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Friday 22 January 2016
Media Advisory: National Slavery and Human Trafficking Prevention Month Highlighted with Program EffortsRead the Press Release
CEDAR RAPIDS, IA – The United States Attorney’s Office for the Northern District of Iowa will join with Homeland Security Investigations (HSI), the Marion Police Department, Iowa DOT Motor Vehicle Enforcement, and Cedar Rapids Gives to hold a press conference on January 25th to discuss efforts to combat human trafficking and to assist victims touched by this crime. President Barack Obama signed a Presidential Proclamation declaring January as National Slavery and Human Trafficking Prevention Month.
Speakers from each organization will comment on their efforts to combat this crime and to assist victims. U.S. Department of Homeland Security’s Blue Campaign will also be discussed. To learn more about this campaign visit: http://www.dhs.gov/blue-campaign.
Also present and speaking will be a victim-survivor of human trafficking.
Event Details
When: Monday, January 25, 2016
Where: Marion Police Department (Training Center), 6315 US-151, Marion, Iowa
Time: 10:30 a.m.
A press release will be provided and interview opportunities will be available following the press conference.
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Marshall County, WV woman convicted of unlawful possession of firearmsRead the Press Release
WHEELING, WEST VIRGINIA – Tricia Renee Thames, 36, of Moundsville, West Virginia, was convicted of unlawful possession of firearms today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Thames pled guilty today to an Information charging her with one count of “Felon in Possession of a Firearm.” Thames, who has a felony conviction for “Manslaughter” from the State of Oklahoma, was discovered to be in possession of a .357 caliber revolver and a .22 caliber pistol in Ohio County, West Virginia in 2015.
She faces up to 10 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Marion County, WV man convicted of unlawful possession of firearmsRead the Press Release
CLARKSBURG, WEST VIRGINIA – John Basile, 64, of Fairview, West Virginia, pled guilty in federal court today to unlawful possession of firearms, United States Attorney William J. Ihlenfeld, II, announced.
Basile pled guilty today to an Information charging him with one count of “Possession of Stolen Firearms.” Basile was discovered in possession of two stolen firearms in Marion and Monongalia Counties.
He faces up to 10 years in prison and fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Man Who Injected Woman with Heroin Causing Her to Overdose Sentenced to PrisonRead the Press Release
A man who injected a woman with heroin causing her to overdose was sentenced today to two years in federal prison.
Richard Roberts, age 37, from Cedar Rapids, Iowa, received the prison term after an October 7, 2015 guilty plea to distribution of heroin.
In a plea agreement, Roberts admitted that, in August 2015, he injected a woman with heroin, after which she lost consciousness. Roberts called 911 to obtain medical assistance. When paramedics arrived, she was unconscious with labored breathing and a weak pulse. Emergency responders had to revive the woman with Narcan, an opiate antidote. Roberts admitted that, without the medical intervention by emergency responders, the woman had a substantial risk of anoxic brain injury and death.
Roberts was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade, who called Roberts’s crime and “extremely reckless act.” Roberts was sentenced to 24 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Roberts is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Cedar Rapids Police Department and the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement. The case was prosecuted by Assistant United States Attorney Dan Chatham.
Court file information available https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-79-LRR.
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Man Sentenced to 21 Months in Federal Prison for Failing to Register as a Sex OffenderRead the Press Release
LUBBOCK, Texas — Joe Coleman, 47, was sentenced today by Senior U.S. District Judge Sam R. Cummings to 21 months in federal prison, following his guilty plea in September 2015 to one count of failing to register as a sex offender, announced U.S. Attorney John Parker of the Northern District of Texas.
Coleman was sentenced on November 30, 2000, to 21 months in prison after he was convicted of Criminal Sexual Conduct in the Second Degree, in Anoka County, Minnesota. The conviction related to a sexual offense against a 10-year-old female. Coleman was released from prison on October 24, 2001, but thereafter was incarcerated during his conditional release period and served time in prison until June 23, 2009.
In 2009, Coleman came to Texas, and he has been residing in the Lubbock area since that time. He has also been employed in Lubbock for much of the time and was employed in Lubbock at the time of his arrest on July 23, 2015.
Based on this conviction, Coleman was a sex offender under the Sex Offender Registration and Notification Act (SORNA) and was required to register as a sex offender under state and federal law. Coleman, however, never registered in Texas as a sex offender, as required by the SORNA and he never appeared in person in any jurisdiction in which he was required to register to inform that jurisdiction of the changes in his status, as required, after he moved to Texas.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The U.S. Marshals Service investigated the case and Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecution.
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Los Lunas Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – James Sparks, 37, of Los Lunas, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to a methamphetamine trafficking charge. Under the terms of his plea agreement, Sparks will be sentenced to 60 months in federal prison followed by a term of supervised release to be determined by the court.
The guilty plea was announced by U.S. Attorney Damon P. Martinez, 13th Judicial District Attorney Lemuel Martinez, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division and Valencia County Sheriff Louis Burkhard.
Sparks was charged in an indictment on Nov. 5, 2015, with possession of methamphetamine with intent to distribute on June 16, 2014, in Valencia County, N.M. Sparks was arrested on Nov. 10, 2015, after he was transferred to federal custody from state custody where he was being held on related state charges which were later dismissed in favor of federal prosecution.
During today’s proceedings, Sparks pled guilty to the indictment and admitted that on June 16, 2014, Valencia County Sheriff’s deputies stopped him for speeding on his motorcycle. Sparks admitted that he attempted to run from deputies when they discovered that Sparks was in possession of more than five grams of methamphetamine and drug paraphernalia, but was eventually apprehended and arrested by the deputies.
Sparks remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA and the Valencia County Sheriff’s Office with assistance from the 13th Judicial District Attorney’s Office. Assistant U.S. Attorney Rumaldo R. Armijo is prosecuting the case.
The case is being prosecuted as part of the federal “worst of the worst” anti-violence initiative. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior felony convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Valencia County, under this initiative.
