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Monday 25 January 2016
Texas Man Sentenced for Cocaine DistributionRead the Press Release
Stacy L. Harden, 42, from Desoto, Texas, was sentenced on January 22, 2016, in federal district court, in East St. Louis, Illinois, for one count of Possession with Intent to Distribute More than Five Kilograms of Cocaine, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
Harden was sentenced to 120 months in prison, 5 years of supervised release, fined $750, and ordered to pay a $100 special assessment. Court proceedings revealed that on October 21, 2010, a confidential informant told DEA agents that Harden was in the St. Louis area with a large amount of cocaine for sale. DEA agents tracked Harden down and on October 22, 2010, observed Harden leave an O’Fallon home with a plastic shopping bag. Harden then went to another residence in Swansea, Illinois, where he left with a black bag. Shortly thereafter, the Fairview Heights Police Department conducted a traffic stop on Harden at the direction of the DEA agents. Harden sped off, driving into a residential area and throwing items out of the window, as witnessed by officers. Approximately 4 kilograms of cocaine were seized by officers. Harden was placed under arrest and later admitted to possessing a total of 7 kilograms of cocaine.
Evidence in support of this prosecution was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Agencies participating in this case include the Drug Enforcement Administration (DEA), and the Fairview Heights Police Department. This case was prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Surgeon Receives 78 Months in Prison for Distributing OxycodoneRead the Press Release
ALBANY, NEW YORK – Jeffrey Gundel, age 51, an orthopedic surgeon from Gansevoort, New York, was sentenced today to 78 months in prison for illegally authorizing the distribution of tens of thousands of oxycodone pills.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, Drug Enforcement Administration.
On December 3, 2014, Gundel pled guilty to one count of unlawful distribution of oxycodone. As part of his guilty plea, Gundel admitted that, between May 2011 and April 2014, he wrote over 200 prescriptions authorizing the dispensation of at least 59,520 30-milligram oxycodone tablets for no legitimate medical purpose. Gundel also admitted that he received cash kickbacks after co-conspirators filled the prescriptions and sold the oxycodone pills on the black market. On several occasions, Gundel prescribed oxycodone to undercover law enforcement agents he never met, treated, or communicated with in any way.
U.S. District Judge Mae A. D’Agostino also sentenced Gundel to a term of 3 years of supervised release, to be served following his release from prison. In sentencing Gundel, Judge D ’Agostino told him that he “became a common criminal drug dealer” and that there was “no way to quantify how many people became addicted to oxycodone because of your actions.”
Oxycodone is an addictive and often abused Schedule II narcotic prescribed to treat severe pain. The typical street value of a single tablet of the type prescribed by Gundel ranges from $30 to $45.
United States Attorney Richard S. Hartunian said: “Prescription drug abuse kills thousands of Americans every year and results in countless others transitioning to heroin to support their opioid addictions. Doctor Gundel’s reprehensible violation of his duties as a physician caused the streets of this District to be flooded with tens of thousands of deadly, addictive oxycodone pills. Those who misuse their privilege to prescribe and distribute controlled substances need to understand that they will be investigated and prosecuted just like the criminals selling heroin and other dangerous drugs on the street.”
Special Agent in Charge James J. Hunt said: “Diverted oxycodone is today’s ‘gateway drug’ for heroin, leading to tens of thousands of overdose deaths in the U.S last year. This guilty plea reiterates that doctors who illegally prescribe pain medication for profit are fueling heroin abuse throughout America’s cities. I commend our law enforcement partners and the DEA’s Albany District Office for their diligent efforts throughout this investigation.”
This case was investigated by the Drug Enforcement Administration and was prosecuted by Assistant United States Attorney Wayne A. Myers.
Stephentown Man Pleads Guilty to Illegally Possessing A FirearmRead the Press Release
ALBANY, NEW YORK – Joseph M. Jackson, age 36, of Stephentown, New York, pleaded guilty today to being a felon in possession of a firearm.
The announcement was made by United States Attorney Richard S. Hartunian and Delano A. Reid, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New York Field Division.
On September 27, 2015, Jackson, a felon, was found to be in possession of a Rohm Gesellschaft .38 caliber revolver, one box of Winchester .38 caliber live ammunition and one round of 9x19 caliber ammunition. The gun and the ammunition were found in a safe; the safe was in a car that was registered to Jackson.
Jackson faces a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years when he is sentenced on May 23, 2016 by U.S. District Judge Mae A. D’Agostino. Actual sentences are typically less than the maximum penalties. Sentences are imposed by a judge based on the U.S. Sentencing Guidelines and other statutory factors.
This case is being investigated by the ATF and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Emily Farber.
St. Croix Man Pleads Guilty to Manufacturing MarijuanaRead the Press Release
St. Croix, USVI – Raymond Mathurin, 48, of St. Croix, pleaded guilty today in District Court on St. Croix to one count of manufacturing a controlled substance, specifically, marijuana, United States Attorney Ronald W. Sharpe announced.
As part of his plea, Mathurin admitted that on June 26, 2014, he was growing a total of 69 marijuana plants near his property on St. Croix. At the conclusion of the hearing, Magistrate Judge George Cannon continued his release pending sentencing. Mathurin’s sentencing date has not been scheduled.
Mathurin is facing a maximum sentence of five years in prison, a $250,000 fine and a $100.00 special assessment.
The case was investigated by the United States Drug Enforcement Administration and is being prosecuted by Assistant U.S. Attorney Rami S. Badawy.
South Dakota Man to Serve 22 ½ Years in Federal Prison for Sexual Exploitation of Champaign MinorRead the Press Release
Urbana, Ill. – In federal court today, U.S. District Judge Colin S. Bruce ordered a South Dakota man to serve 22 ½ years (270 months) in federal prison for blackmailing a minor female to send him nude photographs of herself. Austin A. Burns, 21, of Huron, S.D., was ordered to serve five years supervised release following completion of his prison sentence. Burns will be required to register as a sex offender.
On Sept. 21, 2015, Burns pled guilty to one count of sexual exploitation of a minor. Burns admitted that soon after he began communicating online with a minor female, in 2014, she told him that she was 13 years old. Burns admitted that he demanded the girl send him naked photographs of herself and threatened that if she did not comply, he would post naked photographs of her online.
Burns has remained in the custody of the U.S. Marshals Service since he was arrested on Aug. 14, 2014, in Huron, S.D.
Assistant U.S. Attorney Elly M. Peirson prosecuted the case. The Champaign Police Department, the Huron, S.D. Police Department, and U.S. Immigration and Customs Enforcement Homeland Security Investigations investigated the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys= Offices and the Criminal Division=s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Oneil Scott Arrested and Charged in Manhattan Federal Court with Violent Attempted Robbery and Kidnapping of Bronx Man Resulting in His DeathRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Michael Greco, the Southern District of New York United States Marshal (“USMS”), and William Bratton, the Police Commissioner of the City of New York (“NYPD”), announced the arrest of ONEIL SCOTT on charges of robbery conspiracy, attempted robbery, kidnapping conspiracy, kidnapping resulting in death, and firearms offenses. At the time he was charged, SCOTT was serving a federal sentence on a robbery conviction arising from his participation in a Bronx armed robbery in approximately September 2010. Two other defendants, ALVIN HENRY and CHAI GREEN, were arrested on Tuesday, January 19, 2016, in connection with the same charges, contained in an Indictment unsealed the same day. All three defendants have been remanded and remain in custody.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, these three defendants, for no reason other than greed, carried out a scheme to kidnap and rob a suspected narcotics trafficker, ultimately taking his life. Those who use violence to terrorize our communities will be prosecuted to the fullest extent of the law.”
U.S. Marshal Michael Greco said: “Oneil Scott is a dangerous individual who was involved in a myriad of criminal activity. The diligent and joint efforts by the U.S. Attorney’s Office, the New York Police Department and the Marshals Service in getting him back to New York in order to face these additional charges makes our streets safer and is another win for the justice system.
NYPD Commissioner William Bratton said: “As alleged, these individuals participated in a kidnapping so violent that it resulted in death of their intended target. Adding insult to injury, the victim was set on fire, and his body abandoned in the back seat of a vehicle in a Bronx alleyway. I commend the work of the NYPD detectives, prosecutors and U.S. Marshals for their work and cooperation in this long-term investigation that resulted in theses arrests and indictments for this heinous crime.”
According to the allegations contained in the Indictment[1] and other documents in the public record, and statements made in court:
In 2014, SCOTT, HENRY, GREEN, and others committed multiple armed robberies of suspected narcotics traffickers. During one of these attempted armed robberies, they violently assaulted and ultimately killed their intended target. Just after midnight on the morning of March 11, 2014, SCOTT, HENRY, GREEN, and others apprehended the victim, Wayne Thomas, then 22 years old, of the Bronx, as the victim was parking his car in front of his residence. The defendants suspected that the victim was a drug trafficker who might be in possession of narcotics and/or narcotics proceeds. During the kidnapping, which was caught on surveillance video, several individuals violently grabbed the victim, pistol-whipped him, forced him into another car, and drove off with him. During both the kidnapping and the defendants’ subsequent attempts to obtain information about the whereabouts of drugs and drug money, the victim was seriously assaulted.
At approximately 5:30 a.m. on March 11, 2014, members of the New York City Police Department and the New York City Fire Department responded to 911 calls reporting a burning vehicle in an alleyway in the Bronx. Upon arriving at the scene, they observed a car still on fire. The Fire Department extinguished the fire, and officials then became aware that the victim’s body was in the back seat of the car. The Office of the Chief Medical Examiner of New York City subsequently performed an autopsy on the victim, and concluded that the cause of death was not fire-related injuries, but rather blunt force trauma, indicating that the victim had died before being placed in the rear of the vehicle.
ALVIN HENRY’s true name was unknown until his arrest by law enforcement officials on January 19, 2016 in connection with the instant charges.
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SCOTT, 33, of the Bronx, HENRY, 27, of the Bronx, and GREEN, 36, of the Bronx are each charged with one count of robbery conspiracy, which carries a maximum sentence of 20 years in prison; one count of attempted robbery, which carries a maximum sentence of 20 years in prison; one count of kidnapping conspiracy, which carries a maximum sentence of life in prison; one count of kidnapping resulting in death, which carries a maximum sentence of death; and one count of use of a firearm, which carries a maximum sentence of life in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by a judge
Mr. Bharara praised the investigative work of the USMS and the NYPD.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Christopher J. DiMase and Margaret Graham are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
New Hartford Woman Sentenced to Prison for Tax Fraud and Structuring OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on January 22, 2016, ANDREA M. DOBROZENSKY, 62, of New Harford, was sentenced by U.S. District Judge Janet Bond Arterton in New Haven to five months of imprisonment, followed by five months of home confinement, for filing false tax returns and structuring currency transactions. Judge Arterton also ordered DOBROZENSKY to serve one year of supervised release and pay a $3,000 fine.
According to court documents and statements made in court, between 2007 and 2009, while working as an office manager for a medical practice in Hartford, DOBROZENSKY made numerous transfers and deposits from the medical practice business bank account into her personal bank account as compensation for her services to the medical practice and untaken vacation time. During those three years, DOBROZENSKY willfully failed to provide her tax return preparer with information concerning her receipt of approximately $247,000 in additional taxable income. Each year, DOBROZENSKY signed her completed federal tax return and it was filed with the IRS. As a result, $247,000 in taxable income was not reported on DOBROZENKY’s federal tax returns for the 2007, 2008 and 2009 tax years, and she failed to pay a total of $76,750 in additional taxes owed.
DOBROZENSKY also unlawfully structured financial transactions. On November 27, 2012, DOBROZENSKY was at a branch of Farmington Bank in Avon with a friend, David Raymond, who told her to write checks in amounts below $10,000. DOBROZENSKY wrote two checks, one to herself for $9,900 and one to Raymond for $9,900. She then cashed the check payable to her and received $9,900 in cash. Raymond cashed the check payable to him and received $9,900 in cash. He later handed the $9,900 to DOBROZENSKY.
Federal law requires all financial institutions to file a Currency Transaction Report (CTR) for currency transactions that exceed $10,000. To evade the filing of a CTR, individuals will often structure their currency transactions so that no single transaction exceeds $10,000. Structuring involves the repeated depositing or withdrawal of amounts of cash less than the $10,000 limit, or the splitting of a cash transaction that exceeds $10,000 into smaller cash transactions in an effort to avoid the reporting requirements. Even if the deposited funds are derived from a legitimate means, financial transactions conducted in this manner are still in violation of federal criminal law.
