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Tuesday 26 January 2016
New York Man Charged with Great Bend Bank RobberyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Scranton indicted Robert Meader, age 31, of Liverpool, New York, yesterday for committing the robbery of the NBT Bank, Route 11, Great Bend, Pennsylvania.
The Grand Jury indictment alleges that Meader robbed the NBT Bank on October 13, 2015, and took $14,147 in United States Currency.
According to U.S. Attorney Peter Smith, the indictment was unsealed today following the arrest of Meader in New York. Meader appeared before U.S. Magistrate Judge Karoline Mehalchick and was detained pending trial. He is presently being held at the Lackawanna County Jail in Scranton.
The case was jointly investigated by special agents of the Federal Bureau of Investigation, the Pennsylvania State Police, and the Onondaga County Sheriff’s Office, New York. Prosecution is assigned to Assistant United States Attorney John Gurganus.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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New Hampshire Couple Indicted in $2 Million Union FraudRead the Press Release
BOSTON – A husband and wife who operated an asbestos removal business were arrested today in connection with a fraudulent “double breasted shop” scheme aimed at enabling them to defraud the Massachusetts Laborers Benefit Fund (MLBF) of more than $2 million. A “double breasted shop” is a business which enters into a collective bargaining agreement with a union while at the same time seeking to avoid its contractual obligations by operating an alter ego non-union company.
Christopher Thompson and Kimberly Thompson, both 52, of Windham, NH, were indicted on 18 counts of mail fraud, one count of benefit fund embezzlement, and 18 counts of filing false documents with an ERISA fund. Also charged are the two corporate entities used by the Thompsons to perpetrate the fraud: AQE, Inc. and Air Quality Experts, Inc. The Thompsons will have an initial appearance before U.S. District Court Magistrate Judge Marianne B. Bowler at 3:00 p.m.
According the indictment, the Thompsons employed members of Tewksbury Local 1421 of the Laborers International Union of North America. The Thompsons allegedly paid members of Local 1421 for jobs which required union participation from the AQE, Inc. payroll which was a union signatory corporation. When the jobs did not require a union signatory company, the Thompsons paid the union members from the Air Quality Experts, Inc. payroll. In these instances, the union members did not receive union rates, and benefits were not paid by the Thompsons to the MLBF which provides medical and pension benefits to 8,000 laborers and their families in Massachusetts. The Thompsons allegedly sent “remittance reports” to the MLBF which failed to report thousands of hours worked by members of Local 1421. By significantly under reporting the hours worked by union members, the Thompsons failed to pay over $2 million to the MLBF.
The mail fraud charges each provide for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the loss or gain from the offense. The benefit fund embezzlement and false statements charges each provide for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 or twice the loss or gain from the offense. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Cheryl Garcia, Special Agent in Charge of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigation, New York Region; and Susan Hensley, Regional Director of the Department of Labor, Employee Benefits and Security Administration, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Fred M. Wyshak, Jr., Chief of Ortiz’s Public Corruption Unit.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Mother and Son Named in Federal Grand Jury Indictments that Allege Smuggling of Ammunition and Firearm Parts to PhilippinesRead the Press Release
LOS ANGELES – A Long Beach woman and her son have been named in federal grand jury indictments that charge them with illegally shipping hundreds of thousands of dollars’ worth of firearms parts and ammunition to their native Philippines – munitions that were concealed in shipments they falsely claimed to be household goods.
Marlou Mendoza, 60, and Mark Louie Mendoza, 30, are named in separate indictments that were returned by a federal grand jury on December 10.
Marlou Mendoza was arrested last week at Los Angeles International Airport as she returned from a trip to the Philippines. The case against Marlou Mendoza, which charges her with illegally shipping ammunition, was unsealed after she was taken into custody on January 20 by special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Meanwhile, Mark Mendoza, who is a citizen of the Philippines, remains at large and is believed to be in the Philippines. The United States Attorney’s Office today learned that a federal judge has unsealed the case against Mark Medoza, who is named in an eight-count indictment that charges him with conspiracy, the unlawful export of munitions, smuggling and money laundering.
Mark Mendoza, who was the president of a “tools and equipments” company known as Last Resort Armaments, ordered more than $100,000 worth of ammunition and firearms accessories, much of which was delivered to his parent’s Long Beach residence over a six-month period in 2011. The items that Mark Mendoza ordered included parts for M-16 and AR-15-type rifles, and these parts are listed as defense articles on the United States Munitions List. Pursuant to the Arms Export Control Act, items on the Munitions List may not be shipped to the Philippines without an export license issued by the Department of State.
The money laundering charge against Mark Mendoza alleges that during the first six months of 2011, Mark Mendoza transferred more than $650,000 in proceeds generated by the illegal ammunition exports from an account in the Philippines to a money remitter in Los Angeles.
Marlou Mendoza is named in a three-count indictment that accuses her of failing to provide the required written notice to freight forwarders that she was shipping ammunition. The indictment cites three instances in 2011 when Marlou Mendoza allegedly shipped tens of thousands of rounds of .22-caliber ammunition and bullets.
“The Arms Export Control Act is designed to keep weapons out of the hands of people who may act against the interests of the United States,” said United States Attorney Eileen M. Decker. “The weapons shipments charged in the indictments allowed firearm parts and ammunition to leave the United States and travel to the Philippines, where they could have been sold to anyone. Controlling the trafficking of weapons abroad is critical to protecting American interests abroad.”
The charges against the Mendozas are the product of a joint probe by HSI and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) that began in 2011 after U.S. Customs and Border Protection (CBP) officers uncovered a cache of ammunition and firearms parts in an outbound crate being shipped by Marlou Mendoza that had falsely been declared to be household effects. In July 2011, CBP and the Philippine Bureau of Customs (BOC) intercepted and seized three separate shipments from Last Resort Armaments containing approximately 180,000 rounds of .22-caliber ammunition, and more than three dozen receivers for AR-15 and M-16 assault rifles. In November 2012, specials agents with HSI and ATF special agents executed a search warrant at a location associated with Last Resort Armaments, seizing more than 120,000 rounds of .22-caliber ammunition, along with AR-15 trigger assemblies, magazines, sights and rifle barrels.
“The ammunition and accessories seized in this case represent quite an arsenal. Once these goods reached the Philippines, we can’t be certain where they wound up – whether it’s in the hands of hobbyists or those with more menacing intentions,” said Joseph Macias, Special Agent in Charge for HSI Los Angeles. “That’s why such exports are closely regulated, to help prevent sensitive items from falling into the hands of those who might seek to harm America or its interests.”
ATF Los Angeles Special Agent in Charge Eric D. Harden said, “ATF is making clear that it if you are engaged in the business of selling firearms or dealing in munitions, you must comply with industry standards and regulations, no matter where you conduct your business – from a store, at gun shows, or over the Internet.”
Anne Maricich, Acting Director of Field Operations for CBP in Los Angeles, commented: “CBP’s LA/LB Seaport Outbound Team’s expertise in reviewing manifests and determining which shipments to physically inspect are noteworthy. One pattern they encounter is a significant number of illegal firearms, firearms parts and ammunition manifested as ‘household goods and personal effects’ destined for the Philippines. In this case, they flagged such a shipment and seized a substantial quantity of rounds, bullets, weapon parts and accessories in it – which all allegedly lacked required licenses or exemptions in violation of International Traffic in Arms and Export Administration Regulations. It’s rewarding when our partnerships with HSI and ATF advance from intercepting to halting illegal schemes that could jeopardize the public’s safety.”
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Marlou Mendoza was arraigned in federal court on January 20 and was ordered released on a $10,000 bond pending trial, which is scheduled for March 1 before United States District Judge George H. Wu. If convicted of all three counts contained in the indictment, she faces a statutory maximum penalty of 15 years in federal prison.
Mark Mendoza is charged with conspiracy, three counts of unlawful export of munitions, three counts of export smuggling and one count of money laundering. If he was convicted of all counts in the indictment, Mark Mendoza would face a statutory maximum sentence of 115 years in federal prison.
Minneapolis Man Pleads Guilty to Transporting Woman for ProstitutionRead the Press Release
FARGO - U. S. Attorney Christopher C. Myers announced that on Jan. 26, 2016, Ronnel Johnson, 31, Minneapolis, Minn., pled guilty before U. S. District Judge Ralph R. Erickson to One Count of Transportation for the Purposes of Prostitution.
This case came to the attention of law enforcement after the North Dakota Highway Patrol stopped a rental vehicle driven by Johnson on I-94 near Valley City, North Dakota. Johnson and his female passenger were traveling from Minneapolis, Minnesota, to Williston, North Dakota. When interviewed by law enforcement during the traffic stop, Johnson and his passenger gave conflicting stories about the purpose of their trip to Williston. A subsequent search of the vehicle revealed cell phones which contained text messages sent and received by Johnson that revealed that he was involved in directing prostitution. Johnson’s cell phone also revealed sexually explicit photographs of at least two women that were identical to photographs that ran in backpage.com advertisements for commercial sex in western North Dakota.
One such victim depicted in photographs that were recovered from Johnson’s cell phone and the backpage.com advertisement reported that Johnson had previously transported her to Williston, North Dakota, for the purpose of prostitution.
Sentencing has tentatively been set for April 18, 2016, at the U. S. District Court in Fargo. Johnson could face up to 10-years in prison, lifetime supervised release, and/or a $250,000 fine.
This case was investigated by the North Dakota Highway Patrol, North Dakota Bureau of Criminal Investigation, Minneapolis Police Department, and the Federal Bureau of Investigation.
Assistant U. S. Attorney Jennifer Puhl is prosecuting the case.
Miami Man Sentenced for Synthetic Drug Distribution and Firearm ConvictionsRead the Press Release
Jean Baptiste Joseph, 26, of Miami, was sentenced last week by United States District Judge Federico A. Moreno to 55 years in prison, following his trial convictions for possession with intent to distribute more than 1 kilogram of ethylone, in violation of Title 21, United States Code, Section 841; possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1); and possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Carlos A. Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, Antonio Brooklen, Chief, Miami Gardens Police Department, and Amos Rojas, Jr., United States Marshal, U.S. Marshals Service (USMS), made the announcement.
According to trial evidence and court documents, on June 5, 2015, a U.S. Marshals Task Force went to a residence in Miami Gardens, Florida, to arrest Joseph in connection with a separate criminal investigation. The U.S. Marshals took Joseph into custody in his bedroom and, as he was being arrested, they saw in plain view, a loaded AK-47 pistol in the open closet and two Ziploc bags containing more than 1 kilogram of ethylone, a synthetic narcotic, on a television stand.
The Miami Gardens Police Department’s subsequent investigation revealed that, in addition to the assault rifle and ethylone, Joseph also possessed a Ziploc bag with 70 grams of marijuana, a 100-round drum magazine (loaded with 65 AK-47 rounds of ammunition), a high capacity 9 mm magazine, two boxes of 9 mm ammunition, empty pill capsules, empty baggies with marijuana logos, a boot stuffed with money, a digital scale, and Joseph’s passport, Social Security card and Florida identification card.
During recorded phone calls following his arrest, Joseph told his associates that he was caught in his bedroom with his “stick,” which referred to his AK-47, and his “work,” which referred to the narcotics.
Mr. Ferrer commended the efforts of ATF, USMS, and the Miami Gardens Police Department in the investigation and prosecution of this case. This case was prosecuted by Assistant U.S. Attorneys Jonathan Osborne and Michael Thakur.
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
Lincoln Man Charged with Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney, Deborah R. Gilg, announced that on January 25, 2016, an Indictment was unsealed charging Zachary A. Olson, 26, of Lincoln, with conspiracy to distribute and possess with the intent to distribute 500 grams or more of a substance containing methamphetamine between October 1, 2014, and October 27, 2015. 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.
Olson had an initial appearance in federal court in Lincoln on January 26, 2016. He is scheduled for trial beginning on March 28, 2015. Olson is currently serving a state sentence and was ordered detained pending trial.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Las Cruces Man Pleads Guilty to Federal Drug Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Robert J. Lambe, 37, of Las Cruces, N.M., pleaded guilty today in federal court to methamphetamine trafficking and firearms charges under a plea agreement with the U.S. Attorney’s Office.
Lambe was arrested on Oct. 15, 2014, on an indictment charging him with possession of methamphetamine with intent to distribute and possession of a firearm in relation to a drug trafficking crime on June 8, 2014, in Doña Ana County, N.M. The indictment was subsequently superseded on Feb. 18, 2015.
During today’s proceedings, Lambe pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute and possession of a firearm by a person addicted to controlled substances. In entering the guilty plea, Lambe admitted that on June 8, 2014, he possessed 25 grams of pure methamphetamine and a handgun. Lambe further admitted that at the time, he was an unlawful drug user and was addicted to a controlled substance and was therefore prohibited from possessing a firearm.
