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Wednesday 27 January 2016
Federal Court Permanently Enjoins California Business from Accruing Payroll Tax LiabilitiesRead the Press Release
A federal court has ordered a San Diego, California provider of collection services to pay its payroll taxes as they become due, the Justice Department announced today. Judge Larry Alan Burns of the U.S. District Court for the Southern District of California entered a permanent injunction requiring Prolien Services LLC and its owner, Albert F. Quintrall, to pay Prolien’s federal payroll tax liabilities as they become due and owing.
The defendants agreed to entry of the injunction and admitted the allegations in the government’s complaint. Prolien has repeatedly failed to make sufficient federal employment tax deposits since 2009 and has amassed substantial employment tax liabilities.
Under the terms of the injunction, the business must deposit its payroll taxes and file its employment tax returns on a timely basis. The defendants are also required to notify the Internal Revenue Service (IRS) that the required tax deposits have been made and tell the IRS if they begin operating any new business. The defendants are precluded from assigning property or making any payments to other creditors until the employment tax liabilities are paid. The injunction is effective immediately.
Acting Assistant Attorney General Caroline D. Ciraolo of the Tax Division thanked the revenue officer of IRS Field Collection for investigating and preparing the civil case and the attorneys who handled the litigation.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Fall River Man Sentenced to Prison for Marijuana ConspiracyRead the Press Release
BOSTON – A Fall River man was sentenced yesterday in U.S. District Court in Boston in connection with his role in a scheme to distribute over 1,000 kilograms of marijuana in the Fall River area.
Edward Boyer, 54, a former criminal defense attorney, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to nine years in prison, four years of supervised release and ordered to forfeit $250,000. Boyer pleaded guilty in October 2015 to conspiring to distribute marijuana and money laundering.
Boyer, a former criminal defense lawyer, was disbarred after a state court conviction for interfering with a witness and bribery in 1997. In 2012, federal agents determined that Boyer was regularly shipping packages containing $20,000 to post office boxes in Mendocino, Calif. Surveillance and shipping records showed that Boyer was also regularly receiving large boxes from Mendocino. In June 2013 and May 2014, federal agents obtained search warrants and seized packages destined for Boyer which contained 6-7 kilograms of marijuana. Evidence from the investigation revealed that from 2012 to 2014, suppliers in California shipped over 1,500 kilograms of high-grade marijuana to Boyer who sold it in the Fall River area to a network of distributors. Boyer shipped the proceeds back to the suppliers in California, totaling over $8 million, and used bank accounts to transfer the funds.
At today’s sentencing hearing, the Court found that Boyer was the leader of the organization and was responsible for the distribution of over 1,000 kilograms of marijuana. Boyer’s seven co-defendants, including three individuals from California, have also been convicted and are awaiting sentencing.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Kristina O’Connell, Acting Special Agent in Charge of the Internal Revenu Service’s Criminal Investigation in Boston, made the announcement. The case was prosecuted by Assistant U.S. Attorney Ted Heinrich of Ortiz’s Narcotics and Money Laundering Unit.
Fairfax Man Sentenced for His Role in Amtrak Wreck Conspiracy and for Federal Firearm ChargeRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that James Duvall Love age 34, of Fairfax, South Carolina was sentenced to 46 months imprisonment today in federal court. On June 17, 2015, Love plead guilty to two separate charges: conspiracy to commit wire fraud/cause a train wreck/interfere with a train operator and to being a felon in possession of a firearm and ammunition, all in violation of Title 18, United States Code, Section 371 and Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). United States District J. Michelle Childs sentenced Love to 46 months imprisonment to be followed by 3 years of federal supervised release on each charge, to run concurrently, and ordered Love to make restitution to Amtrak in the amount of $46,690.27. Judge Childs stated that a sentence at the top of the sentencing guidelines range was warranted due to the “very serious” nature of the case.
With regard to the firearm and ammunition charge, evidence presented at the earlier change of plea hearing established that on August 30, 2013, an officer with the Fairfax Police Department was on routine patrol when he noticed Love walking down the road with a shotgun in his hand. When the officer turned his car around, Love laid the firearm down and kept walking. The officer approached Love and asked why he was walking down the street with a shotgun, Love replied, that someone at the club had been talking negatively toward him. Love was detained on a state weapon charge and the loaded shotgun was seized. Love was thereafter released on state bond. Further investigation revealed that Love was prohibited from possessing firearms and ammunition based upon prior state convictions for distribution of cocaine, failure to stop for blue light, and possession of crack cocaine.
With regard to the conspiracy charge, the evidence presented showed that during the early morning hours of September 6, 2013, Love and Deon Dovell Roberts parked a car at Bakers Mill Crossing in Allendale, South Carolina, in the path of an oncoming Amtrak passenger train, got out of the car prior to the collision, and then returned to the car after the collision, feigning injury, all for the purpose of submitting bogus claims for personal injuries and other losses. Love’s co-defendant Roberts plead guilty in federal court on November 2, 2015, and is awaiting sentencing.
The case was investigated by the Federal Bureau of Investigation, Amtrak Office of Inspector General, Bureau of Alcohol, Tobacco and Firearms, the Fairfax Police Department, and the Allendale County Sheriff’s Department. Assistant United States Attorneys Eric Klumb and Stacey D. Haynes of the Columbia office handled the prosecution of the case.
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Extradited Chinese National Sentenced to Nine Years for Providing U.S. Goods to Iran to Support its Nuclear ProgramRead the Press Release
BOSTON – A Chinese national was sentenced today in U.S. District Court in Boston in connection with supplying a U.S. designated Iranian Weapons of Mass Destruction (WMD) Proliferator with 1,185 pressure transducers that could be used to make nuclear weapons-grade uranium.
Sihai Cheng, a/k/a Chun Hai Cheng, a/k/a Alex Cheng, 35, a citizen of the People’s Republic of China (PRC), was sentenced by U.S. District Court Chief Judge Patti B. Saris to nine years in prison. In December 2015, Cheng pleaded guilty to two counts of conspiring to commit export violations and smuggle goods from the United States to Iran and four counts of illegally exporting U.S. manufactured pressure transducers to Iran.
“Cheng knowingly provided more than 1,000 pressure transducers to Iran which advanced its nuclear weapons capabilities,” said United States Attorney Carmen M. Ortiz. “At this critical time, the prosecution of individuals who violate our export laws – wherever they are located – is just as important, if not more, than ever before.”
“Massachusetts is a worldwide leader of innovative technology and research,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “Mr. Cheng smuggled some of that technology used to process weapons-grade uranium into Iran. As this case illustrates, the FBI will do everything it can to keep U.S. weapons technology and other restricted materials from falling into the wrong hands and hurting our nation’s security.”
“Today’s lengthy sentence serves as a warning to others that stiff penalties are waiting for anyone attempting to steal/sell American technologies or trade them to foreign powers,” said Matthew Etre, Special Agent in Charge of HSI Boston. “HSI and our law enforcement partners take the national security interests of this nation very seriously and will aggressively pursue any criminal or organization engaged in these activities.”
"Today's sentence reaffirms OEE's commitment to identifying, disrupting and enforcing illegal procurement networks and preventing sensitive WMD materials and technology from being exported contrary to U.S. export law,” said Michael S. Imbrogna Acting Special Agent in Charge of the Department of Commerce, Office of Export Enforcement, Boston Field Office. “Our special agents will continue to work hand in hand with our law enforcement partners and the U.S. Attorney's Office to protect Americans worldwide."
In 2013, Cheng was charged in an indictment with conspiring to export, and exporting, highly sensitive U.S. manufactured goods with nuclear applications to Iran from at least 2009 to 2012. Cheng pleaded guilty to conspiring with other individuals in China and Iran to illegally obtain hundreds of U.S. manufactured pressure transducers manufactured by MKS Instruments, Inc., a company headquartered in Massachusetts, and export them to Iran. As established at the sentencing hearing, Cheng knew that the parts were being supplied to Kalaye Electric Co., a U.S. designated Iranian WMD Proliferator responsible for the Government of Iran’s nuclear centrifuge program and the development of weapons-grade uranium. Pressure transducers can be used in gas centrifuges to enrich uranium and produce weapons-grade uranium and are therefore subject to strict export controls. They cannot be shipped from the United States to China without an export license or shipped from the United States to Iran at all.
At today’s sentencing, the government argued that Cheng’s conduct gravely harmed and jeopardized the national security of the United States as well as other countries throughout the world. Cheng even invoked the threat of war between Iran and the United States as a means of increasing his profits. Cheng’s procurement network was responsible for supplying Iran thousands of components for its nuclear proliferation activities and advancing Iran’s nuclear capabilities. Cheng knew he was providing Iran critical components for use in the development of weapons-grade uranium and that the parts he was supplying were going Iran’s nuclear program. Indeed, in 2009, according to evidence at the sentencing hearing, when Cheng supplied his first four shipments of pressure transducers, Iran was secretly constructing the Fordow Fuel Enrichment Plant for the purpose of developing nuclear weapons. Further, based upon expert testimony, from 2009 to 2011, when Cheng supplied Iran 1,185 MKS pressure transducers, Iran was engaged in nuclear proliferation activities.
In imposing the nine year sentence, Judge Saris found that Cheng “knowingly provided material support to develop a nuclear weapon.”
MKS Instruments, Inc., is not a target of this investigation and has been cooperating in this matter.
U.S. Attorney Ortiz, FBI SAC Shaw, HSI SAC Etre, and Commerce Acting SAC Imbrogna, made the announcement today. Assistance was also provided by the U.S. Department of Energy. The case is being prosecuted by Assistant U.S. Attorney B. Stephanie Siegmann of Ortiz’s National Security Unit.
Emporia Man Sentenced to 8 Years for Heroin and Gun CrimesRead the Press Release
NORFOLK, Va. – Collie Rashad Sanks, 37, of Emporia, was sentenced today to 96 months in prison for his role in a conspiracy to distribute heroin and his firearms trafficking activities.
Sanks pleaded guilty on Sept. 17, 2015. According to court documents, Sanks was the second highest ranking member of a Bloods street gang known as the Red Stone Rydahs, which operated in Emporia and Franklin. Along with his co-conspirator, Phillip Jerome Murphy, 41, of Franklin, Sanks began distributing significant quantities of heroin in Franklin, Smithfield, and Emporia in approximately 2012. As frequently as twice per month, Sanks and Murphy would travel to New York to purchase bulk quantities of heroin and then travel back to southeastern Virginia to distribute the drug. Both men sold heroin themselves, and also employed other individuals to assist them in their distribution activities. Additionally, court documents revealed that Sanks was heavily involved in firearms trafficking on behalf of the Red Stone Rydahs. On two occasions, he sold a total of eleven firearms – including high caliber rifles, assault rifles, and pump action shotguns – as well as a ballistic vest to an undercover law enforcement officer. During search warrants executed at residences associated with Sanks, law enforcement recovered four different types of ammunition, an AK-47 assault rifle, and three other firearms, in addition to heroin, marijuana, narcotics packaging materials, and gang paraphernalia.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John S. Adam, Special Agent in Charge of the FBI’s Norfolk Field Office; Ricky Pinksaw, Chief of Emporia Police; and Phillip Hardison, Chief of Franklin Police, made the announcement after sentencing by Chief U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorneys William D. Muhr and V. Kathleen Dougherty prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case . 2:15cr115 (Collie Sanks) and Case No. 2:15cr103 (Phillip Murphy).
