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15 March 2016
Former Executive Director of Zaneville's Center for Child and Family Development Sentenced for Stealing Program FundsRead the Press Release
COLUMBUS, Ohio – Melissa Daley, 45, of Nashport, Ohio was sentenced in U.S. District Court to 12 months and one day in prison and ordered to pay approximately $103,000 in restitution and a $25,000 fine for filing a false income tax return with the Internal Revenue Service (IRS), wire fraud and money laundering.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division and Ohio Attorney General Mike DeWine announced the sentence handed down today by U.S. District Judge Gregory L. Frost.
According to court documents, since 1992 Daley acted as the Executive Director for the Center for Child and Family Development (CCFD) in Zanesville, Ohio. CCFD, a non-profit organization, provided foster care and residential case services to children as well as adult care services.
In June 2009, on behalf of CCFD, Daley applied to the Ohio Department of Developmental Disabilities (DODD) to allow for CCFD to be a part of the Individual Options Waiver Program (I/O Waiver Program). This program allowed for continued care of adult individuals with mental or developmental disabilities and permitted qualified individuals to remain in their homes and obtain support for their disabilities rather than requiring them to live in an Intermediate Care Facility for the Mentally Retarded. The application was approved by DODD.
Between March 2011 and November 2012 Daley devised a scheme to defraud CCFD, by diverting payments for the waiver program to a personal checking account for Daley. As a result of this fraudulent scheme, Daley received $71,977.31 of CCFD’s I/O Waiver funds that were deposited into her personal checking.
In addition, in August 2011, after having resigned from CCFD, Daley opened a new bank account in the name of CCFD and claimed she was the President of the organization. After opening the account, Daley again caused waiver program funds to be deposited into her bank account. Once Daley received CCFD’s I/O Waiver funds she would immediately transfer the funds into another bank account in the name of Community Base Services, which was a newly formed entity created by Daley. As a result of this fraudulent scheme, Daley received an additional $296,115.00 of CCFD’s I/O Waiver funds into her personal bank account.
Daley did not report any of the funds she fraudulently obtained on her 2011 or 2012 income tax returns. The total unreported income on Daley’s 2011 and 2012 income tax returns was $360,182.37 resulting in additional taxes due and owing to the IRS in the amount of $103,043.07.
Acting U.S. Attorney Glassman commended the cooperative investigation by the FBI, IRS, and Ohio Attorney General’s Medicaid Fraud Unit, as well as Assistant United States Attorney Kenneth F. Affeldt, who is representing the United States in this case.
Former Captain Sentenced for Withholding Evidence Favorable to a Defendant and Obstructing JusticeRead the Press Release
Two Deputies Also Sentenced for Obstructing Justice by Covering up a Fellow Officer’s Use of Force
The Justice Department announced today that Elizabeth Croley, 37, a former captain at the Decatur County, Georgia, Sheriff’s Office, was sentenced to 18 months in prison for willfully withholding evidence favorable to a criminal defendant and for writing a false report to cover up another law enforcement officer’s use of force against a civilian. Robert Wade Umbach, 36, and Christopher Kines, 36, both former deputies at the Decatur County Sheriff’s Office, were also sentenced to 15 months in prison for making false statements to help cover up the use of force.
In June 2015, a federal jury in Albany, Georgia, convicted the defendants after a trial that lasted more than two weeks. The charges arose from a September 2012 incident in which former Grady County, Georgia, Deputy Sheriff Wiley Griffin IV – who is the son of Decatur County Sheriff Wiley Griffin III – used force against Aaron Parrish during an arrest at the Bainbridge BikeFest. The jury found that Croley, Kines and Umbach obstructed justice when they later helped cover up Griffin’s actions. Specifically, the jury convicted Croley of obstructing justice by writing a false report and convicted Kines and Umbach of engaging in misleading conduct by lying to an FBI agent about the incident. Croley was also convicted of violating Aaron Parrish’s constitutionally protected right to a fair trial by intentionally withholding material exculpatory evidence from the district attorney’s office, and in turn, from Aaron Parrish’s criminal defense attorney during a criminal prosecution of Parrish.
During the trial, the jury heard evidence that Griffin struck Parrish in the eye with a metal flashlight while Parrish was being restrained on the ground by other deputies, including defendants Kines and Umbach. The government also presented evidence that, after Parrish complained to the Decatur County Sheriff’s Office about the abuse he had suffered at BikeFest, the sheriff’s office opened a criminal investigation led by Croley that eventually resulted in felony criminal charges against Parrish. During that investigation, Croley took a witness statement from a civilian eyewitness who provided information that would have been materially helpful to Parrish’s defense. However, rather than providing that statement to the district attorney so that it could then be provided to Parrish’s defense attorney for use at trial, Croley intentionally removed the exculpatory statement from the case file. This conduct formed the basis of the civil rights charge on which Croley was convicted.
“When law enforcement officers break the laws they swear to uphold and harm the people they promise to protect, it undermines public trust in our government,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “If officers try to lie or withhold evidence, we will vigorously protect the integrity of our justice system by holding them accountable for their actions and safeguarding the civil rights of all Americans.”
“The public rightfully depends on law enforcement officers to uphold the law faithfully,” said Acting U.S. Attorney G.F. “Pete” Peterman of the Middle District of Georgia. “When these defendants withheld important facts and provided false information in this investigation, they subverted the entire process and damaged the public's faith in the integrity of their former fellow officers. They fully deserve the sentences meted out to them today.”
This case was investigated by the FBI’s Atlanta Field Office, and was prosecuted by Trial Attorneys Christine M. Siscaretti and Risa Berkower of the Civil Rights Division’s Criminal Section, with support from the U.S. Attorney’s Office of the Middle District of Georgia.
Former Captain Sentenced for Withholding Evidence Favorable to A Defendant and Obstructing JusticeRead the Press Release
WASHINGTON – The Justice Department announced today that Elizabeth Croley, 37, a former captain at the Decatur County, Georgia, Sheriff’s Office, was sentenced to 18 months in prison for willfully withholding evidence favorable to a criminal defendant and for writing a false report to cover up another law enforcement officer’s use of force against a civilian. Robert Wade Umbach, 36, and Christopher Kines, 36, both former deputies at the Decatur County Sheriff’s Office, were also sentenced to 15 months in prison for making false statements to help cover up the use of force.
In June 2015, a federal jury in Albany, Georgia, convicted the defendants after a trial that lasted more than two weeks. The charges arose from a September 2012 incident in which former Grady County, Georgia, Deputy Sheriff Wiley Griffin IV – who is the son of Decatur County Sheriff Wiley Griffin III – used force against Aaron Parrish during an arrest at the Bainbridge BikeFest. The jury found that Croley, Kines and Umbach obstructed justice when they later helped cover up Griffin’s actions. Specifically, the jury convicted Croley of obstructing justice by writing a false report and convicted Kines and Umbach of engaging in misleading conduct by lying to an FBI agent about the incident. Croley was also convicted of violating Aaron Parrish’s constitutionally protected right to a fair trial by intentionally withholding material exculpatory evidence from the district attorney’s office, and in turn, from Aaron Parrish’s criminal defense attorney during a criminal prosecution of Parrish.
During the trial, the jury heard evidence that Griffin struck Parrish in the eye with a metal flashlight while Parrish was being restrained on the ground by other deputies, including defendants Kines and Umbach. The government also presented evidence that, after Parrish complained to the Decatur County Sheriff’s Office about the abuse he had suffered at BikeFest, the sheriff’s office opened a criminal investigation led by Croley that eventually resulted in felony criminal charges against Parrish. During that investigation, Croley took a witness statement from a civilian eyewitness who provided information that would have been materially helpful to Parrish’s defense. However, rather than providing that statement to the district attorney so that it could then be provided to Parrish’s defense attorney for use at trial, Croley intentionally removed the exculpatory statement from the case file. This conduct formed the basis of the civil rights charge on which Croley was convicted.
“When law enforcement officers break the laws they swear to uphold and harm the people they promise to protect, it undermines public trust in our government,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “If officers try to lie or withhold evidence, we will vigorously protect the integrity of our justice system by holding them accountable for their actions and safeguarding the civil rights of all Americans.”
“The public rightfully depends on law enforcement officers to uphold the law faithfully,” said Acting U.S. Attorney G.F. “Pete” Peterman of the Middle District of Georgia. “When these defendants withheld important facts and provided false information in this investigation, they subverted the entire process and damaged the public's faith in the integrity of their former fellow officers. They fully deserve the sentences meted out to them today.”
This case was investigated by the FBI’s Atlanta Field Office, and was prosecuted by Trial Attorneys Christine M. Siscaretti and Risa Berkower of the Civil Rights Division’s Criminal Section, with support from the U.S. Attorney’s Office of the Middle District of Georgia.
Former Branson EMT Sentenced to 21 Years for Producing Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Branson, Mo., EMT was sentenced in federal court today for producing child pornography.
Nicholas James Dickerson, 31, of Branson, Mo., was sentenced by U.S. District Judge M. Douglas Harpool to 21 years and 10 months in federal prison without parole. The court also sentenced Dickerson to supervised release for the rest of his life following incarceration.
Dickerson, who pleaded guilty on Feb. 26, 2015, was employed by the Western Taney County Fire Protection District as an EMT less than 18 months and was a volunteer firefighter for about eight months. Dickerson was residing in living quarters at a Branson fire station at the time of the offense.
According to court documents, Dickerson sold his iPhone to a Nixa, Mo., business on Feb. 9, 2015. After the transaction was complete, an employee of the business noticed that the “deleted pictures folder” was still present on the screen. The employee saw an image of child pornography and alerted the store owner, who contacted law enforcement.
Investigators identified the nine-year-old victim in the photo, which was taken on Feb. 7, 2015. Dickerson told investigators that he took the photo while sexually abusing the child victim in his living quarters at the fire station, and that he sexually abused the victim on multiple occasions. Dickerson also told investigators he had shown pornography to the child victim on multiple occasions.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Feeding Program Fraud Ring Sees First Defendant Sentenced, Jordan Receives More Than 5 Years PrisonRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas announced today that United States District Court Judge James M. Moody Jr. sentenced Kattie Jordan, 51, of Dermott, to more than five years in federal prison for her role in the widespread scheme to steal money intended for feeding children in low income areas.
Jordan, who pled guilty to conspiring to commit wire fraud on August 3, 2015, was sentenced to 63 months imprisonment, to be followed by three years of supervised release. She was also ordered to pay joint restitution of $3,629,278.20, along with any other defendants who may be sentenced to the same restitution amount.
Jordan is the first defendant sentenced who was charged in the scheme to fraudulently obtain United States Department of Agriculture (USDA) program funds intended to feed children in low income areas. Anthony Leon Waits, Gladys Elise Waits, Tonique D. Hatton, Jacqueline D. Mills, Dortha M. Harper, and Jordan are charged with conspiring to fraudulently obtain USDA program funds and related crimes.
Jordan and Mills operated as sponsors for separate feeding programs. Gladys Waits and Hatton worked for the Arkansas Department of Human Services, and part of their job was to determine eligibility of sponsors to participate in the feeding programs. Gladys Waits and Hatton approved Jordan’s and Mills’ programs at various times.
Although Jordan and Mills did feed some children, the charges allege that Mills and Jordan submitted claims for many more meals than they actually served. Gladys Waits and Hatton approved applications for Mills and Jordan, which facilitated the payment of these fraudulent claims. Mills and Jordan then made bribe payments to Gladys Waits and Hatton, sometimes directly and at other times indirectly through their relatives.
The amount of Jordan’s fraud, over and above any children actually being fed, was in the millions of dollars. During Tuesday’s sentencing hearing, the United States argued that not only were these millions of dollars not used to provide meals for hungry children, but also that the fraud Jordan and others engaged in impacted the integrity of the feeding programs. The United States argued that, because of the fraud, simply focusing on statistics, such as the amount of money paid through the programs or the number of children allegedly being fed, does not provide an accurate way to gauge the success of these feeding programs.
The remaining defendants in the case are scheduled to stand trial beginning May 16, 2016. The statutory penalty for wire fraud and conspiracy to commit wire fraud is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than 3 years supervised release. The statutory penalty for receipt of bribes, paying bribes, and money laundering is not more than 10 years imprisonment, not more than a $250,000 fine, or both, and not more than 3 years supervised release.
The investigation remains ongoing and is conducted by the United States Department of Agriculture—Office of Inspector General, United States Secret Service, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigations, and the United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana K. Harris and Allison W. Bragg.
If anyone is aware of any fraudulent activity regarding feeding programs, please email that information to the United States Attorney’s office at [email protected].
