Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
6 April 2016
Co-Owner of Company That Originated Millions in Fraudulent Mortgages Sentenced to 21 Months in PrisonRead the Press Release
NEWARK, N.J. - The co-owner of a mortgage company that was responsible for a long-running, large-scale mortgage fraud scheme that caused millions in losses was sentenced today to 21 months in prison, U.S. Attorney Paul J. Fishman announced.
Lester Soto, 59, of Freehold, New Jersey, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with two counts of conspiracy to commit bank fraud. Judge Salas imposed the sentence today in Newark federal.
According to the documents filed in this and other cases, as well as statements in court:
From September 2006 to May 2008, Soto and others, including fake document creators, a complicit lawyer and paralegal, and numerous loan officers, engaged in two related mortgage fraud conspiracies through a company called Premier Mortgage Services (Premier). Soto and his conspirators targeted properties in low-income areas of New Jersey. After recruiting “straw buyers,” Soto and his conspirators used a variety of fraudulent documents to make it appear as though the straw buyers possessed far more assets and income than they actually did.
Soto and his conspirators then submitted these fraudulent documents as part of mortgage loan applications to financial institutions. Relying on these fraudulent documents, financial institutions provided mortgage loans for the subject properties. Soto and his conspirators then split the proceeds from the mortgages among themselves and others by using fraudulent settlement statements (HUD-1s), which hid the true sources and destinations of the mortgage funds provided by financial institutions. The straw buyers had no means of paying the mortgages, and many of the properties entered into foreclosure proceedings.
Besides being a part-owner of Premier, Soto also acted as a loan officer on certain Premier mortgage loan applications and took a percentage of Premier’s profits. Soto employed document makers to create false and fraudulent documents and put mortgage brokers at Premier in contact with these document makers to create other false and fraudulent documents. Soto instructed Premier employees to provide him with loan files that Premier employees believed contained suspicious information, and then personally shepherded these loan files through to funding.
Other conspirators, including Isaac DePaula, 36, of Brazil, Adilson Silva, 50, of Union, New Jersey, and Klary Arcentales, 47 of Lyndhurst, New Jersey, were loan officers at Premier. DePaula, Silva, and Arcentales recruited straw buyers, provided false and fraudulent documents to the straw buyers, and incorporated false and fraudulent documents into loan applications to induce financial institutions to fund mortgage loans. The loan officers profited illegally by receiving a commission from Premier for each mortgage loan that they closed and also profited illegally by diverting portions of the fraudulently obtained mortgage proceeds for themselves, often via shell corporations or nominee bank accounts.
Rodrigo Costa, 35, of Brazil, created false and fraudulent documents, including Verifications of Deposit (VODs) and Verifications of Rent (VORs). Other defendants, including DePaula and Silva, then submitted Costa’s fraudulent documents to support the fraudulent mortgage loan applications of various straw buyers. For his participation, Costa received a portion of the illicit proceeds from the mortgages.
Michael Rumore, 57, of Toms River, New Jersey, was an attorney licensed in the State of New Jersey. Rumore served as the settlement agent on mortgage loans brokered by DePaula, Silva, and Soto for various subject properties. Rumore used his status as an attorney to further the fraudulent scheme, including by convening closings, receiving funds from lenders, and preparing HUD-1s that purported to reflect the sources and destinations of funds for mortgages on subject properties B when in fact, the HUD-1s were neither true nor accurate. Rumore disbursed mortgage loan proceeds directly to Premier, Soto, DePaula, and Silva, including amounts not reflected on the HUD-1s. Rumore received a fee for each fraudulent loan in which he participated.
Antonio Pimenta, 48, of Neshanic Station, New Jersey, owned and managed Kelmar Construction Co. (Kelmar). Kelmar built properties that were then sold to straw buyers utilizing fraudulent mortgage loans brokered by Arcentales.
In addition to the prison term, Judge Salas ordered Soto to serve five years of supervised release and pay restitution of $3,745,344.19.
Arcentales, one of the loan officers who provided fraudulent documents to financial institutions on behalf of straw buyers, was recently sentenced on March 28, 2016 to 18 months in prison. Linda Cohen, 58, of Orange, New Jersey, a paralegal who served as the settlement agent on mortgage loans brokered by Arcentales for various properties, was sentenced on March 30, 2016 to six months in prison.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, for the investigation leading to today’s sentence. Fishman also thanked the Social Security Administration-Office of Inspector General, under the direction of Special Agent in Charge Edward Ryan, for its participation in the investigation.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal and Zach Intrater of the U.S. Attorney’s Office Criminal Division.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov
Defense counsel: Jeff Smith Esq., of Teaneck, New Jersey
Chaves County Man Pleads Guilty to Federal Firearms Charge and Possessing Contraband in PrisonRead the Press Release
ALBUQUERQUE – Richard Gonzales, 30, of Dexter, N.M., pleaded guilty today in federal court in Las Cruces, N.M., to violating federal firearms laws and possession of contraband in prison.
Gonzales was arrested in Feb. 2016, on a criminal complaint charging him with being a felon in possession of a firearm and ammunition and possessing contraband in prison. According to the complaint, law enforcement officers found Gonzales, who is a convicted felon, in possession of a firearm and ammunition on Nov. 5, 2015, during a routine traffic stop. Thereafter, on Nov. 23, 2015, corrections officers at the Chaves County Detention Center recovered 14.6 grams of methamphetamine from Gonzales during a strip search after he returned to the detention center following his initial appearance in federal court in Roswell, N.M.
During today’s proceedings, Gonzales pled guilty to a felony information charging him with being a felon in possession of a firearm and possession of contraband in prison. In entering his guilty plea, Gonzales admitted that he unlawfully possessed a firearm on Nov. 5, 2015, in Chaves County, N.M. He acknowledged that he was prohibited from possessing firearms or ammunition as a result of his prior convictions for burglary, conspiracy to commit burglary and being a felon in possession of a firearm.
Gonzales also admitted possessing 14.6 grams of methamphetamine on Nov. 23, 2015, while he was incarcerated at the Chaves County Detention Center. Gonzales further admitted that he was on supervised release for a prior conviction at the time he committed the two crimes charged in the felony information.
At sentencing, Gonzales faces a maximum of 20 years in federal prison followed by up to three years of supervised release. Gonzales remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Chaves County Metro Narcotics Task Force and the Roswell Police Department. Assistant U.S. Attorney Alfred J. Perez of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
The HIDTA Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Buffalo Man Pleads Guilty to Selling Drugs That Were Smuggled into the Attica Correctional FacilityRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul, Jr. announced today that Jerome Tallington, 28, of Buffalo, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to narcotics conspiracy and possession with intent to distribute and distribution of heroin. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that the defendant sold heroin and marijuana to Elizabeth Camue Martinez. Between September 2013 and December 2013, Martinez then smuggled gram quantities of heroin and ounces of marijuana into the Attica Correctional Facility and provided it to her husband, Andres Martinez, who was at that time incarcerated in the facility, knowing that he would then distribute the heroin and marijuana to other inmates.
Elizabeth Camue Martinez and her husband Andres Martinez have also been convicted and are awaiting sentencing.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Office, the New York State Police, under the direction of Major Steven Nigrelli, the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major Wayne C. Olson, the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard, the Wyoming Country District Attorney’s Office, under the direction of Donald O’Geen, and the New York State Department of Corrections and Community Supervision, under the direction of Commissioner Anthony Annucci.Sentencing is scheduled for July 22, 2016 at 9:00 a.m. before Judge Vilardo.
Buffalo Man Charged with August 2015 Robbery of Bellevue BankRead the Press Release
PITTSBURGH - A resident of Buffalo, New York, has been indicted by a federal grand jury in Pittsburgh on a charge of bank robbery, United States Attorney David J. Hickton announced today.
The one-count indictment named Casey Swain, 37, as the sole defendant.
According to the indictment presented to the court, on or about Aug. 7, 2015, Swain stole $4,970 from the First Niagara Bank located at 484 Lincoln Avenue, Bellevue, Pennsylvania.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Ryan K. Hart is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and Bellevue Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Bossier City resident sentenced to 15 years in prison for receiving child pornographyRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Bossier City man was sentenced Monday to 180 months in prison for receiving child pornography.
Christopher J. Leger, 53, of Bossier City, La., was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of receiving child pornography. He was also sentenced to 10 years of supervised release and must register as a sex offender. According to the November 18, 2015 guilty plea, federal agents executed a search warrant March 13, 2014 on Leger’s residence. Child pornography had previously been downloaded from a computer at the address. After examining media devices from the residence, agents found 76 images and two videos of child pornography.
“The internet is not a safe haven for those downloading and sharing images of abused children,” Finley stated. “These materials are illegal and perpetuate the extreme abuse of children. This prison sentence shows that abusers will be vigorously prosecuted.”
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) also encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
Homeland Security Investigations and Louisiana Internet Crimes Against Children Task Force conducted the investigation. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.
Blankenship sentenced to a year in Federal prisonRead the Press Release
CHARLESTON, W.Va. – Acting United States Attorney Carol Casto announced that former Massey Energy Chief Executive Officer Don Blankenship was sentenced today to a year in federal prison and ordered to pay a $250,000 fine. Blankenship was sentenced for conspiracy to willfully violate mine health and safety standards after a jury returned a guilty verdict on the federal crime.
“This sentence is a victory for workers and workplace safety. It lets companies and their executives know that you can’t take chances with the lives of coal miners and get away with it,” stated Acting United States Attorney Carol Casto. “Putting the former chief executive officer of a major corporation in prison sends a message that violating mine safety laws is a serious crime, and those who break those laws will be held accountable.”
Over the course of the trial, in which jury selection began on October 1, 2015, and the jury returned a guilty verdict on December 3, 2015, the jury heard evidence from 27 witnesses called by the United States. Many of these witnesses were coal miners who worked at the Upper Big Branch (UBB) mine prior to the 2010 explosion, and they testified in detail from their firsthand knowledge of the unsafe working conditions at UBB, violations of U.S. Mine Safety and Health Administration (MSHA) regulations, and organized efforts to obstruct and interfere with MSHA inspectors. The jury heard from Bill Ross, former Manager of Technical Services at Massey, who testified that he warned Blankenship about the company’s practice of rampant violations, and told the defendant prior to the UBB explosion that Massey’s standard tactic of ignoring or defrauding MSHA could not be sustained without the possibility of a serious accident that could have fatalities. The evidence also showed that Blankenship received daily updates on safety violations and helped perpetuate them.
“Putting profits over the safety of workers is reprehensible. The jury acknowledged that with the guilty verdict, and the sentence imposed today recognizes that disregarding safety laws has real consequences,” said Casto. “From the beginning, the objective of this investigation and this prosecution was to not only show that those who violate safety laws will be held responsible, but also to deter these violations in the future to make everyone’s workplace safer.”