Edwardsville Woman Pleads Guilty to Structuring ChargesRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that Song Chong Fulton, 50, of Edwardsville, Illinois, pled guilty today in federal district court in East St. Louis to an Information charging her with the crime of Structuring Financial Transactions to Avoid a Currency Transaction Report.
The charges relate to sixty-four currency deposits that Fulton made into a bank account between January 22, 2014, and August 11, 2015. Under federal law, financial institutions are required to report to the IRS any currency transaction, such as deposits, exceeding $10,000. It is a federal crime to structure financial transactions in such a way as to avoid this reporting requirement. Documents filed with the court indicate that the total amount of deposits made by Fulton during the above period was over $190,000.
The maximum statutory penalties for this offense are 5 years’ imprisonment, a $250,000 fine, or both; 3 years’ supervised release; and a $100 special assessment.
Sentencing is set for May 17, 2016, at 10:30 A.M. before Judge Yandle in Benton, Illinois.
The case was investigated by members of IRS and HHS, and was prosecuted by Assistant United States Attorney Stephen Clark.
District Man Sentenced to Eight Years in Prison for Armed Robbery in Southeast WashingtonRead the Press Release
WASHINGTON – Isaac Williams, 63, of Washington, D.C., has been sentenced to an eight-year prison term for an armed robbery of two armored car guards at a store in Southeast Washington, U.S. Attorney Channing D. Phillips announced.
Williams pled guilty in October 2015, in the U.S. District Court for the District of Columbia, to one count of interference with interstate commerce by robbery. He was sentenced on Jan. 21, 2016, by the Honorable Randolph D. Moss. Following his prison term, Williams will be placed on three years of supervised release.
According to the government’s evidence, on the morning of July 21, 2010, Williams, while armed with a firearm and assisted by two accomplices, entered a CVS store in the 500 block of 12th Street SE. Once inside, Williams robbed two armored car security guards who were servicing a TD Bank ATM machine inside the store. Williams and his accomplices took $38,120 from the guards. The next day, Williams used a portion of the stolen money to purchase a 1998 Ford Expedition. Williams was indicted in April 2015 after having been released from prison for violating the terms of his supervised release for two prior convictions. As part of his sentence, Williams was ordered to pay restitution in the amount of $38,120 to TD Bank and to forfeit the vehicle he purchased with the proceeds of the robbery.
In announcing the sentence, U.S. Attorney Phillips commended the work of the FBI’s Washington Field Office and the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Samantha Prinsen, former Assistant U.S. Attorney David Kent, who indicted the matter, and Assistant U.S. Attorneys Kenneth Whitted and Christopher Macchiaroli, of the Violent Crimes and Narcotics Trafficking Section, who prosecuted the case.
Developer Sentenced to 10 Years for Investment and Bankruptcy FraudRead the Press Release
PHOENIX – Yesterday, John Keith Hoover, age 64, of Mohave Valley, Ariz., was sentenced to 10 years in prison by U.S. District Judge Susan R. Bolton. His wife, Deborah B. Hoover, also 64, of Mohave Valley, Ariz, was convicted of conspiracy to commit bankruptcy fraud and was sentenced to one year of home confinement followed by five years of supervised release.
U.S. Attorney John Leonardo stated, “This investment fraud was particularly reprehensible because it targeted a number of widows and other friends of the defendants who trusted the defendant’s investment and legal advice. Defendants also violated the integrity of the U.S. Bankruptcy Court by shielding assets from victim creditors who were entitled to them by law. This prison sentence imposes accountability on the defendants for their crimes and sends a message to others who would engage in such fraudulent misconduct at the expense of others.”
"This investigation highlights the need for consumers and investors to do their homework before entering into business arrangements and not simply take the word of someone who may be out to steal their hard-earned money. If something seems too good to be true, it almost always is. I want to thank the IRS and the United States Attorney’s Office for their important role and partnership in this investigation. At its most basic level, this is a case about greed and the abuse of trust. The subjects took advantage of trusted relationships to persuade the victims to invest in staged real estate ventures which were supported by lies and false documents,” stated FBI Special Agent in Charge Douglas G. Price.
"Mr. Hoover financed his lavish lifestyle by swindling investors. IRS Special Agents will continue to investigate investment fraud schemes in order to deliver justice to victims and protect the integrity of the U.S. financial system,” stated IRS-CI Special Agent in Charge Ismael Nevarez Jr.
According to the Superseding Indictment, Defendant’s plea, and other filings, John Hoover was a homebuilder in Fort Mohave and surrounding areas. Hoover created nearly two dozen companies that he used to solicit money from Arizona and California investors for bogus real-estate developments beginning in 1997. Several investors were widows who gave Hoover control of the bulk of their estates based on his friendship with their families and because of the trust he developed as an attorney. Hoover told investors their money would go to specific real-estate developments and then diverted the money for his own personal use. In some cases, Hoover told investors that their money had been placed in secure loans while he actually used it to invest in his own high-risk, speculative real-estate ventures in Arizona.
Hoover encouraged investors to liquidate retirement accounts, life-insurance policies, mutual funds and securities, and Social Security death benefits to fund their investments with him. Hoover then used investor money to pay his living expenses. Among those expenses were a multimillion-dollar Newport Beach, Calif. home and a condominium; an apartment in Paris; a $200,000 Bentley Flying Spur and other high-end automobiles; jewelry; artwork; furnishings; high end hotels and restaurants; and lavish expenditures for family members living in Paris, France. Hoover also took vacations disguised as business trips to Hawaii, China, South America, and Europe.
When Hoover ran out of money, he refinanced properties with false representations about salary, assets, liabilities, employment, and sources of down payments. Then, he and his wife filed bankruptcy while hiding assets. When the Hoovers were arrested, agents located numerous assets that had been concealed from the Bankruptcy Court.
The investigation in this case was conducted by the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorney Kevin M. Rapp and Special Assistant U.S. Attorney Jennifer A. Giaimo.
CASE NUMBER: CR-14-CR-00554-SRB
RELEASE NUMBER: 2015-005_Hoovers
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Dallas Man Sentenced to 216 Months in Federal Prison on Firearms and Drug Distribution ConvictionsRead the Press Release
DALLAS — Kerry Lynn Lewis, Jr., 26, of Dallas, who pleaded guilty last year to firearm and drug offenses, was sentenced today by Chief U.S. District Judge Jorge A. Solis to 216 in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Lewis pleaded guilty in September 2015 to one count of being a felon in possession of a firearm, one count of possession with intent to distribute a controlled substance and one count of possession of a firearm in furtherance of a drug trafficking crime.
According to plea documents filed in the case, in February 2014, officers with the Dallas Police Department executed a search warrant at a residence on McBroom Street in Dallas, where Lewis was exiting the residence’s side door as the officers arrived. During the search, officers found three firearms, one of which, a Ruger 9 millimeter pistol, was recovered from inside a wall in the guesthouse. Officers also recovered marijuana from the kitchen and Lewis’s bedroom in the main house and two bags of cocaine from the guesthouse. One of the firearms was reported stolen out of Dallas and one was reported stolen out of Mesquite, Texas. A forensic analysis of the drugs concluded it was a mixture or substance containing cocaine, with a net weight of 5.9 grams.
Prior to the date of the execution of that search warrant, Lewis had several felony convictions in Dallas County: 1) On March 10, 1998, Lewis was convicted and sentenced to two-years confinement for Unlawful Possession of a Cocaine; 2) On January 18, 2007, Lewis was convicted and sentenced to seven-months confinement for Unlawful Delivery of Cocaine; 3) On July 14, 2011, Lewis was convicted and sentenced to three-years confinement for Delivery of a Controlled Substance; 4) On August 17, 2012, Lewis was convicted and sentenced to 30 days confinement for Unlawful Possession of Marijuana; 5) On July 14, 2011, Lewis was convicted and sentenced to three-years confinement for Unlawful Possession of a Firearm by a Felon; and 6) On July 14, 2011, Lewis was convicted and sentenced to three-years confinement for Retaliation.
Lewis also admitted that he possessed a Sig Sauer, Model P226, 9-millimeter pistol, a Keltec, Model P11, 9-millimeter pistol, and a Ruger, Model SR9c, 9-millimeter pistol in furtherance of a drug trafficking crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dallas Police Department investigated.
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Cullman County Man and Dekalb County Man Indicted Separately for Child PornographyRead the Press Release
BIRMINGHAM – A federal grand jury today returned separate child pornography indictments against a Dekalb County man and a Cullman County man, announced U.S. Attorney Joyce White Vance and Homeland Security Investigations, New Orleans Field Office, Special Agent in Charge Raymond R. Parmer Jr.
Unrelated indictments filed in U.S. District Court charge both FRANK DEWAYNE KELLEY, 46, of Dekalb County, and JAMES KEITH STEWART, 36, of Cullman County, with receiving, distributing and possessing child pornography.
Stewart currently is serving time for a 2013 conviction on state charges in Chilton County for sexual abuse of a child younger than 12. He also was convicted by court martial in 2003 for indecent acts upon a child. Today’s indictment charges Stewart with two counts of distributing child pornography and one count each of receiving and possessing child pornography, all between 2010 and 2012.
Kelley faces one count each of receiving, distributing and possessing child pornography between 2014 and 2015.
The maximum penalty for each count of receiving, distributing, and possessing child pornography is 20 years in prison and a $250,000 fine. The maximum penalty for distribution and receipt of child pornography increases to 40 years and a mandatory minimum of 15 years is imposed for individuals with prior sex offenses. A mandatory minimum of 10 years for possession of child pornography applies to individuals with prior sex offenses.
HSI investigated the cases. Assistant U.S. Attorney Jacquelyn Hutzell is prosecuting Kelley’s case and Assistant U.S. Attorney Erica Barnes is prosecuting Stewart’s case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Columbus County Man Receives 11 Years in Prison for Crop Fraud Conspiracy, Money Laundering, and Bank FraudRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that today in federal court, MILTON RUSS BARNHILL, 48, of Tabor City, North Carolina, was sentenced to a total of 11 years in federal prison on charges of Conspiracy to Make False Statements in Connection with Federal Crop Insurance; Making False Statements in Connection with Federal Crop Insurance; Mail Fraud, and Money Laundering. BARNHILL was also sentenced to 3 years of supervised release and ordered to make restitution of $2,512,097 to various federal programs and to the Horry County State Bank. The Court also ordered BARHNILL to forfeit the proceeds of his crimes.
