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9 March 2016
New Orleans Man Sentenced to 10 Years in Prison for Possession of Child PornographyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DAVID MOREL, age 32, of New Orleans, was sentenced today for crimes involving the sexual exploitation of children.
U.S. District Judge Martin L.C. Feldman sentenced MOREL to ten years incarceration, to be followed by a life term of supervised release, and restitution in the amount of $1,000 to each of his five named victims.
According to court records, on June 25, 2015, MOREL was charged as a result of a child exploitation investigation conducted by the Louisiana Attorney General’s Office Cyber Crime Unit (“LAGO”) and the U.S. Department of Homeland Security-Homeland Security Investigations (“HSI”). According to court records, HSI and LAGO agents executed a search warrant at MOREL’s residence after determining MOREL was downloading images depicting the sexual victimization of children. MOREL was arrested during the execution of the search warrant after confessing to downloading and possessing images and videos depicting child pornography. HSI computer forensic examiners conducted a search of MOREL’s seized computer equipment and located over 2,500 images and videos depicting the sexual victimization of children on MOREL’s electronic devices.
According to a Notice of Sentence Enhancement filed in federal court records, in 2010, MOREL was convicted in Orleans Parish Criminal Court of 536 counts of possession of pornography involving juveniles. He received a ten year suspended sentence and, instead, was placed on home incarceration for a period of five years.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
U.S. Attorney Polite praised the work of the Louisiana Attorney General’s Office Cyber Crime Unit and the U.S. Department of Homeland Security-HSI in investigating this matter. Project Safe Childhood Coordinator and Fraud Unit Chief Assistant U.S. Attorney Brian M. Klebba was in charge of the prosecution.
New Orleans Man Pleads Guilty to Drug and Firearms ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that THOMAS BROWN, age 45, of New Orleans, pled guilty as charged today to a Bill of Information charging one count of possession with intent to distribute acetyl fentanyl, heroin, and cocaine, and a second count of possession of firearms in furtherance of drug trafficking.
According to court records, in June 2015, while Drug Enforcement Administration agents were buying heroin undercover from an unnamed trafficker, they observed BROWN arrive on the scene and appear to supply heroin to the targeted trafficker. After further investigation, agents obtained and executed a search warrant BROWN’s residence and found 188 grams of acetyl fentanyl, 66 grams of heroin, 150 grams of cocaine hydrochloride, and 17.9 grams of marijuana. Most of the narcotics seized were found secreted in a void between a furnace and a wall in a hallway closet, and the drugs had been packaged for sale. Agents also located near the narcotics a loaded .45 caliber pistol, a .38 caliber revolver, and a loaded 20-guage shotgun.
U.S. District Judge Susie Morgan scheduled sentencing for June 15, 2016. BROWN faces a sentence of imprisonment of up to twenty years for the narcotics charge and sentence of at least five years and up to life for the firearms charge.
U.S. Attorney Polite praised the work of the New Orleans Field Division of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney Michael B. Redmann is in charge of the prosecution.
Muscatine Man Sentenced to Prison for Illegal Reentry and Failure to Update Sex Offender RegistryRead the Press Release
DAVENPORT, IA – On March 3, 2016, Francisco Antonio Araujo Coreas, 37, of Muscatine, Iowa, was sentenced by Senior United States District Court Judge James E. Gritzner to 57 months in prison for unlawful reentry into the United States after deportation and failure to update sex offender registry, announced Acting United States Attorney Kevin E. VanderSchel. Araujo Coreas was ordered to serve three years of supervised release following his prison term and to pay $200 towards the Crime Victims’ Fund. Araujo Coreas will be transferred to immigration officials after his prison sentence for deportation.
Araujo Coreas pleaded guilty to unlawful reentry after deportation and failure to update sex offender registry on November 30, 2015. According to the Complaint Affidavit, on about July 29, 2016, Araujo Coreas was arrested in Muscatine for interference with official acts and harassment of a public official. Authorities compared his fingerprints and discovered he was deported to El Salvador on September 9, 2011, after being convicted of two counts of indecent contact with a child on January of 2011 in Muscatine County. As part of that sentence, he was ordered to serve 90 days in jail and register as a sex offender. Further investigation revealed he did not update his information on the sex offender registry.
This matter was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement, and the Muscatine County Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Montgomery County Man Admits Threatening Law Enforcement Officer and FamilyRead the Press Release
PHILADELPHIA – Michael Anthony Nohl, 20, of Oaks, Pennsylvania, pleaded guilty today to charges from a so-called “swatting” incident that targeted a law enforcement officer and the officer’s family, announced United States Attorney Zane David Memeger. U.S. District Court Judge Jan E. DuBois scheduled a sentencing hearing for June 9, 2016.
The term “swatting” is generally defined as the act of deceiving an emergency service, such as 911 or other emergency services dispatcher, into dispatching emergency response units, including police SWAT teams, fire departments and medical personnel, based on the false report of an ongoing critical incident.
On December 22, 2014, Nohl was involved in a phone call to the home of the officer in which the officer’s wife and daughter were threatened. The threats included threats to kidnap and murder them and threats to assault and kill the officer. Nohl was charged with, using a telephone or other instruments of interstate or foreign commerce to threaten the use of an explosive to kill, injure, or intimidate an individual, and transmitting any communication containing any threat to injure a person.
Nohl faces a statutory maximum sentence of 15 years in prison, a possible fine, up to three-years of supervised release, and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney José Arteaga.
Marin Doctor Pleads Guilty to Illegally Prescribing OxycodoneRead the Press Release
OAKLAND – Dr. Michael Roger Chiarottino pleaded guilty in federal court in Oakland yesterday to distribution of oxycodone outside the usual course of professional practice and without a legitimate medical purpose, announced Acting United States Attorney Brian J. Stretch and Drug Enforcement Administration Special Agent in Charge John J. Martin.
In pleading guilty, Dr. Chiarottino, 67, of San Rafael, admitted that on six occasions between February 12, 2013, and March 6, 2014, he prescribed large quantities of controlled substances (including oxycodone, oxymorphone, hydromorphone, methadone, and hydrocodone) to undercover DEA agents posing as patients in exchange for cash. On each occasion, Dr. Chiarottino failed to conduct an appropriate medical examination of, or obtain a sufficient patient medical history from, the undercover agent to support a prescription for such a large quantity of narcotics. In total, Dr. Chiarottino prescribed 46.8 grams of oxycodone which amounts to 1,530 thirty-milligram pills. Dr. Chiarottino admitted that in prescribing the pills, he did so with the intent to act outside the usual course of professional practice and without a legitimate medical purpose. Dr. Chiarottino also admitted that, as a licensed physician and DEA registrant, he abused a position of trust and used a special skill to intentionally prescribe controlled substances without a legitimate medical purpose.
Dr. Chiarottino was indicted by a federal grand jury on September 14, 2014. He was charged with fifteen counts of distribution of controlled substances in violation of Title 21, United States Code, Section 841(a)(1). Pursuant to the agreement, Dr. Chiarottino pleaded guilty to one count of distributing oxycodone, a Schedule II Controlled Substance.
Dr. Chiarottino is currently free on pretrial release on a $75,000 bond. His sentencing hearing is scheduled for 1:00 p.m. on June 14, 2016, before the Honorable Jeffrey S. White, U.S. District Judge, in Oakland. The maximum statutory penalty for a violation of 21 U.S.C. §§ 841(a)(1), (b)(1)(C) is twenty years’ imprisonment and a fine of $1,000,000. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Garth Hire is prosecuting the case with the assistance of Melissa Dorton. The prosecution is the result of an investigation by the DEA, the Livermore Police Department, the Pleasanton Police Department, and the Medical Board of California. This case is the product of an investigation by the Organized Crime Drug Enforcement Task Force a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Marijuana Trafficker Pleads GuiltyRead the Press Release
BOISE - Jose Martin Diaz-Lara, 33, of Walla Walla, Washington, and originally from the State of Mexico, in Mexico, pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime and conspiracy to manufacture a controlled substance, more than 1,000 marijuana plants, with the intent to distribute it, U.S. Attorney Wendy J. Olson announced. Diaz-Lara was charged by a superseding indictment on December 8, 2015.
According to court documents, Diaz Lara was arrested on September 23, 2015, along with a co-conspirator Carlos Avalos-Cervantes, in a remote, timbered canyon north of Banks, in Boise County, Idaho. Agents were able to document a total of 6,870 live and harvested marijuana plants on state lands in the canyon. According to court proceedings, Diaz-Lara and Avalos-Cervantes each possessed a 9mm handgun in furtherance of the drug trafficking crime. The court documents also state that the marijuana operation was supported and supplied by other co-defendants. Diaz-Lara and Avalos-Cervantes and other co-conspirators are Mexican nationals who entered the United States illegally.
Co-defendant Avalos-Cervantes has pleaded guilty to the same charges as Diaz-Lara and both will be sentenced on April 19, 2016. Trial for the remaining defendants is scheduled for May 9, 2016, before Chief U.S. District Judge B. Lynn Winmill.
The maximum penalty for manufacturing more than 1,000 marijuana plants with intent to distribute the drug is not to exceeded 20 years, as well as a $1,000,000 fine. The maximum penalty for possessing a firearm in furtherance of drug trafficking crimes is not less than five years imprisonment consecutive to any other penalty, and a $250,000 fine.
The arrests and complaints are the result of a joint investigation and cooperative law enforcement efforts of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Drug Enforcement Administration, Bureau of Land Management (BLM), Nampa Police Department Special Investigations Unit (SIU). Other agencies include Ada County Sheriff’s Office, United States Forest Service (USFS), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Boise County Sheriff’s Office, Boise Police Department, Gooding County Sheriff’s Office, Idaho Department of Fish and Game, Idaho National Guard—Counterdrug Support Office, Meridian Police Department, Milton-Freewater Police Department, Oregon State Police, Power County Sheriff’s Office, Spokane Police Department, Valley County Sheriff’s Office, Walla Walla Police Department, and Washington State Patrol.
The OCDETF program is a federal multi agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Leominster Restaurant Owner Pleads Guilty to Conspiracy to Commit ArsonRead the Press Release
BOSTON – The owner of West End Diner in Leominster pleaded guilty today in U.S. District Court in Worcester in connection with setting fire to his restaurant in order to collect the insurance proceeds.
Jeffrey Cordio, 50, of Leominster, Mass. pleaded guilty to an Information charging him with one count of conspiracy to use fire to commit mail fraud. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for June 1.
In January 2006, Cordio and his wife purchased the West End Diner at 270 West Street in Leominster. Due to significant financial distress and a desire to relocate to Florida, Cordio and an accomplice set fire to the diner and fled the scene during the afternoon of Nov. 13, 2013. The Leominster Fire Department responded to the alarm and was able to largely contain the blaze to the basement of the building. The following day, Cordio initiated an insurance claim with Norfolk & Dedham Mutual Fire Insurance Company; however, the claim was ultimately denied after investigators determined that the fire was intentionally set.
The charge of conspiracy to use fire to commit mail fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. If the Court accepts the plea agreement, Cordio will serve a sentence of four years in prison and three years of supervised release. 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.
Cordio’s accomplice previously pleaded guilty in state court to accessory before the fact.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Leominster Police Chief Michael Goldman, made the announcement today. The Massachusetts State Police Fire and Explosive Investigation Section, the Leominster Fire Department and the Worcester County District Attorney’s Office also assisted with the investigation. The case is being prosecuted by Assistant U.S. Attorney Greg A. Friedholm of Ortiz’s Worcester Branch Office.