As part of her sentence, DOBROZENSKY was ordered to forfeit $9,900 related to her structuring activity.
On December 19, 2013, IRS Special Agents interviewed DOBROZENSKY at her residence. On that date, DOBROZENSKY admitted that she should have reported the additional income on her federal tax returns. She specifically stated that, on November 16, 2007, she wrote a check in the amount of $100,000 on the medical business account payable to herself, received the funds and did not report those funds on her federal tax return. DOBROZENSKY also admitted that, as to the structuring violation, Raymond had advised her to keep any payments under $10,000 to avoid filling out a form.
Prior to sentencing, DOBROZENSKY paid the IRS $97,986 in back taxes and interest. She also is required to pay penalties on her unpaid taxes.
On October 13, 2015, DOBROZENSKY pleaded guilty to one count of filing a false tax return and one count of unlawfully structuring financial transactions.
On October 19, 2015, Raymond, of Glastonbury, pleaded guilty to one count of structuring financial transactions. He awaits sentencing.
This matter has been investigated by the Internal Revenue Service – Criminal Investigation Division, Federal Bureau of Investigation and Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.
Morris Anthoney Phillips Sentenced to 144 Months in Marijuana, Money Laundering and Oxycodone ConspiraciesRead the Press Release
GREENEVILLE, Tenn. – On Jan. 19, 2016, Morris Anthoney Phillips, 39, of Culver City, Cal., was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 144 months in federal prison for his leadership role in an extensive marijuana, oxycodone and money laundering distribution conspiracy centered in the Eastern District of Tennessee and the Western District of Virginia. Phillips was the primary source of supply responsible for the distribution of these drugs from the Los Angeles, California area to Tennessee and Virginia.
According to the plea agreement on file with the U.S. District Court Clerk, Phillips admitted that he was accountable for at least 954 kilograms of marijuana and 1,000 (30 mg) oxycodone pills. In July 2011, law enforcement officers coordinated a 500 pound marijuana reversal operation with Phillips in California. Upon weighing the marijuana, it turned out to be 562 pounds, instead of 500 pounds. Phillips sent another individual to retrieve the money for the additional 62 pounds of marijuana. The other individual was later pulled over for a traffic stop and a search of his vehicle revealed a quantity of cash commensurate with the price for 62 pounds of marijuana (approximately $34,590.00). Officers subsequently knocked on the door of Phillips’ residence and he attempted to flee. Upon seeing officers surrounding the residence, he went back inside the residence and barricaded himself for a period of time. A search warrant was executed which resulted in the seizure of 562 pounds of marijuana, packaging materials, two .40 caliber pistol magazines, a black holster, and a paper bag with $11,000 in U.S. currency. A 12 year old child was also present in the residence with Phillips during all of these activities. A search warrant was then obtained for the address in Burbank, where Phillips’ co-conspirator went to get additional monies for the remaining marijuana, and which was operated as a stash house. A search of that residence revealed $249,015.00 in two suitcases. One of these suitcases had a hidden compartment built into it to hide the money. Another suitcase contained $519,920.00 in cash. A black bag was also found in the residence containing $70,700.00. In total, approximately 1.2 million dollars was seized from the residences and vehicles searched at the Los Angeles and Burbank addresses.
Phillips took over dealing to his Tennessee co-conspirators in approximately 2010 after their former Jamaican source of supply was deported back to Jamaica. Phillips flew from Los Angeles to either Nashville or Knoxville on at least 14 separate occasions dating back to March 2012 to meet with co-defendants Glenn Draughn, 69, and James Wright, 59, both of Kingsport, Tenn., and pick up bulk cash for drugs he was delivering to them and others. By 2013, Phillips involved his brother, co-defendant Antonio Barrington Parsley, 24, of Culver City, Cal., in the criminal conspiracies and introduced him to Draughn and Wright, among others. Usually, these meetings occurred every two months and involved at least $100,000.00 in cash each time. Phillips and/or Parsley took the money they received from Draughn, Wright and others and put it in a hidden compartment in their luggage to conceal and transport back to Los Angeles.
In July 2014, Parsley, Wright and Draughn were all arrested in Nashville, Tenn., at a meeting in a local motel room near the airport. Parsley conducted this transaction for Phillips. A search of the motel room resulted in the seizure of approximately $100,000.00 in cash, which was payment for another marijuana shipment from California to Tennessee, in addition to $10,500.00 for approximately 100 oxycodone pills. The pills had been hidden in a Skittles candy bag, re-sealed and placed inside Parsley’s suitcase.
Others who have been previously sentenced in this prosecution include Draughn, Parsley, Larry Williams, 68, of Mendota, Va., and Kenny Russell, 57, of Kingsport, Tenn., who were sentenced to 63 months, 46 months, 140 months and 60 months, in federal prison respectively. Wright is scheduled to be sentenced in February 2016.
“These sentences send a clear message that drug and money laundering violations are serious crimes. IRS Criminal Investigation is proud to work with our law enforcement partners, by providing our financial investigative expertise, to stop the flow of illegal drugs into our communities,” stated Tamera Cantu, Acting Special Agent in Charge.
Law enforcement agencies participating in this investigation include: the Tennessee Bureau of Investigation; IRS, Criminal Investigation Division; Second District Judicial Drug Task Force; Kingsport Police Department; Russell County, Virginia Sheriff’s Office; and, LA IMPACT (Los Angeles Interagency Police Apprehension Crime Task Force), which includes the Hawthorne, Hermosa Beach, Alhambra, Pomona, Inglewood and Culver City Police Departments. Assistant U.S. Attorney Wayne Taylor represented the United States.
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Montgomery County Man Sentenced to Prison for Possession of Child PornographyRead the Press Release
COUNCIL BLUFFS, IA – On January 22, 2016, Mark A. Yeager, 61, of rural Emerson, Iowa, was sentenced by United States District Court Judge Stephanie Rose to 36 months in prison for possession of child pornography announced Acting United States Attorney Kevin E. VanderSchel. Yeager was ordered to serve 10 years of supervised release following his prison term and to pay $100 to the Crime Victims’ Fund.
Yeager pled guilty to the charge on September 1, 2015. According to the plea agreement, on April 16, 2014, investigators seized several computers and items of computer paraphernalia from Yeager’s residence. A forensic examination revealed images of child pornography on a thumb-drive seized from Yeager’s home.
This matter was investigated by the Iowa Division of Criminal Investigation, Iowa Internet Crimes Against Children Task Force, and the Montgomery County Sheriff’s Office. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Minneapolis Man Pleads Guilty to Human Trafficking of a ChildRead the Press Release
FARGO - U. S. Attorney Christopher C. Myers announced that on Jan. 25, 2016, Anthony Lamarr Sims, 21, a.k.a. Mar Mar, Minneapolis, Minn., pled guilty before U. S. District Judge Ralph R. Erickson to one count of Sex Trafficking of Children.
This case came to the attention of law enforcement after a Fargo Police Officer encountered the 15-year-old victim during a traffic stop on January 16, 2015. Following an investigation, it was discovered that Sims brought the victim from Minneapolis to Fargo for the purpose of prostitution. Before he traveled to Fargo on January 15, 2015, Sims directed others to post an advertisement on backpage.com wherein it was advertised that there were women available for commercial sex.
Sentencing has tentatively been set for April 18, 2016, at the U. S. District Court in Fargo. Sims could face a 10-year mandatory-minimum but up to a life sentence, lifetime supervised release, and/or a $250,000 fine.
This case is being investigated by the Fargo Police Department and the Department of Homeland Security - Homeland Security Investigations.
This case is being prosecuted by Assistant U. S. Attorney Jennifer Puhl.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by U.S. Attorneys’ Offices throughout the nation, Project Safe Childhood, in conjunction with Internet Crimes Against Children Task Force (ICAC), help federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems, or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations, and criminal prosecutions. Project Safe Childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Meth Traffickers Receive Lengthy Federal Prison SentencesRead the Press Release
FORT WORTH, Texas — Two North Texas men have been sentenced to lengthy federal prison terms for their roles in a methamphetamine distribution conspiracy that operated in North Texas for approximately two years, announced U.S. Attorney John Parker of the Northern District of Texas.
Eric Summers, 40, of Arlington, Texas, and David Godinez, 35, of Balch Springs, Texas, were sentenced on Friday by U.S. District Judge John McBryde to 360 months and 250 months, respectively, in federal prison. Summers’ sentence is to be served concurrently with pending state cases.
Each pleaded guilty in August 2015 to one count of conspiracy to possess with intent to distribute methamphetamine. According to documents filed in the case, since approximately 2012, Summers and Godinez received methamphetamine from co-conspirators and distributed it to others. All nine individuals charged in the conspiracy have pleaded guilty; five have been sentenced to federal prison sentences ranging from 250 months to 480 months.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the Texas Department of Public Safety investigated. Assistant U.S. Attorney Shawn Smith prosecuted.
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Media Advisory - Prosecutor of the Year PresentationRead the Press Release
The United States Attorney’s Office, District of South Dakota, will host the presentation of the Outstanding Prosecutor Award for the Midwest High Intensity Drug Trafficking Areas (HIDTA.)
Midwest HIDTA officials will make the presentation to Jennifer Mammenga, Assistant U.S. Attorney, with the District of South Dakota.
WHO: Randy Seiler: U.S. Attorney
Jennifer Mammenga: Assistant U.S. Attorney
Bob Hartman: Regional Coordinator - Midwest HIDTA
Jeff Stamm: Executive Director - Midwest HIDTA
David Mizell: Deputy Director - Midwest HIDTA
Bryan Gortmaker: Director - SD Division of Criminal Investigation
WHAT: Presentation of 2015 HIDTA Outstanding Prosecutor Award
WHEN: Thursday, January 28, 2016, at 9:00 a.m. CST.
WHERE: United States Attorney's Office
325 S. 1st Ave., Suite 300
Sioux Falls, SD 57104
NOTE: Media must enter through the third floor reception area. Media will be required to go through security and present a government-issued photo ID. Press inquiries regarding logistics should be directed to Ace Crawford at 605.341.1915.
Lynden Man Sentenced to Prison and Home Detention for Assault on Federal OfficersRead the Press Release
A Lynden, Washington man who was prosecuted in 2010 for interfering with a U.S. Border Patrol helicopter, was sentenced today to eight months in prison, four months of home detention and a $10,000 fine for assault on a federal officer, announced U.S. Attorney Annette L, Hayes. In July 2015, WAYNE P. GROEN, 46, intentionally drove his truck at a high rate of speed towards three U.S. Border Patrol agents who were working on the side of a road near GROEN’s home. At the sentencing hearing U.S. District Judge James L. Robart called GROEN’s conduct “deeply disturbing” and said it was “extremely dangerous, extremely stupid and extremely filled with the potential for dangerous harm to others.”
According to records filed in federal court, GROEN has had a series of escalating interactions with law enforcement over the last six years. In 2010, he was sentenced to 60 days in jail after he shined a spotlight at a CBP helicopter flying near his property, temporarily blinding the pilot who was forced to take precautions to avoid a crash. Even after that conviction and jail time, GROEN did not change his behavior and engaged in various aggressive interactions with law enforcement, culminating in the July 2015 event where he saw the agents working near his property. GROEN got into his truck for the sole purpose of trying to run the agents off the road. GROEN first swerved at high speed towards two agents on one side of the road, and then drove in the lane for on-coming traffic to swerve towards a third agent on the other side of the road. Fortunately, all three agents were able to jump out of the way.
GROEN has been in prison since he was arrested for the assault in August 2015. After GROEN pleaded guilty, he met with representatives of the U.S. Border Patrol to apologize for his conduct. In court today GROEN claimed he now understands the damaging impact of his conduct, and is hoping for a positive relationship with the Border Patrol. GROEN said he is working with his family to ensure they are co-operative with law enforcement in the future. Judge Robart sentenced him to 50 hours of community service as well as the prison term, home confinement and fine. Judge Robart suggested GROEN do some of that community service by telling groups in the Lynden community what he has learned from his criminal conviction.
The case was investigated by the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI) and the Whatcom County Sheriff’s Office. The case was prosecuted by former Assistant United States Attorney Jerrod Patterson and by Assistant United States Attorney Todd Greenberg.
