters when the protection of taxpayers’ interest and integrity of our nation’s healthcare industry becomes necessary.”
The settlement resolves the government’s allegations that PremierTox and Nexus submitted three types of false claims during the period of September 2011 through June 2014, while PremierTox was under its former ownership and management. The government alleged that PremierTox had a swapping arrangement, in which Nexus gave below cost discounts on its urine drug screen tests to patients in Tennessee without insurance, in exchange for physicians’ referring their patients with Medicare or TennCare coverage to Nexus. The government also contended that, in Tennessee, Nexus submitted excessive claims to Medicare and TennCare for laboratory testing that was beyond what was medically reasonable and necessary. In addition, the government claimed that, in Kentucky, PremierTox provided point of care testing cups to medical offices free of charge to induce those providers to use PremierTox’s services.
“Our office will continue to work with our state and federal partners to combat healthcare fraud,” said Attorney General Herbert H. Slatery III. “In order to protect Tennessee tax dollars, it is imperative that we pursue those individuals attempting to take advantage of the system.”
Under the settlement agreement, PremierTox paid a total of $2,500,000. Of that amount, $2,125,000 covers the conduct in Tennessee, and $325,000 covers the conduct in Kentucky. The United States will receive $1,757,300 under the settlement, and Tennessee will receive $325,200.
"Medically unnecessary lab tests and financial incentives from labs to doctors in exchange for referrals are costing the taxpayers millions of dollars," said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. "This settlement is one of many that are sending a strong message to the lab industry that they need to clean up their act."
The allegations resolved by today’s settlement were originally raised in two lawsuits filed against PremierTox in Tennessee and Kentucky under the qui tam, or whistleblower provision of the False Claims Act. This provision allows private citizens to bring civil suits on behalf of the government and to share in any recovery.
The lawsuit in Tennessee was filed by a former office manager of a pain clinic in Cookeville. The relator in this case will receive $361,250. The relator who brought the lawsuit in Kentucky is the former CEO of PremierTox and will receive and $56,250.
The Tennessee lawsuit remains pending against several other defendants whom the United States and Tennessee allege violated the False Claims Act and the Tennessee Medicaid False Claims Act. The remaining claims include allegations that Lenoir City chiropractor Matthew Anderson operated the Cookeville Center for Pain Management as a pill mill in which a nurse practitioner wrote prescriptions that Medicare and TennCare paid for, that had no legitimate medical purpose; and that Dr. David Florence likewise operated a pill mill at his Center for Advanced Medicine in Manchester, Tennessee.
This case was investigated by the U.S. Department of Health & Human Services Office of Inspector General and the Tennessee Bureau of Investigation Medicaid Fraud Control Unit. The United States is represented in these cases by Assistant U.S. Attorneys Ellen Bowden McIntyre for the Middle District of Tennessee and Ben Schecter of the Western District of Kentucky. The State of Tennessee is represented by Assistant Attorney General Phillip Bangle.
The two cases are docketed as United States ex rel. Norris v. Anderson, No. 2:13-cv-00035 (M.D. Tenn.) and United States ex rel. Duncan v. Nexus Lab, Inc., No. 1:14-cv-89-R (W.D. Ky.). The claims settled by this agreement are allegations only, and there has been no determination of liability.
Pine Ridge Man Indicted for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Pine Ridge, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Franklin Long Black Cat, a/k/a Franklin Long, age 22, was indicted on March 22, 2016. He appeared before U.S. Magistrate Judge Daneta Wollman on March 25, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction on Count I and II is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to an incident that occurred on February 14, 2016, where Long Black Cat assaulted the victim with a dangerous weapon, resulting in serious bodily injury.
The charge is merely an accusation and Long Black Cat is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs Office of Justice Services. Assistant U.S. Attorney Megan Poppen is prosecuting the case.
Long Black Cat was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for May 31, 2016.
One Fresno Defendant Sentenced to Federal Prison, Another Enters Guilty Plea for Structuring Financial Transactions Involving Drug Trafficking ProceedsRead the Press Release
FRESNO, Calif. B Aseel Al-Saber, 24, of Fresno, was sentenced today by United States District Judge Lawrence J. O’Neill to one year and a day in federal prison for conspiring to structure cash transactions, United States Attorney Benjamin B. Wagner announced. In addition, co-defendant Brandon Thomas, 26, of Fresno, pleaded guilty today to conspiring to structure cash transactions. He is scheduled to be sentenced on August 29, 2016, before Judge O’Neill.
