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Wednesday 10 February 2016
Las Vegas Resident Indicted for Running Counterfeit and Misbranded Contact Lens OperationRead the Press Release
A federal grand jury in the District of Nevada has charged a Las Vegas resident with running a large operation selling counterfeit and misbranded contact lenses online to customers throughout the United States.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada and Director George M. Karavetsos of the U.S. Food and Drug Administration’s Office of Criminal Investigations (FDA OCI) made the announcement today after the indictment was unsealed and the defendant made his initial appearance before U.S. Magistrate Judge Peggy A. Leen of the District of Nevada.
Dmitriy V. Melnik, 29, was charged with one count of conspiracy to traffic in counterfeit goods and to introduce into interstate commerce misbranded devices; four counts of trafficking in counterfeit goods; and five counts of introducing misbranded devices into interstate commerce.
According to the indictment, Melnik allegedly imported thousands of colored contact lenses from the People’s Republic of China and South Korea that he knew were counterfeit, unauthorized by the FDA for import to and sale in the United States, or both. Many of these contact lenses bore counterfeit trademarks for Ciba Vision FreshLook COLORBLENDS, which are manufactured by Novartis International AG, and others had labels of brands of contact lenses produced and sold in Asia.
As noted in the indictment, contact lenses—even decorative ones—are medical devices that must receive FDA authorization to enter the United States and be further distributed. Melnik allegedly sold “authentic” contact lenses to customers without a prescription and without adequate directions for use or adequate warnings. After purchasing the contact lenses, many customers complained directly to Melnik about the quality of the contact lenses and questioned Melnik about whether the contact lenses were genuine and FDA approved. Some of the contact lenses that Melnik sold were tested and allegedly found to be contaminated with possibly hazardous bacteria.
The charges and allegations contained in the indictment are merely accusations. The defendant is presumed innocent until and unless proven guilty.
Anyone with information about individuals committing intellectual property offenses can report those crimes to the National Intellectual Property Rights Coordination Center by going to http://www.iprcenter.gov/referral or calling (866) IPR-2060.
The prosecution is the result of an ongoing multiagency effort to combat counterfeit, illegally imported and unapproved contact lenses called Operation Double Vision. The FDA OCI led the investigation, with significant support from the U.S. Postal Inspection Service and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Crane M. Pomerantz of the District of Nevada are prosecuting the case.
The indictment is related to the many efforts being undertaken by the department’s Task Force on Intellectual Property, which supports prosecution priorities, promotes innovation through heightened civil enforcement, enhances coordination among federal, state and local law enforcement partners and focuses on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders.
Las Vegas Resident Indicted for Running Counterfeit and Misbranded Contact Lens OperationRead the Press Release
Las Vegas Resident Indicted For Running Counterfeit And Misbranded Contact Lens Operation
WASHINGTON – A federal grand jury in the District of Nevada has charged a Las Vegas resident with running a large operation selling counterfeit and misbranded contact lenses online to customers throughout the United States.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada and Director George M. Karavetsos of the U.S. Food and Drug Administration’s Office of Criminal Investigations (FDA OCI) made the announcement today after the indictment was unsealed and the defendant made his initial appearance before U.S. Magistrate Judge Peggy A. Leen of the District of Nevada.
Dmitriy V. Melnik, 29, was charged with one count of conspiracy to traffic in counterfeit goods and to introduce into interstate commerce misbranded devices; four counts of trafficking in counterfeit goods; and five counts of introducing misbranded devices into interstate commerce.
According to the indictment, Melnik allegedly imported thousands of colored contact lenses from the People’s Republic of China and South Korea that he knew were counterfeit, unauthorized by the FDA for import to and sale in the United States, or both. Many of these contact lenses bore counterfeit trademarks for Ciba Vision FreshLook COLORBLENDS, which are manufactured by Novartis International AG, and others had labels of brands of contact lenses produced and sold in Asia.
As noted in the indictment, contact lenses—even decorative ones—are medical devices that must receive FDA authorization to enter the United States and be further distributed. Melnik allegedly sold “authentic” contact lenses to customers without a prescription and without adequate directions for use or adequate warnings. After purchasing the contact lenses, many customers complained directly to Melnik about the quality of the contact lenses and questioned Melnik about whether the contact lenses were genuine and FDA approved. Some of the contact lenses that Melnik sold were tested and allegedly found to be contaminated with possibly hazardous bacteria.
The charges and allegations contained in the indictment are merely accusations. The defendant is presumed innocent until and unless proven guilty.
Anyone with information about individuals committing intellectual property offenses can report those crimes to the National Intellectual Property Rights Coordination Center by going to http://www.iprcenter.gov/referral or calling (866) IPR-2060.
The prosecution is the result of an ongoing multiagency effort to combat counterfeit, illegally imported and unapproved contact lenses called Operation Double Vision. The FDA OCI led the investigation, with significant support from the U.S. Postal Inspection Service and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Crane M. Pomerantz of the District of Nevada are prosecuting the case.
The indictment is related to the many efforts being undertaken by the department’s Task Force on Intellectual Property, which supports prosecution priorities, promotes innovation through heightened civil enforcement, enhances coordination among federal, state and local law enforcement partners and focuses on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders.
Justice Department Settles Lawsuit Against the City of Somerville, Massachusetts, to Enforce the Employment Rights of a Marine Corps ReservistRead the Press Release
The Department of Justice today announced a settlement which is subject to District Court approval with the Commonwealth of Massachusetts and the City of Somerville, Massachusetts, resolving claims that the city violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) when it failed to re-employ U.S. Marine Corps Reservist Sean Keane at the level he should have been in following his multiple military deployments, including tours of duty to Afghanistan.
Keane, a firefighter for the city of Somerville since 1989, was called to active duty military service from April 2, 2004, to Sept. 25, 2013. Following his return from service, Keane took a lieutenant’s make-up promotional exam to replace the regular administration of the examination that he missed because of his military service. Keane received the highest score on the test, which placed him at the top of the promotional list, ahead of two firefighters who had already been promoted in July 2013. When Keane was eventually promoted in October 2014, he requested that his promotion be effective as of July 2013, the date he would have been promoted had he not been away on military service. He was denied the July 2013 promotion date and, as a result, was deemed ineligible to take a make-up exam for a captain’s position. Subject to certain limitations, USERRA requires that service members who leave their civilian jobs to serve in the military be reemployed by their civilian employers in the positions that they would have held if their employment had not been interrupted by military service. Under circumstances like those here, federal law also requires that a servicemember be reemployed in a position of comparable seniority, pay and status so that no opportunities for advancement or promotion are adversely affected by military service.
“The great sacrifice of Americans who serve in our Marine Corps should never be a detriment to their civilian careers,” said Acting Associate Attorney General Stuart Delery. “The Department of Justice is committed to protecting the rights of the men and women who serve in our Armed Forces and we will continue to hold employers who violate their rights accountable.”
“As a service member in Afghanistan, Sean Keane has served his country with admirable distinction, honor and integrity,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Courageous men and women like Lieutenant Keane, who answer America’s call to defend our freedom, deserve to reclaim their civilian jobs without undue impediment when they return home. We commend the state and local officials who worked cooperatively to resolve this claim under USERRA.”
“Reservists who are called into active duty to serve their country make many sacrifices including time away from their jobs,” said U.S. Attorney Carmen M. Ortiz of the District of Massachusetts. “In applying USERRA’s protections, we seek to restore servicemembers to the promotions and pay they have rightfully earned. We are committed to ensuring that those who serve our country are not disadvantaged because of their military service, and are encouraged by the City’s prompt action in fulfilling its legal obligations with respect to Mr. Keane.”
Under the terms of the settlement agreement, the city agreed to pay more than $15,000 as back pay. The agreement also provides that Keane will be permitted to make-up a missed examination for promotion to captain. Based on his score, Keane will be as eligible for a promotion as others who took the examination on its regular schedule.
This case stems from a referral by the U.S. Department of Labor (DOL), following an investigation by the DOL’s Veterans’ Employment and Training Service. The case is being handled by the Employment Litigation Section of the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office of the District of Massachusetts, who work collaboratively with the DOL to protect the jobs and benefits of Reserve and National Guard servicemembers upon their return to civilian life.
The case was handled by Assistant U.S. Attorneys Jessica Driscoll and Jennifer Serafyn of the District of Massachusetts, along with Special Litigation Counsel Andrew Braniff and Trial Attorneys Jeremy Monteiro and Taryn Null of the Civil Rights Division’s Employment Litigation Section.
The Justice Department’s Civil Rights Division has given a high priority to the enforcement of service members’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.usdoj.gov/crt/emp and www.servicemembers.gov, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.
Somerville Complaint
Somerville Stipulation and Settlement
Justice Department Files Lawsuit to Bring Constitutional Policing to Ferguson, MissouriRead the Press Release
Attorney General Loretta E. Lynch announced today that the Department of Justice filed a lawsuit in U.S. District Court against the city of Ferguson, Missouri, alleging a pattern or practice of law enforcement conduct that violates the First, Fourth and 14th Amendments of the Constitution and federal civil rights laws.
“Today, the Department of Justice is filing a lawsuit against the city of Ferguson, Missouri, alleging a pattern or practice of law enforcement conduct that violates the Constitution and federal civil rights laws,” said Attorney General Lynch. “The residents of Ferguson have waited nearly a year for their city to adopt an agreement that would protect their rights and keep them safe. They have waited nearly a year for their police department to accept rules that would ensure their constitutional rights and that thousands of other police departments follow every day. They have waited nearly a year for their municipal courts to commit to basic, reasonable rules and standards. But residents of Ferguson have suffered the deprivation of their constitutional rights – the rights guaranteed to all Americans – for decades. They have waited decades for justice. They should not be forced to wait any longer.”
“Our investigation found that Ferguson’s policing and municipal court practices violate the Constitution, erode trust and undermine public safety,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “As shown by our lawsuit today, the Justice Department will continue to vigorously enforce the law to ensure that Ferguson implements long-overdue reforms necessary to create constitutional, effective and accountable policing. Ferguson residents and police officers deserve a law enforcement system that productively and fairly serves the entire community.”
The lawsuit, filed pursuant to Section 14141 of the Violent Crime Control and Law Enforcement Act of 1994 and Title VI of the Civil Rights Act of 1964 (Title VI), alleges that the city of Ferguson, through its police department and municipal court:
- conducts stops, searches and arrests without legal justification, and uses excessive force, in violation of the Fourth Amendment;
- interferes with the right to free expression in violation of the First Amendment;
- prosecutes and resolves municipal charges in a manner that violates due process and equal protection guaranteed by the 14th Amendment; and
- engages in discriminatory law enforcement conduct against African Americans in violation of the 14th Amendment and federal statutory law.
The lawsuit follows a comprehensive investigation of Ferguson’s police department and municipal court conducted by the Civil Rights Division. In March 2015, the department detailed its investigative findings in a 104-page report. The department found that Ferguson’s focus on generating revenue over public safety, together with racial bias, has a profound effect on Ferguson’s police and court practices, resulting in conduct that routinely violates the Constitution and federal civil rights laws.
The complaint alleges that from October 2012 to October 2014, African Americans were more than twice as likely to be searched, to receive a citation or to be arrested, than other stopped individuals. Of all incidents from 2010 to August 2014, African Americans account for 88 percent of all incidents in which a Ferguson police officer reported using force. For municipal offenses where Ferguson police officers have a high degree of discretion in charging, African Americans were again disproportionately represented as compared to their relative representation in Ferguson. While African Americans make up 67 percent of the Ferguson’s population, they make up 95 percent of manner of walking in roadway charges; 94 percent of failure to comply charges; 92 percent of resisting arrest charges; 92 percent of disturbing the peace charges; and 89 percent of failure to obey charges. The department also found that Ferguson’s law enforcement conduct has created a lack of trust between the police department and the community members it serves, especially African Americans.
On Feb. 9, the Ferguson City Council voted to reject the consent decree that the city’s negotiating team had negotiated. Unable to reach a mutually agreed upon court-enforceable settlement to remedy the department's findings, the lawsuit was filed today in order to seek declaratory and injunctive relief to remedy the unlawful conduct identified by the department’s investigation.
This matter was investigated by attorneys from the Civil Rights Division.