Lockport Man Arrested, Charged with Bank Robbery, Attempted Bank RobberyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that David E. Foltz, 34, of Lockport, NY, was arrested and charged by criminal complaint with bank robbery and attempted bank robbery for incidents in Rochester and Brockport, NY. The charges carry a maximum sentenced of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Charles E. Moynihan, who is handling the case, stated that according to the complaint, on August 12, 2015, the defendant entered the Canandaigua National Bank and Trust on Alexander St. in Rochester. Foltz approached a teller and indicated that he wanted to open an account. After a short time, the defendant was taken into the office of a manager at which time he asked once again about opening an account as well as a safe deposit box. Foltz asked to go to the safe deposit box area but was told he could only go to the area if he purchased a box. At that time, the defendant lifted up his shirt revealing a black box with green buttons and black wires and a black handgun. Foltz stated “I’ve got this and this, so take me back to the vault.” The defendant then ordered the manager to get all of the $100’s, $50’s and $20’s from the tellers. After collecting the money, Foltz left the bank. After reviewing surveillance photos, law enforcement officers believe the defendant was wearing a bullet proof vest.
The complaint further states that on November 12, 2015, the defendant entered the Chase Bank branch on Main St. in Brockport. After waiting in line with several other customers, Foltz left the bank appearing agitated and rushed. The defendant returned approximately 30 minutes later and got back in to the teller line. Foltz once again inquired about opening an account and a safe deposit box. After adjusting his shirt, a bank employee noticed what appeared to be the handle of a gun and activated an alarm. The defendant asked twice if the alarm was activated but the employee did not answer. At that time, Foltz left the bank without any money. After reviewing surveillance photos, law enforcement officers believe the defendant was once again wearing a bullet proof vest.
According to the complaint, the defendant committed similar incidents on November 14, 2015 in Brooklyn, NY and December 4, 2015 in Erie, Pennsylvania.
Foltz made an initial appearance before U.S. Magistrate Judge Jonathan W. Feldman and is being held pending a detention hearing on January 27, 2016 at 3:30 p.m.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation’s Rochester Area Major Crimes Task Force, under the direction of Special Agent in Charge Adam S. Cohen; the New York State Police Troop E Canandaigua, Special Investigations Unit Buffalo, and Troop T Dunkirk; the Rochester Police Department, the Brockport Police Department, the New York City Police Department; the FBI New York Office; the Erie, PA Police Department; the FBI Pittsburgh Office; the Girard, Ohio Police Department; the FBI Cleveland Office; and the Lockport Police Department.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Local students learn the facts about drugs from U.S. Attorney’s OfficeRead the Press Release
WHEELING, WEST VIRGINIA – Area elementary school students learned the facts about drugs and alcohol today as part of National Drug Facts Week, recognized from January 25 through 31, 2016, United States Attorney William J. Ihlenfeld, II, announced.
Since 2010, the National Institute on Drug Abuse has coordinated National Drugs and Alcohol Facts Week, an annual series of events and promotional campaigns designed to connect young people with experts and resources to shatter common myths and misperceptions about substance abuse by providing factual, easy to understand information about illicit drugs. This year, the National Institute on Drug Abuse has partnered with the National Institute on Alcohol Abuse and Alcoholism to incorporate key information related to alcohol.
Today, United States Attorney Ihlenfeld facilitated an interactive presentation and discussion with fifth grade students at Bethlehem Elementary School in Ohio County, West Virginia. Ihlenfeld spoke with the students about a variety of topics, including commonly abused drugs, the impact of illicit substances on the human brain, the science behind substance abuse disorders, and the importance of recognizing and speaking up about the signs of addiction.
“Educating young people is a critical component in the ongoing effort to combat the drug problem facing West Virginia,” said Ihlenfeld. “Children are exposed to information about illegal drugs from a variety of sources and we want to empower them to make informed, healthy decisions based on accurate information.”
Throughout National Drug Facts Week, the United States Attorney’s Office will also utilize its @NDWVnews Twitter account to engage in a social media campaign to highlight important factual information regarding substance abuse and addiction, including the science of addiction, marijuana, prescription painkillers, heroin, and resources available for individuals struggling with substance abuse disorders.
Individuals interested in obtaining additional information about National Drug and Alcohol Facts Week or finding factual information on substance abuse and illegal drugs are encouraged to visit the National Institute on Drug Abuse website at www.drugabuse.gov. Individuals, educators, and other community organizations interested in scheduling substance abuse education initiatives and events in the Northern District of West Virginia are encouraged to contact Tara Tighe at the United States Attorney’s Office at (304) 234-0100.
Kansas Man Sentenced in Struggle That Exposed Marshals to PCPRead the Press Release
KANSAS CITY, KAN. – A Kansas man was sentenced Monday to two years in federal prison for causing a struggle in which U.S. Marshals were exposed to the drug PCP, U.S. Attorney Barry Grissom said.
Frederick E. Pendleton, 32, Kansas City, Kan., pleaded guilty to one count of assaulting, resisting or impeding a federal employee. In his plea he admitted the incident occurred Dec. 30, 2014, when U.S. Marshals attempted to arrest him for violating supervised release in a criminal case. The marshals went to Liberty Fruit Co., in Kansas City, Kan., where Pendleton was working. Pendleton resisted arrest, struggling with the marshals. During the struggle, a vial of PCP Pendleton was carrying in his waistband leaked, soaking his groin in the chemical. Two marshals suffered injuries on their hands that came into contact with the PCP. They were treated at a hospital for exposure to the drug.
PCP, also known as angel dust, can cause numbness, loss of motor control, convulsions and hallucinations.
The 24-month sentence will be consecutive to an 18-month sentence in the previous case.
Grissom commended the U.S. Marshals Service and Assistant U.S. Attorney Terra Morehead for their work on the case.
Justice Department Announces Leodan Privatbank AG Reaches Resolution Under Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that Leodan Privatbank AG (Leodan), reached a resolution under the department’s Swiss Bank Program.
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
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Make a complete disclosure of their cross-border activities;
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Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
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Cooperate in treaty requests for account information;
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Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
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Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
- Pay appropriate penalties.
Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of Leodan’s non-prosecution agreement, Leodan agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay a penalty in return for the department’s agreement not to prosecute Leodan for tax-related criminal offenses.
Leodan, which is organized as a corporation owned by private shareholders, is a small private bank that commenced doing business in September 2009. Leodan previously was known as PHZ Privat- und Handelsbank Zürich AG until it changed its name in August 2015 as part of a new business strategy. Leodan focuses on asset management, which encompasses advisory, brokerage and custodial services, for private and institutional clients. Leodan’s sole office is in Zurich, Switzerland. On Jan. 11, 2016, a meeting of Leodan’s shareholders was convened, and the shareholders voted to voluntarily wind-down Leodan’s banking operations.
Until June 2013, Leodan conducted a U.S. cross-border banking business that aided and assisted certain of its U.S. clients in opening and maintaining undeclared accounts in Switzerland and concealing the assets and income they held in these accounts from the U.S. government. Six private bankers at Leodan, including the Chief Executive Officer, serviced the 44 U.S.-related accounts at the bank. Leodan offered a variety of traditional Swiss banking services, including hold mail and code-name or numbered account services, that it knew could assist, and did in fact assist, U.S. clients in the concealment of assets and income from the Internal Revenue Service (IRS). Leodan opened and maintained accounts belonging to U.S. taxpayers who had left other banks being investigated by the department without ensuring that each such account was compliant with U.S. tax law. Leodan accepted instructions in connection with U.S.-related accounts not to invest in U.S. securities and not to disclose the names of U.S. clients to U.S. tax authorities, including the IRS. Leodan also processed significant securities or precious metals electronic transfers in relation to U.S.-related accounts at or around the time the clients’ accounts were closed, even though Leodan knew, or had reason to know, that some of the accounts contained undeclared assets.
Leodan opened and maintained undeclared accounts in the names of sham structures that were beneficially owned by U.S. taxpayers, while knowing, or having reason to know, that these structures were used by U.S. clients to help conceal their identities from the IRS. These structured accounts were non-U.S. domiciled entities, such as an offshore corporation or trust, which aided and abetted the clients’ ability to conceal their undeclared accounts from the IRS. These non-U.S. domiciled entities were established in the British Virgin Islands, Cyprus, Germany, Hong Kong, Liechtenstein and Panama. Because Swiss law requires Leodan to identify the true beneficial owner of structures on a document called a Form A, it knew that these were U.S. client accounts. Nonetheless, for certain U.S. client accounts, Leodan private bankers and other employees aided and assisted some of these U.S. clients in concealing these assets and income from the IRS.
On Dec. 22, 2010, the Chief Executive Officer and the Chief Operating Officer of Leodan met in the bank’s offices with an external asset manager (EAM #1) and two private bankers, who were not satisfied with their positions at UBS. EAM #1 presented his company and proposed a business relationship. During this meeting, EAM #1 informed Leodan’s management that he was under investigation in the United States. Later that same month and viewing a potential relationship with EAM #1 as a business opportunity, Leodan made a decision to hire the two private bankers commencing May 2011 and to enter into a business relationship with EAM #1.
Leodan opened 19 U.S.-related accounts for 13 clients of EAM #1. Of these 19 accounts, 16 were structured accounts held by non-U.S. domiciled entities. EAM #1 served as a director of his 16 structured accounts at Leodan, and EAM #1 had a power of attorney for the non-U.S. domiciled entity that held the account in its name. The relationship with EAM #1 brought more than 40 percent of the U.S.-related accounts to Leodan. EAM #1 was later indicted in the United States for conspiring with U.S. taxpayers to help them evade their U.S. tax obligations.
Between May 2011 and October 2012, Leodan made no efforts to ascertain the status of the criminal investigation against EAM #1. On Oct. 16, 2012, representatives of Leodan’s Board of Directors and Management Board met with representatives of FINMA. After discussing with FINMA the indictment of EAM #1, which had taken place more than 15 months earlier in July 2011, Leodan made the decision to terminate its relationship with EAM #1 and exit his clients. Between November 2012 and January 2013, Leodan transferred the 19 U.S.-related accounts of EAM #1 to other banks. The majority of the assets in these accounts were transferred per the clients’ instructions to one specific Swiss bank and two banks in Liechtenstein, and these transfers continued to aid some of those clients in evading their U.S. taxes.
During the period since Aug. 1, 2008, Leodan held a total of 44 U.S.-related accounts, which included both declared and undeclared accounts, with an aggregate peak of approximately $59.42 million in assets under management. Leodan will pay a penalty of $500,000.
In accordance with the terms of the Swiss Bank Program, Leodan mitigated its penalty by encouraging U.S. accountholders to come into compliance with their U.S. tax and disclosure obligations. While U.S. accountholders at Leodan who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of this non-prosecution agreement, noncompliant U.S. accountholders at Leodan must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division thanked the IRS and in particular, IRS-Criminal Investigation and the IRS Large Business & International Division for their substantial assistance. Acting Assistant Attorney General Ciraolo also thanked Kimberle E. Dodd, who served as counsel on this matter, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer and Senior Litigation Counsel Nanette L. Davis.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Jury Returns Guilty Verdicts Against Andover Attorney in $1 Million IRS ScamRead the Press Release
BOSTON – Following a two-week trial, an Andover attorney was convicted today of laundering more than $1 million in fraudulently-obtained IRS refund checks through several different bank accounts, including the attorney’s trust accounts.
R. David Cohen, 64, was convicted by a federal jury of on one count of conspiracy, 14 counts of conversion and receipt of stolen United States property, and one count conspiracy to commit money laundering. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for April 26, 2016.
The evidence at trial demonstrated a scheme in which individuals filed fraudulent tax returns with fictitious W-2 information, usually a name and social security number of a resident of Puerto Rico, whose residents are not required to file federal income tax returns. Once the fraudulent returns were accepted by the IRS, refund checks were sent to designated addresses in Lawrence, East Boston, and New York controlled by Cohen’s co-conspirators.
Beginning in October 2011, Cohen and his co-conspirators deposited over 100 fraudulently-obtained tax refund checks totaling over $1 million into banks to launder them through Cohen’s “Interest On Lawyer’s Trust Accounts” (IOLTA), as well as through bank accounts in the name of AD Professional Association, Inc. When questioned by bank officials about the large amount of U.S. Treasury checks Cohen was depositing and negotiating through his IOLTA and personal accounts, Cohen falsely claimed that the payees were his clients. When one bank requested proof concerning one of the IRS refund checks, Cohen provided a fake participation agreement and affidavit purporting to state that he had the client’s authority to deposit her IRS refund check into his IOLTA account.
The charge of conspiracy to convert and receive stolen United States property provides 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 gross loss or gain from the offense. The charge of conversion and receipt of United States property provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross loss or gain for each count from the offense. The charge of conspiracy to launder funds provides 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 gross loss or gain from the offense. 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 and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by S. Theodore Merritt and Ryan M. DiSantis of Ortiz’s Public Corruption Unit.