At sentencing, Lambe faces a maximum penalty of 20 years in federal prison followed by not less than three years of supervised release. Lambe remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces office of the FBI and the Las Cruces Police Department. The case is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
Las Cruces Felon Sentenced to 70 Months for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Jesse Antillon, Jr., 29, of Las Cruces, N.M., was sentenced today in federal court to 70 months in prison followed by three years of supervised release for violating the federal firearms laws. The sentence was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, and Chief Jaime Montoya of the Las Cruces Police Department.
Antillon was charged in a criminal complaint on July 13, 2014, with unlawfully possessing a firearm on Nov. 6, 2013, in Doña Ana County, N.M. According to the complaint, Antillon was stopped by law enforcement on Nov. 6, 2013, based on an outstanding probation violation warrant, and was found to be in possession of a firearm and ammunition. Antillon was subsequently indicted on the same charge on March 24, 2015. Antillon was prohibited from possessing firearms or ammunition because he had previously been convicted of numerous felony offenses, including aggravated assault with a deadly weapon, child abuse, aggravated assault against a household member with a deadly weapon, possession of narcotics with intent to distribute, attempt to escape from a peace officer and battery upon a peace officer.
On Sept. 11, 2015, Antillon pled guilty to a felony information charging him with possession of a stolen firearm. In entering his guilty plea, Antillon admitted that on Nov. 6, 2013, he entered a vehicle and stole a handgun.
This case was investigated by the Las Cruces office of the FBI and the Las Cruces Police Department. Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
The case is being prosecuted as part of the federal “worst of the worst” anti-violence initiative. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior felony convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Doña Ana County, under this initiative.
Lake City Man Sentenced to 13 Years in Federal Prison for Transportation of Child PornographyRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced Robert Lamar Starling (31, Lake City) to 13 years in federal prison for transporting child pornography over the Internet. He was also ordered to serve a 15-year term of supervised release and to register as a sex offender. He has been in federal custody since his arrest on May 1, 2014.
According to court documents, beginning in September 2013, FBI agents executed a series of search warrants on several email accounts around the country and determined, among other things, that a user in Lake City, Florida had uploaded images of child pornography to the Internet, using an account on a photo sharing site. Further investigation traced the account back to a residence in Lake City, where Starling resided.
On May 1, 2014, FBI agents and other law enforcement officers executed a federal search warrant at the residence. Starling was not at the residence, but was located later that morning driving his golf cart at the Suwannee Music Park & Campground in Live Oak. During an interview at his campsite, Starling stated that he had produced pornographic images of several prepubescent children. Subsequent analyses of Starling’s laptop computer revealed that it contained more than 8,000 images and over 2,000 videos depicting child pornography.
This case was investigated by the Federal Bureau of Investigation, the Columbia County Sheriff’s Office, the Suwannee County Sheriff’s Office, the Florida Department of Law Enforcement, and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Justice Department Announces New Chief Executive Officer of Federal Prison IndustriesRead the Press Release
Attorney General Loretta E. Lynch announced today the hiring of Gary Simpson to serve as the new CEO of Federal Prison Industries (FPI).
“Today, Federal Prison Industries remains the Bureau of Prisons’ largest and most successful reentry program, helping men and women find a new sense of purpose and develop concrete skills that they can bring back to their communities,” said Attorney General Loretta Lynch. “I am pleased to welcome its new CEO, Gary Simpson – an expert in manufacturing operations with 28 years of experience. Over the next few years, Gary will spearhead a business transformation plan to expand FPI’s activities – using a business model that results in no costs to the taxpayers – to ensure that more incarcerated individuals can take advantage of this vital program.”
Gary Simpson comes to FPI with over 28 years of experience in manufacturing operations at Procter and Gamble. Simpson is an expert in the areas of cost effective product launches, operational turnarounds and sourcing optimization. He will use these skills to lead FPI’s business transformation plan.
“I’m honored for the opportunity to lead Federal Prisons Industries through this transformative period,” Simpson said. “For more than 80 years, FPI has provided job skills training to federal inmates and helped prepare them to return to their respective communities. This program has been and will continue to be, a vital part of the Department of Justice’s reentry initiatives.”
FPI is a voluntary industrial work program that operates as a wholly owned government corporation. It is the largest reentry program within the Bureau of Prisons (BOP), providing job skills training to almost 12,000 federal inmates. FPI operates without any appropriations from Congress and instead primarily relies on proceeds generated from the sale of inmate-produced goods to federal agencies, with the Department of Defense being the chief source of business.
FPI benefits not only those within the federal prison system, but society as a whole. Research has shown that participants in the program are 24 percent less likely to reoffend and are 14 percent more likely to obtain employment upon release from custody. In Fiscal Year 2014, $1 million of earnings from FPI helped inmates contribute to financial obligations including court-ordered fines, restitution and familial support.
The hiring of Simpson is one of the steps the department is taking to ensure that FPI remains a viable program in which federal offenders become productive, law-abiding citizens.
Indictment: Olathe Woman’s Schemes Included False Tax Returns, Mail Fraud and Bank FraudRead the Press Release
KANSAS CITY, KAN. – An Olathe woman was charged in an indictment unsealed today with devising a series of schemes to steal public funds by means of tax fraud, mail fraud and bank fraud, U.S. Attorney Barry Grissom said. Three other people also were charged in the case.
The indictment alleges Raquel Odegbaro, 39, owner of Cokeza Styles, an online business that sold hair products, created a series of fictitious companies and filed tax returns in the names of so-called employees that included false information about wages earned, amounts withheld and refunds due.
In addition to tax fraud charges, Odegbaro is accused of making fraudulent claims for unemployment benefits, student loans and food stamps.
Odegbaro is charged with conspiracy to defraud the United States (count one), making false claims (counts two through seven), theft of public money (counts 8 and 9, and counts 24 and 25), aggravated identity theft (counts 10, 11, 20 to 22), conspiracy to commit mail fraud (count 12), mail fraud (counts 13 through 15), making false statements (count 23), theft of public money (counts 16 through 19, and counts 24 and 25), and bank fraud (count 26 and 27).
Also charged are:
Abdirizak Aden, 32, Kansas City, Mo., who is alleged to have rented a UPS mailbox where he received loadable debit cards containing tax refunds that were obtained by fraud. He is charged with conspiracy to defraud the United States (count one), making false claims (counts two through seven), theft of public money (counts 8 and 9, and 16 through 19), aggravated identity theft (counts 10 and 11, and 20 through 22), conspiracy to commit mail fraud (count 12), and mail fraud (counts 13 through 15).
Alexander Limihagati, 33, Overland Park, Kan., who is alleged to have received tax refunds mailed to his address that were obtained by fraud. He is charged with conspiracy to defraud the United States (count one), making false claims (counts two through seven), theft of public money (counts 8 and 9), and aggravated identity theft (counts 10 and 11).
Zia Mkubi Kajanja, 40, Overland Park, Kan., who is alleged to have provided Odegbaro with Social Security numbers and personal information on individuals needed to file tax returns. He is charged with conspiracy to defraud the United States (count one), making false claims (counts two to seven), theft of public money (counts 8 and 9), and aggravated identity theft (counts 10 and 11).
Upon conviction, the crimes carry the following penalties:
Conspiracy to defraud the government (count one): A maximum penalty of 10 years in federal prison and a fine up to $250,000.
Making false claims (count two through seven): A maximum penalty of five years and a fine up to $250,000.
Theft of public money (counts 8, 9, 24 and 25): A maximum penalty of 10 years and a fine up to $250,000.
Aggravated identity theft (counts 10 and 11, and 20 through 22): A mandatory two years (consecutive).
Conspiracy to commit mail fraud (count 12): A maximum penalty of five years and a fine up to $250,000.
Mail fraud (counts 13 through 15): A maximum penalty of 20 years and a fine up to $250,000.
Theft of public funds (counts 16 through 19): A maximum penalty of 10 years and a fine up to $250,000.
False statements (count 23): A maximum penalty of five years and a fine up to $250,000.
Bank fraud (counts 26 and 27): A maximum penalty of 30 years and a fine up to $1 million on each count.
The Internal Revenue Service – Criminal Investigation, the Kansas Department of Children and Families, the U.S. Department of Housing and Urban Development – Office of Inspector General, the U.S. Department of Education – Office of Inspector General, the U.S. Department of Agriculture – Office of Inspector General, and the U.S. Department of Labor, Office of Inspector General, Office of Labor and Racketeering and Fraud Investigations investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Identity Thief Sent to Prison for More Than 7 Years for Role in Credit Card and Cigarette Trafficking SchemeRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that today in federal court Chief United States District Judge James C. Dever, III sentenced ALPHA OUMAR DIALLO, 24, of New York, to serve a total of 95 months in prison, followed by 3 years of supervised release, on charges of Aggravated Identity Theft, and Conspiracy to Commit Access Device Fraud. DIALLO was also ordered to make restitution to numerous victims.
According to the Indictment, DIALLO and co-conspirator Mamadou Bah were participants in a stolen credit card and cigarette trafficking scheme in 2013 and 2014. The purpose of the scheme was to use stolen credit card account information to purchase large quantities of cigarettes in North Carolina which were resold in other states. To carry out the scheme, participants acquired stolen credit card data from other conspirators and encoded the stolen data onto the magnetic strip of what appeared to be legitimate gift cards. Approximately 421 stolen credit card accounts were linked to DIALLO during the investigation of the case.
DIALLO admitted his involvement in the fraud, which included multiple fraudulent purchases of cigarettes from a gas station in Halifax County between December of 2013 and January of 2014. At the time of the fraud, DIALLO had absconded from federal supervision in Ohio relating to a prior offense of Access Device Fraud. A search of DIALLO’s residence and vehicle yielded other counterfeit credit cards and a firearm. After initially agreeing to plead guilty to the offense, DIALLO again absconded. DIALLO was later apprehended in Georgia where he attempted to escape the present charges by providing a fake name and date of birth to police.
Investigation of DIALLO’s case was conducted by the United States Secret Service, with the assistance of the Halifax County Sheriff’s Office and the Raleigh Police Department. Assistant United States Attorney William M. Gilmore represented the United States.
Highland Resident Pleads Guilty to Child Pornography OffensesRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that on January 25, 2015, Richard Hogg, 55, Highland, IL, pled guilty to a five-count Indictment charging him, in Count 1, with Distribution of Child Pornography, in Counts 2 and 3, with Receipt of Child Pornography, in Count 4, with Access with Intent to View Child Pornography, and, in Count 5, with Possession of Prepubescent Child Pornography. Hogg was ordered detained (held without bond in the custody of the United States Marshal) immediately after his plea hearing ended. His sentencing date is April 29, 2016, in East St. Louis, Illinois.
On Counts 1 through 3, Hogg faces a term in federal prison of not less than five (5) years but not more than twenty (20) years, a fine up to $250,000, and a term of supervised release of five (5) years to life after his prison sentence. On Count 4, Hogg faces a term in prison of not more than ten (10) years, a fine up to $250,000, and a term of supervised release of five (5) years to life. On Count 5, Hogg faces a term in prison of not more than twenty (20) years, a fine up to $250,000, and a term of supervised release of five (5) years to life.
The charges arose after an Intelligence Analyst with the FBI found information on the internet that Hogg had engaged in a sexually explicit chat with a person Hogg apparently believed to be a minor female, as well as other reports of Hogg soliciting minors to engage in sex acts. Based on this information, on February 3, 2015, the FBI Intelligence Analyst and a FBI Special Agent went to Hogg’s residence. Hogg admitted chatting online with a girl he believed to be sixteen years old who resided in New York, and that the chats were sexual in nature.
Hogg stated that he began viewing pornography in 2007, and that he gradually started viewing younger females. When asked if images of prepubescent children would be found on his computer, Hogg replied in the affirmative. When asked what the pictures he owned showed with respect to the minor females, Hogg replied "everything." When asked how often he chatted with young females online, Hogg said that it likely occurred a "few times a month." Hogg estimated that he had approximately 1,000 images and four videos of child pornography on his computers, and that they would be found in the "My Pictures" folder. Hogg said that the images typically included a "dad" with their children.
A forensic review of two of Hogg’s desktop computers and of an external hard drive revealed that these devices contained approximately 1,206 image and 54 video files of child pornography, with many of the images being of prepubescent children. The forensic review also indicated that, from on or about July 26, 2014, until on or about November 20, 2014, Hogg distributed image and/or video files via the Internet and that he received image and/or video files of child pornography, on July 26 and August 28, 2014, also via the Internet. Finally, the forensic review revealed that, on or about November 20, 2014, Hogg attempted to access with the intent to view an image of child pornography, via the Internet.