“Today’s sentence marks the culmination of a comprehensive, joint investigation that took over five years to complete and resulted in five criminal convictions.” said Special Agent in Charge Scott S. Smith of the FBI’s Pittsburgh Field Office. “Along with dedicated prosecutors in the U.S. Attorney’s Office and investigators in United States Department of Labor’s Office of Inspector General, the FBI is committed to holding those who commit crimes by enabling safety violations and who place profits above the value of human life accountable.”
"Donald Blankenship's trial and conviction came after an explosion that killed 29 miners at the Upper Big Branch mine. His sentencing today reaffirms the responsibility of company executives to ensure they adhere to health and safety standards. The Department of Labor's Office of Inspector General will continue to work with the Mine Safety and Health Administration and our law enforcement partners to investigate criminal worker safety violations that pose a threat to American workers," said John Spratley, Special Agent in Charge of the Philadelphia Regional Office, U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
The prosecution was the result of a comprehensive investigation that, including Blankenship, resulted in five criminal convictions. In addition to the convictions of individuals, the outcome of the investigation also included a resolution of over $200 million with Alpha Natural Resources after it acquired Massey. This agreement established a foundation dedicated to mine safety and health research, the first of its kind, and set aside nearly $50 million in funding for the foundation. That funding has provided the resources for some of the best and brightest minds in the country to pursue research that will make mines safer all over the world.
This matter was investigated by the Federal Bureau of Investigation and the United States Department of Labor’s Office of Inspector General. Assistant United States Attorneys Steven R. Ruby, Gregory McVey, and Gabriele Wohl, as well as former United States Attorney Booth Goodwin, handled the prosecution and tried the case before a federal jury.
The prosecution is part of a sustained effort by the United States Attorney’s Office for the Southern District of West Virginia to protect the health and safety of West Virginia workers by vigorously prosecuting workplace safety crimes and holding accountable those responsible for dangerous working conditions.
-
Follow us on Twitter: SDWVNews
-
Bergen County, New Jersey, Man Admits Embezzling Millions of Dollars from North Jersey BusinessRead the Press Release
TRENTON, N.J. – The former chief financial officer of a Bergen County business today admitted to embezzling millions of dollars from the company and to evading taxes, U.S. Attorney Paul J. Fishman announced.
Gomidas Garabed Hartounian, 52, of Franklin Lakes, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to a superseding information charging him with one count of wire fraud and one count of tax evasion.
According to documents filed in this case and statements made in court:
From April 2007 through April 2014, Hartounian was the CFO for “Company A,” a for-profit company with its principal place of business in Englewood, New Jersey. Hartounian is also the sole owner of MGB LLC, a company registered to his residence. Hartounian fraudulently designated MGB as a vendor in Company A’s accounting system without disclosing that he controlled MGB. He directed Company A employees to issue checks to MGB for freight services that MGB supposedly provided Company A. When asked for the MGB invoices, he claimed that he was maintaining them in his office.
Because Hartounian didn’t have sole signatory power, he forged the signatures of the chief executive officer or the chief operating officer before depositing the checks into bank accounts that he controlled. Hartounian also had checks issued directly from Company A bank accounts to pay for his personal expenses, including real estate taxes to the Borough of Franklin Lakes for $6,562 in August 2011.
Hartounian also admitted that he filed a false federal tax return, Form 1040, for the calendar year 2012 in which he knowingly did not report $1.29 million in income that he received as the sole owner of MGB. Instead, Hartounian falsely understated his income for 2012 as $133,290.
The wire fraud count carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss resulting from the crime. The tax evasion count carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss resulting from the crime. Sentencing is scheduled for Aug. 16, 2016.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Shana W. Chen of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
Defense counsel: Alan Silber Esq., Roseland, New Jersey
Baltimore Serial Robber Sentenced to Six Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Robert William Sykes, Jr., age 27, of Baltimore, Maryland, today to six years in prison followed by three years of supervised release for two armed commercial robberies. At today’s sentencing hearing Judge Garbis found that Sykes also committed at least one, and up to eight, additional armed robberies.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Baltimore Police Commissioner Kevin Davis; and Baltimore City State’s Attorney Marilyn Mosby.
According to the information presented at today’s sentencing hearing, Sykes admitted that on November 30, 2014, he robbed a discount store located in the 5100 block of Liberty Heights Avenue in Baltimore. Sykes, wearing a red and white hoodie jacket, entered the store and demanded money from the cashier, threatening to shoot if the teller did not comply with his demands. The cashier gave Sykes approximately $97, and Sykes fled through the front doors. A customer who was in the store followed Sykes and took a picture of him as he got into the driver’s side door of a Cadillac. That car was subsequently determined to be registered to Sykes.
Sykes also admitted that on December 2, 2014, he robbed an auto parts store located in the 2000 block of Maryland Avenue in Baltimore. Sykes entered the store holding a handgun in his left hand. He demanded that the two employees who were standing at the cash registers give him money. When the employees told him that they were unable to open the registers without a key, Sykes fled the store. Several hours later, two Baltimore City Police officers on patrol in the Western District recognized Sykes’ Cadillac as being the car used to flee the November 30th robbery. Police stopped the car and detained Sykes, who was the driver and sole occupant. During the course of the investigation, which included an interview with Sykes and the execution of a search warrant on his car, police learned that Sykes is left handed, and they recovered a red and white hoodie jacket, matching the jacket worn in several robberies, and a black BB gun, believed to have been used to facilitate the robberies.
During the sentencing hearing, the government presented evidence of Sykes’ participation in five other robberies. For example, according to the government’s evidence, on October 20, 2014, and November 1, 2014, Sykes robbed a convenience store located in the 700 block of Washington Boulevard in Baltimore, each time wearing the red and white hoodie jacket. In each robbery Sykes displayed the gun to the store employees and ordered the employees to give him the money in the cash registers. After the employees gave Sykes the money from their registers, Sykes ordered the employees to lay on the floor. Sykes then left the store.
The government also presented evidence that on November 3, 2014, Sykes also robbed a convenience store, in the 3600 block of Potee Street. Also on November 3rd Sykes attempted to rob a convenience store in the 200 block of West Coldspring Avenue and on November 5, 2014, attempted to rob a discount store in the 5300 block of York Road.
After hearing the government’s evidence, Judge Garbis ruled that Sykes committed at least one and up to eight robberies in addition to the two robberies to which he pleaded guilty.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Piper F. McKeithen, a cross-designated Baltimore Assistant State’s Attorney assigned to Exile cases, who prosecuted the case.
Atlantic County, New Jersey, Tax Preparer Sentenced to Two Years in Prison for Tax FraudRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, tax preparer was sentenced today to 24 months in prison for including fraudulent credits and deductions on federal tax returns for his clients in an effort to gain repeat business, U.S. Attorney Paul J. Fishman announced.
Tinh Van Vo, 50, of Egg Harbor Township, New Jersey, was previously convicted of 10 counts of aiding and assisting in the preparation of false federal income tax returns following a two-week trial before U.S. District Judge Robert B. Kugler, who imposed the sentence today in Camden federal court.
According to documents filed in this case and the evidence at trial:
Vo prepared and filed fraudulent U.S. Individual Income Tax Returns through his business, TVO Services in Atlantic City, New Jersey. The returns attached schedules for fictitious educational credits, charitable contributions, and job expenses the taxpayers were not entitled to take – all to generate fraudulently inflated refunds.
In addition to the prison term, Judge Kugler sentenced Vo to one year of supervised release. During that time, Vo is prohibited from employment that allows him to prepare or assist in the preparation of tax returns. Vo must also pay a $15,000 fine.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Jacqueline M. Carle of the Criminal Division in Camden, New Jersey.
Defense counsel: William J. Hughes Jr. Esq., Atlantic City, New Jersey
Alien Pleads Guilty to Unlawfully Possessing FirearmsRead the Press Release
TULSA, Okla.—Mauricio Arevalo-Magana, 25, pleaded guilty in federal court to the charge of Alien Unlawfully in the United States in Possession of Firearms, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma. United States District Court Chief Judge Gregory K. Frizzell will sentence Arevalo-Magana on July 12, 2016.
In the summer of 2015, Arevalo-Magana, an alien illegally in the United States, exchanged drugs for firearms in Tulsa. Those firearms, which included semi-automatic rifles, had been stolen during a burglary of a home in Ponca City by another individual. Agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) arrested that individual and were able to recover approximately 43 stolen firearms. ATF agents then became aware of the Arevalo-Magana’s unlawful exchange.
At the time, ATF only knew Arevalo-Magana by his alias, “Wicho.” With the assistance of the Tulsa Police Department, ATF agents were able to discover Arevalo-Magana’s true name and apprehend him. Arevalo-Magana faces a statutory maximum sentence of 10 years in prison and a $250,000 fine.
This case was investigated by ATF. Assistant United States Attorney Neal C. Hong prosecuted the case.
###
5 April 2016
Wheeling woman pleads guilty to cocaine traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Jessica Carrie Estep, 30, of Wheeling, pled guilty to cocaine trafficking today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
In late 2015, Estep conspired with other individuals to possess and sell cocaine in Ohio County, West Virginia. She pled guilty today to one count of “Conspiracy to Distribute Cocaine Base.” She faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Randy Bernard prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.U.S. Magistrate Judge James E. Seibert presided.
Virginia man pleads guilty to unlawful possession of firearmsRead the Press Release
MARTINSBURG, WEST VIRGINIA – Evan Megeath, 33, of Strasburg, Virginia, pled guilty in federal court today to unlawful possession of firearms, United States Attorney William J. Ihlenfeld, II, announced.Megeath, who has multiple previous felony convictions in state court in Virginia, was discovered in unlawful possession of a .22 caliber rifle in July 2015 in Jefferson County, West Virginia. Megeath was previously convicted of “Breaking and Entering,” “Grand Larceny,” “False Pretenses,” “Bad Check,” and “Possession of a Schedule II Controlled Substance” in the Circuit Court of Warren County, Virginia.
Megeath pled guilty today to one count of “Felon in Possession of a Firearm.” 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. Attorneys Paul Camilletti and Anna Krasinski prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.U.S. Magistrate Judge Robert W. Trumble presided.
U.S. Attorney’s office co-sponsors Indianapolis job and resource fairRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler today announced a community-wide job and resource fair for formerly incarcerated individuals hosted by the U.S. Attorney’s Office for the Southern District of Indiana and Indiana University McKinney School of Law. The event will occur this Friday, April 8, 2016.
“Reintegrating individuals into our community from federal and state prisons is a responsibility I am passionate about,” said Minkler. “For me, this is a public safety issue. Gainfully employed re-entrants are much less likely to commit crimes. I hope our community shares my commitment to assist these individuals in becoming contributing citizens.”