Indictment: Former Fort Riley Nurse Stole Fentanyl from HospitalRead the Press Release
TOPEKA, KAN. - A former Fort Riley nurse was indicted Wednesday on charges of stealing fentanyl, a powerful painkiller, U.S. Attorney Barry Grissom said today.
Lana J. Pendergast, 56, Clay Center, Kan., is charged with one count of unlawfully obtaining a controlled substance. The indictment alleges that while she worked as a nurse at Irwin Army Hospital she began taking fentanyl for her own use, replacing the stolen fentanyl with saline to cover up the crime. The fentanyl vials containing saline were disposed of as waste.
If convicted, she faces a maximum penalty of four years in federal prison and a fine up to $250,000. U.S. Army Criminal Investigation Division investigated. Special Assistant U.S. Attorney Robin Graham is prosecuting.
OTHER GRAND JURY INDICTMENTS
Don Alvin Womack, Jr., 41, Topeka, Kan., is charged with one count of carjacking. The indictment alleges that on Jan. 14, 2016, Womack threatened the driver of a 2001 Buick Regal and stole the vehicle. The crime occurred in Shawnee County, Kan.
If convicted, he faces a maximum penalty of 15 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
Vincent Dang, 40, Garden City, Kan., is charged with two counts of distributing child pornography. The crimes are alleged to have occurred in November 2015 and January 2016 in Garden City, Kan.
If convicted, he faces a penalty of not less than five years and not more than 20 years and a fine up to $250,000 on each count. The Dodge City Police Department, the Internet Crimes Against Children Task Force, the Wichita Police Department, and Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Haynes Timberland Fined $100,000 in Township 37 Marijuana Grow CaseRead the Press Release
Contact: Joel Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Haynes Timberland, Inc., a Maine corporation, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. and ordered to pay a $100,000 fine for managing and controlling property used to manufacture marijuana.
The charge arose out of the September 22, 2009 seizure of 2,943 marijuana plants in Township 37, Washington County. Haynes Timberland, Inc. and co-defendant, Malcolm French, were also ordered to forfeit $1,550,000, a warehouse compound in Township 31, and a hunting camp in LaGrange that facilitated drug trafficking.Judge Woodcock continued the sentencings of co-defendants French, Rodney Russell and Kendall Chase that had been scheduled to take place today.
The case was investigated by the Maine Drug Enforcement Agency the Internal Revenue Service-Criminal Investigation and the U.S. Department of Homeland Security, Office of Homeland Security Investigations, with assistance from the U.S. Drug Enforcement Administration, Maine State Police, Washington and Penobscot County Sheriff’s Offices, Maine Warden Service, Maine Forest Service and U.S. Customs and Border Protection.
Fourteen Individuals Convicted for Their Participation in Large-Scale Drug Distribution ConspiracyRead the Press Release
WASHINGTON – Eight current and former law enforcement officers, four correctional officers and two other individuals have been convicted for their participation in trafficking narcotics and narcotics proceeds for a large-scale drug trafficking organization, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney John Stuart Bruce of the Eastern District of North Carolina.
In April 2013, the FBI initiated an undercover investigation regarding allegations of systemic corruption within the Northampton County, North Carolina, Sheriff’s Office (NCSO). Undercover agents posed as members of a large-scale drug trafficking organization that was responsible for introducing kilogram quantities of narcotics to be transported up the I-95 corridor. In connection with their guilty pleas, the defendants admitted that they understood that they were recruited to work for the drug trafficking organization because of their status as law enforcement officers or ties to law enforcement. The investigation grew as the original targets recruited others to participate. The defendants transported purported narcotics and narcotics proceeds for the drug trafficking organization in exchange for bribe payments, and some defendants carried firearms during this time.
The following individuals pleaded guilty in the Eastern District of North Carolina:
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Lann Tjuan Clanton, a former correctional officer with the Virginia Department of Corrections, pleaded guilty to drug conspiracy and firearm charges today;
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Ikeisha Jacobs, a former sergeant with the NCSO, pleaded guilty to drug conspiracy, firearm and bribery charges today;
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Jason Boone, a former captain with the NCSO, pleaded guilty to drug conspiracy and bribery charges today;
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Adrienne Moody, a former correctional officer with the North Carolina Department of Public Safety, pleaded guilty to a drug conspiracy charge today;
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Cory Jackson, a former deputy sheriff of the NCSO, pleaded guilty to a drug conspiracy charge today;
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Jimmy Pair Jr., a former lieutenant with the NCSO, pleaded guilty to drug conspiracy and bribery charges today;
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Curtis Boone, a former deputy sheriff with the NCSO, pleaded guilty to drug conspiracy and bribery charges today;
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Alphonso Ponton, a former sergeant with the Virginia Department of Corrections, pleaded guilty to a drug conspiracy charge today;
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Thomas Jefferson Allen II, a former sergeant with the NCSO, pleaded guilty to drug conspiracy and bribery charges today;
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Wardie Vincent Jr., a former detective sergeant with the NCSO, previously pleaded guilty to drug conspiracy and firearms charges;
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Alaina Sue-Kam-Ling, a former correctional officer with the North Carolina Department of Public Safety, previously pleaded guilty to a drug conspiracy charge;
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Kavon Phillips, a former correctional officer with the North Carolina Department of Public Safety, previously pleaded guilty to a drug conspiracy charge;
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Crystal Pierce, of Raleigh, North Carolina, previously pleaded guilty to a drug conspiracy charge; and
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Tosha Dailey, a former 911 dispatch operator for Northampton County, previously pleaded guilty to a drug conspiracy charge.
The FBI Charlotte Division’s Raleigh Resident Agency investigated the case. Trial Attorneys Lauren Bell and Menaka Kalaskar of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Toby W. Lathan of the Eastern District of North Carolina are prosecuting the case.
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Former Tribal Casino Employee Charged in Federal Court with EmbezzlementRead the Press Release
WICHITA, KAN. – A former tribal casino employee has been charged in federal court with embezzlement, U.S. Attorney Barry Grissom said today.
Donald M. Collins, 32, Wetmore, Kan., is charged with one count of embezzling tribal funds.
A criminal information filed in U.S. District Court in Wichita Tuesday alleges the crime occurred while Collins worked as players club manager for the Sac and Fox Casino, which is owned by the Sac and Fox Nation of Kansas and Nebraska. He is accused of making $13,326 in counterfeit players cards. The cards allowed the bearers to play various casino games at the casino. Approximately $17,400 was fraudulently won by the users of the counterfeit cards.
If convicted, he faces a maximum penalty of five years in federal prison and a fine up to $250,000. The Kansas State Gaming Agency investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Former Sacramento Man Indicted for Selling Firearms and NarcoticsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 38-count indictment today against David Guevara-Pimentel, 22, of Fort Drum, New York, formerly of Sacramento, charging him with dealing and manufacturing firearms without a license, illegal possession of a machine gun, possession of an unregistered short-barreled shotgun, possession of a firearm with an obliterated serial number, and distribution of methamphetamine, cocaine, and heroin, United States Attorney Benjamin B. Wagner announced. Guevara-Pimentel was arrested on January 22, 2016, in New York, where he was stationed as a U.S. Army Private. U.S. Army Criminal Investigation Command made the arrest.
According to court documents, on 19 separate occasions between August 11, 2014, and April 29, 2015, Guevara-Pimentel met with an undercover agent and sold him a variety of firearms, including a short-barreled shotgun, unserialized AR-15-style rifles, and handguns. On many of these occasions, Guevara-Pimentel sold the agent methamphetamine, cocaine, or heroin. Altogether, Guevara-Pimentel sold the undercover agent 49 firearms, many of which lacked a serial number or other identifying markings. On January 22, 2016, Guevara-Pimentel was found to possess a fully automatic machine gun.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the West Sacramento Police Department, and the Woodland Police Department. Assistant United States Attorney Ross K. Naughton is prosecuting the case.
If convicted, Guevara-Pimentel faces the following possible penalties: a maximum statutory penalty of five years in prison and a $250,000 fine for the charges of dealing firearms without a license and possession of a firearm with an obliterated serial number, 10 years in prison and a $250,000 fine for illegal possession a machine gun, 10 years in prison and a $10,000 fine for possession of an unregistered short-barreled shotgun, 20 years in prison and a $1 million fine for any of the narcotics-distribution charges. 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.
Former Plan Trustee Sentenced for Embezzling over $1 Million, Income Tax EvasionRead the Press Release
DAYTON – Timothy Hock, 51, currently of Chicago, was sentenced to 42 months in prison and ordered to pay more than $1.3 million in restitution for his role in the embezzlement from a bankruptcy estate and income tax evasion.
Hock was ordered to pay approximately $1 million in restitution to Domin-8 Enterprises Solutions, Inc. (Domin-8) and approximately $326,000 in restitution to the Internal Revenue Service (IRS).
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Guy A. Ficco, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Division, announced the sentence handed down today by U.S. District Judge Thomas M. Rose.
According to court documents, Hock, who was a Certified Public Accountant, was the controller for Domin-8 when the company (and five other related entities) filed for Chapter 11 bankruptcy in September 2009. Domin-8 was a Mason, Ohio-based company that provided software to companies that managed rental properties.
During the bankruptcy proceedings, Hock was responsible for handling the company’s liquidation and transfer of assets, completing claims reviews and making appropriate distributions to various creditors of the company.
He embezzled approximately $1,080,289.73 which belonged to the bankruptcy estate of Domin-8 through a variety of means, including writing checks to himself from the trust’s bank accounts.
These checks were deposited into Hock’s personal bank account and then used for his personal expenditures. In addition, Hock wrote cashier’s checks from the trust’s bank accounts in order to purchase several personal vehicles, including two luxury vehicles, a 2006 Land Rover, a 2009 Jaguar XF and a 2010 Honda Civic for his daughter. Hock attempted to conceal his activities by submitting four false post confirmation reports in which he did not include all the payments he made to himself and all expenses paid on his behalf.
Hock committed tax evasion on his 2010, 2011 and 2012 tax returns by claiming that his taxable income was much less than it actually was. In total, he attempted to evade paying approximately $326,000 in federal income taxes for those years.
Hock pleaded guilty to the embezzlement and tax evasion charges on August 19, 2015.
“Tax evasion and bankruptcy fraud of this magnitude and with this degree of trickery, dishonesty and deceit, deserves to be punished,” said Guy A. Ficco, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “The IRS, FBI, and U.S. Attorney’s Office remain determined and vigilant in ferreting out such schemes to cheat the honest taxpayers."
U.S. Attorney Stewart commended the cooperative law enforcement investigation, as well as Assistant United States Attorney Alex R. Sistla, who is prosecuting the case.
Former L.A. County Sheriff Lee Baca Agrees to Plead Guilty to Lying to Federal Authorities during Investigation into His DepartmentRead the Press Release
LOS ANGELES – Former Los Angeles County Sheriff Lee Baca has agreed to plead guilty to a felony charge of making a false statement to federal authorities who were conducting a wide-ranging corruption and civil rights investigation into the Sheriff’s Department.
In a plea agreement filed this morning in United States District Court, Baca admitted that he lied to the FBI and the United States Attorney’s Office when he falsely stated that he did not know that LASD officials were going to approach the FBI’s lead agent on the investigation in 2011. In fact, Baca was aware that his deputies were going to contact the agent, and he directed that they “should do everything but put handcuffs” on her, according to his plea agreement.
During an April 12, 2013 meeting with FBI agents and Assistant United States Attorneys, Baca falsely stated that he was not made aware of his deputies contacting the FBI case agent until he received a phone call from the FBI’s then-Assistant Director in Charge of the Los Angeles Field Office, who told Baca that deputies had threatened to arrest the agent. In the plea agreement, Baca admitted that he knew his statement was untrue and that it was illegal to lie to federal investigators.
“Today’s charge and plea agreement demonstrate that illegal behavior within the Sheriff’s Department went to the very top of the organization,” said United States Attorney Eileen M. Decker. “More importantly, this case illustrates that leaders who foster and then try to hide a corrupt culture will be held accountable.”
The threat to arrest the FBI case agent was part of an extensive scheme to obstruct justice which previously has resulted in eight LASD deputies with ranks as high as captain being convicted of federal charges. The ninth person to be charged in relation to conspiracy to obstruct justice – former Undersheriff Paul Tanaka – is currently scheduled to go on trial on March 22.