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 Aresources.@
The case was investigated by the Federal Bureau of Investigation=s Springfield Child Exploitation Task Force. The case is assigned to Assistant United States Attorney Angela Scott.
Health Care Agreement Announced Regarding Care Enhancements at Rehab CenterRead the Press Release
PHILADELPHIA - The Archdiocese of Philadelphia, Catholic Health Care Services has agreed to resolve allegations relating to resident care at St. Monica Center for Rehabilitation and Health Care and St. Monica Manor, announced United States Attorney Zane David Memeger. The Archdiocese of Philadelphia has agreed to improve, or has already improved, care in the following areas: physician orders; wound care and pressure ulcers; medication administration; documentation of care; and transfer and toileting of residents. Pursuant to the agreement, the Archdiocese has also agreed to pay $80,000 in addition to implementing the care enhancements. Although St. Monica Manor has been sold to Center Management Group (“CMG”), CMG has agreed to assume all duties in connection with the settlement agreement.
The matter was analyzed by the Department of Health Office of the Inspector General and Human Services and Healthcare Analyst Consultant Raymond Uhlhorn of the U.S. Attorney’s Office. The matter was handled by Assistant U.S. Attorney Veronica J. Finkelstein.
The settled civil claims are allegations only. There has been no determination of civil liability, and St. Monica Manor denies any such liability.
Individuals with information regarding fraud, waste, or abuse related to Medicare or other federal programs are encouraged to file a complaint with the United States Attorney’s Office by calling 215-861-8200.
Glastonbury Man Admits Embezzling $200K from New Jersey Manufacturer of Health Care SupplementsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that CRAIG LARSEN, 53, of Glastonbury, waived his right to indictment and pleaded guilty yesterday before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of interstate transportation of money obtained by fraud stemming from an embezzlement scheme
According to court documents and documents filed in court, LARSEN was employed by Maximum Human Performance (“MHP”), a New Jersey-based company that provided supplements for bodybuilding, strength, weight loss and fitness. In approximately November 2012, LARSEN became the head of MHP’s quality control and had authority to approve bills submitted to MHP by its vendors. Between approximately November 2013 and February 2015, LARSEN presented fraudulent invoices to MHP that falsely represented that a company he controlled, R.E.T.S., had performed quality control services for MHP when no such services had been provided. Through this scheme, LARSEN caused approximately 40 false invoices to be submitted to MHP requesting the payment of approximately $204,000 for services purportedly performed by R.E.T.S., and subsequently used his authority to approve the invoices for payment.
Judge Meyer scheduled sentencing for July 25, 2016, at which time LARSEN faces a maximum term of imprisonment of 10 years.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Susan Wines.
Georgia Man Sentenced to Prison for Operating an Unlicensed Money Transmitting BusinessRead the Press Release
A Columbus, Georgia resident was sentenced to serve 21 months in prison, followed by three years of supervised release and ordered to forfeit $1,357,476.18 for operating an unlicensed money transmitting business, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Acting U.S. Attorney G.F. “Pete” Peterman III for the Middle District of Georgia announced today.
According to court documents, between February 2013 and March 2014, Sawan Shah aka Sunny, owned, operated and managed several money transmitting companies in the Columbus area. Shah offered check cashing services to the public, including cashing of checks that exceeded $1,000. Shah knew that he and his companies were required to be registered with Financial Crimes Enforcement Network (FinCEN) and with the State of Georgia. Neither Shah nor any of the businesses he controlled were registered with FinCEN or the State of Georgia as a money transmitting business or as a check cashier.
As part of his plea, the defendant admitted that several individuals approached him about cashing tax refund checks that were issued in the names of other individuals. Shah agreed to do so and did not require proof of identification for the individuals listed on the checks. Shah charged fees of between 10 and 30 percent of the value of the check, due to his knowledge that the checks were involved in tax fraud. In 2013 and 2014, Shah cashed approximately 567 federal tax refund checks that totaled $1,357,476.18. Shah admitted in plea documents that those checks were the result of fraudulent claims for income tax refunds submitted in the names of stolen identities.
Acting Assistant Attorney General Ciraolo and Acting U.S. Attorney Peterman III commended special agents of Internal Revenue Service (IRS)-Criminal Investigation and the U.S. Secret Service, who investigated the case and Trial Attorney Michael C. Boteler of the Tax Division and Assistant U.S. Attorney Crawford L. Seals of the Middle District of Georgia, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Fort Pierce Resident Sentenced to 75 Months in Prison for Receipt and Possession of Child PornographyRead the Press Release
A Fort Pierce resident was sentenced today to 75 months in prison by United States District Judge Robin L. Rosenberg for receiving and possessing child pornography.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, and Ken J. Mascara, Sheriff, St. Lucie County Sheriff’s Office, made the announcement.
Richard Joseph Ahearn, 56, of Fort Pierce previously pled guilty to one count of receiving child pornography, in violation of Title 18, United States Code, Section 2252(a)(2), and one count of possessing child pornography, in violation of Title 18, United States Code, Section 2252(a)(4)(B). After his release from incarceration, Ahearn will be placed on supervised release for 10 years and will have to register as a sex offender.
According to court documents and information disclosed during the court proceedings, Yahoo! reported to the National Center for Missing and Exploited Children (NMEC) several suspected child pornography images that had been uploaded to a Flickr account. The email account and the internet protocol (IP) address associated with that account were connected to a physical address in Fort Pierce, determined to be Ahearn’s residence. The St. Lucie County Sheriff’s Office obtained state search warrants for the Flickr account and associated email accounts. Examination of those accounts revealed sexually explicit online chats with minors. It was also determined that Ahearn was employed as an Information Technology Professional with the St. Lucie County Tax Collector’s Office. After ICE-HSI joined the investigation, a federal search warrant was obtained for Ahearn’s residence and any electronic devices found therein. A subsequent search of Ahearn’s computer revealed images of sexually explicit conduct involving minors (child pornography).
This case is brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Ferrer commended the investigative efforts of ICE-HSI and the St. Lucie County Sheriff’s Office. This case was prosecuted by Assistant United States Attorney Daniel E. Funk.
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.
Former Public Defender Sentenced on Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Adam Rissew, 39, a former Monroe County Public Defender currently of Rochester, NY, formerly of Medina, NY, who was convicted of possession of firearm in furtherance of a drug trafficking, was sentenced to 60 months in prison by U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that on July 20, 2012, Medina police officers and members of the Orleans County Major Felony Crime Task Force searched Rissew’s then-residence at 305 Catherine Street in the Village of Medina. Officers found and seized in excess of fifty marijuana plants, paraphernalia related to the grow operation, numerous firearms and 684 rounds of various types of ammunition. Among the firearms found and seized was a loaded Glock 9mm semi automatic pistol that was secreted between Rissew’s mattress and box springs. During his plea Rissew admitted he used the pistol to protect his marijuana grow operation.
The sentencing is the result of an investigation by the Medina Police Department, under the direction of Chief Jose Avila, officers of the Orleans County Major Felony Crime Task Force, under the direction of Chief Investigator Joseph Sacco, and Orleans County District Attorney Joseph Cardone.
Former City of Chicago Transportation Official Convicted of Corruption in Awarding of Red-Light Camera ContractsRead the Press Release
CHICAGO — The former assistant transportation commissioner for the city of Chicago was convicted today on federal corruption charges in connection with the awarding of lucrative red-light camera contracts.
After a two-week trial in federal court in Chicago, the jury convicted JOHN BILLS on all counts against him. The counts include nine counts of mail fraud; three counts of wire fraud; one count of extortion under color of official right; one count of conspiracy to commit bribery; three counts of bribery; and three counts of filing false tax returns. Bills, 54, of Chicago, faces a maximum combined sentence of 304 years in prison.
U.S. District Judge Virginia M. Kendall scheduled a sentencing hearing for May 5, 2016, at 10:00 a.m.
The conviction was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Joseph M. Ferguson, Inspector General for the City of Chicago; and James D. Robnett, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.
“By accepting bribes in exchange for influencing city contracts, John Bills deprived the city of Chicago of money and honest services,” said Mr. Fardon. “When public officials abuse their power and violate the public trust for personal gain, we will be there to hold them accountable.”
As an assistant transportation commissioner, Bills was a voting member of the city’s Request for Proposal evaluation committee, which sought vendors under the city’s Digital Automated Red Light Enforcement Program. In 2003, the committee recommended awarding contracts to Phoenix-based Redflex Traffic Systems Inc., to install cameras that automatically record and ticket drivers who run red lights. Evidence at trial revealed that from approximately 2003 to 2011, Bills used his influence to expand Redflex’s business with the city, resulting in millions of dollars in contracts for the installation of hundreds of red-light cameras. In exchange for his efforts, Redflex provided Bills with cash and personal benefits, including meals, golf outings, rental cars, airline tickets, hotel rooms and other entertainment.
Some of the benefits were given directly to Bills, while hundreds of thousands of dollars in cash was funneled to him through a friend, MARTIN O’MALLEY. Redflex hired O’Malley as a contractor and paid him lavish bonuses as new cameras were added in Chicago. O’Malley testified at trial that he often stuffed the bonus money into envelopes and gave it to Bills during meals in Chicago restaurants.
Between 2004 and 2008, Chicago paid Redflex approximately $25 million. After KAREN FINLEY became CEO of Redflex in 2007, O’Malley’s commissions escalated and Redflex was awarded a “sole-sourced” contract for another $33 million. The city then followed up that contract with another deal worth $66 million – for the installation of nearly 250 additional red-light cameras.
Bills retired from the city in 2011.
Finley, of Cave Creek, Ariz., pleaded guilty last year to one count of conspiracy to commit bribery. She is scheduled to be sentenced by Judge Kendall on Feb. 18, 2016.
O’Malley, of Worth, pleaded guilty in December 2014 to one count of conspiracy to commit bribery. His sentencing date has not yet been set.
The government is represented by Mr. Fardon and Assistant U.S. Attorneys Laurie J. Barsella and Timothy Storino.
Florida Residents Sentenced to Prison for Involvement in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
Filed More than 860 False Tax Returns Seeking Over $1 Million in Tax Refunds
Two Miami, Florida residents were sentenced to prison for their role in a stolen identity tax refund fraud scheme, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service (IRS) Criminal Investigation announced today.
Roland Alexis, 34, was sentenced today to 42 months in prison followed by three years of supervised release. Alexis’s co-conspirator, Jim Joseph, 31, was previously sentenced to 42 months in prison followed by three years of supervised release on Jan. 20.
“Identity theft and filing false tax returns are serious crimes that inflict tremendous damage on innocent victims,” said Acting Assistant Attorney General Ciraolo. “We will continue to work with our federal and state law enforcement partners to aggressively investigate and prosecute these crimes and, where appropriate, seek the maximum sentence available to punish the perpetrators, deter others from engaging in such behavior, and seek justice for the victims.”
According to the indictment and information disclosed in court proceedings, Joseph and Alexis conspired to file more than 860 false income tax returns claiming more than $1 million in refunds from the IRS. Alexis’s conduct resulted in a tax loss of $1.8 million; Joseph’s conduct resulted in a tax loss of $1.2 million. Joseph and Alexis each pleaded guilty in November 2015 to one count of a multi-object conspiracy to defraud the IRS, commit wire fraud and commit aggravated identity theft, as well as one count of aggravated identity theft.
Between 2007 and July 2014, Joseph, Alexis and others filed false federal income tax returns using stolen identities. Joseph and Alexis obtained the personal identification information including names, social security numbers, addresses and dates of birth, without the individuals’ authorization. Much of the stolen personal identification information belonged to prisoners and deceased individuals. Joseph, Alexis and others recruited knowing co-conspirators and unknowing victims to obtain Electronic Filing Identification Numbers (EFINs) in their names through which fraudulent income tax returns would be filed. In late 2009, Alexis and Joseph, along with a co-conspirator, formed Worldwide Income Tax Multi-Services LLC and North Miami Income Tax Services. The companies were created with the intended purpose of filing fraudulent tax returns using stolen identities. Worldwide Income Tax Multi-Services was located in Miramar, Florida and listed Alexis as President and Joseph as Vice-President. North Miami Income Tax Services was set up in Miami and listed Alexis as Registered Agent. Joseph, Alexis and others then used the stolen identities and EFINs to electronically file fraudulent tax returns.
In addition to the prison term, U.S. District Judge William Zloch for the Southern District of Florida ordered Joseph to pay $1,225,686.12 in restitution to the IRS. Alexis was also ordered to pay $1,805,332.71 in restitution, forfeit two single family owned properties in Miami and $369,776.18 in proceeds held in a bank account.
Acting Assistant Attorney General Ciraolo, U.S. Attorney Ferrer and Special Agent in Charge Jackson commended special agents of IRS Criminal Investigation and Homeland Security Investigations, who investigated the case and Assistant Chief Gregory E. Tortella of the Tax Division and Assistant U.S. Attorney Neil Karadbil of the Southern District of Florida, who prosecuted the case.