Laredo Man Sentenced on Firearms ChargeRead the Press Release
LAREDO, Texas – Ricardo Alberto Chaires, 34, has been ordered to federal prison following his conviction of possession of a firearm by a convicted felon, announced U.S. Attorney Kenneth Magidson. The Laredo resident pleaded guilty Nov. 18, 2015.
Toda, U.S. District Judge Marina Garcia Marmolejo ordered he serve 41 months in federal prison.
On Aug. 30, 2015, law enforcement received a 911 call reporting shots fired from a passenger vehicle and reported to a residence on the 600 block of Valeria Loop. As they approached the residence, officers encountered Chaires driving a vehicle matching the description provided by various callers. Officers attempted to stop him, but Chaires refused and a high-speed chase ensued along Interstate Highway 83. The vehicle swerved in and out of lanes and drove on the shoulder to avoid apprehension, finally stopping on South Bartlett Avenue.
Within the vehicle, officers found a high-capacity, 60-round magazine for the rifle, loaded with a few rounds. They also discovered at least one expended round and an unfired round on the floor in the driver’s side and several loaded rounds scattered on the floor of the front passenger side. Chaires admitted to federal agents that although he knew it was against federal law for him to possess a firearm or ammunition, he had been compelled to acquire one illegally for personal protection. He refused to explain, however, what he was doing in the area with the loaded firearm.
Officers had also learned that someone had thrown a rifle out of the vehicle in a grassy area near the Border Patrol Station in South Laredo and responded to the scene. They soon recovered an AR-15 rifle, containing a single loaded round which was ready to fire.
Chaires has been in custody since his arrest where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Laredo Police Department. Assistant U.S. Attorney Jose Homero Ramirez prosecuted the case.
Laredo Man Sentenced on Firearms ChargeRead the Press Release
LAREDO, Texas – Ricardo Alberto Chaires, 34, has been ordered to federal prison following his conviction of possession of a firearm by a convicted felon, announced U.S. Attorney Kenneth Magidson. The Laredo resident pleaded guilty Nov. 18, 2015.
Toda, U.S. District Judge Marina Garcia Marmolejo ordered he serve 41 months in federal prison.
On Aug. 30, 2015, law enforcement received a 911 call reporting shots fired from a passenger vehicle and reported to a residence on the 600 block of Valeria Loop. As they approached the residence, officers encountered Chaires driving a vehicle matching the description provided by various callers. Officers attempted to stop him, but Chaires refused and a high-speed chase ensued along Interstate Highway 83. The vehicle swerved in and out of lanes and drove on the shoulder to avoid apprehension, finally stopping on South Bartlett Avenue.
Within the vehicle, officers found a high-capacity, 60-round magazine for the rifle, loaded with a few rounds. They also discovered at least one expended round and an unfired round on the floor in the driver’s side and several loaded rounds scattered on the floor of the front passenger side. Chaires admitted to federal agents that although he knew it was against federal law for him to possess a firearm or ammunition, he had been compelled to acquire one illegally for personal protection. He refused to explain, however, what he was doing in the area with the loaded firearm.
Officers had also learned that someone had thrown a rifle out of the vehicle in a grassy area near the Border Patrol Station in South Laredo and responded to the scene. They soon recovered an AR-15 rifle, containing a single loaded round which was ready to fire.
Chaires has been in custody since his arrest where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Laredo Police Department. Assistant U.S. Attorney Jose Homero Ramirez prosecuted the case.
Kentucky Man Sentenced to 19 Years in Prison for Possession and Distribution of Methamphetamine and Carrying a Firearm During a Drug Trafficking CrimeRead the Press Release
Defendant Obtained 67 Pounds of Crystal Meth in California and Shipped the Drug to His Todd County Home
Scott Windell Harris, 45, of Allensville, Kentucky, was sentenced today in U.S. District Court in the Western District of Kentucky to 19 years in prison followed by five years of supervised release for multiple charges associated with firearms, possession and distribution of methamphetamine, announced U.S. Attorney John E. Kuhn, Jr. for the Western District of Kentucky.
Harris purchased 67 pounds of crystal meth during approximately nine trips to California, then shipped the schedule II controlled substance to a residence off Russellville Road in Todd County. Harris, an unlawful user of methamphetamine, also carried a firearm during and in relation to a drug trafficking offense.
“Methamphetamine is a highly addictive drug with devastating consequences to users, their families and communities,” said U.S. Attorney Kuhn. “This prosecution closes a significant pipeline for dangerous drugs running from California to the streets of Western Kentucky. We are grateful to the many law enforcement agencies whose coordinated efforts assisted my office in achieving this sentence.”
Law enforcement officials became aware of Harris’ criminal conduct in February 2015, when a package was intercepted at the Louisville, Kentucky, hub of UPS. A search warrant executed on the package revealed 19.6 pounds of suspected methamphetamine being shipped from California to Todd County. Later forensic testing of the methamphetamine at the Drug Enforcement Administration Laboratory in Chicago, Illinois, revealed a purity level exceeding 100 percent. State and federal law enforcement officials conducted a controlled delivery of the package and observed Harris taking possession of the package and placing it inside a black van. Later, a search of the van revealed a loaded Kel-Tec CNC Industries, Model P3AT, .380 caliber pistol with seven rounds of .380 ammunition in the van’s glove box. At the time, Harris was an unlawful user of methamphetamine and, therefore, prohibited from possessing a firearm.
Harris made multiple trips to Los Angeles, California, where he obtained a total of 67 pounds of crystal methamphetamine, with an estimated street value of approximately $3 million. Once he had the methamphetamine, Harris packaged the drugs and shipped them to his residence in Allensville. When law enforcement officials arrested Harris, they searched the residence and found an additional one and one-half pounds of crystal methamphetamine, scales, baggies and just over $14,000 in cash.
Harris previously pleaded guilty to the charges on Oct. 13, 2015, in Bowling Green, Kentucky, before U.S. District Judge Stivers.
This case was prosecuted by Assistant U.S. Attorney Jo E. Lawless and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Kentucky State Police Drug Enforcement/Special Investigations West, with assistance from the Drug Enforcement Administration Laboratory.
Kansas Man Sentenced to 10 Years in Federal Prison for Sex Trafficking of a ChildRead the Press Release
Fort Smith, Arkansas - Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that Darnell James Winston, age 23, of Leavenworth, Kansas, was sentenced to 120 months in prison without the possibility of parole and five years of supervised release for one count of Sex Trafficking of a Child. The sentencing hearing took place before the Honorable P. K. Holmes, III in the United States District Court in Fort Smith.
According to court records, on August 26, 2015, the Fort Smith Police Department and the Federal Bureau of Investigation received information from an individual that a 17-year-old female was being worked as a prostitute in the Fayetteville area. Law enforcement was able to identify the Facebook profile of the 17-year-old girl, which contained photographs of her with two men one of whom was identified as Darnell James Winston. An undercover Fort Smith Police detective began communicating with Winston online. Winston recruited the undercover to work as a prostitute for him and continued to do so even after the undercover advised Winston that they were only 16 years old. Winston stated that it was ok because the girl currently working for him was only “17”, referring to the minor female law enforcement had previously identified. Winston continued his recruitment of the undercover officer and discussed backpage.com, an internet website commonly used by sex traffickers to advertise prostitution. Arrangements were made between the undercover officer and Winston to meet at a hotel in Alma on August 28, 2015. When Winston arrived at the hotel with the 17-year-old female and another adult male, he was arrested, and she was recovered by police. Winston was indicted by a federal grand jury on September 16, 2015 and pleaded guilty to the charge on November 4, 2015.
This case was investigated by the Fort Smith Police Department, the Alma Police Department, and the Federal Bureau of Investigation (FBI). Assistant United States Attorney Aaron Jennen prosecuted the case for the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and their Criminal Division Child Exploitation and Obscenity Sections (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.
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Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
KC Group Home Operator Pleads Guilty to $400,000 Tax Evasion SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the operator of several group homes for mentally and physically handicapped residents in Kansas City, Mo., pleaded guilty in federal court today to a nearly $400,000 scheme to evade paying taxes.
Dedree R. Carlisle, 53, of Kansas City, Mo., waived her right to a grand jury and pleaded guilty before U.S. District Judge Dean Whipple to a federal information that charges her with attempting to evade taxes.
Carlisle has owned and operated a group home health care business at multiple locations in Kansas City, Mo., since 2005. Originally Carlisle’s business was called “Carlisle – Garden of Peace” but she changed the name in 2009 to “Mracles Residential Care.” Mracles cares for mentally and physically handicapped residents in a group home setting, leasing multiple houses in residential neighborhoods, under contracts with the Missouri Department of Social Services. Mracles has had between 12 and 20 employees at its multiple residences.By pleading guilty today, Carlisle admitted that she engaged in a scheme to defraud the IRS and the state of Missouri for the purpose of evading payment of at least $397,213 in federal and state taxes, penalties and interest, beginning in 2006.
Carlisle failed to pay over employment taxes totaling $131,649 for her residential health care facilities from 2008 to 2010. Carlisle also willfully failed to file her 2009 and 2010 individual tax returns, and evaded state employment and income taxes during that period.
Carlisle admitted that she gambled heavily, including at 7th Street Casino in Kansas City, Kan., with funds debited directly from her business accounts. Carlisle used her business accounts as her personal charge accounts. She did not report, on her tax returns, many of these personal expenses as income, including charges for thousands of dollars made on business debit cards from 2006 through 2010 at Kansas City area casinos. Carlisle spent a total of $127,165 at 7th Street Casino from 2008 to 2010. Casino records show that Carlisle had winnings of $320,200 in 2010, $145,200 in 2009 and $29,219 in 2008.
Carlisle also wrote checks to herself from her business bank account in 2010 with references in the memo line to payroll, bonus, draws or advances totaling $65,000.
Carlisle was repeatedly notified of the amounts of her substantial taxes, penalties and interest due. Carlisle was notified in June 2011 that she was the subject of a criminal investigation. Although she continued to withhold taxes from her employees’ paychecks, Carlisle continued to fail to pay over employment taxes.
Under federal statutes, Carlisle is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by IRS-Criminal Investigation and the Missouri Department of Revenue.
Jury finds Hancock County, WV man guilty of multiple child pornography offensesRead the Press Release
WHEELING, WEST VIRGINIA – A federal jury returned a guilty verdict today convicting Steve G. Singo, 35, of Weirton, West Virginia, of receiving, possessing, and distributing images of child pornography, United States Attorney William J. Ihlenfeld, II, announced.
Evidence presented at trial indicated that Singo utilized internet-based peer-to-peer file sharing technology to download and share files depicting minors engaged in sexually explicit conduct. As the result of online surveillance and investigatory techniques, authorities discovered Singo in possession of various images of child pornography at his residence in Hancock County, West Virginia.
Following a two day trial, a jury found Singo guilty of one count of “Receipt and Distribution of Child Pornography,” for which he faces between five and twenty years in prison, and one count of “Possession of Child Pornography,” for which he faces up to twenty years in prison. He also faces a fine of up to $250,000 on each of the two counts. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Vogrin prosecuted the case on behalf of the government. The West Virginia State Police investigated.
U.S. District Judge Frederick P. Stamp, Jr., presided.
Jury Finds Air Force Veteran Guilty in First Conviction After Trial in the United States for Attempting to Travel Overseas to Join ISILRead the Press Release
Former U.S. Air Force Airplane Mechanic Convicted of Attempting to Provide Material Support to Terrorists and Obstruction of an Official Proceeding
A jury in the Eastern District of New York today found Tairod Nathan Webster Pugh, 48, of Neptune, New Jersey, a veteran of the U.S. Air Force, guilty of attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, and obstructing an official proceeding.
The verdict was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Robert L. Capers of the Eastern District of New York, Assistant Director in Charge Diego Rodriguez of the FBI’s New York Field Office and Commissioner William J. Bratton of the New York City Police Department.