According to court documents, Al-Saber and seven co-defendants opened and maintained bank accounts for the purpose of funneling cash proceeds of marijuana trafficking from Florida and other states back to California. Al-Saber’s bank account was used to deposit and withdraw more than $72,000 in cash in amounts of $10,000 or less to prevent Currency Transaction Reports from being filed by the banks on those transactions. The cash funneled through Al-Saber’s bank account was the proceeds marijuana trafficking. In addition, Al-Saber recruited two other individuals to have more than $30,000 in proceeds of marijuana trafficking funneled through their respective bank accounts.
According to his plea agreement, over $700,000 passed through accounts opened and maintained by Thomas in structured transactions. In total, the government alleges that members of the conspiracy involving Al-Saber and Thomas structured more than $7.5 million in cash that was the proceeds of marijuana trafficking.
This case is being brought as part of Operation Footprint, a nationwide law enforcement initiative led by the U.S. Attorney’s Offices, the Internal Revenue Service- Criminal Investigation, the Drug Enforcement Administration, and the United States Postal Inspection Service. Operation Footprint targets large drug trafficking organizations by identifying the transfer of drug proceeds through financial institutions, bulk cash smuggling and other forms of money transfers. Operation Footprint is focused on bringing criminal charges based on Bank Secrecy Act violations in addition to violations of the Controlled Substances Act and the Money Laundering Control Act.
This case is also the product of the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies. Assistant U.S. Attorney Grant B. Rabenn is prosecuting the case.
Previously, co-defendant Chad Riffle was sentenced to five years imprisonment and co-defendant Jeremy Murphy was sentenced to fifteen months in prison. In addition, co-defendants Peter Capodieci, Miguel Gonzalez and Bree Benson have pleaded guilty to conspiring to structure financial transactions and are awaiting sentencing. The maximum statutory penalty for conspiracy to structure is five years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Co-defendant Ashley Starling Thomas is scheduled for trial on May 24, 2016. The charges against Ashley Thomas are only allegations; she is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Okreek Man Charged with Involuntary ManslaughterRead the Press Release
United States Attorney Randolph J. Seiler announced that an Okreek, South Dakota, man has been indicted by a federal grand jury for Involuntary Manslaughter.
Donovan Wright, age 48, was indicted on February 17, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 5, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
It is alleged that on January 30, 2016, in Todd County, South Dakota, Wright killed a man by operating a motor vehicle in a grossly negligent manner.
The charge is merely an accusation and Wright is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and Federal Bureau of Investigation. Assistant U.S. Attorney Kirk W. Albertson is prosecuting the case.
Wright was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
New York man pleads guilty to role in credit card fraud schemeRead the Press Release
WHEELING, WEST VIRGINIA – Dante Callum, 38, originally from New York, pled guilty to credit card fraud in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Callum unlawfully purchased stolen credit card numbers. He then conspired with another individual to fabricate debit cards using the stolen credit card numbers. Callum would use the fabricated debit cards to purchase legitimate gift cards from a variety of retail outlets. He would then sell the gift cards in exchange for authentic United States currency.
Callum pled guilty to an Information charging him with one count of “Fraud Related to Access Devices.” He faces up to 10 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David Perri prosecuted the case on behalf of the government. The Ohio County, West Virginia Sheriff’s Department and the United States Secret Service investigated.U.S. Magistrate Judge James E. Seibert presided.
Multiple defendants headed to prison for Federal heroin crimesRead the Press Release
HUNTINGTON, W.Va. – Three defendants were sentenced to federal prison today for heroin crimes, announced Acting United States Attorney Carol Casto. Eddie William Randall, 36, of Detroit, was sentenced to ten years in federal prison for possession with intent to distribute 100 grams or more of heroin and for possession of a firearm in furtherance of a drug trafficking crime. Krishauna Deshay Brown, 37, of Huntington, was sentenced to a year and three months in federal prison for possession with intent to distribute heroin. In a separate drug prosecution, Terrance Donte Hensley, 20, of Huntington, was sentenced to three years and a month in federal prison for distribution of heroin.