During the course of the investigation that was being conducted by the FBI, the U.S. Attorney’s Office and a federal grand jury, a sheriff’s deputy assigned to the Men’s Central Jail accepted a bribe to smuggle a cell phone into the facility. The phone was delivered to an inmate who was working as an FBI informant. Jail officials later discovered the phone, linked it to the FBI and determined that the inmate was an informant. This led to a month-long scheme to obstruct the investigation, which included members of the conspiracy concealing the informant from the FBI, the United States Marshals Service and the grand jury. Members of the conspiracy also engaged in witness tampering and harassing the FBI agent.
Baca participated in a September 25, 2011 meeting in which senior members of the department discussed approaching the FBI case agent. The next day, two LASD sergeants approached the agent and threatened her with arrest.
During the 2013 meeting with the FBI and Assistant United States Attorneys, Baca denied knowing about the plan to approach the case agent, and he also denied participating in conversations about “keeping the FBI and Inmate AB away from each other,” according to the statement of facts in the plea agreement.
“One of the measures of an organizational culture is how it handles its allegations of misconduct,” said David Bowdich, Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Mr. Baca set the wrong command climate and allowed that culture to fester, instead of fostering an environment of accountability. In short, he did not lead when he had the opportunity to do so.”
In the plea agreement, the parties agree that the federal sentencing guidelines call for a sentence of up to six months in federal prison, and they have agreed that Baca should not receive a sentence above the guideline range. Once he pleads guilty, the actual sentence will be determined by the federal judge presiding over the case. But if the court decides to impose a sentence greater than six months, Baca would be allowed to withdraw from the plea agreement and face a possible indictment.
Baca made his initial appearance this morning in federal court, and he is expected to formally enter his guilty plea this afternoon at 2:30.
The case against Baca is the result of an investigation by the FBI, and is one in a series of cases resulting from an investigation into corruption and civil rights abuses at county jail facilities in downtown Los Angeles. As a result of the investigation, 17 current or former members of the Los Angeles Sheriff’s Department have now been convicted of federal charges. If a federal judge accepts the plea agreement this afternoon, Baca would become the 18th person to be convicted.
Former Financial Officer at Local Oil and Gas Company Pleads Guilty to Forgery and Signing a False Tax ReturnRead the Press Release
Oklahoma City, Oklahoma – LARRY SANFORD WATERS, of Edmond, Oklahoma, pled guilty yesterday to check forgery and signing a false federal income tax return, in connection with a $1.5 million embezzlement from a local oil and gas company, announced Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma.
On January 27, 2016, Waters was charged by information with one count of a forged security and one count of filing a false federal income tax return. From 1986 until early 2014, Waters handled accounting work and served as the financial officer at an Oklahoma City oil and gas company. As part of his job, Waters prepared checks for the company to pay operating expenses and to pay oil well owners for their profits. Yesterday, Waters pled guilty to preparing an unauthorized company check, in the amount of $65,541.32, to a separate business under his control. He admitted that he did not have his employer’s permission in August 2011 to issue the check with the oil and gas company owner’s digital signature. As part of his plea, Waters further admitted that he embezzled funds from his former employer from around 2004 through February of 2014 and stipulated that the total loss to the oil and gas company from his embezzlement scheme was $1,573,339.31. Waters has already made payment to the victim in full for the stipulated amount of restitution.
In addition to pleading guilty to forgery, Waters pled guilty to signing a false tax return. He admitted that on January 25, 2013, he signed a personal federal tax return for the 2011 calendar year that he knew was false because it reported only $379,373 in total income. At yesterday’s plea hearing, Waters admitted that he omitted on the 2011 return more than $420,000 of embezzled income for that year from his former employer.
At sentencing, Waters faces up to 10 years in prison on the forgery count, plus three years of supervised release, and a $250,000 fine. Waters also faces up to three years in prison on the tax count, in addition to one year of supervised release, a $250,000 fine, and restitution to the Internal Revenue Service for the tax loss. Waters will be sentenced on May 11, 2016. Reference is made to the information and other public filings for further information.
This case is the result of an investigation by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigations, and it is being prosecuted by Assistant U.S. Attorney Chris M. Stephens.
Five Defendants Sentenced in Extensive Stolen Identity Tax Refund Fraud SchemeRead the Press Release
Five defendants were sentenced for their participation in an extensive stolen identity tax refund fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Ronald Jerome Scriven was sentenced to 108 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $7,521,485. Danesa Latoya Webb was sentenced to 54 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $3,271,603. The defendants each previously pled guilty to one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286, one count of misusing Social Security numbers, in violation of Title 42, United States Code, Section 408(a)(8), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
On January 28, 2016, co-defendant Walter Waitus Pressley was sentenced to 31 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $1,361,326. Michael Dwight Brown, a/k/a “Big Mike,” was sentenced to 24 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $340,976. On February 2, 2016, Fritznel Jacques, a/k/a “Glacier,” was sentenced to 18 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $493,733. Each of the defendants previously pled guilty to one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286.
According to court documents, Scriven created nine business entities, seven of which were tax preparation businesses using his name, the names of co-conspirators, or the names of individuals whose identities were stolen. Scriven, Webb and others obtained electronic filing identification numbers (EFINs) from the IRS for the seven tax preparation businesses for the purpose of electronically submitting false tax returns. Scriven, Webb and Pressley recruited taxpayers and obtained their personal identifying information (PII), such as their names and Social Security numbers, for the purpose of submitting false tax returns to the IRS. Scriven and Webb also used the PII of living and deceased individuals for the same fraudulent purpose. Tax preparers’ fees and other fees totaling $700,000 were deducted from the tax refunds and were deposited into bank accounts controlled by the co-conspirators.
Scriven and Webb printed refund checks in the names of taxpayers whose names and Social Security numbers were used to file the false tax returns. Some of the co-conspirators accompanied taxpayers, whose identities they had used to file false tax returns, to cash the refund checks and would then demand a substantial portion of the proceeds obtained from those cashed checks.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Lois Foster-Steers.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
El Paso Federal Grand Jury Charges Two in Connection with Ammunition Smuggling SchemeRead the Press Release
This afternoon, a federal grand jury returned an indictment charging two El Paso residents for scheming to smuggle thousands of rounds of ammunition into the Republic of Mexico announced United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge William A. Temple, Dallas Field Division.
The three-count federal indictment charges Sofia Acosta de Caballero, age 34, and Edward Navarro, age 29, with one count of conspiracy to smuggle goods from the United States. Acosta is also charged with two substantive counts of smuggling goods from the United States. Navarro is also charged with one substantive count of smuggling goods from the United States.
The indictment alleges that from January 2015 until January 2016, the defendants conspired to purchase approximately 80,000 rounds of assorted caliber ammunition on the Internet with the understanding and purpose that this ammunition was to be exported to Mexico. The conspiracy charge also alleges that the defendants purchased several firearms with the understanding and purpose that these firearms were to be exported to Mexico.
On January 13, 2016, federal authorities at the Bridge of Americas Port of Entry in El Paso seized approximately 4,550 rounds of .38 caliber ammunition discovered inside a car being driven by Acosta. At the time, Acosta was also in possession of a Ruger Model Mini 14 magazine.
Acosta has remained in federal custody since January 13, 2016. Navarro is considered a fugitive.
Waldemar Rodriguez, special agent in charge of HSI El Paso, said HSI will continue to pursue those who present a threat to our national security. “HSI works aggressively to identify and investigate individuals tied to transnational criminal organizations who attempt to export weapons and ammunition,” said Rodriguez. “HSI and our law enforcement partners are committed to uphold the exportation laws of the United States to ensure that U.S. weapons don't end up in the wrong hands.”
William A. Temple, special agent in charge of the ATF Dallas Field Division, said, “The indictments rendered today are yet another successful example of law enforcement agencies collaborating to combat violent crime. ATF actively works alongside our law enforcement partners to provide investigative expertise and guidance in all firearms and ammunition related investigations.”
Upon conviction of the conspiracy charge, the defendants face up to five years in federal prison. Each substantive firearms charge calls for up to ten years in federal prison upon conviction.
This indictment resulted from an investigation conducted by the Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the United States Customs and Border Protection. Assistant United States Attorneys Michael C. Williams and Steven Spitzer are prosecuting this case on behalf of the Government.
HSI encourages the public to report any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form. Both are staffed around the clock by investigators. From outside the U.S. and Canada, callers should dial 802-872-6199. Hearing impaired users can call TTY 802-872-6196.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Eagle Butte Man Sentenced for Child AbuseRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Child Abuse was sentenced on February 8, 2016, by U.S. District Judge Roberto A. Lange.
Eric Brown, age 42, was sentenced to 24 months in custody, 2 years of supervised release, and $100 special assessment to the Federal Crime Victims Fund.
Brown was indicted for Aggravated Sexual Abuse of a Child and Child Abuse by a federal grand jury on July 14, 2015. He pled guilty to Child Abuse on November 16, 2015.
On January 17, 2015, Cheyenne River Sioux Tribe Law Enforcement was contacted by an employee at the Ampride gas station in Eagle Butte, regarding an intoxicated person driving a gold Buick Regal with a small child in the car. An officer observed the vehicle swerve towards the center line and then correct its course, so he initiated a traffic stop on the vehicle. The driver was Brown, and the passenger was a 5-year old child.
The child was not wearing a seatbelt and was not otherwise secured in the vehicle. The officer conducted an investigation and arrested Brown for driving under the influence (DUI).
There were previous times when Brown drove while intoxicated with that same child in the car. On July 25, 2014, Brown was arrested for DUI, and the same 5-year-old child was in the vehicle with Brown at that time.
This case was investigated by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Brown was immediately turned over to the custody of the U.S. Marshals Service.
Downsville man pleads guilty to possessing firearms and ammunition after being convicted of a felonyRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced that a Downsville man pleaded guilty Tuesday to possessing firearms, ammunition and an unregistered silencer after he was previously convicted of a felony.
William David Futch, 44, of Downsville, La., pleaded guilty before U.S. Magistrate Judge Karen L. Hayes to one count of possession of firearms and ammunition by a convicted felon and one count of possession of an unregistered firearm silencer. The pleas will become final when accepted by U.S. District Judge Robert G. James. According to the guilty plea, Ouachita Parish Sheriff’s deputies responded to a complaint on April 11, 2014 that Futch was at his home firing shots. During this investigation, Futch was found in possession of a .45/.410 revolver, a 12 gauge shotgun, .a 22 caliber rifle with scope, a .22 caliber stainless rifle, a .22 caliber rifle with scope and bipod, a third .22 caliber rifle, a .223 caliber rifle, a 9 mm handgun, a .40 caliber handgun, ammunition, and a firearm silencer. He was previously convicted of a felony on three separate occasions.
Futch faces 10 years in prison, three years supervised release, forfeiture of the seized weapons and ammunition, and a $250,000 fine for each count. A sentencing date of June 20, 2016 was set.
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm and to promote firearm safety.
The ATF and the Ouachita Parish Sheriff’s Department conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie is prosecuting the case.
Dilkon-Area Man Sentenced to 51 Months in Prison for Attack on Elderly WomanRead the Press Release
PHOENIX – Earlier this week, Mark Benally, Jr., 29, of Indian Wells, Ariz., a member of the Navajo Nation, was sentenced by U.S. District Judge David G. Campbell to 51 months in prison. Benally previously pleaded guilty to assault with a dangerous weapon.