Judge Sentences New Kensington Man to 64 Months in Prison for Drug Law ViolationsRead the Press Release
PITTSBURGH - A resident of New Kensington, PA pleaded guilty and was sentenced in federal court to 64 months imprisonment on his conviction of violating the federal narcotics laws, United States Attorney David J. Hickton announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on William Hughley, Jr., 39, of New Kensington, PA.
According to information presented to the court, on Feb. 6, 2014, Hughley attempted to possess with intent to distribute a quantity of cocaine and carried a Smith and Wesson .357 caliber handgun during and in furtherance of that offense. Hughley also possessed with intent to distribute quantities of cocaine and heroin.
Prior to imposing sentence, Judge Diamond stated that the 64-month term was adequate to achieve the objectives of sentencing and deter others.
Assistant United States Attorney Leo M. Dillon prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Drug Enforcement Administration and the Pennsylvania State Police for the investigation leading to the successful prosecution of Hughley.
Jefferson City Attorney, Two Women Sentenced for Marriage Fraud ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., attorney, a Ukrainian national and an El Paso, Texas, woman were sentenced in federal court today for their roles in two marriage fraud conspiracies.
James Douglas Barding, 63, of Jefferson City, was sentenced by U.S. District Judge Stephen R. Bough to one month in prison, followed by one year of supervised release. The Court also ordered Barding to pay a $3,000 fine.
Barding pleaded guilty on Aug. 4, 2015, to enlisting a U.S. citizen to marry co-defendant Darya Chernova, 41, a citizen of Ukraine who currently resides in Chandler, Ariz. The purpose of the conspiracy was so that Chernova (with whom Barding was having an affair) could remain in the United States and seek citizenship.
Chernova, who pleaded guilty on Aug. 17, 2015, to her role in the marriage fraud conspiracy, was sentenced today to three years of probation (including 100 hours of community service) and ordered to pay a $1,000 fine.
Barding, an attorney and a married U.S. citizen, had a long-running affair with Chernova, who entered the United States on a student visa. During the marriage Chernova lived in Jefferson City and Barding was a frequent visitor and an overnight guest at her residence. Chernova’s residence was a couple of blocks away from the home Barding shared with his wife. Chernova has since moved out of the state and the two children she had with Barding now live with him.
Chernova received a bachelor’s degree in 2002 and an MBA from Lincoln University in 2005. She received a bachelor of science degree in mechanical engineering in 2010 and a master’s degree in mechanical and space engineering in 2011 from the University of Missouri.
Barding admitted that he told another co-conspirator, a friend identified as T.D., in late 2004 that, if he agreed to marry Chernova, he would not have to live with her and could get divorced after she gained sufficient status to remain in the United States. They were married on March 13, 2005, in Cape Girardeau, Mo., so that persons they knew in Cole County, Mo., would not be likely to find out about the marriage. Barding, who was a pilot and owned a plane, flew Chernova and T.D. to Cape Girardeau for the marriage ceremony and acted as a witness to their wedding.
Although they never lived together, Chernova and T.D. each filled out forms falsely claiming they shared a Jefferson City apartment. Chernova also submitted documents that purported to show they shared accounts and bills when, in truth, the majority of the submissions were in name only and no accounts or bills were actually shared. The only purpose for their marriage was so that she could evade immigration laws and remain in the United States with Barding. At various times Chernova made material false statements regarding her address and the true purpose of her marriage, which resulted in her being granted conditional permanent resident status on Nov. 27, 2008.
Approximately nine months and 16 days after the fraudulent marriage, a child was born to Barding and Chernova. A second child was born to them the following year, which she falsely claimed on immigration forms and on the birth certificate was the biological child of T.D., to prevent federal officials from suspecting the marriage was fraudulent.
Barding admitted that he met Chernova and T.D. on April 20, 2010, the day before Chernova and T.D. were scheduled to be questioned by representatives of the U.S. Citizenship and Immigration Service. The purpose of the meeting was to go over their testimony and Barding advised them to stick to their false stories regarding their fraudulent marriage. On April 21, 2010, Barding gave them a ride to the interview in St. Louis, Mo., where Chernova made false statements with Barding’s knowledge.
Soon afterward, Barding assured Chernova and T.D. that, if they stayed together and stuck to their stories, they would not get caught with their plan to deceive the government, and she could remain in the United States.
T.D.’s ex-girlfriend approached law enforcement and the Missouri Bar through an attorney, because she believed that Barding had committed a crime by getting T.D. to fraudulently marry Chernova for the sole purpose of allowing her to remain in the United States. The letters written by T.D.’s ex-girlfriend led to the initiation of investigations by the Missouri Bar’s Office of Chief Disciplinary Counsel (OCDC), local and federal law enforcement, and immigration authorities.
Also sentenced today, in a separate but related case, was Patricia Anne Ewalt, 64, of El Paso. Ewalt was sentenced by U.S. District Judge Stephen R. Bough to three years of probation and ordered to pay a $1,000 fine.
Ewalt pleaded guilty on Aug. 5, 2015, to her role in a conspiracy to commit marriage fraud so that co-defendant Oleksandr Nikolayevich Druzenko, also known as “Alex,” 35, a Ukrainian national residing in Jefferson City, could remain in the United States and seek citizenship. Druzenko also pleaded guilty to his role in the conspiracy and was sentenced on Nov. 18, 2015, to time served.
Druzenko and Ewalt were married on June 22, 2007, in Jefferson City. Druzenko entered the United States on a student visa in August 2004 and attended college in Missouri and elsewhere. He was employed at the Missouri Office of Administration in Jefferson City at the time of the Oct. 3, 2012, indictment.
In 2007, Druzenko’s student visa was expiring and he would soon have to leave the United States. After two failed attempts to persuade U.S. citizens to marry him so that he could remain in the country, Ewalt agreed to marry him.
Druzenko and Ewalt, along with Barding and Chernova, conspired to arrange a fraudulent marriage between Druzenko and Ewalt so that he could remain in the United States in violation of the law.
Druzenko and Ewalt falsely claimed that they resided together, when, in fact, Druzenko and Ewalt did not live with each other. Druzenko and Ewalt each admitted that they knowingly submitted documents that were materially false and would serve to deceive the U.S. Citizenship and Immigration Service into believing Druzenko’s marriage to Ewalt was genuine. They also admitted that they submitted fraudulent documents so that Druzenko could achieve resident status in the United States.
As a result of his fraudulent marriage to Ewalt, and the submission of false material statements to U.S. Citizenship and Immigration Service, Druzenko was allowed to remain in the United States and gained permanent resident status when in fact he should not have been allowed to remain in the country and did not lawfully qualify for any adjustment to status.
These cases were prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the U.S. Citizenship and Immigration Services and the Jefferson City, Mo., Police Department.
Inland Empire Man Who Threatened to Kill U.S. Forest Service Officer Investigating Trash Dumping Sentenced to 18 Months in PrisonRead the Press Release
LOS ANGELES – A man who repeatedly threatened to kill a United States Forest Service Law Enforcement Officer who contacted the man in relation to an investigation into trash dumped in the San Bernardino National Forest was sentenced today 18 months in federal prison.
Richard Latka, 57, of Hemet, was sentenced this morning by United States District Judge Dale S. Fischer.
Latka was found guilty by a federal jury in October of threatening to assault and murder the federal officer. According to the evidence presented at the trial, the Forest Service Officer went to a residence on Persimmons Lane in Hemet in October 2014 to investigate a large amount of trash that had recently been dumped in the nearby national forest. The officer encountered Latka in the front yard of the residence, and Latka reacted angrily when the officer said he wished to speak to the owner of the home. Latka then ran toward the officer with clenched fists. Believing that Latka intended to hit him, the officer drew his Taser and ordered Latka to stop. Latka stopped running but continued screaming at the officer. The officer tried to diffuse the situation by retreating to his car, but Latka followed the officer, continued to scream at him, and then pounded with both fists on the driver’s side window of the officer’s marked law enforcement vehicle. The officer drove away, but Latka pursued the officer in his own car, screaming that he was going to kill the officer. At one, Latka pulled up beside the officer and yelled, “Next time you’re dead!” Witnesses reported that Latka later returned to the home and screamed to them that he was going to kill the officer.
“This federal law enforcement officer faced serious threats of assault and murder. The officer did everything he could to de-escalate the situation,” said United States Attorney Eileen M. Decker. “Instead of de-escalating, Mr. Latka made repeated threats to harm the officer, who was acting both lawfully and prudently. As a result of his dangerous conduct, his unwillingness to comply with law enforcement, and his failure to accept responsibility for his crime, Mr. Latka has earned this prison term.”
The case against Latka was the product of an investigation by the United States Forest Service.
Individual Sentenced to Life in Prison for Drug TraffickingRead the Press Release
SAN JUAN, P.R. – Delfin Robles-Alvarez was sentenced to life in prison for his participation in a conspiracy to distribute cocaine for the purpose of unlawful importation, conspiracy to import cocaine, and conspiracy to commit money laundering, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The defendant went to trial and was found guilty by a federal jury on August 18, 2015.
Seven other co-conspirators had already pled guilty, two are awaiting sentence and one other defendant recently extradited is pending trial.
According to the indictment, throughout the year of 2005 and continuing up to 2014, the defendant, along with others, intentionally combined, conspired and agreed to possess with intent to import and distribute more than 5 kilograms of cocaine from Saint Martin, Netherlands Antilles into Puerto Rico.
During trial, the government presented video, audio, and telephone recordings of a Drug Enforcement Administration investigation into a drug trafficking organization responsible for importing over 2,000 kilograms of cocaine from Saint Martin, Netherlands Antilles, to Puerto Rico for distribution and sale as well as the laundering of funds in excess of 12 million U.S. dollars. The complex conspiracy involved numerous players with various roles, the smuggling of money and drugs both by sea and by air, and various methods to launder the proceeds from these illegal activities, including through the Puerto Rico Lottery System.
The case was prosecuted by Assistant United States Attorney Mariana Bauzá and Special Assistant United States Attorney Glenn Goetchius.
Indictment: Topeka Man Filed False ReturnsRead the Press Release
TOPEKA, KAN. – A Topeka tax preparer was charged in an indictment unsealed today with filing false tax returns, U.S. Attorney Barry Grissom said.
Maurice L. Stewart, 38, Topeka, Kan., is charged with 13 counts of filing false tax returns and 13 counts of wire fraud. The indictment alleges the government paid more than $479,000 in refunds to Stewart’s customers based on returns containing false information.
Stewart filed returns in clients’ names, falsely claiming the returns were self-prepared. He fraudulently reported that clients had suffered business losses. He filed returns electronically using the IP address of a Topeka business where he formerly was employed as an online IT technical services coordinator. He prepared returns using an online program where he had opened an account using another person’s name.
If convicted, he faces a maximum penalty of three years in federal prison and a fine up to $250,000 on each count of filing a false return, and a maximum penalty of 20 years and a fine up to $250,000 on each wire fraud count. Internal Revenue Service-Criminal Investigation investigated. Assistant U.S. Attorney Rich Hathaway is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Huntington woman pleads guilty in Detroit-based heroin schemeRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman pleaded guilty today in federal court to a drug charge for her role in a heroin conspiracy, announced Acting United States Attorney Carol Casto. Charon Chere Harris, 36, entered her guilty plea to maintaining a residence for the purpose of distributing heroin.
During May and June of 2015, Harris leased an apartment located at 2736 Rear 4th Avenue in Huntington. The terms of the lease provided that Harris would be the tenant of the apartment for a year beginning in May of 2015. However, Harris never resided in the apartment and actually leased it for the purpose of allowing Eddie William Randall, of Detroit, to reside there and distribute heroin that was transported from Detroit to the Huntington area.
On June 25, 2015, officers with the Huntington FBI Drug Task Force executed a search warrant at the apartment. During the search, officers seized approximately 40 grams of heroin, drug paraphernalia, a loaded 9mm pistol, and $13,030 in cash. During the search of another residence in Huntington on 25th Street, also identified through the investigation, officers seized approximately 280 grams of heroin and a loaded .45 caliber pistol. Randall admitted that he possessed the heroin from both residences for distribution and that he possessed the guns in an effort to protect himself from theft or robbery of heroin or cash.
Harris faces up to 20 years in federal prison and a fine of up to $500,000 when she is sentenced on April 25, 2016. Randall previously pleaded guilty and faces a mandatory minimum of 10 years and a maximum of life in federal prison when he is sentenced on April 11, 2016.