Eight sentenced for heroin, cocaine traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Eight individuals were sentenced in federal court in Martinsburg for heroin and cocaine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Six individuals were sentenced for their role in a multi-state heroin trafficking operation led by Brian Alexander Hall, 28, of Baltimore, Maryland. Hall orchestrated a network of associates to transport heroin across state lines for redistribution and sale in Maryland, Pennsylvania, Virginia, and West Virginia. A 163-count federal indictment targeting 41 defendants interrupted the drug trafficking scheme in June 2015.
Jefferey David Murphy, 34, of Martinsburg, pled guilty in November 2015 to one count of “Use of a Telephone to Facilitate the Distribution of Heroin,” one count of “Aiding and Abetting Interstate Travel in Aid of Racketeering,” and one count of “Aiding and Abetting Possession With Intent to Distribute Heroin.” He was sentenced to 48 months in prison on the telephone charge and 51 months in prison on each of the remaining charges. The sentences will run concurrently for a total of 51 months in prison. He was also ordered to forfeit his interest in $29,850 in United States currency.
William Lee Wasson, 38, of Falling Waters, West Virginia, pled guilty in September 2015 to one count of “Use of a Telephone to Facilitate the Distribution of Heroin,” one count of “Aiding and Abetting Interstate Travel in Aid of Racketeering,” and one count of “Aiding and Abetting Possession With Intent to Distribute Heroin.” He was sentenced to 36 months in prison on each count. The sentences will run concurrently for a total of 36 months in prison.
Brandon Kidwell, 24, of Great Cacapon, West Virginia, pled guilty in November 2015 to one count of “Aiding and Abetting Interstate Travel in Aid of Racketeering.” He was sentenced to 24 months in prison.
Robert Hamilton Shanley-Sexton, 24, of Gaithersburg, Maryland, pled guilty in September 2015 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin.” He was sentenced to twelve months and one day in prison.
Cameron Stinebaugh, 28, of Great Cacapon, West Virginia, pled guilty in November 2015 to one count of “Aiding and Abetting Interstate Travel in Aid of Racketeering.” He was sentenced to probation for a term of five years.
Jared Michael Belanger, 36, of Martinsburg, pled guilty in November 2015 to one count of “Interstate Travel in Aid of Racketeering.” He was ordered to forfeit his interest in $8,500 in United States currency and sentenced to probation for a term of five years.
In another matter, Ariana Shanae Parker, 24, of District Heights, Maryland, and Theron Eugene Cobb, 32, of Miami, Florida, were sentenced for heroin and cocaine trafficking.
Cobb was as discovered in possession of cocaine in Berkeley County. He pled guilty in November 2015 to one count of “Possession with Intent to Distribute Cocaine Base.” He was sentenced to 36 months in prison.
Parker sold heroin in Berkeley County, West Virginia. She pled guilty in November 2015 to one count of “Aiding and Abetting Distribution of Heroin.” She was sentenced to probation for a term of three years.
Special Assistant U.S. Attorney Stephanie Taylor, also of the Berkeley County Prosecuting Attorney’s Office, prosecuted Parker and Cobb on behalf of the government. Assistant U.S. Attorneys Anna Krasinski and Paul Camilletti prosecuted the remaining defendants on behalf of the government. The Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated all of the defendants. The Federal Bureau of Investigation also investigated the multi-state heroin trafficking network.
Chief U.S. District Judge Gina M. Groh presided.
District Man Sentenced to Prison for Armed Robbery in Southeast WashingtonRead the Press Release
WASHINGTON – Joshua Mayo, 18, of Washington, D.C., was sentenced today to a 42-month prison term for two offenses, including an armed robbery and receipt of stolen property taken during another armed robbery, U.S. Attorney Channing D. Phillips announced.
Mayo pled guilty in October 2015, in the Superior Court of the District of Columbia, to charges of armed robbery and receipt of stolen property. The Honorable Todd E. Edelman sentenced him to a total of 72 months in prison, but suspended all but 42 months of the time on the condition that he successfully complete a period of probation.
According to the government’s evidence, on Friday, Aug. 28, 2015 at approximately 7:50 a.m., the victim reported that Mayo approached her after she exited her vehicle in the 1500 block of East Capitol Street SE. Mayo blocked the victim’s path, and stated, “Stop, give me your bags,” while directing her attention to the handle of the pistol that was sticking out from the right front portion of his waistband. The victim handed over her belongings, including her car keys.
Mayo fled the area, but returned several hours later to the parking lot where the victim had previously parked her vehicle. Law enforcement had been canvassing the area for the defendant, and when they attempted to stop him in his vehicle, he fled the area. He was eventually detained after he crashed the vehicle. Law enforcement recovered a black .45-caliber semi-automatic pistol from inside the vehicle, as well as some of the victim’s belongings.
The receipt of stolen property charge stems from Mayo’s possession of a cellphone stolen on April 11, 2015, during another armed robbery in Northeast Washington.
In announcing the sentence, U.S. Attorney Phillips commended the work of the officers, detectives, and others who worked on the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Vivien Cockburn and Derrick Williams, who investigated and prosecuted the cases.
Delmont Man Sentenced to Prison for Role in California to PA Cocaine Trafficking SchemeRead the Press Release
PITTSBURGH - A Westmoreland County resident has been sentenced in federal court to 21 months’ imprisonment on his conviction of conspiracy to distribute 500 grams or more of cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Tieriq Pinnix, 22, of Delmont, Pa.
In connection with the guilty plea, the court was advised that in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Tieriq Pinnix was intercepted over the wire conspiring with others, including his father, Cecil Pinnix, to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Prior to imposing sentence, Judge Hornak stated that the sentence was sufficient but not greater than necessary to fulfill the goals of sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Pinnix.
Collinsville Man Sentenced to 18 Months in Prison for Conspiracy to Commit Mail FraudRead the Press Release
Michael Alan Carver, age 30, from Collinsville, Illinois was sentenced to eighteen 18 months in prison for the offense of Conspiracy to Commit Mail Fraud, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today. Additionally, Carver was ordered to serve three years supervised release following his release from prison and ordered to pay restitution totaling $7,655.28.
Carver stole United States mail out of area mail boxes with a coconspirator Jeffrey Brown to obtain the means of identification of other persons. As part of the conspiracy the means of identification were used to apply for and activate credit cards of other persons without authorization. Brown fraudulently purchased various merchandise online and at retail stores using the unauthorized access devices and had items delivered to Carver's residence. Carver was indicted jointly with Jeffrey Brown who was previously sentenced in November 2015 and received a sentence of two years in prison.
The successful prosecution is the result of an investigation conducted by the Southern Illinois Identity Theft Task Force consisting of the Internal Revenue Service/Criminal Investigations, the United States Secret Service and the Postal Inspection Service. The Collinsville Police Department also assisted in the investigation. The prosecution was handled by Assistant U.S. Attorney Norman R. Smith.
Colleyville, Texas Man Sentenced to 180 Months in Federal Prison for Running Nearly $4 Million Wind Farm Investment ScamRead the Press Release
DALLAS — David Lyman Spalding, 62, of Colleyville, Texas, was sentenced today by U.S. District Judge Barbara M. G. Lynn to 180 months in federal prison and ordered to pay $3,391,146.80 in restitution, following his conviction at trial on all counts of a superseding indictment charging various offenses related to a wind farm investment scam he ran, announced U.S. Attorney John Parker of the Northern District of Texas.
Spalding was also ordered to forfeit $160,893.31, which represents the proceeds of the sale of his residence on Spring Garden Drive in Colleyville. He has been in federal custody since July 2015.
The government presented evidence at trial that from at least 2003 and continuing through approximately April 2011, Spalding raised approximately $3.7 million from 97 investors in 11 states. Spalding made false representations to get investors to invest in promissory notes issued by Wind Plus, Inc. and Baseload Energy LLC and diverted the funds for his own benefit, to include purchasing real estate and extensive international travel not related to either Wind Plus or Baseload.
When Spalding filed bankruptcy in November 2009 for Wind Plus Inc. and Wind Plus Holdings Inc., he continued to solicit investors for Baseload energy, promising that funds would be used to build infrastructure for renewable energy projects. He also represented that the changes in management were for business purposes when in fact the staff had quit Wind Plus because they were not paid. As part of his fraud, Spalding also represented that investors would be repaid their investments, within varying timeframes from 60 days to one year, when in fact, Spalding did not repay investors within any of the specified timeframes.
In the Wind Plus bankruptcy case, Spalding falsely testified under oath about the number of individuals who were note holders as well as the amount of distributions and withdrawals he had taken.
The FBI investigated the case. Assistant U.S. Attorney Chris Stokes and Special Assistant U.S. Attorney Dan Gividen prosecuted.
# # #Charlotte Man Sentenced to Three Years in Prison for $2 Million Health Care Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Jill Westmoreland Rose announced today that Eric Bernard Mitchell, 44, of Charlotte, was sentenced to 37 months in prison for defrauding Medicaid of over $2 million. U.S. District Judge Max O. Cogburn, Jr. also ordered Mitchell to serve one year under court supervision and to pay $ 2,049,932.12 as restitution to Medicaid. Mitchell pleaded guilty October 2015 to health care fraud and money laundering charges.
U.S. Attorney Rose is joined in making today’s announcement by Attorney General Roy Cooper, who oversees the North Carolina Medicaid Investigations Division (MID), Derrick L. Jackson, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General for the region including North Carolina, and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
According to filed court documents and today’s sentencing hearing, from about 2007 to about 2009, Mitchell co-owned and operated Angelic Community and Family Services, L.P. (Angelic), which provided alternative care in a non-institutional setting to Medicaid recipients with intellectual/developmental disabilities. Angelic later became defunct, and in 2009, Mitchell assisted in the creation of another company, identified in court documents as “Company #1,” which provided the same type of services as Angelic. Mitchell operated significant portions of Company #1’s business and had exclusive control of the company’s bank accounts. According to court records, both Angelic and Company #1 were approved by Medicaid to provide such services to beneficiaries and to receive reimbursement from the government program.
Court records show that that from about October 2009 to about June 2014, Mitchell submitted fraudulent claims to Medicaid on behalf of Company #1, seeking reimbursement for services which were never provided to beneficiaries with developmental disabilities. According to court records, Mitchell submitted the fraudulent claims using the Medicaid beneficiary information of former clients of Angelic, who Mitchell knew were approved to receive such services. Over the course of the scheme, Mitchell submitted at least $2.5 million in fraudulent claims using the beneficiaries’ stolen information and to receiving over $2 million in payments from Medicaid.
According to court records, Medicaid directed payments for Company #1’s reimbursement claims, including the fraudulent ones, to multiple bank accounts exclusively controlled by Mitchell. Over the course of the conspiracy, Mitchell used portions of the Medicaid funds to cover personal expenses, including to make multiple car payments to a Mercedes dealer and to pay for various car repair services.
Mitchell will be ordered to report to the Federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by HHS-OIG, IRS-CI and MID. Assistant U.S. Attorney Kelli Ferry of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
The investigation and charges are the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected]. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
Chalmette Man Pleads Guilty to Violating the Federal Controlled Substances ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MARQUIS JOHNSON, age 32, of Chalmette, pled guilty today to an indictment charging him with four violations of the Federal Controlled Substances Act.
According to court records, JOHNSON conspired with others to possess with the intent to distribute and to distribute a quantity of a mixture or substance containing a detectable amount of heroin, a Schedule I drug controlled substance and a substance containing a detectable amount of cocaine base, a Scheduled II drug controlled substance. In addition to the conspiracy, JOHNSON pled guilty to three substantive distributions of heroin or cocaine base.
On each of the charges, JOHNSON faces a sentence of up to twenty years imprisonment and/or a fine of $1,000,000, a three year term of supervised release following any term of imprisonment, and a mandatory $100 special assessment. U.S. District Judge Susie Morgan set sentencing on June 15, 2016.
U.S. Attorney Polite praised the work of the Special Agents of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.
Butler County Woman Sentenced to 4+ Years in Prison for Stealing Walmart Customers’ IdentitiesRead the Press Release
PITTSBURGH - A resident of Butler County, Pennsylvania, has been sentenced in federal court to 57 months incarceration and three years supervised release on her conviction of conspiracy, and aggravated identity theft, United States Attorney David J. Hickton announced today.
Senior United States District Judge Joy Flowers Conti imposed the sentence on Jennifer MacVittie, 32.