Florida Couple Sentenced Involving Tax SchemeRead the Press Release
St. Louis, MO – ALEXSANDR RABIKOV, a native of Belarus and permanent resident of the United States living in the Hallandale Beach, Florida area, was sentenced to 60 months for his part in a conspiracy to file false tax returns and thereby steal government funds. Rabikov’s sentence represents the statutory maximum allowed for the charged offense.
According to court documents, the conspiracy hacked into the computer system of a financial institution in the St. Louis area and obtained personal identifying information of individuals employed by that financial institution, including names, social security account information, addresses and wage information. This information was used to prepare false tax returns. Because the conspiracy possessed detailed wage information of the victims, the false tax returns closely resembled authentic tax returns because income and withholding information included in the false returns closely tracked the victims’ actual numbers.
All of the false tax returns had refunds due, which he collected and deposited into accounts that Rabikov controlled, either personally or through a network of other individuals throughout Florida, including his girlfriend and co-defendant Yulia Belomyttseva.
When agents from IRS-Criminal Investigation arrived at the couples’ beachfront apartment to arrest them, Rabikov and Belomyttseva unsuccessfully attempted to destroy evidence of their scheme by boiling and then freezing laptop computers before the investigating agents entered the apartment.
"Individuals who commit refund fraud and identity theft of this magnitude deserve to be punished to the fullest extent of the law," said Karl Stiften, Special Agent in Charge of IRS-Criminal Investigation. "We continue to do our part in protecting the sanctity and integrity of the tax system and those individuals whose identities were stolen."
YULIA BELOMYTTSEVA, a Russian national who was also living in Hallandale Beach at the time of the offense with Rabikov, who also pleaded guilty to being part of the conspiracy, was sentenced today to 12 months and 1 day in federal prison.
Both defendants pled guilty to one felony count of conspiracy to file fraudulent federal income tax returns last October. They appeared for sentencing today before United States District Judge Catherine D. Perry.
The case was investigated by IRS-Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney’s Office.
Federal Bureau of Investigation Arrests Milwaukee Man Who Planned Mass Shooting; Man Charged with Possession of MachinegunsRead the Press Release
Acting United States Attorney Gregory J. Haanstad and Special Agent in Charge Robert J. Shields of the FBI’s Milwaukee Division announced today that Milwaukee resident Samy Mohamed Hamzeh, 23, has been charged with possessing machineguns and a silencer.
According to the criminal complaint, Hamzeh had been under investigation since September 2015. The investigation revealed that, in October 2015, Hamzeh planned to travel to Jordan, enter the West Bank, and conduct an attack on Israeli soldiers and citizens living in the West Bank. Hamzeh later abandoned those plans and began to focus on conducting an attack in the United States.
According to the criminal complaint, Hamzeh has engaged in extensive conversations with two confidential sources (referred to here as CS-1 and CS-2). Those conversations, which were in Arabic, were monitored, recorded, and translated by the FBI beginning in October 2015.
During those recorded conversations, Hamzeh explained that he wanted to commit a domestic act of violence and, earlier this month, he settled on a Masonic temple in Milwaukee as his target.
On January 19, 2016, Hamzeh, CS-1 and CS-2 took a guided tour of the Masonic temple, during which they learned meeting schedules and where people would be located during meetings. In a recorded conversation after they left the temple, Hamzeh, discussed his plans with CS-1 and CS-2. In that conversation, Hamzeh reaffirmed his intention to commit an armed attack on the temple and discussed in further detail how they would carry out the attack.
Hamzeh said that they would need two machineguns so that they each would have one (Hamzeh indicated that one CS already had a machinegun), and also said that they would need three silencers:
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“We want two machineguns, you now have one, so we want two more, and we need three silencers, that’s it.Find out how much all together these will cost, and then we will march.”
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“We want two, like the machinegun you have. . . . And we need silencers. . . . Three, yes three silencers, and that’s it.”
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“. . . each one has a weapon, each one has a silencer gun, the operation will be one hundred percent successful.I am telling you, to go without silencer gun, you will be exposed from the beginning.”
Hamzeh also explained to CS1 and CS2 that, when they executed the attack at the temple, one of the three of them would have to stay at the main door while the others went upstairs to kill the people who would be meeting there:
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“one of us will stay at the door at the entrance and lock the door down, he will be at the main door down, two will get to the lift up, they will enter the room, and spray everyone in the room.The one who is standing downstairs will spray anyone he finds.We will shoot them, kill them and get out.We will walk and walk, after a while, we will be covered as if it is cold, and we’ll take the covers off and dump them in a corner and keep on walking, as if nothing happened, as if everything is normal.But one has to stand on the door, because if no one stood at the door, people will be going in and out, if people came in from outside and found out what is going on, everything is busted.”
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“As long as the one on the door understands he has bigger responsibility than the others.For your information, he has to take care of everyone around him, the comers and the one that wants to go, he has to annihilate everyone, there is no one left, I mean when we go into a room, we will be killing everyone, that’s it, this is our duty, as for the one at the door, he must have 20/20 eye vision and always alert for all the traffic around him.”
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“I am telling you, as I was saying, all three of us get in together, one will go, to the one that is staying at the reception . . . . If she was alone, it is okay, if there were two of them, shoot both of them, do not let the blood show, shoot her from the bottom, two or three shots in her stomach and let her sit on the chair and push her to the front, as if she is sleeping, did you understand?Then stay downstairs, the other two will take the lift to the third floor, go directly to the room, open the door, shoot everyone, move fast even avoiding the lift and take the stairs running down. . . . Using the stairs, the third one on the door will notice us coming down, we will go out together.No one sees anything and no one knows anything.We leave, as if there is nothing, no running, no panic, just regular walking.We’ll get three head covers with three holes in them. . . . we’ll get in all three of us together, the minute we get in, we shoot whoever is in front of us, and all have to be eliminated.One stays down and two will go up quickly.
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“And we will eliminate everyone.”
Hamzeh also explained what his objectives were in committing the attack:
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“I am telling you, if this hit is executed, it will be known all over the world. . . . Sure, all over the world, all the Mujahedeen will be talking and they will be proud of us. . . such operations will increase in America, when they hear about it.The people will be scared and the operations will increase, and there will be problems all over, because more than one problem took place, and this will be the third problem, this will lead to people clashing with each other.This way we will be igniting it.I mean we are marching at the front of the war.”
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“They are all Masonic; they are playing with the world like a game, man, and we are like asses, we don’t know what is going on, these are the ones who are fighting, these are the ones that needs to be killed, not the Shi’iat, because these are the ones who are against us, these are the ones who are making living for us like hell.”
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“Thirty is excellent.If I got out, after killing thirty people, I will be happy 100%. . . . 100% happy, because these 30 will terrify the world.”
Hamzeh made plans to purchase machineguns and silencers from two individuals who, unbeknownst to Hamzeh, were undercover FBI agents. He met with them, along with CS-1 and CS-2, on January 25, 2016. The undercover agents displayed the weapons and a silencer to Hamzeh, told him that the weapons were capable of automatic fire, and explained to him the functioning of the selector switch that allowed the weapons to fire automatically. Hamzeh agreed to a price and paid it to the undercover agents, who then handed Hamzeh a bag containing two automatic weapons and a silencer. Hamzeh carried the bag to the vehicle in which he had traveled to the meeting, and he placed the bag in the trunk of the vehicle. He then was arrested and has been charged with illegally possessing machineguns.
Acting United States Attorney Gregory J. Haanstad said, “Samy Mohamed Hamzeh devised a detailed plan to commit a mass shooting intended to kill dozens of people. He also said that he wanted this mass shooting to be ‘known the world over’ and to ‘ignite’ broader clashes. It is difficult to calculate the injury and loss of life that was prevented by concerned citizens coming forward and by the tireless efforts of the FBI and the Joint Terrorism Task Force.”
Special Agent in Charge of the FBI Robert J. Shields said “The arrest of Samy Mohamed Hamzeh is the result of a well-coordinated undercover law enforcement action, at no time was the public’s safety placed in jeopardy. I would like to commend the efforts of the Joint Terrorism Task Force which includes our local and state law enforcement partners in thwarting an attack that could have resulted in significant injury and /or loss of life.”
This case is being prosecuted by Assistant United States Attorney Paul L. Kanter.
The charges contained in the criminal complaint are only allegations; the defendant is presumed innocent unless and until he is proven guilty beyond a reasonable doubt.
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Dontre McHenry Sentenced to 293 Months in Prison for Sex Trafficking Teenage Girls Throughout MinnesotaRead the Press Release
United States Attorney Andrew M. Luger today announced the sentence of DONTRE D’SEAN MCHENRY, a/k/a “Dontre Sean McHenry,” a/k/a “Avon,” a/k/a “Rico,” 26, to 293 months in prison for recruiting and sex trafficking teenage girls throughout Minnesota. MCHENRY pleaded guilty on October 17, 2014, and was sentenced today before Judge David S. Doty in United States District Court in Minneapolis.
“Human traffickers don’t care whom they victimize, as long as they can profit from it,” said acting Special Agent in Charge William Lowder, of HSI St. Paul. “HSI is dedicated to working with its law enforcement partners in all jurisdictions to identify, pursue, arrest and prosecute the predators involved in human trafficking.”
Assistant U.S. Attorney Laura Provinzino, who is in charge of human trafficking prosecutions, said: “Today, Dontre McHenry was held accountable for recruiting and trafficking the most vulnerable girls in our state—runaways, recent immigrants, and girls in foster care. As our recent anti-trafficking efforts show, protecting our children from violent and manipulative predators is a central mission for the U.S. Attorney’s Office and our law enforcement partners. We will continue to be aggressive in the prosecution of these cases to protect our children from manipulation and violence at the hands of these predators that causes them to be sold for sex.”
According to the defendant’s guilty plea and documents filed in court, from at least January 2013 until March 2014, MCHENRY recruited at least three girls under the age of 18 and prostituted them for his own financial benefit. MCHENRY advertised girls on backpage.com and in chatrooms, and made a sexually-explicit video of a 15-year-old victim. MCHENRY directed the victims about how to talk to men on chat lines, what rates to charge for various sex acts, and how to set up “dates.” The victims were instructed to, and did, give all of the money they were paid for commercial sex acts to the defendant.
According to documents filed in court, on March 13, 2014, Minneapolis police executed a search warrant at a motel room in Roseville, Minnesota, which was previously occupied by MCHENRY and one of the victims. During the search, investigators discovered, among other evidence, handwritten notes and a book entitled “Pimpology: The 48 Laws of the Game.” The handwritten notes included references to trafficking and prostitution, as well as questions that referred to recruiting and coercing minors. Numerous text message conversations from customers arranging to meet with victims to purchase sex were found on the cellphones used by the defendant and the victims.
This case was the result of an investigation conducted by Homeland Security Investigations, the Minneapolis Police Department, the St. Paul Police Department, the Rochester Police Department, and the Roseville Police Department.
Assistant U.S. Attorneys Laura M. Provinzino and Melinda A. Williams prosecuted the case.
National Slavery and Human Trafficking Prevention Month
January is National Slavery and Human Trafficking Prevention Month, and the U.S. Attorney’s Office is proud to combine its efforts with federal, tribal, state, and local law enforcement partners to combat trafficking.
As part of that anti-trafficking effort, United States Attorney Andrew M. Luger today announced the guilty plea of PHILLIP DWAYNE LLOYD, a/k/a Marcus Strong, a/k/a Philip Dwayne Loyd, a/k/a Dwayne Smith, a/k/a Alfred Woods, a/k/a “PC,” 44, for recruiting and sex trafficking a 17-year-old girl in January 2015 and for directing and producing a video of the minor engaged in sexually-explicit conduct. LLOYD, who was indicted on May 4, 2015, pleaded guilty yesterday to sex trafficking of a minor and production of child pornography before Chief Judge John R. Tunheim in U.S. District Court in Minneapolis.
Co-defendant RAQUEL MONE BELCHER, 29, also pleaded guilty yesterday to one count of conspiracy to commit sex trafficking of minors. Both defendants are expected to be sentenced on May 16, 2016 before Chief Judge John R. Tunheim in U.S. District Court in Minneapolis.
This case is the result of an investigation conducted by the Anoka County Sheriff's Office, Homeland Security Investigations and the Minneapolis Police Department.
United States Attorney Andrew M. Luger today also announced the guilty plea of MYKEL LAMAR HARRIS, 25, for recruiting and sex trafficking a 17-year-old girl in late 2013. HARRIS, who was indicted on October 5, 2015, pleaded guilty yesterday to sex trafficking of a minor before Judge Donovan W. Frank in U.S. District Court in St. Paul.