The investigation was conducted by the Huntington FBI Drug Task Force, the Huntington Police Department, and the Cabell County Sheriff’s Department. Assistant United States Attorney Joseph F. Adams is in charge of the prosecutions. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
These prosecutions are part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
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Honduran National Sentenced for “Illegal Re-Entry After Deportation by an Aggravated Felon”Read the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that Jose Zuniga-Amador, age 33, a Honduran citizen, was sentenced on January 22, 2016 to 30 months’ imprisonment for Illegal Re-Entry After Deportation By An Aggravated Felon.
Zuniga-Amador pled guilty to the federal charge on October 7, 2015. At his change of plea hearing in October, Zuniga-Amador admitted that he had been previously deported from the United States to Honduras on five separate occasions between 2000 and 2012.
In addition to the 30 month sentence on his new federal case, Zuniga-Amador’s supervised release was also revoked on a previous 2012 federal conviction for the same offense. Zuniga-Amador was sentenced to 10 months on his earlier case, to be served consecutively, for a total sentence of 40 months imprisonment. Upon release from federal prison, the Court noted that Zuniga-Amador will be placed in deportation proceedings.
The investigation which resulted in Zuniga-Amador’s arrest and conviction was conducted by the Immigration and Customs Enforcement Agency (ICE), and by the St. Clair County Sheriff’s Department.
The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Home Health Care Company Owner Pleads Guilty to Income Tax Fraud, Health Care Fraud & Money Laundering ChargesRead the Press Release
COLUMBUS, Ohio – JoAnna M. Ochieng, 67, of Columbus, Ohio, pleaded guilty in U.S. District court today to one count each of income tax evasion, conspiracy to commit health care fraud and money laundering relative to a scheme to defraud Medicaid of $436,305.69.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Lamont Pugh, Special Agent in Charge, Department of Health and Human Services Office of Inspector General, Ohio Attorney General Mike DeWine and Guy A. Ficco, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), announced the plea entered today before U.S. District Court Judge Gregory L. Frost.
According to court documents, beginning in 2003, Ochieng owned Healthy Solutions Home Health Services (Healthy Solutions) which provided nursing and home health services to Medicaid recipients and their families. Since 2003, Healthy Solutions has operated out of six locations, including Columbus, Bexley, Washington Courthouse and Hillsboro, Ohio.
Between November 2011 and March 2013, Ochieng conspired with others employed at Healthy Solution to defraud the Ohio Medicaid program by making false statements in connection with the delivery of, and payment for, health care benefits by means of fraudulent representations.
Specifically, Healthy Solutions employees, under the direction of Ochieng, instructed parents who were providing home health care services to their children to “swap” time sheets with other parents who were also providing home health care services to their children. This would give the false appearance that parents were providing home health services to children other than their own. Under the Medicaid Program, a home health aide cannot be the parent, foster parent, or legal guardian of a patient who is under 18 years of age.
In addition, in order to maximize the amount of reimbursement paid by the Medicaid Program, Ochieng and other co-conspirators working at Healthy Solutions instructed Healthy Solution nurses to submit Skilled Nursing Visit Notes that falsely reflected the hours nurses were providing home health services. Specifically, the nurses were instructed to “split shifts” on their time sheets to make it appear that they made three or more separate home visits, when in fact they made no more than two. By falsely representing the hours of service, Healthy Solutions received inflated payments from the Medicaid Program.
The fraudulent claims submitted by Healthy Solutions, under the direction of Ochieng, resulted in a loss to the Medicaid Program of $436,305.69.
During 2012 and 2013, Healthy Solutions received payments from the Medicaid Program for nursing and home health services totaling $6,037,659.76 and $3,056,866.23, respectively. Knowing that taxes were due and owing to the IRS for the proceeds from her business operations at Healthy Solutions, Ochieng willfully failed to file income tax returns and pay taxes on those proceeds for the 2012 and 2013 income tax years, resulting in a tax loss of $274,205.55.
Funds received by Ochieng and Healthy Solutions as part of the health care fraud scheme were deposited into a local bank account and comingled with other income from Medicaid. In February 2013 and March 2013, as part of her plan to evade the payment of income taxes, Ochieng electronically transferred $600,000 and $410,000, respectively, to an account in a nominee name in the Turks and Caicos Islands. Each transaction involved at least $10,000 of funds derived from the health care fraud scheme.
Conspiracy to commit health care fraud and money laundering are crimes punishable by up to 10 years in prison. Income tax evasion is a crime punishable by up to five years imprisonment.
In addition, Ochieng agreed to forfeit $1 million held in a trust account in the Turks and Caicos Islands.
“The Medicaid Fraud Control Unit within my office is dedicated to working with federal authorities to investigate and prosecute those who manipulate the health care system to collect money that they are not entitled to,” said Attorney General DeWine. “Those who believe that they can outsmart the investigators trained to identify this type of fraud should think again.”
"Ochieng’s attempt to evade taxes by hiding income and failing to file income tax returns was a theft from the American public," said Guy A. Ficco, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “The conduct detailed in this case is egregious. Health care fraud affects every American and contributes to the rising cost of health care and degrades the integrity of our health care system and legitimate patient care.”
U.S. Attorney Stewart commended the cooperative law enforcement investigation, as well as Assistant U.S. Attorneys Kenneth F. Affeldt and Daniel A. Brown and Maritsa Flaherty with the Ohio Attorney General’s Office, who are prosecuting the case.
Georgia Tax Return Preparer Charged in Refund Fraud SchemeRead the Press Release
An Atlanta, Georgia tax return preparer self-surrendered earlier today after being indicted by a federal grand jury on Dec. 1, 2015 for 10 counts of wire fraud, 10 counts of aggravated identity theft and 10 counts of filing false claims against the United States, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney John A. Horn for the Northern District of Georgia.
Cheryl Singleton, 28, owned and operated Advanced Tax Services, a tax return preparation business with multiple offices in the Atlanta area, according to the indictment and other information presented in court. Singleton’s initial court appearance was earlier today in U.S. District Court for the Northern District of Georgia. Beginning in 2012, Singleton is alleged to have participated in a scheme with others to obtain tax refunds by filing false federal income tax returns. The indictment states that as part of this scheme, Singleton falsely advised individuals that they could apply for a government stimulus payment by providing their personal identification information to Advanced Tax Services. Singleton and the other participants in the scheme are also accused of using this personal identification information to electronically file false income tax returns in those individuals’ names, without their knowledge or consent. These tax returns each claimed fraudulent tax refunds of at least $1,000.
If convicted, Singleton faces a statutory maximum sentence of 20 years in prison for each wire fraud count, five years in prison for each false claims count and a mandatory minimum sentence of two years in prison for the aggravated identity theft counts, which will run consecutively to any other prison term she receives. Singleton also faces substantial monetary penalties and restitution.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Horn commended special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorney Melanie A. Smith of the Tax Division and Assistant U.S. Attorney Thomas J. Krepp of the Northern District of Georgia, who are prosecuting the case.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Fresno Man Sentenced to 5 Years in Prison for Methamphetamine TraffickingRead the Press Release
FRESNO, Calif. — Jose Nicolas Olivas Zazueta, 35, of Fresno, was sentenced today by United States District Judge Lawrence J. O'Neill to five years in prison for possession with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, on August 2, 2014, Zazueta and co-defendant Jorge Hernandez, 35, of Fresno, brought six pounds of methamphetamine to a parking lot on east Kings Canyon Road, in Fresno, where they were arrested and the methamphetamine was seized. Hernandez was sentenced to five years by Judge O’Neill on January 19, 2016.
This case was the product of an investigation by the United States Drug Enforcement Administration and the Federal Bureau of Investigation. Assistant United States Attorney Michael S. Frye is prosecuting the case.
Four Plead Guilty in Dexter Area Drug Conspiracy CaseRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that John Williams, a/k/a “John-John”, 39, of Stetson, Maine, Cynthia Williams, a/k/a “Cindy”, 43, of Stetson, Maine, Whitney Chadbourne, 22, of Harmony, Maine and Corey Pomerleau, 24, of Harmony, Maine, pleaded guilty today at the U.S. District Court in Bangor to conspiring to distribute and possess with the intent to distribute controlled substances.
According to court records, between January 1, 2002 and November 22, 2014, there existed a conspiracy to distribute and possess with the intent to distribute oxycodone and five kilograms or more of cocaine. The drugs were being brought into the Dexter, Maine area from Rhode Island and then were being distributed by members of the conspiracy. John Williams, Cindy Williams and Whitney Chadbourne participated in the conspiracy during all or a portion of its existence. The Williams were involved in the distribution of the drugs in the Dexter area, whereas Chadbourne was involved in transporting the drugs to Maine from Rhode Island.
In addition, between February 10, 2011 and November 22, 2014, there existed a related conspiracy to distribute and possess with the intent to distribute oxycodone only. The drugs were being brought into the Dexter, Maine area from Rhode Island and then were being distributed by members of the conspiracy. Corey Pomerleau participated in the conspiracy during a portion of its existence by distributing oxycodone in the area.The conspiracy counts carry a maximum penalty of up to 20 years imprisonment, a $1,000,000 fine and at least three years supervised release and up to life supervised release.
The case was investigated by the U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency, with assistance provided by the Dexter Police Department, the Penobscot County Sheriff’s Office and the Piscataquis County Sheriff’s Office.Four Individuals Involved in O’Brien County Meth Conspiracy Sentenced to Federal PrisonRead the Press Release
On January 25, 2016, the last of two men and two women who conspired together to distribute methamphetamine was sentenced to federal prison.
Isaac Esquivel, 37, from Sanborn, Iowa; Mackenzie Jellema, 31, from Sioux City, Iowa; Joe Leal, 49, from Hartley, Iowa; and Valerie Ortega, 30, from Sanborn, Iowa, each received prison terms after guilty pleas to conspiracy to distribute methamphetamine.
At the guilty pleas, each admitted their involvement in a conspiracy that distributed more than 50 grams of actual (pure) methamphetamine in the O’Brien County, Iowa area. In total, law enforcement made undercover purchases and seizures from the group totaling 271.78 grams of methamphetamine.
Ortega and Esquivel were sentenced in Sioux City by United States District Court Judge Donald E. O’Brien, and Leal and Jellema were sentenced by United States District Court Judge Mark W. Bennett. Esquivel was sentenced to 36 months’ imprisonment and a term of supervised release of two years. Jellema was sentenced to 48 months’ imprisonment; Leal was sentenced to 81 months’ imprisonment and Ortega was sentenced to 42 months’ imprisonment. A special assessment of $100 was imposed for each. Jellema, Leal and Ortega must each also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by Iowa Department of Narcotics Enforcement, Spencer Iowa Police Department, Clay County Iowa Sheriff’s Office, O’Brien County Iowa Sheriff’s Office, Sheldon Iowa Police Department, Iowa Great Lakes Drug Task Force and the Southwest Iowa Narcotics Enforcement Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 14-4052. Follow us on Twitter @USAO_NDIA.
Former Treasurer Sentenced to Two Years for Stealing Money from Charlotte Area Non-profit EmployerRead the Press Release
CHARLOTTE, N.C. – The former Treasurer of a Charlotte area non-profit organization was sentenced on Tuesday, January 19, 2016, to 24 months in prison for stealing more than $344,262 from his employer, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Floyd Kevan Weaver, 53, of Charlotte, was also sentenced to two years of supervised release and was ordered to pay $344,262.71 as restitution. Weaver pleaded guilty to one count of uttering counterfeit and forged securities in October 2015.
U.S. Attorney Rose is joined in making this announcement by Thomas L. Noyes, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service.
According to filed court documents and court proceedings, from 2000 to 2013, Weaver was employed by a Charlotte-area non-profit organization. As the non-profit’s elected Treasurer, Weaver was responsible for the organization’s financial affairs and acted as custodian of its funds. Weaver previously admitted that from 2008 to 2013, he engaged in a scheme to defraud his employer by fraudulently diverting the organization’s funds for his personal benefit. According to court records and the sentencing hearing, Weaver forged the name of one of the non-profit’s officers on the organization’s bank checks and deposited the forged checks into his own bank account. He concealed the fraud by logging the stolen funds as travel expenses, mileage reimbursement, office supplies and postage. According to court records, Weaver forged approximately 116 checks totaling more than $326,545, and also used the non-profit’s debit card to steal more than $17,717 for his personal use. Court documents show that Weaver used the stolen money to purchase jewelry and a car, among other things.
Weaver will be ordered to report the Federal Bureau of Prisons to begin serving his sentence. All federal sentences are served without the possibility of parole.