The investigation revealed that on May 17, 2015, Benally entered the home of his elderly female victim, also a member of the Navajo Nation, near Dilkon, Ariz. There, he struck her on the face, neck, and throat, causing visible injuries. The assault occurred on the Navajo Nation Reservation. Benally’s sentence was increased because his elderly victim was particularly vulnerable.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Police Department. The prosecution was handled by Alexander W. Samuels and Sharon K. Sexton, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-15-8168-PCT-DGC
RELEASE NUMBER: 2016-009_Benally
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Detroit One Collaboration Leads to Indictment of 12 Members of Local Chapter of National Violent GangRead the Press Release
The collaboration of local, state and federal law enforcement under the Detroit One program has led to the indictment and arrests of 12 members of the Crips street gang in northwest Detroit, United States Attorney Barbara L. McQuade announced today. Joining McQuade in the announcement was Special Agent in Charge Robin Shoemaker, Bureau of Alcohol, Tobacco, Firearms and Explosives, Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Division and Chief James Craig, Detroit Police Department. According to the indictment, the Detroit chapter of the “Rollin 60s Crips” is a branch of the national street gang founded in Los Angeles in the mid-1970s. Starting around 2006, a Detroit set of the Rollin 60s was created, and now has approximately 150 members. The indictment alleges that the Rollin 60s Detroit chapter is a violent organization responsible for assaults, robberies, carjackings and the unlawful possession and trafficking of firearms and narcotics in the Detroit metropolitan area during the last nine years. The gang uses violence to avenge acts of rival gang members, to intimidate witnesses and to advance members’ positions within the gang. Under the Detroit One initiative, and through the lead efforts of ATF’s Comprehensive Violence Reduction Partnership (“CVRP”) and the FBI’s Violent Crime Task Force, law enforcement has identified the leaders and key members of this organization, and charged 12 individuals by indictment in federal court. The CVRP includes representatives of the Detroit Police Department, Michigan State Police and Michigan Department of Corrections. Among those charged today are: • Jerome Hamilton 23, of Detroit, charged with Racketeer Influenced and Corrupt Organizations Act (“RICO”) conspiracy, assault with a dangerous weapon in aid of racketeering and using a firearm during a crime of violence; • Darriyon Mills, 24, of Detroit, charged with RICO conspiracy, assault with a dangerous weapon in aid of racketeering, carjacking and using a firearm during a crime of violence; • Jonathan Barber, 24, of Detroit, charged with RICO conspiracy, assault with a dangerous weapon in aid of racketeering, and carrying and using an explosive device to commit a felony; • Deaires Foster, 22, of Irondale, Alabama, charged with RICO conspiracy; • Martel Strong, 26, of Detroit, charged with RICO conspiracy; • Timothy Price, 26, of Detroit, charged with RICO conspiracy; • Sadeisha Johns, 30, of West Bloomfield, charged with RICO conspiracy; • Soumo Kennedy, 22, of Detroit, charged with RICO conspiracy, carjacking and using a firearm during a crime of violence; • Brandon Kennedy, 22, of Detroit, charged with RICO conspiracy; • Charles Anthony Smith, 31, of Windsor, Ontario, Canada, charged with RICO conspiracy; • Jermell Julius Coleman, 35, of Detroit, charged with RICO conspiracy; assault with a dangerous weapon in aid of racketeering, and using a firearm during a crime of violence; • William Steele, 34, of Charlotte, North Carolina, charged with RICO conspiracy. “The Detroit One partners are systematically dismantling the most violent street gangs in Detroit,” McQuade said. “Our effort is relentless. We believe that by removing the gang members who are committing violent crime, we can provide our neighborhoods with the public safety we should all expect and deserve.” “These individuals had no regard for the welfare of others,” said ATF Detroit Special Agent in Charge S. Robin Shoemaker. Their brazen display of violence carried out with assaults, robberies, carjacking, the unlawful possession and trafficking of firearms and narcotics in and around the Detroit metropolitan area is over. ATF, working closely with DPD, MSP, MDOC in our CVRP initiative, will see to it that these dangerous individuals and those who will take their place are removed from our streets. No longer will they threaten the safety of our citizens.” "As promised the Detroit One partners continue to disrupt and bring to an end the atrocities committed against our citizens by such a violent gang," said Chief James Craig. "The efficacy of this program is rooted in the belief that our citizens and neighborhoods deserve to be free of such heinous acts." "Today's announcement of the indictments and arrests of these twelve individuals demonstrates the continuing commitment of Detroit area Law Enforcement, as a united front, to substantially chip away at the ability of violent gangs to operate in our community," said David P. Gelios, Special Agent in Charge, FBI - Detroit Division. "The collective strength of the agencies involved in the Detroit One Program represents a formidable deterrent to violent gangs and criminal enterprises, and continues to result in the improvement in the quality of life in Detroit." By working collaboratively, local, state and federal law enforcement is striving to maximize its ability to identify and arrest the persons and groups initiating the violence in Detroit. This indictment is the latest in a string of charges from the United States Attorney’s Office and Wayne County Prosecutor’s Office during the last two years involving violent street gangs in the city of Detroit, including: • Nine members of the Bounty Hunter Bloods street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering; • Thirteen members of the Latin Counts street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering; • Fourteen members of the Phantom Outlaw Motorcycle Club / Vice Lords street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering; • Four members of the Vice Lords in state court for armed robbery and a Vice Lord leader charged under the federal street gang statute for his role in that armed robbery; • Three members of the Band Crew street gang charged under the Michigan gang felony statute for violent acts in furtherance of their gang activities and eight members of the Band crew for federal racketeering conspiracy and other violent acts in furtherance of racketeering; • Ten members of the Related Through Money street gang for federal racketeering conspiracy and other violent acts in furtherance of racketeering; and • Eight members of the Traveling Vice Lords for federal racketeering conspiracy and other violent acts in furtherance of racketeering. These charges are just some of the tangible and significant results of this joint effort. Most significantly, Detroit has seen a reduction in homicides every year since the Detroit One collaboration began in 2013, and a 24 percent total reduction since 2012. Seven of the twelve defendants were arrested today and will be making their initial appearance in federal court in Detroit this afternoon. An indictment is only a charge and is not evidence of guilt. A defendant is presumed not guilty unless convicted at trial by a jury.Colombian National Pleads Guilty to Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MARCELINO OLAVE-GRANJA, age 46, a native of Colombia, pled guilty today to a one-count indictment for illegal reentry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to court documents, OLAVE-GRANJA was previously removed from the United States on June 9, 1998. OLAVE-GRANJA was later found in the Eastern District of Louisiana on June 11, 2015 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
OLAVE-GRANJA faces a maximum term of imprisonment of two (2) years, as well as a fine of $250,000. United States District Court Judge Susie Morgan set sentencing for April 13, 2016.
U.S. Attorney Polite praised the work of United States Customs and Border Protection agents in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Burley Man Pleads Guilty to Possessing and Distributing Child PornographyRead the Press Release
POCATELLO – Danny Henderson, 42, of Burley, Idaho, pleaded guilty today in United States District Court to possessing and distributing child pornography, U.S. Attorney Wendy J. Olson announced. Henderson was indicted on October 27, 2015.
According to the plea agreement, on May 26, 2015, Henderson sent twenty-one sexually exploitative images of minors to another person via email. A subsequent search of his residence revealed several computers with numerous sexually exploitive images of minors. Henderson admitted that he possessed the images, knowing the images contained visual depictions of minors engaged in sexually explicit conduct, and also knowing that production of such visual depictions involved the use of minors in sexually explicit conduct.
The charge of possession of child pornography is punishable by up to twenty years in prison, up to five years of supervised release, and a fine of up to $250,000. The charge of distribution of child pornography is punishable by at least five and up to twenty years in prison, at least three and up to five years of supervised release, and a fine of up to $250,000.
Henderson is scheduled to be sentenced on May 20, 2016, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by Homeland Security Investigations.
Alaskan Physician Sentenced to 20 Years for Receiving and Distributing Child PornographyRead the Press Release
An Alaskan physician was sentenced to 20 years in prison and a lifetime term of supervised release for receiving and distributing child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Karen. L. Loeffler of the District of Alaska.
Dr. Greg Alan Salard, 54, of Wrangell, Alaska, was found guilty on July 28, 2015, after a six-day trial before Chief U.S. District Judge Timothy M. Burgess of the District of Alaska, who also sentenced Salard late yesterday and ordered him to pay a $25,000 fine.
According to evidence presented at trial, between June and October 2014, an Internet Protocol address linked to Salard was used to share known child sexual exploitation files and a laptop computer seized from Salard’s home contained peer to peer software that was used to share one of the images identified during the investigation. A forensic examination of the laptop uncovered evidence of hundreds of child sexual exploitation files, that multiple searches had been run on the laptop for a term associated with child sexual exploitation and that child sexual exploitation videos had been viewed on the computer. The evidence also revealed that a program designed to erase or “wipe” computer files had been used multiple times, including on the morning the search warrant was executed.
The FBI investigated the case, with assistance from the U.S. Forest Service; the Petersburg, Alaska, Police Department; the Wrangell Police Department; and the Juneau, Alaska, Police Department. Assistant U.S. Attorney Kyle Reardon of the District of Alaska and Trial Attorney Leslie Williams Fisher of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.
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 CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Tuesday 9 February 2016
Virginia Man Pleads Guilty to Traveling into the District of Columbia to Engage in Illicit Sexual Conduct with a MinorRead the Press Release
WASHINGTON – Wesley Breeden, 30, of Springfield, Va., pled guilty today to traveling interstate to engage in illicit sexual conduct with a minor, announced U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Breeden entered the guilty plea in the U.S. District Court for the District of Columbia. The Honorable Tanya S. Chutkan is to sentence him on April 25, 2016. Breeden faces a maximum sentence of 30 years in prison as well as a fine of $250,000.
According to the government's evidence, on July 30, 2015, Breeden contacted an undercover officer with the FBI's Child Exploitation Task Force, through a social network site. Over the course of the next several days, Breeden engaged in e-mail and text-messaging conversations with the undercover officer, whom the defendant believed was the father of an under-aged girl. During the course of these conversations, Breeden arranged with the undercover officer to meet for the purpose of engaging in sexual acts with the child.
On Aug. 4, 2015, Breeden traveled from Virginia to a pre-arranged meeting place in Washington, D.C. When he arrived, he was arrested. He has been in custody ever since.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the guilty plea, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Chief Lanier commended the work of the MPD Detectives and Special Agents of the FBI’s Child Exploitation Task Force. They also expressed appreciation for the efforts of Assistant U.S. Attorney Andrea L. Hertzfeld, who is prosecuting the case.
Virginia Beach Man Pleads Guilty to Distribution of Heroin Resulting in DeathRead the Press Release
NORFOLK, Va. – Gregory Hatt, 28, of Virginia Beach, pleaded guilty today to charges of conspiracy to distribute heroin, distribution of heroin resulting in death, distribution of heroin, possession with intent to distribute heroin and cocaine, and the possession of a firearm in furtherance of a drug trafficking crime.
“Hundreds of people die each year in the Commonwealth from heroin and opioid overdoses, and the Tidewater area leads the state in heroin overdose deaths, with 87 fatalities in the first nine months of 2015,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Make no mistake, arrests and criminal prosecutions will not alone solve this problem, but they are an important part of the solution. We are committed to working with the Virginia Office of the Attorney General and our partners across federal, state, and local law enforcement to combat the abuse of heroin and prescription opiates, which can have devastating effects on victims, their families, and our communities.”
“The Naval Criminal Investigative Service is committed to working with our law enforcement partners to bring to justice those who are driving this deadly heroin wave, taking lives and destroying families in the Tidewater area,” said Timothy Quick, Special Agent in Charge of the NCIS Norfolk Field Office. “NCIS will use our unique authorities, resources and capabilities in combatting this growing problem, to help protect Sailors, Marines, Department of the Navy civilians, DON families, and the communities in which we work and live.”
“This case is indicative of the popularity and prevalence of heroin in the Tidewater Area of Virginia, and the longstanding, effective partnerships between the Local, State, and Federal agencies in the region, tasked with these investigations,” said William Dean, Deputy Chief of Virginia Beach Police.
In a statement of facts filed with the plea agreement, Hatt allegedly sold heroin, cocaine, and other narcotics to local residents out of a house he rented in Virginia Beach from December 2014 through July 2015. On Dec. 26, 2014, Hatt distributed heroin at his house to Monica Beaudry, a 23-year-old Virginia Beach woman, who later overdosed. Hatt’s roommate implored him to call 911, but Hatt refused. After some delay, Hatt drove her to Chesapeake Regional Medical Center where she was pronounced dead. Hatt was aware of Beaudry’s death, but continued to distribute heroin from his residence and from other Virginia Beach locations through July 2015. On July 24, 2015, law enforcement agents with NCIS and Virginia Beach Police Department executed a search warrant on Hatt’s residence. The agents found over 36 grams of heroin, 17 grams of cocaine, various drug paraphernalia, and multiple firearms including a fully loaded sawed-off shotgun.