What: JOB FAIR
When: April 8, 2016, 11:00am-3:00pm
Where: Julia Carson Center, 300 East Fall Creek Parkway, North Drive
As part of the U.S. Attorney’s Office Smart on Crime Initiative, Minkler’s office is collaborating with Indiana University McKinney School of Law and the City of Indianapolis to host this community-wide event. Some of the employers participating in the job fair include Eskenazi Health, Mays Chemical Company, Goodwill, Barber Construction, All Building Trades, Associated Builders and Contractors, Golden Corral, Labor Union – Local #20, Professional Building Maintenance, Sheet Metal Workers #20, Chipotle, Jiffy Lube and other construction and union organization, all of which desire to fill a range of positions. The goal of the job fair is to help re-entrants meet with many local employers from a wide range of industries.
Members of the McKinney Law School community will be managing the resource fair with assistance from the Indiana Christian Legal Clinic and the Marion County Prosecutor’s Office. The job and resource fair will provide information regarding child support matters and criminal record expungement. In addition, the event will provide free assistance with resume writing, interview skills and mock job interviews. Moreover, Indiana Department of Workforce Development, PACE/OAR and Keys to Work will offer assistance with application etiquette, dress for success, and job readiness.
Re-entrants face many barriers upon release from incarceration. The purpose of the community-wide job and resource fair is to provide them with the opportunity to connect with useful re-entry and community agencies that will help provide referrals and resources to enhance their employment opportunities.
U.S. Attorney Minkler thanks all of our partners and the community for their continued support of this initiative.
U.S. Attorney Announces Return to Mongolia of Looted Dinosaur FossilsRead the Press Release
This afternoon, Robert L. Capers, United States Attorney for the Eastern District of New York, will host a repatriation ceremony at which the United States will return to Mongolia the fossilized remains of six species of dinosaur. The fossils were unlawfully removed from Mongolia and seized by U.S. Immigration and Customs Enforcement (ICE) agents in New York and Utah.
The largest of these fossils, an Alioramus skull, was forfeited to the United States as a result of a civil forfeiture action handled by the U.S. Attorney’s Office. The other fossils being returned at today’s ceremony were administratively forfeited by ICE and U.S. Customs and Border Protection (CBP). HSI Executive Associate Director of Homeland Security Investigations (HSI) Peter T. Edge and Mongolia’s Ambassador to the United States Altangerel Bulgaa will sign the ceremonial certificates transferring ownership of the fossils from the United States to Mongolia. Mongolian paleontologist Dr. Bolortsetseg Minjin, and Director of the Institute for the Study of Mongolian Dinosaurs, will participate in the ceremony as a representative of the Mongolian Ministry of Education, Culture and Sciences.
“Mongolia is home to the world’s largest reserve of dinosaur fossils with many discoveries waiting to be made,” stated U.S. Attorney Capers. “We are proud of our role in restoring this rich paleontological heritage to the Mongolian people and taking these cultural treasures from the hands of looters and smugglers. We stand beside the people of Mongolia by disrupting the international trade in smuggled fossils and returning them to their home where they will be studied and treasured.”
“Today’s ceremony is an excellent demonstration of the cooperation between HSI, our colleagues at the Department of Justice, and our foreign counterparts with the Government of Mongolia,” stated HSI Executive Associate Director Edge. “A successful repatriation requires extensive cooperation among all parties involved, which is rewarded by the knowledge that we’ve returned what rightfully belongs to the people of Mongolia.”
“CBP is extremely proud to have played an important role in returning these valuable national treasures to the people of Mongolia,” said Robert E. Perez, Director of CBP’s New York Field Operations. “CBP’s cooperation with HSI and the United States Attorney’s Office for Eastern District of New York demonstrates the continuing resolve of law enforcement in the United States to address illegal trafficking in stolen artifacts.”
“Three years ago, we celebrated our first repatriation ceremony of the skeleton of a Tarbosaur-Bataar. The T-Bataar case was a unique one in many aspects. Most importantly, it has laid foundation of further strong and fruitful cooperation between our two governments in the fight against illegal trade of cultural heritages including fossils. Thanks to this fruitful cooperation, 23 dinosaur fossils were repatriated to Mongolia during the last three years and now we are witnessing a repatriation of seven fossils including an Alioramus skull,” stated Ambassador Altangerel. “I take this opportunity, on behalf of the Government and people of Mongolia, to express our profound gratitude for the hard work and dedication of American law enforcement agencies. I have no doubt that these efforts will further strengthen of our bilateral ties, opening new opportunities and giving new impetus to our future cooperation.”
The Mongolian dinosaur fossils being returned at today’s repatriation ceremony include:
- Alioramus skull
- Bactrosaurus skeleton
- Protoceratops baby skeleton pieces
- Troodontid egg bed
- Psittacosaurus skeleton and skull
- Hadrosaurus skeleton pieces
The Alioramus was a dinosaur that lived in the late Cretaceous period, approximately 65 to 70 million years ago. It is related to the Tyrannosaurus and Tarbosaurus. The Alioramus skull was seized by CBP after being shipped from France with false declarations which suggested that it was an inexpensive replica, not a genuine fossil. When the shipper petitioned for the Alioramus skull’s release, it conceded that it was a genuine Mongolian fossil but submitted forged Mongolian export documents. Mongolian patrimony laws prohibit the export and foreign ownership of dinosaur fossils.
According to Dr. Bolortsetseg Minjin, the Alioramus is an extremely rare dinosaur; only two specimens have been reported in the scientific literature, and both are from Mongolia. The Alioramus fossil being returned today is the most complete skull discovered to date. Its relative completeness, color and overall state of preservation are typical of the Nemegt Formation, which is only exposed in the Gobi Desert of Mongolia. In 2014, Mongolia nominated the Nemegt Formation and other fossil sites in the Gobi Desert for inclusion in the World Heritage List, citing the sites’ distinction as the largest dinosaur fossil reservoir in the world.
The government’s civil forfeiture action against the Alioramus skull was handled by Assistant United States Attorney Karin Orenstein.
E.D.N.Y. Docket No. 14-CV-5198 (BMC)
Two Former Senior Executives of Global Financial Services Company Charged in Scheme to Defraud Clients through Secret Trading Commissions on Billions of Dollars in Securities TradesRead the Press Release
Two former high-ranking executives of a Boston-based financial services company that is one of the world’s largest asset managers and custody banks were charged in an indictment that was unsealed today with a scheme to defraud at least six of the bank’s clients through secret commissions applied to billions of dollars of securities trades.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Carmen M. Ortiz of the District of Massachusetts and Special Agent in Charge Harold H. Shaw of the FBI’s Boston Division made the announcement.
Ross McLellan, 44, of Hingham, Massachusetts, and Edward Pennings, 45, were charged in a five-count indictment with conspiring to commit securities fraud and wire fraud, as well as two counts each of securities fraud and wire fraud. McLellan, a former executive vice president of the bank who served as president of its U.S. broker-dealer unit, was arrested this morning in Hingham and will appear in U.S. District Court in Boston later today.
“The defendants are charged with reaping millions of dollars of illicit profits by abusing their clients’ trust and secretly setting their own inflated compensation,” said Assistant Attorney General Caldwell. “The charges announced today reflect our continued commitment to hold individuals accountable for toying with the integrity of our financial system.”
“The secret conversations and backroom plotting laid bare in today’s charges paint a vivid picture of a brazen fraud,” said U.S. Attorney Ortiz. “The defendants never thought anyone would hear those conversations – conversations in which they plotted to overcharge their clients by millions of dollars, and to hide their tracks. With each trade, they chipped away at the savings of thousands of retirees whose pensions they were charged with safeguarding. Bankers who abuse their clients’ trust in this way must be held accountable. And we will work hard to ensure that they are.”
“As alleged, Ross McLellan and Edward Pennings cheated and lied to investors so that the bank could line its pockets,” said Special Agent in Charge Shaw. “Actions like theirs undermine investor confidence. This case demonstrates the FBI's commitment to unraveling elaborate and complex schemes, motivated by sheer greed, that ultimately undermine our financial markets.”
The indictment alleges that, between February 2010 and September 2011, McLellan and Pennings, together with others, conspired to add secret commissions to fixed income and equity trades performed for at least six clients of the bank’s “transition management” business, which helps institutional clients move their investments between and among asset managers or liquidate large investment portfolios. The commissions were charged on top of fees the clients had agreed to pay the bank, and despite written instructions to the bank’s traders that generally reflected that the clients were not to be charged trading commissions, the indictment alleges. McLellan and Pennings then allegedly took steps to hide the commissions from the clients and others within the bank, including compliance staff.
The government’s ongoing investigation is being conducted by the FBI’s Boston Division. The case is being prosecuted by Trial Attorney Aisling O’Shea of the Criminal Division’s Fraud Section and Assistant U.S. Attorney and Deputy Chief of Economic Crimes Stephen E. Frank of the District of Massachusetts. The Fraud Section and the U.S. Attorney’s Office of the District of Massachusetts have also received valuable assistance from the U.S. Securities and Exchange Commission as well as from authorities in the United Kingdom, including the City of London Police. The Criminal Division’s Office of International Affairs also provided assistance.
Two Durable Medical Equipment Company Owners Charged in Similar Health Care Fraud SchemesRead the Press Release
McALLEN, Texas ‐ Federal charges have been filed against two individuals in separate cases for defrauding Texas Medicaid and/or Medicare in two separate schemes to defraud through false billings, announced U.S. Attorney Kenneth Magidson.
Manuel Gomez, Jr., 34, of Katy, owned two Rio Grande Valley area durable medical equipment (DME) companies, while Elva Santos, 36, of McAllen, owned Hope & Miracle DME in Mission.
A sealed indictment against Gomez was returned March 29, 2015, and unsealed today upon his arrest. He is expected to make an initial appearance in Houston before U.S. Magistrate Judge Stephen Smith at 10.00 a.m. tomorrow. Santos was charged in an unsealed information and is set for her appearance April 8, 2016, at 10:30 a.m. before U.S. Magistrate Judge Peter Ormsby.
Both are charged separately in difference cases but in similar schemes to defraud and sent false and fraudulent claims regarding DME, specifically incontinence supplies and diabetic supplies.
In his case, Gomez and/or his co-conspirators sent such claims totaling approximately $2,347,841.71 to Texas Medicaid, on which Texas Medicaid allegedly paid out $2,088,473.67, according to the indictment. Santos allegedly submitted false and fraudulent claims for $713,759.73 on which Texas Medicaid paid out $581,743.39. To conceal their schemes, both forged and/or caused others to forge the signatures of physicians on the required DME prescription forms also known as Title XIX forms.
Gomez owned Illusion Medical Equipment and Illusion Medical Equipment II LLC and is charged with one count of conspiracy to commit health care fraud, six counts of health care fraud and one count of aggravated identity theft.
The indictment alleges that Gomez conducted his scheme from Dec. 1, 2007, to Nov. 30, 2011. Gomez and his co-conspirators were allegedly responsible for the submission of false and fraudulent billings and the misuse of the identifying information of Texas Medicaid recipients. Gomez also allegedly paid illegal kickbacks in exchange for patient information, including patient Texas Medicaid numbers. He and/or his co-conspirators would then use the fraudulently obtained Texas Medicaid numbers to submit claims to Texas Medicaid in order to receive reimbursements.