From December 2014 until their arrests in 2015, Randall, Brown, and others conspired to distribute heroin that was transported from Detroit to the Huntington area. Brown resided at 209 West 9th Avenue in Huntington, and she allowed Randall to store and distribute heroin from her residence. On February 26, 2015, officers with the Huntington FBI Drug Task Force executed a search warrant at Brown’s residence and seized heroin, along with other paraphernalia used to sell heroin. Brown admitted that she possessed the heroin at her residence and intended to distribute it.
On June 25, 2015, officers executed search warrants at 2736 Rear 4th Avenue and 1128 25th Street in Huntington. Officers utilized a confidential informant to make several controlled purchases of heroin from Randall in and around those residences leading up to the search. Officers located Randall inside the 4th Avenue residence and seized approximately 40 grams of heroin, a loaded 9mm pistol, and $13,030 in cash. During the search of the 25th Street residence, officers seized approximately 280 grams of heroin and a loaded .45 caliber pistol. Randall admitted that he possessed the heroin from both residences for distribution and that he possessed the pistols in an effort to protect himself from theft or robbery of heroin or cash.
As the result of a separate drug investigation, Terrance Donte Hensley admitted that on five occasions between June 26 and July 9, 2015, he distributed heroin at various locations in Hurricane and Huntington to a confidential informant working with law enforcement.
The investigation of Brown and Randall was conducted by the Huntington FBI Drug Task Force, the Huntington Police Department, and the Cabell County Sheriff’s Department. Assistant United States Attorney Joseph F. Adams is responsible for the prosecutions of Brown and Randall. The investigation of Hensley was conducted by the Metropolitan Drug Enforcement Network Team, the Huntington Police Department, and the DEA Task Force. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution of Hensley. Chief United States District Judge Robert C. Chambers imposed the sentences.
These cases are part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Morgantown, WV man sentenced for unlawful possession of stolen firearmsRead the Press Release
CLARKSBURG, WEST VIRGINIA – William Dennison, 24, of Morgantown, West Virginia, was sentenced today to 33 months in prison for unlawful possession of stolen firearms, United States Attorney William J. Ihlenfeld, II, announced.
Dennison was discovered in Monongalia County, West Virginia in possession of two stolen firearms, including a .38 caliber revolver and a .22 caliber pistol. He pled guilty in November 2015 to one count of “Possession of Stolen Firearms.”
Assistant U.S. Attorney David Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. District Judge Irene M. Keeley presided.
Modesto Developer Sentenced for Mortgage Fraud SchemeRead the Press Release
FRESNO, Calif. — United States District Judge Anthony W. Ishii sentenced Aruna Kumari Chopra, 66, of Modesto, today to one year and one day in prison, to be followed by a year of home confinement, for her mail fraud conviction in connection with a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced.
According to court documents, in 2008, Chopra purchased property on Dale Road in Modesto that she intended to develop into a shopping center to be called “The Plaza at Dale.” She defrauded lenders by filing documents with the Stanislaus County Recorder=s Office that contained forged signatures in an attempt to conceal liens on the property from her lenders. The loans made by the defrauded lenders on the property totaled approximately $8.9 million. Chopra pleaded guilty on November 30, 2015.
This case was the product of an investigation by the Federal Bureau of Investigation, the Stanislaus County District Attorney’s Office, and the Federal Housing Finance Office, Office of Inspector General, working together through the San Joaquin Mortgage Fraud Task Force. The U.S. Attorney and the FBI created the San Joaquin Valley Mortgage Fraud Task Force in 2009 to further the prosecution of mortgage fraud cases arising out of the southern half of the Central Valley. Assistant United States Attorney Mark J. McKeon prosecuted the case.
Mission Man Charged with Aggravated Sexual Abuse of a ChildRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child.
Jeremiah Jay Swalley, age 33, was indicted on March 22, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 8, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is thirty years up to life in custody and/or a $250,000 fine, up to life of supervised release, $100 to the Federal Crime Victims Fund, and a $5,000 assessment to the Domestic Trafficking Fund. Restitution may also be ordered.
The Indictment alleges that between July 1, 2015, and July 31, 2015, Swalley knowingly engaged in and attempted to engage in a sexual act, by the use of force, with a child who had not attained the age of 16 years, and was, at least, four years younger than Swalley.