Hatt was charged via superseding indictment on Dec. 18, 2015, and faces a maximum penalty of life in prison when sentenced on May 19, 2016. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Timothy Quick, Special Agent in Charge of NCIS Norfolk; and William Dean, Deputy Chief of Virginia Beach Police, made the announcement after the plea was accepted by U.S. District Judge Raymond A. Jackson. Special Assistant U.S. Attorneys Alyssa Nichol and John Butler are prosecuting 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. 2:15-cr-140.
Two Men Receive Multi-Year Sentences for Brutal Beatings on Navajo ReservationRead the Press Release
PHOENIX – Yesterday, Ray Manygoats, 26, of Tuba City, Ariz., was sentenced by U.S. District Judge G. Murray Snow to 70 months’ imprisonment after Manygoats previously pleaded guilty to two counts of assault resulting in serious bodily injury. Judge Snow previously sentenced co-defendant, Lee Bighorse Reed, 23, also of Tuba City, Ariz., to 84 months’ imprisonment on the same charges. Both defendants and victims are members of the Navajo Nation.
The defendants admitted searching for and then beating the two unarmed and unsuspecting victims with a wooden dowel and a metal bar on the Navajo Nation Reservation. The assault resulted in permanent injury to the victims.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Christine Ducat Keller, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-15-08126-PCT-GMS
RELEASE NUMBER: 2016-008_Reed_Manygoats
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Two Drug Dealers Associated with 7th Street Murda Squad Plead to ConspiracyRead the Press Release
Memphis, TN – Two drug dealers associated with the 7th Street Murda Squad have pled guilty to conspiring to distribute several kilos of cocaine. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the pleas today.
According to the indictment and information presented in court, Joe Jones aka “Joe Cobbs” and “Joe Blow,” 37, and Tavious Swift aka “Tabo,” 36, both of Memphis, supplied and distributed cocaine in neighborhoods associated with the 7th Street Murda Squad.
The 7th Street Murda Squad is comprised of Gangster Disciples, Vice Lords, and other neighborhood gangs. The gang is known to have a reputation of violence, boasting members who have been convicted of violent offenses including aggravated assault, robbery, and murder. The criminal organization is primarily based in residential neighborhoods in the northern area of Memphis.
From at least 2012 to April 2015, both defendants conspired with each other, along with additional co-conspirators, to possess with the intent to distribute and did distribute more than five kilograms of cocaine in West Tennessee.Over the aforementioned period, Jones reportedly purchased several quarter-kilograms of cocaine from a co-conspirator on a weekly basis. Jones would distribute the cocaine to multiple people, and maintained stash houses where large quantities of cocaine were stored and packaged for distribution.
Swift purchased multiple ounces of cocaine at a time from Jones. He also purchased several ounces from other co-conspirators. In addition to distributing cocaine, Swift
maintained stash houses where large quantities of cocaine were stored and packaged for distribution.From 2012 to April 2015, the Drug Enforcement Administration (DEA), with support from state, local and federal law enforcement partners, conducted a long-term investigation into the 7th Street Murda Squad.
In April 2015, 16 alleged members and associates of the gang were indicted on federal drug charges. Jones and Swift were among the individuals indicted.
On Monday, February 8, 2016, both Jones and Swift pled guilty to one count of conspiracy to possess with the intent to distribute and to distribute more than 5 kilograms of cocaine.
The defendants are scheduled to be sentenced by U.S. District Judge Sheryl H. Lipman on Thursday, May 19, 2016.
Both defendants face a minimum sentence of 10 years and a maximum sentence of life in federal prison. They also face individual fines of up to $10,000,000.
The cases were investigated by the Memphis DEA Task Force.
Assistant U.S. Attorney John Fabian is prosecuting these cases on the government’s behalf.
Timeshare Telemarketing Fraudsters Plead Guilty to Federal ChargesRead the Press Release
DALLAS — Three defendants charged with offenses stemming from their operation of a telemarketing fraud scheme that targeted persons over age 55, have pleaded guilty to their respective roles in the scheme, announced John Parker, U.S. Attorney for the Northern District of Texas.
Today, one of the lead defendants, Max Chilson, 37, pleaded guilty before U.S. Magistrate Judge Paul D. Stickney to one count of conspiracy to commit mail fraud, wire fraud and telemarketing fraud. The maximum statutory penalty for that offense is 30 years in federal prison, since the conduct affected a financial institution, a $1 million fine and restitution. While not binding on the Court, the government recommends a sentence not to exceed 120 months in custody.
Last week, co-defendants Gunner Dell Jenkins, 36, and Victor Sanchez, 46, pleaded guilty to the same offense. According to their plea agreements, the government recommended a custody sentence not to exceed 60 months for Jenkins and 78 months for Sanchez. Those recommendations also are not binding upon the Court.
Chilson is a resident of Lake Mary, Florida; Jenkins is a resident of Orlando, Florida; and Sanchez is a resident of Hollywood, Florida. Chilson remains on bond; Jenkins and Sanchez are in custody. All three defendants currently are set to be sentenced on July 20, 2016. The remaining five defendants charged in the case are set for trial on August 8, 2016.
According to documents filed in the case, between Spring 2009 through at least October 2010, Chilson agreed with his coconspirators Jenkins, Sanchez, others charged in the indictment and other coconspirators not charged, to commit mail fraud, wire fraud and telemarketing fraud in connection with a telemarketing scheme that targeted and victimized persons over the age of 55 in the U.S. and in Canada. The government contends it could prove the defendants could reasonably foresee the following losses, incurred by 10 or more victims: Chilson - $7,060,092.00; Jenkins - $5,025,610.00; and Sanchez - $12,755,324.37.
As part of the elaborate telemarketing scheme, the conspirators made unsolicited phone calls to owners of resort timeshare properties to induce them into paying fees associated with the bogus sale of their property. They misrepresented the existence of a buyer for their timeshare and solicited money from them to facilitate the sale. They solicited the timeshare owners to enter into agreements to sell their timeshares and pay for alleged “closing costs” with their credit cards, personal checks, bank checks, or through electronic check conversion.
As part of the conspiracy, the defendants also instituted a bogus telephone verification process to make follow-up phone calls to the targeted timeshare owners to give them the false impression they were dealing with entities that would protect their money and property, and to trick them into making recorded statements that no sale had been promised by the telemarketers.
Further, the defendants falsely represented their companies were global leaders in connecting timeshares to buyers, sellers, and renters; their companies were full-service timeshare resale companies and vacation rental agencies with more than 30 years of experience in timeshares; bona fide buyers were interested in purchasing the owner’s properties and offers exceeded the original amount paid for the properties; buyers had already paid money into an escrow account, been approved by a lender, and were ready to close; the timeshare owner would receive all the funds from the purchase within 45 to 90 days; and that the timeshare owners must pay a one-time fee to cover the title search and other closing costs before the sale could close.
After obtaining money from the timeshare owners and diverting it for their own purposes, the defendants, in order to lull the timeshare owners and cause them to not question, investigate or report the status of the transaction, made additional false and fraudulent statements to the timeshare owners, including advising them they were protected under established telemarketing laws and could cancel their contract and request a refund by mailing written notification within seven days of receiving the contract and advising them they could phone or send correspondence to Resorts Condos Management in Irving, Texas, — which, unbeknownst to the owners was in fact, a boiler room.
Information for Timeshare Owners Affected by the Scheme:
1. If you believe you were the victim of criminal fraud committed by any of the defendants, possibly using the below company names, please go to www.postalinspectorsurvey.com/haffar and complete the questionnaire:
Resorts Condos Management;
Timeshare Goldline;
JAMS Management;
Vision Ventures Inc.;
Timeshare Services Today;
Vacation Equity Marketing, Inc.;
Maximum Properties;
Universal Processing Services of Wisconsin, LLC, also known as Newtek Merchant Solutions;
HES Merchant Services, Inc.;
Interval Equity Marketing, Inc.;
Vacations And Resorts; and
Visionary Investments, LLC.
The information you provide through the questionnaire regarding your experience may be helpful in the criminal investigation and prosecution of this case. A law enforcement agent may contact you with additional questions or to request documents you may have received or submitted during your dealings with these businesses. To access the questionnaire, please go to www.postalinspectorsurvey.com/haffar and input the user name timeshare and the password uspis.
Please note that submitting the questionnaire is NOT a substitute for consulting with your own attorney to determine what actions and remedies are available to you through civil litigation or other federal or state agencies.
2. You may access the websites for the U.S. Attorney’s Office for the Northern District of Texas http://www.justice.gov/usao/txn/ to obtain more information on the case or the court proceedings.
3. If you have any questions related to this matter that are not addressed at the above website, you may contact the government at the e-mail address [email protected].
The U.S. Postal Inspection Service is investigating this fraud. The Orlando Police Department provided substantial assistance in the investigation and apprehension of the defendants. Assistant U.S. Attorney C.S. Heath is prosecuting.
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Springfield Man Sentenced to Ten Years in Prison for Child Exploitation ChargeRead the Press Release
BOSTON – Daniel Lorenz, 45, was sentenced today in U.S. District Court in Springfield to 10 years in prison. In November 2015, Lorenz pleaded guilty before U.S. District Court Judge William G. Young to one count of possession of material involving the sexual exploitation of minors.
On March 13, 2014, federal agents executed a search warrant at Lorenz’s Springfield residence. Pursuant to the search warrant, agents seized Lorenz’s personal computer and found 800 videos of child pornography, including many depicting the rape, bondage, and sexual torture of girls as young as three years old.
At the time of the search, Lorenz d told agents that he had a large quantity of child pornography, including image and video files, on his computer and that most of the files depicted girls between the ages of eight and fourteen. Lorenz admitted that he had collected child pornography for at least three or four years and distributed or received child pornography three times per week using e-mail accounts. Lorenz also admitted that he created and utilized multiple social media accounts, including various Facebook and Google+ profiles in the name and image of a minor female, in order to make contact with girls to obtain child pornography and to engage in sexually explicit conversations, which he found “sexually and emotionally exciting.”
At sentencing, Judge Young told the defendant, “you were active in trying to turn this fantasy into reality,” and stated that the defendant’s misconduct “reveals to the Court a most dangerous situation.”
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistance was also provided by the Springfield Police Department. The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.
Southern Texas Man Pleads Guilty to Drug Conspiracy ChargeRead the Press Release
Sigifredo Bazan, a resident of the McAllen, Texas area, pled guilty in federal district court this afternoon to conspiracy to distribute and possess with intent to distribute 5 kilograms or more of a mixture or substance containing a detectable amount of cocaine, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today. Bazan was detained pending sentencing, which is scheduled for June 7, 2016, at 10:30 A.M. before the Honorable Nancy J. Rosenstengel, United States District Judge. Bazan faces a mandatory minimum sentence of ten years, up to a term of life in federal prison, followed by a minimum of five years on supervised release. Bazan also faces a fine of up to $10,000,000 and a special assessment fee of $100.
Evidence in support of this prosecution was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Agencies participating in this case include the Drug Enforcement Administration and the Internal Revenue Service, Criminal Investigations. This case is being prosecuted by Assistant United States Attorney Monica A. Stump.
Southbridge Man Sentenced for being a Felon in Possession of Firearms and AmmunitionRead the Press Release
BOSTON – A Southbridge man was sentenced today in U.S. District court in Worcester for being a felon in possession of firearms and ammunition.
Mark McForbes, aka “S-Dot,” 33, was sentenced to 15 years in prison and three years of supervised release. In July 2015, McForbes was convicted of being a felon in possession of firearms and ammunition following an eight-day jury trial.
On Aug. 29, 2014, McForbes negotiated the sale of firearms and ammunition in Southbridge to a cooperating witness. McForbes told the cooperating witness that the firearms and ammunition were located in Worcester, where they arranged to meet for the sale. Later that day, McForbes sold two loaded 9mm firearms to the cooperating witness in the basement of a Worcester residence. One of the firearms had been stolen, and the other had an obliterated serial number. McForbes qualifies under federal law as an armed career criminal based upon his prior criminal convictions.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and Southbridge Police Chief Shane Woodson, made the announcement today. The Federal Bureau of Investigation, the U.S. Marshals Service and the Worcester Police Department also assisted with the investigation. The case was prosecuted by Assistant U.S. Attorneys Greg A. Friedholm and Michelle L. Dineen Jerrett of Ortiz’s Worcester Branch Office.