BARNHILL previously went to trial on these charges on August 4, 2015, but pled guilty following jury selection.
Count one of the Indictment charged the defendant with conspiring with others to defraud the Federal Crop Insurance Corporation (FCIC) and the Farm Service Agency (FSA), both agencies of the United States, in connection with federal crop insurance claims and other federal taxpayer subsidies. As charged, the defendant produced crops which he sold in the names of others. The Defendant and others then reported on insurance claims that the crops were lost due to natural disasters. The defendant also placed crops and insurance policies into the names of conspirators to boost the amount of money he could collect on the insurance claims.
Counts two through eight, ten, and eleven of the Indictment each charged the defendant with falsifying and aiding and abetting others to falsify federal crop insurance claims. The defendant received more than $1 Million into his bank account that was derived from hidden crop production, underreported crop production, and overstated crop acreages, all on federal crop insurance documents.
Count twelve of the Indictment charged the defendant with committing mail fraud that resulted in Horry County State Bank paying out approximately $450,000 in fraudulent loan proceeds. On this count, the defendant supplied a fictitious tobacco sales contract to Horry County State Bank as collateral for a farm operating loan. In fact, the contract was fictitious, included references to a bogus tobacco receiving station, and was signed using the name of a fictitious person. The phone number the defendant provided to the bank as the number for the tobacco receiving station was, in fact, a prepaid cell phone that the defendant purchased in Clinton, North Carolina. The P.O. Box for the tobacco receiving station was, in fact, a mailing address applied for by the defendant.
Counts fifteen through nineteen charged the defendant with using the proceeds from the foregoing frauds to fund other transactions in excess of $10,000 in value. The evidence showed that the defendant received fraudulent bank monies into his account. The defendant then used those funds to promote the ongoing production of crops in the names of conspirators, who he also caused to file false crop insurance claims.
The criminal investigation of this case was conducted by United States Department of Agriculture–Office of the Inspector General-Investigations; United States Department of Agriculture-Risk Management Agency–Special Investigations Branch; the United States Internal Revenue Service–Criminal Investigations; and the United States Postal Inspection Service, with the assistance of the Columbus County Sheriff’s Office and the Whiteville Police Department. Assistant United States Attorneys Banumathi Rangarajan and William M. Gilmore handled the prosecution on behalf of the Eastern District of North Carolina.
Cleveland woman charged with stealing firearms from Broadview Heights storeRead the Press Release
Michaele N. Lenzy, 28, of Cleveland, was charged with stealing firearms from a federal firearms licensee, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
The Indictment charges that on or about December 13, 2015, Lenzy knowingly stole and unlawfully took away two semi-automatic firearms from LTD Gun Shop and Pistol Range, which is engaged in the business of dealing in firearms.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Benedict S. Gullo. The case was investigated by the Broadview Heights Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland man faces drug and firearms chargesRead the Press Release
A federal grand jury returned a two-count indictment charging Paul E. Loines, 53, of Cleveland, with being a felon in possession of a firearm and possession of crack cocaine with the intent to distribute, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Loines was found to be in possession of a .22 caliber handgun and 4.94 grams of crack cocaine with intent to distribute.
Assistant United States Attorney Karrie D. Howard is prosecuting the case, following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
If convicted, the court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Cleveland man faces drug and firearm chargesRead the Press Release
A Cleveland man faces drug and firearms charges, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
A six-count indictment was filed charging Jakub Wojtan, 23, on one count of possession with intent to distribute MDMA and five firearm counts.
Wojtan on Dec. 17 possessed a STEN 9 mm submachine gun with no serial number, which had not been registered with the National Firearms Registration and Transfer Record, as required under law; a sawed-off shotgun; a silencer which had not been registered with the National Firearms Registration and Transfer Record, as required under law; and an AK-47 which had not been registered with the National Firearms Registration and Transfer Record, as required under law, according to the indictment.
Assistant United States Attorney Karrie D. Howard is prosecuting the case, following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Parma Heights Police Department.
If convicted, the court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Chinese National Pleads Guilty to Conspiring to Steal Trade SecretsRead the Press Release
Mo Hailong, aka Robert Mo, 46, pleaded guilty today to conspiracy to steal trade secrets before U.S. District Judge Stephanie M. Rose of the Southern District of Iowa, announced Assistant Attorney General for National Security John P. Carlin and Acting U.S. Attorney Kevin E. VanderSchel of the Southern District of Iowa.
According to the plea agreement, Hailong admitted to participating in long-term conspiracy to steal trade secrets from DuPont Pioneer and Monsanto. Hailong further admitted to participating in the theft of inbred – or parent – corn seeds from fields in the Southern District of Iowa for the purpose of transporting those seeds to China. The stolen inbred seeds constitute the valuable intellectual property of DuPont Pioneer and Monsanto.
During the conspiracy, Hailong was employed as director of international business of the Beijing Dabeinong Technology Group Company, a Chinese conglomerate with a corn seed subsidiary company, Kings Nower Seed. Hailong is a Chinese national who became a lawful permanent resident of the United States pursuant to an H-1B visa.
Hailong is scheduled to be sentenced at a date to be determined later in Des Moines, Iowa. Conspiracy to steal trade secrets is a felony that carries a maximum sentence of 10 years in prison and a maximum fine of $250,000. As part of Hailong’s plea agreement, the government has agreed not to seek a prison sentence exceeding five years.
The investigation was initiated when DuPont Pioneer security staff detected suspicious activity and alerted the FBI. DuPont Pioneer and Monsanto have fully cooperated throughout the investigation. The case is being investigated by the FBI. The case is being prosecuted by the U.S. Attorney’s Office of the Southern District of Iowa and the National Security Division’s Counterintelligence and Export Control Section.
Hailong Plea Agreement
Chicago Resident Pleads Guilty to Participating in Multi-State Heroin Trafficking ConspiracyRead the Press Release
SCRANTON-The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 39-year-old Mexican national who resided in Chicago at the time of his arrest pled guilty today before U.S. District Court Judge Robert D. Mariani to participating in a drug conspiracy that was responsible for distributing large quantities of heroin during a four-year time period in Monroe, Carbon, Montgomery, and Berks Counties in Pennsylvania.
According to United States Attorney Peter Smith, the defendant, Romualdo Hermosillo-Avendano, also known as “Flaco,” admitted to distributing more than one kilogram of heroin via courier from Chicago to Pennsylvania during December 2013-January 2014.
Hermosillo-Avendano was indicted by a federal grand jury in March 2014, as a result of an investigation by the Drug Enforcement Administration (DEA), Homeland Security Investigations, the Pennsylvania State Police, the Pennsylvania Attorney General’s Office, Berks County Detectives and Montgomery County Detectives. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Hermosillo-Avendano faces a mandatory minimum sentence of 10 years in prison and a potential maximum sentence of life in prison. He also faces possible deportation as a result of his guilty plea. Judge Mariani ordered a pre-sentence report to be completed. Sentencing is scheduled to take place in April 2016.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life 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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Charleston heroin and crack dealer pleads guilty to Federal drug crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston heroin and crack dealer pleaded guilty today to a federal drug crime, announced Acting United States Attorney Carol Casto. Donovan Hardison, 25, entered his guilty plea in federal court to possession with intent to distribute heroin and crack.
Hardison admitted that on May 8, 2015, when he was arrested by agents of the Charleston Police Department’s Special Enforcement Unit, he had heroin and crack concealed in his sock that he intended to sell. Hardison also admitted that on several occasions in early 2015, he sold heroin and crack in the Charleston area to confidential informants working with the Charleston Police Department’s Special Enforcement Unit and the Metropolitan Drug Enforcement Network Team. Hardison further admitted that prior to the drug deals, he often stored the heroin and crack in his residence on 2nd Street in Charleston.
Hardison faces up to 20 years in federal prison and a $1 million fine when he is sentenced on April 27, 2016.
The investigation of Hardison was conducted by the Charleston Police Department’s Special Enforcement Unit, the Metropolitan Drug Enforcement Network Team, and the West Virginia State Police. Assistant United States Attorney John J. Frail is handling the prosecution. Hardison entered his plea before United States District Judge John T. Copenhaver, Jr.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Centreville Man Indicted for Commercial Sex Trafficking of A MinorRead the Press Release
The United States Grand Jury has returned a two-count indictment against Demerous E. Foxworth, 24, of Centreville, Illinois, charging him with Commercial Sex Trafficking of a Minor and Use of a Facility of Interstate Commerce to Promote an Unlawful Activity, Acting United States Attorney James L. Porter announced today. The Court ordered that Foxworth be held without bond pending trial after a hearing held today.
The offenses charged in the indictment allege that, from on or about June 1, 2014, to February 28, 2015, Foxworth recruited, enticed, provided and maintained a person knowing that the person had not attained the age of 18 years and knowing that the person would be caused to be engaged in a commercial sex act. The indictment further alleges that from on or about October 1, 2012 to October 10, 2015, Foxworth used a facility of interstate commerce, being the Internet, with the intent to promote, manage, establish, carry on and facilitate an unlawful activity, being illegal prostitution under Illinois law.
A trial date is set for April 4, 2016. If convicted of Commercial Sex Trafficking of a Minor, Foxworth faces a term in prison of not less than ten (10) years up to life, a fine up to $250,000, and a term of supervised release of not less than five (5) years up to life. If convicted of Use of a Facility of Interstate Commerce to Promote an Unlawful Activity, Foxworth faces a term in prison of up to five (5) years, a fine up to $250,000, and a term of supervised release of up to three (3) years.
An indictment is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 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."
This investigation was conducted by the St. Louis County Police Department and the Federal Bureau of Investigation, St. Louis and Springfield Offices. The case is assigned to Assistant United States Attorney Ali Summers
Cedar Rapids Man Convicted of Gun Theft ChargeRead the Press Release
A man who stole a gun from a Cedar Rapids gun store was convicted by a jury today after a 2-day trial in federal court in Cedar Rapids.
Dante Glinn from Cedar Rapids was convicted of theft of a firearm from a licensed dealer. The verdict was returned following about four hours of deliberations.
The evidence at trial showed that, on August 25, 2015, Glinn walked into Sports Outfitters, a Cedar Rapids gun store, reached behind the counter, and stole a .45 caliber Kimber pistol before fleeing the scene. Surveillance videos captured Glinn stealing the pistol. Testimony at trial established that Glinn used an alias to get medical treatment at a local hospital for a wound visible in the videos the same evening as the theft.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Glinn remains in custody of the United States Marshal pending sentencing. He faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, $100 in special assessments, and 3 years of supervised release following any imprisonment.