Leader of Jewelry Heist Ring Sentenced to 31 Years in Prison for Robbing and Attempting to Rob Jewelers in Chicago and Lake ForestRead the Press Release
CHICAGO — The leader of a jewelry heist ring that robbed two Chicago jewelers and attempted to rob another in Lake Forest was sentenced today to more than 31 years in federal prison.
Over the course of two weeks in September and October 2012, PALO BROWN and his crew robbed two jewelry stores in Chicago and a gas station in Forest Park, and also attempted to rob a jeweler in Lake Forest. As they fled the final robbery in Chicago’s Edgewater neighborhood, Brown and another member of his crew tried to car-jack a woman at gunpoint. The woman screamed and fought back, and the pair fled.
Brown, 34, of Chicago, pleaded guilty last year to one count of conspiracy to obstruct, delay and affect commerce by robbery; one count of using, carrying and brandishing a firearm during a crime of violence; and one count of attempted car-jacking. U.S. District Judge Virginia M. Kendall imposed the 376-month sentence in federal court in Chicago.
Assistant U.S. Attorney Peter M. Flanagan said Brown was “the mastermind of a multi-week campaign of armed violence.” Flanagan argued in the government’s sentencing memorandum that Brown “organized a crew that threatened numerous people with guns.”
Brown admitted in a plea agreement that he and his crew robbed Thornton’s Gas Station in Forest Park on Sept. 24, 2012. During the robbery, another member of the crew, PARIS STARWALT, pistol-whipped a customer over the head. The robbery netted the crew $500 and two cartons of cigarettes.
The first jewelry heist occurred the following day at Arab Jewelry in the East Albany Park neighborhood of Chicago. Brown, Starwalt and a third member of the crew, FELICE DESILVIA, took about $200,000 worth of diamonds and jewelry. During the robbery, DeSilvia duct-taped a store employee to a chair to prevent him from running away.
The following week, Brown and DeSilvia attempted to rob Lake Forest Jewelers in Lake Forest. Shortly after the pair entered the store armed with concealed handguns, an employee walked outside to place a call on his cellphone. Fearing that the employee was calling the police, Brown and DeSilvia abandoned their plans and exited the store.
On Oct. 8, 2012, Brown, Starwalt and DeSilvia robbed Bryn Mawr Jewelry in the Edgewater neighborhood of Chicago. Starwalt held two employees at gunpoint while Brown and DeSilvia collected $120,000 worth of loose diamonds and jewelry. After Brown and Starwalt exited the store, they attempted to car-jack a woman at gunpoint in a nearby garage. The woman screamed and bit Starwalt on the arm and hands, causing her and Starwalt to fall to the ground. Brown and Starwalt ran off and were quickly apprehended by Chicago Police officers.
Starwalt, of Mattoon, Ill., pleaded guilty in 2014 to the same charges as Brown. His sentencing hearing is set for April 1, 2016, at 1:00 p.m., before Judge Kendall.
DeSilvia, of Chicago, pleaded guilty in 2014 to one count of conspiracy to obstruct, delay and affect commerce by robbery; and one count of using, carrying and brandishing a firearm during a crime of violence. Her sentencing hearing before Judge Kendall will be scheduled at a later date.
Brown’s sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Jeffery Magee, Special Agent in Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Chicago Police Acting Superintendent John Escalante; and Cook County State’s Attorney Anita Alvarez.
The government is represented by Mr. Flanagan.
Latham Man Pleads Guilty to Preparing False Tax ReturnsRead the Press Release
ALBANY, NEW YORK – Gnoan Pierre Kablan, age 52, of Latham, New York, pled guilty today to aiding and assisting in the preparation of false tax returns.
The announcement was made by United States Attorney Richard S. Hartunian and Shantelle P. Kitchen, Special Agent in Charge of IRS-Criminal Investigation’s New York Field Office.
As part of his plea, Kablan admitted that he prepared 16 tax returns that contained false information. These returns, which Kablan prepared for clients for the tax years 2008 through 2011, contained false deductions for charitable gifts, false deductions for unreimbursed employee expenses, and false solar property and energy efficiency credits. These false deductions and credits gave his taxpayer clients refunds that they were not entitled to.
Kablan faces up to 3 years in prison, a maximum fine of $100,000, and a maximum term of supervised release of 1 year when he is sentenced on May 23, 2016 by United States District Judge Mae A. D’Agostino. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a judge based on the U.S. Sentencing Guidelines and other statutory factors. Kablan may also be ordered to pay restitution to the government in the amount of the tax loss that his conduct is found to have caused.
This case was investigated by the New York Field Office of the IRS-Criminal Investigation, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Laredoan Gets Nearly 16 Years for Methamphetamine ConvictionRead the Press Release
LAREDO, Texas – A 36-year-old Laredo man has been handed a significant sentence following his conviction of possession with intent to distribute methamphetamine, announced U.S. Attorney Kenneth Magidson. Victor Hugo Gonzalez pleaded guilty Aug. 25, 2015.
Today, visiting U.S. District Judge Janis Graham Jack ordered he serve 188 months in federal prison to be immediately followed by five years of supervised release.
On July 17, 2016, agents with Homeland Security Investigation (HSI) received information identifying a black Nissan Altima that would be used to transport narcotics. Laredo Police Department (LPD) officers and HSI special agents discovered the vehicle and performed a traffic stop.
Gonzalez was cited for driving without a license and consented to a search of the vehicle. With the assistance of an LPD canine, officers soon discovered two bottles in the backseat of anti-freeze with small crystals forming at the top. Agents tested the bottles and found that both bottles contained liquid methamphetamine with a combined gross weight of 8.55 kilograms.
Gonzalez admitted he picked up the bottles of anti-freeze from a truck driver in an industrial area in Laredo. He further added that he knew the bottles contained narcotics and that he was transporting the bottles to an unknown person.