Seventeen Charged in Manhattan Federal Court with Narcotics-Related Offenses, Including the Distribution of Cocaine, Marijuana, and OxycodoneRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, James J. Hunt, Special Agent in Charge of the U.S. Drug Enforcement Administration New York Division (“DEA”), and Delano A. Reid, Special Agent in Charge of the New York Division of the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), announced today the unsealing of an Indictment in Manhattan federal court charging 17 individuals with narcotics-related offenses. Fifteen of those charged were arrested this morning in the Southern District of New York and will be presented before United States Magistrate Judge Frank Maas later today. One defendant was arrested in the District of Maine this morning and will be presented there later today.
According to the allegations in the Indictment:[1]
Between late 2012 and December 2015, MARIO HERRERA, a/k/a “Mo,” JOHN MIRANDA, JOEL CASADO, a/k/a “Cojo,” CESAR DOMINGUEZ, JOEL QUEZADA, a/k/a “J-Buff,” JONATHAN MORALES, a/k/a “Blood,” and OLIVEROS VILLAREAL conspired to distribute and possess with the intent to distribute five kilograms and more of cocaine and a quantity of marijuana. This charge carries a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison. The Indictment also charges that between late 2012 and December 2015, HERRERA, MIRANDA, CASADO, DOMINGUEZ, QUEZADA, THOMAS ABREU, a/k/a “TJ,” JONATHAN GOLDEN, a/k/a “Johnny,” CYNTHIA URRA, DEBRA MONCHE, EZEQUIL NIN, a/k/a “Seki,” ANDREW SEIBERT, a/k/a “Blue,” CARLOS ALVAREZ-GONZALEZ, a/k/a “Pops,” KEITH WOODARDS, ALEXANDER CARNO, and KEVIN SKEETE conspired to distribute and possess with the intent to distribute oxycodone, a Schedule II controlled substance. This charge carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Bharara praised the outstanding investigative work of the DEA and the ATF. He also thanked the New York City Police Department, the U.S. Marshals Service, the Putnam County Sheriff’s Department, and the United States Secret Service for their assistance throughout the investigation.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Gina Castellano, Jordan Estes, and Jason A. Richman are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Rochester Man Pleads Guilty ToFirearms and Heroin Possession ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr., announced today that Timothy C. Fitzpatrick, 39, of Rochester, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to possession of heroin with intent to distribute and possession of a firearm and ammunition while being a previously convicted felon. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.Assistant U.S. Attorney Charles E. Moynihan, who is handling the case, stated that on April 23, 2015, law enforcement officers from the Greater Rochester Area Narcotics Enforcement Team executed a search warrant at 127 Evergreen Street, Apartment #2, in the Rochester. Upon entry, officers detained Fitzpatrick inside of the location and searched it. They seized a loaded Raven Arms .25 caliber semi-automatic pistol, along with heroin and cocaine packaged for sale. Officers also seized drug paraphernalia. Fitzpatrick also had United States currency in his front pants pocket.
The investigation revealed that Fitzpatrick had previously been convicted of Criminal Possession of a Controlled Substance in the Third Degree in 2005, Criminal Sale of a Controlled Substance in the Fifth Degree, in 200, and Attempted Criminal Sale of a Controlled Substance in the Third Degree in 1999. As a result, the defendant is unable to lawfully possess a firearm.
The plea is the culmination of an investigation on the part the Greater Rochester Area Narcotics Enforcement Team composed of law enforcement personnel from the Bureau of Alcohol, Tobacco, Firearms and Explosives under the direction of Special Agent in Charge Delano A. Reid, New York Field Office and the Monroe County Sheriff’s Office, under the direction of Monroe County Sheriff Patrick O’Flynn.
Sentencing is scheduled for May 10, 2016, at 3:30 p.m. before Judge Wolford.
Registered Sex Offender Charged with Online Enticement of A Minor Is Sentenced to More Than 19 YearsRead the Press Release
STATESVILLE, N.C. – A registered sex offender was sentenced today by U.S. District Judge Richard Voorhees to serve 235 months in a federal prison on charges of online enticement of a minor, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Judge Voorhees also ordered Samuel Henry Vinci, Jr., 55, of Granite Falls, N.C. to continue to register as a sex offender and to serve the rest of his life under court supervision after he is released from prison.
U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Sheriff Alan C. Jones, of the Caldwell County Sheriff’s Office.
According to court records, Vinci was convicted in 1998 of two counts of second degree rape and served 11 years in prison. After serving his prison term, Vinci was required to register as a sex offender and to inform law enforcement about any online identifiers he used, including e-mail addresses.
Court records show that in September 2014, the Caldwell County Sheriff’s Office became aware that Vinci was operating a social media webpage under a fictitious name. According to court records, using his fake social media identity, Vinci befriended an individual he believed to be a 15 year old female, but unknowingly made contact with law enforcement instead. Court records show that over the course of multiple online exchanges, Vinci asked the individual he thought was a minor to engage in sexual acts. During those exchanges, Vinci also repeatedly tried to verify the minor’s identity, sent her photos of himself, and gave her instructions on how to delete evidence of their conversations to avoid detection. According to court records, eventually Vinci asked the individual he believed to be a minor female to meet with him alone. Law enforcement arrested Vinci in when he drove to the agreed location to meet the 15 year old girl.
Vinci pleaded guilty in October 2015 to one count of online enticement of a minor and is currently in federal custody. He will be transferred to custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation was handled by the FBI and the Caldwell County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Cortney Randall of the U.S. Attorney’s Office in Charlotte.
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 (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Rapid City Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Kenneth Bowker, Jr., age 20, was indicted on January 21, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 5, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, at least 5 years and up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between August 4, 2015, and September 15, 2015, Bowker, who is required to register under the Sex Offender Registration and Notification Act, and who is a sex offender by reason of a conviction under federal law, knowingly failed to register and update a registration.
The charge is merely an accusation and Bowker is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Bowker was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Queen City Drywaller Jailed for Under-The-Table Payroll SchemeRead the Press Release
CONCORD – United States Attorney Emily Gray Rice announced that a New Hampshire drywall contractor was sentenced today to federal prison for an under-the-table payroll scheme that cost the U.S. Treasury more than $750,000. Senior United States District Judge Steven A. McAuliffe sentenced Cruz E. Galvan, age 39, of Manchester, New Hampshire, to eighteen months in federal prison and ordered him to pay restitution to the U.S. Treasury.
Galvan previously pleaded guilty to one count of Federal Employment Tax Evasion based upon his admitted scheme to dodge federal employment taxes on wages he paid to employees of his Manchester, New Hampshire dry wall business, Four Star Drywall, LLC. During his plea hearing, Galvan admitted that from April 2010 until December 2012, he paid the employees of Four Star Drywall with vouchers instead of with checks. He further admitted that he instructed those employees to present the vouchers to a local check cashing business to which he had previously provided funds and instructions to pay the vouchers upon presentment in cash. Galvan acknowledged that he did not report to the Internal Revenue Service the wages he paid in that fashion, thereby evading federal income tax withholding and Social Security, Medicare and federal unemployment taxes.
In addition to the eighteen-month prison term, Judge McAuliffe ordered Galvan to pay $786,553 in restitution to the Internal Revenue Service, $100,000 of which Galvan had paid in anticipation of the restitution order several weeks before today’s sentencing hearing. Immigration proceedings have been commenced to remove Galvan, an undocumented alien, from the United States after he serves his sentence.
The investigation of Galvan was led by the Manchester, New Hampshire offices of the Internal Revenue Service, the Department of Homeland Security and the Department of Labor, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Bill Morse.
Punta Gorda Man Sentenced to Eight Years for Distributing Child PornographyRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Kurtis Johnson (26, Punta Gorda) to eight years in federal prison for distributing child pornography. The Court also ordered him to forfeit his laptop and three external hard drives that had been used to commit the offense. Johnson pleaded guilty on November 5, 2015.
According to court documents, in October 2014, an FBI task force agent was able to download numerous images of child pornography from Johnson’s computer using a file sharing program. On October 30, 2014, a search warrant was executed at Johnson’s residence. During an interview with agents, Johnson admitted to downloading and possessing child pornography on his computer. Subsequent forensic analyses of the computer media seized from the home revealed more than 3,500 images, and over 800 videos depicting child pornography.
This case was investigated by the FBI Child Exploitation Task Force, which includes the Lee County Sheriff’s Office and the Charlotte County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Yolande G. Viacava.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Primary Day Hotlines to Be Operated by the United States Attorney’s Office and the New Hampshire Attorney General’s OfficeRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice and New Hampshire Attorney General Joseph Foster announced today that both the United States Attorney's Office and the New Hampshire Attorney General’s Office will staff voting inquiry and complaint lines at their respective offices throughout the day and evening on Primary Day, February 9, 2016.
The New Hampshire Attorney General’s toll free election line phone number is:
1-866-868-3703
(1-866-VOTER03)This phone line will be staffed from 7 am to 8 pm on Primary Day. Inquiries and complaints may also be submitted via e-mail at [email protected]. Information regarding voting rights may be obtained by visiting the New Hampshire Attorney General's Office website at http://doj.nh.gov/site-map/voters.htm.
The United States Attorney’s election line phone number is:
(603) 230-2503
This phone line will also be staffed from 7 am to 8 pm on Primary Day. Inquiries and complaints may also be submitted through the United States Attorney’s Web site at www.usdoj.gov/usao/nh by clicking on the “e-mail us” link. A Federal Election Fraud Fact Sheet that explains what triggers federal criminal jurisdiction in connection with elections and voting rights can also be found on the United States Attorney’s Web site.
The state and federal election lines are available to all individuals who may have questions regarding their voting rights or who want to file complaints with the New Hampshire Attorney General or the United States Attorney regarding their right to vote or any other election law violation.
For further information, please contact Assistant Attorney General Stephen LaBonte at the New Hampshire Attorney General’s office at (603) 271-3650, or Assistant United States Attorney Mark S. Zuckerman at (603) 230-2579.
Pittsburg Resident Pleads Guilty to Stolen Identity Tax FraudRead the Press Release
OAKLAND – Michael Johnson pleaded guilty to conspiracy to file false claims and filing false claims, announced Acting United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf.
In a plea agreement filed late yesterday, Johnson admitted that he, or his co-conspirators, used client files stolen from an Antioch, Calif. tax preparation service to file false tax returns. According to the plea agreement, Johnson acknowledged that he devised a scheme to file false federal income tax returns that contained materially false representations including fake income and fraudulently-claimed tax refunds of at least $375,105. In addition, Johnson admitted that he and his co-conspirators requested that the fraudulent tax refunds be loaded onto prepaid debit cards and sent to the addresses listed on the tax returns.
Johnson was indicted on March 26, 2015. He was charged with conspiracy to file false claims, in violation of 18 U.S.C. § 286; and five counts each of filing false claims, in violation of 18 U.S.C. § 287; theft of public money, in violation of 18 U.S.C. § 641; effecting fraudulent transactions with access device, in violation of 18 U.S.C. § 1029(a)(5); wire fraud, in violation of 18 U.S.C. § 1343; and aggravated identity theft, in violation of 18 U.S.C. § 1028A. Under the plea agreement, Johnson pleaded guilty to the conspiracy charge and three counts of filing false claims. Sentencing currently is scheduled for August 22, 2016, before the Honorable Haywood S. Gilliam, U.S. District Judge.
Johnson faces a maximum sentence of ten years in prison and a $250,000 fine for the conspiracy charge. Johnson also faces and a maximum sentence of five years in prison and a $250,000 fine for each of the three counts of filing false claims. Additional terms of supervised release and other fines may apply. However, any sentence following this conviction will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Thomas Newman and Jose Olivera are prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Omaha Man Sentenced to Life in Prison as a “Three Strikes” OffenderRead the Press Release
United States Attorney Deborah R. Gilg announced that Quantal Blake, age 29, of Omaha, Nebraska, was sentenced to life in prison yesterday by the Honorable Laurie Smith Camp. Blake was convicted by a federal jury on May 28, 2015, of two counts of bank robbery and one count of attempted bank robbery.