The case was investigated by the Cedar Rapids Safe Street Task Force. The task force is composed of representatives from the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms, and Explosives; U.S. Immigration and Customs Enforcement; United States Marshals Service; Iowa Division of Criminal Investigation; Cedar Rapids Police Department; Marion Police Department; Sixth Judicial District Department of Correctional Services; Linn County Sheriff’s Office; and Iowa Department of Inspections and Appeals. The case is being prosecuted by Assistant United States Attorney Jacob Schunk.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-00093.
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California Man Pleads Guilty to Conspiracy to Commit Bank Fraud and Aggravated Identity TheftRead the Press Release
BOISE - Christopher Sheldon Miller, 40, of Union City, California, pleaded guilty on January 27, 2016, to conspiracy to commit bank fraud and aggravated identity theft, U.S. Attorney Wendy J. Olson announced. Miller was indicted by a federal grand jury in Boise on September 9, 2015.
According to court proceedings, Miller admitted that he and his co-conspirators traveled to the District of Idaho from California for the purpose of executing the bank fraud scheme. Between June 25 and 29, 2015, the defendant and his co-conspirators made and attempted to make a number of fraudulent withdrawals at various banks in Ada County and Canyon County. The defendant would go into a bank, impersonate a real account holder, and present a fake California driver’s license and other personal information of the real account holder to obtain a temporary debit card. Miller attempted to make and made withdrawals at the banks. The defendant and his co-conspirators also made fraudulent purchases at various stores, using the customer account information. The defendant and his co-conspirators made at least $34,958.95 in fraudulent withdrawals and purchases in Idaho. In addition, the defendant and his co-conspirators made an additional $35,632.01 in fraudulent withdrawals and purchases in Colorado in June 2015.
The charge of conspiracy to commit bank fraud is punishable by up to 30 years in prison, a maximum fine of $1,000,000.00, and up to five years of supervised release. The charge of aggravated identity theft is punishable by a mandatory term of imprisonment of two years consecutive to the underlying conspiracy to commit bank fraud charge.
Sentencing is set for April 12, 2016, before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The case was investigated by Federal Bureau of Investigation and the Boise Police Department.
Broward County Resident Charged for Participation in Stolen Identity and Tax Fraud Schemes Involving at Least 652 IdentitiesRead the Press Release
A Broward resident was charged for her participation in stolen identity and tax fraud schemes involving at least 652 stolen identities.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Dwayne Flournoy, Chief, Hallandale Beach Police Department (HBPD), made the announcement.
Laveisha Dorray Charles-Coldros, 30, of Miramar, Florida, was charged with one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), one count of using one or more unauthorized access devices, in violation of Title 18, United States Code, Sections 1029(a)(2) and 2, and four counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). If convicted, Charles-Coldros faces a maximum of ten years in prison for each of the access device charges, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charges.
According to court documents, during a vehicle search where Charles-Coldros was the sole occupant, a Hallandale Beach Police Department officer found mail addressed to numerous individuals and a large duffel bag with multiple pieces of paper and notebooks that contained the names, dates of birth, and Social Security numbers of approximately 652 different individuals.
IRS-CI Special Agents interviewed numerous individuals whose PII was found in the duffel bag. The individuals did not authorize Charles-Coldros to have their names, date of births, and Social Security numbers in her possession, and did not authorize a tax return be filed in their names. Another individual did not authorize Charles-Coldros to have a debit card in his/her name.
Mr. Ferrer commended the investigative efforts of IRS-CI, United States Secret Service, and the Hallandale Beach Police Department, and thanked Federal Protective Service for its assistance in this matter. The case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Bradenton Man Pleads Guilty to Selling Counterfeit, Unapproved, and Misbranded DrugsRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Robert Lohr (72, Bradenton) today pleaded guilty to conspiracy to smuggle goods into the United States. He faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, from July 2009 through September 25, 2015, Lohr operated a business in Bradenton known as “Canadian American Drug Club” or “American Drug Club of Bradenton.” The business sold and distributed illegally smuggled prescription drugs, including Viagra, Cialis, Achiphex, and Lipitor, as well as other drug products that were falsely represented as “herbal”, but that contained active prescription ingredients. At no time was Lohr ever licensed as a pharmacist, a drug importer, or drug wholesaler. Neither was American Drug Club a licensed pharmacy or licensed drug importer or wholesaler.
Between March 21, 2014, and September 15, 2015, several undercover purchases of misbranded, unapproved, and counterfeit prescription drugs were made from Lohr’s business. Prescriptions for Viagra and Cialis were filled and mailed from the business, along with counterfeit drugs made in China. Other prescription drugs, such as Achiphex and Lipitor, were filled by foreign pharmacies with foreign drugs, which had not been approved for the U.S. market. Lohr also sold several herbal Viagra products, without prescriptions, that had been illegally smuggled from China. These products, with names such as “Maxmen”, “Superhard”, or “Vigour,” contained Sildendafil Citrate, the active pharmaceutical ingredient in Viagra. Several of the packages addressed to Lohr’s business, containing the counterfeit drugs, were seized by U.S. Customs and Border Protection.
Lohr generated more than $1.1 million in sales from these counterfeit drugs. The proceeds were deposited in the form of cash, third-party customer checks, and bank card transactions into business and personal bank accounts controlled by Lohr and others. The proceeds from the sales were seized and forfeited in September 2015, including $765,909.35 from an investment account, $60,722 from a business bank account, as well as $79,700 in cash that was stored in Lohr’s safe deposit box. Another $20,135 in cash was seized from Lohr’s business.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigaitons and the United States Food and Drug Administration (“FDA”), which is responsible for protecting the health and safety of the American public, and ensuring that drugs intended for human use bear true and accurate information and are safe and effective for their intended uses. This case is being prosecuted by Assistant United States Attorneys Kelley Howard-Allen and Holly Gershow.
Bellevue Man Charged with Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney, Deborah R. Gilg, announced that on January 27, 2016, an Indictment was unsealed charging Casey Eugene Knudsen, 21, of Bellevue, with conspiracy to distribute and possess with the intent to distribute 500 grams or more of a substance containing methamphetamine between July 1, 2014, and January 5, 2016. The charge carries a possible penalty of not less than 10 years, and not more than life imprisonment, and a fine of up to $10,000,000. Following any prison term, there would be a term of supervised release of at least five years.
Knudsen had an initial appearance in federal court in Lincoln on January 27, 2016. He is scheduled for trial beginning on April 4, 2015, and was ordered detained pending trial.
This case was investigated by the Lincoln/Lancaster County Drug Task Force, the Omaha Police Department, the Douglas County Sheriff’s Department, and the Sarpy County Sheriff’s Department.
Baltimore Drug Trafficker Sentenced to 15 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Mario Lamar Wair, a/k/a “Unda,” age 42, of Baltimore, today to 15 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine and crack cocaine; and for possession with intent to distribute cocaine and crack cocaine. During the course of the sentencing hearing, Judge Russell found that Wair obstructed justice by falsely testifying at trial. A federal jury convicted Wair on November 5, 2015.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to evidence presented at his four day trial, from no later than June 2013 through June 2014, Wair conspired with others to distribute cocaine and crack cocaine in southwest Baltimore. Kareem Moore, Raymond Comegys, Stephon Lowery and other co-defendants operated a street-level drug shop in the southwest area of Baltimore City that sold crack cocaine daily to customers. Trial evidence showed that two to three times per week Wair supplied cocaine to a co-defendant who cooked the cocaine into crack cocaine. The crack cocaine was then sold to other distributors and in user-quantity amounts to street level customers. Wair either was present when the cocaine was cooked into crack cocaine or would call to check in on the quality of the crack cocaine.
According to the trial evidence, Wair distributed more than two kilograms of cocaine and crack cocaine.
All nine defendants charged in this indictment have been convicted for their participation in the conspiracy. Raymond Comegys, age 31, of Baltimore, and Stephon Lowery, age 30, of Baltimore, were sentenced to 12 years and 10 years in prison, respectively. Kareem Moore pleaded guilty before trial and was sentenced to 66 months in prison, and five other co-defendants have received sentences of between 30 and 78 months.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Seema Mittal and Leo J. Wise, who prosecuted the case.
Area Ambulance Company Owner Sentenced in Health Care Fraud SchemeRead the Press Release
McALLEN, Texas ‐ The owner of Vic’s Texas Transport, Inc. (dba Victory EMS) has been ordered to federal prison following his conviction of health care fraud and aggravated identity theft, announced U.S. Attorney Kenneth Magidson. Victor Lee Gonzalez, 28, of Mission, pleaded guilty Sept, 22, 2015.
Today, Chief U.S. District Judge Ricardo Hinojosa, handed Gonzalez a 30-month sentence for the fraud. He also received a mandatory 24-month term for the identity theft which must be served consecutively for a total sentence of 54 months in prison. He was further ordered to pay $458,904.45 in restitution. In handing down the sentence, Judge Hinojosa noted that the sentence was appropriate to promote respect for the law and to deter future criminal conduct of the defendant. Gonzalez will also be required to serve a term of three years of supervised release following completion of the prison term.
As part of the plea, Gonzalez admitted he submitted claims with Medicare and Texas Medicaid for reimbursement of ambulance transportation services that were not provided. To further execute his scheme to defraud, Gonzalez used the Texas Medicaid number of a patient to submit false and fraudulent billings to Texas Medicaid. The aggregate sum of the false and fraudulent claims submitted by Gonzalez was $1,080,213 to Medicare and Texas Medicaid. As a result of those fraudulent claims, Medicare and Texas Medicaid paid approximately $458,904.45.
Gonzalez, whose bond was previously revoked in the case, will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the U.S. Department of Health and Human Services‐Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit. Assistant United States Attorneys Michael Day and Linda Requenez are prosecuting the case.
Ambulance Company Owners Agree to Pay More Than $245,000 to Resolve Kickback AllegationsRead the Press Release
HOUSTON – The former owner and operator of Houston-area ambulance company National Care EMS has agreed to settle allegations that he and the company provided kickbacks to various nursing facilities and hospitals in exchange for rights to the institutions’ more lucrative Medicare and Medicaid transport referrals, announced U.S. Attorney Kenneth Magidson along with Gregory Demske, Chief Counsel to the Inspector General of the U.S. Department of Health and Human Services - Office of Inspector General (HHS-OIG) and Special Agent in Charge CJ Porter, of HHS-OIG, Office of Investigations - Dallas Regional Office.
Mohammed Elsaleh, 27, of Sugar Land, formerly owned National Care EMS, which is no longer in business. The settlement calls for Elsaleh to pay $125,000 to resolve the “swapping” allegations made against him and the company. In addition, Elsaleh’s brother, Husam Alsaleh, 29, also of Sugar Land, the owner and operator of a successor company also called National Care EMS has agreed to pay $120,000, plus interest, in furtherance of the settlement.