In connection with the information presented to the court, beginning around October 2013, through May, 2014, Jennifer MacVittie and Robert MacVittie used cell phone cameras to “shoulder surf” social security numbers from Walmart customers nationwide by taking cell phone video images of the customers who were cashing checks at the customer service counters. The stolen information was later used to negotiate counterfeit checks at Walmart stores throughout the U.S., including Pennsylvania, West Virginia, Florida, Texas, Mississippi, Alabama, Kansas and other states. The MacVittie’s were arrested at a casino by law enforcement in Nevada on Nov. 29, 2014.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
The Western Pennsylvania Financial Crimes Task Force conducted the investigation that led to the indictment of the Jennifer MacVittie. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Bucks County Man Charged in Bank Bilking ConspiracyRead the Press Release
PHILADELPHIA - Joseph Rosko, III, 36, of Ambler, PA, was charged by Information, filed on February 19, 2016, with misapplication of bank funds and conspiracy, announced United States Attorney Zane David Memeger.
Rosko was the Commercial Loan Officer at Earthstar Bank in Southampton, PA, from approximately April 2009 until May 2010 and had an Earthstar credit card. Rosko and David Lyster, the Chief Lending Officer (charged elsewhere), agreed that Lyster would eliminate the minimum monthly payment requirement from Rosko’s credit card. Over time, Lyster raised Rosko’s credit limit to $65,000. Rosko exceeded his credit limit on the card and defaulted on the account. One of Rosko’s customers at Earthstar Bank, W.R., had an Earthstar Bank credit card with a credit limit of $15,000, and W.R.’s company had six business loans with Earthstar Bank totaling approximately $250,000. As of March 2010, W.R. had reached the credit limit on his Earthstar credit card, and his company’s loans were non-performing. Rosko solicited Lyster to eliminate the minimum payment term and the cash advance fee on W.R.’s Earthstar Bank credit card. Thereafter, W.R. withdrew almost $50,000 in cash advances on the card. Ultimately, W.R. exceeded the $75,000 credit limit on the credit card, and defaulted on the card.
Rosko obtained a one-third ownership interest in a struggling pizza restaurant owned by J.P. At that same time, W.R. (Rosko’s bank customer) also obtained a one-third interest in the restaurant. J.P. (the original owner) retained a one-third interest. At approximately the same time, Rosko arranged for an Earthstar Bank credit card with a “no minimum payment” term to be sent to J.P. J.P. withdrew more than $30,000 in cash advances on the card. In September 2010, J.P. exceeded the $35,000 credit limit and defaulted on the card.
If convicted, Rosko faces a maximum possible sentence of 35 years in prison, up to five years of supervised release, a possible fine, and a $200 special assessment. Full restitution of as much as $124,891 also shall be ordered.
The case was investigated by Office of Inspector General of the Board of Governors of the Federal Reserve System’s Consumer Financial Protection Bureau, the Office of Inspector General of the Federal Deposit Insurance Corporation, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Karen L. Grigsby.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Baltimore Man Indicted for Carjacking Conspiracy and for Crashing a Stolen Car into NSA Security GateRead the Press Release
Baltimore, Maryland – A federal grand jury today indicted Dontae Small, age 42 of Baltimore, on charges of conspiracy, carjacking, and destruction of government property, after he allegedly rammed a stolen car into a security gate at the National Security Agency in Ft. Meade, Maryland.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Kevin Davis of the Baltimore Police Department; Baltimore City State’s Attorney Marilyn J. Mosby; Anne Arundel County Police Chief Tim Altomare; and the National Security Agency Police.
According to the three count indictment, on October 4, 2015, Small and his co-conspirators were riding in a white minivan in the Federal Hill neighborhood of Baltimore, looking for victims to rob. At about 10:09 p.m. Small texted a male co-conspirator the following message: “Get the dude cpming down da st.I parked on smoking a pipe” [sic].
Three of the co-conspirators approached Victim 1 on Covington Street, pointed a silver handgun at the victim and demanded that the victim give them the keys to his car, a 2008 Acura TSX. The conspirators then took the car. On that same night, two of the conspirators approached Victims 2 and 3. One of the conspirators brandished a silver handgun and asked what was in Victim 2’s pockets. Victims 2 and 3 fled and one of the conspirators grabbed a cellular phone that had fallen from Victim 3’s pocket as they ran.
The indictment alleges that Small took the stolen Acura and drove it from Baltimore to Anne Arundel County, Maryland, crashing the car into a security gate protecting the National Security Agency on October 7, 2015.
Small faces a sentence of 15 years in prison for carjacking; a maximum of 10 years in prison for destruction of government property; and a maximum of five years in prison for conspiracy. An initial appearance in U.S. District Court in Baltimore has not yet been scheduled. Small remains detained.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended FBI, the Baltimore City Police Department, Baltimore City State’s Attorney’s Office, Anne Arundel County Police Department, and National Security Agency Associate Directorate for Security and Counterintelligence for their work in the investigation and thanked the Fort George G. Meade Directorate of Emergency Services for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Sandra Wilkinson, who is prosecuting the case.
Ayden Man Sentenced to More Than 19 Years for Receipt of Child PornographyRead the Press Release
NEW BERN – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court, United States District Judge Louise W. Flanagan sentenced ANDREW DALE MOORE, 29, of Ayden, North Carolina, to 235 months imprisonment, followed by a lifetime of supervised release and a $5,000 fine.
MOORE was named in an eleven count Indictment filed on May 12, 2015. On July 15, 2015, MOORE pled guilty to one count of Receipt of Child Pornography.
The investigation revealed that on September 15, 2014, ANDREW DALE MOORE, a registered sex offender in Pitt County, North Carolina, contacted his sex offender counselor and acknowledged reoffending. Specifically, MOORE indicated that his criminal activities began between the ages of 14 and 16 and since that time, he has had sexual contact with at least 17 minor females between the ages of 2 to 14. Additionally, the defendant acknowledged reoffending since his release from custody on July 8, 2013, as well as possessing child pornography.
Based on the information, the Pitt County Sheriff’s Office
obtained a search warrant. On September 16, 2014, a search was completed at MOORE’s residence in Ayden, North Carolina. During the search, agents located and seized two computers, two cellular phones, multiple media storage devices, compact discs (CD’s) and digital video discs (DVDs). Forensic examination revealed child pornography (CP) on one of MOORE’s cellular phones. Agents determined that the defendant utilized the phone to access the internet and search for CP through peer-to-peer (P2P) file sharing programs.
The defendant provided an unprotected statement to agents in which he acknowledged receiving and collecting CP through the use of a P2P program. Additionally, the defendant obtained CP after he met individuals with similar interests on social networking sites. MOORE advised that he chatted with individuals who sent files containing CP to him through a Dropbox link. Agents were able to recover at least 150 still images and 50 videos containing CP from MOORE’s Dropbox account. Additionally, forensic examination uncovered at least 1,000 images and 100 videos stored on the defendant’s cellular phone. The defendant’s collection contained material that portrayed sadistic or masochistic conduct. Based on the investigation, MOORE is responsible for receiving and possessing at least 12,400 images of CP through the use of a computer or interactive computer service.
Investigation of this case was conducted by the Pitt County Sheriff’s Office. Assistant United States Attorney Ethan Ontjes represented the government.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Atlantic Beach Attorney Pleads Guilty to EmbezzlementRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that William Reid Penuel (37, Ponte Vedra Beach) has pleaded guilty to embezzlement from a bankruptcy estate. He faces a maximum penalty of five years in federal prison and restitution estimated at approximately $151,000. A sentencing date has not yet been set.
According to court records, between March 2015 and July 2015, Penuel was serving as the Chapter 7 Trustee in a pending business bankruptcy case in Tallahassee, Florida when he embezzled estate funds held in a bank account, in Duval County. At the time, Penuel was a licensed attorney whose office was located in Atlantic Beach. After becoming the Chapter 7 Trustee for the debtor, Premier Bank Holding Company, Penuel assumed responsibility for approximately $909,000 in estate funds, which he deposited into his bank account. Penuel began diverting estate funds, which had been authorized by the bankruptcy court to pay certain expenses, to his own use. As the authorized signor on the estate bank account, Penuel made withdrawals and then re-deposited the monies into other accounts that he controlled. Once the funds were placed into his operating account, Penuel withdrew the funds. The scheme involved over 20 withdrawals from the estate bank account, totaling approximately $151,239.
This case was investigated by the Federal Bureau of Investigation – Jacksonville Office. It is being prosecuted by Assistant United States Attorney Dale Campion.
Atlanta Kilogram Cocaine Supplier Sentenced to 100 Months in PrisonRead the Press Release
Contact Person: JD Rowell (803) 929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles stated today that Bryant Christopher Ford of Mableton, Georgia was sentenced today in federal court in Columbia, South Carolina, after having pled guilty to conspiracy to possess with intent to distribute cocaine in violation of federal law. Chief United States District Judge Terry L. Wooten of Columbia sentenced Ford to 100 months incarceration, followed by 3 years supervised release. As part of the sentence, Judge Wooten also ordered that Ford is required to forfeit over $300,000.00 in cash and other assets he purchased or used during the drug trafficking conspiracy.
Evidence presented at the change of plea hearing established that the FBI conducted surveillance on Ford and Harold McFadden from April through June of 2015. On June 16, 2015, Agents followed McFadden to an apartment complex near Augusta, Georgia, where McFadden and Ford met out of view of the surveillance agents. Shortly after Ford and McFadden met, McFadden was stopped by Troopers with the South Carolina Highway Patrol that were working with the FBI. A search of McFadden’s van revealed 5 kilograms of powder cocaine hidden in an aftermarket “trap” compartment behind the dash of the van. Paperwork in the van confirmed that McFadden had purchased the van from Ford several months prior.
On that same day, FBI Agents in the Southern District of Georgia received approval to execute a search warrant at Ford’s home in Mableton, Georgia. The search revealed $304,431.00 in cash (some of which was in heat sealed bags), approximately 28 grams of powder cocaine, an industrial money counting machine, heat sealing equipment and other paraphernalia associated with drug use and/or trafficking.
Facts presented at Ford’s guilty plea and sentencing demonstrated that Ford supplied McFadden with between 40-50 kilograms of powder cocaine and over 600 kilograms of marijuana during the course of their drug dealing activities. In total, Ford agreed to forfeit the money that was seized at his house ($304,431.00), two vehicles, and four Rolex watches. The defendant also agreed to pay a $250,000.00 money judgment.
McFadden was sentenced to 70 months, followed by 3 years of supervised release on January 19, 2016, after having pled guilty to conspiracy to possess with intent to distribute cocaine.
The case was investigated by agents of the Federal Bureau of Investigation and Sumter City Police Department. Assistant United States Attorney JD Rowell of the Columbia office prosecuted the case.
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14 March 2016
York Man Sentenced to 120 Months in Prison for Coercion and Enticement of A Minor to Engage in Sexual ActivityRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Gabriel Palmer, age 22, York, Pennsylvania, was sentenced to 120 months in prison by United States District Court Judge John E. Jones, III, in Harrisburg, for coercion and enticement of a minor to engage in sexual activity.
According to United States Attorney Peter Smith, Palmer sexually assaulted a teenage boy and received and distributed child pornography to coerce the minor to engage in sexual activity between 2013 and 2015.
Palmer was indicted by a federal grand jury in Harrisburg in May 2015, as a result of an investigation by the United States Postal Inspection Service, the Silver Spring Township Police Department, Homeland Security Investigations and the Cumberland County Forensics Team. The case was prosecuted by Assistant United States Attorney Daryl Bloom.
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Williamson County Man Sentenced for Methamphetamine OffensesRead the Press Release
On March 9, 2016, Jeremey A. Phillips, a/k/a "Jeremy Phillips," 29, of Marion, was sentenced for methamphetamine violations, Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
Phillips, who had previously pled guilty to a two-count indictment charging conspiracy to manufacture methamphetamine and possession of pseudoephedrine knowing that it would be used to manufacture methamphetamine, was sentenced to 60 months in federal prison, to be followed by 3 years of supervised release, and fined $400.00. The offenses occurred between 2012 and February 2015, in Williamson, Jackson, and Jefferson Counties. Evidence at the plea and sentencing hearings established that Phillips was involved with others in obtaining pseudoephedrine and manufacturing methamphetamine. At sentencing, the judge found that Phillips was responsible for the possession of more than 224 grams of pseudoephedrine.
The investigation was conducted by the Southern Illinois Enforcement Group and Marion Police Department.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
U.S. Attorney’s Office to Conduct Election Day MonitoringRead the Press Release
CHICAGO — The U.S. Attorney’s Office will monitor the primary elections in Chicago and surrounding suburbs on March 15, 2016, Zachary T. Fardon, United States Attorney for the Northern District of Illinois, announced today.