“Pugh, an American citizen and former member of the U.S. Air Force where he served as an aircraft mechanic, attempted to travel to Syria to provide material support to ISIL,” said Assistant Attorney General Carlin. “This is the first conviction after a trial by jury in the United States involving an individual who attempted to travel to Syria to join ISIL, and further demonstrates our commitment to bring to justice all those who seek to provide material support to terrorists. I would like to thank all the members of law enforcement whose tireless efforts made this result possible.”
“Today’s verdict provides yet another example of a successful outcome in our national security effort, and demonstrates the crucial role that law enforcement action plays in that effort,” said U.S. Attorney Capers. “The evidence presented at trial and the jury’s verdict instill confidence that our law enforcement agencies and their many important partners at home and abroad work effectively to disrupt and defeat the deadly siren’s call of terrorist groups around the globe. Pugh has now been held accountable for his crimes by a jury and will not reach the terrorist group he sought to support.”
“As presented in trial, Tairod Nathan Webster Pugh was willing to become a martyr, using his U.S. military training as a weapon for ISIL,” said Assistant Director in Charge Rodriguez. “Instead, found guilty of his crimes, he is facing a lengthy incarceration. We are pleased the jury found his actions confirmed his expressed desire to cause violence and destruction on behalf of this terrorist organization. The FBI’s Joint Terrorism Task Forces continue to work globally with our partners to successfully stop such actions before they happen, keep communities safe and bring criminals to justice.”
“We applaud today’s verdict, finding the first ISIL defendant guilty after attempting to travel to Syria and wage jihad," said Commissioner Bratton. "Those who adhere to ISIL’s deadly terrorist agenda should be on notice: reject this ideology or face swift justice in American courts. It is fitting that the first ISIL conviction case is here in the Eastern District of New York, which has prosecuted more terrorism cases than any other district in the country. It is to them — and the many others on the Joint Terrorism Task Force — that New Yorkers owe their gratitude for the relentless efforts to keep our city safe.”
At trial, the government presented evidence that prior to traveling overseas to try to join ISIL, Pugh served in the Air Force as an avionics instrument system specialist and received training in the installation and maintenance of aircraft engines, navigation and weapons systems. After leaving the Air Force, the defendant worked for a number of companies in the United States and Middle East as an airplane mechanic. Pugh lived abroad for over a year before his arrest in this case.
On Jan. 10, 2015, the defendant traveled from Egypt to Turkey in an effort to cross the border into Syria to join ISIL to engage in violent “jihad.” However, Turkish authorities denied the defendant entry and returned him to Egypt. At the time of his detention, Pugh was carrying a laptop computer and four USB thumb drives that he had stripped of their plastic casings in an effort to destroy their contents and thereby make them unavailable to investigators. The defendant also was carrying solar power chargers, compasses and a black ski mask. Foreign government officials deported the defendant to the United States, where the FBI closely monitored him, relying in part on a covert undercover employee who encountered the defendant at John F. Kennedy Airport in New York. The defendant was arrested on Jan. 16, 2015, in Asbury Park, New Jersey, and thereafter indicted in the Eastern District of New York.
At trial, the government presented evidence obtained from the defendant’s laptop computer and social media posts. The defendant’s laptop contained Internet searches for “borders controlled by Islamic state.” The government also introduced evidence of the defendant’s Internet searches for “Flames of War” (an ISIL propaganda video) as well as terrorist videos he had downloaded, including one horrific video showing ISIL members executing prisoners. In addition, statements to coworkers and social media posts established Pugh’s empathy and support for ISIL’s cause and terrorist methods.
At trial, the government also introduced a letter drafted by Pugh on Jan. 5, 2015, shortly before he left Egypt for Turkey on his way to Syria. In that letter, the defendant proclaimed, “I am a Mujahid. I am a sword against the oppressor and a shield for the oppressed. I will use the talents and skills given to me by Allah to establish and defend the Islamic State. There is only 2 possible outcomes for me. Victory or Martyr.”
Based on his trial convictions, the defendant faces a maximum sentence of up to 35 years in prison. Sentencing has not yet been scheduled, but is expected to occur later this year.
Assistant Attorney General Carlin joined U.S. Attorney Capers in extending his grateful appreciation to the FBI’s Joint Terrorism Task Force (JTTF), as well as to the U.S. Department of State, U.S. Customs and Border Protection, the U.S. Attorney’s Office of the District of New Jersey, the Asbury Park Police Department and the Neptune Police Department.
The government’s case is being prosecuted by Assistant U.S. Attorneys Samuel P. Nitze, Tiana A. Demas and Mark Bini of the Eastern District of New York, with assistance provided by Trial Attorney Larry Schneider of the National Security Division’s Counterterrorism Section.
Jury Finds Air Force Veteran Guilty in First ISIL Conviction After Trial in the United StatesRead the Press Release
Today, a jury in Brooklyn returned a verdict finding defendant Tairod Nathan Webster Pugh, an American citizen and veteran of the United States Air Force, guilty of attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a foreign terrorist organization, and obstruction of an official proceeding. The defendant will be sentenced on September 16, 2016, by Judge Nicholas G. Garaufis at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The verdict was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; John P. Carlin, Assistant Attorney General for National Security; Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; and William J. Bratton, Commissioner, New York City Police Department.
“Today’s verdict provides yet another example of a successful outcome in our national security effort, and demonstrates the crucial role that law enforcement action plays in that effort,” stated U.S. Attorney Capers. “The evidence presented at trial and the jury’s verdict instill confidence that our law enforcement agencies and their many important partners at home and abroad work effectively to disrupt and defeat the deadly siren’s call of terrorist groups around the globe. Pugh has now been held accountable for his crimes by a jury and will not reach the terrorist group he sought to support.” Mr. Capers extended his grateful appreciation to the FBI’s Joint Terrorism Task Force (JTTF), which comprises a large number of federal, state, and local agencies from the region. Mr. Capers also thanked the U.S. Department of State, U.S. Customs and Border Protection, the United States Attorney’s Office for the District of New Jersey, the Asbury Park, New Jersey Police Department, and the Neptune, New Jersey Police Department for their assistance. Mr. Capers expressed his appreciation to the U.S. Marshals Service and the Federal Protective Service for providing security during the trial.
“Pugh, an American citizen and former member of the U.S. Air Force where he served as an aircraft mechanic, attempted to travel to Syria to provide material support to ISIL,” said Assistant Attorney General Carlin. “This is the first conviction after a trial by jury in the United States involving an individual who attempted to travel to Syria to join ISIL, and further demonstrates our commitment to bring to justice all those who seek to provide material support to terrorists. I would like to thank all the members of law enforcement whose tireless efforts made this result possible.”
“As presented in trial, Tairod Nathan Webster Pugh was willing to become a martyr, using his U.S. military training as a weapon for ISIL. Instead, found guilty of his crimes, he is facing a lengthy incarceration. We are pleased the jury found his actions confirmed his expressed desire to cause violence and destruction on behalf of this terrorist organization. The FBI’s Joint Terrorism Task Forces continue to work globally with our partners to successfully stop such actions before they happen, keep communities safe, and bring criminals to justice,” stated FBI Assistant Director-in-Charge Rodriguez.
“We applaud today’s verdict, finding the first ISIL defendant guilty after attempting to travel to Syria and wage jihad. Those who adhere to ISIL’s deadly terrorist agenda should be on notice: reject this ideology or face swift justice in American courts. It is fitting that the first ISIL conviction case is here in the Eastern District of New York, which has prosecuted more terrorism cases than any other district in the country. It is to them—and the many others on the Joint Terrorism Task Force—that New Yorkers owe their gratitude for the relentless efforts to keep our city safe,” said Police Commissioner Bratton.
At trial, the government presented evidence that, prior to traveling overseas to try to join ISIL, the defendant served in the U.S. Air Force as an avionics instrument system specialist and received training in the installation and maintenance of aircraft engines, navigation, and weapons systems. After leaving the Air Force, the defendant worked for a number of companies in the United States and Middle East as an airplane mechanic. The defendant lived abroad for over a year before his arrest in this case.
On January 10, 2015, the defendant traveled from Egypt to Turkey in an effort to cross the border into Syria to join ISIL to engage in violent “jihad.” Turkish authorities denied the defendant entry, however, and returned him to Egypt. At the time of his detention, the defendant was carrying a laptop computer and four USB thumb drives that he had stripped of their plastic casings in an effort to destroy their contents and thereby make them unavailable to investigators. The defendant also was carrying solar power chargers, compasses, and a black ski mask. Foreign government officials quickly deported the defendant to the United States, where the FBI closely monitored him, relying in part on a covert undercover employee who encountered the defendant at John F. Kennedy airport. The defendant was arrested on January 16, 2015, in Asbury Park, New Jersey, and thereafter indicted in the Eastern District of New York.
At trial, the government presented evidence obtained from the defendant’s laptop computer and social media posts, among other exhibits. The defendant’s laptop contained Internet searches for “borders controlled by Islamic state.” The government also introduced evidence of the defendant’s Internet searches for “Flames of War” (an ISIL propaganda video) as well as terrorist videos he had downloaded, including one horrific video showing ISIL members executing prisoners. In addition, statements to coworkers and social media posts established the defendant’s empathy and support for ISIL’s cause and terrorist methods.
The government also introduced into evidence at trial a letter, drafted by the defendant on January 5, 2015, shortly before he left Egypt for Turkey on his way to Syria. In that letter, the defendant proclaimed, “I am a Mujahid. I am a sword against the oppressor and a shield for the oppressed. I will use the talents and skills given to me by Allah to establish and defend the Islamic State. There is only 2 possible outcomes for me. Victory or Martyr.”
Based on his trial convictions, the defendant faces a maximum sentence of up to 35 years in prison.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Samuel P. Nitze, Tiana A. Demas, and Mark Bini are in charge of the prosecution, with assistance provided by Trial Attorney Larry Schneider of the Counterterrorism Section of the Department of Justice.
The Defendant:
TAIROD NATHAN WEBSTER PUGH
Age: 48
Neptune, New JerseyE.D.N.Y. Docket Nos. 15-CR-116 (NGG)
Jacksonville Man Sentenced to 151 Months for Receipt of Child PornographyRead the Press Release
WILMINGTON – The United States Attorney’s Office for the Eastern District of North Carolina announced that today in federal court, Senior United States District Judge James C. Fox sentenced RONALD LESLIE PIERCE, Jr., 53, of Jacksonville, North Carolina, to 151 months imprisonment, followed by 10 years of supervised release.
RONALD LESLIE PIERCE, JR. was named in an eleven count Indictment filed on March 3, 2015, charging him with receipt and possession of child pornography. On November 2, 2015, PIERCE pled guilty to possession of child pornography and on November 9, 2015, PIERCE pled guilty to receipt of child pornography.
On November 6, 2013, Detectives with the Cabarrus County Sheriff’s Office identified a suspect computer sharing child pornography via an internet peer to peer file sharing network. Detectives were able to identify the IP address from the suspect computer to PIERCE and were able download images of child pornography from PIERCE. Agents with the SBI subsequently searched the computers and other devices from the defendant’s Jacksonville, North Carolina home, revealing that PIERCE had downloaded thousands of images and videos of child pornography.
Investigation of this case was conducted by the State Bureau of Investigation and the Cabarrus County Sheriff’s Office. Assistant United States Attorney Carrie Randa represented the government.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Irving, Texas, Man Sentenced to 216 Months in Federal Prison for Transporting Child PornographyRead the Press Release
DALLAS — A Irving, Texas, man was sentenced this morning by Chief U.S. District Judge Jorge A. Solis to 216 months in federal prison and 10 years supervised release on a child pornography conviction, announced U.S. Attorney John R. Parker of the Northern District of Texas.