In the separate, yet similar case against Santos, from Jan. 20, 2011, to May 10, 2013, she allegedly submitted the false and fraudulent claims. In one instance alleged in the information, Santos submitted or caused others to submit false or fraudulent claims with Medicare for a patient who was deceased on dates that Santos claimed to have provided diabetic supplies to the patient. The delivery tickets maintained by Hope & Miracle DME contained forged signatures of the deceased beneficiary after the date of her death.
Health care fraud carries a maximum punishment of 10 years in federal prison without parole and a $250,000 fine upon conviction. If convicted of the identity theft, Gomez also faces a mandatory 24 months which must be served consecutively to any other prison term imposed. The Texas Attorney General’s Medicaid Fraud Control Unit and the U.S. Department of Health and Human Services‐Office of Inspector General conducted the investigation. Assistant U.S. Attorney Michael Day is prosecuting the cases.
An indictment or information are accusations of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Twice Convicted Alien Smuggler Heads to PrisonRead the Press Release
LAREDO, Texas – A naturalized U.S. citizen from Cuba who had been residing in Louisville, Kentucky, has been ordered to federal prison following his convictions in two separate cases involving the smuggling of illegal aliens, announced U.S. Attorney Kenneth Magidson.
Yudelvis Alberto Jimenez-Elvirez, 29, entered a guilty plea Oct. 7, 2015, to smuggling illegal aliens and was released on bond. That same evening, he was arrested again on similar charges. He went to trial in that case and was convicted Dec. 16, 2015, after only 15 minutes of deliberation.
Today, U.S. District Judge Marina Garcia Marmolejo, who presided over the trial, handed Jimenez-Elvirez a total 97-month sentence to run concurrently on both cases.
Also sentenced today was Ricardo Gallo, 31, a U.S. permanent resident alien also from Cuba, who had pleaded guilty in the conspiracy involving the October 2015 smuggling attempt. He will serve 41 months in prison and must pay a $5000 fine.
At trial, Border Patrol agents testified about a semi-tractor and trailer being followed by a Chevrolet Tahoe that arrived at the Freer Border Patrol immigration checkpoint on the night of Oct. 7, 2015. Both vehicles displayed Florida license plates. Immediately after the 18-wheeler driver – Gallo - had been cleared to proceed, law enforcement learned that trailer had been detained on June 30, 2015, and used in an unsuccessful attempt to smuggle 17 Mexican and Guatemalan nationals illegally in the United States.
Agents pursued the 18-wheeler, but were unable to make contact with its driver because Jimenez, driving the Tahoe, blocked the agents’ official vehicle. Both vehicles were traveling at 80-85 miles per hour. Agents were eventually able to stop both vehicles and discovered 27 aliens sitting atop cargo of crushed aluminum cans in the trailer.
Five of the 27 aliens testified at trial, reporting that they or family members had made financial arrangements with smugglers in Mexico to smuggle them into country and to deliver them to various destinations within the United States. They testified about swimming or wading the Rio Grande River and entering Laredo illegally without inspection, later being taken to a warehouse in Laredo to wait for the trailer that would smuggle them further.
Jimenez and Gallo will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges were the result of an investigation conducted by Border Patrol and Homeland Security investigations. Assistant U.S. Attorney (AUSA) Jose Homero Ramirez prosecuted the cases. AUSA Shawn Coker handled the sentencing hearing today.
Traveling minister convicted on all counts for his role in a $4.8 million tax refund scamRead the Press Release
A jury convicted a traveling minister from Arkansas on all 14 counts for his role in a $4.8 million tax refund scam, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Allen D. Miles, 58, of Little Rock, Arkansas, is scheduled to be sentenced June 13. He was convicted of one count of conspiracy to commit wire fraud, 10 counts of wire fraud and three counts of aggravated identity theft.
Miles, acting with Zinara Highsmith, engaged in a false tax refund scheme in which approximately 2,750 false income tax returns were filed, claiming false income tax refunds of approximately $4.8 million.
Miles obtained personal identification information from congregants and others by telling them that he could help them obtain money from an alleged government stimulus fund program. Miles did not tell congregants that income tax returns were going to be filed on their behalf. After he obtained the information, Miles forwarded it to Highsmith, and then Highsmith and others created the false income tax returns that generated refunds based on certain credits for which the taxpayers did not qualify, like the American Opportunity Credit, Making Work Pay Credit, and Earned Income Credit, according to trial testimony and court documents.
For each refund, Miles collected a $125 commission and Highsmith received $275; the taxpayers received the balance. Miles received approximately $300,000 for his efforts in the refund scam, which operated between March and July 2011, according to trial testiony and court records.
"This defendant traveled the country defrauding people and the goverment," Rendon said. "He took advantage of their religious faith and their faith in the government to enrich himself."
"Misusing his position of trust as a minister, Mr. Miles perpetuated an elaborate scheme driven by insatiable greed and a blatant disregard for the tremendous damage inflicted on innocent victims. The jurors have spoken and Mr. Miles is being held accountable for his criminal actions," Enstrom said. "Individuals who commit refund fraud and identity theft of this magnitude and with this degree of trickery, dishonesty and deceit, deserve to be punished to the fullest extent of the law. IRS Criminal Investigation, along with the United States Attorney's Office, remain vigilant in identifying, investigating and prosecuting those individuals who seek to willfully defraud the United States Treasury and blatantly disregard the victims of their schemes."
Highsmith has pleaded guilty to her role in the conspiracy and is scheduled to be sentenced later this year.
This case is being prosecuted by Assistant U.S. Attorneys Michael L. Collyer and Carmen Henderson, following an investigation by the Internal Revenue Service – Criminal Investigations.
Three Brockton Men Charged with Distributing FentanylRead the Press Release
BOSTON – Three men, two of whom were arrested this morning, were charged in U.S. District Court in Boston for trafficking fentanyl in the Brockton area. The third defendant was already in state custody. In addition, 36 grams of fentanyl and a firearm were recovered following the execution of a federal search warrant.
Luis DaCosta, 21, aka “Jesse” and “Slu;” Gilvan Monteiro, 25, aka “G;” and Edson Gomes, 19, aka “E” and “Evil,” were charged in a complaint with one count of conspiracy to possess fentanyl with intent to distribute. DaCosta and Gomes were arrested today. Monteiro was already in state custody on unrelated matters. DaCosta and Gomes were detained pending a detention hearing scheduled for April 15, 2016.
As alleged in the complaint, from December 2015 to March 2016, the defendants sold fentanyl on numerous occasions in the Brockton area, and several times the drug was seized by law enforcement from the defendants’ associates. In addition, on Feb. 11, 2016, law enforcement seized a loaded Smith and Wesson .40 caliber handgun from an associate of Gomes’s during a vehicle stop.
Documents filed in court today also allege that the defendants have violent histories and gang associations. Monteiro has a lengthy criminal record which includes narcotics and firearms offenses and assault and battery with a dangerous weapon. According to the affidavit, law enforcement seized fentanyl from Monteiro’s customers on numerous occasions. Gomes, who also has a violent criminal history, is alleged to have engaged in gang-related shootings and a car chase with police as recently as December 2015. According to the affidavit, DaCosta was recently released on bail after he allegedly shot a person in Rhode Island on March 19, 2016. DaCosta also allegedly sold fentanyl to a person that overdosed in February 2016.
Gomes was arrested without incident in Brockton. DaCosta was arrested at the Roadway Inn on Belmont Street, also in Brockton. During the execution of a federal search warrant at the Roadway Inn, officers recovered a firearm, approximately 36 grams of suspected fentanyl and related drug paraphernalia. A woman also present in the Roadway Inn was arrested on state firearms and drug charges.
This case was brought as part of the federal response to the growing opioid abuse epidemic in Massachusetts and other New England states. A recent surge in overdose deaths has been attributed in part to the addition of Fentanyl to heroin. Fentanyl is a powerful synthetic opiate that is 50 to 100 times more potent than morphine and, when added to heroin, creates a toxic mixture substantially more potent, and more dangerous, than heroin alone.
The charging statute provides a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Plymouth County District Attorney Timothy Cruz; and Brockton Police Chief John Crowley, made the announcement today. The case was investigated by the Massachusetts State Police assigned to the Plymouth Country District Attorney’s Office, MSP CAT Team, MSP Gang Unit, the New England High Intensity Drug Trafficking Area (HIDTA), and Brockton Police Department. The case is being prosecuted by Assistant U.S. Attorney Glenn A. MacKinlay of Ortiz’s Organized Crime and Gang Unit.
The details contained in the complaints are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Stockton Man Charged with Sex Trafficking a MinorRead the Press Release
SACRAMENTO, Calif. — Ricky Lee Richardson Jr., 39, of Stockton, was arrested on Monday, April 4, 2016, charged with sex trafficking of a minor and possession of child pornography, United States Attorney Benjamin B. Wagner announced.
A two-count indictment, unsealed after his arrest, was returned by a federal grand jury in Sacramento on March 31, 2016. According to court documents, between November 2011 and March 2012, Richardson transported, harbored, and maintained a minor victim, knowing that the minor would be caused to engage in prostitution. Richardson also possessed images of child pornography.
This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the Stockton Police Department. Assistant United States Attorney Brian A. Fogerty is prosecuting the case.
Richardson is scheduled to be arraigned today before United States Magistrate Judge Carolyn Delaney.
If convicted of sex trafficking of a minor, Richardson faces a minimum of 10 years in prison and a maximum statutory penalty of life in prison. The possession of child pornography charge carries a maximum statutory penalty of 10 years in prison. Both charges carry a maximum fine of $250,000. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
Scranton Man Pleads Guilty to Federal Heroin Trafficking OffenseRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Scranton man pleaded guilty today to a federal heroin distribution conspiracy charge before Senior United States District Court Judge A. Richard Caputo in Wilkes-Barre.
According to United States Attorney Peter Smith, Camilo Andujar, aka “Melo,” age 24, was indicted by a grand jury in October 2015 and pleaded guilty pursuant to a plea agreement filed by the government.
The charges stemmed from an investigation in which police made a purchase of heroin from Andujar and then obtained a search warrant for a residence located on Electric Street in Scranton, where Andujar lived. Police seized approximately 91 grams of heroin, equivalent to more than 3,100 individual retail bags of heroin. Police also seized a coffee bean grinder filled with heroin, $5,950 in cash, heroin packaging materials and drug paraphernalia.
The investigation was conducted by the Scranton Police Department, Special Investigations Division, Lackawanna County District Attorney’s Office and the Drug Enforcement Administration (DEA). The case is being prosecuted by Assistant United States Attorney Robert J. O’Hara.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
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 up to forty years in prison, a term of supervised release following imprisonment, and a 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.
# # #
San Gabriel Valley Man Sentenced to Federal Prison in Stolen Identity Tax Refund Scheme which Fraudulently Sought $2.6 MillionRead the Press Release
LOS ANGELES – A Hacienda Heights man already serving a 27-month prison term for fraudulently seeking tax refunds has been sentenced in a second case to an additional two years in federal prison for his role in another scheme that used stolen identities to seek more than $2.6 million in false tax returns from the Internal Revenue Service.