As part of his sentence, Gonzalez will be required to complete an intensive drug treatment program and a mental health program while in prison.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges were the result of an investigation conducted by HSI and LPD. Assistant United States Attorney Jorge Vela is prosecuting the case.
Kingston Man Pleads Guilty to Child Pornography PossessionRead the Press Release
CONCORD, NEW HAMPSHIRE - Gene Mondalto, 37, of Kingston, New Hampshire, pled guilty on January 21, 2016 in United States District Court for the District of New Hampshire to possessing child pornography, announced United States Attorney Emily Gray Rice.
A joint investigation by the New Hampshire Crimes Against Children Task Force, Homeland Security Investigations Manchester, and the Kingston, New Hampshire Police Department resulted in the issuance of a search warrant for Mondalto’s residence in Kingston. When that warrant was executed in August 2015, officers discovered several hundred images of child pornography located on Mondalto’s laptop computer.
Scheduled for sentencing in May 2016, Mondalto faces a maximum prison term of 10 years, to be followed by a term of at least 5 years of supervised release and a fine of up to $250,000.
The case was investigated by the New Hampshire Crimes Against Children Task Force in conjunction Homeland Security Investigations Manchester, and the police departments of Kingston and Hampton, New Hampshire. The case is being prosecuted by Assistant United States Attorney Nick Abramson.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Jury Finds Los Angeles Gang Member and College Student Guilty of Trafficking PCPRead the Press Release
Oklahoma City, Oklahoma – Today, a federal jury found WESLEY TAVION GRANT (a/k/a "Olajawan Bush"), 23, a "Bloods" gang member from Los Angeles, California, and LARENZO MONTEL GABOUREL, 20, a community college student also from Los Angeles, guilty of conspiracy to distribute PCP and possession with intent to distribute PCP, announced Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma. The jury also found Grant guilty of distribution of PCP and Gabourel guilty of possessing a firearm in furtherance of drug trafficking
According to evidence at trial, on May 19, 2015, an undercover FBI agent purchased a large amount of PCP from Grant in the Walmart parking lot at Memorial and Penn Avenue. Law enforcement executed a search warrant at an abandoned apartment that was being used as a “stash house” in northwest Oklahoma City which resulted in the seizure of the nearly a gallon of PCP kept in water bottles and vanilla extract bottles. The drugs, representing nearly 3,200 individual doses of PCP, had a street value of well over $40,000. During the arrest and search, Gabourel was found in the apartment with a loaded .32 revolver in his pants. The jury also heard evidence of Grant’s prior Oklahoma City arrest for PCP distribution and from a Las Vegas Metro Police Officer who discussed a Las Vegas arrest in which PCP was found. Testimony was presented from a fellow Blood gang member who testified about driving Gabrouel from Los Angeles to Oklahoma City and the making of the PCP.
The trial lasted for three days and the jury deliberated for approximately seven hours before finding both defendant’s guilty on all counts. After the verdict was read, both Grant and Gabourel were remanded to the custody of the U.S. Marshals.
At sentencing, both defendants face up to life in prison. A sentencing date will be set by the court in approximately 90 days. Reference is made to the court record for further information.
This case was the result of an investigation by the Federal Bureau of Investigation and the Oklahoma City Police Department. The case was prosecuted by Assistant U.S. Attorneys Nicholas Patterson, Robert Don Gifford, II, and David McCrary.
Jury Finds Elk Grove Man Guilty of National Guard Recruiting FraudRead the Press Release
SACRAMENTO, Calif. — After a seven-day trial, a federal jury found Richard C. Sihner, 54, of Elk Grove, guilty of 18 counts of wire fraud and one count of false statements to a federal agent for a scheme to fraudulently obtain bonuses in a recruitment program for the California National Guard, United States Attorney Benjamin B. Wagner announced.
Sihner is a retired member of the California National Guard, and participated in the Guard Recruiter Assistant Program (G-RAP). The United States Army contracted with Document and Packaging Broker Inc. (DOCUPAK) to administer G-RAP. Under G-RAP, members of the California National Guard served as recruiting assistants (RA). If an RA referred a potential Guard member to a recruiting office and that person ultimately enlisted, the RA was eligible to receive monetary compensation disbursed by DOCUPAK. RAs would typically receive a $1,000 payment when a nominee enlisted and a second $1,000 payment when the nominee left for boot camp. Ultimately, the G-RAP program was discontinued following the discovery of widespread fraud. People who walked into recruiting offices entirely on their own initiative, without having been referred by an RA, were claimed by corrupt RAs in DOCUPAK’s system, often with the assistance of corrupt recruiters.
According to court documents and evidence produced at trial, from December 27, 2007 to April 16, 2010, Sihner was an RA in the G-RAP program. A recruiter gave him information about new recruits so that Sihner could falsely claim to have referred them. Sihner made false claims and wrote elaborate falsehoods in the notes section of the DOCUPAK online portal indicating that he had referred the recruits. In fact, the recruits had made contact with the Guard to discuss potential enlistment for reasons entirely unrelated to Sihner. Sihner was paid $95,000 in compensation for purportedly referring 51 soldiers to enlist. Of the 39 recruits federal agents contacted prior to indictment, none had been referred to the Guard by Sihner. When confronted, Sihner lied to federal law enforcement agents investigating the fraud by repeatedly claiming that he had personally referred all of the new soldiers and that he had taken them to the recruiting office to introduce them.
“Sihner and others who corrupted the G-RAP program were parasites on the Army National Guard, sucking dollars from the services that defend this country,” said U.S. Attorney Wagner. “Richard Sihner was the latest to be brought to justice in this district, but he won’t be the last.”
“When Richard Sihner decided to cheat the California Army National Guard by abusing the G-RAP recruitment incentive program, he threw away the honor earned during his entire career in uniform,” said FBI Special Agent in Charge Monica Miller of the Federal Bureau of Investigation's Sacramento field office. “Men and women in the armed services sacrifice much to protect our country. The FBI and our partners at Army Criminal Investigative Command will continue to honor such sacrifice by stopping criminals like Sihner, who place self-enrichment above the virtues of service and personal integrity.”