“This settlement send a message that any alleged kickback or improper relationship among providers will not be tolerated,” said Magidson. “We will continue to hold those accountable that attempt to detrimentally impact the integrity of our health care system.”
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federal health care programs, including Medicare and Medicaid. The settlement announced today resolves allegations that Elsaleh and National Care EMS provided free and heavily discounted ambulance transports to various nursing facilities and hospitals in exchange for the institutions’ referral of other lucrative Medicare and Medicaid business to National Care EMS.
“This settlement sends a message to the health care industry that both sides of a swapping arrangement can be held responsible for their improper actions, not just the entity that actually bills Medicare or Medicaid for the services,” said Demske. “Any company or individual considering entering such schemes should understand that their actions may have serious legal and financial consequences.”
Medicaid is funded jointly by the states and the federal government. The state of Texas paid for some of the Medicaid claims at issue and will receive approximately $21,000 of the settlement amount.
“The Office of Investigations will continue to pursue all parties in improper swapping arrangements to insure legitimacy in health care expenditures across all service areas, including ambulance transports,” said Porter.
Today’s announcement also marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.
The settlement was the result of a coordinated effort among the U.S. Attorney’s Office, HHS-OIG, HHS-OIG (Office of Counsel to the Inspector General) and the Texas Attorney General’s Office. Assistant U.S. Attorney Kenneth Shaitelman handled the case on behalf of the U.S. Attorney’s Office for the Southern District of Texas.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
2 Individuals Indicted for Mail FraudRead the Press Release
SAN JUAN, Puerto Rico – Yesterday, January 26, 2016, a Federal grand jury in the District of Puerto Rico returned a twenty-three count indictment against Oscar Ferrer (“Ferrer”) and Jonathan A. Rivera-Padilla (“Rivera-Padilla”) charging them with conspiracy to commit mail fraud, mail fraud, and monetary transactions in property derived from specified unlawful activity announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The United States Postal Inspection Service (“USPIS”) and Federal Bureau of Investigation (“FBI”) are in charge of the investigation. The indictment was unsealed today following the arrest of Ferrer in Florida and Rivera-Padilla in Puerto Rico.
These charges resulted from a Ponzi scheme originating in the Cabo Rojo area of Puerto Rico and involving the payment of approximately $5.7 million to corporations operated by Ferrer in Puerto Rico and Florida. The corporations, including Reco Financial, Inc., National Western HIA, Inc., and CGB Financial, Inc., were utilized to receive victim’s purported investment deposits and to disburse the funds to Ferrer and Rivera-Padilla for their own personal use.
Ferrer and Padilla used their connections and referrals in the Cabo Rojo area to meet potential investors. In order to obtain purported investments, misrepresentations were made that the principal and interest on the investment would be guaranteed. Investors were then directed to make their payment to one of the corporations operated by Ferrer. Once deposited, the funds were not invested. Instead, they were withdrawn by Ferrer or transferred to personal bank accounts belonging to Ferrer, Rivera-Padilla, or others.
As a lulling tactic to avoid detection, some interest payments were made and false investment statements were created and mailed to the investors/victims. The investment statements misrepresented the state of their investment. Specifically, the investment statements misrepresented that the funds had been invested and/or that the principal and/or interest were guaranteed.
From 2011 to the present, approximately $5.7 million was invested in this scheme and approximately $1.6 million was paid to investors. The total amount netted in this scheme was approximately $4.1 million.
If found guilty, Ferrer and Rivera-Padilla face a maximum penalty of twenty years in prison for mail fraud and conspiracy to commit mail fraud, and ten years in prison for monetary transactions in property derived from specified unlawful activity.
Assistant U.S. Attorney Seth A. Erbe is prosecuting the case. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty. The investigation is ongoing.
Tuesday 26 January 2016
Union County, New Jersey, Man Sentenced to 63 Months in Prison for Role in Scheme to Smuggle More Than Three Kilograms of Cocaine into the United StatesRead the Press Release
NEWARK, N.J. – An Elizabeth, New Jersey, man was sentenced today to 63 months in prison for his role in a conspiracy to smuggle approximately three kilograms of cocaine from Haiti into the United States, U.S. Attorney Paul J. Fishman announced.
Schirmer Monestime, 39, was previously convicted on an indictment charging him with one count of conspiracy to distribute cocaine following a four-day trial before U.S. District Judge Susan D. Wigenton. The jury deliberated for four hours before returning the guilty verdict. Monestime was originally arrested and charged by complaint on March 5, 2013. Judge Wigenton imposed the sentence today in Newark federal court.
According to the indictment and evidence at trial:
On Feb 28, 2013, while conducting routine examinations of express mail parcels arriving from Haiti, law enforcement examined a parcel addressed to Bobby Lewis, 59, of Elizabeth. The examination revealed a package containing six large picture frames filled with a powdery-white substance that field-tested positive for cocaine. The net weight of the cocaine in the picture frames was approximately three kilograms.
Law enforcement officers replaced the drugs in the parcel with fake cocaine. On March 4, 2015, an undercover postal inspector delivered the parcel to Lewis, who signed for it at his Elizabeth address. Law enforcement surveillance observed Lewis take the parcel to a nearby parking lot and signal an approaching vehicle driven by Monestime. Although Monestime did not stop to receive the parcel, he later admitted that he intended to do so.
In addition to the prison term, Judge Wigenton sentenced Monestime to three years of supervised release.
Charges against Lewis are still pending. The charges and allegations against him are merely accusations, and he is presumed innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of U.S. Department of Homeland Security-Homeland Security Investigations (DHS-HSI), under the direction of Special Agent in Charge Terence S. Opiola, and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Barry A. Kamar of the U.S. Attorney’s Office General Crimes Unit in Newark.
Defense counsel: Cynthia H. Hardaway Esq., Montclair, New Jersey.
U.S. Postal Service Employee Indicted for Assaulting SupervisorRead the Press Release
Memphis, TN – A United States Postal Service employee has been indicted for assaulting a colleague while at work. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment today.
According to the indictment, on January 23, 2016, Richard Martin, 59, of Memphis, knowingly and forcibly assaulted a U.S. Postal Service employee. The assault reportedly occurred while the defendant and the victim were at work.
On Tuesday, January 26, 2016, Martin was indicted on one count of assault on a federal officer or employee. If convicted, he faces up to 20 years imprisonment and a fine of up to $250,000.
This case is being investigated by the U.S. Postal Inspection Service.
Assistant U.S. Attorney Stephen Hall is prosecuting this case on the government’s behalf.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Two sentenced for drug traffickingRead the Press Release
ELKINS, WEST VIRGINIA – Two individuals were sentenced in federal court today for drug trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Vincent Paul Gibson, 29, of Coalton, West Virginia, was discovered in Randolph County, West Virginia, in possession of materials commonly used to manufacture methamphetamine. Those materials included plastic bottles, batteries, rubber tubing, empty packages of medication containing pseudoephedrine, coffee filters, drain cleaner, mason jars, and instant ice compresses. Following an investigation by the Mountain Region Drug and Violent Crime Task Force, he pled guilty in August 2015 to one count of “Possession of Material used in the Manufacture of Methamphetamine.” He was sentenced today to 48 months in prison.
Santos Macedoni Barragan, 31, of Moorefield, West Virginia, sold cocaine near an elementary and secondary school in Hardy County, West Virginia. Following an investigation by the Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, he pled guilty in September 2015 to one count of “Distribution of Cocaine within 1,000 Feet of a School.” He was sentenced today to 12 months in prison.
Assistant U.S. Attorney Stephen Warner prosecuted the cases on behalf of the government.
U.S. District Judge John Preston Bailey presided.
Two drug dealers sentenced for Federal heroin crimesRead the Press Release
CHARLESTON, W.Va. – Acting United States Attorney Carol Casto announced that two heroin dealers were sentenced today on federal drug charges.
Andre Luke Perryman, 24, of Detroit, was sentenced to a year and a day in federal prison for aiding and abetting the distribution of heroin. Perryman previously pleaded guilty to the federal drug crime in October of 2015. On December 10, 2014, officers with the Charleston Police Department’s Special Enforcement Unit used a confidential informant to purchase heroin from Perryman. The informant called Perryman’s co-defendant, Robert James Bellamy, to set up the drug deal, which occurred at Rite Aid on Rebecca Street in Charleston. After the drug deal, law enforcement arrested Perryman. He admitted that he had come to Charleston from Detroit in July of 2014, and since his arrival he had been working with Bellamy to sell heroin in the area. Perryman further admitted that he and Bellamy distributed over 250 grams of heroin during that time period. Bellamy has pleaded guilty to distribution of heroin and faces up to 20 years in federal prison when he is sentenced on March 23, 2016.
As the result of a separate investigation, Devonte L. Andrews, 23, of Charleston, was sentenced to eight months in federal prison for distribution of heroin. Andrews previously pleaded guilty in October of 2015 to the federal drug charge. Andrews admitted that on August 26, 2014, he sold heroin to a confidential informant working with the Charleston Police Department’s Special Enforcement Unit. The drug deal took place on 21st Street in Charleston.
The investigation of Perryman and Bellamy was conducted by the Charleston Police Department’s Special Enforcement Unit. Assistant United States Attorney Haley Bunn is handling the prosecution of both Perryman and Bellamy. United States District Judge John T. Copenhaver, Jr., imposed Perryman’s sentence.
The Charleston Police Department’s Special Enforcement Unit and the Metropolitan Drug Enforcement Network Team conducted the investigation of Andrews. Assistant United States Attorney John Frail is in charge of the prosecution. Andrews’ sentence was imposed by United States District Judge Thomas E. Johnston.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Tobyhanna Man Sentenced to 21 Months Incarceration for Passing $8,500 in Counterfeit Currency in Area CasinosRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jason Mitchell, age 31, Tobyhanna, Pennsylvania, was sentenced yesterday to 21 months’ imprisonment by United States District Court Judge James M. Munley in Scranton for passing counterfeit currency in area casinos.
According to U.S. Attorney Peter Smith, Mitchell was charged in an indictment by a grand jury in November 2014 and pleaded guilty in September 2015 to conspiracy to pass counterfeit United States Federal Reserve Notes. Mitchell and others conspired to receive, exchange, transfer, and pass approximately $8,500 in counterfeit $100 Federal Reserve Notes at the Mount Airy Casino in Mount Pocono, and the Mohegan Sun Casino in Plains on various dates in June 2014.
Also charged in the indictment with Mitchell are Andrew Turner, age 28, and Michael Turner, age 22, both from Tobyhanna, Pennsylvania. Both are awaiting trial.