As part of the monitoring effort, the office will operate a telephone hotline for candidates or the public to report complaints related to the voting process. Two teams of Assistant U.S. Attorneys and other office personnel will monitor the hotline and be available to respond to complaints as needed.
The hotline number, staffed on Election Day only, is (312) 469-6157.
“There is no greater responsibility in a democracy than protecting the integrity of the voting process,” said Mr. Fardon. “A citizen who is entitled to vote should in no way be inhibited from doing so, and we stand ready to ensure the sanctity of the process.”
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes. Federal law also protects the rights of voters to mark their own ballot or to be assisted by a person of their choice. Violations of federal voting rights statutes carry penalties ranging from one to ten years in prison and fines of up to $250,000.
The office’s election monitoring efforts and subsequent investigations, if any, will be performed in consultation with the U.S. Justice Department. The Chicago office of the Federal Bureau of Investigation and the U.S. Marshals Service will assist in this effort by following up, if necessary, on any complaints of election fraud or voting rights infringements.
Complaints about ballot problems or discrimination can also be made directly to the Voting Section of the Justice Department’s Civil Rights Division in Washington, D.C., at (800) 253-3931 or (202) 307-2767. The Voting Section enforces the civil provisions of federal laws that protect the right to vote, including the Voting Rights Act, the Uniformed and Overseas Citizens Absentee Voting Act, the National Voter Registration Act, the Help America Vote Act and the Civil Rights Acts.
For information as to the location and hours of polling locations, Illinois residents are advised to contact the Illinois State Board of Elections by logging on to www.elections.il.gov or by calling (312) 814-6440.
Two drug dealers plead guilty to Federal charges in CharlestonRead the Press Release
CHARLESTON, W.Va. – Two men pleaded guilty today to federal drug crimes, announced Acting United States Attorney Carol Casto.
Joseph Cooper, 41, of Charleston and Las Vegas, pleaded guilty to possession of 50 or more grams of methamphetamine with intent to distribute. Law enforcement pulled Cooper over on January 20, 2016, in Saint Albans, and seized over 170 grams of methamphetamine, 70 grams of crack, and over $30,000 in cash from the car. Cooper admitted that he intended to distribute the methamphetamine throughout the Southern West Virginia area. Cooper faces a minimum of 5 years and up to 40 years in federal prison when he is sentenced on June 14, 2016.
In a separate drug prosecution, Dennis Walls, 25, of Charleston, pleaded guilty to possession with intent to distribute heroin. Walls admitted that on March 24, 2015, when agents of the Charleston Police Department’s Special Enforcement Unit came to his Fairview Drive residence to inquire about his involvement in dealing heroin in the Charleston area, they found him in the process of weighing heroin for future drug deals. Walls turned over the heroin to law enforcement, along with a .45 caliber handgun. Walls also admitted to his involvement in the distribution of heroin in the area over a several month period. Walls faces up to 20 years in federal prison when he is sentenced on June 15, 2016.
The investigation of Cooper was conducted by the United States Postal Inspection Service, the Metropolitan Drug Enforcement Network Team, and Homeland Security Investigations. Assistant United States Attorney Haley Bunn is responsible for the prosecution of Cooper. The Charleston Police Department’s Special Enforcement Unit conducted the investigation of Walls. Assistant United States Attorney John J. Frail is handling the prosecution of Walls. United States District Judge John T. Copenhaver, Jr., presided over both of the plea hearings.
These cases were brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Two Essex County, New Jersey, Men Charged in Prison Tax Scam That Used Fraudulent Tax Refunds to Pay for Attorneys and BailRead the Press Release
NEWARK, N.J. – Two East Orange, New Jersey, men are charged today with filing false federal income tax returns on behalf of inmates at the Essex County Correctional Facility (“Essex County Jail”) in order to fraudulently obtain income tax refunds that were used to pay for bail, lawyers, and other expenses, U.S. Attorney Paul J. Fishman announced.
Reginald Eaford, 45, and Winfred Moses, 48, are each charged by complaint with one count of conspiracy to defraud the United States and one count of aggravated identity theft. Both defendants are currently in custody. Moses will appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor. Eaford will appear on a date yet to be determined.
According to the complaint:
Eaford was an inmate at the Essex County Jail from approximately May 20, 2013 through Feb. 12, 2014. Law enforcement became aware that during his incarceration, Eaford deposited unusually large amounts of money into his inmate account.
Through a review of the recorded telephone calls and records maintained by the Essex County Jail, law enforcement officers learned that Eaford, Moses, and others conspired to obtain social security numbers, dates of birth, and other information from inmates at the Essex County Jail. Eaford and Moses would then generate false W-2 forms indicating that the inmates had earned income during the relevant tax year and that federal income tax had been withheld from their paychecks. Eaford and Moses would then file false federal income tax returns on behalf of the inmates and refund checks would be sent to the Essex County Jail or to Moses’s East Orange residence. The proceeds of the fraud were split among Eaford, Moses, and the relevant inmates.
According to interviews conducted by law enforcement of current and/or former inmates at the Essex County Jail, the fraudulent tax proceeds were used by inmates to pay for bail, lawyers, or other needs.
For example, on Nov. 2, 2013, Eaford placed a telephone call from the Essex County Jail to Moses. The call was recorded by the Essex County Jail. During the call, Eaford and Moses discussed the refund status for a tax return filed using a social security number belonging to an inmate at the Essex County Jail (“Inmate 1”). IRS records indicate that Inmate 1’s 2013 tax return was filed electronically on March 18, 2014 by an individual using an IP address registered at Moses’s residence. In addition, Inmate 1’s 2013 tax return included a bogus W-2 form that claimed that Inmate 1 had earned $70,021 in wages, even though he had not received any W-2 form from any employer that year.
From Jan. 28, 2014 to April 22, 2014, 60 tax returns were filed in the same manner using an IP address registered at Moses’s residence, for a total of $368,557 in fraudulently-obtained tax refunds. The majority of those fraudulent tax returns were for current or former inmates of the Essex County Jail. Of the 60 tax returns, 24 listed Moses’s residence as the taxpayer’s address and 59 of the 60 tax returns contained W-2 forms that did not match IRS records.
The conspiracy charge carries a maximum potential sentence of five years in prison. The aggravated identity theft charges carry a mandatory sentence of two years in prison that must be served consecutively to the punishment imposed on the conspiracy charge.
U.S. Attorney Fishman credited special agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, postal inspectors from the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge J.R. Ball, and the Internal Affairs Division of Essex County Jail, under the leadership of Warden Roy Hendricks, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Francisco J. Navarro of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and the allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel:
Eaford: Assistant Federal Public Defender Lisa Mack Esq., Newark
Moses: Leigh-Anne Mulrey Esq., Morristown, New Jersey
Topeka Man Sentenced for CarjackingRead the Press Release
TOPEKA KAN. – A Topeka man was sentenced Monday to 18 months in federal prison for carjacking, U.S. Attorney Barry Grissom said.
Michael Min Koy, 25, Topeka, Kan., pleaded guilty to one count of carjacking. In his plea, he admitted that on Jan. 12, 2015, he and a co-defendant physically assaulted a Topeka man and stole the keys to the victim’s 1999 Ford Mustang. The assault occurred in the 1800 block of Michigan Avenue in Topeka. The victim didn’t get his car back until March 29, 2015. The car had suffered extensive damage.
Co-defendant Marcus Anthony Montoya was sentenced to three years in federal prison.
Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jarred Maag for their work on the case.
The right prescription for West Virginia: Reducing the supply of painkillers to ease the drug epidemicRead the Press Release
The drug problem in West Virginia is complex with many moving parts and seemingly few concrete solutions. Enforcement, prevention and treatment are all important but one strategy that deserves additional attention is that of supply-side intervention. This involves taking steps to reduce the number of prescription painkillers actually prescribed and dispensed in our state. Researchers have found that when the number of pills distributed declines, the reduced supply does not recover, drug abuse decreases, and public health improves. Supply-side strategies save lives and are worth pursuing with great vigor in West Virginia.
The excessive prescribing of painkillers began in the mid-1990s as a result of aggressive and misleading marketing by certain manufacturers. It was during this time that the painkiller OxyContin was promoted as being non-addictive despite being virtually identical to heroin. Doctors were convinced by this idea and began to write scripts for it and a variety of other painkillers without hesitation. The number of prescriptions for opioids skyrocketed, and today Americans consume 81 percent of the world's oxycodone and nearly 100 percent of the world's hydrocodone. This widespread prescribing has led to thousands of annual overdose deaths, millions of pill abusers, and a demand for heroin that has reached epidemic proportions. Doctors in West Virginia write with a heavy pen, issuing more painkiller prescriptions per capita than all but two states.
What the pharmaceutical industry did in promoting pain pills was not much different than what the tobacco industry did with cigarettes: it lied about the addictive nature of its product and earned billions by deceiving naive consumers. "Big Pharma", much like "Big Tobacco", left a great deal of damage in its wake, and the costs to clean up the mess are extraordinary. One of the costs -that of treatment - is one that our state cannot afford. As a result, many West Virginians who want help for their addiction cannot afford it, cannot find it, or die trying.
There are, however, some actions that if taken will bring us closer to the end of this crisis. If I could write a prescription for West Virginia, it would look something like this:
1) Conservative prescribing practices. Doctors and hospitals should adopt policies that call for opioids to be prescribed less often, in lower doses, and for shorter durations. In fact, opioids should be a last resort for pain treatment instead of the first line of defense. These policies should also discourage the prescribing of opioids (i.e. Percocet) together with benzodiazepines (i.e. Xanax) because it's often a lethal combination.
2) Lower expectations from patients. Many of us have unreasonable expectations about how our pain should be treated. We have come to expect a 60-day supply of pain pills when something less will often do. The answer is not always a Percocet, but instead might be physical therapy, acupuncture, exercise, rest, or the use of non-narcotic pain relievers.
3) Increased accountability for deviant distributors. Wholesale distributors, pharmacies, and practitioners continue to engage in unlawful practices that cause excessive amounts of pain pills to be dispensed in West Virginia. The price to pay for this crime should be steep, to include prison time, licensure revocation, and large financial penalties.
4) Use of settlements to fund treatment. When drug companies reach financial settlements with the state or federal government for wrongdoing, a portion of the proceeds should be used to pay for treatment facilities in the affected states. This might be the only way that a state like ours will ever be able to afford adequate treatment resources.
5) Better use of prescription drug monitoring programs (PDMPs). Pharmacies should always check the PDMP (some don’t) and every state’s PDMP should be connected (they’re not) to prevent doctor-shopping and the dispensing of contra-indicated medications.
We’ve still got a long way to go, but a comprehensive and proactive supply-side strategy will help us to navigate through this painkiller-fueled storm. By keeping the pressure on the pharmaceutical industry, modifying the frequency, dose, and duration of narcotic prescriptions, and lessening our expectations as patients, West Virginia will emerge as a healthier and safer place to live and raise a family.
The Hayner Hoyt Corporation to Pay $5 Million to Resolve False Claims Act LiabilityRead the Press Release
Government Contractor and Several Individuals Admit That They Violated Laws Designed to Enhance Contracting Opportunities for Our Nation’s Service-Disabled Veterans
Syracuse-based Hayner Hoyt Corporation has agreed to pay $5 million, plus interest, to resolve allegations that its chairman and chief executive officer, Gary Thurston, its president, Jeremy Thurston, employees, Ralph Bennett and Steve Benedict and Hayner Hoyt affiliates LeMoyne Interiors and Doyner Inc., engaged in conduct designed to exploit contracting opportunities reserved for service-disabled veterans.
The United States has long used government contracting to promote small businesses in general and specifically small businesses owned by veterans who have service-connected disabilities. Congress has established a targeted procurement program for the U.S. Department of Veterans Affairs (VA), which requires the VA to set annual goals for contracting with service-disabled veteran-owned small businesses. To be eligible for these contracts, an applicant must qualify as a “small business.” In addition to being a small business, a service-disabled veteran must own and control the business and handle its strategic decisions and day-to-day management.