Special Agent in Charge Chris Hendrickson of the Defense Criminal Investigative Service stated, “While the vast majority of military service members are honest in their work and passionately committed to the mission of protecting this nation, some choose to abuse public trust. Public corruption is always unacceptable and the Defense Criminal Investigative Service will use all tools available to protect the public's trust and taxpayer interest.”
“Mr. Sihner's guilty verdict is further proof we will hold soldiers accountable should they partake in criminal behavior,” said Maj. Gen. David S. Baldwin, Adjutant General for the California National Guard. “I'd like to express our appreciation for the United States Attorney's painstaking efforts to account for these crimes.”
Sihner is scheduled to be sentenced by United States District Judge John A. Mendez on May 3, 2016. Sihner faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of wire fraud, and a maximum sentence of five years in prison and a $250,000 fine for false statements. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an ongoing investigation by the Army Criminal Investigative Command Major Procurement Fraud Unit, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation. Assistant United States Attorneys Matthew G. Morris and Katherine T. Lydon are prosecuting the case.
Other National Guard members and recruiters have been charged in similar recruiting‑fraud schemes in the Eastern District of California. The following defendants have pleaded guilty and await sentencing.
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2:14-cr-153 TLN — Brian Kaps, 42, of Chico, pleaded guilty on November 21, 2014, to one count of wire fraud. Sentencing is set for January 28, 2016.
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2:14-cr-152 TLN — Sarah Nattress, 28, of Paradise, pleaded guilty on October 23, 2014, to one count of wire fraud. A status conference for sentencing is set for January 28, 2016.
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1:14-cr-107 DAD — Leonardo Pesta, 47, of Mountain View, pleaded guilty on July 27, 2015, to one count of wire fraud. Sentencing is set for April 26, 2016.
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1:14-cr-108-LJO — Nicholas Huerta, 33, of Fresno, pleaded guilty on September 14, 2015 to one count of wire fraud. Sentencing is set for January 26, 2016.
Charges are pending against the following (the charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt):
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1:14-cr-106 DAD — Joaquin Cuenca, 38, of San Diego, was a recruiter and allegedly is responsible for causing $30,000 in fraudulent bonuses. The trial in that case is currently ongoing in the U.S. courthouse in Fresno. The next date of the trial is January 26, 2016.
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2:15-cr-005 TLN — Steel A. Davis, 43, of Paradise, was charged with eight counts of wire fraud on January 8, 2015. A status conference is set for January 28, 2016.
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1:14-cr-109 LJO — Jimmy Maldonado, 35, a recruiter, and his wife Mayra Garcia Maldonado, 29, a recruiting assistant, both of Fresno, are allegedly responsible for causing $40,000 in fraudulent bonuses. Trial is scheduled for May 3, 2016.
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Jury Convicts Fresno Man for Receiving and Distributing Child PornographyRead the Press Release
FRESNO, Calif. — After a three–day trial, a federal jury found Shane Paul Young, 45, of Fresno, guilty today of receipt and distribution of child pornography, United States Attorney Benjamin B. Wagner announced. The trial was held before United States District Judge Dale A. Drozd.
According to evidence presented at trial, federal investigators in Fresno received a lead regarding an email address in Fresno that was distributing child pornography. Investigators determined that Young was the user of that Fresno email account. The evidence showed that Young sent and received hundreds of videos and images containing child pornography over the Internet with users across Europe and North America.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Fresno County Sheriff’s Department, the Kings County District Attorney’s Office, and the Fresno Internet Crimes Against Children (ICAC) task force. ICAC is a federally and state-funded task force with agents from federal, state, and local agencies. The Fresno ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant United States Attorneys Mark J. McKeon and Jeffrey A. Spivak are prosecuting the case.
“Dark and twisted predators who prey on the young and innocent will be identified and brought to justice,” said Ryan L. Spradlin, special agent in charge of HSI San Francisco. “Together with our law enforcement partners, we were able to apprehend this criminal and provide a safer community for our children.”
Young is scheduled to be sentenced by Judge Drozd on April 11, 2016. Young faces a maximum statutory penalty of 40 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Jury Convicts Constable Woman of Marijuana ConspiracyRead the Press Release
ALBANY, NEW YORK – A jury on Thursday convicted Stacie Demers, age 53, of Constable, New York, of a drug conspiracy involving 1,000 kilograms or more of marijuana.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, Drug Enforcement Administration.
Demers faces at least 10 years and up to life in prison, and a term of post-imprisonment supervised release of at least 5 years and up to life, when she is sentenced on May 19, 2016 by United States District Judge Mae A. D’Agostino.
The jury convicted Demers following a three-day trial in Albany. The evidence at trial demonstrated that Demers, who lived on the Canadian border in Northern New York, worked with members of her family and other co-conspirators to smuggle tens of thousands of kilograms of marijuana from Canada and into the United States. After the loads of marijuana crossed the border, Demers stored the marijuana in a shed behind her home and in other places. The marijuana was then picked up by drivers who transported it to street-level marijuana dealers throughout the Eastern United States.
This case was investigated by the Drug Enforcement Administration, New York State Police, and United States Border Patrol, and is being prosecuted by Assistant U.S. Attorneys Katherine E. Kopita and Cyrus P.W. Rieck.
January Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 15 indictments charging 15defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Ruben Arredondo-Diaz, age 50, is charged with illegal reentry into the United States on or about December 26, 2015, following deportation after conviction for a felony offense. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Martha Carmen Bazan-Herrera, age 42, of Fremont, is charged with illegal reentry into the United States on or about December 17, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Alfredo Chavarria Miranda, age 26, of Omaha, is charged with illegal reentry into the United States on or about December 21, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Alberto Angel Coronel, age 25, of Coachella, California, is charged with possession with intent to distribute 500 grams or more of a mixture containing methamphetamine on or about December 3, 2015. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Kayne Farquharson, age 31, of Omaha, is charged in a three-count Indictment. Count I of the Indictment alleges that on or about May 24, 2014, the defendant made a false statement in an application for a passport to secure for his own use. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment alleges that on or about December 8, 2015, Farquharson used a means of identification of another person to apply for a passport knowing that the means of identification belonged to another person. The maximum possible penalty if convicted is 2 years consecutive to previous penalty in Count I, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment. Count III of the Indictment alleges that on or about May 28, 2014 the defendant misused a social security number knowing said document was not issued lawfully for his use. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Elio Gomez-Perez is charged with illegal reentry into the United States on or about December 1, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Alex Larsen, age 26, of Grand Island, is charged with felon in possession of a firearm on or about January 1, 2016. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Hugo Leyva-Martinez is charged in a two-count Indictment. Count I of the Indictment charges the defendant with possession with intent to distribute more than 500 grams of a mixture of methamphetamine on or about December 7, 2015. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Leyva-Martinez with alien in possession of a firearm on or about December 7, 2015. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. The indictment also alleges any and all property, real or personal, that constitutes or is derived, directory or indirectly, as a result of the violations or involved in the violations, should be forfeited to the United States.
* Javier Mendez Salazar, age 37, of Bellevue, is charged with illegal reentry into the United States on or about December 3, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Adalberto Ocampo Ramirez, age 38, of San Diego, California, is charged with illegal reentry into the United States on or about June 24, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Martese Roland is charged in an eleven-count Indictment. Count I of the Indictment charges the defendant with conspiracy to distribute and possess with intent to distribute 100 grams or more of a mixture containing heroin and less than 50 kilograms of marijuana beginning as early as April 1, 2014, and continuing through December 5, 2015. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment. Counts II through IX of the Indictment charge Roland with distribution of a mixture containing heroin. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count. Count X of the Indictment charges the defendant with possession with intent to distribute a mixture containing heroin and marijuana on or about December 4, 2015. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count XI of the Indictment charges Roland with use or possession of a firearm during and in relation to or in furtherance of a drug trafficking crime. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 5 year term of supervised release, and a $100 special assessment.The indictment also alleges any and all property, real or personal, that constitutes or is derived, directory or indirectly, as a result of the said violation, should be forfeited to the United States.
* Alex Rosa, age 29, of Sherburn, Minnesota, is charged with possession with intent to distribute 50 grams or more of a mixture containing methamphetamine on or about October 4, 2015. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment.
* Ashley D. Rupp, age 26, of Arapahoe, Nebraska, is charged with theft of mail on or about November 4, 2015. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Allen C. Weitzel, age 24, of Sioux City, Iowa, is charged in a two-count Indictment. Counts I and II of the Indictment charge the defendant with assault with a dangerous weapon on or about August 6, 2015. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count.
* Jimme D. Windham, III, age 20, is charged with unlawful user of a controlled substance in possession of a firearm from on or about December 11, 2015, and continuing to on or about December 12, 2015. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
Husband and Wife Sentenced to Prison in Investor Fraud SchemeRead the Press Release
STATESBORO, GA: Karen K. Ransom, 45, from Atlanta, Georgia was sentenced earlier this week to a year and a day in federal prison by Chief U.S. District Court Chief Judge Lisa Godbey Wood for her role in an investor fraud scheme. Ransom’s husband, Joseph D. Garcia, 49, from Albuquerque, New Mexico, was sentenced last month to 37 months in prison for his role in the fraud scheme.
Evidence presented during the guilty plea and sentencing hearings revealed that Garcia and Ransom defrauded numerous victims throughout the United States of over a half of a million dollars. Many of the victims lived in the Statesboro area, within the Southern District of Georgia. Garcia and Ransom set up a phony investment firm called “Omega Capital Consultants” and fraudulently solicited hundreds of thousands of dollars from investors. Instead of investing the money they received from investors, Garcia and Ransom spent the money to fund a lavish lifestyle.
United States Attorney Edward J. Tarver said, “This couple stole hundreds of thousands of dollars from numerous unsuspecting victims. The Defendants’ promises turned to nightmares for their victims. The U.S. Attorney’s Office will not tolerate those who defraud others for their own greedy purposes.”
In addition to prison, Garcia and Ransom were also ordered to pay $635,000 in restitution. After serving their prison sentence, Garcia and Ransom will serve 3 years of supervised release.
FBI Special Agent Marcus Kirkland conducted the investigation which led to the indictment. Assistant United States Attorney Lamont A. Belk prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Heroin Supplier for Atlantic City ‘Dirty Block’ Gang Sentenced to 13 Years in PrisonRead the Press Release
TRENTON, N.J. - A Paterson, New Jersey, man was sentenced today to 156 months in prison for his role as a primary heroin supplier for a criminal street gang that used threats, intimidation and violence to maintain control of the illegal heroin trade in Atlantic City, New Jersey, U.S. Attorney Paul J. Fishman announced.
Mark Frye, 35, previously pleaded guilty before U.S. District Judge Anne E. Thompson to a superseding information charging him with conspiracy to distribute more than one kilogram of heroin. Judge Thompson imposed the sentence today in Trenton federal court.
According to the documents filed in this case and statements made in court:
Frye and Maurice Thomas, 34, of Patterson, worked together in a sophisticated drug distribution scheme which was based in the Presidential Towers apartment complex in Paterson.
Law enforcement agents obtained several wiretaps over a period of six months and recorded thousands of phone calls and text messages, including calls between Frye and “Dirty Block” leader Mykal Derry, 35, of Atlantic City, and Tyrone Ellis, 33, of Galloway, New Jersey, two Atlantic City heroin dealers. In addition, FBI agents conducted surveillance of drug meetings at the apartment complex in Paterson and observed and photographed Frye meeting with both Derry and Ellis on numerous occasions.