The case was investigated by the United States Secret Service and the Pennsylvania State Police, Bureau of Gaming Enforcement. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
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Three Indicted in Raleigh Witness Tampering and Obstruction CaseRead the Press Release
RALEIGH – United States Attorney’s Office for the Eastern District of North Carolina announced today that a federal grand jury in Raleigh, North Carolina returned a four count indictment charging DEMETRICE R. DEVINE, TIMOTHY A. DEVINE and CARLETTA P. ALSTON with conspiring to tamper with a witness, in violation of the provisions of Title 18, United States Code, Section 1512(k); witness tampering and aiding and abetting, in violation of the provisions of Title 18, United States Code, Sections 1512(b) and 2; obstruction of an official proceeding and aiding and abetting, in violation of the provisions of Title 18, United States Code, Sections 1512(c) and 2; and obstruction of justice and aiding and abetting, in violation of the provisions of Title 18, United States Code, Sections 1503(a) and 2.
The investigation revealed that beginning on July 1, 2015, Federal Bureau of Investigation agents and Raleigh Police Department officers interviewed and served federal grand jury subpoenas on individuals believed to have information on the illegal activities of a gang in Raleigh, North Carolina. After learning the identity of a witness subpoenaed to testify before a federal grand jury, DEMETRICE R. DEVINE, TIMOTHY A. DEVINE and CARLETTA P. ALSTON discussed a plan to approach the witness and inform the witness that individuals were watching the witness’ child, as a means to influence the witness’ testimony before a federal grand jury.
If convicted, the maximum penalties for the witness tampering counts are not more than 20 years imprisonment, a $250,000 fine, and a term of supervised release of not more than 5 years, following any term of imprisonment. The maximum penalties for the obstruction of justice count is not more than 10 years imprisonment, a $250,000 fine, and up to 3 years supervised release following any term of imprisonment.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty in a court of law. The case is being investigated by the Federal Bureau of Investigation and the Raleigh Police Department.
Texas Man Sentenced to 15 Years on Federal Child Pornography ChargesRead the Press Release
St. Louis, MO – BRYCE THOMSON, Selma, Texas, was sentenced to 188 months involving his transportation of child pornography from Texas to St. Louis.
According to court documents, on March 2, 2015, Thomson flew from Texas to Missouri with a laptop computer, an IPad, an IPhone, a Samsung phone, a Lexar USB thumb drive and four other thumb drives.
Thomson had placed an ad on Craigslist.org seeking to contact people who were “only into real taboo and extremely forbidden things.” The ad contained adult pornography and animated child pornography. On March 4, 2015, an undercover St. Louis officer contacted Thomson posing as a mother of a girl. During the chat, Thomson stated that he was in St. Louis on business from Texas and that he was interested in various sexual activities. He stated his favorite age was nine to thirteen years old. He sent the officer photos of a minor female in sexually explicit activities and provided his cell phone number for further contact.
On March 5, 2015, Thomson was arrested by the St. Louis County Police at Lambert International Airport as he prepared to depart for Texas. He stated that he arrived in St. Louis on March 2, 2015, for a business convention. He admitted posting the ad on Craigslist. He stated that he had an interest in child pornography for thirty years. He estimated that he had downloaded one million child pornography images or videos in the last thirty years and had exchanged approximately 500,000 child pornography images or videos in that time. The majority of those images depicted females between the age of ten and thirteen. Thomson also told officers that he had inappropriate sexual contact with an eleven-year-old relative in 2000.
Thomson pled guilty in November to one felony count of transportation of child pornography. He appeared today for sentencing before United States District Judge Ronnie L. White.
This case was investigated by the St. Louis County Police Department and the Federal Bureau of Investigation. First Assistant United States Attorney Carrie Costantin handled the case for the U.S. Attorney’s Office.
Tennessee Man Sentenced to 96 Months in Prison for Driving to Minnesota to Have Sex with 13-Year-Old GirlRead the Press Release
United States Attorney Andrew M. Luger today announced the sentence of JEFFREY SCOTT EVANS, 51, to 96 months in federal prison for with traveling from Tennessee to Bloomington, Minnesota, for the purpose of engaging in illicit sexual conduct with a 13-year-old female. EVANS pleaded guilty on August 11, 2015, and was sentenced on January 22, 2016, before Judge Susan R. Nelson in U.S. District Court in St. Paul, Minn.
“The sexual exploitation of children by predators has reached epidemic proportions nationally and internationally,” said acting Special Agent in Charge William Lowder of HSI St. Paul. “Targeting these predators through the tireless efforts by our HSI special agents has been a high priority for more than a decade. These cases demonstrate how every parent must remain vigilant to Internet predators who may pose in various disguises to meet and ultimately sexually exploit children.”
According to the defendant’s guilty plea and documents filed in court, on June 12, 2015, EVANS used the screen name “taboolooking” on a social media site called “chathour.com,” to initiate a conversation with another user who EVANS believed to be a 13-year-old female. This user was actually an undercover federal agent. EVANS quickly turned the conversation sexual in nature, and discussed traveling from Tennessee to Minnesota to meet and have sex with the child.
According to the defendant’s guilty plea and documents filed in court, between June 12, 2015, and June 22, 2015, EVANS sent dozens of email messages and text messages describing the sexual acts he wanted to engage in with the girl. He also sent sexually explicit photos of himself. In one message, EVANS discussed bringing a digital camera so he could take pictures and video of himself having sex with the 13-year-old female.
According to the defendant’s guilty plea and documents filed in court, on June 22, 2015, EVANS was arrested shortly after he arrived at the Bloomington hotel at which he had planned to engage in illicit sexual relations with the 13-year-old female. Inside EVANS’ hotel room law enforcement found sex toys and lingerie on the bed, as well as a camera and illegal drugs. Inside EVANS’ vehicle, law enforcement found a loaded .38 caliber pistol.
This case was the result of an investigation conducted by Homeland Security Investigations with the assistance of the Bloomington Police Department.
This case was prosecuted by Assistant U.S. Attorney Kevin S. Ueland.
Defendant Information:
JEFFREY SCOTT EVANS, 51
Blaine, Tenn.
Convicted:
- Traveling with the intent to engage in illicit sexual conduct, 1 count
Sentenced:
- 96 months in prison
- 15 years supervised release
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Tax Preparer Sentenced for Filing False Tax Returns Using Names of Inmates, OthersRead the Press Release
KANSAS CITY, KAN. – A Kansas City tax preparer has been sentenced to 37 months in federal prison for filing false tax returns using the names of prison inmates and others, U.S. Attorney Barry Grissom said Wednesday.
Prayshana Washington, 28, Kansas City, Kan., pleaded guilty to one count of preparing false income tax returns and one count of aggravated identity theft. In her plea, she admitted that from 2012 to 2015 she was in the business of preparing individual income tax returns for clients, who generally paid between $500 and $1,000 for her services. She admitted:
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Filing tax returns for clients containing false claims about dependents, household help income, education credits and American Opportunity Credits.
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Directing the IRS to deposit fraudulent returns onto prepaid debit cards and mail them to addresses she controlled.
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Obtaining names, dates of birth and Social Security numbers for prison inmates and preparing fraudulent income tax returns in their names.
Grissom commended the Internal Revenue Service, Assistant U.S. Attorney Scott Rask and Matthew Kluge, Trial Attorney with the U.S. Department of Justice, Tax Division, for their work on the case.
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Shepherdsville Woman Guilty of Stealing $243,000 from Bullitt County EmployerRead the Press Release
Kathleen Marie Farias admits using employer’s funds to pay more than $243,000 in personal expenses over five year period
LOUISVILLE, KY – United States Attorney John E. Kuhn, Jr. announced the guilty plea of Kathleen Marie Farias to charges related to the theft of over $243,000 from her Bullitt County employer, before Judge Greg Stivers in U.S. District Court.
Farias, 53, a resident of Shepherdsville in Bullitt County, entered a guilty plea yesterday, to seven counts of wire fraud in the June 17, 2015 indictment. According to the indictment and to facts admitted by Farias in open court, from June 18, 2009 through September 22, 2014, Farias was employed as the office manager for Prestige Plastics Technology LLC, and was responsible for the business’ accounts payable. Farias used funds from the business’ account to make online bill payments of $243,257.06 for her own personal expenses, which included payments to charge cards and mortgage processors.
The court entered an agreed order of restitution setting forth $243,257.06 as the amount Farias is responsible to repay to her former employer.
If Farias had been convicted at trial, the maximum potential penalties were 140 years in prison, a $1,750,000 fine, and a three year period of supervised release.
The case is being prosecuted by Assistant United States Attorney Jason Snyder, and is being investigated by the Federal Bureau of Investigation, Louisville Division.
Farias is scheduled for sentencing before Judge Stivers on April 19 in Louisville, Kentucky.
Seven California Residents Charged with Operating Boiler Room Mortgage Loan Modification SchemeRead the Press Release
New Haven, Conn – A federal grand jury in New Haven has returned an indictment charging seven California residents with conspiracy and fraud offenses stemming from an alleged scheme to defraud homeowners across the United States who were seeking mortgage loan modifications. The 14-count indictment was returned under seal on January 21 and all seven defendants were arrested this morning.
Charged in the indictment are:
ARIA MALEKI, 33, of Santa Ana, Calif.
MEHDI MOAREFIAN, a.k.a. “Michael Miller,” 36, of Irvine, Calif.
KOWIT YUKTANON, a.k.a. “Eric Cannon,” 31, of Huntington Beach, Calif.
CUONG HUY KING, a.k.a. “James Nolan” and “Jimmy, 32, of Westminster, Calif.
DANIEL SHIAU, a.k.a. “Scott Decker,” 30, of Irvine, Calif.
SERJ GEUTSSOYAN, a.k.a. “Anthony Kirk,” 33, of Santa Ana, Calif.
MICHELLE LEFAOSEU, a.k.a. “Michelle Bennett,” 41, of Huntington Beach, Calif.The defendants will make initial appearances at 2:00 p.m. (PST) in federal court in Santa Ana, California, before U.S. Magistrate Judge Douglas F. McCormick. They are scheduled to be arraigned on February 17 before U.S. Magistrate Judge William I. Garfinkel in Bridgeport, Connecticut.
In association with today’s arrests, law enforcement seized approximately $350,000 from various bank accounts, approximately $362,000 from a Bitcoin account, a $100,000 cashier’s check, and a 2013 Ferrari 458 Italia.
“As the indictment alleges, these seven defendants preyed on struggling homeowners in Connecticut and across the United States, falsely offering mortgage relief in exchange for thousands of dollars that the victims clearly could not afford to spend,” said Deirdre M. Daly, U.S. Attorney for the District of Connecticut. “I thank our federal and state law enforcement partners in New England, New Jersey, California and Oklahoma for investigating this matter, shutting down this alleged scam and arresting these seven defendants.”