This case is the result of an investigation conducted by Homeland Security Investigations and the St. Paul Police Department.
Assistant U.S. Attorney Laura M. Provinzino is prosecuting the cases.
Defendant Information:
DONTRE D’SEAN MCHENRY, a/k/a “Dontre Sean McHenry,” a/k/a “Avon,” a/k/a “Rico,” 26
St. Paul, Minn.
Convicted:
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Sex Trafficking of a Minor, 1 count
Sentenced:
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293 months in prison
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Lifetime supervised release
PHILLIP DWAYNE LLOYD, a/k/a Marcus Strong, a/k/a Philip Dwayne Loyd, a/k/a Dwayne Smith, a/k/a Alfred Woods, a/k/a “PC,” 44
Minneapolis, Minn.
Convicted:
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Sex Trafficking of a Minor, 1 count
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Production of Child Pornography, 1 count
RAQUEL MONE BELCHER, 29
Minneapolis, Minn.
Convicted:
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Conspiracy to Commit Sex Trafficking of a Minor, 1 count
MYKEL LAMAR HARRIS, 25
St. Paul, Minn.
Convicted:
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Sex Trafficking of a Minor, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
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Deported Alien Charged with Illegally Re-entering United StatesRead the Press Release
JOHNSTOWN, Pa. - A citizen of El Salvador has been indicted by a federal grand jury in Johnstown on a charge of re-entry of an illegal alien, United States Attorney David J. Hickton announced today.
The one-count indictment named Walter F. Melgar, 41, of Blair County, Pa.
According to the indictment presented to the court, on Dec. 29, 2015, Melgar, an alien who had been deported from the United States on Dec. 9, 1996, was found in Blair County, Pa. He had unlawfully re-entered this Country without receiving permission from the Secretary of the Department of Homeland Security to do so.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Department of Homeland Security/Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Court Approves Consent Decree in Clean Water Act Case Filed Against City of WaterlooRead the Press Release
CEDAR RAPIDS, IA - The city of Waterloo was sued on October 26, 2015 by the United States and the State of Iowa on multiple counts alleging violations of the Clean Water Act and Iowa law. The violations involved the illegal discharge of untreated sewage, permit violations, and violations relating to the city’s operation and maintenance of its sewer system.
On January 20, 2016, the Federal District Court in Cedar Rapids signed a consent decree between the parties. The consent decree requires the city of Waterloo to comply with the Clean Water Act and take all steps necessary to come into compliance with the Act. The consent decree requires the city to meet several benchmarks, including:
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Continuing to implement rainfall and flow monitoring and a footing drain removal program;
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Implementing a Capacity, Management, Operations and Maintenance (CMOM) Program Plan for the city’s sewer system;
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Completing targeted Condition and Capacity Assessments of the sewer system;
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Creating a Hydraulic Model of the sewer system;
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Developing a Sanitary Sewer Master Plan that proposes specific remedial measures for the sewer system; and
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Completing the remedial measures set forth in the Master Plan.
This settlement mandates that Waterloo make critical structural changes to its sanitary sewer system to improve the quality of Iowa’s waterways. The enforceable schedule established by this consent decree will ensure completion of upgrades needed to handle wet weather events.
United States Attorney for the Northern District of Iowa, Kevin W. Techau, stated, “Leadership in the city of Waterloo should be commended for working through this difficult situation and committing to make the improvements to water quality that will result from the settlement.” Techau, however, noted that, “For years the city has been releasing raw sewer water containing pathogens into the Cedar River, threatening public health and impacting all citizens—those who rely on the Cedar River for drinking water as well as Iowans who love to fish and use the river for recreation. So this settlement is not only great news for the citizens of Waterloo but for everyone that cares about clean water.”
Techau went on to add, “This is especially true for those Iowans who live down river from Waterloo. The settlement will safeguard water quality and protect human health by ensuring much needed upgrades to the Waterloo sewer infrastructure that will reduce combined sewage overflows and the public’s exposure to harmful pathogens.”
The case was handled by the Department of Justice, Environmental and Natural Resources Division Trial Attorney Danica Anderson Glaser, Assistant United States Attorney Matthew J. Cole, Assistant Iowa Attorney General David R. Sheridan, the Environmental Protection Agency, and the Iowa Department of Natural Resources.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 6:15-cv-02087.
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Columbus Man Sentenced to 15 Years for Cocaine, Gun CrimesRead the Press Release
COLUMBUS, Ohio – William J. Pate, 45, of Columbus, was sentenced in U.S. District Court to 15 years in prison for possessing cocaine and firearms in furtherance of distributing drugs.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Administration (DEA), and Colonel Paul A. Pride, Superintendent, Ohio State Highway Patrol, announced the sentence handed down today by U.S. District Judge Gregory L. Frost.
According to court documents, investigators were informed in February 2015 that Pate was actively involved in trafficking large quantities of cocaine. Upon executing a search warrant, investigators discovered more than a kilogram of cocaine and 11 firearms at Pate’s residence in Columbus, Ohio.
Pate pleaded guilty on September 11, 2015 to conspiracy to possess with intent to distribute cocaine and possession of a firearm in furtherance of drug trafficking. He has agreed to forfeit a Mercedes SUV and 11 firearms.
U.S. Attorney Stewart commended the cooperative investigation by the DEA and Ohio State Highway Patrol, as well as Assistant United States Attorneys Michael Hunter and Peter Glenn-Applegate, who are representing the United States in this case.
Columbia Man Sentenced on Federal Heroin Conspiracy ChargeRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated that Larry Bookman, age 62, of Columbia, South Carolina, was sentenced to 70 months imprisonment today in federal court. In August 2015, Bookman plead guilty to conspiracy to possess with intent to distribute and to distribute a quantity of heroin, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(C). Senior United States District Judge Joseph F. Anderson, Jr., of Columbia imposed the sentence. After Bookman completes the term of imprisonment, he will be on federal supervised release for 6 years.
Bookman was one of 10 defendants charged in April 2014, following a series of court-authorized, DEA-monitored wiretaps over several telephones in the Columbia area. The investigation revealed that a group of individuals in the Columbia area were obtaining heroin from various sources outside of South Carolina and then distributing it in the Midlands. Evidence indicated that the suppliers were initially getting the heroin in packages from India. Several packages destined for Columbia and containing heroin were intercepted by law enforcement during the investigation. Evidence further showed that the co-defendants later obtained heroin in New York and transported it back to Columbia where it was distributed. The New York heroin suppliers have been charged by the Eastern District of New York for their role in the drug conspiracy and several have plead guilty. Additionally, five of Bookman’s co-defendants have plead guilty to their role in the drug conspiracy here in South Carolina and have been sentenced as follows: Eric Shawn Bradley, age 47, of Columbia, was sentenced to 210 months with 8 years of supervised release; Kenneth Crawford, age 42, of Washington, D.C., and formerly of Columbia, was sentenced to 120 months imprisonment with 8 years of supervised release; Charles Bradley, age 32, of Columbia was sentenced to 57 months imprisonment with 6 years of supervised release to follow; Anthony Glover, age 40, of Columbia was sentenced to 120 months imprisonment with 8 years of supervised release to follow; and Jessany Lyons, age 25, of Far Rockaway, New York, was sentenced to 37 months imprisonment with 3 years of supervised release. Four other co-defendants charged in the indictment remain fugitives.
Bookman has a 1992 federal drug conviction for possession of fentanyl and a number of prior state convictions, including possession with intent to distribute marijuana (1974), unlawful possession of a pistol (1976), possession of heroin (1977), receiving stolen goods (1978), financial transaction card theft (1982/1985), possession of heroin (1989), possession of cocaine (1990), possession of heroin (1991), possession of heroin 3rd offense (2000), possession of a controlled substance (2006), assault and battery with intent to kill (2007), possession of stolen vehicle (2007), and possession of heroin 2nd offense (2008).
The case was investigated by the Drug Enforcement Administration’s (DEA) High Intensity Drug Task Force, which is comprised of agents and officers from the DEA, Homeland Security Investigations, Federal Bureau of Investigation, United States Secret Service, Columbia Police Department, Richland County Sheriff’s Department, South Carolina State Law Enforcement Division (SLED), Lexington County Sheriff’s Department, Kershaw County Sheriff’s Department, Orangeburg County Sheriff’s Department, and the Fifth Circuit Solicitor’s Office. Assistant United States Attorney Stacey D. Haynes of the Columbia United States Attorney’s Office prosecuted the case.
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Columbia Man Sentenced for Six Bank RobberiesRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was sentenced in federal court today for robbing six Columbia banks, using a bicycle as his getaway vehicle.
Shaun Christopher Becker, 43, of Columbia, was sentenced by U.S. District Judge Stephen R. Bough to four years and nine months in federal prison without parole. The court also ordered Becker to pay $4,490 in restitution.
Becker, who pleaded guilty on Aug. 31, 2015, admitted that he robbed six Columbia banks between Nov. 20, 2014, and Jan. 3, 2015, using a bicycle for transportation and as a getaway vehicle.
On Nov. 20, 2014, Becker stole $3,890 from Missouri Bank II, 2500 Rangeline St. in Columbia. Becker slid a demand note across a teller counter that said, “Put all the bills in the bag, except for $1’s, be quiet, keep smiling, and nobody needs to get hurt. Thank you.” The teller complied and took the note with her to the drive through teller window, where she activated the alarm. She then closed the bag and returned it to Becker, but retained the demand note. Becker fled the bank on a dark-colored bicycle, possibly a mountain bike, and eluded capture.
On Nov. 28, 2014, Becker stole approximately $6,000 from First State Community Bank, 3200 Golden Bear Drive in Columbia. When Becker walked to the teller counter, the teller requested he remove his sunglasses. Becker ignored the teller and pulled a black bank bag from underneath his sweatshirt and laid it on the counter. He retrieved a demand note from within the bag and gave it to the teller. The note essentially stated, “Put all your large bills in the bag, keep smiling and no one will get hurt.” The teller complied and then returned both the bag and note to Becker, who calmly walked out of the bank and fled on a bicycle.
On Dec. 9, 2014, Becker stole $1,810 from UMB Bank, 1516 Chapel Hill Road in Columbia. Becker arrived at the bank riding a blue mountain bike; he entered the bank and walked to the teller counter. Upon reaching the counter, Becker, who was noticeably out of breath, slid a black bank bag and demand note across the counter toward the teller. The note was poorly written in pencil using lower case letters on the torn corner of a white piece of paper. The teller was only able to read the words “big bills” before Becker pulled the note back to himself. The teller concluded she was being robbed and gave Becker her stack of $100 bills. The teller did not include the $50 bills because she assumed they were too small, but relinquished them after Becker gave her a frustrated look. Becker collected the money from the counter, placed it into the black bag, calmly walked out of the bank, then got onto his bicycle and rode away. During the ensuing investigation, a police K-9 officer located the bicycle and a black shoulder bag which contained Becker’s clothing. The items were concealed in a wooded area behind a business located approximately a half-mile from the bank near the MKT Trail. Becker eluded capture.
On Dec. 15, 2014, Becker stole $600 from Boone County National Bank, 1916 Paris Road in Columbia. Becker arrived at the bank riding a bicycle. He laid his bike in the grass at the end of the walkway and walked into the bank. Becker immediately approached the teller counter, retrieving a black bank bag from underneath his sweatshirt as he approached. Once at the teller counter, Becker removed a demand note from the bank bag and presented it to the teller. She complied and gave the defendant $600 cash. Becker, who kept the demand note, then walked out of the bank, stuffing the bag into his pants as he departed. Once outside, he retrieved his bicycle and rode away.
On Dec. 22, 2014, Becker stole $2,000 from Regions Bank, 2114 Paris Road in Columbia. Becker arrived at the bank riding a bicycle, which he parked outside the bank. Becker walked into the bank and immediately approached the teller counter, which was protected by a bandit barrier. Becker produced a bag and a demand note and slid them under the barrier to the teller. The note read, “Put the 100’s, 50’s, and 20’s from the top drawer in the bag.” The teller complied. Becker asked for his note back then walked out of the bank, stuffing the bag into his pants as he departed. Once outside, Becker retrieved his bicycle and rode away. Fresh bicycle tracks were located on a nearby bicycle trail, but Becker eluded capture. Surveillance from a neighboring business revealed that Becker had cased the area on his bicycle prior to the robbery.