Adel Cotton, 63, was sentenced to 51 months in federal prison by United States District Court Judge Michael W. Fitzgerald, who ordered that 27 months be served concurrently with the prior case.
In addition to the prison term, Judge Fitzgerald ordered Adel Cotton to pay $725,294 in restitution to the IRS.
Adel Cotton pleaded guilty in January to one count of conspiracy to defraud the United States by obtaining the payment of false claims, namely tax refunds.
Adel Cotton’s son and co-defendant – Heber Cotton, 39, of Los Angeles – pleaded guilty in November to one count of conspiracy to defraud the United States. Heber Cotton is scheduled to be sentenced by Judge Fitzgerald on June 6, at which time he will face a statutory maximum sentence of 10 years in federal prison.
According to Adel Cotton’s plea agreement, beginning in December 2008 and continuing through March 2010, the Cottons caused at least 275 fraudulent income tax returns to be filed with the IRS. Those fraudulent returns sought income tax refunds totaling more than $2.6 million.
As part of the scheme, Adel Cotton obtained names and Social Security numbers of individuals without their knowledge and consent. Adel Cotton, with the help of others, prepared false Forms W-2 (IRS Wage and Tax Statements) in the names of the identity theft victims that reported false employment and income information, as well as false tax withholding amounts. Using the falsified information reported on the Forms W-2, Adel Cotton and others prepared fraudulent individual income tax returns claiming false tax refunds. The tax returns were filed without the knowledge or consent of the identity theft victims.
“This case is the latest involving stolen identity refund fraud, which victimizes both the United States and the individuals who have had their identities stolen,” said United States Attorney Eileen M. Decker. “Individual victims of this type of fraud typically have to devote significant time and resources recovering their tax refund and protecting their identities from future fraud.”
In his plea agreement, Adel Cotton admitted that he and his son directed the IRS to mail the fraudulent refunds to addresses they controlled. The defendants then worked with two unidentified co-conspirators to deposit the refund checks using bank accounts opened in the names of the identity theft victims.
In the prior case, Adel Cotton was one of 53 people convicted in relation to the “Old Quest” tax refund scheme that fraudulently sought more than $250 million in tax refunds (see: http://go.usa.gov/ceGNJ).
The investigation into Adel and Heber Cotton was conducted by IRS Criminal Investigation and the Federal Bureau of Investigation.
Retired Judge, Attorney and Psychologist Indicted in $600 Million Social Security Fraud SchemeRead the Press Release
Thousands of Kentucky Claimants Improperly Received Disability Benefits
A retired administrative law judge, a lawyer and a psychologist were charged in a federal indictment unsealed today for their roles in a scheme to fraudulently obtain more than $600 million in federal disability payments for thousands of claimants.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Special Agent in Charge Michael McGill of the Social Security Administration-Office of Inspector General’s (SSA-OIG) Philadelphia Field Division; Special Agent in Charge Howard S. Marshall of the FBI’s Louisville, Kentucky, Field Division; Special Agent in Charge Tracey D. Montaño of Internal Revenue Service Criminal Investigations (IRS-CI) Nashville, Tennessee, Field Office; and Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services-Office of the Inspector General (HHS-OIG) Atlanta Regional Office made the announcement.
David Black Daugherty, 81, of Myrtle Beach, South Carolina; Eric Christopher Conn, 55, and Alfred Bradley Adkins, 44, both of Pikeville, Kentucky, were charged in an 18-count indictment returned on April 1, 2016, in the U.S. District Court for the Eastern District of Kentucky. The indictment was unsealed upon Conn’s arrest and initial court appearance today before U.S. Magistrate Judge Robert E. Wier of the Eastern District of Kentucky. Conn was detained pending his detention hearing, which is scheduled for April 7, 2016.
The indictment charges all three defendants with one count of conspiracy to commit mail and wire fraud. In addition, Conn is charged with three counts of mail fraud, three counts of wire fraud, two counts of obstruction, two counts of false statements, one count of conspiracy to commit money laundering, four counts of money laundering, and one count of conspiracy to structure payments. Adkins is charged with one count of mail fraud, one count of wire fraud, and one count of false statements. Daugherty also is charged with two counts of mail fraud, two counts of wire fraud, and one count of conspiracy to commit money laundering.
“The defendants are charged with designing an intricate scheme, using their expertise and positions of authority, to fraudulently induce payment of $600 million in federal disability and healthcare benefits,” said Assistant Attorney General Caldwell. “While Social Security disability programs are designed to support the disabled, the defendants allegedly used it to enrich themselves. Today’s arrests demonstrate, however, that the Criminal Division will root out greed and corruption wherever they may be found.”
“The Social Security Administration Office of the Inspector General is committed to pursuing those who violate the public trust by conspiring to misrepresent disabling conditions to defraud not only Social Security, but all American taxpayers,” said Special Agent in Charge McGill. “We will continue to uphold the integrity of Social Security’s disability programs, which are a lifeline for so many Americans and their families. I would like to thank the Department of Justice’s Criminal Division, and in particular, the division’s Fraud Section, for their willingness to take on this case and their diligent efforts to ensure these individuals will be held accountable for their actions.”
“As I stated just a few days ago when announcing charges against Kentucky Deputy Attorney General Timothy Longmeyer, the Louisville FBI is committed to cleaning up Kentucky,” said Special Agent in Charge Marshall. “The allegations against these defendants is yet another example of Kentucky’s historical willingness to accept corruption as the status quo. Although cleaning up Kentucky is a long and difficult process, today’s announcement is another step toward ending public corruption and taking back the commonwealth from those who corrupt it.”
“IRS-Criminal Investigation is committed to unraveling complex fraud and money laundering schemes,” said Special Agent in Charge Montaño. “The allegations in this case describe a gross abuse of a system that was established to provide assistance to those truly in need. The defendants are alleged to have conspired to use their positions, to corrupt the system for their own personal gain, at the expense of the American taxpayers who fund the Social Security system. We are proud to work with our law enforcement partners to investigate and prosecute individuals who attempt to enrich themselves by fraudulent means.”
“This scheme allegedly enrolled ineligible people in Medicare and Medicaid,” said Special Agent in Charge Jackson. “We are working with our law enforcement partners to protect these government health care programs funded by our taxpayer dollars.”
The indictment alleges that from October 2004 to Feb. 13, 2012, Conn, Daugherty and Adkins conspired to defraud the government by, among other things, submitting false and fraudulent medical documentation to the SSA in order to have the SSA pay claimants’ retroactive disability benefits, continue to pay claimants’ disability benefits in the future, award Medicare and Medicaid benefits to claimants and pay Conn’s attorney fees. According to the indictment, the conspirators intended that the SSA disburse more than $600 million in disability benefits in more than 2,000 cases to claimants in Kentucky and elsewhere, irrespective of the claimants’ actual entitlement to benefits. Conn, Adkins and Daugherty allegedly received more than $5 million during the nearly eight-year scheme.
According to the indictment, Conn is an attorney whose firm in Floyd County has focused for the past 20 years primarily on representing individuals seeking Social Security disability benefits; Adkins is a clinical psychologist who performed medical evaluations for Conn from 2004 through 2011; and Daugherty is a former SSA administrative law judge who began working with the SSA in 1990 and was assigned to the Office of Disability and Adjudication Review hearing office in Huntington, West Virginia, which maintained a satellite office in Prestonsburg, Kentucky, and handled the claims of Kentucky claimants who requested hearings. Daugherty, who retired in July 2011, was responsible for deciding whether claimants were disabled and entitled to benefits.
As part of the scheme, Conn allegedly filed disability applications with the Prestonsburg Field Office, irrespective of the claimants’ residence in an effort to ultimately bring the cases before the Huntington Hearing Office, where Daugherty either self-assigned or directed others to assign those cases to himself. Daugherty allegedly solicited Conn to submit falsified medical evidence so that Daugherty could issue fully favorable decisions. Adkins and others performed pretextual physical and mental evaluations on claimants, the indictment alleges. They routinely prepared and signed evaluation reports indicating that claimants had limitations considered disabling by the SSA, irrespective of claimants’ actual physical or mental conditions, according to the indictment.
According to the indictment, once the law enforcement investigation began, Conn allegedly threatened to retaliate against another person’s livelihood when that person provided truthful information to a law enforcement officer about the scheme. Conn also allegedly destroyed and directed others to destroy evidence, including federal reports, a computer tower and other electronic hardware and media located at his law firm.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The SSA-OIG, the FBI, IRS-CI and HHS-OIG investigated the case. Trial Attorney Dustin M. Davis and Special Trial Attorney Trey Alford of the Criminal Division’s Fraud Section and Trial Attorney Kristen M. Warden of the Criminal Division’s Asset Forfeiture and Money Laundering Section are prosecuting the case.
Polk County Man Charged in Mortgage Fraud SchemeRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Stevie McDonald (41, Winter Haven) with multiple counts of bank fraud and a conspiracy to commit bank fraud. If convicted on all counts, he faces a maximum penalty of 30 years in federal prison for each count. The indictment also notifies the defendant that the United States is seeking a money judgment in the amount of $509,221, the approximate loss amount that the financial institutions sustained in this case.
According to the indictment, McDonald participated in a conspiracy to defraud federally insured financial institutions in connection with multiple residential mortgage loans made by JP Morgan Chase Bank and Washington Mutual Bank. Along with others, McDonald was involved in the submission of false and fraudulent information to the lenders, which induced the lenders to make the mortgage loans. Subsequently, the recipients of these loans defaulted on those mortgages and the banks sustained losses of approximately $509,221.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Jay L. Hoffer.
Paden City, WV man sentenced for unlawful possession of firearmsRead the Press Release
WHEELING, WEST VIRGINIA – Kevin Ray Morgan, 40, of Paden City, West Virginia, was sentenced today to 27 months in prison for unlawful possession of firearms, United States Attorney William J. Ihlenfeld, II, announced.
Morgan, who has a previous felony conviction in Tyler County, was discovered in unlawful possession of two firearms in October 2015 in Tyler County. Morgan was convicted of “Failure to Appear” in the Circuit Court of Tyler County. He pled guilty in February 2016 to one count of “Felon in Possession of a Firearm.”
Assistant U.S. Attorney David Perri prosecuted the case on behalf of the government. The Tyler County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. District Judge John Preston Bailey presided.
Owner of Detroit Home Health Care Agency Sentenced to 57 Months in Prison for His Role in $3.4 Million Health Care Fraud SchemeRead the Press Release
The owner and operator of a Detroit-area home health care agency was sentenced to 57 months in prison today for his participation in a $3.4 million health care fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Region made the announcement.
Mohammad Rafiq, 49, of West Bloomfield, Michigan, was sentenced by U.S. District Judge George Caram Steeh of the Eastern District of Michigan, who also ordered Rafiq to pay $3,471,906.02 in restitution and to forfeit the same amount.