The settlement resolves allegations that the defendants orchestrated a scheme designed to take advantage of the service-disabled veteran-owned small business program to secure government contracts for a now-defunct company, 229 Constructors LLC, that Gary and Jeremy Thurston created and controlled and subcontracts for Hayner Hoyt and its affiliates. The Thurstons – neither of whom is a veteran – exerted significant influence over 229 Constructors’ decision-making during the bid, award and performance of these contracts in various ways, including by staffing the company entirely with then-current and former Hayner Hoyt employees and their spouses. They also provided 229 Constructors with considerable resources, which provided it with a competitive advantage over legitimate service-disabled veteran-owned small businesses neither affiliated with nor controlled by a larger, non-veteran owned corporation. Hayner Hoyt officials caused false certifications and statements to be made to the government representing that 229 Constructors met all requirements to be a service-disabled veteran-owned small business when they knew, or should have known, that 229 Constructors did not meet such requirements. By diverting contracts and benefits intended for our nation’s service-disabled veterans to Hayner Hoyt and its affiliates, the defendants undercut Congress’s intent of encouraging contract awards to legitimate service-disabled veteran-owned small businesses.
The investigation revealed that Bennett – a service-disabled veteran who allegedly ran 229 Constructors, served as its president and oversaw its $14.4 million government-contracts portfolio – was not involved in making important business decisions for the company. He was instead responsible for overseeing Hayner Hoyt’s tool inventory and plowing snow from Hayner Hoyt’s property. Jeremy Thurston set up an email account in Bennett’s name in such a way that all emails received by the veteran were automatically forwarded to him. After the government began to question 229 Constructors’ affiliation with Hayner Hoyt, Gary Thurston wrote others that he and Jeremy Thurston would likely terminate operations of 229 Constructors. A few months later, service-disabled veteran Bennett and Benedict, who was simultaneously the “co-owner” of 229 Constructors and listed on Hayner Hoyt’s website as one of its five “key” officials, transferred a total of $52,000 to Gary Thurston’s personal bank account allegedly to show their appreciation for the assistance he had provided.
Defendants make various admissions in the settlement agreement, including that their conduct violated federal regulations designed to encourage contract awards to legitimate service-disabled veteran-owned small businesses. They also admit that 229 Constructors provided more than $1.3 million in service-disabled veteran-owned small business subcontracts to Hayner Hoyt, LeMoyne Interiors and Doyner and that those companies generated $296,819 in gross profits as a result.
“Those who do business with the federal government must do so honestly,” said U.S. Attorney Richard S. Hartunian for the Northern District of New York “As today’s settlement demonstrates, this office will vigorously pursue those individuals and entities who game programs designed to help our nation’s veterans succeed in starting small businesses.”
“Federal contracting programs designed to help service-disabled veteran-owned small businesses should never be undermined by actions such as the ones taken by Hayner Hoyt Corporation officials to divert contracts to ineligible large firms,” said Inspector General Peggy E. Gustafson for the Small Business Administration (SBA). “The Office of Inspector General (OIG) will continue to work with the U.S. Department of Justice and partnering agencies in using all available remedies to deter parties from taking advantage of contracting programs designed to assist deserving service-disabled veteran-owned small businesses.”
“This settlement demonstrates the Department of Veterans Affairs, Office of Inspector General’s continued commitment to aggressively pursue individuals and companies that misrepresent themselves as service-disabled veteran-owned small businesses and deny legitimate disabled veterans the opportunity to obtain VA set-aside contracts,” said Special Agent in Charge Jeff Hughes for the Office of Inspector General for the Department of Veteran Affairs (VA-OIG). “The VA-OIG will continue to work diligently to protect the integrity of this important program, which is designed to aid disabled veterans. I also want to thank the U.S. Attorney’s Office and our law enforcement partners in this effort.”
“This civil settlement is a positive result of a joint investigation that proved Department of Defense contractor Hayner Hoyt executed a scheme to exploit and violate SBA and VA regulations in order to obtain service-disabled veteran-owned small business set aside contracts,” said Special Agent in Charge Craig W. Rupert of the Defense Criminal Investigative Service’s (DCIS) Northeast Field Office for the U.S. Department of Defense Office of the Inspector General. “Through these schemes, Hayner Hoyt denied small businesses, owned by legitimate service-disabled veterans, the opportunity to obtain government contracts. Such schemes erode public confidence and undermine the mission of our government. The DCIS and its law enforcement partners will continue to tirelessly pursue and investigate procurement fraud allegations in order to safeguard the American taxpayer and its military veterans.”
The government’s investigation was triggered by a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act, which allows private persons, known as “relators,” to file civil actions on behalf of the United States and share in any recovery. The relator in this case will receive $875,000 of the settlement proceeds. The case is docketed with the U.S. District Court for the Northern District of New York under number 14-cv-830.
The investigation and settlement were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, SBA-OIG, VA-OIG and DCIS. The United States was represented by Assistant U.S. Attorney Adam J. Katz.
The Hayner Hoyt Corporation to Pay $5 Million to Resolve False Claims Act LiabilityRead the Press Release
SYRACUSE, NEW YORK – Syracuse-based Hayner Hoyt Corporation has agreed to pay $5 million, plus interest, to resolve allegations that its Chairman and Chief Executive Officer, Gary Thurston, its President, Jeremy Thurston, employees, Ralph Bennett and Steve Benedict and Hayner Hoyt affiliates LeMoyne Interiors and Doyner Inc., engaged in conduct designed to exploit contracting opportunities reserved for service-disabled veterans.
The United States has long used government contracting to promote small businesses in general and specifically small businesses owned by veterans who have service-connected disabilities. Congress has established a targeted procurement program for the U.S. Department of Veterans Affairs (VA), which requires the VA to set annual goals for contracting with service-disabled veteran-owned small businesses. To be eligible for these contracts, an applicant must qualify as a “small business.” In addition to being a small business, a service-disabled veteran must own and control the business and handle its strategic decisions and day-to-day management.
The settlement resolves allegations that the defendants orchestrated a scheme designed to take advantage of the service-disabled veteran-owned small business program to secure government contracts for a now-defunct company, 229 Constructors LLC, that Gary and Jeremy Thurston created and controlled and subcontracts for Hayner Hoyt and its affiliates. The Thurstons – neither of whom is a veteran – exerted significant influence over 229 Constructors’ decision-making during the bid, award and performance of these contracts in various ways, including by staffing the company entirely with then-current and former Hayner Hoyt employees and their spouses. They also provided 229 Constructors with considerable resources, which provided it with a competitive advantage over legitimate service-disabled veteran-owned small businesses neither affiliated with nor controlled by a larger, non-veteran owned corporation. Hayner Hoyt officials caused false certifications and statements to be made to the government representing that 229 Constructors met all requirements to be a service-disabled veteran-owned small business when they knew, or should have known, that 229 Constructors did not meet such requirements. By diverting contracts and benefits intended for our nation’s service-disabled veterans to Hayner Hoyt and its affiliates, the defendants undercut Congress’s intent of encouraging contract awards to legitimate service-disabled veteran-owned small businesses.
The investigation revealed that Bennett – a service-disabled veteran who allegedly ran 229 Constructors, served as its president and oversaw its $14.4 million government-contracts portfolio – was not involved in making important business decisions for the company. He was instead responsible for overseeing Hayner Hoyt’s tool inventory and plowing snow from Hayner Hoyt’s property. Jeremy Thurston set up an email account in Bennett’s name in such a way that all emails received by the veteran were automatically forwarded to him. After the government began to question 229 Constructors’ affiliation with Hayner Hoyt, Gary Thurston wrote others that he and Jeremy Thurston would likely terminate operations of 229 Constructors. A few months later, service-disabled veteran Bennett and Benedict, who was simultaneously the “co-owner” of 229 Constructors and listed on Hayner Hoyt’s website as one of its five “key” officials, transferred a total of $52,000 to Gary Thurston’s personal bank account allegedly to show their appreciation for the assistance he had provided.
Defendants make various admissions in the settlement agreement, including that their conduct violated federal regulations designed to encourage contract awards to legitimate service-disabled veteran-owned small businesses. They also admit that 229 Constructors provided more than $1.3 million in service-disabled veteran-owned small business subcontracts to Hayner Hoyt, LeMoyne Interiors and Doyner and that those companies generated $296,819 in gross profits as a result.
“Those who do business with the federal government must do so honestly,” said U.S. Attorney Richard S. Hartunian for the Northern District of New York “As today’s settlement demonstrates, this office will vigorously pursue those individuals and entities who game programs designed to help our nation’s veterans succeed in starting small businesses.”
“Federal contracting programs designed to help service-disabled veteran-owned small businesses should never be undermined by actions such as the ones taken by Hayner Hoyt Corporation officials to divert contracts to ineligible large firms,” said Inspector General Peggy E. Gustafson for the Small Business Administration (SBA). “The Office of Inspector General (OIG) will continue to work with the U.S. Department of Justice and partnering agencies in using all available remedies to deter parties from taking advantage of contracting programs designed to assist deserving service-disabled veteran-owned small businesses.”“This settlement demonstrates the Department of Veterans Affairs, Office of Inspector General’s continued commitment to aggressively pursue individuals and companies that misrepresent themselves as service-disabled veteran-owned small businesses and deny legitimate disabled veterans the opportunity to obtain VA set-aside contracts,” said Special Agent in Charge Jeff Hughes for the Office of Inspector General for the Department of Veteran Affairs (VA-OIG). “The VA-OIG will continue to work diligently to protect the integrity of this important program, which is designed to aid disabled veterans. I also want to thank the U.S. Attorney’s Office and our law enforcement partners in this effort.”
“This civil settlement is a positive result of a joint investigation that proved Department of Defense contractor Hayner Hoyt executed a scheme to exploit and violate SBA and VA regulations in order to obtain service-disabled veteran-owned small business set aside contracts,” said Special Agent in Charge Craig W. Rupert of the Defense Criminal Investigative Service’s (DCIS) Northeast Field Office for the U.S. Department of Defense Office of the Inspector General. “Through these schemes, Hayner Hoyt denied small businesses, owned by legitimate service-disabled veterans, the opportunity to obtain government contracts. Such schemes erode public confidence and undermine the mission of our government. The DCIS and its law enforcement partners will continue to tirelessly pursue and investigate procurement fraud allegations in order to safeguard the American taxpayer and its military veterans.”
The government’s investigation was triggered by a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act, which allows private persons, known as “relators,” to file civil actions on behalf of the United States and share in any recovery. The relator in this case will receive $875,000 of the settlement proceeds. The case is docketed with the U.S. District Court for the Northern District of New York under number 14-cv-830.
The investigation and settlement were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, SBA-OIG, VA-OIG and DCIS. The United States was represented by Assistant U.S. Attorney Adam J. Katz.Telephone Scammers Continue to Target Idaho ResidentsRead the Press Release
BOISE – The United States Attorney’s Office and the United States Marshals Service are advising Idaho residents to be aware of telephone calls threatening individuals of a pending arrest warrant. Calls have been reported in the Boise, Pocatello and Twin Falls area.
It was recently reported that Idaho residents have received a phone call from a person claiming to be a Deputy U.S. Marshal. The calls are coming from (208) 252-6977. The caller identifies himself as “David Perry” and leaves the phone number (208) 917-8141. When unsuspecting citizens return the call an automated message says:
You have reached the U.S. Marshals Service serving the Northern District of Idaho. If this is an emergency, hang up and dial 911. If you have information regarding the whereabouts of an absconded fugitive please remain on the line for the next available deputy. For all other inquiries please listen closely because our menu options have recently changed. For warrants division, press 1; for civil processing division, press 2; for gang enforcement, press 3; for the officer in charge, press 4; for clerk of courts, press 5.
Once connected to a person, individuals are given the choice to avoid a federal arrest warrant by paying a fine to settle out of court. The individual may be instructed to purchase a prepaid Visa or MasterCard, and to provide the number on the back of the card to the caller.
Because the telephone calls are continuing to occur, the United States Attorney wants the public to be aware of these scam calls. Officers do not notify people of arrest warrants by phone. A valid arrest warrant would be served in person by a Deputy U.S. Marshal or other law enforcement officer. Persons receiving such a telephone call are cautioned not to provide any information and to notify the U.S. Marshals Service immediately.
“I urge everyone who receives this type of phone call to be very skeptical, or better yet, simply hang up the phone,” said Brian T. Underwood, United States Marshal for the District of Idaho. “This is not a typical way that the U.S. Marshals resolve warrant related matters.”
It is a crime for an individual to falsely represent himself or herself as a federal official or Deputy United States Marshal. Accordingly, this scam and any similar fraudulent conduct will be investigated by the U.S. Marshals Service, in partnership with the FBI.
Tax Return Preparer Gets 30-Month Federal Prison SentenceRead the Press Release
DALLAS – A local commercial tax preparer, Rudy Contreras, was sentenced to 30 months in federal prison, following his guilty plea in November 2015 to one count of aiding and assisting in the preparation or presentation of a false or fraudulent tax return, announced U.S. Attorney John Parker of the Northern District of Texas.