The charge is merely an accusation and Swalley is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk W. Albertson is prosecuting the case.
Swalley was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for June 7, 2016.
Media Advisory: Town Hall Meeting Prescription Pain Killers and the Heroin EpidemicRead the Press Release
CEDAR RAPIDS, IA – The United States Attorney’s Office, in partnership with the Mercy Medical Center and the Eastern Iowa Heroin Initiative, has scheduled a Town Hall Meeting on April 13th to discuss prescription pain killers and the heroin epidemic making its way into Eastern Iowa. Drug overdose is the leading cause of accidental death in the U.S., with 47,055 lethal drug overdoses in 2014. Opioid addiction is driving this epidemic, with 18,893 overdose deaths related to prescription pain relievers, and 10,574 overdose deaths related to heroin in 2014. Dubuque joins other Iowa cities facing this threat.
Viewed as a national challenge requiring a community solution, the meeting will bring the community together to exchange information and to discuss strategies to address the epidemic plaguing our state.
Visit www.facebook.com/EasternIowaHeroinInitiative to learn more. You can also join us at #HeroinTownHall.
U.S. Attorney Kevin W. Techau will be present. The event is open to the public.
Event Details
When: April 13, 2016 (flyer is attached)
Where: Grand River Center (Ballroom), 500 Bell Street, Dubuque, Iowa
Time: Begins at 6:00 p.m. - 8:00 p.m.
Link to flyer: /media/827151/dl?inline
Press wishing to attend should contact AUSA Steve Young at 319-731-4037, or by emailing him at [email protected]. Interview opportunities will be available.
Follow us on Twitter @USAO_NDIA.
Mass. Man Charged with Attempted Coercion and Enticement of a Minor in AlbanyRead the Press Release
ALBANY, NEW YORK – David Rancourt, age 61, of Palmer, Massachusetts, was arrested and charged on Saturday with attempting to meet a 14-year-old boy for sex.
The announcement was made by United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.
Rancourt faces at least 10 years and up to life in prison on the charge of attempted coercion and enticement of a minor. He also faces a term of post-imprisonment supervised release of at least 5 years and up to life, a fine of up to $250,000, and mandatory registration as a sex offender. Today, United States Magistrate Judge Daniel J. Stewart ordered Rancourt detained pending trial.
The charges in the complaint are merely accusations. The defendant is presumed innocent until proven guilty.
According to the criminal complaint, Rancourt posted an online advertisement titled "Dad looking for a son," in which he solicited sexual role-play encounters. Following email exchanges with a Colonie Police Department officer acting undercover, Rancourt travelled to Albany in order to meet at a prearranged time and place to engage in sexual activities with a person he believed to be a 14-year-old boy.
This case is being investigated by the Federal Bureau of Investigation and the Colonie Police Department, and is being prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Maryland Business Owner Sentenced to Two Years in Prison for Failing to Pay over $1.4 Million in TaxesRead the Press Release
WASHINGTON – A Maryland man was sentenced today to 24 months in prison for failing to pay over $1.4 million in federal personal income tax and employment taxes, announced U.S. Attorney Channing D. Phillips, Special Agent in Charge Thomas Jankowski of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI), and Assistant Director in Charge Paul M. Abbate, of the FBI’s Washington Field Office.
James T. Redding, 48, of Reistertown, Md., pled guilty in August 2015 to one count of attempted tax evasion and one count of willful failure to collect or pay over tax. He was sentenced by the Honorable Senior Judge Royce C. Lamberth of the U.S. District Court for the District of Columbia. Following his prison term, he will be placed on three years of supervised release. Redding also must pay a total of $1,473,054 in restitution to the IRS.
“James Redding was a serial tax evader who committed numerous violations over a five-year period, resulting in a $1.4 million loss to the federal government,” said U.S. Attorney Phillips. “This investigation and prosecution show that there are significant consequences for those who try to avoid paying their fair share of taxes. Hopefully this case will deter others from committing such crimes.”
“For years, Mr. Redding defrauded the American tax system through deceptive personal and corporate tax returns,” said Assistant Director in Charge Abbate. “By evading his income tax and payroll tax obligations, he cheated the hard-working taxpayers in this country for his own personal gain. The FBI and the IRS will vigorously pursue justice against those individuals who commit tax fraud and evasion.”