Frye, along with Thomas, obtained large quantities of pre-packaged heroin from major drug suppliers in the Paterson area and then supplied the drugs to numerous customers, routinely selling thousands of dollars’ worth of pre-packaged heroin to Derry and Ellis.
On Feb. 17, 2013, Frye was arrested by troopers from the New Jersey State Police after they seized an Audi Sedan he was driving and found a bag containing 200 “bricks” of heroin (each brick contained 50 individual packets of heroin, for a total of approximately 10,000 packets of heroin). Frye was able to make bail within 24 hours, but was ultimately arrested in March 2013 by FBI agents on the federal drug conspiracy charge. Sentencing in the state case in Passaic County Superior Court is still pending.
At his plea hearing, Frye admitted that he supplied at least 1, 200 bricks of heroin as part of the conspiracy. The wire recordings of Frye’s numerous calls and text messages with Derry and Ellis, as well as the trial testimony of a cooperating witness with firsthand knowledge of Frye’s drug trafficking activities, establish that Frye supplied heroin on a daily basis for at least six months between October 2012 and March 2013.
In addition to the prison term, Judge Thompson sentenced Frye to serve eight years of supervised release.
Thomas pleaded guilty on Sept. 18, 2014 to conspiracy to distribute more than one kilogram of heroin and awaits sentencing. Ellis pleaded guilty on Nov. 10, 2015 to conspiracy to distribute more than 100 grams of heroin and awaits sentencing. Derry, who was convicted at trial for drug conspiracy and weapons charges, was sentenced Jan. 7, 2015 to a lifetime in prison.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Richard M. Frankel; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; the Atlantic City Police Department, under the direction of Chief Henry White; and the South Jersey Safe Streets Violent Incident and Gang (Safe Streets) Task Force, with the investigation leading to today’s sentencing.
He also thanked the N.J. State Police, the Atlantic County Sheriff’s Office, the Northfield Police Department, the Vineland Police Department, the Brigantine Police Department, and the Millville Police Department for their contributions.
The government is represented by Assistant U.S. Attorneys Patrick Askin and Justin Danilewitz of the U.S. Attorney’s Office in Camden and Special Assistant U.S. Attorney Edmund Mallqui-Burgos of the Atlantic County Prosecutor’s Office.
Defense counsel: Michael Engle Esq., Philadelphia
Glen Carbon Man Indicted for Armed RobberyRead the Press Release
The Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today that Jonathan Michael Malone, 53, of Glen Carbon, Illinois, was indicted by a federal grand jury in the United States District Court in East Saint Louis, Illinois. Malone was charged in the first count with Interference of Commerce by Robbery in violation of Title 18, United States Code, Section 1591, in the second count with Brandishing a Firearm During and In Relation to a Crime of Violence in violation of Title 18, United States Code, Section 924(c), and in the third count with Unlawful Possession of a Firearm by a Convicted Felon in violation of Title 18, United States Code, Section 922(g). The armed robbery charge carries a maximum penalty of twenty years in prison, a $250,000 fine, and three years of supervised release. The brandishing of a firearm charge carries a maximum penalty of life in prison and not less than seven years of prison, to run consecutive to any term imposed on the armed robbery charge, a $250,000 fine, and not less than five years of supervised release. The felon in possession of a firearm charge carries a maximum penalty of ten years in prison, a $250,000 fine, and three years of supervised release.
The Indictment alleges that on January 14, 2016, Malone robbed the One Stop Shop Gas Station in Maryville, Illinois. During the robbery, Malone brandished a handgun at the owner. Furthermore, Malone possessed the handgun unlawfully after having been previously convicted of armed robbery.
An Indictment is a formal charge against a Defendant. Under the law, a Defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the United States must prove guilt beyond a reasonable doubt.
The case was investigated by the Glen Carbon Police Department, the Maryville Police Department, the Illinois State Police, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney William E. Coonan.
Four Indicted by Federal Grand Jury for Prisoner Tax Fraud SchemeRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that four men have been indicted by a federal grand jury in Anchorage for conspiracy to defraud the government with respect to claims related to a prisoner tax fraud scheme.
The four defendants named in the indictment are Jesse Scott Wilson, 41, William Wesley Hines, aka Speedy, 54, Jason Donald Schmidlkofer, 34, and Nick Lewis Thurmond, 30. Wilson, Hines, and Schmidlkofer are residents of Alaska. Thurmond is currently a resident of Colorado.
According to the indictment, between 2008 and 2012, the defendants joined in a conspiracy to file false tax returns and obtain tax refunds from the United States Treasury to which the defendants knew they were not entitled. The defendants obtained the names and social security numbers of individuals, many of whom were inmates at correctional facilities. The defendants prepared false individual income tax returns claiming false wages and withholding amounts listed on the tax returns for which there were no Forms W-2 issued. Each return claimed that the taxpayer was owed thousands of dollars in refunds to which they were not entitled. The conspirators forged the individuals’ signatures on the tax returns and used their own personal addresses and fake addresses on the tax returns. The conspirators mailed the false income tax returns to the Internal Revenue Service. During the course of the conspiracy, the conspirators prepared and submitted by mail approximately 375 false tax returns using the names and social security numbers of approximately 185 individuals for approximately $580,912 in fraudulent refund claims, and illegally obtained approximately $380,605 in fraudulent refund claims paid by the United States Treasury.
If convicted, the defendants face a maximum penalty of 10 years in prison, three years of supervised release, and a $250,000 fine.
U.S. Attorney Loeffler commends the Internal Revenue Service – Criminal Investigation for the investigation of this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Four Family Members Sentenced to Federal Prison for Purchasing Theme Park Tickets with Counterfeit Credit CardsRead the Press Release
Orlando, Florida – Senior U.S. District Judge G. Kendall Sharp has sentenced four family members for their involvement in an access device fraud ring. Eileen Hightower (50, Kissimmee) was sentenced to three years and ten months in federal prison. Her children, Samuel Velasquez, Jr. (26, Kissimmee) and Sabrina Velasquez (25, Kissimmee), along with her niece, Jennifer Cancel (28, Hartford, CT), were each sentenced to serve a term of three years’ imprisonment. The Court also ordered the individuals to pay a total of $107.097.33 in restitution. Each previously pleaded guilty for their role in this case.