On Jan. 3, 2015, Becker stole $1,394 from Boone County National Bank, 205 S. Keene St. in Columbia. Becker immediately approached the teller counter, where he retrieved a black folder from inside his open shirt. The teller recognized Becker as the serial bank robber operating in Columbia, and immediately activated her silent panic alarm. Becker placed the folder on the teller counter where he untied and opened the folder, then laid a demand note on the teller counter. The note essentially read, “Put 50’s and 100’s in the bag, no funny business, and no dye packs or bait money, keep smiling.” The teller complied; as she stepped away to fill the folder, Becker crumpled and ate the demand note. After obtaining the money, Becker left the bank, stuffed the folder into his shirt and fled east, out of view of bank staff. Investigation revealed that Becker escaped the area on a bicycle and fled east along a paved bicycle path near the bank. Approximately three-tenths of a mile from the bank, Becker ditched his bicycle and shed his outer layer of clothing. Becker stashed the clothing, with the folder, alongside a wooded creek that intersected the bicycle path. With the money stuffed into his boots, Becker started walking to a vehicle he had staged nearby.
Responding police officers, who had seen surveillance images from five prior bank robberies committed by Becker, recognized him walking along the shoulder of the road and detained him. A jogger who was on the bicycle path was brought to the scene, and identified Becker as a suspicious person seen walking out of the woods in the vicinity of the bicycle. A police K-9 discovered clothing nearby. Becker was detained for interview by officers and transported to the Columbia Police Department for questioning. At the station, officers recovered $1,394 from Becker that had been stolen from the bank. Becker confessed to the robbery to an FBI special agent, as well as to the other five robberies. He admitted committing the bank robberies to support a costly heroin addiction.
This case was prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the FBI, the Columbia, Mo., Police Department and the Boone County, Mo., Sheriff’s Department.
Columbia Man Pleads Guilty to Federal Firearm ChargeRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Aaryon Brian Dowdy, a/k/a “Trouble,” age 25, of Columbia, South Carolina, pled guilty today in federal court. Dowdy plead guilty to being a felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a), and 924(e). Chief United States District Terry L. Wooten accepted the plea and will impose a sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that on January 3, 2014, Dowdy and another individual were involved at an altercation inside a convenience store on Farrow Road in Columbia. Evidence showed that during the altercation, Dowdy pulled a handgun and shot the other individual in the head. Dowdy then fled the scene. The incident was captured on videotape. The Columbia Police Department issued state warrants for Dowdy’s arrest and he was apprehended in Orangeburg on January 14, 2014. At the time of his arrest on January 14, 2014, Dowdy had a loaded .357 caliber handgun in his possession. The investigation revealed that the handgun was the same handgun used in the January 3, 2014, incident. Dowdy is prohibited under federal law from possessing firearms and/or ammunition based upon his prior federal state convictions for burglary 2nd degree (2 separate offenses) and attempted burglary 2nd degree.
Mr. Nettles stated that Dowdy faces a maximum of 10 years imprisonment, a fine of $250,000 and a term of supervised release of up to 3 years. However, if the district court determines that Dowdy is an armed career criminal based upon his prior state convictions, he faces a mandatory minimum 15 years imprisonment with a maximum of life, a $250,000 fine, and up to 5 years of supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Columbia Police Department, the South Carolina State Law Enforcement Division, and the Orangeburg Department of Public Safety and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Carlsbad Woman Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Suzanne Marie Villa, 36, of Carlsbad, N.M., pleaded guilty today in federal court in Las Cruces, N.M., to a methamphetamine trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Villa was arrested on Aug. 25, 2015, on a criminal complaint charging her with possession of methamphetamine with intent to distribute on June 12, 2015, in Eddy County, N.M. According to the criminal complaint, Villa was arrested after Pecos Valley Drug Task Force agents notified U.S. Border Patrol Agents at the Border Patrol Checkpoint on Highway 62/180 near El Paso, Texas, to be on the lookout for her vehicle based on investigation indicating that Villa would be transporting drugs to Carlsbad. The U.S. Border Patrol later seized 25.7 grams of methamphetamine and drug paraphernalia from Villa’s vehicle during a checkpoint inspection. Villa was subsequently indicted on Nov. 19, 2015, and charged with conspiracy to possess methamphetamine with intent to distribute on June 12, 2015, in Eddy County.
During today’s proceedings, Villa pled guilty to the indictment and admitted that on June 12, 2015, she was stopped by law enforcement officers and found to be in possession of 25.7 grams of methamphetamine together with other items associated with methamphetamine trafficking including a scale, plastic bags, a glass smoking pipe and $820.00 in cash.
At sentencing, Villa faces a maximum penalty of 20 years in federal prison followed by not less than three years of supervised release. Villa remains detained pending her sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA and is being prosecuted by Assistant U.S. Attorney Selesia Lee Winston of the U.S. Attorney’s Las Cruces Branch Office.
Business Owner Sentenced for $493,000 Employment Tax SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., business owner was sentenced in federal court today for a scheme to defraud the government by failing to pay over to the Internal Revenue Service more than $260,000 that he collected from his employees in employment taxes. Along with more than $232,000 that he failed to pay as his employer portion of the taxes, the total loss to the government was more than $493,000.
Joseph Patrick Balano, 54, of Kansas City, Mo., was sentenced by U.S. District Judge Gary A. Fenner to two years and three months in federal prison without parole. The court also ordered Balano to pay $493,443 in restitution. Balano has been in federal custody since his pretrial release was revoked in June 2014 after he committed two crimes involving thefts.
Balano, who pleaded guilty on Aug. 3, 2015, was the owner of Global Employment Group, Inc., doing business as Staffing Connections (Global Employment) in Grandview, Mo., and Kansas City, Mo. Two earlier businesses – Labor Connections and Labor Connections II – were dissolved in 2006, ostensibly because of employment tax issues. In their place, Balano formed Global Employment in December 2006. Employees who had been working for Labor Connections and Labor Connections II began working for Global Employment. Business operations stayed in the same location.
Balano admitted that he withheld employment taxes from his employees, but instead of paying over those taxes to the government, Balano kept most of those taxes for his own personal use. Balano used the money to finance his own personal expenses and expenses for family members, including gambling, mortgage payments (residence and lake house) and car payments.
The total amount withheld from employees but not paid to the IRS from April 2008 to April 2009 was $260,770. In addition, Balano failed to pay the employer portion of the taxes to the IRS as well, in the amount of $232,672. The total amount of loss to the government was $493,443.
This case was prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by IRS-Criminal Investigation.
Buffalo Man Convicted by A Jury of Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney William J. Hochul Jr. announced today that that a federal jury has convicted Derek McQuiller, 42, of Buffalo, NY, of possession with intent to distribute cocaine. The charge carries a maximum sentence of 30 years in prison, a fine of $2,000,000, or both.
Assistant U.S. Attorneys Edward H. White and Stephanie O. Lamarque, who handled the prosecution of the case at trial, stated that during a traffic stop on April 22, 2015, the defendant threw a plastic bag out of the passenger window. The bag was recovered and found to contain 10 individually wrapped baggies of cocaine. McQuiller threw another plastic bag out of the driver’s side window. That bag was recovered and found to contain marijuana. During a subsequent search of the vehicle, another baggie of cocaine was discovered under the passenger floor mat.
The defendant was transported to the Town of Tonawanda Police Station and three additional baggies of cocaine were found later that night under the bench where McQuiller had been booked. The defendant also was alleged to have given a baggie of cocaine to a female acquaintance earlier that night in a motel room.
McQuiller has five prior state and federal convictions, all for drug trafficking offenses.
Today’s verdict is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the Town of Tonawanda Police Department, under the direction of Chief Jerome C. Uschold III, and the Kenmore Police Department, under the direction of Chief Peter Breitnauer.Sentencing is scheduled for May 2, 2016 at 10:00 a.m. before Judge Lawrence J. Vilardo who presided over the trial.
Brooklyn NY Man Sentenced to 24 Months Probation for Possession of 15 or More Counterfeit Access DevicesRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JAVONTE SHAWN ALEXANDER, age 23, of Brooklyn, New York, was sentenced to 24 months of probation for POSSESSION OF FIFTEEN OR MORE COUNTERFEIT ACCESS DEVICES, in violation of Title 18, United States Code, Sections 1029(a)(3) and 2.
The Indictment alleged that on or about April 24, 2015, within the Eastern District of Oklahoma, the defendant knowingly possessed fifteen (15) or more access devices, which were counterfeit or unauthorized access devices, with said activity affecting interstate commerce.
The charges arose from an investigation by the Oklahoma Highway Patrol and the United States Secret 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.
Assistant United States Attorney Melody Nelson represented the United States.
Broadview Heights man charged for his role in theft of $3.3 million from the Cuyahoga Heights School DistrictRead the Press Release
A two-count criminal information was filed charging a Broadview Heights man for his role in the theft of more than $3.3 million from the Cuyahoga Heights School District, law enforcement officials said.
Dominick Palazzo, 42, was charged with conspiracy to commit mail fraud and conspiracy to commit money laundering.
His brother, Joseph M. Palazzo, was an employee of the Cuyahoga Heights School District. The Palazzos, along with David Donadeo and Dennis Boyles, conspired together to defraud the school district through dozens of fraudulent billings to sham companies controlled by Dominick Palazzo, Donadeo and Boyles, according to court documents.
“This defendant, along with his brother and friends, stole millions of dollars from the children and taxpayers in Cuyahoga Falls,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio. “They used fraudulent invoices and fake companies to enrich themselves at the expense of kids.”
“This investigation uncovered a multi-million-dollar embezzlement scheme laced with a web of financial lies that left a local school district in financial peril,” said Guy A. Ficco, Acting Special Agent in Charge, IRS-Criminal Investigation, Cincinnati Field Office.
“Dominick Palazzo violated the trust that the citizens and students of Cuyahoga Heights had placed in him by funding his personal account with their tax dollars,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “The investigators are to be commended for uncovering this enormous fraud.”
Joseph Palazzo was employed by the Cuyahoga Heights School District as its Information Technology director until February 2011. He was responsible for managing the district’s IT Department, which included purchasing hardware and software and making other IT expenditures to benefit the district and its students, according to the information.
Joseph Palazzo devised a scheme to divert millions of dollars of district funds to his personal use and the personal use of others. This scheme involved Joseph Palazzo submitting to the district for payment false invoices that purported to be for IT-related goods and services purchased from legitimate companies by the district’s IT Department to benefit the district. He represented that the invoices he submitted were legitimate, and he approved the false invoices himself or forged the signature of another in the approval section, according to the information.
However, these invoices were for services never performed, fictitious software and hardware, and software and hardware never received or already purchased by the district from another source. The companies named on the invoices did not supply such goods to or perform such services for the district and were nothing more than “shells,” according to court documents.
Joseph Palazzo’s actions caused the district to issue checks to these shell vendor corporations, which were established and owned by Dominick Palazzo, Boyles and Donadeo. The shell vendor corporation owners kept approximately half of the stolen money themselves and funneled the remainder of the money back to Joseph Palazzo for his personal use, according to court documents.
These shell companies included Laptops and More, Inc., and Impact Global, LLC, which were established by Dominick Palazzo.
The district sustained a total loss of at least $3,333,448, as a result of the fraudulent scheme according to the information.
Joseph Palazzo was previously found guilty and is currently serving a sentence of more than 11 years in prison. Boyles was sentenced to more than two years in prison and Donadeo’s case is pending.
The case is being prosecuted by Assistant United States Attorney Rebecca Lutzko following an investigation by the Internal Revenue Service -- Criminal Investigation and the Federal Bureau of Investigation.
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.
An information 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.
Blythewood Man Convicted of Massive Government FraudRead the Press Release
Contact Person: Bill Day (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Dennis Paulsen, age 45, of Blythewood was convicted of stealing more than $1.5 million from the United States Department of Veteran’s Affairs and the Social Security Administration following a seven-day jury trial in federal court in Columbia. Mr. Nettles stated the maximum penalty Paulsen faces is imprisonment for up to 20 years and fines of $500,000, along with forfeiture of the more than $1.5 million. Senior United States District Judge Margaret B. Seymour of Columbia presided over the trial and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
In conducting one of the largest fraudulent single disability compensation claims in VA history, Paulsen substantially feigned and exaggerated the impairment resulting from his multiple sclerosis (MS) diagnosis. After being diagnosed and discharged from the Navy in the early 1990s, Paulsen began receiving a monthly VA benefit as a result of his diagnosis. Unsatisfied with the amount he was receiving, Paulsen began a pattern of malingering by claiming his MS rendered him unable to use his hands or feet in any respect. Still unhappy with the money he was awarded, Paulsen ramped up his claims, lying to his doctors, presenting himself as house- and wheelchair- bound, and making false claims that he required daily professional medical care to live until his benefits were increased to the maximum disability payments available to a Veteran. At the same time, Paulsen used the same feigned impairments to convince the Social Security Administration that he was entitled to SSA disability benefits. Despite his feigned claims of impairments and presenting himself in a wheelchair to his doctors, Paulsen lived in a non-handicap accessible residence and was able to ride his motorcycle and jet skis plus play baseball and golf on a regular basis. In 1999, Paulsen met his ex-wife at the gym where he exercised and worked training others. In 2004, Paulsen sold their 5,000 square foot house for more than half of a million dollars and moved from Virginia to Blythewood, SC.