The investigation was handled by the USPIS. The prosecution for the government is being handled by Assistant United States Attorney Jenny Sugar of the U.S. Attorney’s Office in Charlotte.
Former Police Officer Sentenced for Deprivation of Civil RightsRead the Press Release
PITTSBURGH - A Fayette County resident has been sentenced in federal court to three years of probation, the first six months of which are to be served on home detention, on his conviction of Deprivation of Civil Rights, United States Attorney David J. Hickton announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Norman L. Howard, 43, of Grindstone, Pa. As part of the disposition of Howard’s case, Howard agreed that his judgment would include that he permanently relinquish his Pennsylvania law enforcement credentials and to never seek employment through law enforcement in the future.
According to information presented to the court, on or about May 26, 2013, Howard, a police officer of the Redstone Township Police Department, willfully deprived an individual identified as D.N. by punching D.N. in the face, without justification, thereby causing bodily injury to D.N. The indictment further alleged that on or about May 26, 2013, Howard made false statements in a police report regarding the incident, claiming that the man had shoved him and had resisted arrest.
Assistant United States Attorneys Cindy K. Chung and Shaun E. Sweeney prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Howard.
Former Doctor Sentenced for Illegally Prescribing Pain MedicationRead 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 Pravin Mehta, 78, of Amherst, NY, who was convicted of conspiring to illegally dispense controlled substances from his medical office by issuing prescriptions other than for a legitimate medical purpose and not in the usual course of professional practice, was sentenced to 24 months in prison by Senior U.S. District Judge William M. Skretny. The defendant was also ordered to pay a fine totaling $500,000 in addition to $125,000 previously forfeited in this case.
“In abusing his medical license, this defendant did more than harm those who relied upon him for treatment and healing,” said U.S. Attorney Hochul. “His unprofessional and disgraceful conduct turned those patients into virtual zombies, and contributed to the massive opioid crisis our entire community continues to experience to this day. Let today’s sentence be a message that we will continue to prosecute drug dealers of every type, whether they wear overcoats or white coats, and peddle their commodities on street corners or in doctor’s offices.”
Drug Enforcement Administration Special Agent in Charge James J. Hunt stated, “The 2011 investigation into crimes conducted by Dr. Mehta, and others in his practice, spearheaded similar investigations into rogue doctors throughout the country. Doctors who illegally prescribe pain medication for non-medical purposes transform their medical offices into drug dealers’ stash houses. Today’s sentencing fares a reminder of the consequences that face those rogue doctors who fuel the opioid epidemic we currently face by their illegal diversion of prescription medication.”
Assistant U.S. Attorney John E. Rogowski, who handled the case, stated that Mehta is a former physician who practiced medicine in the City of Niagara Falls. The defendant surrendered his medical license immediately after being first charged in this case in January 2011.
Mehta wrote prescriptions for narcotic pain medications, such as fentanyl, hydrocodone, oxycodone, and oxymorphone, for individuals without conducting legitimate medical examinations. In 2010, the Government sent four individuals who were part of the investigation to see the defendant at his office on 10 different occasions. On all but the last visit, Mehta issued prescriptions for controlled substance pain medication at the request of the individuals without conducting a thorough medical exam.
In addition, on four separate occasions between December 2007 and January 2010, prior to leaving the country for multiple weeks, the defendant signed blank prescriptions and directed his office manager, who was not a trained medical provider, to complete the prescription by writing in a patient’s name, type, amount, and dosage of controlled substances whenever a patient came to the office in his absence seeking pain medication. In fact, Mehta’s medical staff did not include any licensed medical professionals, such as other doctors, physician assistants, registered nurses, or licensed practical nurses.
The defendant was arrested in January 2011 along with 13 others. All 14 individuals have now been convicted and sentenced.
The sentencing is the result of an investigation by Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the Niagara Falls Police Department, under the direction of Superintendent Bryan DalPorto, the Niagara County Sheriff's Drug Task Force under the direction of Sheriff James Voutour, the New York State Medicaid Fraud Control Unit, the New York State Bureau of Narcotic Enforcement, and the Internal Revenue Service, Criminal Investigation Division, New York Field Division under the direction of Special Agent in Charge Shantelle P. Kitchen.
Former CEO of Summit Wealth Management and Business Partner Indicted in a Multi-Million Dollar Fraud SchemeRead the Press Release
ATLANTA – Angelo Alleca and Mark Morrow have been arraigned on charges of orchestrating a multi-million dollar investment fraud scheme. The Defendants marketed several funds that were supposed to invest in certain assets/investments, such as hedge funds managed by a professional money manager or mortgage debt. According to the new indictment, they instead used the money to pay redemptions to earlier investors, to acquire and operate several businesses, and to pay personal expenses.
“These defendants are charged with stealing millions of dollars from unsuspecting investors with false promises,” said U. S. Attorney John Horn. “Their misrepresentations on how funds would be invested serves as a reminder that citizens need to be careful when choosing where to invest their hard earned money.”
“The FBI is pleased with the role that it played in bringing this matter forward for prosecution. While financial restitution to the victim investors remains an issue for another day, it is hoped that these federal criminal charges will provide some solace to those victims,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the indictment, and other information presented in court: From on or about 2004 until 2012, Alleca acted as the President and Chief Operating Officer of Summit Wealth Management, an investment adviser headquartered in Atlanta, Georgia. During that time, Alleca started several funds and falsely misrepresented that money would be invested in hedge funds and debt securities and managed by professional investment managers.
Instead of investing the money as advertised, Alleca allegedly lost a substantial portion of the funds through securities trading. In addition, Alleca improperly used the funds to operate Summit Wealth Management, make interest payments and redemptions to earlier investors, and to pay personal expenses. Morrow served as the administrator of several of the funds. During the course of the scheme, fraudulent account statements were mailed to investors showing gains, when there was no money in the funds.
In 2007, Morrow established Detroit Memorial Partners LLC, which sold promissory notes to acquire and manage cemeteries in Michigan. The indictment alleges that between 2007 and 2012, Morrow and Alleca marketed promissory notes in Detroit Memorial Partners to Summit Wealth clients in Atlanta, and throughout the country. Detroit Memorial Partners offering documents contained material misrepresentations, including that the notes would be secured by real property when in fact no security interest was ever recorded with respect to the notes. Moreover, shortly after receiving the note proceeds, Alleca and Morrow, diverted funds for improper purposes including, making interest payments and redemptions to investors in Summit Wealth Management funds and personal expenses. The indictment alleges that as a result of the Defendants fraud schemes, over 300 investors lost over $35 million dollars invested in the Summit Funds and Detroit Memorial Partners LLC.
Alleca and Morrow formed Summit Capital Trading, a registered investment advisor and broker dealer in New York and Ohio in 1997. Alleca led the Buffalo, New York office and Morrow ran the Cincinnati and Cleveland, Ohio offices.
Angelo Alleca, 46, of Buffalo, New York, and Mark Morrow, 54, of Cincinnati, Ohio, were indicted on December 15, 2015.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Jeffrey Brown is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
First Defendant to be Sentenced in Methamphetamine Distribution Conspiracy is Sentenced to 292 Months in Federal PrisonRead the Press Release
WICHITA FALLS, Texas — The first defendant to be sentenced for his role in a methamphetamine distribution conspiracy that operated in Wichita Falls, Texas, from approximately March 2014 to August 2015, was sentenced this morning by U.S. District Judge Reed C. O’Connor to a lengthy federal prison term, announced U.S. Attorney John Parker of the Northern District of Texas.
James Anthony Streadwick, 54, of Wichita Falls, was sentenced to 292 months in federal prison. He pleaded guilty in October 2015 to one count of conspiracy to distribute five grams or more of methamphetamine. Eleven of the 13 defendants charged in the case have pleaded guilty to that offense; two defendants remain fugitives. Each defendant faces a statutory penalty of at least five years and up to 40 years in federal prison and $5 million fine. Sentencing hearings are set for February 22, 2016.
According to documents filed in Streadwick’s case, between September 2014 and December 3, 2014, Streadwick received quantities of methamphetamine from supply sources in Dallas and Wichita Falls, typically obtaining the methamphetamine in multi-ounce quantities. He then sold quantities of methamphetamine to customers in Wichita Falls.
Streadwick further admitted that on December 3, 2014, when a search warrant was executed at his residence, law enforcement seized digital scales, small plastic bags, notes that reflected drug-trafficking transactions, firearms and quantities of methamphetamine.
The Wichita County District Attorney’s Office, the Wichita Falls Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Mary Walters prosecuted the case.
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Final Defendant Pleads Guilty in Connection with Extensive Counterfeit Media Conspiracy in Central ValleyRead the Press Release
FRESNO, Calif. — Miguel Angel Gomez Rebolledo, 35, of San Jose, pleaded guilty today before U.S. District Judge Lawrence J. O’Neill to conspiracy to commit criminal copyright infringement and related crimes, United States Attorney Benjamin B. Wagner announced.
Gomez Rebolledo was the last defendant to plead guilty in connection with an extensive counterfeit media scheme involving a San Jose-based warehouse and counterfeit media distribution and resale activity throughout the Central Valley of California.
According to court documents, on March 13, 2015, warehouse and office space used by the defendants was found to contain more than 120,000 counterfeit music CDs and movie DVDs. The counterfeit materials included movie titles that were in theatrical release and not yet available for legitimate sale on DVD. The counterfeit CDs and DVDs were distributed by the defendants for resale in Atwater, Modesto, Stockton, Turlock, and throughout California. Gomez Rebolledo pleaded guilty to his role in the scheme, which involved manufacturing counterfeit motion picture DVDs for distribution and resale at the office space used by Gomez Rebelledo and his co-conspirators.
The status of the remaining co-defendants in the case is as follows:
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On December 7, 2015, co-defendants Efrain Lozada Rosas, and Victor Flores Fuentes, of San Jose, and Jesus Cuevas Lopez, of Southern California, pleaded guilty to conspiracy to commit criminal copyright infringement and related crimes. They will be sentenced on April 11, 2016.
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On December 14, 2015, co-defendant Antonio Morales, of San Jose, pleaded guilty to conspiracy to commit criminal copyright infringement and related crimes. He will be sentenced on March 28, 2016.
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On December 7, 2015, co-defendant Edgar Hipatl Rodriguez, of San Jose, was sentenced by Judge O’Neill to 27 months in prison for conspiracy to commit criminal copyright infringement and related crimes.
This case is the product of an investigation by the Sacramento Intellectual Property Rights Task Force composed of the Federal Bureau of Investigation and the Sacramento County Sheriff’s Office. Assistant U.S. Attorney Henry Z. Carbajal III is prosecuting the case.
The defendants pending sentencing face a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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Federal, State and Local Law Enforcement Collaborate to Combat Slavery and Human TraffickingRead the Press Release
CEDAR RAPIDS, IA – United States Attorney Kevin W. Techau joined forces with representatives from Homeland Security Investigations (HSI), Marion Police Department, Iowa Department of Transportation Motor Vehicle Enforcement and Cedar Rapids Gives to reinforce their commitment to combat all forms of slavery and to assist victims of this heinous crime.
President Barack Obama proclaimed January as National Slavery and Human Trafficking Prevention Month. In his proclamation, the President stated that all nations have a part to play in keeping our world safe for all people and that this month we should recognize the victims of trafficking. He further stated, “Let us resolve to build a future in which its perpetrators are brought to justice and no people are denied their inherent human rights of freedom and dignity.”
Last year the United States Attorney’s Office partnered with Iowa DOT Motor Vehicle Enforcement to bring awareness to this issue. They engaged truck drivers at two Waterloo truck stops to discuss the criminal enterprise of human trafficking. This was in support of the Truckers Against Trafficking (or TAT) initiative. TAT is a nonprofit organization created to bring education, awareness and empowerment to truck drivers across the nation to spot and report signs of human trafficking.
U.S. Attorney Kevin W. Techau stated during a press conference held at the Marion Police Department, “Human trafficking threatens lives globally and even happens in our state. It happens every minute of every day. Traffickers are sophisticated and use force, fraud or coercion to lure victims and then force them into labor or commercial sexual exploitation. These vulnerable victims need to be identified and rescued.” He further noted, “In addressing this scourge, we work best when we work together, and I thank our federal, state and local partners and Cedar Rapids Gives for joining us today to address this issue, not only during the investigative stage, but also providing the essential services after the investigation is complete.” Techau offered a special thank you to Christi Geisler, herself a victim-survivor of human trafficking, for sharing her thoughts.