According to his plea agreement, Rafiq was the owner and operator of Perfect Home Health Care (Perfect), a home health care agency that purported to provide home health care and physical therapy services to eligible Medicare beneficiaries in the greater Detroit metropolitan area. According to admissions made as part of his plea agreement, Rafiq paid physicians and recruiters to refer Medicare beneficiaries to Perfect and sign medical documents falsely certifying that they required home health care. Rafiq also directed patient recruiters and Perfect employees to pay cash kickbacks to Medicare beneficiaries in exchange for signing multiple blank physical therapy records, he admitted.
Between February 2009 and November 2013, Medicare paid Perfect approximately $3.4 million as a result of these false and fraudulent claims, Rafiq admitted.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Michigan. This case is being prosecuted by Trial Attorney Elizabeth Young and Special Trial Attorney Katie R. Fink of the Fraud Section and Assistant U.S. Attorney Katherine Wagner of the Eastern District of Michigan.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
New York man pleads guilty to unlawful cigarette smugglingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Abrahim Yahya Kassim, 28, of Richmond Hill, New York, pled guilty in federal court today to unlawful cigarette smuggling, United States Attorney William J. Ihlenfeld, II, announced.
Kassim participated in a cigarette smuggling operation designed to transport large quantities of cigarettes across state lines for redistribution and sale. The cigarettes were acquired in Virginia, where the tax rate for cigarettes is one of the lowest in the nation, and sold in New York, which has one of the nation’s highest tax rates. The cigarettes were possessed and transported in West Virginia.
Kassim pled guilty today to one count of “Conspiracy to Traffic in Contraband Cigarettes.” He faces up to five 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. Attorneys Michael Stein and Shawn Adkins prosecuted the case on behalf of the government. Homeland Security Investigations, the Frederick County, Virginia Sheriff’s Office, the Virginia Office of Attorney General, the Alcohol and Tobacco Tax and Trade Bureau, the West Virginia State Police, the New York Department of Taxation and Finance, the Federal Bureau of Investigation, and the Internal Revenue Service - Criminal Investigation led the inquiry.
U.S. Magistrate Judge Robert W. Trumble presided.
New York Man Sentenced to Prison for Rushing Airline CockpitRead the Press Release
ALEXANDRIA, Va. – David Patrick Diaz, 36, of Poughkeepsie, New York, was sentenced today to nine months in prison and three years of supervised release for interference with flight crew members and attendants. Diaz was also ordered to complete mental health and substance abuse treatment programs, and pay restitution to United Airlines in the amount of $22,151.77.
Diaz pleaded guilty on Jan. 15, 2016. According to court documents, Diaz admitted to shouting threatening statements as he charged the cockpit of a United Airlines flight shortly after it took off from Dulles International Airport in March 2015. After being tackled by a group of passengers, Diaz said the word, “Jihad,” and he also said that there was something in the belly of the plane. The passengers and flight attendants were able to restrain Diaz until the plane returned safely to Dulles.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorneys Tyler McGaughey and Jonathan Fahey prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-324.
New York Man Pleads Guilty to Failure to Register as a Sex OffenderRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Thomas P. Cortez, of College Point, New York and Portland, Maine, pleaded guilty today in U.S. District Court to failing to register as a sex offender.
According to court documents, Cortez was convicted in Maine in 1989 of unlawful sexual contact with a minor under 14 years old. As a result, Cortez is required to register as a sex offender for life. In 1996, Cortez was living in New York when it instituted a sex offender registry. Between about 1996 and about March of 2003, Cortez was registered in New York. In 2003, Cortez gave New York notice that he was moving back to Maine. Between 2006 and 2015, Cortez registered in Maine. After March 2015, Cortez moved to College Point, New York, where he lived with his father and stepmother. He did not inform Maine that he had moved to New York and he did not register in New York. In December of 2015, Cortez was arrested in New York and told arresting officers, among other things, that he had been living in New York for about eight months.
Cortez faces up to 10 years in jail and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by U.S. Marshals Service, the U.S. Postal Inspection Service, the Maine Department of Health and Human Services, the Maine and New York Sex Offender Registries, and the Portland Police Department.
New Orleans Man Charged with Wire FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CLARK JAMES PELLEGRIN, JR., age 40, of New Orleans, has been charged in a one-count Bill of Information with wire fraud.
PELLEGRIN is charged with engaging in a multi-year scheme involving creditors on whose behalf he collected overdue debts from debtors. The scheme charges that PELLEGRIN negotiated with debtors even though he had no authority to negotiate and made collections from debtors on behalf of twenty-three different creditors in the approximate amount of $243,980, which funds he converted to his own use, instead of paying the creditors.
If convicted, PELLEGRIN faces a possible maximum sentence of twenty years imprisonment on the single count.
U.S. Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Postal Inspection Service. Assistant U.S. Attorney Patrice Harris Sullivan is in charge of the prosecution.
Nebraska Men Sentenced for Conspiracy to Commit Mail FraudRead the Press Release
United States Attorney Deborah R. Gilg announced that on April 4, 2016, Jeffery Negus, of Omaha, Nebraska, age 55, and Gregory Negus of Omaha, Nebraska, age 60, were sentenced for conspiracy to commit mail fraud. The Honorable Chief Judge Laurie Smith Camp sentenced both men to a 4 year term of probation. Both men were also ordered to make restitution in the amount of $708,743.21.
An investigation conducted by the United States Department of Labor determined that from 2007 through 2011, Jeffery Negus and Gregory Negus operated businesses in the District of Nebraska identified as Negus-Sons, Inc and Netal, Inc. These businesses entered into federally-funded prevailing wage construction contracts for work on several construction projects in the District of Nebraska. Negus-Sons, Inc and Netal, Inc. accepted payments of approximately $4.9 million dollars relating to the federally-funded construction projects for which prevailing wage fringe benefit contributions were to be paid to employee benefit plans.
The United States Department of Labor determined that Jeffery Negus and Gregory Negus fraudulently diverted, for their own use and the use of Negus-Sons, Inc and Netal, Inc., fringe benefit contributions relating to the federally-funded prevailing wage construction contracts in the approximate amount of $708,741.56, which payments were supposed to go to employee benefit plans. As part of the scheme, Jeffery Negus and Gregory Negus used the United States mail to submit hundreds of certified reports to governmental agencies, which falsely represented that the fringe benefit contributions were being made to the employee benefit plans.
This case was investigated by the United States Department of Labor.
National Crime Victims’ Rights Week Event Set for April 10 in CharlottesvilleRead the Press Release
CHARLOTTESVILLE, VIRGINIA – The Jefferson Area Victim Assistance Coalition will host a Community Day on Sunday, April 10 from 1 to 4 p.m. at the Ntelos Wireless Pavilion on the downtown mall in Charlottesville to commemorate National Crime Victims’ Rights Week (April 10-16).
“Protecting the rights and dignity of the victims of crimes is as important a part of the administration of justice as any other aspect of an investigation or prosecution,” United States Attorney John P. Fishwick Jr. said today. “The United States Attorney’s Office strives to work in cooperation with all of our local, state and federal law enforcement and service provider partners to ensure the victims of crimes are treated with respect, dignity and have their rights protected at all times.”
The Community Day, which is free and open to the public, has been planned as a family friendly, interactive event with demonstrations and information available from dozens of local agencies. There will be plenty for kids to see and do, including police motorcycles, fire trucks, police cars, and demonstrations by local K9 Officers and therapy dogs. Many of the local agencies will have plenty of giveaways for the kids.
In addition, there will information available for parents, including DNA and fingerprinting kits available, anti-bullying information, tips on home safeguarding, self-defense and how to avoid falling victim to a scam.
The Jefferson Area Victim Assistance Coalition consists of members form the Albemarle Co. Victim/Witness Program, Charlottesville Victim/Witness Program, Fluvanna County Victim/Witness Program, Greene County Victim/Witness Program, Homeland Security Victim/Witness Program, Louisa County Victim/Witness Program, Sexual Assault Resource Agency, University of Virginia Victim/Witness Program and the United States Attorney’s Office Victim/Witness Program.
Local Agencies participating in Sunday’s event include: the Jefferson Area Victim Assistance Coalition, Charlottesville Fire Department, Charlottesville Police Department, Fluvanna County Sheriff’s Office, Charlottesville Sheriff, Offender Aid and Restoration, Shelter for Help in Emergency, Sexual Assault Resource Agency, The Women’s Agency, The Women’s Initiative, Louisa Sheriff’s Office, United States Attorney’s Office for the Western District of Virginia, Homeland Security Investigations, Foothills Child Advocacy Center, Help Save the Next Girl, CVLAS/SAAF, Albemarle County Police Department, Albemarle County DSS, UVA Police Department and the Charlottesville Albemarle Rescue Squad.
Napa Physician Agrees to Pay $400,000 to Settle Allegations That He Submitted False Claims to the Medicare ProgramRead the Press Release
SAN FRANCISCO – Ali S. Vaziri, a gastroenterologist who had a private gastroenterologist practice in Napa, California, has agreed to pay the United States $400,000 to settle allegations that he submitted false claims for reimbursement to the Medicare program in violation of the False Claims Act, announced United States Attorney Brian J. Stretch; David J. Johnson, Special Agent in Charge, Federal Bureau of Investigation; Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf; and Special Agent in Charge Steve Ryan, Office of Inspector General for the U.S. Department of Health and Human Services.
From 2007 to 2011, Dr. Vaziri allegedly billed Medicare for patient office visits that reflected more time and services than he actually spent with patients. In addition, Dr. Vaziri allegedly billed Medicare for patient office visits that were required to be billed together with routine colonoscopies as one charge.
This case is the result of an investigation by the U.S. Attorney’s Office, the Federal Bureau of Investigation, Office of Inspector General for the U.S. Department of Health and Human Services, and the Internal Revenue Service, Criminal Investigations.
Assistant U.S. Attorney Gioconda R. Molinari handled the matter on behalf of the U.S. Attorney’s Office for the Northern District of California, with assistance of Paralegal Tiffani Chiu.
Morgantown woman pleads guilty to role in Detroit to WV heroin trafficking operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Debra Bolden, 46, of Morgantown, West Virginia, pled guilty to heroin trafficking in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Bolden participated in a drug trafficking network designed to transport heroin across state lines from Detroit, Michigan to Morgantown, West Virginia for redistribution and sale throughout the region. The heroin trafficking scheme was interrupted in February 2016 when a federal grand jury returned indictments against Bolden and thirteen other individuals. Specifically, Bolden sold heroin in August 2015 in Monongalia County, West Virginia.Bolden pled guilty to “Distribution of Heroin.” She faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crime Task Force investigated.U.S. Magistrate Judge Michael John Aloi presided.