In Blythewood, Paulsen purchased a two-story brick house that was not handicapped accessible and stopped going to neurologists for his MS. Illustrating his lack of impairment, Paulsen was active in several gyms, joined a baseball league from 2006 until 2014, and lived an active lifestyle, including playing pool, swimming in his backyard pool, playing on the beach, and driving his Escalade and manual shift Mini-Cooper. In 2014, a concerned citizen reported Paulsen to the VA and explained how Paulsen lacked the impairments that he claimed. Upon learning that the VA was looking into his actual impairment from MS, Paulsen immediately quit his baseball league and began appearing at the VA again in his wheelchair, claiming to be unable to walk or use his hands.
The extensive investigation by the VA and SSA included undercover agents, surveillance, and photographs and video footage from banks, stores, and the Columbia Metropolitan Airport. Family photographs kept by Paulsen’s ex-wife were also obtained showing Paulsen’s many activities with his family, playing baseball, and participating in a Marine Mud Run. Paulsen testified, in a wheelchair, for four hours and called three doctors as expert witnesses in an attempt to support his claim that he was and had been totally disabled. The guilty verdict reflects that the jury did not find this testimony credible.
The case was investigated by the Office of Inspector General for the Veteran?s Administration and Social Security Administration. Assistant United States Attorneys William E. Day II and Jay N. Richardson and of the Columbia office prosecuted the case. Anyone aware of fraud being committed against the Department of Veterans Affairs should call 1-800-488-8244 and report it.
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Benjamin Colby Smith Sentenced to 200 Months for Leadership Role in Methamphetamine ConspiracyRead the Press Release
GREENEVILLE, Tenn. – On Jan. 25, 2016, Benjamin Colby Smith, 39, of Russellville, Tenn., was sentenced by the Honorable R. Leon Jordan, U.S. District Judge, to serve 200 months in federal prison for his leadership role in a methamphetamine conspiracy centered in the Morristown area of the Eastern District of Tennessee. Smith obtained substantial quantities of methamphetamine from a source of supply in Georgia and redistributed it to others in and around Morristown, Tenn.
According to Smith’s plea agreement on file with U.S. District Court, he was involved in a traffic stop in Morristown in September 2014. This stop lead to the search of the vehicle he was driving and resulted in the seizure of approximately 45 grams of methamphetamine. Smith was arrested and transported to jail. While incarcerated, he made a number of calls, which were recorded. During some of these calls, he directed Stacy Margarita Williams, 24, and Krystal Ann Sexton, 34, both of Morristown, Tenn., to travel to Georgia and meet with his methamphetamine supplier on his behalf.
In September 2014, Williams and Sexton arrived in Georgia, met with Smith’s source and obtained methamphetamine which was to be returned to Tennessee to sell for Smith. On the return trip to Morristown, Williams and Sexton were pulled over for a traffic stop in Georgia. A search of their vehicle resulted in the seizure of at least approximately 51 grams of methamphetamine, a digital scale and a firearm.
Others who were charged and previously sentenced in this prosecution include Williams, Sexton and Cary Ann Winegar, 38, of Morristown, Tenn., who were sentenced to 60 months, 103 months and 97 months, in federal prison respectively.
Law enforcement agencies participating in this investigation included the Morristown Police Department, Hamblen County Sheriff’s Office and Franklin County, Georgia Sheriff’s Office. Assistant U.S. Attorney Wayne Taylor represented the United States.
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Augusta Residents Sentenced to Federal Prison for Their Roles in Armed Bank RobberyRead the Press Release
AUGUSTA, GA – Christopher J. Cunningham, 39, and Willie W. Smith, 38, from Augusta, Georgia, were both sentenced yesterday by Senior U.S. District Court Judge Dudley H. Bowen, Jr. to 10 years and 9 months in prison following their convictions for armed bank robbery. Ricardo M. Mobley, 29, also from Augusta, was sentenced last month to 8 years in prison for his role in the robbery. There is no parole in the federal system. Upon their release from prison, all three defendants will be supervised for 5 years by the U.S. Probation Office.
The evidence at the guilty plea and sentencing hearings revealed that, on the morning of January 9, 2015, Richmond County Sheriff’s Office received a report of an armed bank robbery in progress at a Southern Bank branch in Hephzibah, Georgia. Two men had entered the bank wearing masks, gloves and brandishing a firearm, while a third person – a getaway driver – waited in the car. The two who entered the bank demanded money, and left with over $12,000 in cash. Immediately thereafter, Chief Dwayne Flowers of the Hephzibah Police Department engaged in a high speed chase with the getaway car. The getaway car ultimately crashed in a field next to a country road, and the three defendants fled on foot, making their initial escape in the wooded area nearby. Based on evidence recovered at the scene of the crash, all three defendants were identified. Mobley was arrested later that same day. Smith and Cunningham were arrested some weeks later. Notably, Cunningham had been convicted at trial of another armed bank robbery in 2004. All three defendants ultimately pled guilty in this case.
This prosecution was the result of the cooperative efforts of the Hephzibah Police Department, the Richmond County Sheriff’s Office and the FBI’s Safe Streets Task Force. Also assisting in the investigation were the Georgia State Patrol, the U.S. Marshal’s Service and the U.S. Probation Office. Assistant United States Attorney Nancy Greenwood prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Attorney General’s Smart on Crime Initiative Implemented LocallyRead the Press Release
KNOXVILLE, Tenn.-- At the direction of the U.S. Attorney General in early 2013, the Justice Department launched a comprehensive review of the criminal justice system in order to identify reforms that would ensure federal laws are enforced more fairly and—in an era of reduced budgets—more efficiently. Five goals were identified as a part of this review:
- To ensure finite resources are devoted to the most important law enforcement priorities;
- To promote fairer enforcement of the laws and alleviate disparate impacts of the criminal justice system;
- To ensure just punishments for low-level, nonviolent offenders;
- To bolster prevention and reentry efforts to deter crime and reduce recidivism; and,
- To strengthen protections for vulnerable populations.
The Justice Department refers to this initiative as “Smart on Crime.” The U.S. Attorney’s Office for the Eastern District of Tennessee partnered with the Chief of the U.S. Probation Office for the Eastern District of Tennessee, Tony Anderson, and his staff to implement the program locally. The local program focuses on ways to make the district safer by providing federal ex-offenders with the resources necessary to successfully re-enter the community and reduce recidivism.
On Monday, Jan. 25, 2016, the local Smart on Crime Initiative started with a Community Resource Expo in Chattanooga, Tenn. Anderson kicked off the inaugural event by addressing the ex-offenders during the expo. The expo included a partnership with or featured community service providers who include Behind the Bars, BlueCross BlueShield, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Bureau of Prisons Half-Way House, Chattanooga Community Kitchen, Chattanooga State Community College, Christian Women’s Job Corp, Father to the Fatherless, Johnson Mental Health, Marion County, Tennessee Jail Chaplain, Mt. Canaan Baptist Church, Northside Neighborhood House, Olivet Church, Salvation Army, Stephens Table, Tennessee Career Center, Tennessee Department of Human Services, Tennessee Department of Labor and Workforce Development Career Center, and the United Way 2-11. Through this network of federal law enforcement officials and community service providers, the Smart on Crime Initiative is working to make this community safer through being both smart and tough on crime. TechTown, a technology and entrepreneurial learning center, provided space for the event and Southern Star, a local Chattanooga-based restaurant, donated full-catering services for the event. Similar events are scheduled for Knoxville and Johnson City, Tennessee this week.
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Atlantic Beach Attorney Charged with Embezzling from Bankruptcy EstateRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging William Reid Penuel (37, Ponte Vedra Beach) with embezzlement from a bankruptcy estate and making a false statement. If convicted, he faces up to five years in federal prison on each count. Penuel was arraigned in federal court today and was released on a $50,000 bond.
According to the indictment, between March 2015 and July 2015, Penuel, while serving as the Chapter 7 Trustee in a business bankruptcy case, embezzled estate funds held in a BB&T bank account. The indictment further alleges that, on August 19, 2015, Penuel lied to an FBI agent when he claimed that he had transferred the estate funds to his account at Ameris Bank. In fact, Penuel did not have an account at Ameris Bank.
An indictment is merely a formal charge that a defendant has committed a violation of one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Jacksonville office of the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Dale Campion.
10 Year Prison Sentence in Stolen Guns CaseRead the Press Release
Gulfport, Miss – Tyson Lee Gaines, Sr. was sentenced today by U.S. District Judge Sul Ozerden to serve 10 years in federal prison in a case involving the theft of 50 firearms from Friendly Pawn and Auto in Saucier, MS, U. S. Attorney Gregory K. Davis announced.
Gaines, 34, of Gulfport, Mississippi, received the maximum penalty of 10 years in prison on one count of stealing firearms from a licensed dealer. He was also ordered to pay restitution of $9,008.68 and he will serve three years of supervised release following his prison term.
This case was investigated by the Bureau of Alcohol Tobacco Firearms and Explosives, the Drug Enforcement Administration and the Harrison County Sheriff’s Department. The case was prosecuted by Assistant United States Attorney Annette Williams.
Monday 25 January 2016
Westerville Man Pleads Guilty in Million Dollar Investment Fraud SchemeRead the Press Release
COLUMBUS – Mark Preston French, 42, of Westerville, Ohio has pleaded guilty in U.S. District Court to one count of wire fraud in connection to investment fraud scheme involving more than $1 million.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), announced the plea entered on Friday before U.S. District Chief Judge Edmund A. Sargus, Jr.
According to court documents, French worked as a stockbroker between 1998 and 2013. An elderly woman from Greenville, Pennsylvania, who believed French was an investment advisor, was his client between 2000 and 2012. In 2008, French advised the elderly woman to begin investing in precious metals.
In 2009, French advised his elderly client to open joint checking and savings accounts with him so he could purchase and sell precious metals on her behalf. French instructed his client deposit funds totaling more than $1.3 million into these joint accounts. French used the funds to purchase and sell gold and silver with the Tulving Company in Newport Beach, California. French deposited a portion of the proceeds received from the sale of the elderly client’s precious metals to the Tulving Company, but also embezzled $120,414.80 of the proceeds for his own purposes.
In September 2012, French advised the elderly client told French she wanted to take physical possession of her gold and silver, which French was storing in his Westerville home. Instead, French sold a majority of the precious metals back to Tulving Company, returning $1,062,820 back to his client, but keeping part of the proceeds for himself. He also kept 11,942 ounces of silver purchased with his client’s funds, which was valued at more than $400 thousand.
French faces up to 20 years in prison and a fine of $250 thousand for his crimes. He must pay restitution to the elderly victim of his fraud scheme as part of his plea agreement. French will be sentenced at a later date.
U.S. Attorney Stewart commended the investigation by FBI, as well as Assistant United States Attorney Dale Williams, who is representing the United States in this case.
West Palm Beach Brothers Sentenced to Prison and Ordered to Forfeit Property Following Mail Fraud and Money Laundering ConvictionsRead the Press Release
West Palm Beach brothers Janio Vico and Jharildan Vico were sentenced to 108 months in federal prison, the forfeiture of $1.87 million and restitution in the amount of $1.92 million, following their mail fraud and money laundering convictions.
Wifredo Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Janio Vico, 32, and Jharildan Vico, 34, both of West Palm Beach, were sentenced by United States District Judge Robin L. Rosenberg in West Palm Beach, following their trial before a jury resulting in guilty verdicts on the 16-count indictment charging conspiracy to commit mail fraud and mail fraud, in violation of Title 18 United States Code, Sections 1349 and 1341; as well as conspiracy to commit money laundering and money laundering, in violation of Title 18, United States Code, Sections 1956(h) and 1957.
According to statements made in court and documents filed in the case, the Vicos established and operated an unlicensed health care clinic known as V & V Rehabilitation Center, Inc., originally located in Lantana and moved to West Palm Beach, for the purpose of defrauding at least 15 automobile insurance companies by submitting claims for personal injury protection (PIP). During a 20 month period, beginning December 2009, through at least October 4, 2011, the brothers received approximately $1.87 million in payments from automobile insurers for relying upon these fraudulent claims that were, in part, based upon staged accidents, real accidents resulting in no injuries, false documents submitted for non-existent treatment, and claims made through an unlicensed clinic. The scheme came about because the Vico brothers were paying claimants to appear at their clinic known as V & V Rehabilitation Center. Much of the money received from the insurance companies was diverted to the brothers’ accounts for their personal use.
Janio Vico and Jharildan Vico each used a portion of the more than $1.2 million transferred from the clinic accounts to accounts they controlled for their personal use to buy residential property, amongst other things.