On February 4, 2014, the Premier Bank located at 352 North 114th Street, Omaha, Nebraska, was robbed at approximately 11:15 a.m., when two men with partially covered faces ran in and demanded money. They took money from the bank and fled the area. A vehicle they had stolen the night before and used in the robbery was recovered, abandoned, a few blocks away. On March 20, 2014, at approximately 8:40 a.m., two men with masks drove up to the front door of the same bank. The passenger got out of a vehicle that had been stolen the day before and attempted to enter the bank. The lobby was not yet open. They fled the area, striking another vehicle in the process, and abandoned the vehicle a short distance away. Later that same day, at approximately 1:17 p.m., two males entered the First Westroads Bank located at 612 North 98th Street. The men had their faces obscured and one had his hand under a coat as if he had a weapon. They got money from the bank, fled the area, and abandoned the vehicle they used near 96th and Western.
Through the efforts of the Omaha Police Department and the Federal Bureau of Investigation, investigators developed Blake as a suspect. Investigators determined that Blake was on parole from a prior robbery offense. As part of his parole, he was required to wear an electronic monitoring device on his ankle. Data from the device was analyzed and Blake was tracked by time and location to the places where each robbery occurred, to the locations where both vehicles had been stolen and to the locations where all three vehicles had been abandoned after the crimes.
Blake had two previous violent felony convictions for robbery and associated weapons charges. Because a firearm was used during the First Westroads bank robbery, Blake faced a mandatory life sentence as a Three Strikes offender. He received 17½ years each for the First Premier bank robbery and attempted robbery. Those sentences were ordered to be served at the same time as each other and at the same time as the life sentence. He was also ordered to pay restitution of $18,290 to First Premier Bank and $13,085 to First Westroads Bank.
U.S. Attorney Deborah Gilg praised the efforts of law enforcement in developing a suspect and tracking him down. She further commented on the courageousness of the tellers during the robberies themselves and at the trial. “This is one more example of members of the Omaha community coming forward and saying enough is enough.” Added James Langenberg, Acting Special Agent in Charge of the FBI, “The severity of the sentence imposed is a direct reflection of the law enforcement coordination between the Omaha Police Department and the FBI.”
The case was investigated by the Federal Bureau of Investigation and Omaha Police Department.
O.C. Attorney Sentenced to Prison for Obstructing Justice by Helping Witness in ‘Chinese Birthing House’ Investigation Try to Flee the U.S.Read the Press Release
SANTA ANA, California – An Irvine-based immigration attorney has been sentenced to 21 months in federal prison for obstructing justice in relation to a scheme in which he agreed to help a Chinese national flee from the United States after the woman had been designated as a “material witness” in a criminal investigation into “birthing houses” operating in Southern California.
Ken Zhiyi Liang, 39, of Irvine, was sentenced yesterday afternoon by United States District Judge Andrew J. Guildford.
Liang was found guilty in September of conspiring to obstruct justice, obstructing justice, and tampering with a witness, who is referred to in court papers as “D.L.”
Liang “was caught on hours of video and audio recordings selling and marketing his abilities to D.L. to help smuggle her out of the United States in violation of court orders, in exchange for a $6,000 fee to himself and a $1,500 to $3,000 fee for three co-conspirators that would assist him,” prosecutors wrote in a sentencing brief filed with the court.
The Chinese national had been designated as a material witness in the federal investigation, meaning she was subject to a court order preventing her from leaving the United States without authorization from the government or court. Liang had represented the witness in the matter for about a month until the court removed him as attorney of record, over his objections, in April 2015.
"As an attorney and officer of the court, Mr. Liang owed a heightened duty to respect and follow court orders," said United States Attorney Eileen M. Decker. "Instead Mr. Liang chose to violate those court orders, and induced others to violate court orders, for his own personal profit. Today's sentence is a reminder of the importance of court orders and protecting the integrity of federal investigations."
The federal investigation, which became known when authorities executed dozens of search warrants nearly a year ago, focuses on so-called birthing houses that “provided services to Chinese nationals, who travelled into the United States from China, for the purpose of giving birth to children so that the children could obtain United States citizenship,” according to court documents.
Unbeknownst to Liang at the time, D.L. was cooperating with federal agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, who were monitoring conversations between Liang and the witness. Liang was arrested on May 15 by federal authorities as he was walking with the witness towards his car, supposedly to begin a trip to a coffee shop in Corona, where he was going to introduce D.L. to the co-conspirators. After his arrest, Liang led agents back to his office, where he returned the $6,000 he had accepted from the witness. Liang has remained in custody since his arrest last spring.
According to court documents, Liang provided assistance to two other material witnesses who fled to China, and to another material witness who was intercepted at Los Angeles International Airport on April 15.
The investigation into the birthing houses is being conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and IRS – Criminal Investigation.
Nurse Convicted for Role in Multimillion-Dollar Hospice Health Care FraudRead the Press Release
A federal jury convicted a registered nurse who took part in a multimillion-dollar fraud on Medicare that involved hospice care, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania.
Patricia McGill, 68, of Philadelphia, was found guilty yesterday of four counts of health care fraud. U.S. District Court Judge Eduardo C. Robreno of the Eastern District of Pennsylvania set sentencing for May 24, 2016.
The evidence at trial showed that between 2005 and 2008, McGill was the director of professional services for Home Care Hospice (HCH), a for-profit business that provided hospice services for patients at nursing homes, hospitals and private residences. McGill authorized and supervised the admission of inappropriate and ineligible patients for hospice services, which contributed to HCH submitting millions of dollars in fraudulent claims to Medicare.
HCH billed Medicare for approximately $9,328,000 in hospice services that were allegedly provided by HCH nurses and health aides for patients at nursing homes, hospitals and private residences. However, the government’s evidence established that many HCH patients did not meet the Medicare criteria for hospice care and that HCH billed Medicare for hospice care that was not provided to the patients.
The FBI and the Department of Health and Human Services Office of Inspector General investigated the case. Trial Attorney Marty Woelfle of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Frank Labor of the Eastern District of Pennsylvania are prosecuting the case.
Nurse Convicted for Role in Multi-Million Dollar Hospice Health Care FraudRead the Press Release
PHILADELPHIA – A federal jury, yesterday, returned guilty verdicts against Patricia McGill, 68, of Philadelphia, a registered nurse who took part in a multi-million dollar fraud on Medicare that involved hospice care. The jury found McGill guilty of four counts of health care fraud. The jury acquitted the defendant of a conspiracy charge and nine counts of health care fraud. U.S. District Court Judge Eduardo C. Robreno scheduled a sentencing hearing for May 24, 2016. McGill faces a potential advisory sentencing guideline range of 33 to 41 months in prison, a possible fine, and a $400 special assessment.
As the Director of Professional Services for Home Care Hospice (“HCH”), between 2005 and 2008, McGill authorized and supervised the admission of inappropriate and ineligible patients for hospice services, resulting in approximately $9.32 million in fraudulent claims. HCH, co-owned by Matthew Kolodesh and Alex Pugman, who were convicted separately, was a for-profit business located at 1810 Grant Avenue, and later 2801 Grant Avenue, in Philadelphia. HCH billed Medicare for hospice services allegedly provided by HCH nurses and health aides for patients at nursing homes, hospitals, and private residences. However, the government’s evidence established that many HCH patients did not meet the Medicare criteria for hospice care, and that HCH billed Medicare for hospice care that was not provided to the patients.
The case was investigated by the FBI and the Department of Health and Human Services Office of Inspector General. It is being prosecuted by Assistant United States Attorney Frank Labor and Trial Attorney Marty Woelfle of the Organized Crime and Gang Section in the Justice Department's Criminal Division.
My View: Honor Those Who Run Toward DangerRead the Press Release
Law enforcement officers throughout the state serve and protect our communities. Where these professionals see someone in need, they act.
Utah police officers have made our community a better place in ways both large and small. We have seen many examples of their commitment to the communities they serve. A Unified police officer stopped to change a flat tire for a woman on Redwood Road to ensure she got home safely. One observant Orem police officer surprised a struggling single mother by coordinating the delivery of donated appliances and home essentials for her young family. A St. George police officer saved two lives in one day, by performing CPR on a critically ill middle school student and later by removing an obstruction from the airway of a 9-day-old infant.
These professionals put their own lives at risk to keep our communities safe. We have just experienced the tragic loss of Officer Doug Barney as he was working to protect the community he served. Other examples often go unnoticed. A Sandy police officer pulled a woman from a burning car moments before the car was engulfed in flames. A West Jordan police officer turned himself into a human shield while rescuing three children and their mother from an armed attacker. Another brave police officer came to the rescue of two adult sisters under deadly attack from a home intruder in Salt Lake City. Not long ago, a police officer dared to venture onto cracking ice to save a woman who had plunged into Mantua Reservoir.
Whether the call for help requires a dramatic rescue or a simple act of kindness, officers consistently place the needs of the community above their own. These men and women suit up knowing that many with whom they come in contact during their shift will not appreciate their efforts. They know that split-second decisions may be second-guessed and scrutinized for months and years to come. They leave home with no promise of a safe return to their families.
The overwhelming majority of these officers exercise sound judgment throughout their shifts each day. They enforce duly enacted laws with fidelity and soberness. These men and women also understand that they are accountable to those whom they serve. Our communities expect, and deserve, the very best from the law enforcement officers trusted with the power and authority to enforce the law.
Public discourse regarding how law enforcement officers exercise that authority, while sometimes uncomfortable, is a hallmark of what makes our nation and judicial system great. When an officer does not live up to society’s high expectations, fair criticism often leads to positive improvements for more effective policing. When an officer acts outside the bounds of the law, our justice system is ready and able to address such transgressions. The rule of law ensures that no one is above scrutiny.
In addressing those isolated incidents where police power is abused, we must not forget that our law enforcement professionals are a force for good in our communities. It is misguided to impugn any group based on wrongs committed by a few aberrant members, but it is dangerous to apply that proposition toward all law enforcement.
Utah communities have rallied around their police officers to express gratitude for their willingness to respond to the most dangerous and heart-wrenching episodes of our lives. They meet those expectations with courage and fortitude unknown to many of us.
So hats off to our law enforcement professionals – the few who run toward the danger before it reaches the rest of us.
Mother and Son Indicted for Conspiracy to Defraud the IRSRead the Press Release
DENVER – Jaquon Mucsarney, age 35, of Aurora, appeared yesterday before a U.S. Magistrate Judge for his initial appearance, where he was advised of his rights and the charges of defrauding the IRS pending against him, announced United States Attorney John Walsh, IRS Criminal Investigation Special Agent in Charge Stephen Boyd and Social Security Administration Office of Inspection General Special Agent in Charge Wilbert M Craig. MucSarney is one of three defendants indicted and arrested for defrauding the IRS and mail fraud. Last week, Schosche Mucsarney, age 54, of Aurora, appeared on related charges .
Jason Mucsarney, Schosche Mucsarney and co-conspirator, Sherry Charleston where indicted by a Federal Grand Jury in Denver on January 7, 2016. The indictment remained sealed until their arrests. Sherry Charleston and Schosche Mucsarney are free on a bond.
Beginning in January 2011 and continuing through December 2015, Jaquon, Schosche and Sherry as well as others known and unknown to the grand jury devised a scheme to defraud the Internal Revenue Service. As part of the scheme, Jaquon filed tax returns with the IRS which contained false statements and information. At times, he was assisted by his mother, Schosche when making such filings.
As part of the scheme, Jaquon and Schosche caused or attempted to cause the IRS to issue tax refund checks from the United States Treasury based on the false information provided in various tax returns. Jaquon submitted or caused the submission of online applications to the IRS which resulted in the IRS issuing an employer identification number (“EIN”) shell corporations and used stolen identities and social security numbers (“SSN”) of actual persons when providing information to the IRS to obtain an EIN for one of his shell corporations.
Jaquon worked with Schosche and Sherry to receive tax refund checks issued by the IRS. Jaquon directed the IRS to send the refund checks to mailing addresses which he controlled, or to addresses connected to Schosche and Sherry. Jaquon and Schosche submitted approximately 100 tax returns containing false information to the IRS which claimed refunds totaling in excess of $2,000,000. Ultimately, the IRS paid out approximately $300,000 in refunds based on some of the returns.
To further obstruct and impede the IRS, on February 12, 2015, Sherry provided false and misleading information to an IRS Special Agent investigating Jaquon’s activities; on June 22, 2015, Sherry with Jaquon’s advice and counsel intentionally failed to appear for testimony before a Federal Grand Jury.