Montana Husband and Wife Indicted for Tax FraudRead the Press Release
A federal grand jury sitting in Billings, Montana, returned an indictment on Feb. 17, which was unsealed today, charging a Saint Ignatius, Montana, couple with one count of conspiracy to defraud the United States and three counts of tax evasion, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Michael W. Cotter of the District of Montana.
According to the allegations in the indictment, Margaret DeYoung aka Peggy Ann DeYoung and John Robert DeYoung failed to file federal income tax returns with the Internal Revenue Service (IRS) for the years 2009 through 2011. During these years, Margaret DeYoung received rental income as a part-owner of two mobile home parks in California. It is alleged that the DeYoungs conspired together to conceal assets and income from the IRS through the use of nominee entities that they created. The DeYoungs opened bank accounts in the names of these entities using fabricated Employer Identification Numbers to hide the rental income from the IRS and to pay personal expenses.
If convicted, the DeYoungs face a statutory maximum sentence of five years in prison for the conspiracy charge and five years in prison for each count of tax evasion, along with a $250,000 fine on each count.
An indictment merely alleges that crimes have been committed and defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Cotter thanked special agents of IRS-Criminal Investigation, who investigated the case and Assistant U.S. Attorney Chad Spraker of the District of Montana and Trial Attorney Rebecca J. Sable of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Mission Hills Woman Pleads Guilty to Impeding the IRS by Lying about Cayman Islands BusinessesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Mission Hills, Kan., woman pleaded guilty in federal court today to impeding the work of the IRS by lying under oath about her Cayman Islands businesses.
Verna Cheryl Womack, 65, of Mission Hills, pleaded guilty before U.S. District Judge Gary A. Fenner to the charge contained in a Dec. 12, 2013, federal indictment.
By pleading guilty today, Womack admitted that she testified falsely while under oath with the corrupt intent to impede the due administration of the Internal Revenue Code.
In 2009, Womack was served with a subpoena to testify at a deposition in a civil enforcement action brought by the U.S. Department of Justice. This civil enforcement action sought to permanently enjoin Allen R. Davison from providing tax advice. Davison had previously served as Womack’s tax advisor, and later, as her business employee.
Womack complied with the subpoena and testified under oath at a deposition on May 19, 2009. Womack admitted today that she answered questions falsely and with the corrupt intent to impede the due administration of the Internal Revenue Code.
During the deposition, the Dept. of Justice attorney asked Womack if she knew when a company called JoJoDi Insurance Company of Cayman was started. Instead of answering truthfully, Womack responded to the question by falsely stating that she did not know when JoJoDi was started. In fact, she knew that she had personally caused it to be started in 1997.
During the deposition, the Dept. of Justice attorney also asked Womack who owned Lucy Limited, another Cayman Islands business. Womack was the settlor and 1/3 beneficiary of the trust that owned Lucy Limited. Instead of answering truthfully, however, Womack falsely stated that Lucy Limited was owned by a group of investors. In fact, she knew that there were no such investors. Womack knew that she had caused the creation of both Lucy Limited and the trust that owned Lucy Limited.
Among its assets, according to the indictment, Lucy Limited owned (as nominee for Womack) a wine collection that was stored in the basement of Womack’s Mission Hills residence. Womack used a credit card issued by the Bank of Butterfield (in Grand Cayman) in the name of Lucy Limited to purchase at least part of the wine for her collection, the indictment says. On March 15, 2008, Womack sold approximately half of the wine stored in her basement at an auction house in New York for $1.6 million.
Federal prosecutors will argue at Womack’s sentencing hearing that Womack’s criminal conduct resulted in a significant tax loss, which is relevant for determining an appropriate sentence. However, the court will determine whether the tax loss is relevant to sentencing in this case, and if it is, whether Womack’s conduct resulted in a criminal tax loss, and if so, in what amount, and the impact that any tax loss may have on determining the sentence.
Under the terms of today’s plea agreement, Womack will be sentenced to up to two years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Brian P. Casey and Daniel M. Nelson. It was investigated by IRS-Criminal Investigation and the FBI.
Men Arraigned on Charges of Failing to Pay over Hospital Payroll TaxesRead the Press Release
Texarkana, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that James R. Cheek, age 67, formerly of Douglasville, Georgia, and Herschel J. Breig, Sr., age 68, formerly of Nixa, Missouri, appeared today before United States Magistrate Judge Barry A. Bryant for arraignment on nine (9) counts of Failure to Pay Over Employment Tax in violation of 26 U.S.C. § 7202. The Indictment alleges that as principals of Hope Medical Park Hospital, both Cheek and Breig were responsible to collect, truthfully account for, and pay over the hospital’s payroll taxes to the Internal Revenue Service throughout the calendar years 2009, 2010, 2011, and 2012, failed to pay approximately $6,000,000 in payroll taxes as was required.
The charges in an indictment are only allegations. A person is presumed innocent unless or until he or she is proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the Internal Revenue Service Criminal Investigative Division and the Federal Bureau of Investigation (FBI). Assistant United States Attorney Jonathan D. Ross is prosecuting the case for the United States.
* * * E N D * * *
Martinsburg man pleads guilty to cocaine traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Ronald Lee Jackson, Jr., 29, of Martinsburg, pled guilty to cocaine trafficking in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Jackson sold cocaine in Berkeley County, West Virginia. He pled guilty to one count of “Distribution of Cocaine Base.” He faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Special Assistant U.S. Attorney Stephanie Taylor, also of the Berkeley County Prosecuting Attorney’s Office, prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.U.S. Magistrate Judge Robert W. Trumble presided.
Mark Douglas “Doug” Helton Sentenced to 151 Months in Prison for Child Pornography OffensesRead the Press Release
KNOXVILLE, Tenn.- On April 5, 2016, Mark Douglas “Doug” Helton, 62, of Maryville, Tenn., was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve 151 months in prison as a result of his conviction for distribution of child pornography.
Following his release from prison, Helton will be supervised by the U.S. Probation Office for 10 years and will be required to register with the sex offender registry in any state in which he resides, works, or attends school.
Helton pleaded guilty in October 2015 to federal charges stemming from an undercover investigation into distribution of child pornography via peer-to-peer file sharing software on the Internet. After undercover investigators downloaded child pornography from Helton’s computer, a federal search warrant was executed at his residence and a forensic examination of his computer revealed that he had collected thousands of images and videos of child pornography. A large assortment of the depictions of child abuse collected by the defendant was available for download by others from Helton’s computer through the use of peer-to-peer software.
Nancy Stallard Harr, Acting U.S. Attorney, emphasized the importance of pursuing child pornography offenders stating, “This sentence should send a message that the United States will aggressively investigate and prosecute those who choose to participate in the continued victimization of children, some of our most vulnerable members of society, through the circulation of child pornography on the Internet.”
This investigation was conducted locally by Knoxville Police Department’s Internet Crimes Against Children Task Force. Assistant U.S. Attorney Matthew Morris represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
###
Malden heroin dealer pleads guilty to Federal drug crimeRead the Press Release
CHARLESTON, W.Va. – A Malden man pleaded guilty today to a federal heroin crime, announced Acting United States Attorney Carol Casto. James Christian Young, 41, entered his guilty plea to distribution of heroin.
Young admitted that on October 19, 2015, he sold heroin to a confidential informant working with law enforcement. The drug deal took place at Young’s residence on Georges Creek Drive in Malden in Kanawha County. Young faces up to 20 years in federal prison and a $1 million fine when he is sentenced on June 23, 2016.
The Metropolitan Drug Enforcement Network Team and the Kanawha County Sheriff’s Office conducted the investigation. Assistant United States Attorney John J. Frail is handling the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
-
Follow us on Twitter: SDWVNews
-
Lubbock Man Sentenced to 27 Months in Federal Prison for Sending Obscene Material to Texas DPS Special Agent Posing Online as a 13-Year-Old FemaleRead the Press Release
LUBBOCK, Texas — A 30-year-old Lubbock, Texas, man, Justin Boyet Johnson, was sentenced on Friday by U.S. District Judge Sam R. Cummings to 27 months in federal prison, following his guilty plea in January to an indictment charging one count of attempted transfer of obscene material to a minor, announced U.S. Attorney John Parker of the Northern District of Texas.
Johnson must surrender to the Bureau of Prisons on May 6, 2016.
According to documents filed in his case, on May 15, 2015, Johnson engaged in a series of communications, via texting and emailing, with a person he believed to be a 13-year-old girl who represented that she lived in Lubbock. This “girl,” who was actually a special agent with the Texas Department of Public Safety, acting in an undercover capacity, had posted an online advertisement stating she was bored and looking for something to do. Johnson expressed his sexual interest in the girl and emailed her a sexually explicit photograph of himself.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by the Texas Department of Public Safety and the Federal Bureau of Investigation. Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecution.
# # #
Korean Company Fined $750,000 and to Make $200,000 Community Service Payment for Illegal Discharge of Waste WaterRead the Press Release
HONOLULU -- United States District Court Judge Leslie E. Kobayashi today accepted the guilty plea of Doorae Shipping Co., LTD, a South Korean maritime operations company, and sentenced the company to pay a fine of $750,000, a community service payment of $200,000, and a term of two years of probation for the failure to maintain an accurate oil record book, in violation of the Act to Prevent Pollution from Ships, and making false statements to the U.S. Coast Guard concerning the discharge of oil contaminated bilge water.
According to the Information to which Doorae pled guilty, the operation of a marine vessel, such as the B. Sky, an oil tanker ship flagged out of Vanuatu and operated by Doorae, generates large quantities of waste oil and oil-contaminated waste water. International and U.S. law requires that these vessels use pollution prevention equipment to preclude the discharge of these materials. Should any overboard discharges occur, they must be recorded in an oil record book, a log that is inspected by the U.S. Coast Guard.
Information produced to the court established that instead of running bilge water through an oil water separator, the Chief Engineer of the B. Sky discharged over 500 gallons of oily machinery space bilge water directly into the ocean. The Court approved the payment of the $200,000 community service payment, per an agreement between the government and Doorae to be donated to the National Fish and Wildlife Service Foundation to fund projects that preserve and enhance coral reefs and reef ecosystems in Hawaii.
In addition, the Court also took the guilty plea of the Chief Engineer of the B. Sky, JEUNG MUN, to one charge of causing the maintenance of a faulty oil record book in violation of the Act to Prevent Pollution from Ships. The Court scheduled MUN’s sentencing for July 27, 2016.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said "All maritime companies, including those that provide refueling services on the open seas, must respect the laws and the obligations of their trade, which exist to prevent the spoiling of oceans and marine habitat. This office will continue to aggressively investigate and prosecute those who violate our nation’s laws enacted to protect our oceans and environment.
"The Coast Guard has a long-standing commitment to protecting our nation's maritime environment," said Captain Shannon Gilreath, Coast Guard Captain of the Port of for Honolulu. "This case is a great example of inter-agency teamwork to hold accountable vessel operators that choose to pollute the waters around the Hawaiian Islands."