The Vico brothers claimed that formerly licensed chiropractor co-conspirator, Jennifer Adams, was the owner of V & V Rehabilitation Center Inc., in order to avoid obtaining a license and evade the scrutiny of the Florida Department of Health. The evidence at trial showed that Janio Vico and Jharildan Vico were the true owners of the clinic which was unlicensed during time period charged. According to State of Florida laws, because the Vico brothers were the true owners and did not get a license in their names, the clinic was unlicensed and the claims to insurance companies were illegal.
During the course of the fraud, the Vico brothers purchased at least two residences using moneys obtained through their fraud. After a hearing to determine whether forfeiture of money and properties should occur in this case, the court entered a preliminary order of forfeiture as part of their sentences that requires that both Janio Vico and Jharildan Vico forfeit $1.87 million together with residences at 610 Cresta Circle, West Palm Beach and 669 Pacific Grove Drive, Unit #3, West Palm Beach.
This prosecution was the latest in the ongoing investigation of clinics established in the Palm Beaches to fraudulently bill automobile insurance companies for PIP claims in Operation Sledgehammer. As a result of that investigation, more than 100 individuals have been prosecuted for similar offenses. PIP provides $10,000 of insurance to individuals injured during automobile accidents in Florida regardless of blame, relying upon truthful submission of diagnosis, treatment orders and actual treatment documents provided to the insurance companies. Each time fraudulent claims are submitted, the price of automobile insurance is affected, resulting in higher premiums.
Mr. Ferrer commended the investigative efforts of the FBI and the assistance of the National Insurance Crime Bureau. This case was prosecuted by Assistant United States Attorney Ellen Cohen.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. 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.
Uniontown Man Admits Producing Child PornographyRead the Press Release
PITTSBURGH - A former Fayette County resident pleaded guilty in federal court to a charge of production and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
David Kinteay Carson, 38, of Uniontown, Pa., pleaded guilty before Senior United States District Judge Maurice B. Cohill.
In connection with the guilty plea, on or about Sept. 26, 2014, Carson produced visual depictions of the sexual exploitation of a minor.
The law provides for a mandatory minimum of 15 years imprisonment, supervised release for no less than five years, and up to life, and a fine of $250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Uniontown City Police Department conducted the investigation that led to the prosecution of Carson.
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.justice.gov/psc.
Two Men Sentenced for Defrauding Memphis VA Medical Center of $1 MillionRead the Press Release
Memphis, TN – Two men have been sentenced to prison for conspiring to execute a scheme that defrauded the Memphis VA Medical Center of $1 million. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencings today.
According to the indictment, from August 2007 to July 2013, Andre Reddix, 60, and Ronnie White, 61, both of Memphis, conspired to embezzle more than $1 million from the VA. The medical center provides health care services to veterans in western Tennessee, northern Mississippi, and northeastern Arkansas.
Reddix was an employee at the VA during the scheme’s duration, according to information presented in court. His duties included using a company-issued credit card to buy medical supplies for the VA.
In August 2007, Reddix concocted a scheme with White, which involved White establishing a medical supply company entitled White Pharmaceuticals. Following the company’s formation, Reddix got White Pharmaceuticals approved to serve as a vendor that provided medical supplies to the VA.
For nearly six years, Reddix created fraudulent purchase orders to White Pharmaceuticals for medical supplies that were never delivered to the VA. Subsequently, White prepared and sent the VA fraudulent invoices that corresponded with each of the fraudulent purchase orders.
Reddix used the company-issued credit card to fraudulently pay White Pharmaceuticals for the undelivered medical supplies. The defendants then divided the payments among themselves, using the funds for personal expenses.
Ultimately, more than 300 fraudulent transactions were made by the defendants. The VA was defrauded of more than $1 million during the scheme.
In September 2015, Reddix and White both pled guilty to conspiracy to defraud the VA of approximately $1 million.
On December 11, 2015, White was sentenced by U.S. District Judge Samuel H. Mays Jr. to serve 30 months imprisonment. He was also ordered to pay $1,137,694.14 in restitution.
On January 21, 2016, Reddix was sentenced by Judge Mays to serve 30 months. Reddix was also ordered to pay $1,137,694.14 in restitution.
This case was investigated by the U.S. Department of Veterans Affairs, Office of Inspector General.
This case was prosecuted by the U.S. Attorney’s Office.
Two Men Charged in Gas Station Armed RobberiesRead the Press Release
PANAMA CITY, FLORIDA – Zachary Tyler Hubbard and Jarrod Lonnie Moore, both 20, of Georgia, were arraigned today in federal court after a grand jury returned an indictment charging them with conspiracy, interfering with commerce by threats or violence, and brandishing a firearm during a crime of violence. Hubbard was also charged with being a felon in possession of a firearm. The indictment was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
The indictment alleges that, on December 7, 2015, Hubbard and Moore forcefully took money from employees at two gas stations located in the Panama City area, while carrying a pistol. The trial is scheduled for March 21, 2016, at 8:30 a.m.
This case resulted from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bay County Sheriff’s Office, and the Panama City Police Department. Assistant United States Attorney Kathryn D. Risinger is prosecuting the case.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Trio Charged in Illegal Gun SalesRead the Press Release
PHILADELPHIA – An indictment was filed on January 21, 2016 charging three men with dealing in firearms without a license, announced United States Attorney Zane David Memeger. Darien Montae Thompson, 22, Omar Tarik Davenport, 24, and Sekou Maliek Davenport, 21, all of Philadelphia, are charged with selling guns that were previously reported stolen from homes and vehicles. Thompson and Omar Davenport are also charged with conspiracy, interstate travel in furtherance of dealing in firearms without a license, and possession of a short-barreled rifle; Omar and Sekou Davenport are also charged with possession of a firearm by a convicted felon.
According to the indictment, the defendants illegally acquired firearms in the state of Georgia and transported the firearms to Pennsylvania for illegal sale. Guns that the defendants allegedly sold had been reported stolen from homes in Georgia, Pennsylvania, and South Carolina. Omar Davenport was on state parole, following a felony conviction, during the time of the alleged conspiracy.
If convicted of all charges, Thompson faces a maximum statutory sentence of 30 years in prison and a $500 special assessment; Omar Davenport faces a maximum statutory sentence of 55 years in prison and a $700 special assessment; Sekou Davenport faces a maximum statutory sentence of 15 years in prison and a $200 special assessment. Each defendant also faces supervised release and a possible fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Mark Miller.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Three Men Sentenced to Lengthy Federal Prison Terms for Roles in Methamphetamine Distribution ConspiracyRead the Press Release
FORT WORTH, Texas — Three North Texas men were sentenced this morning by U.S. District Judge Reed C. O’Connor to lengthy federal prison terms for their respective roles in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Winfred Morgan Trammel, 39, of Breckenridge, Texas, was sentenced to 262 months in federal prison. Co-conspirators Larry Hawkins, 59, of Wichita Falls, Texas, and Jackie Lynn Watters, 50, of Fort Worth, Texas, were each sentenced to 180 months in federal prison. Trammell was convicted at trial in September 2015 on one count of conspiracy to possess with the intent to distribute methamphetamine. Hawkins and Watters each pleaded guilty in October 2015 to the same offense.
At trial, the jury found that from before July 2014 to approximately June 2015, Trammel and others conspired together to possess with intent to distribute 50 grams or more of methamphetamine. According to plea documents filed in the case, since approximately 2014, Hawkins received more than 50 grams of methamphetamine from others charged in the indictment and distributed it to his customers in the Wichita Falls, Texas, area. Since approximately 2014, Watters assisted others in their distribution of methamphetamine by acting as a lookout or collecting drug proceeds.
A total of 29 defendants were charged in the case; 28 have been convicted, and most of those have been sentenced. Earlier this month, co-defendants Matthew Rutledge, 33, and Joel Prickett, 37, were sentenced to 324 months, and 160 months, respectively, in federal prison for their roles in the conspiracy.
The Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Texas Department of Public Safety and the Fort Worth Police Department investigated the case. Assistant U.S. Attorney Shawn Smith was in charge of the prosecution.
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Three Involved in Network of Conspirators That Targeted Medicaid Are Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – Two men and a woman involved in a network of conspirators that targeted Medicaid by submitting fraudulent reimbursement claims have been sentenced to prison on health care fraud conspiracy charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Chief U.S. District Judge Frank Whitney sentenced today Alexander Bass, 42, and Torrey Darnell Moton, 45, both of Fuquay-Varina, N.C., to 32 and 25 months in prison, respectively, three years of supervised release and ordered both defendants to pay $370,372.37 as restitution to Medicaid.
On January 13, 2016, a third conspirator, LaChanda Clotiel Parks, 40, of Charlotte, was ordered to serve 28 months in prison followed by three years of supervised release and to pay $352,565.69 in restitution for her role in the conspiracy.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division joins U.S. Attorney Rose in making today’s announcement.
According to information in filed court documents and court proceedings, at various times between October 2012 and August 2013, Bass, Moton and Parks were part of a health care fraud ring that defrauded Medicaid by filing false claims for mental and behavioral health services to beneficiaries which were never actually provided. According to court records, the network of conspirators executed the fraud through a number of mental and behavioral health services companies, including “United Rehabilitation Services” (URS) in Erwin, N.C., which was owned and operated by Bass and Moton.
Court records show that Bass and Moton agreed to pay $4,000 per month to Cynthia Harlan, who is currently facing federal health care fraud charges, in exchange for coordinating the filing of fraudulent claims to Medicaid on behalf of URS. At the direction of Harlan, Bass and Moton also paid another conspirator, who operated as the scheme’s patient-recruiter, to collect Medicaid beneficiary numbers which were then used to file the false claims. Court records indicate that between January and July 2013, Harlan, Bass and Moton filed over $1.1 million in fraudulent claims, and Medicaid paid out approximately $370,000 directly to Bass and Moton.
According to court filings, Parks was responsible for generating some of the fake paperwork used to support the fraudulent claims, including fake intake sessions, fake clinical assessments and fabricated therapy notes.
The three defendants will be ordered to report to the Federal Bureau of Prisons to begin serving their sentences upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the FBI with assistance from the North Carolina Medicaid Investigations Division. Assistant U.S. Attorney Kelli Ferry is in charge of the prosecution.
The investigation is the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected]. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
Texas Woman Sentenced in Credit Card Fraud SchemeRead the Press Release
BOISE – Brooke Ashley Darby, 29, of Fort Worth, Texas, was sentenced today to 28 months in prison, followed by three years of supervised release for committing wire fraud and aggravated identity theft, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Darby to pay $15,325.25 in restitution. Darby pleaded guilty on November 10, 2015.
According to Darby’s plea agreement, she admitted to traveling to Idaho, along with her co-defendant, Charmaine Montgomery, for the purpose of making fraudulent purchases of gift cards and merchandise from retail stores, using stolen credit card numbers encoded onto stock gift cards. Darby admitted to obtaining the stock debit cards encoded with unauthorized credit card numbers, and making purchases at retail stores on June 23 and June 24, 2015. In all, Darby admitted that she and Montgomery purchased approximately $13,095.90 in gift cards and merchandise with the fraudulently encoded gift cards. Upon her arrest, Darby and Montgomery were found in possession of approximately 250 gift cards encoded with unauthorized credit card numbers.
Montgomery pleaded guilty on December 1, 2015, to committing wire fraud and aggravated identity theft. Her sentencing is set for February 11, 2016.
The case was investigated by the United States Secret Service and the Boise Police Department.
Texas Man Sentenced to 27 Months in Prison for Role in Bath Salts Conspiracy; Must Forfeit More Than $750,000 in AssetsRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a 40-year-old Texas man was sentenced today to serve 27 months in prison and ordered to forfeit his interest in more than $750,000 in assets for his role in a conspiracy to distribute and possess with intent to distribute alpha-pvp, commonly known as “bath salts,” by U.S. District Court Judge Malachy E. Mannion in Scranton.
According to United States Attorney Peter Smith, the defendant, Thanh Duc Tran, of Houston, Texas, previously pleaded guilty to conspiring with others to distribute alpha-pvp to customers in at least 32 states, including Pennsylvania, over various web sites during 2011 through March 2014.
Thanh Duc Tran was indicted by a federal grand jury in March 2014, as a result of an investigation by Homeland Security Investigations, the Drug Enforcement Administration, United States Postal Inspectors, the Pennsylvania State Police, and West Pittston Police.
Judge Mannion ordered the defendant to forfeit to the government his interest in a residence in Texas valued at approximately $300,000, coins valued at more than $260,000, four bank accounts containing over $200,000, two vehicles, over $7000 in cash and more than $17,000 in uncashed money orders, and two firearms. Tran must also spend three years on supervised release following his prison sentence.
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
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