Josue Osorio-Canales, 30, entered a plea of guilty in July 2015 to one count of transporting child pornography.
According to documents filed in the case, between January 31, 2015 and February 14, 2015 law enforcement identified a computer on a network sharing child pornography. A search warrant was executed on June 2, 2015. The analysis of the computer revealed over 1,400 videos and 21,000 images of child pornography.
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.”
Homeland Security Investigations (HSI) and the Plano Police Department Investigated. Assistant U.S. Camille Sparks prosecuted.
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Indictment: California Truck Driver Transported 15 Pounds of Meth to WichitaRead the Press Release
TOPEKA, KAN. - A truck driver from California was indicted Wednesday on a federal charge of transporting 15 pounds of methamphetamine to Wichita, U.S. Attorney Barry Grissom said.
Arnoldo Perez-Ortega, 33, Fontana, Calif., is charged with one count of possession with intent to distribute methamphetamine. According to court documents, police stopped Perez-Ortega’s truck on March 6, 2015, near I-235 and Central. In the truck, officers found approximately15.75 pounds of methamphetamine.
If convicted, he faces a penalty of not less than 10 years and a fine up to $250,000. The Wichita Police Department investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
OTHER GRAND JURY INDICTMENTS
Scott L. Kemble, 44, who is being held in the Shawnee County Jail, is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Feb. 3, 2016, in Shawnee County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Tony Mattivi is prosecuting.
Kyler D. Hubert, 24, Topeka, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Feb. 6, 2016, in Topeka, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
Maximo Corral-Garcia, 38, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found March 4, 2016, in Butler County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indictment Unsealed in Methamphetamine-Trafficking ConspiracyRead the Press Release
U.S. Attorney Kenneth A. Polite announced today’s unsealing of an indictment charging seven defendants in a methamphetamine-trafficking conspiracy. The indicted defendants are TYLER CONNER, age 25, of Austin, Texas, MELVIN STEEN, aka “Skeet,” age 34, of Slidell, Louisiana, ALLEN GAUTREAUX, age 35, of Lockport, Louisiana, AARON SHEEHAN, age 29, of Brooklyn, Mississippi, RYAN ELLENDER, age 39, of New Orleans, Louisiana, JOSEPH MISALE, aka “Potter,” age 31, of New Orleans, and JEREME VAUGHN, age 36, of New Orleans.
According to the one-count Indictment, defendants CONNER and VAUGHN are charged with conspiring to distribute and possess with intent to distribute 50 grams or more of a mixture and substance containing methamphetamine. If found guilty of this charge, CONNER and VAUGHN face a mandatory minimum of 5 years of imprisonment, a maximum 40 years of imprisonment, a $5,000,000 fine, and at least 4 years of supervised release.
Defendants STEEN, GAUTREAUX, SHEEHAN, ELLENDER, and MISALE are charged with conspiring to distribute and possess with intent to distribute a quantity of a mixture and substance containing methamphetamine. If found guilty of this charge, STEEN, GAUTREAUX, SHEEHAN, ELLENDER and MISALE face a maximum 20 years of imprisonment, a $1,000,000 fine, and at least 3 years of supervised release.
U. S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration (“DEA”) and the Louisiana State Police (“LSP”) in investigating this matter. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
Iberia Parish, Louisiana, Sheriff and Lieutenant Colonel Charged in Conspiracy to Assault InmatesRead the Press Release
Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Stephanie A. Finley of the Western District of Louisiana announced today that Iberia Parish, Louisiana, Sheriff Louis Ackal and Lieutenant Colonel Gerald Savoy were charged with civil rights violations arising out of the beatings of five pre-trial detainees at the Iberia Parish Jail (IPJ) on April 29, 2011. Ackal is charged with one count of conspiracy against rights and two counts of deprivation of rights under color of law, and Savoy is charged with one count of conspiracy against rights and one count of deprivation of rights under color of law.
The indictment alleges that Ackal and Savoy conspired with each other and with other officers to assault five inmates, identified by the initials C.O., S.S., A.T., A.D. and H.G., and that members of the conspiracy failed to intervene and stop the assaults.
Eight former Iberia Parish Sheriff Office employees previously entered guilty pleas in related cases before U.S. District Judge Patricia Minaldi of the Western District of Louisiana. The eight officers are former IPJ Warden Wesley Hayes, former IPJ Assistant Warden Jesse Hayes, former Lieutenant Bret Broussard of the Narcotics Unit, former narcotics agent Wade Bergeron, former narcotics agent Jason Comeaux, former narcotics agent David Hines, former narcotics agent Byron Benjamin Lassalle and former K-9 handler Robert Burns.
An indictment is merely an allegation, and the defendants are presumed innocent until proven guilty. If convicted, Ackal and Savoy each face a maximum sentence of 10 years in prison for each of the civil rights violations, as well as a potential $250,000 fine for each count.
The case is being investigated by the FBI’s Lafayette Resident Agency. The case is being prosecuted by Assistant U.S. Attorney Joseph G. Jarzabek of the Western District of Louisiana, Special Litigation Counsel Mark Blumberg and Trial Attorney Tona Boyd of the Civil Rights Division’s Criminal Section.
Ackal and Savoy Indictment
Houston Woman Heads to Federal Prison for Defrauding Former EmployerRead the Press Release
HOUSTON – A former employee of United Transport Tankcontainers Inc. (UTT) has been ordered to federal prison following her conviction of wire fraud, announced U.S. Attorney Kenneth Magidson. Marcella Jones aka Marcella Jones-Hatch, 45, of Houston, pleaded guilty Oct.6, 2015, admitting she caused a loss of nearly $1.8 million to her former employer.
Today, U.S. District Judge David Hittner, who accepted the guilty plea, handed Hatch a 78-month sentence to be immediately followed by three years of supervised release. She was further ordered to pay $1,796,945.67 in restitution. In handing down the sentence, Judge Hittner noted the defendant’s prior criminal history.
Hatch was hired in the accounting department at UTT in 2007. As part of her plea, she admitted that between July 2008 and August 2014, she executed a scheme to defraud her former employer. As part of her scheme, she created fraudulent payment requests and submitted them to UTT. As a result, the company then sent the payments to her personal bank account which she used for her own personal benefit. The estimated total losses to UTT as a result of the scheme was $1,796,945.67.
Hatch will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of an investigation by the Secret Service. Assistant U.S. Attorney John Braddock is prosecuting the case.
Houston Woman Heads to Federal Prison for Defrauding Former EmployerRead the Press Release
HOUSTON – A former employee of United Transport Tankcontainers Inc. (UTT) has been ordered to federal prison following her conviction of wire fraud, announced U.S. Attorney Kenneth Magidson. Marcella Jones aka Marcella Jones-Hatch, 45, of Houston, pleaded guilty Oct.6, 2015, admitting she caused a loss of nearly $1.8 million to her former employer.
Today, U.S. District Judge David Hittner, who accepted the guilty plea, handed Hatch a 78-month sentence to be immediately followed by three years of supervised release. She was further ordered to pay $1,796,945.67 in restitution. In handing down the sentence, Judge Hittner noted the defendant’s prior criminal history.
Hatch was hired in the accounting department at UTT in 2007. As part of her plea, she admitted that between July 2008 and August 2014, she executed a scheme to defraud her former employer. As part of her scheme, she created fraudulent payment requests and submitted them to UTT. As a result, the company then sent the payments to her personal bank account which she used for her own personal benefit. The estimated total losses to UTT as a result of the scheme was $1,796,945.67.
Hatch will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of an investigation by the Secret Service. Assistant U.S. Attorney John Braddock is prosecuting the case.
Honduran Man Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that HECTOR ORLANDO RECATE REYES, age 30, a citizen of Honduras, pled guilty today to a one-count Indictment that charged him with illegal reentry of a removed alien.
According to court documents, RECATE-REYES reentered the United States after having been previously deported on August 8, 2012.
RECATE-REYES faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment. U.S. District Judge Ivan L.R. Lemelle set sentencing for May 25, 2016.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Henrico County Man Sentenced to 37 Years for Gun and Drug CrimesRead the Press Release
RICHMOND, Va. – Nelson Watts Broadie, Jr., 21, of Henrico County, was sentenced today to 447 months in prison for six separate offenses, including, possession of a firearm and ammunition by a previously convicted felon, possession and distribution of crack cocaine, and possession and brandishing of a firearm in furtherance of a drug trafficking crime.
Broadie, Jr., was found guilty by a federal jury on Dec. 3, 2015. According to court documents, on June 27, 2015, Broadie participated in an armed robbery of a person at his home and discharged his 9mm firearm during that robbery attempt. Evidence presented also confirmed that between July 15 and July 24, 2015, Broadie possessed the same loaded 9mm semiautomatic pistol. On July 15, 20, and 21, 2015, Broadie sold crack cocaine to a confidential informant while under surveillance, and during the July 20, and 21, 2015 sales, Broadie sold the crack cocaine to the confidential informant while under surveillance, and while unlawfully possessing and brandishing the same firearm identified above, in order to intimidate that drug customer.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; and Douglas A. Middleton, Chief of Police for the Henrico County Police Division, made the announcement after sentencing by U.S. District Judge Henry E. Hudson.
This case was investigated by officers and detectives with the Henrico County Police Division in conjunction with the FBI’s Central Virginia Violent Crime Task Force. Assistant U.S. Attorney S. David Schiller prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-137.
Greenwood Home Builder Indicted for Mortgage FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Greenwood, Mo., home builder has been indicted by a federal grand jury for a multi-million dollar mortgage fraud scheme.
Gary Bryan Penrod, 52, of Greenwood, was charged in a 22-count indictment returned by a federal grand jury in Kansas City, Mo., on Tuesday, March 8, 2016.
The federal indictment alleges that Penrod, doing business as Penrod Homes, Inc., engaged in a scheme to defraud mortgage lenders from May 2005 to June 2007. Penrod and others allegedly recruited buyers to apply for mortgage loans to purchase dozens of homes in Greenwood and Peculiar, Mo.
According to the indictment, almost all of the loans funded as part of the scheme defaulted and the properties were foreclosed upon, causing millions of dollars in loss. During the scheme, the indictment says, approximately 61 properties built and sold by Penrod went into foreclosure. Of these, illegal kickbacks allegedly were paid on 57 of the homes sold; the amount of the kickbacks totaled approximately $1.5 million and the losses to banks and/or mortgage companies associated with the 61 foreclosures was approximately $4.5 million dollars. However, a majority of these loans were not made by FDIC-insured financial institutions.
Penrod allegedly told prospective buyers that they would receive money back that could be used for closing costs, down payments, or mortgage payments. According to the indictment, this was concealed from the mortgage lenders, who were instead told that the buyers were using their own money. With the participation and aid of real estate or mortgage brokers, the indictment says, buyers caused false sales agreements, false loan applications, false supporting documents, and false settlement and closing documents to be submitted to the mortgage lenders. In many cases, the applications falsely overstated buyers’ incomes, assets and intent to actually live in the home. Penrod allegedly also caused settlement and closing documents to be submitted that falsely represented the terms of the proposed transactions, including the true purchase prices of the properties and the concealed kickback payments that were to be made.
Shortly after the sales, the indictment says, Penrod kicked back to the home buyer monies not reported on the sales or loan documents, which he called “builder rebates” or “share of profits.” Penrod delivered the checks himself, the indictment says, or he would have others deliver them, or have the buyer pick up the check from his office. The memo lines for these checks allegedly contained notations with phrases such as “consultation fee,” “fee,” “reimb.,” “Reimb Material,” “Materials” and “closing.” No consulting services were performed nor were materials cost paid or reimbursed, according to the indictment.