Highlighted during the press conference was the U.S. Department of Homeland Security’s (DHS) Blue Campaign. “HSI investigates international and domestic cases of human trafficking and provides support to victims,” said Acting Special Agent in Charge William Lowder of HSI St. Paul. “Our special agents accomplish this through the use of our unique authorities and expertise stripping away the traffickers’ assets and profit incentives, and working with U.S. and foreign partners to attack networks worldwide and working in partnership with non-governmental organizations to identify, rescue, and provide assistance to trafficking victims.” Informational material used in the Blue Campaign was made available. To learn more visit: http://www.dhs.gov/blue-campaign.
Marion Police Chief Harry R. Daugherty stated, “We recognize that this crime is not confined by geo/political boundaries.” He further noted that, “This is why the Marion Police Department has taken a pro-active approach by crossing jurisdictional lines and working with other agencies, to bring justice to victims and by holding offenders responsible for their crimes.”
Chief David Lorenzen with Iowa DOT Motor Vehicle Enforcement serves on the Truckers Against Trafficking (TAT) national board and has been active in addressing this issue within the state. “It was common sense that thrust Iowa into becoming active in fighting this hideous criminal nightmare. Our officers take this initiative seriously and interact with trucker drivers and concerned citizens daily. We believe this program will have a positive impact.”
Lorenzen recounted a recent tragic trafficking event involving a woman taken from the Des Moines area and trafficked at a truck stop in Virginia. A truck driver working for a company training its drivers with TAT materials made a call to authorities when he saw something suspicious. His awareness was the result of his company’s culture and its commitment to train their drivers to be on the lookout for possible trafficking. As a result of that call, the victim was rescued and the traffickers, also from the Des Moines area, were arrested and eventually convicted and sentenced to 40 years in prison. Chief Lorenzen concluded his comments stating, “We welcome the opportunity to enhance partnerships as we move forward.” Visit TAT at: http://www.truckersagainsttrafficking.org.
The President of Cedar Rapids Gives, Teresa Davidson, an NGO in Iowa with a mission to provide prevention, rescue and restoration to victims and survivors of sex and labor human trafficking, stated, “While it is critical to have law enforcement and legislation to investigate, rescue and prosecute these cases, it is also important to provide the specific and unique services survivors of human trafficking require.” Cedar Rapids Gives is in the process of changing its name to “Iowa Stops Traffik” and is applying for a government grant to increase the amount of support and services it can provide human trafficking survivors in seven Iowa counties around Cedar Rapids. The organization’s website is: www.cedarrapidsgives.org.
Christi Geisler, herself a victim-survivor of human trafficking, spoke about how she was victimized and the signs law enforcement should look for when they come across a possible victim who might be too scared to seek help. She also noted how these victims can be further victimized within the judicial system when there is a lack of understanding. Geisler stated she was lucky to have a strong family support system when she was rescued, but not all victims have such support. Governmental and private support is essential for a successful return to normal life.
To learn more about victimization of this heinous crime and services that are available, visit DOJ’s Office of Justice Programs “Office for Victims of Crime” found at http://ovc.ncjrs.gov/humantrafficking/, and public service announcements:
http://www.dhs.gov/video/out-shadows-psa
http://ovc.ncjrs.gov/humantrafficking/publicawareness.html
Follow us on Twitter @USAO_NDIA.
Federal Jury Convicts Tinley Park Physician in Medicare Fraud SchemeRead the Press Release
CHICAGO — A physician at Chicago-based Mobile Doctors was convicted on federal fraud charges today for falsely certifying patients as confined to their homes as part of a scheme to defraud Medicare.
After a four-day trial in federal court in Chicago, the jury convicted DR. BANIO KOROMA on two counts of healthcare fraud and two counts of making false statements related to health care matters. Dr. Koroma, 66, of Tinley Park, worked for Mobile Doctors, which contracted with physicians to arrange in-home visits for patients in Illinois, Michigan, Indiana and other states. Mobile Doctors, which closed in 2013, was located at 3319 N. Elston Ave., in Chicago.
Evidence at trial revealed that Dr. Koroma certified patients as confined to their homes when they were not actually home-bound and did not require the skilled-nursing services that he had ordered. One of the patients testified at trial that she was able to leave her home and could visit her primary-care physician for office visits, even though Dr. Koroma was certifying her as confined to the home. Dr. Koroma’s false certifications cost Medicare more than $45,000 for this patient alone, according to evidence at trial.
The healthcare fraud counts each carry a maximum sentence of ten years in prison, while the false statement counts are each punishable by up to five years. U.S. District Judge John J. Tharp Jr. scheduled a sentencing hearing for June 2, 2016, at 1:00 p.m.
The investigation was carried out by the Medicare Fraud Strike Force, which consists of agents from the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, and prosecutors from the U.S. Attorney’s Office and the Justice Department’s Fraud Section. The strike force is part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative between the Department of Justice and HHS to prevent fraud and to enforce anti-fraud laws around the country.
The investigation previously resulted in the conviction of DIKE AJIRI, who served as Mobile Doctor’s chief executive officer. Ajiri, of Wilmette, pleaded guilty in October 2015 to one count of healthcare fraud. He admitted fraudulently increasing Medicare bills for in-home treatment that was shorter and less complicated than the claims indicated. The improper billing – known as “upcoding” – defrauded Medicare and the Railroad Retirement Board of approximately $1,854,000, according to Ajiri’s plea agreement. Ajiri faces a maximum sentence of ten years in prison when Judge Tharp sentences him on April 19, 2016, at 2:00 p.m.
The jury verdict against Dr. Koroma 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; and Lamont Pugh III, Special Agent-in-Charge of the Chicago Region of the U.S. Department of Health and Human Services Office of Inspector General. The Railroad Retirement Board Office of Inspector General is also participating in the case.
The government is represented by Assistant United States Attorneys Stephen Chahn Lee and Eric Pruitt. To report health care fraud or to learn more about HEAT, logon to: StopMedicareFraud.gov.
Federal Court Bars Florida Man from Owning Tax Preparation Business and from Preparing Federal Tax Returns for OthersRead the Press Release
A Former Franchisee of “LBS Tax Services” and Owner of “AWA Tax Services” Allegedly Operated Fraudulent Tax Preparation Businesses
A federal court in Miami, Florida, has permanently barred Wilfrid Antoine of Lake Worth, Florida, from preparing federal tax returns for others and from owning or operating a tax return preparation business, the Justice Department announced today.
The civil injunction order, to which Antoine agreed, was signed by Judge Donald M. Middlebrooks of the U.S. District Court for the Southern District of Florida.
The United States filed its civil injunction and disgorgement complaint against Antoine in September 2014. The complaint alleged that return preparers in Antoine’s businesses targeted primarily low-income customers with deceptive and misleading advertisements, prepared and filed fraudulent tax returns to fraudulently increase their customers’ refunds, and profited through unconscionable, exorbitant and often undisclosed fees—all at the expense of their customers and the U.S. Treasury.
According to the complaint, Antoine owned and operated AWA Tax Inc., a corporation that operated seven tax return preparation stores in Florida. Those stores allegedly operated as “LBS Tax Services” in 2013 and began operating as “AWA Tax Services” in 2014. The complaint alleged that Antoine’s preparers engaged in fraudulent activity, including:
- Falsely claiming the Earned Income Tax Credit;
- Claiming improper filing status (i.e. head of household for married individuals);
- Fabricating businesses and related business income and expenses;
- Fabricating Schedule A deductions, such as unreimbursed employee business expenses;
- Falsely claiming the fuel tax credit; and
- Charging deceptive and unconscionable fees;
According to the complaint, Antoine was a franchisee of LBS Tax Services. Since September 2014, the United States has filed nine similar lawsuits in Florida against the former LBS Tax Services franchisor Walner Gachette and 12 former LBS franchisees and managers, many of whom rebranded and have continued to operate tax preparation businesses. The franchisees and managers include Douglas Mesadieu, Jean Demesmin, Kerny Pierre-Louis, Demetrius Scott, Jason Stinson, Tonya Chambers, Jehoakim Victor, Lauri Rodriguez, Milot Odne, Alexander Baraz and Christopher Lawrence. The United States has also sued Kenneth Aikens, who worked for Lawrence as a tax preparer and manager before Aikens assumed ownership of several tax return preparation stores. In the complaint against Lawrence and Aikens, the government alleges that both men have taken steps to mask their ownership of the businesses.
To date, Jean Demesmin, Odne, Chambers, Scott, Pierre-Louis, Victor and Lauri Rodriguez have agreed to preliminary injunctions barring them from tax return preparation. The U.S. District Court for the Central District of Florida, following a motion by the United States, entered a preliminary injunction barring Mesadieu from tax return preparation. A preliminary injunction motion to bar Stinson from tax return preparation is pending.
Return preparer fraud was one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2015. The IRS has some tips on their website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Everett Man Arrested for Masked Armed Bank RobberyRead the Press Release
BOSTON – An Everett man appeared in federal court today in connection with his alleged armed robbery of the TD Bank in Allston in November 2015.
Joseph G. Rachal, 64, was arraigned today in U.S. District Court in Boston and charged with armed bank robbery, carrying a firearm during the commission of a crime of violence, and being a previously convicted felon in possession of a firearm and ammunition. U.S. District Court Magistrate Judge Marianne B. Bowler scheduled a detention and probable cause hearing for Jan. 28, 2016 at 11:00 a.m.
According to court documents, on Nov.19, 2015, an individual later identified as Rachal, allegedly entered the TD Bank in Allston wearing a dark rubber mask. Rachael approached two tellers, brandished a semi-automatic weapon, and demanded money. The tellers gave Rachal $2,397 and he fled the bank.
Law enforcement officers arrived within minutes of the robbery and observed a man hiding behind a parked SUV one block from the bank. After the officers identified themselves, the man fled carrying a black nylon bag. The man was caught and after a brief struggle and identified as Rachal. The officers found an active radio scanner on Rachal which was tuned to the Boston Police radio frequency. The black bag contained a 9mm Glock semi-automatic pistol with one chambered round and a magazine containing 14 additional rounds, an extra magazine containing 15 rounds of 9mm ammunition, a dark rubber mask, gloves, a tan jacket, and $2,397.
Bank surveillance cameras confirmed that the items recovered from Rachal’s bag were consistent with those used during the robbery.
The charge of armed bank robbery provides for a sentence of no greater than 25 years in prison, five years of supervised release and a fine of $250,000. The charge of being a felon in possession provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. The charge of brandishing a firearm during the commission of a violent crime provides for a mandatory sentence of seven years to be served consecutive to the other charges. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Evans, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’ Major Crimes Unit.
Eufaula Woman Pleads Guilty to Wire FraudRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced KAY ANN FARROW, age 69, of Eufaula, Oklahoma, pled guilty to WIRE FRAUD, in violation of Title 18, United States Code, Section 1343, punishable by not more than 20 years imprisonment, up to a $250,000.00 fine or both.
The Indictment alleged that on or about July 11, 2014, in Eufaula, Oklahoma, in the Eastern District of Oklahoma and elsewhere, KAY ANN FARROW, for the purpose of executing the scheme, caused to be transmitted by means of wire communication in interstate commerce writings, signs, signals, pictures, and sounds. It further alleged that on or about July 16, 2014, in Eufaula, Oklahoma, in the Eastern District of Oklahoma and elsewhere, the Defendant, for the purpose of executing the scheme, caused to be transmitted by means of wire communication in interstate commerce writings, signs, signals, pictures, and sounds. A Forfeiture Allegation is also included in the Indictment.
The charges arose from an investigation by the Eufaula Police Department and the Federal Bureau of Investigation.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion.
Assistant United States Attorney Kristin Harrington represented the United States.
Des Moines Man Sentenced to Prison for Involvement in Methamphetamine Conspiracy and Firearm OffensesRead the Press Release
COUNCIL BLUFFS, IA – On January 19, 2016, Manuel Montejano Pinon, 47, of Des Moines, Iowa, was sentenced by Senior United States District Court Judge James E. Gritzner to 164 months in prison for conspiring to distribute methamphetamine and 60 months in prison for possessing a firearm in furtherance of drug trafficking, announced Acting United States Attorney Kevin E. VanderSchel. The two prison terms were ordered to be served consecutively.
Pinon pled guilty to the charges on September 23, 2015. According to the plea agreement, Pinon was involved in a conspiracy to distribute methamphetamine in the Southern District of Iowa. As part of the conspiracy, Pinon delivered money from the sale of methamphetamine to the methamphetamine suppliers. Pinon also possessed a firearm to further his involvement in drug trafficking.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Iowa Division of Narcotics Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Derby Man Admits Participating in Steroid and Prescription Narcotic Distribution ConspiracyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that FRANK PECORA, 54, of Derby, pleaded guilty today in Hartford federal court to one count of conspiracy to distribute and to possess with intent to distribute oxycodone.