Contreras was also ordered to pay $75,221 in restitution to the Internal Revenue Service; he must surrender to the Bureau of Prisons on June 15, 2016.
According to the factual resume filed in the case, Contreras did business in Garland, Texas, as Amigo’s Taxes, located on South Garland Avenue, and then later as Priority One Taxes, located on North First Street. Because he was not eligible to obtain an Electronic Filer Identification Number (EFIN), Contreras obtained an EFIN and a Preparer Tax Identification Number (PTIN) in his wife’s name, even though she did not work at Amigo's Taxes and did not prepare tax returns.
When IRS Special Agents conducted a search warrant in April 2012 at Amigo's Taxes, according to the factual resume, Contreras admitted that he was the only tax return preparer at the business. Later, however, Contreras closed Amigo's Taxes and opened Priority One Taxes. This time Contreras obtained an EFIN and PTIN in his brother's name, even though he did not work at Priority One Taxes and did not prepare tax returns.According to the factual resume, IRS Criminal Investigation identified 24 fraudulent tax returns, involving 17 clients, prepared by Contreras for the years 2010, 2011 and 2012, which resulted in a loss to the government of $75,221. The 17 clients all claimed that Contreras portrayed himself as a knowledgeable and experienced return preparer, and they did not know he falsified their tax returns with false forms and false expenses.
Assistant U.S. Attorney Joseph Revesz was in charge of the prosecution.
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Statement of U.S. Attorney Jill Westmoreland Rose on the U.S. Court of Appeals Fourth Circuit Decision in U.S. v. Nicholas RaginRead the Press Release
CHARLOTTE, N.C. – Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina, provided the below statement regarding the recent U.S. Court of Appeals decision in U.S. v. Ragin:
“Mr. Ragin’s prosecution, conviction and incarceration kept the community safe. While we are disappointed that the Court of Appeals did not accept the findings of fact by the trial judge who we believe was in the best position to observe the conduct of defense counsel during the trial, public safety continues to be our priority and we are committed to retrying Mr. Ragin for the crimes he committed.”
A copy of this press release and the court’s opinion may be found on the website of the U.S. Attorney’s Office for the Western District of North Carolina.
Sierra National Forest Marijuana Cultivator Pleads GuiltyRead the Press Release
FRESNO, Calif. — Francisco Javier Gomez-Rodriguez, 38, of Mexico, pleaded guilty today to conspiring to manufacture, distribute and possess with intent to distribute marijuana grown in the Sierra National Forest in Madera County, United States Attorney Benjamin B. Wagner announced.
According to court documents, co-defendant Humberto Ceballos-Rangel, 37, also of Mexico, was found at a campsite within the marijuana cultivation site, where agents found 5,904 marijuana plants. Gomez-Rodriguez and two other co‑defendants, Alejandro Ramirez-Rojo, 31, of Mexico, and Anthony Isaac Santibanez, 20, of Woodlake, California, were found a short time later approaching the grow site in a vehicle delivering supplies.
Ceballos-Rangel previously pleaded guilty. Both Gomez-Rodriguez and Ceballos-Rangel have agreed to make restitution to the U.S. Forest Service for the damage they inflicted on the public land and natural resources as a result of their marijuana cultivation activities. Native vegetation was cut down, and water was diverted from a nearby creek to irrigate the marijuana plants. A large quantity of trash was also found at the site.
Gomez-Rodriguez is scheduled for sentencing before U.S. District Judge Lawrence J. O’Neill on June 13, 2016. Ceballos-Rangel is scheduled for sentencing on April 18. They face a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Santibanez and Ramirez-Rojo are scheduled for trial on August 9. They face additional charges, including depredation of public land and natural resources. The charges are only allegations; these defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California Department of Justice’s Campaign Against Marijuana Planting (CAMP), the California Department of Fish and Wildlife, and Madera County Narcotic Enforcement Team (MADNET). Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Schenectady Man Pleads Guilty to Identity TheftRead the Press Release
ALBANY, NEW YORK – A Schenectady man pleaded guilty on Friday to stealing another person’s identity and using that person’s information to apply for a United States passport and public benefits.
The announcement was made by United States Attorney Richard S. Hartunian, Special Agent in Charge David Schnorbus of the Department of State Diplomatic Security Service, and Edward J. Ryan, Special Agent-In-Charge of the Social Security Administration Office of the Inspector General.
During his plea on Friday before United States District Judge Mae A. D’Agostino, the man identified himself as Fernando Lugo, a citizen of the Dominican Republic residing in Schenectady prior to his arrest. He admitted that in April 2010, he submitted an application for a U.S. passport to the U.S. Post Office in Schenectady. In February 2015, he applied to receive Medicaid benefits with the Schenectady County Department of Social Services. On both applications, he used the name, Social Security Number, and date of birth of another person he knew.
The defendant faces at least 2 years and up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years when he is sentenced on July 7, 2016 by Judge D’Agostino. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the Department of State Diplomatic Security Service and the Social Security Administration Office of the Inspector General, and is being prosecuted by Special Assistant U.S. Attorney Jason W. White.
San Diego Man Sentenced to 96 months in Prison for Making False Statements in an International Terrorism InvestigationRead the Press Release
For Further Information, Contact: Assistant U.S. Attorney John Parmley (619) 546-7957 and Michael Kaplan (619) 546-7927
NEWS RELEASE SUMMARY – March 14, 2016
SAN DIEGO – Mohamad Saeed Kodaimati of San Diego was sentenced in federal court today to eight years in prison for making false statements to FBI and State Department officials during a terrorism-related interview at the U.S. Embassy in Ankara, Turkey.
Kodaimati, a naturalized U.S. citizen, pleaded guilty in October 2015 to one count of False Statements Involving International Terrorism. As part of his guilty plea, Kodaimati acknowledged that he lied in March 2015 when he said he did not know any members of Islamic State in Iraq, a designated foreign terrorist organization known as ISIL; that he falsely claimed that while in Syria he was never involved with Al Nusrah, also a foreign terrorist organization; and that he again lied when he said that while in Syria he had never engaged in combat or fired a weapon at anyone.
In his plea agreement, Kodaimati admitted that he knew a member of ISIL and that while in Syria he participated in a battle against the Syrian regime, including shooting at others, in coordination with Al Nusrah fighters.
During today’s sentencing hearing, U.S. District Judge Anthony Battaglia noted that the crime involved “very, very serious” false statements and that an eight year sentence was necessary to deter others who might be tempted to lie when national security is at stake.
“The defendant deliberately hid his connections to terrorists and the fact that he participated in combat in Syria,” said U.S. Attorney Laura Duffy. “This is an appropriately severe sentence that underscores the very serious nature of a crime that has the potential to jeopardize our national security.”
“This international terrorism investigation that started in Ankara, Turkey and ended up in San Diego, California, exemplifies the tireless efforts of the FBI's Joint Terrorism Task Force (JTTF) members to aggressively investigate and prosecute those who engage in international terrorism activity,” said FBI Special Agent in Charge, Eric S. Birnbaum. “Today's sentencing will hold Mr. Kodaimati accountable for his lies and dissuade others from lying to FBI agents regarding international terrorism matters.”
“This investigation underscores the serious threat posed by the violent propaganda being spread by international terrorist organizations both here and abroad,” said Dave Shaw, special agent in charge for U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in San Diego. “I commend the San Diego Joint Terrorism Task Force for its outstanding work to connect the dots in this complicated case, which eventually tied back to San Diego. HSI is using all of the tools and authorities at its disposal to promote national security and protect our citizens.”
Kodaimati was born in Syria and became a naturalized U.S. citizen in September 2008. In December 2012, Kodaimati travelled from San Diego to Istanbul and was in Syria and Turkey until his return to the United States.
In March 2015, he met with an FBI agent and a State Department agent at the U.S. Embassy in Ankara, Turkey, where he made the false statements.
Kodaimati eventually returned to San Diego on March 29, 2015. He was arrested by FBI agents and members of the San Diego Joint Terrorism Task Force (JTTF) in Rancho Bernardo, California, without incident on April 22, 2015.
DEFENDANT Case Number: 15cr1298-AJB
Mohamad Saeed Kodaimati Age 25 San Diego
SUMMARY OF CHARGES
False Statements Involving International Terrorism, in violation 18 U.S.C. 1001(a)(2)
Maximum penalty eight years in prison, $250,000 fine
INVESTIGATING AGENCIES
Federal Bureau of Investigation
San Diego Joint Terrorism Task Force
Homeland Security Investigations
Randolph County Resident Sentenced for Methamphetamine OffensesRead the Press Release
On March 9, 2016, John G. Haslett, 41, of Percy, was sentenced for methamphetamine offenses, Acting United States Attorney for the Southern District of Illinois James L. Porter announced today.
Haslett, who had previously pled guilty to conspiracy to manufacture methamphetamine and possessing pseudoephedrine knowing that it was going to be used to manufacture methamphetamine, was sentenced to 65 months in federal prison, to be followed by 3 years supervised release, and fined $200.00. Evidence at the plea and sentencing hearings established that Haslett was involved with co-defendants Michael Boyt, Jr., and Russell Stokes and others in the manufacture of methamphetamine. Haslett provided pseudoephedrine to multiple other persons and allowed others to manufacture methamphetamine on his property. The offenses occurred from 2013 to January 2015, in Perry, Randolph, Williamson, Jackson, and Franklin Counties. Co-defendants Boyt, Jr., and Stokes have previously received sentences of 60 months and 100 months, respectively, for their roles in the methamphetamine conspiracy.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Steeleville Police Department, Coulterville Police Department, Sparta Police Department, Perry County Drug Task Force, and Illinois State Police Methamphetamine Response Team. The Randolph County State’s Attorney’s Office also assisted in the investigation.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Providence Resident Sentenced to 13 Years in Prison on Firearms, Hobbs Act Conspiracy ChargesRead the Press Release
PROVIDENCE, R.I. – Allen Prout, 44, of Providence, was sentenced on Friday to 13 years in federal prison on firearms and robbery conspiracy charges relating to his June 2014 plan to rob a drug dealer and a robbery conspiracy charge relating to his involvement in an armed robbery in September 2012.
On October 29, 2015, Prout pleaded guilty to one count each of conspiracy to commit Hobbs Act robbery, possession of a firearm in furtherance of a crime of violence and being a felon in possession of a firearm in connection with the June 2014 robbery conspiracy. On that same date, Prout pleaded guilty to one count of conspiracy to commit Hobbs Act robbery in connection with the armed robbery in September 2012. At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Prout to serve 3 years supervised release upon completion of his prison term.
Prout’s sentence is announced by United States Attorney Peter F. Neronha, West Warwick Police Chief Colonel Richard G. Silva and Daniel J. Kumor, Special Agent in Charge of the Boston field division of ATF.
At the time of his guilty plea, Prout admitted to the court that on June 6, 2014, he and a co-conspirator, Emmett Blyden, 45, of Providence, took possession of firearms they intended to use to rob a drug stash house in Providence. The defendants believed that two kilos of heroin and a substantial amount of cash were being stored at the house. The two men were arrested moments after taking possession of the firearms.
Blyden pleaded guilty on September 22, 2015, to conspiracy to commit Hobbs Act robbery and being a felon in possession of a firearm. He was sentenced on January 5, 2016, to 96 months in federal prison, to be followed by 3 years supervised release.
At the time of his guilty plea, Prout also admitted to the court that he participated in a conspiracy in September 2012 to rob an individual at gun point of money the victim intended to use to purchase a significant quantity of oxycodone pills. According to court records, Prout and a co-defendant, Kiplagatt Stewart, 41, of Providence, posed as drug dealers in order to gain access to the home of the victim. Instead of selling the victim oxycodone pills, Prout and Stewart robbed the victim at gunpoint of approximately $14,000 in cash.
Stewart was sentenced on October 22, 2015, to 84 months in federal prison, to be followed by 3 years supervised release. Stewart pleaded guilty on June 17, 2015, to conspiracy to commit Hobbs Act robbery.
The cases were prosecuted by Assistant U.S. Attorneys Milind M. Shah, with the assistance of First Assistant U.S. Attorney Stephen G. Dambruch and Assistant U.S. Attorney Adi Goldstein.
Providence Police and Rhode Island State Police assisted West Warwick Police and ATF in the investigation of these matters.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Pottawattamie County Man Sentenced to Prison for Methamphetamine and Felon in Possession of a Firearm ChargesRead the Press Release
COUNCIL BLUFFS, IA – On March 11, 2016, Carlton Allan Owens, 57, of Council Bluffs, Iowa, was sentenced by Senior United States District Court Judge Robert W. Pratt, to 144 months in prison for Possession with Intent to Distribute Methamphetamine and 120 months imprisonment for Felon in Possession of a Firearm, announced Acting United States Attorney Kevin E. VanderSchel. The two prison terms will be served concurrently. Owens’ term of imprisonment will be followed by five years of supervised release.