In addition to the kickbacks, Penrod allegedly made payments outside of the closing of commissions for the sales of the properties and finders-fees to individuals who brought in home buyers, which were not reported to the lender.
The federal indictment charges Penrod with 16 counts of wire fraud and six counts of mail fraud.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Senior Litigation Counsel Gregg R. Coonrod. It was investigated by the FBI.
Gloucester County, New Jersey, Man Admits Role in 2015 South Jersey Bank Robbery SpreeRead the Press Release
CAMDEN, N.J. – A Deptford, New Jersey, man today admitted robbing five New Jersey banks and one Pennsylvania bank between June 2015 and September 2015, U.S. Attorney Paul J. Fishman announced.
Michael A. Fanelli, a/k/a Michael Carducci, 36, pleaded guilty before U.S. District Judge Reneé Marie Bumb in Camden federal court to an information charging him with six counts of bank robbery.
According to documents filed in this case and statements made in court, Fanelli robbed the following banks on the dates set forth below:
Bank
Location
Date
Cornerstone Bank
West Deptford, New Jersey
June 2, 2015
Fulton Bank
Mullica Hill, New Jersey
June 5, 2015
Malvern Federal Savings Bank
Concordville, Pennsylvania
July 22, 2015
Susquehanna Bank
Mullica Hill, New Jersey
July 28, 2015
Susquehanna Bank
Mullica Hill, New Jersey
Aug. 21, 2015
National Penn Bank
Florence, New Jersey
Sept. 24, 2015
Fanelli typically robbed each bank by approaching a teller, displaying what appeared to be a firearm, and demanding money.
Fanelli robbed the same Susquehanna Bank on July 28, 2015 and August 21, 2015. Immediately following his robbery of National Penn Bank on Sept. 24, 2015, Fanelli was followed by law enforcement officers to his residence, where he was taken into custody.
Each bank robbery count carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is set for June 17, 2016.
U.S. Attorney Fishman credited special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge William F. Sweeney in Philadelphia, with the investigation leading to today’s plea. He also thanked the West Deptford, Harrison Township, and Florence Township police departments, as well as the Gloucester County Prosecutor’s Office and the Pennsylvania State Police for their assistance.
The government is represented by Assistant U.S. Attorney Justin C. Danilewitz of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Lisa Lewis Esq., Assistant Federal Public Defender
Fraud Charges Filed Against Erie Storeowner following USDA and Erie Police InvestigationRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of theft of government property and food stamp fraud, United States Attorney David J. Hickton announced today.
The four-count indictment named Jasmin Omanovic, 35, of Erie, Pennsylvania, as the sole defendant.
According to the indictment presented to the court, from October 2011 to February 2015, Omanovic, who is the owner and operator of International Market in Erie, committed food stamp fraud by exchanging food stamps for cash at fifty percent of face value and ineligible items. He also allowed customers to pay off store debt with food stamps and he took customers’ EBT cards and used them at Walmart to restock his shelves.
The law provides for a maximum total sentence of 25 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The United States Department of Agriculture, Office of Inspector General and the Erie Bureau of Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Four Individuals Charged in $7 Million Car Loan Scheme Involving Dealerships Throughout the New York City AreaRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a complaint charging JULIO ALVAREZ, CHRISTOPHER CAMPOS, MARCO BLASIO, and GEURIS RAMOS with bank and wire fraud charges for perpetrating a scheme to fraudulently obtain millions of dollars in car loans. The defendants used at least 20 straw buyers to obtain more than 200 new automobiles based on false representations that, among other things, the straw buyers would use the cars for their personal use when, in fact, the defendants obtained the vehicles in order to lease them to livery cab drivers. ALVAREZ, CAMPOS, BLASIO, and RAMOS were arrested this morning and will be presented later today before Magistrate Judge Kevin Nathaniel Fox.
Manhattan U.S. Attorney Preet Bharara stated: “As alleged, the defendants carried out a scheme to obtain millions of dollars in loans under false pretenses at the expense of financial institutions who were deceived into funding the purchase of more than 200 new vehicles. Thanks to the efforts of our partners at the FBI, these defendants will now be held to account for their criminal misconduct.”
FBI Assistant Director-in-Charge Diego Rodriguez stated: “The charges announced today describe a scheme in which the defendants allegedly benefitted from fraudulently obtained car loans. The funding was used by the defendants and their co-conspirators to finance the purchase of more than 200 new automobiles. The cost of these loans, which ultimately went into default, will eventually be transferred to ordinary citizens seeking financial assistance. We take these crimes very seriously as we continue to seek out those who exploit the lending industry.”
According to the allegations contained in the Complaint[1] unsealed today in Manhattan federal court:
Between approximately October 2012 and September 2013, ALVAREZ, CAMPOS – who was a practicing attorney, BLASIO, and RAMOS orchestrated a scheme to fraudulently obtain new automobiles that ALVAREZ, CAMPOS, and RAMOS, among others, intended to lease to livery cab drivers. In order to secure financing in connection with the purchase of these new cars without having to pay the higher interest rates typically charged for commercial vehicles or borrow the cost of the vehicles based on their own ability to pay, ALVAREZ and CAMPOS enlisted and aided individuals with good credit histories (“straw buyers”) to submit fraudulent car loan applications to numerous lenders. In order to obtain the new vehicles, the defendants sent straw buyers, including RAMOS, to several car dealerships located throughout the New York City area, where dealership employees, including BLASIO, helped straw buyers submit fraudulent loan applications.
The auto loan applications submitted by the straw buyers falsely represented that the vehicles would be used for the buyers’ personal use, rather than as part of the defendants’ leasing business. In addition, in many cases, the car loan applications misrepresented personal information about the straw buyers, including their incomes and assets. ALVAREZ, CAMPOS, BLASIO, and RAMOS also caused financing applications to be sent to multiple financial institutions at the same time so that the lenders would not know that the straw buyers were incurring obligations to other lenders in connection with the purchase of multiple new automobiles.
In total, the scheme carried out by ALVAREZ, CAMPOS, BLASIO, and RAMOS, among others, involved at least approximately 20 straw purchasers, the purchase of more than approximately 200 new vehicles, and more than $7,000,000 in fraudulently obtained loans from a variety of financial institutions. Most of the loans ultimately went into default.
* * *
ALVAREZ, 47, of Fort Lee, New Jersey, CAMPOS, 39, of Fort Lee, New Jersey, BLASIO, 52, of Commack, New York, and RAMOS, 38, of Bronx, New York, are each charged with one count of conspiracy to commit bank and wire fraud, which carries a maximum sentence of 30 years in prison, one count of bank fraud, which carries a maximum sentence of 30 years in prison, and one count of wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the investigative work of the FBI, and noted that the investigation remains ongoing.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. For additional information, go to:
http://www.usdoj.gov/usao/nys/victimwitness.html
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Niketh Velamoor and Sidhardha Kamaraju are in charge of the prosecution.
The charges contained in the Complaint 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 Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Former vice president of health care company charged with fraud scheme worth over $7.5 millionRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that DAVID MICHAEL PITTS, age 41, has been charged in a Bill of Information with wire fraud in connection with an alleged scheme to defraud Amedisys, Incorporated, a home health and hospice care company with a substantial presence in Baton Rouge, Louisiana. PITTS is accused of stealing $7,641,528 from Amedisys, which annually furnishes home health services to approximately 380,000 patients in 37 states, the District of Columbia, and Puerto Rico.
According to the Bill of Information, PITTS was the Vice President of Tax for Amedisys for the period January 2005 through July 2014. In this role, PITTS was responsible for all corporate tax matters, including the preparation of state and federal tax returns and the payment of state income taxes in the various states where Amedisys operated its business. The Bill of Information alleges that PITTS had the authority and ability to purchase tax credits for the purpose of executing his duty of reducing and paying state income taxes in the various states where Amedisys did business.
The Bill of Information alleges that PITTS engaged in a scheme to defraud Amedisys from October 2006 through May 2014 through an elaborate scheme involving shell entities and fictitious film tax credits. According to the Bill of Information, as part of the scheme, PITTS created a counterfeit company named “Stonehenge Entertainment” for the purpose of selling false and fictitious “Tax Credit Transfer Agreements” to Amedisys. PITTS allegedly used this company name because it closely resembled the name of a legitimate company with which Amedisys did business. PITTS also allegedly created an entity known as “Evergreen Incentives” for the purpose of selling false and fictitious “Tax Credit Transfer Agreements” to Amedisys.
In order to carry out his scheme, PITTS allegedly opened and maintained a bank account at Capital One Bank, N.A. for Stonehenge Entertainment and a separate account at Regions Bank for Evergreen Incentives. PITTS allegedly created false and fictitious “Tax Credit Transfer Agreements” and used his position as Vice President of Tax to present the false and fictitious Tax Credit Transfer Agreements to his corporate supervisors for approval, falsely representing them to be valid tax credits. Once approved, PITTS then allegedly purchased the false and fictitious Tax Credit Transfer Agreements on behalf of Amedisys.
According to the Bill of Information, in order to personally benefit from the sale of false and fictitious tax credits to Amedisys, PITTS caused electronic banking transfers to divert funds from an Amedisys account at JPMorgan Chase Bank to his accounts at Capital One Bank and Regions Bank for his personal enrichment. During the period October 3, 2006 through May 16, 2014, PITTS allegedly caused Amedisys to make 21 wire transfers totaling $7,641,528 to accounts which he controlled, and for his personal enrichment.
This matter is being handled by the United States Attorney’s Office for the Middle District of Louisiana. The investigation has been conducted by the Baton Rouge Resident Office of the Federal Bureau of Investigation, with substantial assistance provided by the victim, Amedisys, Inc. The matter is being prosecuted by Assistant United States Attorney René Salomon.
NOTE: A Bill of Information is an accusation made by the United States Attorney. The defendant is presumed innocent until and unless adjudicated guilty through a guilty plea or trial.
Former Mexican Mayor Sentenced to over 21 Years in Prison for Operating an Arizona Based Drug Trafficking OrganizationRead the Press Release
PHOENIX – On March 7, 2016, Arturo Reyes Trujillo, 43, of Agua Prieta, Sonora, Mexico, was sentenced to 262 months in prison by U.S. District Judge Neil V. Wake. Trujillo was elected municipal president (mayor) in Fronteras, Sonora, Mexico in 2012. He was arrested on Sept. 6, 2012, and previously pleaded guilty to conspiracy to possess with intent to distribute cocaine and conspiracy to commit money laundering. In total, Trujillo was involved in sending approximately 1,000 kilograms of cocaine throughout the United States and laundered approximately $20 million.
According to the plea agreement, from about Jan. 1, 2003, to July 28, 2007, the defendant (who was then living in Tucson) was the head of the drug trafficking organization that hired a network of individuals to deliver multi-hundred kilogram shipments of cocaine, using passenger cars and tractor-trailer trucks, throughout the United States. The organization also brought back to Arizona millions of dollars in proceeds from cocaine sales. Law enforcement authorities seized over 77 kilograms of cocaine and over $490,000 in drug proceeds.
“The lengthy sentence in this case reflects our office’s commitment to aggressively prosecute cross-border drug trafficking,” stated Acting U.S. Attorney Elizabeth Strange. “The underlying investigation also exemplifies the fine work that is routinely done by our law enforcement partners on the Organized Crime Drug Enforcement Task Force.”
“Arturo Reyes Trujillo preyed upon the addiction of American citizens to enrich himself and his friends by selling cocaine and laundering the illegal proceeds gained from these crimes,” said DEA Special Agent in Charge Doug Coleman. “His lengthy sentence shows that DEA and our partners will never relent in our mission to protect the American people from the scourge of drug trafficking and abuse, and bring those responsible to face justice in United States court rooms.”