“Some frauds are complex with multiple dimensions, but our agents coupled with all law enforcement multipliers will inevitably uncover the scheme,” said Terence Opiola, Special Agent in Charge of Homeland Security Investigations (HSI) in Newark. “I commend all of our partners for a job well done.”
“These individuals allegedly took advantage of the national mortgage crisis,” said Shelly A. Binkowski, Postal Inspector in Charge for the Boston Division of the U.S. Postal Inspection Service. “These arrests clearly demonstrate that those who target hardworking homeowners in today’s challenging economy will be held accountable. I commend the hard work and countless hours put forth by all of the law enforcement agencies involved in this investigation. The U.S. Postal Inspection Service will continue to investigate these crimes to protect consumers and our nation’s mail system from being used for illegal or dangerous purposes.”
“The arrests and charges announced today serve to remind the public that we will continue the important work of investigating mortgage industry professionals who deceive and defraud homeowners, HUD’s Federal Housing Administration, and mortgage lending institutions to satisfy their greed,” said Christina Scaringi, Special Agent in Charge, HUD OIG, Northeast Region. “As alleged, the conduct of these defendants is particularly troubling as it is yet another reminder of the profit schemes designed to enrich themselves at the expense of lenders and government programs designed to help citizens find their way out of the mortgage crisis of the late 2000’s. We thank our law enforcement partners and the U.S. Attorney’s Office for this joint effort in ensuring these defendants are brought to justice.”
“These individuals are alleged to have engaged in a scheme that deceived and victimized homeowners at a time when the victims were most vulnerable as they were working to stay in their homes,” said Leslie DeMarco, Special Agent in Charge, Western Region, Federal Housing Finance Agency – Office of Inspector General. “We are proud to work with our law enforcement partners on this case and will continue to work with them to bring to justice all fraudsters who attempt to take advantage of unwitting victims.”
“This indictment highlights the collaborative effort of law enforcement across this country to protect home owners and potential buyers against financial fraud,” said Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation. “These seven individuals ultimately failed at attempts to avoid law enforcement by changing the names of their business. Despite the name changes, the mission of profit by deceit remained the same. We will pursue mortgage and financial fraud utilizing all local, state and federal resources available.”
According to the indictment, the defendants jointly operated a series of California-based companies that falsely purported to provide home mortgage loan modification services to numerous homeowners in Connecticut and across the United States in exchange for upfront fees. The defendants did business, at various times, as “First Choice Financial Group, Inc.,” “First Choice Financial,” “First Choice Debt,” “Legal Modification Firm,” “National Freedom Group,” “Home Care Alliance Group,” “Home Protection Firm,” “Hardship Center,” “Network Solutions Center, Inc.,” “Premiere Financial Center,” “Premiere Financial,” “Rescue Firm,” “International Research Group LLC,” “Hardship Solutions,” “American Loan Center,” “Loan Retention Firm,” “Clear Vision Financial,” “Green Tree Financial Group,” “Green Tree Financial,” “Enigma Fund, Inc.,” “National Aid Group,” “Southern Chapman Group LLC,” “Save Point Financial,” “Best Rate Financial Solutions,” “Best Rate Financial Solution,” “Best Rate Financial,” “Best Rate Finance Group,” “Nation Star Financial,” and “Nation Star Fin Group.”
The indictment alleges that, acting as representatives of these entities, the defendants and their co-conspirators cold-called homeowners and offered to provide mortgage loan modification services to those who were having difficulty repaying their home mortgage loans. The defendants charged homeowners fees that typically ranged from approximately $2,500 to $4,300 for their services. To induce homeowners to pay these fees, the defendants falsely represented that the homeowners already had been approved for mortgage loan modifications on extremely favorable terms; the mortgage loan modifications already had been negotiated with the homeowners’ lenders; the homeowners qualified for and would receive financial assistance under various government mortgage relief programs, including the Troubled Asset Relief Program and the Home Affordable Modification Program; and if for some reason the mortgage loan modifications fell through, the homeowners would be entitled to a full refund of their fees.
The indictment alleges that the homeowners had not been preapproved for mortgage loan modifications with lenders, mortgage loan modifications had not been negotiated with the lenders, homeowners did not qualify for and did not receive any financial assistance through government mortgage relief programs, and homeowners did not receive a refund of their fees upon request. Few homeowners ever received any type of mortgage loan modification through the defendants’ companies, and few homeowners received refunds of their fees.
The indictment further alleges that the defendants used pseudonyms and periodically changed their business and operating names to evade detection. The defendants also directed homeowners to mail their checks to addresses and mail boxes that the defendants and their co-conspirators had set up in states other than California.
According to the indictment, the defendants routinely ignored cease and desist orders directed at them, including a December 17, 2013, order from the State of Connecticut Department of Banking to cease and desist from charging advance fees to Connecticut residents for mortgage modification services.
The indictment alleges that MALEKI presided over the entire structure of this scheme, that MOAREFIAN, YUKTANON, KING, SHIAU and GEUTSSOYAN acted as “closers,” and that LEFAOSEU was the head of the processing team.
The indictment charges all of the defendants with conspiracy to commit mail and wire fraud. In addition, MOAREFIAN, YUKTANON, KING, SHIAU, GEUTSSOYAN and LEFAOSEU are each charged with one or more counts of mail fraud, and MOAREFIAN, YUKTANON, KING and SHIAU are charged with one of more counts of wire fraud.
If convicted, the defendants face a maximum term of imprisonment of 20 years on each count, and up to an additional 10 years of imprisonment for participating in a crime that involved telemarketing fraud and victimized 10 or more persons over age 55.
This matter is being investigated by U.S. Department of Homeland Security – Homeland Security Investigations, the U.S. Postal Inspection Service, Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), U.S. Department of Housing and Urban Development – Office of Inspector General, the Federal Housing Finance Agency – Office of Inspector General, and Federal Bureau of Investigation, with assistance from the Oklahoma Attorney General’s Office.
The case is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Avi M. Perry and Sarah P. Karwan, with assistance from Assistant U.S. Attorney Joshua Robbins of the U.S. Attorney’s Office for the Central District of California.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Sedalia Man Sentenced for Meth ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Sedalia, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine.
Shane Scott Longie, 39, of Sedalia, was sentenced by U.S. District Judge Stephen R. Bough to 10 years in federal prison without parole.
On Sept. 1, 2015, Longie pleaded guilty to participating in a conspiracy to distribute methamphetamine and to possess methamphetamine with the intent to distribute in Pettis County, Mo., from August 2012 to March 2013. A confidential informant provided information that Longie was selling multiple ounces of methamphetamine in Sedalia each week. An undercover law enforcement officer purchased a total of 56 grams of methamphetamine from Longie on two occasions in November 2012 and March 2013.
This case was prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Sedalia, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Sebago Man Sentenced to Two Years of Probation for Interstate Theft of NarcoticsRead the Press Release
Contact: Julia M. Lipez
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Jeffrey P. Wheeler, Jr., 31, of Sebago, Maine, was sentenced today in U.S. District Court by Judge Jon D. Levy to two years of probation for theft from interstate shipments. Wheeler also was ordered to pay $1,376.28 in restitution. He pleaded guilty on September 28, 2015.
Court records reveal that between December 2013 and February 2014, Wheeler was employed as a delivery truck driver for United Parcel Service (UPS). During this period, Wheeler stole several shipments of prescription narcotic medications that had been shipped via UPS from the Veterans Administration medical facility in Togus, Maine to outpatient veteran clients.
This case was investigated by the Criminal Investigations Division of the U.S. Department of Veterans Affairs, Office of Inspector General.
Sabinal Income Tax Return Preparer Sentenced to Federal PrisonRead the Press Release
In Del Rio today, Mary Davis Reyes, owner and operator of Fast Tax in Sabinal, TX, was sentenced to 30 months in federal prison for preparing a false tax return, announced United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter in San Antonio.
In addition to the prison term, United States District Judge Alia Moses ordered that Reyes pay $87,371.08 restitution to the Internal Revenue Service and be placed on supervised release for a period of one year after completing her prison term.
On November 19, 2014, Reyes pleaded guilty to one count of aiding and assisting in the preparation of a false tax return. By pleading guilty, Reyes admitted that in April 2009, she knowingly prepared a false and fraudulent income tax return which claimed a $5,673 refund for a client.
According to court records, during tax years 2007 through 2009, Reyes provided false information under the Earned Income (EIC) Provisions of the tax code in order to maximize her clients’ refunds. The IRS-CI investigation determined that Reyes aided and assisted in the preparation and filing of a number of similar false tax returns with a combined loss of $87,371.08.
“Today’s sentencing of Mary Davis Reyes is a reminder to honest taxpayers to take care when choosing a tax return preparer,” said IRS-Criminal Investigation San Antonio Special Agent in Charge William Cotter. “Reyes’ Fast Tax service was in the business of trying to pull a fast one on the IRS. Putting abusive return preparers out of business is a top priority for IRS-CI. Taxpayers looking for tax preparation information are encouraged to visit IRS.gov.”
Assistant United States Attorney William R. Harris prosecuted this case on behalf of the Government.
Rochester Man Sentenced in Sex Trafficking CaseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr., announced today that Daniel Tanck, 33, of Rochester, NY, who was convicted of sex trafficking of a minor, was sentenced to 150 months in prison and 10 years supervised release by Chief U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that Tanck placed an ad on Backpage.com for a minor female victim to engage in prostitution activities. The defendant took pictures of the victim for the Backpage.com ad at his residence on Emerson Street in Rochester. Tanck also transported the victim, who was under 15 years old, for outcalls to service customers.
Tanck was arrested along with Robert Palermo. Palermo was sentenced to 135 months in prison for attempting to hire a hit man to murder the victim in this case.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation's Cyber Crimes Task Force, which includes the Monroe County Sheriff's Office, the Rochester Police Department, and Immigration and Customs Enforcement, Homeland Security Investigations. Additional assistance was provided by the Monroe County District Attorney's Office, under the direction of Sandra Doorley.
Riceville Man Sentenced to over 11 Years for Possessing Child PornographyRead the Press Release
A man who possessed child pornography was sentenced January 22, 2016 to over 11 years in federal prison.
Adam Haacke, age 27, from Riceville, Iowa, received the sentence after an October 26, 2015 guilty plea to one count of possession of child pornography. At the plea hearing, Haacke admitted that, between 2014 and 2015, he knowingly possessed child pornography on a hard drive.
Haacke was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Haacke was sentenced to 135 months’ imprisonment. A special assessment of $100 was imposed, and he must also serve a 10-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Hancock County Sheriff’s Office, the Mitchell County Sheriff’s Office, and the Mason City Police Department.
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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 15-2029.
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Prior Felon from Artesia Pleads Guilty to Federal Narcotics Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Floyd Albert Sherrell, 33, of Artesia, N.M., pleaded guilty today in federal court in Las Cruces, N.M., to methamphetamine trafficking and firearms charges under a plea agreement with the U.S. Attorney’s Office.