According to court documents, the group had obtained counterfeit driver licenses and counterfeit credit cards encoded with stolen account information. The account numbers actually belonged to cardholders who were victimized by this scheme. The counterfeit credit cards were used by Hightower and her family members to purchase Orlando-area theme park tickets at hotel ticket kiosks throughout central Florida. They then sold the fraudulently-obtained tickets to ticket resellers in Kissimmee. Over a period of a few months, more than $100,000 in theme park tickets were fraudulently purchased and then resold.
This case was investigated by the United States Secret Service and the Orange County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Daniel C. Irick.
Former Washington State Woman Sentenced to Prison for Defrauding Immigrants of More Than $200,000 with Promises of Legal StatusRead the Press Release
SEATTLE - A former resident of Mercer Island, who stole more than $220,000 from immigrants with promises of immigration assistance, was sentenced today in U.S. District Court in Seattle to 16 months in prison and $222,900 in restitution for four counts of wire fraud, announced U.S. Attorney Annette L. Hayes. DALIA IVETTE SINGH, aka Dalia Pena, 62, now a resident of Clearwater, Florida, pleaded guilty in October 2015. At the sentencing hearing U.S. District Judge Richard A. Jones called her behavior “predatory” saying she preyed on those “least able to defend themselves... Her sole purpose was to take money from people who could least afford it.”
“This defendant not only stole money from vulnerable immigrants, she created false hopes and destroyed dreams,” said United States Attorney Annette L. Hayes. “This case is a reminder that there are imposters who prey on those who fear deportation. As this case demonstrates, members of our immigrant communities can safely reach out to law enforcement to report these kinds of scams and frauds, and be assured that those responsible will be held to account.”
According to court records, between 2008 and 2011, SINGH defrauded more than 40 immigrants from the Caribbean and Latin America. SINGH charged some families as much as $36,000, claiming she had a contact with U.S. Citizenship and Immigration Services (USCIS) who could provide the immigrants with legal status in the United States. SINGH claimed her USCIS contact ran a special program the immigrants could use to get legal status. There was no such program and no USCIS contact – SINGH fabricated the story to defraud the victims. The fake program SINGH described required enrollment of a group of people, not just individuals, and so she encouraged victims to recruit more people to enroll with them. In one instance, Singh defrauded about 30 members of a church out of nearly $100,000 with her false promises.
“Those who choose to capitalize on the fear of deportation to victimize immigrants and undermine our nation’s legal immigration system will be held accountable for their actions,” said Shawn Fallah, resident agent in charge of ICE’s Office of Professional Responsibility in Seattle. “We will continue to work tirelessly with our law enforcement counterparts to investigate criminals and imposters who manipulate and exploit the system for their own personal gain and see that they are brought to justice.”
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and its Office of Professional Responsibility (OPR).
Former Police Officer Sentenced to 10 Years in Federal Prison for Possessing Child PornographyRead the Press Release
DALLAS — Brian Kelley of Quinlan, Texas, was sentenced today by U.S. District Judge Sidney A. Fitzwater to the statutory maximum of 10 years in federal prison, to be followed by a lifetime of supervised release, for possessing child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Kelley, 41, pleaded guilty in January 2015 to a superseding information charging one count of possession of child pornography. Today, Judge Fitzwater remanded him into federal custody.
According to documents filed in the case, Kelley admitted that in September 2013, he possessed a flash drive that contained still images and a video depicting a minor female engaged in sexually explicit conduct.
Kelley most recently worked as a UT Southwestern Police Officer. Prior to that, he was a deputy sheriff with the Hunt County Sheriff’s Office.
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.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Flower Mound Police Department and the Texas Rangers investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
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Former Niagara Falls Man Sentenced for Making A False StatementRead 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 Jing Lin, 35, currently of Stanley, North Carolina, formerly of Niagara Falls, NY, who was convicted of making a false statement, was sentenced to one year of probation by U.S. District Judge Richard J. Arcara.Special Assistant U.S. Attorney Brian J. Counihan, who handled the case, stated that the defendant, originally from China, has been a permanent resident of the United States since 2012. Lin operated the Jing Buffet Restaurant on Military Road in Niagara Falls. During an inspection of the restaurant’s workforce, the defendant made false statements about the number of people working for him and the citizenship status of his employees.
The sentencing is the result of an investigation by Immigrations and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Former Miami Dade Police Officer Pleads Guilty to Accepting BribesRead the Press Release
A former uniformed police officer with the Miami Dade County Police Department pled guilty today to accepting bribes in furtherance of an illegal pirate towing scheme.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Juan Perez, Acting Director, Miami-Dade Police Department (MDPD), made the announcement.
Yuri Millan, pleaded guilty to participating in a conspiracy against the laws of the United States, that is, engaging in a wire fraud scheme resulting in the deprivation of his honest services and accepting bribes in connection with his official duties at MDPD, an agency that receives federal funding, in violation of Title 18, United States Code, Section 371. Millan’s codefendants, Oriel Ugardes, and Jose Guim, previously pled guilty to the same charge on January 13, 2016.
According to the court record, including documents filed in support of the defendants’ guilty pleas, between December 2013 and May 2014, Millan accepted bribes from Ugardes and Guim in exchange for Millan secretly using his position as a police officer to assist their towing businesses. Millan would provide Ugardes and Guim information regarding and access to MDPD accident scenes, where Ugardes and Guim would illegally solicit stranded drivers for business. In January 2014, after MDPD switched to an encrypted radio communication system, Millan agreed to rent his MDPD radio to Ugardes and Guim so that they could listen to encrypted police communications in an effort to locate accidents before their competitors. Millan’s misconduct resulted in Ugardes and Guim illicitly acquiring more than $5,000 worth of business.