Owens pleaded guilty to the charges on November 10, 2015. According to the plea agreement, Council Bluffs police officers responded to a domestic violence call involving Owens. Upon arrival at the scene, officers contacted Owens, who was standing next to his motorcycle. Owens was arrested for domestic violence and a search of Owens and his property revealed over 600 grams of methamphetamine, a loaded handgun, and a large amount of cash. Prior to June 2015, Owens had been convicted of a felony offense.
This matter was investigated by the Council Bluffs Police Department and the Southwest Iowa Narcotics Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Philadelphia Man Sentenced to 33 Months for Passing $17,900 in Counterfeit MoneyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Harvey Blake, age 57, of Philadelphia, Pennsylvania, was sentenced today to 33 months in prison by United States District Court Judge John E. Jones, III, in Harrisburg, for passing $17,400 in counterfeit $100 bills in four central Pennsylvania counties between October 2014 and March 2015.
Judge Jones also ordered that Blake make restitution to the victims as follows: Lowe’s - $7,600; Home Depot - $9,000; Staples - $300; Wal-Mart - $300; and Giant - $300.
According to United States Attorney Peter Smith, Blake was charged in a one count indictment in July 2015 with passing $17,400 in counterfeit $100 bills in Dauphin, Franklin, York and Cumberland Counties. The bills were used to purchase merchandise at Home Depot, Lowes and Walmart stores in the four counties. Blake pled guilty to the indictment in October 2015.
The case was investigated by the Harrisburg office of the United States Secret Service, and the police departments of Lower Paxton Township, Swatara Township, and Hampden Township, as well as the loss prevention personnel for the affected stores. Assistant United States Attorney William A. Behe prosecuted the case.
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New York Tax Return Preparer Pleads Guilty to Preparing False Tax ReturnsRead the Press Release
A New York tax return preparer pleaded guilty today in the U.S. District Court for the Eastern District of New York in Central Islip, New York, to one count of aiding and assisting in the preparation of a false tax return, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to court documents, Thelma Rodriguez-Garden, 54, owned and operated a tax preparation business called Garden Insurance Agency Corporation, which was located in Bay Shore, New York. Rodriguez-Garden prepared false individual income tax returns for clients of Garden Insurance Agency for tax years 2008 through 2011. On the tax returns, Rodriguez-Garden included grossly inflated or wholly fictitious itemized deductions for unreimbursed employee expenses. The information to which Rodriguez-Garden pleaded guilty alleges that she filed 47 false tax returns that caused a loss to the government of more than $100,000.
“Today’s plea is a reminder that tax return preparers who knowingly include false items on their clients’ returns face criminal investigation, prosecution and incarceration,” said Acting Assistant Attorney General Ciraolo. “Working with its partners within the Internal Revenue Service (IRS), the Tax Division remains committed to pursuing these offenders and holding them accountable for their fraudulent conduct.”
Rodriguez-Garden faces a statutory maximum sentence of three years in prison and a $250,000 fine. As part of her plea agreement, Rodriguez-Garden agreed to pay restitution to the IRS in the amount of $107,459. U.S. District Judge Joseph F. Bianco set sentencing for July 11.
Acting Assistant Attorney General Ciraolo thanked special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorneys Jeffrey Bender and Brittney Campbell of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
New York Man Convicted of Computer Hacking Internet Service ProviderRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Dariusz J. Prugar, age 32, of Syracuse, New York, was convicted on Friday, after a week-long trial before a federal jury in Harrisburg, Pennsylvania, of computer fraud and wire fraud. Prugar was continued on bail and no date is set for sentencing. Senior U.S. District Court Judge Sylvia H. Rambo presided over the trial.
According to United States Attorney Peter Smith, Prugar was the network administrator for Pa Online, an internet service provider formerly located in Enola, Pennsylvania. Prugar was fired by Pa Online in June 2010. Days later, Prugar secretly hacked into the business’s computer network which caused files and directories to be erased and ultimately caused the network to crash. For approximately a week, Pa Online was unable to provide sustained service to over 5,000 residential customers and over 500 business customers. He also installed numerous “backdoor” entry points into the network so that he could access the network again.
Over a dozen former employees, outside consultants, and former clients of Pa Online testified to the impact the outage had. Former employees and outside consultants hired by Pa Online testified that the crash caused them to work for days attempting to return service. Former customers described their inability to access tools essential to their businesses, which resulted in the customers terminating their relationship with Pa Online. The business owner testified he had the entire network rebuilt to prevent Prugar from sabotaging the business again.
The computer fraud charge related to Prugar’s unlawful intrusion to the computer network, which caused thousands of dollars in damage. The wire fraud charge related to Prugar’s attempt to cause financial loss to his former employer through the use of interstate wires.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Michael A. Consiglio and Carl D. Marchioli.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Naples Man Sentenced to More Than Six Years for Operating an $8 Million Investment SchemeRead the Press Release
Fort Myers, Florida – United States District Judge Sheri Polster Chappell today sentenced Dorian Garcia (31, Naples) to six years and six months in federal prison for wire fraud. As part of his sentence, Garcia will forfeit pieces of artwork that were purchased with proceeds of the fraud, along with a $10,000 retainer that he had paid to a law firm. The Court also entered a money judgment in the amount of $3,108,734.52, the proceeds of the scheme. Garcia will also be required to pay restitution in the amount of approximately $5 million, representing the approximate loss to victims. A restitution hearing has been scheduled for May 16, 2016.
According to the plea agreement, from February 2009 through April 2015, Garcia induced investors to provide money to him based on misrepresentations that he would invest their funds and guarantee their initial investment, as well as a specific rate of return over a defined term of the investment. As part of the scheme, Garcia presented investors with false bank statements indicating large account balances, when in fact the true amounts were a small fraction of what Garcia claimed to be in the accounts, and were insufficient to support the guarantees he had promised. Garcia facilitated the scheme through a number of companies that he controlled, including DG Wealth Management ("DG Wealth"), Macroquantum Capital LLC ("Macroquantum"), Commodity Projections and Predsyst LLC, and UKUSA Currency Fund LP ("UKUSA"). According to statements made during the sentencing hearing, Garcia solicited and received at least $8 million dollars from approximately 111 victims located throughout the United States. Garcia only repaid approximately $3,990,285.48 to any of the victims.
Garcia only invested a small portion of the funds provided by investors. After investors had provided him with money, Garcia continued to send them false trading statements reflecting that he had earned trading profits, when he had not. Instead, Garcia used a greater portion of investors’ funds to repay other investors by disguising new investments as trading profits. Garcia also used a significant portion of the invested funds for personal and business expenses, including artwork, rent, luxury car payments, domestic help, including a personal chef, jewelry, and dinner parties.
When investors began asking for their money back, Garcia provided a series of misrepresentations as to why he could not do that and often insisted that they sign new agreements falsely appearing to convert their investments into loans. In addition, Garcia encouraged investors to mislead others, including investigators, about the true nature of their investment with him, and encouraged them to falsely claim that they had made a loan to his companies when, in fact, they had provided Garcia money to invest on their behalf.
This case was investigated by the Federal Bureau of Investigation, with assistance from the United States Commodity Futures Trading Commission (Chicago, Illinois), and the State of Florida, Office of Financial Regulation. It is being prosecuted by Assistant United States Attorney David G. Lazarus.
The Commodity Futures Trading Commission (CFTC) offers a free online tool for potential public investors to conduct due diligence on potential financial counselors. CFTC SmartCheck provides easy access to free tools to check the background of financial professionals, and provides information on the latest fraud schemes. For more information, visit www.smartcheck.cftc.gov.
Mount Pleasant Woman Indicted for Wire Fraud and Filing False Tax ReturnsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Charleston, South Carolina ---- United States Attorney Bill Nettles announced an indictment charging Cynthia Cave, age 45, of Mount Pleasant, with Wire Fraud, a violation of Title 18, U. S. C. § 1343, and Filing a False Tax Return, a violation of Title 26, U. S. C. §7206(1).
Cave is charged with devising a scheme to defraud her employer, a plastic surgery practice owned and operated by a single individual physician in Mt. Pleasant, S.C., starting in or around 2007 and continuing through 2011. The indictment alleges that Cave, used her position as office manager to utilize the medical practice’s funds to pay for, among other things, personal services, retail items, meals, and travel, all unrelated to the practice and without the knowledge or authorization of the practice’s owner. The indictment also alleges that Cave willfully made and subscribed false Form 1040s in three separate tax years that she did not believe to be true and correct as to every material matter.
The maximum penalties that Cave could receive are 20 years imprisonment if convicted of Wire Fraud and 10 years imprisonment if convicted for Filing a False Tax Return. The Indictment is the result of an investigation conducted by the Federal Bureau of Investigation and the Internal Revenue Service. Assistant United States Attorney Matt Austin of the Charleston office is prosecuting the case.
Mr. Nettles stated that the charges in this Indictment are merely accusations and that the defendants are presumed innocent until and unless proven guilty.
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Montgomery County Oxycodone Distributor Sentenced to Three Years in PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Philip Rice D’Avanzo, age 29, of Bethesda, Maryland, today to three years in prison, followed by three years of supervised release, and ordered D’Avanzo to pay a $10,000 fine, for conspiracy to distribute and possess with intent to distribute oxycodone. Judge Chuang also entered an order requiring D’Avanzo to forfeit three luxury wristwatches, his pick-up truck and $241,352 in cash.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to D’Avanzo’s plea agreement and court documents, from June 2014 through September 25, 2014, D’Avanzo, Richard Michael Mathisen, and others, conspired to distribute oxycodone. As part of the conspiracy, co-conspirators obtained MRIs, which another co-conspirator altered to make them appear as though the individuals required prescriptions for pain medication. The co-conspirators either gave or sold to D’Avanzo or Mathiesen all or some of the oxycodone obtained from the prescriptions. The defendants then used some of the oxycodone for themselves and distributed some of the oxycodone to others.
According to D’Avanzo’s plea agreement, on September 25, 2014, D’Avanzo went to Mathisen’s residence and at Mathisen’s request took 18 oxycodone pills, 10 methadone pills and 45 amphetamine and detroampehetamine pills, that Mathisen wanted removed from his home in case law enforcement officers searched his house. D’Avanzo put the drugs in his truck. Later that day, Montgomery County Police officers executed a search warrant at D’Avanzo’s residence. In addition to recovering the pill bottles in the names of people who did not reside at his residence, law enforcement recovered both a shotgun and a semi-automatic assault rifle next to D’Avanzo’s bed, and eight 30-round magazines, including one that was fully loaded and was found adjacent to the semi-automatic assault rifle.
A search warrant was also executed at Mathisen’s residence on September 25, 2014, and Montgomery County Police seized pill bottles in the names of individuals who did not reside at his residence.
D’Avanzo admitted that during his participation in the drug conspiracy between 15 and 60 grams of oxycodone were distributed. D’Avanzo used proceeds from the conspiracy to purchase three luxury wristwatches, which he must forfeit along with his pick-up truck and $241,352 in cash.
On February 3, 2016, Richard Michael Mathisen, age 29, of Rockville, Maryland was sentenced to nine years in prison for conspiring to distribute oxycodone. Judge Chuang also entered an order requiring him to pay a $60,000 fine.
United States Attorney Rod J. Rosenstein commended the ATF and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Lindsay Eyler Kaplan, who prosecuted the case.
Modesto Tri Counties Bank Robber Sentenced to over 26 Years in PrisonRead the Press Release
FRESNO, Calif. — Lloyd George Kenney, 65, was sentenced today by United States District Judge Anthony W. Ishii to 26 years and seven months in prison for an armed bank robbery he committed at the Tri Counties Bank in Modesto. The sentencing followed his conviction by a jury in December 2015 of armed bank robbery, using a firearm during a crime of violence, and of being a felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.
According to evidence presented at trial, on the morning of May 25, 2012, Kenney robbed the Tri Counties Bank located inside the Raley’s grocery store at Floyd Avenue in Modesto. Kenney was armed with a semi-automatic handgun and was heavily disguised, wearing a hockey helmet, facemask, long black coat and gloves. He took $2,872 from tellers at gunpoint and fled on a bicycle into a neighborhood to the east of the store where he had parked a van earlier.