“The defendant operated a transnational organized criminal group that was responsible for the laundering of millions of dollars in drug proceeds. IRS-CI is proud to work with the DEA and our other law enforcement partners to dismantle these drug organizations by tracing, disrupting, and seizing the flow of their money,” stated IRS-Criminal Investigation Special Agent in Charge Ismael Nevarez Jr.
The investigation in this case was conducted by agencies participating in the Organized Crime Drug Enforcement Task Force. The lead agencies were the U.S. Drug Enforcement Administration and Internal Revenue Service-Criminal Investigation. Additionally, we would like to recognize the Government of Mexico for their assistance with the extradition and the Office of International Affairs for their assistance in this case. The prosecution was handled by Keith Vercauteren and Krissa Lanham, Assistant U.S. Attorneys, District of Arizona, Phoenix.
NUMBER: CR-18-0001-PHX-NVW
RELEASE NUMBER: 2016-019_Trujillo
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Former Greenwich Resident Sentenced to 6 Years in Federal Prison for Sex Trafficking of MinorsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that SHEENA DUME, 23, formerly of Greenwich, was sentenced yesterday by U.S. District Judge Janet Bond Arterton in New Haven to 72 months of imprisonment, followed by 10 years of supervised release, for sex trafficking of minors.
According to court documents and statements made in court, DUME assisted a sex trafficking enterprise headed by Wellington Brown, also known as “Jamal.” As part of the sex trafficking enterprise, Brown and DUME used various manipulative tactics to recruit five different minor victims to engage in prostitution. Brown drove expensive vehicles and displayed jewelry and cash to his victims, and lured them with the prospect of making significant amounts of money. Brown recruited some victims with the fictitious prospect of a modeling career.
Brown took pictures of the minor victims and used them to advertise prostitution services on websites such as backpage.com. Brown and DUME covered the expenses of the prostitution operation, such as renting hotel rooms, providing transportation and condoms, and buying food for the victims. At times, Brown also provided marijuana to the minor victims.
The investigation revealed that the victims engaged in prostitution at various hotels in Stratford and Milford. The victims provided Brown with tens of thousands of dollars they earned through prostitution and received only a small portion of the money they made.
Brown and DUME were arrested in Maryland on July 30, 2014. On February 18, 2015, DUME pleaded guilty to one count of conspiracy to commit sex trafficking of a minor, and five counts of sex trafficking of a minor. She has been detained since her arrest.
On March 26, 2015, Brown pleaded guilty to the same six offenses. On February 11, 2016, he was sentenced to 126 months of imprisonment.
This matter was investigated by the Federal Bureau of Investigation, aided by the Milford Police Department, the Stratford Police Department and the Connecticut State Police. U.S. Attorney Daly also recognized the significant assistance provided by the Connecticut Department of Children and Families, particularly its Human Anti-Trafficking Response Team (“HART”).
This case was prosecuted by Assistant U.S. Attorneys David Novick and Marc Silverman.
U.S. Attorney Daly encouraged trafficking victims, and anyone who comes in contact with potential victims of trafficking, to call the National Human Trafficking Resource Center Hotline at 888-373-7888. The hotline is run by the Polaris Project under a federal grant. Hotline operators are trained to identify potential trafficking situations, and will immediately refer tips to law enforcement. Individuals also can send an email to [email protected].
Trafficking victims also are encouraged to send a text message to “BEFREE” to receive an immediate response and help from the National Human Trafficking Resource Center.
Former Employee of Timeshare Consulting Firm Sentenced to 15 Months in Prison for Conspiring to Defraud Timeshare OwnersRead the Press Release
CAMDEN, N.J. – A former employee of The Vacation Ownership Group LLC was sentenced today to 15 months in prison for his role in conspiring to defraud owners of timeshare properties by offering phony consulting services, U.S. Attorney Paul J. Fishman announced.
Steven Cox, a/k/a “Steve Coluzzi,” 52, of Ventnor, N.J., pleaded guilty on May 7, 2013, before U.S. District Judge Noel Hillman to a superseding information charging him with one count of conspiracy to commit mail and wire fraud. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in these cases and statements made in court:
The Vacation Ownership Group, a/k/a VO Group LLC, had offices in Mays Landing and Egg Harbor Township, New Jersey, and claimed to offer consulting services to owners of timeshares, including cancelling, purchasing and upgrading the timeshares.
In 2010, Cox and several co-defendants started working at the VO Group and were trained by VO Group managers to call customers using prepared scripts. The defendants gave the customers the false impression that they were working for a bank or lending institution. After hearing defendants’ false representations, some customers sent checks to the VO Group. Cox told one victim that the victim could settle his timeshare debt for a large discount by mailing a $26,585 check to the VO Group. Cox admitted causing more than $200,000 in losses.
In addition to the prison term, Judge Hillman sentenced Cox to three years of supervised release. Restitution will be determined at a future hearing.
U.S. Attorney Fishman credited special agents from the FBI’s Atlantic City Resident
Agency, under the direction of Acting Special Agent in Charge Andrew Campi in Newark; and special agents from the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia, New York Region, for their roles in the investigation leading to the guilty pleas. He also thanked the N.J. Department of Labor, Benefit Payment Control Unit, for its assistance.
The government is represented by Assistant U.S. Attorney R. David Walk, Jr. of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Jeffrey M. Miller Esq., Philadelphia
Former Economic Development Employee Sentenced for Receiving Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former employee of the South Central Ozarks Council of Governments was sentenced in federal court today for receiving child pornography on his worksite computer.
Steven Gregary Reed, 37, of West Plains, Mo., was sentenced by U.S. District Judge M. Douglas Harpool to six years and six months in federal prison without parole.
Reed, who pleaded guilty on Sept. 8, 2015, was employed at the time of the offense as the coordinator of solid waste management with the South Central Ozarks Council of Governments, an economic development organization for seven counties in the south central region of Missouri (Douglas, Howell, Oregon, Ozark, Shannon, Texas, and Wright Counties), which is headquartered in Pomona, Mo.
A law enforcement officer with the Southwest Missouri Cyber Crime Task Force was investigating unlawful Internet usage and noticed that a certain computer had over 100 files of suspected child pornography. The officer continued to monitor the computer for several months and noticed the computer to be on a peer-to-peer file-sharing network on a regular basis, searching for child pornography. The computer was assigned to the South Central Ozarks Council of Governments.
On Oct. 29, 2014, law enforcement officers executed a search warrant at the office and determined that the desktop computer used by Reed was the computer identified in their investigation. Reed admitted to officers that he had watched child pornography the night before the execution of the search warrant. Reed viewed child pornography on a regular basis at work and home. Reed stated that he never downloaded child pornography at home but he did at work. He admitted to placing downloaded child pornography on a flash drive that he kept in his car. He added that he looked at child pornography on his work computer and often downloaded child pornography on his work computer.
Reed had approximately 131 movies and 126 graphic images of child pornography on his work computer.
This case was prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the FBI, the Missouri State Highway Patrol and the Howell County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Deputy U.S. Marshal Sentenced to 10 Years in Prison for Yuba City Armed Robbery of Marijuana DealersRead the Press Release
SACRAMENTO, Calif. — Clorenzo Griffin, 38, of Fort Lauderdale, Florida, was sentenced today to 10 years in prison for planning and participating in the robbery of marijuana from drug dealers in Yuba City, United States Attorney Benjamin B. Wagner announced.
In sentencing Griffin, United States District Judge Kimberly J. Mueller noted that the defendant was very lucky that nothing worse happened on the day of his arrest. Judge Mueller had earlier sentenced Griffin’s co-conspirators, Andre Jamison, 40, of Miami, Florida, to seven years and three months in prison and crew member Rodney Rackley, 24, of Miami, Florida, to six years in prison.
According to court documents, on October 11, 2014, a CHP officer in Sutter County attempted to stop a speeding Jeep Patriot. Griffin, with his co-conspirators as passengers, was the driver of the rented Jeep and drove evasively. As the pursuing CHP officer drew closer, Griffin drew his firearm. This caused a Sutter County Sheriff’s deputy to fire at Griffin in order to halt his aggression toward the pursuing CHP officer. The three defendants eventually abandoned the vehicle in a parking lot on Starr Drive and fled on foot. The defendants were subsequently taken into custody with the assistance of the Sutter County Sheriff’s deputies. At the time of his arrest, Griffin possessed a loaded .40-caliber firearm. Further investigation revealed that Griffin was a deputy U.S. Marshal from South Florida.
Court documents further indicate that before fleeing from the CHP, Griffin, Rackley and Jamison, wearing police ballistic vests, had brandished firearms and robbed three individuals at gunpoint of approximately 24 pounds of marijuana. The robbery took place in the parking lot of a hotel off State Route 99 in Yuba City.
“Violence relating to marijuana trafficking is a serious problem in this region, but it is particularly deplorable when the conduct involves a rogue member of federal law enforcement,” said U.S. Attorney Wagner. “Mr. Griffin not only endangered the public by his conduct, but he abused the public trust placed in federal law enforcement by using his service firearm to commit the crime.”
This case was the product of an investigation by the Drug Enforcement Administration, the California Highway Patrol, the Sutter County Sheriff’s Office, the Yuba City Police Department, and the Sutter County District Attorney’s Office. Assistant United States Attorney Jason Hitt prosecuted the case.
Florida Investor Who Made More Than $250,000 from Insider Trading Scheme Pleads GuiltyRead the Press Release
TRENTON, N.J. - A Florida man today admitted trading on material, nonpublic information concerning Gilead Sciences Inc.’s $11 billion acquisition of New Jersey-based Pharmasset Inc., U.S. Attorney Paul J. Fishman announced.
Jay Fung, 42, of Delray Beach, Florida, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with conspiracy to commit securities fraud.
According to documents filed in this case and statements made in court:
In November 2011, a conspirator who worked at a global wealth management firm learned that Pharmasset was going to be sold for a significant profit per share. On Nov. 18, 2011, the conspirator passed the inside information to Fung, who then purchased call options and shares of Pharmasset.
On Nov. 21, 2011, Gilead publicly announced that it had entered into an agreement to acquire Pharmasset for approximately $11 billion, or $137 per share in cash. The purchase price represented an approximately 89 percent premium over Pharmasset’s closing price of $72.67 on Nov. 18, 2011.
Following the public announcement of Gilead’s acquisition of Pharmasset, Fung sold the Pharmasset shares and options he had purchased on Nov. 18, 2011, for total illegal profits of more than $250,000.
Fung faces a maximum penalty of five years in prison and a $250,000 fine, or twice the profits from the offense. Per his plea agreement, Fung must also consent to the entry of a forfeiture money judgment in the amount of $345,245. Sentencing is set for June 20, 2016.
The U.S. Securities and Exchange Commission (SEC) filed a civil complaint against Fung today.
U .S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge Andrew Campi in Newark, with the investigation leading to today’s plea. He also thanked the SEC for the assistance provided by its Market Abuse Unit, under the direction of Joseph Sansone and Robert Cohen, and its Philadelphia Regional Office, under the direction of Sharon Binger.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit.
Today’s plea is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov
Defense counsel: Jeffrey L. Cox, Boca Raton, Florida
First of Three Co-Defendants Sentenced in Gun Trafficking CaseRead the Press Release
WILMINGTON – The United States Attorney’s Office for the Eastern District of North Carolina announced that today in federal court, Senior United States District Judge James C. Fox sentenced AHKEEM DONTE PRATT, 24, to 188 months imprisonment, followed by 3 years of supervised release.