Jaquon was charged with; 18 counts of mail fraud, one count of conspiracy to defraud the government, 19 counts of false claims, 12 counts of aggravated identity theft and one count of obstruction of justice. Sherry was charged with; 4 counts of mail fraud, one count of conspiracy to defraud the government, 7 counts of false claims, one count of aggravated identity theft and one count of obstruction of justice. Schosche was charged with; 6 counts of mail fraud, one count of conspiracy to defraud the government, and three counts of false claims.
Mail fraud carries a penalty of not more than 20 years in federal prison, and a fine of up to $250,000 per count. Conspiracy to defraud the government carries a penalty of not more than 10 years in federal prison, and a fine of up to $250,000 per count. False claims carry a penalty of not more than 5 years in federal prison, and a fine of up to $250,000 per count. Aggravated Identity Theft carries a penalty of 2 years imprisonment minimum consecutive to underlying felony and a fine of up to $250,000 per count. Obstruction of justice carries a penalty of not more than 3 years in federal prison, and a fine of up to $250,000 per count.
This case was investigated by the Internal Revenue Service – Criminal Investigation and Social Security Administration, Office of Inspection General. This case is being prosecuted by Assistant U.S. Tim Neff.
The charges contained in the indictment are allegations, and the defendant is presumed innocent until proven guilty.
Minkler announces sentencing in Indianapolis land bank fraudRead the Press Release
INDIANAPOLIS – United States Attorney Josh Minkler announced today the sentencing of the former assistant director of Metropolitan Development for the City of Indianapolis. Reginald Walton, 32, was sentenced to nine years’ imprisonment by U.S. District Judge William T. Lawrence. The Court also fined Walton $250,000.
“The citizens of Indianapolis deserve better from their public officials,” said Minkler. “Betraying the public’s trust and wasting tax dollars is a crime we take very seriously. Those who chose to ignore federal law will be held accountable, just as this sentence holds Mr. Walton accountable.”
The purpose of the Indianapolis Land Bank is to acquire abandoned and tax delinquent properties in Indianapolis and return them to productive and economically viable use. Properties are made available for sale to non-profit and for-profit real estate developers. For-profit investors interested in purchasing real estate from the Land Bank must pay at least the appraised value of the property. Non-profit purchasers, however, may bypass the auction process, purchasing real estate for a price between $1,000 and $2,500 per parcel, regardless of the appraised value of the property.
Walton and his co-defendant David Johnson accepted bribes and “kick-backs” to facilitate fraudulent property sales to non-profit entities that would then sell the property to for-profit businesses. After these “pass-through” transactions had taken place, Walton and Johnson would receive kickback payments from the non-profit organizations from the proceeds of the property sales.
On March 19, 2015, following a two week jury trial in United States District Court, Walton and Johnson were found guilty of multiple fraud and bribery charges based on their involvement in the fraudulent scheme.
This case was prosecuted by Drug and Violent Crime Chief Bradley A. Blackington and Assistant United States Attorney Cynthia J. Ridgeway.
Minas Litos, Adrian Tartareanu and Daniela Tartareanu Were Sentenced for Conspiracy and Wire FraudRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced that Minas Litos, 50; Adrian Tartareanu, 45; and Daniela Tartareanu, 44; all of Saint John, Indiana were sentenced in federal court by Chief Judge Philip Simon today for conspiracy and wire fraud.
Litos entered a plea of guilty to one count of conspiracy and sixteen counts of wire fraud and was sentenced to 18 months imprisonment. The Court will determine whether restitution should be imposed at a later date.
Adrian and Daniela Tartareanu were found guilty by a jury of one count of conspiracy and sixteen counts of wire fraud. Adrian Tartareanu was sentenced to 36 months imprisonment. His wife Daniela Tartareanu was sentenced to 21 months imprisonment.
Minas Litos and Adrian Tartareanu owned Red Brick Investment Properties. Daniela Tartareanu was the office manager. They participated in an illegal scheme in which they convinced others to buy homes in Gary, Indiana. To induce the individuals, the defendants told prospective buyers that they were not required to provide down payment funds, and that the rental income would cover the costs associated with owning rental property. They concealed from the lenders and title companies that they paid the down payment money on behalf of the buyers. They also paid kickbacks to the buyers. The scheme lasted two years and involved 45 fraudulent transactions. As a result, more than $2.5 million dollars was fraudulently obtained from the lenders with almost all the buyers subsequently defaulting on the loans. Many of the properties are now vacant or considered a total loss by the lenders.
This case was the result of an investigation by Federal Bureau of Investigation. This case was handled by Assistant United States Attorneys Gary T. Bell and Jill Koster.
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Miami Physician Pleads Guilty for Role in $20 Million Health Care Fraud SchemeRead the Press Release
A Miami physician pleaded guilty today for his role in a Medicare fraud scheme that caused more than $20 million in losses.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Division and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Miami Regional Office made the announcement.
Henry Lora, 51, of Miami, pleaded guilty before U.S. District Judge Federico A. Moreno of the Southern District of Florida to one count of conspiracy to commit health care fraud and one count of conspiracy to defraud the United States, receive health care kickbacks and make false statements relating to health care matters.
According to the factual basis of the plea agreement, Lora was the medical director of Merfi Corporation, a Miami-area clinic that employed physicians, physician assistants and other medical professionals. Lora admitted that in exchange for kickbacks and bribes, he and his co-conspirators wrote prescriptions for home health care and other services for Medicare beneficiaries that were not medically necessary or not provided. Lora and his co-conspirators also falsified patient records to make it appear as if the beneficiaries qualified for these services, he admitted.
Lora admitted that his and his co-conspirators’ actions caused multiple Miami-Dade home health care agencies and other providers to bill Medicare for services that were not medically necessary or not provided, and Medicare made payments on these fraudulent claims.
In March 2014, Isabel Medina, the owner of Merfi, was sentenced to nine years in prison for conspiracy to commit health care fraud.
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 Southern District of Florida. Fraud Section Trial Attorney A. Brendan Stewart is prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged 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.
Miami Physician Pleads Guilty for Role in $20 Million Health Care Fraud SchemeRead the Press Release
A Miami physician pleaded guilty today for his role in a Medicare fraud scheme that caused more than $20 million in losses.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Division and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Miami Regional Office made the announcement.
Henry Lora, 51, of Miami, pleaded guilty before U.S. District Judge Federico A. Moreno of the Southern District of Florida to one count of conspiracy to commit health care fraud and one count of conspiracy to defraud the United States, receive health care kickbacks and make false statements relating to health care matters.
According to the factual basis of the plea agreement, Lora was the medical director of Merfi Corporation, a Miami-area clinic that employed physicians, physician assistants and other medical professionals. Lora admitted that in exchange for kickbacks and bribes, he and his co-conspirators wrote prescriptions for home health care and other services for Medicare beneficiaries that were not medically necessary or not provided. Lora and his co-conspirators also falsified patient records to make it appear as if the beneficiaries qualified for these services, he admitted.
Lora admitted that his and his co-conspirators’ actions caused multiple Miami-Dade home health care agencies and other providers to bill Medicare for services that were not medically necessary or not provided, and Medicare made payments on these fraudulent claims.
In March 2014, Isabel Medina, the owner of Merfi, was sentenced to nine years in prison for conspiracy to commit health care fraud.
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 Southern District of Florida. Fraud Section Trial Attorney A. Brendan Stewart is prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged 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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Massachusetts Man Pleads Guilty to Drug ChargeRead the Press Release
CONCORD – United States Attorney Emily Gray Rice announced today that Hector Bienvenido Mateo-Beltre, pleaded guilty today to possession of fentanyl with intent to distribute. Mateo-Beltre appeared before United States District Court Judge Steven J. McAuliffe to enter his guilty plea.
According to documents that were filed in United States District Court and statements made in the plea proceeding, Mateo-Beltre was arrested on July 12, 2015, after he attempted to deliver over 200 grams of fentanyl to a customer in Manchester, New Hampshire. After his arrest, Mateo-Beltre falsely claimed to be “Kevin Morales” of Dorchester, Massachusetts. Law enforcement officers later determined his true name.
A sentencing hearing has been scheduled for May 11, 2016.
The case was investigated by the Drug Enforcement Administration, with assistance from other law enforcement agencies, including the New Hampshire State Police and the Manchester Police Department. The case was prosecuted by Assistant United States Attorneys Debra Walsh and John J. Farley.
Maryland Return Preparer Convicted of Aiding and Assisting in the Preparation of False Tax ReturnsRead the Press Release
A Baltimore, Maryland, man was convicted by a federal jury yesterday in the U.S. District Court for the District of Maryland of preparing false income tax returns for clients of his tax return preparation business, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Charles Imariagbe was convicted of 15 counts of aiding and assisting in the preparation of false income tax returns after a five day jury trial. According to court documents and testimony at trial, between 2008 and 2012, the defendant operated a tax preparation business called JC Tax Service Inc., in Baltimore. During that time, the defendant prepared false individual income tax returns for at least seven clients for submission to the Internal Revenue Service (IRS). These tax returns claimed false and fraudulent income and expenses from Schedule C businesses and grossly inflated or wholly fictitious mileage expenses. The false items on these returns resulted in the clients receiving larger tax refunds than they were entitled to receive.
“Yesterday’s verdict sends a clear message that tax return preparers who knowingly prepare and file false returns will be investigated and prosecuted, and will face substantial incarceration,” said Acting Assistant Attorney General Ciraolo. “As we enter the 2016 filing season, U.S. taxpayers are entitled to seek assistance from honest and competent professionals, and the Tax Division is committed to holding these return preparers accountable for their conduct.”
U.S. District Judge Ellen L. Hollander for the District of Maryland set sentencing for May 12. The defendant faces a statutory maximum sentence of three years in prison and a maximum fine of $250,000 on each count of conviction.
Acting Assistant Attorney General Ciraolo commended agents of IRS-Criminal Investigation, who investigated the case and Trial Attorneys Brittney Campbell and Andrew J. Kameros, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Man Sentenced for Leaving Pipe Bomb at Vickery Creek ParkRead the Press Release
ATLANTA - Michael C. Sibley has been sentenced to two years in prison for creating a hoax when he left a backpack containing two inoperable pipe bombs in Vickery Creek Park in Roswell, Georgia.
“Sibley built two nearly-operable pipe bombs that he recklessly left in Vickery Creek Park in a place intended to inflict maximum panic among the public,” said U. S. Attorney John Horn. “He compounded the crime by preying on stereotypical fears and prejudices by making it appear the bombs were planted by a Muslim. Thankfully an alert park visitor discovered and immediately reported the bag containing the bombs to police.”
“The sentencing of Mr. Sibley to two years in federal prison should clearly illustrate to him and to others the serious nature of leaving a backpack device in a public setting for the specific purpose of creating panic and distress. The law enforcement response and the resulting federal investigation was extensive and costly to the taxpaying public,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges and other information presented in court: Sibley placed a backpack alongside one of the trails in Vickery Creek Park. Roswell Police Department contacted FBI after a park visitor discovered the suspicious bag, which contained two pipe bombs that fortunately omitted one component and therefore were not capable of immediate detonation. Approximately 400 nails and screws were attached to the outside of the tubing consistent with construction designed for maximum fragmentation upon explosion, making the device more lethal.
On the bag containing the bombs, Sibley wrote a traditionally Muslim name on the backpack and he placed inside the bag, among other things, two books: one titled “The Rape of Kuwait” and the other titled “The Holy Qur’an.” He also placed papers printed from three websites in the bag: the 2015 Atlanta Falcons schedule, a printout from a website for a Jewish Community Center in the Atlanta area, and a printout from the Metropolitan Atlanta Rapid Transit Authority’s (“MARTA”) website. These printouts were included to convey threats to these locations as well.
Based on the items recovered from the backpack, the FBI narrowed its focus to Sibley. On March 20, 2015, Sibley voluntarily met with the FBI and confessed to making the devices and to placing them in Vickery Creek Park. He stated that he placed the bag with these devices, the books and other items in the park to “wake-up” people in the United States. He related that he believes the Mexican border is poorly defended and that many people are entering this country illegally. He also said that he made the explosive devices and placed them in the park to make people realize that if this can happen in Roswell, Georgia, it can happen anywhere.
Michael C. Sibley, 67, of Marietta, Georgia, was sentenced to two years in prison to be followed by one year of supervised release. Sibley was convicted on these charges on September 9, 2015, after pleading guilty.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Tracia M.King prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.