“Today, Mr. Redding has to face the consequences of failing to report all of his income on his federal tax returns and paying the tax he owed,” said Special Agent in Charge Jankowski. “In today’s economic environment, it is imperative the American taxpayer feel confident that everyone is paying their fair share. When criminals evade their taxes, honest Americans end up having to pay more.”
According to court documents, Redding was the president, sole shareholder and sole director of James T. Redding, Inc., doing business as JTR Inc., JTR Finishing Contractors, and JTR Construction. The company was primarily engaged in the business of interior construction in the District of Columbia and Maryland.
Redding filed false and fraudulent tax returns for James T. Redding, Inc., for the 2009 and 2010 calendar years. He did not file returns for the corporation for the 2011, 2012, and 2013 calendar years.
Redding was required to report all of the corporation’s income on his personal tax returns and pay taxes for the income. For the tax years of 2009 through 2012, according to court documents, Redding filed false and fraudulent U.S. personal income tax returns on behalf of himself and his spouse. He and his spouse did not file a personal income tax return for the 2013 calendar year. The total income tax due and owing from the defendant and his spouse to the United States for the tax years 2009 through 2013 was approximately $600,000.
Finally, from the beginning of the fourth quarter of the 2010 calendar year through the fourth quarter of the 2012 calendar year, Redding willfully failed to pay over all of the federal income tax and Federal Insurance Contributions Act (FICA) taxes withheld from JTR employees. Instead of paying over the taxes that he knew were due, he used those funds to pay JTR creditors and for the benefit of himself and his family members. In total, JTR did not pay over $873,054 that was due to the IRS.
This case was investigated by IRS-Criminal Investigation and the FBI’s Washington Field Office, with assistance from the Office of Labor Racketeering and Fraud Investigations, Office of Inspector General, of the U.S. Department of Labor. Assistance also was provided by Criminal Investigator Juan Juarez, Financial Analyst Bryan Snitselaar, and Paralegal Specialists C. Rosalind Pressley and Toni Donato, all of the U.S. Attorney’s Office for the District of Columbia. The case was prosecuted by Assistant U.S. Attorney Anthony Saler, of the U.S. Attorney’s Office for the District of Columbia. Assistance was provided by Trial Attorney Kenneth C. Vert, of the Department of Justice’s Tax Division.
Man Sentenced to 365 Months in Prison for Carjacking That Resulted in Murder in October of 2010Read the Press Release
SAN JUAN, Puerto Rico – Kenneth Ubiles-Rosario was sentenced to 365 months in prison for a carjacking that resulted in death, announced United States Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vélez. Ubiles-Rosario pleaded guilty on January 13, 2015 before U.S. Magistrate Judge Bruce McGiverin.
The indictment, filed on November 6, 2013, charged Ubiles-Rosario and a coconspirator with carjacking and possession of a firearm during the commission of a crime of violence. According to the statement of facts in the plea agreement, defendant Ubiles Rosario and his co-defendant met on October 21, 2010 and agreed to commit a robbery. The next day they intercepted the victim, Luis Anibal Torres-González, a local businessman, as he drove along his customary route. The defendants forced the victim to a stop and Ubiles exited his own car and forced the victim at gunpoint into the passenger seat. Ubiles and his co-defendant took the victim to a secluded spot by the side of a cliff near the Lago Dos Bocas in Arecibo, PR and forced the victim out of the car at gunpoint. Ubiles shot the victim once in the back of the head with a revolver and left the victim at the bottom of a cliff. Afterwards the defendants abandoned the victim’s car in an urbanization in Arecibo.
The case was investigated by FBI and the Puerto Rico Police Department and was prosecuted by Assistant US Attorney Nicholas Cannon.
Lower Brule Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Lower Brule, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on April 11, 2016, by U.S. District Judge Roberto A. Lange.
Glen Eagle Thunder, age 41, was sentenced to 21 months of custody, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund of $100.
Eagle Thunder was indicted by a federal grand jury on December 18, 2015. He pled guilty on February 9, 2016.
The conviction stems from Eagle Thunder failing to register as a sex offender between September 1, 2015, and November 10, 2015.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Eagle Thunder was immediately turned over to the custody of the U.S. Marshals Service.