AHKEEM DONTE PRATT and two co-defendants were named in a seventeen count Indictment filed on March 24, 2015, charging him with conspiracy, theft of firearms from Federal Firearms Licensees, possession of stolen firearms, possession of a firearm by a convicted felon, interstate transportation of stolen firearms, and dealing in firearms without a license. On November 30, 2015, PRATT pled guilty to conspiracy, theft of firearms from a Federal Firearms Licensee, possession of a firearm by a convicted felon, and interstate transportation of stolen firearms.
According to the investigation, beginning in August, 2014, and continuing until December 5, 2014, PRATT and two co-defendants broke into numerous Federal Firearm Licensees around Eastern and Central North Carolina, stealing almost 200 firearms. PRATT and his co-defendants used various tools, including bolt cutters and hammers, to gain entry into such businesses to steal the firearms. Most of these incidents were captured on store surveillance video. Agents were able to obtain DNA from one of the tools left behind at the scene of a robbery and it matched a co-defendant. On two occasions PRATT and others drove to New Jersey and sold the stolen firearms to a third party. The stolen firearms were ultimately recovered from crime scenes in North Carolina, Pennsylvania, Maryland, and New Jersey, among other places. The crimes to which the recovered firearms were linked included various violent crimes, including rape, a robbery, and a murder.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Carrie Randa represented the government. The two remaining co-defendants will be sentenced at later dates.
Financial Management Company Owner Sentenced to 48 Months for Defrauding ClientsRead the Press Release
COLUMBUS, Ohio – Douglas E. Cowgill, 60, of Westerville, Ohio, was sentenced today in U.S. District Court to 48 months in prison, three years of supervised release and ordered to pay approximately $841,000 in restitution for wire fraud, theft or embezzlement from employee benefit plans, and perjury.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, James Vanderberg, Special Agent in Charge, the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and Joseph Rivers, Cincinnati Office Director of the U.S. Department of Labor - Employee Benefits Security Administration, announced the sentence handed down today by U.S. District Judge Michael H. Watson.
From July 2013 through August 2014, Cowgill was president and sole owner of Professional Investment Management (PIM), Inc. in Columbus, where he had been employed since July 1981.Cowgill used his positions at PIM to defraud investors and use their funds for his own use. From March 2008 through October 2013, he misappropriated approximately $840,575. He manually altered account balances in company software and wired the misappropriated funds to an account for his own use. Cowgill paid various personal obligations with the money, depositing the money into his bank accounts, bank accounts of his wife, and bank accounts of the Northwest Swim Club, a non-profit swim club in Columbus for which he served as the treasurer.
PIM had the funds of approximately 300 individual clients under management, and Cowgill’s fraudulent scheme harmed at least 125 victims.
Most of the victims had their money in one of approximately 15 retirement plans. Each of the retirement plans was a qualified employee pension benefit plan under the Employee Retirement Income Security Act of 1974, and Cowgill pleaded guilty to theft or embezzlement from employee benefit plans.
On January 23, 2014, Cowgill lied under oath before officers of the Securities and Exchange Commission (SEC) while the SEC was conducting an investigation to determine whether there had been violations of federal securities laws in connection with PIM.
In January 2014, in Columbus, Ohio, Cowgill gave a deposition in connection with the SEC’s investigation. As part of the deposition, Cowgill took an oath that he would testify truthfully and that all materials prepared by him in anticipation of his testimony were accurate and complete.
In connection with the deposition, Cowgill prepared responses to a background questionnaire that, in part, asked him to list all accounts in his name, in which he had any beneficial interest, or over which he had any control. In response, Cowgill failed to disclose his control of over five bank accounts associated with the Northwest Swim Club for which he was an authorized signatory. During his sworn deposition, Cowgill affirmed that his answers to the questionnaire were accurate, and again failed to disclose the five Northwest Swim Club accounts to the officers of the SEC. At the time of the deposition, Cowgill knew that the Northwest Swim Club had been a recipient of a substantial portion of the funds misappropriated by him. In doing so, Cowgill attempted to conceal his misappropriation of client funds from investigators.
Cowgill pleaded guilty to wire fraud, theft or embezzlement from employee benefit plans, and perjury in November 2015.
U.S. Attorney Stewart commended the cooperative investigation by the FBI and the U.S. Department of Labor - Office of the Inspector General and U.S. Department of Labor - Employee Benefits Security Administration, as well as Assistant United States Attorney Peter Glenn-Applegate, who is representing the United States in this case. U.S. Attorney Stewart also commended the SEC for its work on the related civil matter, prior to the initiation of this criminal case.
Ferris TX Man Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that HARVEY LEE STONE, age 52, of Ferris, Texas, pled guilty to FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
The charge arose from an investigation by the Choctaw Nation Tribal Police, the Durant Police Department and the Federal Bureau of Investigation.
The Indictment alleges that on or about January 23, 2016, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, firearms, which had been shipped and transported in interstate commerce.
The Honorable Steven P. Shreder, 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. The defendant will remain in the custody of the United States Marshals Service pending sentencing.
The statutory range of punishment is not more than 10 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Dean Burris represented the United States.
Federal Jury Finds Man Guilty of Conspiracy and Theft of Brass Shell Casings from Marine Corps Base Camp PendletonRead the Press Release
Assistant U.S. Attorney Janet Cabral (619) 546-8715 and Michelle Pettit (619) 546-7972
NEWS RELEASE SUMMARY – March 9, 2016
SAN DIEGO - A federal jury has found John Vescuso guilty of theft of government property and conspiracy to sell and dispose of more than $500,000 of brass shell casings from Marine Corps Base Camp Pendleton from April 2010 to June 2012.
According to testimony and evidence presented at trial, Vescuso conspired with a former civilian employee on board Camp Pendleton, Cecil Garr, to remove the brass shell casings and other types of scrap metal from the School of Infantry’s hazardous materials lot, and to sell those materials for $555,640 over the two-year time period. The jury returned its verdict on Monday.
Vescuso, who was engaged in the business of recycling scrap metal, paid Garr cash to remove expended brass shell casings from the hazardous materials lot using his personal vehicles. Subsequently, he made arrangements directly with an Orange County, California, scrap metal company to place roll-off containers in the lot to collect the brass shell casings and other scrap metal. Once those containers were full, Vescuso contacted the scrap metal company to retrieve the containers from Camp Pendleton. Vescuso then collected payment directly from the scrap metal company and shared those proceeds with Garr, resulting in a substantial loss to the United States Marine Corps.
Prior to the trial against Vescuso, Garr pleaded guilty to conspiring with Vescuso to steal the more than $500,000 in brass shell casings from Camp Pendleton.
The investigation of the theft was a joint effort between the Naval Criminal Investigative Service (NCIS) and Defense Criminal Investigative Service (DCIS).
“It is unfortunate that anyone would try to take advantage of the military resources that are so important to our community and to our national security,” said U.S. Attorney Laura Duffy. “We will continue to do our part to ensure the military bases in our community are safe and secure from those who want to cause harm to the mission of the Armed Forces.”
Chris Hendrickson, DCIS Special Agent in Charge for the Western Field Office, said, “America's warfighters deserve the very best to perform their jobs and the taxpayers expect nothing less. Theft of USMC resources takes away precious dollars necessary for the dedicated American warfighter. This guilty verdict should serve as a warning for those intent on defrauding the U.S. military and American public that the Defense Criminal Investigative Service (DCIS) and our law enforcement partners will pursue these crimes relentlessly.”
“The Department of Defense has strict policies and procedures in place to ensure that all property and scrap materials generated during military training are recycled or reused for the benefit of our Armed Forces,” said Charles Warmuth, NCIS Special Agent in Charge for the Marine Corps West Field office. “In this case, the Marine Corps at Camp Pendleton and the taxpayers saw a loss of over a half a million dollars on board Marine Corps Base Camp Pendleton due to the greed of two individuals. NCIS, in partnership with DCIS, worked tirelessly to ensure these individuals were brought to justice. Theft of government property will not be tolerated, and NCIS will continue to investigate and aggressively prosecute all individuals who attempt to engage in this type of criminal activity.”
The defendant is scheduled to appear for sentencing before U.S. District Judge Thomas J. Whelan on June 13, 2016.
DEFENDANT Criminal Case No. 14CR2863-W
John Vescuso Age: 40 Wildomar, California
SUMMARY OF CHARGE
Count 1: Title 18, United States Code, Section 371: Conspiracy to Commit the Offense of Theft of Government Property.
Counts 2-4: Title 18, United States Code, Section 641: Theft of Government Property.
Maximum penalties: 10 years’ prison and a $250,000 fine.
INVESTIGATING AGENCIES
Naval Criminal Investigative Service
Defense Criminal Investigative Service
Fairmont, WV man sentenced to more than seven years for cocaine traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Ratique Wilson, also known as “Montana,” 25, of Fairmont, West Virginia, was sentenced today to 87 months in prison for cocaine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Wilson sold cocaine base in January 2015 in Marion County, West Virginia. He pled guilty in November 2015 to one count of “Distribution of Cocaine Base.”
In another matter, Rholan D. Pryor, 26, of Pittsburgh, Pennsylvania, was sentenced today to six months in prison for selling heroin in April 2014 in Harrison County, West Virginia. He pled guilty in October 2015 to one count of “Distribution of Heroin – Aiding and Abetting.”
Assistant U.S. Attorney Andrew Cogar prosecuted Pryor and Assistant U.S. Attorney Zelda Wesley prosecuted Wilson on behalf of the government. The West Virginia State Police investigated both defendants. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, also investigated Pryor.
U.S. District Judge Irene M. Keeley presided.
Erie Felon Charged with Illegally Possessing FirearmRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on a charge of violating federal firearm laws, United States Attorney David J. Hickton announced today.
The one-count indictment named Otemeo Dupree Williams, 32, as the sole defendant.
According to the indictment presented to the court, Williams unlawfully possessed a firearm while being prohibited from firearm possession because he is a convicted felon.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
This case was prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
The Erie Bureau of Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Erie Convenience Store Owner Charged with FraudRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of theft of government property and WIC fraud, United States Attorney David J. Hickton announced today.
The two-count indictment named James Hunter, Jr., 37, of Erie, Pennsylvania, as the sole defendant.
According to the indictment presented to the court, from July 2012 to June 2015, Hunter, who is the owner and operator of Melo’s Stop N Shops in Erie, committed WIC fraud by accepting food stamps and WIC checks for cash or ineligible items such as cigarettes.
The law provides for a maximum total sentence of 15 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The United States Department of Agriculture, Office of Inspector General and the Erie Bureau of Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Dracut Pharmacy Settles Improper Dispensing and Recordkeeping AllegationsRead the Press Release
BOSTON – The U.S. Attorney’s Office reached a $42,500 civil settlement today with Alexander’s Pharmacy in Dracut, Mass., and its owner and operator, George Kontos, in connection with the improper dispensing of controlled substances and the failure to keep proper records and maintain effective controls against diversion.
“Ensuring the proper dispensing and handling of prescription drugs is a critical part of our ongoing efforts to protect patient safety and prevent drug diversion,” said United States Attorney Carmen M. Ortiz. “We will continue to monitor and investigate those handling controlled substances, whether they are large pharmacy chains or small, independently owned pharmacies, to ensure they adhere to the DEA’s regulations.”
“DEA registrants are responsible for dispensing and handling controlled substances and ensuring that complete and accurate records are properly kept in compliance with the Controlled Substance Act,” said DEA Special Agent in Charge Michael J. Ferguson. “Our obligation is to improve public safety and public health, and we are committed to working with our law enforcement and regulatory partners to ensure that these rules and regulations are followed.”