"The oceans and marine wildlife must be protected from marine companies that look to cut corners by dumping untreated waste," said Jay M. Green, Special Agent in Charge of the Environmental Protection Agency’s (EPA) criminal enforcement program in Hawaii. "The defendants in this case falsified their log books in an attempt to conceal their crimes, but thanks to the thoroughness of Coast Guard and EPA investigators and the persistence of the United States Attorney’s Office, the defendants got caught. Today’s guilty pleas demonstrate that the American people will not tolerate the flagrant violation of U.S. laws."
The case was investigated by U.S. Coast Guard Sector Honolulu, the U.S. Coast Guard Investigative Service and the EPA. The case was prosecuted by Assistant U.S. Attorney Ken Sorenson.
KC Postal Carrier, California Man Charged with Conspiracy to Distribute PCP Through the MailRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., postal carrier and a California man have been charged in federal court for their roles in a conspiracy to distribute multi-kilogram quantities of PCP through the mail.
Michael Garrett, 56, of Victorville, Calif., and Carol Barfield, 64, were charged in a criminal complaint filed under seal in the U.S. District Court in Kansas City, Mo., on March 29, 2016. That complaint was unsealed and made public today upon the arrests and initial court appearances of Garrett and Barfield.
The federal criminal complaint alleges that Garrett and Barfield participated in a conspiracy to distribute PCP from Nov. 2, 2015, to March 4, 2016. Garrett allegedly mailed bottles of PCP from California to addresses on Barfield’s Kansas City, Mo., postal route, so that she could identify those parcels and mark them as delivered, while actually keeping them to distribute to others.
According to an affidavit filed in support of the complaint, federal agents learned that Garrett was mailing parcels containing gallons of PCP to separate addresses on the same postal carrier’s route; the carrier was later identified as Barfield. Agents identified five suspicious transactions from the Victorville post office, mailing a total of 15 parcels addressed to separate addresses on the same carrier route from Nov. 2 to Dec. 16, 2015. Each of the parcels weighed in excess of 10 pounds. Barfield allegedly scanned all of the suspicious mailings as “delivered” on her route.
Agents also identified 61 telephone calls between Barfield and Garrett during the same time frame, the affidavit says.
On March 1, 2016, surveillance video identified Garrett mailing four parcels at the Victorville post office. The four parcels were mailed to separate addresses on Barfield’s postal route, the affidavit says, but were addressed to individuals who did not reside at those addresses. On March 4, 2016, federal agents set up surveillance on Barfield’s postal route. Barfield loaded the parcels into her postal vehicle. She scanned the first parcel as delivered, the affidavit says, but she did not actually deliver the parcel.
According to the affidavit, agents believe that Barfield then realized she was being followed by law enforcement, so she delivered one of the parcels as addressed and scanned the other parcels as undeliverable. Prior to returning to the station, the affidavit says, she rescanned the first parcel (which she had originally scanned as “delivered”) as “undeliverable.” When she returned to the station, the affidavit says, Barfield told her supervisor that she saw people following her on the route.
Agents opened the suspicious parcels, which each contained two 64-ounce plastic Welch’s Grape Juice bottles of PCP. The total weight of the liquid from the eight bottles was approximately 13.4 kilograms.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Justin G. Davids. It was investigated by the U.S. Postal Inspection Service and the Drug Enforcement Administration.
Justice Department Hosts Interagency Community Initiative in Dallas to Combat Religious DiscriminationRead the Press Release
DALLAS — The Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Northern District of Texas, in partnership with other federal agencies, hosted a community roundtable in Dallas last week that focused on religiously-motivated hate violence and hate crimes, protecting places of worship, and ways the federal government can improve its efforts in these critically important areas, announced U.S. Attorney John Parker of the Northern District of Texas.
“The diversity and tolerance of the north Texas area can be seen reflected in our many and varied faith-based communities,” said U.S. Attorney Parker. “The one thing we cannot, must not, tolerate, however, is hate directed at someone solely because they are different. It is particularly repugnant to our core values as Americans to victimize a person or group because of their faith. In fact, it is our shared duty to ensure that everyone, not just those who think like us, is free to worship as they choose and do so in peace.”
Approximately 35 representatives from Dallas - Fort Worth area faith-based community and civil rights organizations as well as several government agencies attended the roundtable that was facilitated by U.S. Attorney Parker. Enthusiastic dialogue during the roundtable will guide stakeholders in identifying next steps, as well as short and long-term goals.
A guest at the roundtable, U.S. Attorney Barry Grissom of the District of Kansas, spoke about the April 2014 shooting deaths of three people outside Jewish facilities in Overland Park, Kansas, and the resulting aftermath. Grissom also spoke about the statement he made to Kansans after a series of crimes in the U.S. against Muslims and mosques followed the Paris and San Bernardino, California, terrorist attacks, asking them to not let fear drive them to hateful and divisive acts toward Muslims.
This roundtable is the second in a series of roundtables being held throughout the U.S. as part of the Department’s new interagency community engagement initiative designed to promote religious freedom, challenge religious discrimination and enhance enforcement of religion-based hate crimes. This new initiative supplements the Department’s long-standing criminal and civil enforcement efforts to prevent religious discrimination and religion-motivated hate crimes.
# # #
Johnstown Man Charged with Violating Federal Drug LawsRead the Press Release
JOHNSTOWN, Pa. – On April 5, 2016, a resident of Johnstown, Pa., was indicted by a federal grand jury in Johnstown on charges of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
The four-count indictment named Vantroy Godboat, 44.
According to the indictment presented to the court, on Jan. 27, Feb. 2, and Feb. 4, 2016, Godboat distributed less than 100 grams of heroin on each of those dates, and on Feb. 5, 2016, Godboat possessed with the intent to distribute less than 100 grams of heroin.
The law provides for a maximum sentence of 80 years in prison and a fine of $4,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Cambria County Drug Task Force, conducted the investigation that led to the prosecution of Godboat.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Husband and Wife Sentenced to Federal Prison for Selling Methamphetamine on the Ak-Chin Indian CommunityRead the Press Release
PHOENIX – Yesterday, Stephanie Amanda Aviles, 31, and Juan Verduzco-Caro, 37, of Maricopa, Ariz., were sentenced by U.S. District Judge Susan R. Bolton to 96 months’ and 72 months’ imprisonment, respectively. Aviles and Verduzco-Caro had previously pleaded guilty to possession with the intent to distribute a mixture or substance containing methamphetamine.
Between August 4, 2014 and April 28, 2015, Aviles and Verduzco-Caro sold methamphetamine to undercover officers on and near the Ak-Chin Indian Community. Neither defendant is a member of the Ak-Chin Tribe.
The investigation in this case was conducted by the Bureau of Indian Affairs, the Ak-Chin Police Department, and the Drug Enforcement Administration. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-15-0604-PHX-SRB
RELEASE NUMBER: 2016-029 Aviles_Verduzco-Caro
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Hunting Privileges Revoked for Duck Hunter Who Used Forged StampRead the Press Release
Robert W. Fabick, of St. Louis, Missouri, pled guilty last week in federal court to misdemeanor charges for creating and using a fraudulent stamp in order to circumvent the lottery draw process at the Duck Creek Waterfowl Draw on the Mingo National Wildlife Refuge in Stoddard County. Fabick appeared before United States Magistrate Judge Abbie Crites-Leoni at the Rush H. Limbaugh, Sr. U.S. Courthouse in Cape Girardeau, Missouri, for his plea on March 31, 2016.
Conservation officials previously implemented a lottery draw process for waterfowl hunting at Duck Creek in order to accommodate heavy demand during peak times of the waterfowl hunting season. The process requires prospective hunters to arrive early in the morning to register for the lottery. If a hunter’s name is picked during the draw, conservation officials use an official stamp to mark their hunting pass and they are granted the privilege of hunting waterfowl on the grounds for the day.
On the morning of December 16, 2014, conservation officials investigated a complaint that Fabick had fired a shot several minutes before legal shooting hours were scheduled to begin. When confronted by officials, Fabick turned over a stamped hunting pass. During the course of the investigation, officials discovered that Fabick had not registered for the lottery draw that morning. Fabick later admitted that he used a fraudulent stamp to mark his hunting pass. Fabick told officials that he arranged to have the fraudulent stamp manufactured so that he could bypass the lottery draw process for waterfowl hunting. Fabick explained that he became frustrated in the past when his name was not picked during the draw and he wanted to guarantee that he could hunt on the property.
As part of a plea agreement with federal prosecutors, Fabick is subject to a complete revocation of all hunting privileges on both public and private lands for a period of three (3) years. Fabick was also ordered to pay a fine of $5,000 for using the fraudulent stamp and a fine of $100 for attempting to take migratory birds before lawful shooting hours.
This case was investigated by the U.S. Fish and Wildlife Service and the Missouri Department of Conservation.
Hartford Man Sentenced to More Than 6 Years in Federal Prison for Trafficking HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that YOANNI SUAREZ, also known as “Cuba,” 39, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 78 months of imprisonment, followed by four years of supervised release, for trafficking heroin.
According to court documents and statements made in court, in August 2015, the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force received information that SUAREZ was selling large quantities of raw heroin in Hartford. SUAREZ was arrested on September 17, 2015, after investigators coordinated a controlled purchase of heroin from SUAREZ. SUAREZ possessed 278 grams of heroin at the time of his arrest. A subsequent search of his Stafford Street residence revealed an additional 986 grams of heroin.
The quantity of heroin possessed by SUAREZ would create approximately 50,000 individual bags when broken down for street sale. SUAREZ admitted to law enforcement that he obtained heroin at a price of approximately $60,000 per kilogram, which he received from his supplier on credit.
SUAREZ has been detained since his arrest. On January 7, 2016, he pleaded guilty to one count of possession with intent to distribute 100 grams or more of heroin.
The FBI’s Northern Connecticut Violent Crimes Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case was prosecuted by Assistant U.S. Attorneys Michael J. Gustafson and Gabriel J. Vidoni.
Hardy County, WV man pleads guilty to cocaine traffickingRead the Press Release
ELKINS, WEST VIRGINIA – Roberto Montalvo Laureano, 33, of Moorefield, West Virginia, pled guilty to cocaine trafficking in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Laureano sold cocaine in Hardy County, West Virginia. He pled guilty to one count of “Cocaine Distribution.” He faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Warner prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, and the Potomac Highlands Drug and Violent Crime Task Force investigated.U.S. Magistrate Judge Michael John Aloi presided.
Grant County, WV man pleads guilty to painkiller traffickingRead the Press Release
ELKINS, WEST VIRGINIA – Samuel Lee Winebrenner, 29, of Petersburg, West Virginia, pled guilty to selling morphine in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Winebrenner sold morphine near Petersburg City Park, a playground in Grant County, West Virginia. He pled guilty to one count of “Distribution of Morphine within 1,000 feet of a Protected Location.” He faces between one and forty years in prison and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Warner prosecuted the case on behalf of the government. The Potomac Highlands Drug and Violent Crime Task Force investigated.U.S. Magistrate Judge Michael John Aloi presided.