Sherrell was arrested on Sept. 1, 2015, on an indictment charging him with unlawfully possessing firearms on June 10, 2014, and distributing methamphetamine on June 12, 2014. Both offenses took place in Eddy County, N.M. At the time, Sherrell was prohibited from possessing firearms or ammunition because he previously had been convicted of larceny of a firearm and burglary. The indictment also included forfeiture allegations requiring Sherrell to forfeit $1,300.00 to the United States.
During today’s hearing, Sherrell pled guilty to a felony information charging him with being a felon in possession of firearms and distribution of methamphetamine. In entering his guilty plea, Sherrell admitted that on June 10, 2014, he sold four firearms to an undercover law enforcement agent, and on June 12, 2014, he sold 25 grams of pure methamphetamine to an undercover law enforcement agent.
At sentencing, Sherrell faces a maximum penalty of 20 years in federal prison followed by not less than three years of supervised release. A sentencing hearing has yet to be scheduled.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pecos Valley Drug Task Force and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Owner of San Franciso Business Pleads Guilty to Filing False Tax ReturnRead the Press Release
SAN FRANCISCO – Sean Love was charged and pleaded guilty to filing a false federal income tax return, announced Acting United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Michael T. Batdorf.
In pleading guilty, Love, 46, of San Francisco, admitted he owned and operated Love Painting, a San Francisco-based sole proprietorship that provided painting services in and around the Bay Area. For the 2009 tax year, Love informed his tax return preparer that Love Painting had received $391,810 in gross business receipts during 2009. Love knew the return preparer would use that figure to report the gross business receipts on Schedule C of his 2009 federal income tax return and that his gross receipts were underreported by an additional $357,135. As a result of underreporting the gross business receipts that should have been reported on Schedule C of his 2009 federal income tax return, additional tax was due and owing to the Internal Revenue Service for his 2009 federal income tax liability in the amount of $119,839. On January 7, 2016, Love was charged by information with filing a false return in violation of 26 U.S.C. §7206(1).
Defendant’s sentencing hearing is scheduled to take place in San Francisco on June 14, 2016, before the Honorable Richard Seeborg, United States District Judge. The maximum penalty for filing a false tax return in violation of 26 U.S.C. § 7206(1) is 3 years in prison and a fine of $250,000. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Cynthia Stier is prosecuting this case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Orofino Man Admits Illegal Gun PossessionRead the Press Release
COEUR D'ALENE - Stephen C. Walker, 23, of Orofino, Idaho, pleaded guilty today to unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced. Walker was indicted by a federal grand jury in Coeur d'Alene on June 16, 2015.
According to the plea agreement, Walker admitted that on October 29, 2014, he had a .22 caliber firearm in his back pocket. The defendant was prohibited from possessing a firearm due to a previous felony conviction for burglary. The defendant was contacted by police around midnight, in an area that had been subjected to burglaries the night before.
The charge of unlawful possession of a firearm is punishable by up to 10 years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for May 10, 2016, before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d'Alene.
The case was investigated by the Orofino City Police Department, the Nez Perce Tribal Police, FBI and ATF.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Operator of Two Macon Co. Companies Pleads Guilty to Securities Fraud and Money Laundering Charges for Defrauding Commodities Trading Investors of Approximately $2.5 MillionRead the Press Release
ASHEVILLE, N.C. – The operator of two companies located in Franklin, N.C. pleaded guilty on Monday, January 25, 2016, to fraud by commodities pool operator and concealment of money laundering charges, for defrauding his investors of approximately $2.5 million, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Rose is joined by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, in making today’s announcement.
According to the criminal bill of information filed on January 12, 2016, and related plea documents, beginning in at least August 2011, Barry Carlton Taylor, 64, of Franklin, N.C., solicited investment funds from at least 18 victims totaling approximately $2.5 million. Taylor operated two limited liability companies in Franklin, N.C., “OTC Investments, LLC” (OTC) and “Forex Currency Trade Advisors, LLC” (FCTA). According to filed documents, Taylor misrepresented to his investor victims that he was an expert in the foreign currency exchange market (FOREX) and that their investments would be pooled into trading accounts which he would manage and use to invest in FOREX. Taylor also falsely told his victims that he had created a computer software system that could track the FOREX market, which enabled him to make investments that generated very high rates of return, as much as 2.5% per month.
According to court records, even though Taylor opened and maintained FOREX trading accounts in the names of his two companies neither company was registered as a commodity pool operator. Court records also show that Taylor collected money from the individual victim investors and deposited the funds into these trading accounts, but he then withdrew more than half of the victims’ money and lost the rest due to trading losses, fees and commissions. According to court records, by April 2015 there was very little or no investor funds remaining in the trading accounts Taylor controlled.
According to court records, Taylor concealed the losses from his investors by sending the victims false monthly statements that fraudulently represented that the investors’ principal was intact and that they were realizing profits as promised. Court records also indicate that Taylor used money from other principal investors to make Ponzi-style payments to investors who had asked Taylor to withdraw their profits on their promised returns. Taylor also convinced some of the investors to reinvest their “commissions” rather than accepting payments.
In furtherance of the fraudulent scheme, court records show that Taylor used a number of lies to further induce investors and to conceal the fraud. For example, in January 2015, Taylor sent his customers fraudulent emails claiming that he had halted FOREX trading due to events involving the Swiss National bank. In another example, court records show that Taylor created a fictitious entity and a fictitious person in order to send lulling emails to calm his investors, and later lied to victims telling them he was considering taking legal action against this fictitious individual who was supposedly responsible for their trading losses.
Contrary to promises made to his victim investors, Taylor diverted over half a million dollars of the victims’ investment funds and used them to cover personal expense, such as restaurants, entertainment and shopping, among others.
Taylor was released on bond following his guilty plea. The fraud by commodities pool operator charge carries a maximum prison term of 10 years and a $1 million fine. The concealment money laundering charge carries a maximum prison term of 20 years and a $500,000 fine. A sentencing date for the defendant has not been set.
The case is being investigated FBI. In making this announcement, U.S. Attorney Rose also thanked the U.S. Commodities Futures Trading Commission for their invaluable assistance in this investigation.
The prosecution is being handled by Assistant United States Attorney Don Gast of the U.S. Attorney’s Office in Asheville.
Operation Green Giant: Muskogee Woman Sentenced to 41 Months for Drug ConspiracyRead the Press Release
“OPERATION GREEN GIANT”
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that ANDREANA LYNN HILL, age 38, of Muskogee, Oklahoma was sentenced to 41 months imprisonment, followed by 4 years of supervised release for Drug Conspiracy, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(B).
The Indictment alleged that the defendant and others coordinated and orchestrated the transportation of cocaine from source locations to the Eastern District of Oklahoma and used telephones, cellular and otherwise, to conduct and carry out the organization’s objectives.
The charges arose from a joint investigation by the Oklahoma Bureau of Narcotics, the Muskogee Police Department, the Muskogee County Sheriff’s Department and the United States Marshals Service.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee presided over the hearing. The defendant will remain in the custody of the United States Marshals Service pending transportation to the designated federal prison at which she will serve her nonparoleable sentence.
Assistant United States Attorney Shannon Henson represented the United States.
Onondaga County Woman Pleads Guilty to Theft of Pension FundsRead the Press Release
SYRACUSE, NEW YORK–Lorraine Lorini, 55, of Nedrow, New York, pleaded guilty to one felony count of theft of government money, announced United States Attorney Richard S. Hartunian. Lorini will be sentenced in June and faces up to ten years in prison and a fine of up to $250,000, although under the United States Sentencing Guidelines her actual sentence may be less.
Lorini admitted that she applied for and received pension benefits from the Pension Benefit Guaranty Corporation (PBGC), an independent agency of the United States, on behalf of her mother, who was already deceased. Lorini also admitted that she collected more than $37,000 in pension benefits in her deceased mother’s name and that she retained this money for her own use. As part of her plea, Lorini agreed to make full restitution to PBGC.
This case was investigated by the Office of Inspector General for PBGC, and it is being prosecuted by Assistant United States Attorney Michael F. Perry.
New York State Court Officer Arrested for Robbery ConspiracyRead the Press Release
Earlier today, Nicholas Giovatto, a New York State Court Officer, who had been assigned to the Bronx County Supreme Court, was arrested and charged with robbery conspiracy and related firearm charges by members of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the New York City Police Department’s (NYPD) Police Impersonation Investigation Unit.[1] The defendant’s initial appearance is scheduled this afternoon before United States Magistrate Judge Steven I. Locke, at the United States Courthouse, 100 Federal Plaza, Central Islip, New York.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, Delano A. Reid, Special Agent in Charge, New York Field Division, ATF, and William J. Bratton, Commissioner, NYPD.
“Law enforcement officers who violate their oath to protect the public, whether inside or outside the courthouse, will be held accountable for their actions. No one is above the law,” stated United States Attorney Capers.
“As alleged, the defendant - on more than one occasion - misused his position of trust when he posed as a law enforcement officer to commit home invasion robberies. The defendant apparently believes that a life of crime would be more beneficial than one of protecting and serving. I suspect that now that he has been indoctrinated into the federal judicial system, he will quickly realize he made the wrong choice,” stated ATF Special Agent in Charge Reid.
“This arrest demonstrates that there is no tolerance for corruption at any level. I commend the work of the members of the NYPD Police Impersonation Investigation Unit, the agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the prosecutors of the United States Eastern District who are involved in this investigation,” said Police Commissioner Bratton.
According to the complaint, between December 2011 and March 2012, Giovatto was a member of a robbery crew that conspired to commit armed home invasion robberies of narcotics dealers on Long Island and in Queens. On December 20, 2011, Giovatto and another member of his crew entered a residence in Queens, New York, by falsely identifying themselves as police officers and claiming they had a search warrant for the premises. Upon entering the residence, Giovatto brandished a firearm, while his co-conspirator handcuffed the victim. They then ransacked the premises and stole more than $30,000 and several pieces of jewelry. Giovatto and his co-conspirator targeted this location for robbery because one of the residents was believed to be a narcotics trafficker.
Similarly, the complaint charges that, on March 10, 2012, Giovatto and another member of the robbery crew attempted to enter a residence in Queens, New York, in order to rob the occupants who they believed were involved in marijuana trafficking. Giovatto and his co-conspirator falsely identified themselves as police officers but were denied access to the residence by the intended robbery victims.
The government’s case is being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorneys Lara Treinis Gatz and Grace M. Cucchissi are in charge of the prosecution.
The Defendant:
NICHOLAS GIOVATTO
Age: 37
New York, New YorkE.D.N.Y. Docket No. 16-MJ-51 (AKT)
[1] The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.