According to the settlement, Alexander’s Pharmacy, without physician authorization, improperly filled prescriptions with larger dosage pills than prescribed because it had exhausted its inventory of the prescribed dosage. In addition, Alexander’s records did not account for hundreds of pills in the pharmacy’s inventory, including medications at high risk of diversion, such as oxycodone and alprazolam. Furthermore, Alexander’s failed to maintain invoices, document substituted medications, and account for medications that customers did not pick up.
Kontos and Alexander’s Pharmacy cooperated with the DEA’s investigation and implemented new recordkeeping and security measures. Kontos and Alexander’s Pharmacy also agreed to permit the DEA to perform inspections of the pharmacy during the next three-and-a-half years without a warrant.
U.S. Attorney Ortiz and DEA Special Agent in Charge Ferguson made the announcement today. The case was handled by Assistant U.S. Attorney Brian LaMacchia of Ortiz’s Civil Division.
Dorchester Man Sentenced for Sex Trafficking Two Teenage RunawaysRead the Press Release
BOSTON –A Dorchester man was sentenced today in U.S. District Court in Boston for transporting two 14 year-old girls from Massachusetts to Rhode Island for the purpose of prostituting them.
Derek Miranda, a/k/a Dub, 21, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 57 months in prison and five years of supervised release. In December 2015, Miranda pleaded guilty to transporting the two girls from Massachusetts to Providence, R.I. on or about Jan. 15, 2015 with the intent for them to engage in prostitution.
On Jan. 14, 2015, Miranda met two 14 year-old girls who had run away from their homes in Lowell and brought them to a hotel in Brockton where he provided them with different clothes and told them that he “had guys coming over.” One of the girls texted a friend for help who then notified the police and a search was initiated. The girls left the hotel and temporarily stayed with a friend in Brockton. However, as runaways with no place to go, they contacted Miranda who arranged to have them picked up by an Uber driver. Miranda then had them driven to a house in Providence where he intended to have the girls provide sex for a fee. One of the girls texted a friend to notify local law enforcement authorities who then rescued them and arrested Miranda.
United States Attorney Carmen M. Ortiz and Matthew Etre, Special Agent in Charge of the Homeland Security Investigations in Boston, made the announcement today. The case was investigated with the assistance of the Massachusetts State Police assigned to Attorney General Maura Healey’s Office, the Providence, Lowell and Brockton Police Departments, and the Rhode Island Attorney General’s Office. The case is being prosecuted by Assistant U.S. Attorney S. Theodore Merritt of Ortiz’s Civil Rights Enforcement Team and Special Assistant U.S. Attorney Deborah Bercovitch, Chief of AG Healey’s Human Trafficking Division.
Director of Lisle-Based Hospice Company Convicted in Scheme to Fraudulently Bill Medicare for Medically Unnecessary ServicesRead the Press Release
CHICAGO — A federal jury has convicted the director of nursing assistants at Passages Hospice for participating in a scheme to bill Medicare and Medicaid for unnecessary hospice services.
ANGELA ARMENTA, 35, of Wheeling, was convicted Tuesday night on three counts of health care fraud. Each count is punishable by up to ten years in prison.
Armenta is the seventh defendant to be convicted as part of the federal investigation into Passages Hospice LLC. The prior convictions include former co-owner SETH GILLMAN and the company itself.
Gillman, 47, of Lincolnwood, pleaded guilty last month to one count of health care fraud. In his plea agreement, Gillman admitted that Passages regularly billed Medicare and Medicaid for a high level of hospice service called “general inpatient,” even though he knew that many of these services were not medically necessary. Gillman further admitted that he implemented a bonus system to incentivize nursing directors and nursing-assistant directors, including Armenta, to place patients on general inpatient services when the patients did not need such services.
Evidence at Armenta’s seven-day trial revealed that from 2009 to 2012, Armenta was paid more than $300,000 in bonuses based on the number of patients who were placed on the higher level of services in the region Armenta and others supervised. Witnesses at her trial testified that Armenta told nurses to disregard proper training about general inpatient services.
U.S. District Judge Thomas M. Durkin did not immediately schedule Armenta’s sentencing hearing. A status hearing was set for July 19, 2016, at 9:00 a.m., at which time her sentencing date will be set.
In addition to Armenta, Gillman, and Passages Hospice, the four other defendants convicted in the investigation are:
GWEN HILSABECK, 49, of Pontiac, Passages’ former administrator.
CARMEN VELEZ, 36, of Palatine, Passages’ former director of clinical services.
JULIE PARKER, 56, of Shorewood, Passages’ former compliance officer.
LEROY MOORE, 49, of Shorewood, Passages’ former head of marketing.
In his plea agreement, Moore admitted that he and others at Passages offered gifts to staff members of various nursing homes to induce them to refer patients to Passages. The gifts included tickets to events, electronic music players, televisions, and gift cards.
Gillman, Passages, Hilsabeck, Velez, Parker and Moore are scheduled to appear for a status hearing before Judge Durkin on March 16, 2016, at 9:00 a.m., at which time their sentencing dates will be set.
The conviction of Armenta was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; 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; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The investigation was carried out by the Medicare Fraud Strike Force, which is part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative between the U.S. Justice Department and the U.S. Department of Health and Human Services to prevent fraud and to enforce anti-fraud laws around the country. Dozens of defendants have been charged in numerous fraud cases since the strike force began operating in Chicago in 2011.
The government is represented by Assistant U.S. Attorneys Stephen Chahn Lee, Abigail Peluso and James Durkin.
Davenport Man Sentenced to Prison for Distributing Crack CocaineRead the Press Release
DAVENPORT, IA – On March 3, 2016, Brandon Jermaine Sykes, 33, of Davenport, Iowa, was sentenced by Senior United States District Court Judge James E. Gritzner to 360 months in prison for conspiracy to distribute cocaine base ("crack"), announced Acting United States Attorney Kevin E. VanderSchel. Sykes was ordered to serve five years of supervised release following his prison term and to pay $100 towards the Crime Victims’ Fund.
Sykes pleaded guilty to conspiracy to distribute at least 280 grams of cocaine base on December 15, 2015. According to the plea agreement, from April 2013 to about April 2, 2015, Sykes obtained powder cocaine from individuals in Chicago, Illinois, and then would convert it to "crack" cocaine and sell it to individuals living in Davenport. Sykes had 15 different customers in the Davenport area. On four different occasions, law enforcement utilized a confidential source to purchase "crack" cocaine from Sykes at his Davenport residence.
This matter was investigated by the Davenport Police Department’s Tactical Operations Bureau, the Davenport Police Department, and the Iowa Division of Narcotics Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Conspirator Admits to Fraudulently Obtaining Vehicle LoansRead the Press Release
Greenbelt, Maryland – Derrick Kwan Byas, Jr., age 27, of Baltimore, pleaded guilty today to conspiring to commit bank fraud and aggravated identity theft arising from a bank fraud scheme.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief Hank Stawinski of the Prince George’s County Police Department.
According to his plea agreement, from January 2009 to April 29, 2015, Byas and others applied for vehicle loans with financial institutions and lenders using false information as to employment history, addresses, dates of birth and social security numbers. They created and submitted fake documents, such as lien releases, utility bills, paystubs, letters of recommendation and a police report.
When applying for the loans, Byas had no intention of actually purchasing a vehicle and instead knew that any loan proceeds would be split between himself and others. Byas and his co-conspirators often applied for vehicle loans on the same vehicle with different lenders. They deposited the loan funds into bank accounts and cashed loan checks at liquor stores. They failed to pay the vehicle loans, which often resulted in the vehicles being repossessed by the lenders.
Byas and his co-conspirators also nominally agreed to sell the vehicles, obtained money from the sales and then did not provide the vehicles to the buyers.
In February 2014, Byas obtained a credit card using a false social security number, resulting in a loss to the bank issuing the card. From May to November 2014, Byas attempted to obtain six car loans, three personal loans and a credit card.
The intended loss resulting from Byas’s fraudulent conduct was at least $220,603.
Byas faces a maximum sentence of 30 years in prison for conspiring to commit bank fraud and a mandatory minimum of two years in prison for aggravated identity theft, consecutive to any other sentence. U.S. District Judge Deborah K. Chasanow scheduled sentencing for July 11, 2016 at 2:00 p.m.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and the Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Thomas P. Windom and Joseph R. Baldwin, who are prosecuting the case.
Chula Vista Woman Admits Stealing More Than $164,000 from IRSRead the Press Release
Assistant U.S. Attorney Michelle L. Wasserman (619) 546-8431
NEWS RELEASE SUMMARY – March 9, 2016
SAN DIEGO – Cecilia Hernandez pleaded guilty Tuesday to stealing more than $164,000 from the Internal Revenue Service – despite owing the agency for back taxes that she had failed to pay.
Hernandez admitted that she sent the IRS more than a half million dollars in worthless checks written on closed accounts. The checks were ostensibly intended to pay off a tax debt which Hernandez owed from previous years. The checks (written in 2011 and 2013) were for amounts far greater than the tax debt and triggered a series of fraudulent refunds. In all, Hernandez wrote more than $525,000 in bad checks to the IRS, which resulted in her obtaining over $164,000 in the form of fraudulent refunds. Among other things, Hernandez spent her illicit proceeds on a $33,000 Chrysler 300 and an extravagant Quinceañera for her daughter costing more than $40,000.
As part of her plea, Hernandez agreed to restitution of the funds stolen from the IRS. Hernandez will appear for sentencing on June 14, 2016 at 9:00 a.m. before U.S. District Judge Anthony J. Battaglia.
DEFENDANT: Case Number 16CR247-AJB
Cecilia Hernandez Age: 46 Chula Vista, CA
SUMMARY OF CHARGES
Title 18, United States Code, Section 641-Theft of United States’ Money
AGENCIES
Internal Revenue Service
California Women Plead Guilty to Smuggling Threatened North American Wood Turtles out of the United StatesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that SO YI CHAN, age 29, and her aunt, SUI FAN CHIU, age 50, both from California, pled guilty today to a Superseding Bill of Information charging CHAN with smuggling turtles out of the United States and CHIU with misprision of the turtle smuggling.
CHAN and CHIU were part of a group of individuals involved in capturing the threatened species of North American Wood turtles from the wild in Pennsylvania, shipping the turtles by mail though the United States, first to Louisiana and then on to California, and then illegally exporting the turtles to Hong Kong. According to court documents, CHAN and CHIU’s homes served as the drop locations where the turtles were sent in California. CHAN also admitted that she had packaged the turtles and mailed them to Hong Kong, falsely declaring that the boxes contained legos and magazines.
CHAN faces a maximum term of ten years imprisonment, a fine of $250,000, and up to 3 years of supervised release following any term of imprisonment. CHIU faces a maximum term of three years imprisonment, a fine of $250,000, and up to one year of supervised release following any term of imprisonment U.S. District Judge Ivan L.R. Lemelle set sentencing for June 15, 2016.
U.S. Attorney Polite praised the work of the Agents of the U.S. Fish and Wildlife Service, Homeland Security Investigations, and the United States Postal Inspection Service in investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.
Buffalo Man Pleads Guilty to Crack Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Morrell Buster, 43, of Buffalo, NY, pleaded guilty before Senior U.S. District Judge William M. Skretny, to possession with intent to distribute, and distribution of crack cocaine. The charge carries a maximum penalty of 30 years in prison and a $2,000,000 fine.Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that between June 2013 and February 25, 2014, the defendant purchased and then distributed crack cocaine. On January 17, 2014, Buster was found in possession of three grams of crack cocaine while at the Niagara Outlet Mall in Niagara County, NY.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen and the Lackawanna Police Department, under the direction of Chief James Michel.
Sentencing is scheduled for June 22, 2016 at 11:00 a.m. before Judge Skretny.