Within minutes of being alerted to the robbery, a Modesto police officer saw Kenney, who was still wearing the helmet, enter his van and begin to drive away. The officer pulled the van over and Kenney was taken into custody. During a search of the van, officers found the cash taken from the Tri Counties Bank, Kenney’s bike, a hockey helmet, a mask, a loaded Glock handgun and a loaded Browning handgun. While searching Kenney, officers found a police scanner set to channels used by the Modesto Police Department.
Court records reflect that Kenney had federal felony convictions in 1984 and 1985, as well as a felony conviction in San Mateo Superior Court in 1974.
This case was the product of an investigation by the Federal Bureau of Investigation and the Modesto Police Department. Assistant United States Attorneys Michael Frye and Mia Giacomazzi prosecuted the case.
Mississippi Man found guilty of multiple drug trafficking crimesRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a jury has found a Mississippi man guilty of two drug trafficking crimes based on his efforts to distribute methamphetamine and crack cocaine in late 2013.
Charlie B. Lewis, III, a/k/a “Little Chuck,” a/k/a “LC,” 28, originally of Grenada, Mississippi, was convicted by the jury of being a member of a drug trafficking conspiracy whose aim was to distribute methamphetamine and crack cocaine in Anchorage. The jury also convicted Lewis of actually selling methamphetamine on September 25, 2013. The jury acquitted Lewis on a related firearms count.
According to Assistant U.S. Attorneys Stephanie C. Courter and Timothy D. Edmonds, who prosecuted the case, the evidence at trial showed that Lewis relocated to Anchorage several years ago and began dealing illegal drugs shortly thereafter. Specifically, between September and December 2013, Lewis worked with several different people in order to sell methamphetamine and crack cocaine.
On September 25, 2013, Lewis and his co-defendant, Michael Ewing, sold methamphetamine to a confidential informant working for the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Audio recordings played at trial captured Lewis arranging the deal, quoting the prices for the methamphetamine, and, ultimately, taking $800 in cash from the informant.
Lewis later sold crack cocaine as part of a separate undercover operation conducted by the Anchorage Police Department (APD). Text messages shown at trial documented Lewis arranging the deal. During the execution of a search warrant at Lewis’ residence following the deal, APD officers also recovered all of the indicia of drug trafficking activity – cocaine, crack cocaine, scales, baggies, cash, multiple cell phones, and a loaded 9mm handgun. Officers found the money used to purchase the crack cocaine in Lewis’s pants pocket.
U.S. District Judge Ralph R. Beistline presided over the trial. Judge Beistline scheduled Lewis’s sentencing for 9:00 a.m. on June 27, 2016. Lewis faces a mandatory minimum sentence of five years on the counts of conviction and a statutory maximum sentence of up to 40 years. Lewis’s co-defendant, Michael Ewing, previously pled guilty in the case and is set to be sentenced on April 6, 2016.
In announcing the sentence, U.S. Attorney Loeffler praised the work of the ATF, APD, and Homeland Security Investigations, whose investigative efforts led to Lewis’s conviction.
Man Pleads Guilty to Federal Firearms ChargeRead the Press Release
DANVILLE, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today the guilty plea of a Henry County man to a federal firearms charge.
Barry Latwan Lowe, 41, of Henry County, Virginia pled guilty today in the United States District Court for the Western District of Virginia in Danville to one count of being a previously convicted felon illegally in possession of a firearm.
“The United States Attorney’s Office continues to stays focused on getting illegal guns off the streets,” United States Attorney John P. Fishwick said today.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Henry County Sheriff’s Office. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Man Arrested in Multi-Million Dollar Ponzi SchemeRead the Press Release
BOSTON – A former Massachusetts-resident was arrested at the Miami airport on Sunday for allegedly running a Ponzi scheme.
Mark Anderson Jones, 64, who currently resides in Jamaica, was charged with wire fraud after allegedly leading investors to believe that they would be providing financing to Jamaican businesses. Jamaican banks can take time to close loans to businesses and Jones claimed that he was offering these businesses “bridge loans” as an interim measure (i.e., to “bridge” the gap between the date a loan was sought from Jamaican banks and the distribution of funds by those banks).
According to the complaint, between 2007 and 2015, Jones obtained approximately $10 million in investments from over 20 individuals. In reliance on Jones’s representations that their money would be used to fund bridge loans, Jones’s investors, including investors in Massachusetts, provided financing and expected a return on their investments. In reality, however, beginning in at least November 2014, Jones stopped using investor money to fund loans. Instead, he used new investor money to pay back other investors. It is alleged that, in November 2014 and January 2015, Jones obtained $500,000 in new investments, most of which he used to pay other investors bogus investment returns.
The statutory maximum penalty for wire fraud is 20 years in prison, three years of supervised release and a fine of $250,000, or twice the gross loss to the victim. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Carmen Ortiz and Special Agent in Charge Harold Shaw of the Federal Bureau of Investigation’s Boston Division made the announcement today. Valuable assistance was also provided by the United States Postal Inspection Service and the Internal Revenue Service’s Criminal Investigations in Boston. The case is being prosecuted by Assistant United States Attorney Sarah E. Walters, Chief of Ortiz’s Economic Crimes Unit and Special Assistant U.S. Attorney Eric A. Forni from the SEC.
The details contained in the complaint affidavit are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Los Angeles Man Sentenced to 150 Years in Prison for Sexually Abusing Minors in RussiaRead the Press Release
A Los Angeles man was sentenced today to 150 years in prison for sexually abusing three minor girls during trips to Russia over a two-year period, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
In November 2015, a jury convicted Yusef Yunosovich Abramov, 58, of five felony counts of engaging in illicit sexual conduct in foreign places. U.S. District Judge Otis D. Wright II of the Central District of California also imposed a lifetime term of supervised release.
According to the evidence introduced at trial, in June 2009, Abramov, a dual Russian and U.S. citizen, flew from Los Angeles to Russia, and shortly after his arrival, he raped a 12-year-old girl and threatened to sever her head and play soccer with it if she told anyone about the abuse. The trial evidence showed that in November 2009, Abramov again traveled to Russia and engaged in further sexual abuse of minor girls.
Trial evidence additionally demonstrated that in March 2010, believing that local schoolgirls had contacted the police, Abramov and two accomplices cornered three minor girls. Abramov threatened all three girls while wielding a knife and each man then raped one of the girls. The evidence showed that after threatening the girls’ lives, Abramov continued to rape at least two of the girls during that trip and subsequent trips to Russia.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, in cooperation with The Investigative Committee of the Russian Federation and the Moscow City Police, investigated this case. Trial Attorneys Maureen C. Cain and Ravi Sinha of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case. The Criminal Division’s Office of International Affairs also provided assistance.
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.
Lincoln Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that on March 11, 2016, Nicole Lynn Zabel, 41, of Lincoln, was sentenced to 120 months in prison for conspiracy to distribute 500 grams or more of a mixture or substance containing methamphetamine between January of 2010 and April of 2015. Zabel will serve five years on supervised release following the prison term.
Information provided to law enforcement indicated Zabel was involved in the distribution of at least five kilograms (11 pounds) of methamphetamine in the Lincoln area. On April 3, 2015, a search warrant was executed at Zabel’s apartment. Over 95 grams of methamphetamine was found.
Zabel’s co-defendant, Kenneth Ali Carman, also pled guilty to the conspiracy charge and was sentenced in January of 2016 to 57 months in prison.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Laddie Leon Guerrero Aguigui Sentenced for Receipt of Explosive Materials by Non-LicenseeRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant LADDIE LEON GUERRERO AGUIGUI, age 27, was sentenced on March 9, 2016, in the District Court of Guam to three (3) months imprisonment and, upon release, three (3) years of supervised release to include three (3) months home detention.
On or about June 2, 2014, while in the outside kitchen of his residence, Defendant AGUIGUI possessed commercial electric blasting caps. Defendant AGUIGUI had removed the leg wires from three (3) commercial electric blasting caps by making close cuts to the base of the caps. Defendant AGUIGUI had cut through the cap of the fourth (4) commercial electric blasting cap, which detonated and caused Defendant to be injured. Defendant was then transported to the Emergency Room at Guam Memorial Hospital where he was treated for his injuries. Federal and local law enforcement conducted a scene check of the outside kitchen at Defendant AGUIGUI’s residence and noted, among other things, nine (9) Commercial Electric Blasting Caps. At that time, Defendant AGUIGUI did not possess a federal explosives license within the Federal Licensing System.
U.S. Attorney Alicia A.G. Limtiaco stated, “This case unfortunately demonstrated the serious consequences of misusing explosive materials. Federal licensing requirements help ensure the safe and appropriate use of destructive devices. Our office will continue to support the enforcement of these laws and regulations to protect public safety.”
This case was investigated by Special Agents of the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Stephen F. Leon Guerrero.
Justice Department Announces Resources to Assist State and Local Reform of Fine and Fee PracticesRead the Press Release
The Department of Justice today announced a package of resources to assist state and local efforts to reform harmful and unlawful practices in certain jurisdictions related to the assessment and enforcement of fines and fees. The resources are meant to support the ongoing work of state judges, court administrators, policymakers and advocates in ensuring equal justice for all people, regardless of financial circumstance.
“The consequences of the criminalization of poverty are not only harmful – they are far-reaching,” said Attorney General Loretta E. Lynch. “They not only affect an individual’s ability to support their family, but also contribute to an erosion of our faith in government. One of my top priorities as Attorney General is to help repair community trust where it has frayed, and a key part of that effort includes ensuring that our legal system serves every American faithfully and fairly, regardless of their economic status.”
The package, which was sent to state chief justices and state court administrators throughout the country, includes the following elements:
- Dear Colleague Letter from the Civil Rights Division and the Office for Access to Justice to provide greater clarity to state and local courts regarding their legal obligations with respect to the enforcement of court fines and fees. The letter addresses some of the most common practices that run afoul of the U.S. Constitution and/or other federal laws, such as incarcerating individuals for nonpayment without determining their ability to pay. The letter also discusses the importance of due process protections such as notice and, in appropriate cases, the right to counsel; the need to avoid unconstitutional bail practices; and due process concerns raised by certain private probation arrangements.
- $2.5 million in competitive grants through the Bureau of Justice Assistance (BJA) to state, local or tribal jurisdictions that, together with community partners, want to test strategies to restructure the assessment and enforcement of fines and fees. The grant program, titled The Price of Justice: Rethinking the Consequences of Justice Fines and Fees, will provide four grants of $500,000 to agencies and their collaborative partners to develop strategies that promote appropriate justice system responses, including reducing unnecessary confinement, for individuals who are unable to pay fines and fees. BJA will award an additional grant of $500,000 to a technical assistance provider. For agencies interested in applying for this funding opportunity, BJA will host an informational webinar on March 28, 2016, at 11:30 a.m. EDT to describe the background, key concepts and requirements of the solicitation. To register, please follow this link.
- Support for the National Task Force on Fines, Fees and Bail Practices, which is led by the Conference of Chief Justices and the Conference of State Court Administrators. The task force is being funded by BJA and is also supported by the State Justice Institute. It is comprised of leaders from the judiciary, state and local government, the advocacy community and the academy. The task force will draft model statutes, court rules and procedures, and will develop an online clearinghouse of best practices. Department officials will also serve as ex officio members of the task force.
- Resource Guide that assembles issue studies and other publications related to the assessment and enforcement of court fines and fees. The resource guide, compiled by the Office of Justice Programs Diagnostic Center, helps leaders make informed policy decisions and pursue sound strategies at the state, local and tribal levels.
Today’s announcement follows a seminal two-day convening held by the Justice Department and the White House in Washington, D.C., on Dec. 2 and 3, 2015. Judges, court administrators, researchers, advocates, prosecutors, defense attorneys and impacted individuals came together to discuss challenges surrounding fines and fees. The convening made plain the existence of unlawful and harmful practices in some jurisdictions and highlighted a number of promising reform efforts already underway. At the meeting, participants and department officials also discussed ways in which the Justice Department could assist courts in their efforts to make needed changes. Participants specifically asked the department to provide legal guidance to state and local actors; to highlight and help develop model practices; and to provide resources for local reform efforts.
The Justice Department is committed to reforming justice-system practices that perpetuate poverty and result in unnecessary deprivations of liberty. The department discussed many of these practices in its March 2015 report on the investigation of the Ferguson, Missouri, police department and municipal court. As discussed at the December 2015 convening, however, these practices can be found throughout the nation. And their effects are particularly severe for the most vulnerable members of our communities, often with a disproportionate impact on racial minorities. The resources released today are aimed at reforming these practices and mitigating their harmful effects.
Fines and Fees Cover Letter