According to court documents and statements made in court, a long-term investigation led by the Federal Bureau of Investigation, Drug Enforcement Administration and Homeland Security Investigations revealed that Steven Santucci, a former Newtown Police sergeant, and others were receiving shipments of steroid ingredients from China and manufacturing and distributing wholesale quantities of steroids. The investigation also revealed that certain members of the conspiracy were distributing prescription pills, including oxycodone, as well as cocaine.
In pleading guilty, PECORA admitted that he conspired with others to distribute oxycodone, cocaine, morphine, and anabolic steroids. PECORA, a previously convicted felon, further admitted that he unlawfully possessed two .308 caliber rifles and two 12 gauge shotguns.
During the course of the investigation, law enforcement officers seized hundreds of vials of steroids, approximately 600 grams of raw testosterone powder, approximately 350 grams of powder cocaine, and several firearms, including the firearms that PECORA possessed.
PECORA has been detained since his arrest on April 29, 2015. He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on April 15, 2016, at which time he faces a maximum term of imprisonment of 20 years.
On December 9, 2015, Santucci pleaded guilty steroid distribution and money laundering offenses. He awaits sentencing.
This matter is being investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, Homeland Security Investigations, with the assistance of the U.S. Marshals Service, U.S. Postal Inspection Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Robert M. Spector.
Danbury Flooring Company Owner Sentenced to Prison for Tax EvasionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID BENINCASA, 35, of Danbury, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to three months of imprisonment, followed by two years of supervised release during which BENINCASA must spend six months in home confinement, for tax evasion. Judge Chatigny also ordered BENINCASA to pay a $15,000 fine and perform 120 hours of community service.
According to court documents and statements made in court, DAVID BENINCASA and his brother, Scott Benincasa, were 50 percent owners in Goodhouse Flooring, LLC, a business that provides floor installation and flooring products to retail and commercial customers. DAVID BENINCASA assisted Scott Benincasa with the daily operations of the business, but had primary responsibility for the financial aspects of the business. For the 2008 through 2010 tax years, the brothers intentionally understated gross receipts from their business on the Schedule C attached to their respective federal personal income tax filings. During those years, the brothers failed to accurately report the expenses incurred in running their business, as they paid certain laborers who worked for their business in cash and then failed to reflect the cash payments on their filed returns.
Prior to sentencing, DAVID BENINCASA paid $238,274 in back taxes, plus applicable interest and penalties.
On October 28, 2015, DAVID BENINCASA pleaded guilty to one count of tax evasion and Scott Benincasa, 32, of Danbury, pleaded guilty to one count of filing false tax returns.
On January 21, 2016, Scott Benincasa was sentenced to three years of probation, six months of home confinement and 120 hours of community service. He also was ordered to pay a $15,000 fine and $47,076 in back taxes, plus applicable interest and penalties.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division and was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Culloden man latest prosecuted as part of heroin-dealing familyRead the Press Release
HUNTINGTON, W.Va. – A Culloden drug dealer who sold heroin with his family from his home was sentenced today in federal court to three and a half years in prison, announced Acting United States Attorney Carol Casto. Sanford Dale Cremeans, 45, previously pleaded guilty to distribution of heroin in October of 2015.
From early 2014 to May of 2015, Sanford Dale Cremeans and his wife, Toni Cremeans, along with their son, Shawn Cremeans, conspired to sell heroin from their residence at 2246 3rd Street in Culloden. On December 2, 2014, a confidential informant working with law enforcement contacted Shawn Cremeans to arrange a heroin purchase. The informant traveled to the Cremeans’ residence and met with Shawn and Sanford Cremeans while they waited for Toni Cremeans to arrive with additional heroin. Once Toni Cremeans arrived, the informant paid Shawn Cremeans and received the heroin from Sanford Cremeans. Sanford Cremeans admitted that he assisted in the sale of heroin from the family residence on numerous other occasions and was responsible for the distribution of up to 100 grams of heroin.
Toni Cremeans previously pleaded guilty to distribution of heroin and faces up to 20 years in federal prison and a $1 million fine when she is sentenced on March 28, 2016. Shawn Cremeans previously pleaded guilty to aiding and abetting the distribution of heroin and also faces up to 20 years in federal prison and a $1 million fine when he is sentenced on March 7, 2016.
The Huntington FBI Drug Task Force and Cabell County Sheriff’s Department conducted the investigation of the Cremeans family. Assistant United States Attorney Joseph F. Adams is in charge of the prosecutions. Chief United States District Judge Robert C. Chambers imposed the sentence.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Crownpoint Man Pleads Guilty to Federal Assault Charges Arising from Ax AttackRead the Press Release
ALBUQUERQUE – Edwin C. Johnson, 36, an enrolled member of the Navajo Nation who resides in Crownpoint, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to assault charges. Under the terms of his plea agreement, Johnson will be sentenced to a prison term within the range of 108-120 months followed by a term of supervised release to be determined by the court.
Johnson was arrested on Dec. 9, 2015, on a criminal complaint charging him with assault with a dangerous weapon. According to the complaint, Johnson assaulted his girlfriend, a San Carlos Apache woman, with an ax on Dec. 7, 2015. The victim suffered a gash about four centimeters long and bloody discharge from both ears; she also experienced cranial pressure and swelling. Because the victim’s injuries were life threatening, she was flown by helicopter to the trauma hospital at the University of New Mexico Hospital in Albuquerque.
Johnson was subsequently indicted on Dec. 17, 2015. Johnson is charged with assault with a dangerous weapon, an ax, with intent to do bodily harm, assault resulting in serious bodily injury, and attempt to commit murder. The indictment alleged that Johnson committed the crime on Dec. 7, 2015, in Indian Country in McKinley County, N.M.
During today’s proceedings, Johnson pled guilty to all three charges. Johnson remains in custody pending sentencing which has yet to be scheduled.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney David Adams.
This case was brought as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Court of Appeals Affirms Conviction and Sentence in Mortgage Rescue SchemeRead the Press Release
CONCORD, New Hampshire - United States Attorney Emily Gray Rice announced that the United States Court of Appeals for the First Circuit in Boston, Massachusetts affirmed Michael Prieto's New Hampshire conviction and 72 month sentence for committing mail fraud by organizing and managing a fraudulent mortgage rescue scheme. Prieto's crime grew out of the mortgage crisis in the mid and late 2000s and involved defrauding distressed homeowners out of their properties and then obtaining money by lying on subsequent mortgage applications to strip equity from these properties.
On appeal, the First Circuit rejected Prieto's argument that the government improperly charged him with a single, overarching fraud count. The Court concluded that the government's single charge against Prieto was appropriate because the charge reflected the "multi-faceted [and] complex scheme" that Prieto devised. The Court also denied Prieto's claim that the government had not presented sufficient evidence of Prieto's intent to commit fraud. In this regard, the Court concluded that "there was ample support to find that Prieto was both the conductor and a musician in an orchestrated fraud that worked for a while only because it was fraud." Finally, the Court determined that there was sufficient evidence that the lies Prieto placed in mortgage applications were important to the bank's decision to issue loans. As the Court noted, lies about a mortgage applicant's stated income and the planned use for the property (i.e., primary residence vs. investment property) are important pieces of information to a bank because they have a natural tendency to influence a bank's loan decision.
United States Attorney Rice remarked: "This was an important victory for the government. Individuals engaged in fraudulent mortgage rescue schemes took advantage of honest homeowners at their most vulnerable time. People like the defendant, who seek to leverage people's economic distress into personal gain, must be held accountable. Prieto's long sentence, which was affirmed by the Court of Appeals, will hopefully send a strong deterrent message that this kind of conduct will not be tolerated."
Prieto's appeal was defended by Assistant United States Attorney Seth R. Aframe. The underlying investigation was conducted by the Federal Bureau of Investigation and the Postal Inspection Service. The case was prosecuted in the trial court by AUSA Michael Gunnison and AUSA Mark Zuckerman.
Council Bluffs Man Sentenced to Prison for Felon in Possession of a Firearm ChargeRead the Press Release
COUNCIL BLUFFS, IA – On January 19, 2016, Zachary M. Henderson, 38, of Council Bluffs, Iowa, was sentenced by Senior United States District Court Judge James E. Gritzner to 60 months in prison for a felon in possession of a firearm and possessing a firearm while subject to a domestic violence protective order charge, announced Acting United States Attorney Kevin E. VanderSchel. Henderson was ordered to serve three years of supervised release following his prison term and to pay $100 towards the Crime Victims’ Fund. Henderson was also ordered to forfeit the firearm involved in the offense.
According to the plea agreement, on April 3, 2015, Henderson possessed a loaded handgun that was discovered during a traffic stop conducted by the Council Bluffs Police Department. Prior to April 2015, Henderson was convicted of a felony offense and he was subject to a domestic violence protective order.
This matter was investigated by the Council Bluffs Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Convicted Sex Offender Sentenced to 180 Months in Federal Prison on Federal Child Pornography ConvictionRead the Press Release
DALLAS — Erick Fernando Duarte, 59, of Garland, Texas, was sentenced this morning by U.S. District Judge David C. Godbey to 180 months in federal prison, following his guilty plea in August 2015 to one count of possession of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Duarte has been in federal custody since his arrest in May 2015.
According to documents filed in the case, in April 2014, a detective with the Garland Police Department received information from the National Center for Missing and Exploited Children (NCMEC) that child pornography had been uploaded to an AOL account by a specific AOL email user. Based on this, subscriber information, and information reported on his updated sex offender registry, Duarte was identified as the user.
A search warrant was secured and executed for Duarte’s residence and cell phone. A review of his cell phone and other media revealed that he had more than 1200 images of child pornography, including images of prepubescent children involved in sex acts, on his cell phone. Duarte admits that some of the images depicted sadistic and/or violent content.
Duarte was convicted in the 265th Judicial District Court of Dallas County, Texas, in October 1995, for the felony assault of Sexual Assault of a Child.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI and the Garland Police Department investigated the case. Assistant U.S. Attorney Camille Sparks was in charge of the prosecution.
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Columbus Man Pleads Guilty to Filing False Tax Returns While in Federal PrisonRead the Press Release
COLUMBUS, Ohio – Malek B. Aliane, 34, previously of Columbus, pleaded guilty in U.S. District Court to mail fraud and presenting false claims to the Internal Revenue Service (IRS).
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Guy A. Ficco, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office, James Vanderberg, U.S. Department of Labor Office of Inspector General, and Assistant Inspector in Charge Christopher White of the U.S. Postal Inspection Service’s (USPIS) Cincinnati Field Office, announced the plea entered into today before U.S. District Judge Gregory L. Frost.
According to court documents, from 2013 through 2015, while in federal prison or on supervised release, Aliane filed false personal forms and tax returns with the IRS. He filed six returned in total which claimed false tax refunds through fraudulent federal income tax withholdings. Aliane created fictitious W-2 and 1099 forms setting forth large federal tax withholding amounts.
In 2013 and 2014, while in prison, Aliane mailed paper returns to the IRS. In 2015, while on supervised release, he electronically filed the returns.
Three false Forms 1040 and/or Forms 1040X for the tax years 2012, 2013 and 2014 claimed a total of $94,133.87 in bogus refunds. The other three were false Forms 1120 for Aliane’s business, MB Aliane Real Estate, LLC, for the years 2012, 2013 and 2014 claiming $422,185.00 in false refunds.
Also, from February 1, 2015, through June 23, 2015, the defendant used personal identification information of other individuals in order to file false, fictitious and fraudulent unemployment insurance (UI) applications with the Ohio Department of Job and Family Services (ODJFS) upon the purported employer account of JLB Financial Group.
On May 12, 2015, Defendant Aliane registered the fictitious employer account of JLB Financial Group with the ODJFS. This employer account was registered with backdated liability dates and no contributions having been paid. Seven individuals were listed as employees of JLB Financial Group with wages from the first quarter of 2014 through the first quarter of 2015; however, those seven individual employees, all were incarcerated before and during the aforementioned wage period. None of them ever actually worked for JLB. Seven individual UI claims were filed on the business account, and the government contends that the potential unemployment benefits to be paid on those claims totals $77,168
Aliane faces a potential maximum sentence of 20 years for mail fraud and five years for presenting false claims to the IRS.
U.S. Attorney Stewart commended the cooperative investigation by the IRS-CI, Department of Labor and USPIS, as well as Assistant United States Attorney Daniel Brown, who is representing the United States in this case.