The plot was uncovered through the use of recordings by confidential informants, wire intercepts on Ugardes’s telephone, and the seizure of Millan’s police radio from Ugardes after investigators watched Ugardes pick the radio up from Millan’s residence. In their own separate plea agreements, Ugardes and Guim also admitted paying thousands of dollars of bribes to Millan and another former MDPD employee, Public Service Aide Elina Rodriguez.
Millan, Ugardes, and Guim are scheduled to be sentenced on April 14, 2016, in front of U.S. District Court Judge Darrin P. Gayles. Each defendant faces a maximum sentence of 5 years’ imprisonment and 3 years’ supervised release. The court may also impose a maximum fine of $250,000.
In December 2015, Rodriguez pled guilty to related federal conspiracy charges before U.S. District Court Judge Ursula Ungaro. Rodriguez is scheduled to be sentenced in that case on February 22, 2016.
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force and the MDPD Internal Affairs Division. This case is being prosecuted by Assistant U.S. Attorney Anthony Lacosta.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Former Iowa Police Officer and Disbarred Attorney Sent to Federal Prison for Dealing Counterfeit U.S. CurrencyRead the Press Release
A former Iowa police officer, who is also a disbarred Iowa attorney, was sentenced yesterday to two years in federal prison. Brian Loren Stowe, 43, from Waverly, Iowa, received the prison term after a September 30, 2015 guilty plea to the federal charge of dealing in counterfeit currency.
In 2013, the Iowa Supreme Court disbarred Stowe, once a partner at a Des Moines law firm, after he was convicted of felony forgery charges and received a deferred judgment for possession of methamphetamine in state court. Prior to becoming an attorney, Stowe was a sworn law enforcement officer with the police department in Nevada, Iowa, and worked on a local drug task force.
In a plea agreement dated September 14, 2015, Stowe admitted that, in November 2014, he offered to sell an undercover officer $500 in counterfeit U.S. currency for $100. Then, in February 2015, he accepted $250 for $900 in counterfeit currency.
At sentencing, Stowe admitted that, in fact, he manufactured the counterfeit currency. And when dealing the counterfeit currency, Stowe explained he used a “formula” to “wash” or remove ink from genuine bills. He also advised the undercover officer to put the counterfeit bills in a dryer with poker chips so that the bills would look wrinkled and worn. He also told the undercover officer to spend the bills on small items at fast food restaurants where teenagers work, because they are less likely to detect counterfeit bills.
During the sentencing hearing, the district judge found that Stowe intentionally misled a federal magistrate judge about the status of his law license. While discussing whether he might represent himself in these federal proceedings, he told the magistrate judge his law license was “expired” when, in truth, it had been revoked by the Iowa Supreme Court in 2013. In the written decision revoking Stowe’s license, the Iowa Supreme Court detailed his ethical failings and characterized Stowe’s “life story” as one that “mirrors that of Dr. Jekyll and Mr. Hyde.”
Also at sentencing, the district court determined that Stowe had made a series of telephone calls from jail shortly after his arrest on the federal counterfeiting charge, in which Stowe demonstrated he was a “master manipulator” of his father, mother, and girlfriend by “grooming” them on what to say at an upcoming federal hearing. The district court indicated the jail calls proved Stowe’s “criminal thinking” and “substance abuse” “to the max”.
Stowe was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Stowe was sentenced to 24 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the United States Secret Service, the Iowa Department of Public Safety, Divisions of Narcotics Enforcement and Criminal Investigation, the Waterloo Police Department, the Palo Alto County Sheriff’s Office, the Linn County Sheriff’s Office, and the United States Department of State, Diplomatic Security Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-2034-LRR.
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Former IRS Employee and Another Individual Charged with Stolen Identity Tax Refund Fraud SchemeRead the Press Release
FRESNO, Calif. — Lorita Marie Rocha, 35, of Fresno, and Nereida Rodriguez, 28, of Firebaugh, were indicted in connection with a long-term tax refund fraud scheme that involved the use of stolen identities and false and fraudulent tax returns, United States Attorney Benjamin B. Wagner announced today.
On January 14, 2016, a federal grand jury returned a five-count indictment against Rocha and Rodriguez charging them with conspiracy to commit wire fraud and four counts of wire fraud. A status conference was set for February 29, 2016, before Magistrate Judge Sheila K. Oberto.
According to court documents, between February 2008 and January 2012, Rocha and Rodriguez conspired to obtain, and help others obtain, payment of false and fraudulent claims for refunds from the IRS. Through her employment by the IRS as a seasonal tax examiner, Rocha obtained the personal information of numerous individuals. Rocha and Rodriguez misappropriated the personal information of more than two dozen individuals and prepared and submitted fraudulent tax returns, making fraudulent claims for refunds in excess of $100,000.
This case is the product of an investigation by the Treasury Inspector General for Tax Administration (TIGTA) and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Henry Z. Carbajal III is prosecuting the case.
If convicted, Rocha and Rodriguez face a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Amarillo Resident Sentenced to 10 Years in Federal Prison on Attempted Child Sex Trafficking ConvictionRead the Press Release
AMARILLO, Texas — Xzavion Dayshaun Ragsdale, a/k/a “Yung Billy,” 19, was sentenced this morning by U.S. District Judge Mary Lou Robinson to 10 years in federal prison following his guilty plea in November 2015 to one count of attempted sex trafficking of a child, announced U.S. Attorney John Parker of the Northern District of Texas.
According to plea documents filed in the case, Ragsdale admitted that from approximately March 30, 2015 to April 3, 2015, he attempted to recruit a 15-year-old girl to engage in commercial sex acts.
The investigation began when a Task Force Officer (TFO) with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) learned that a particular individual, later identified as Ragsdale, was using Facebook to recruit and entice teenage females for prostitution. In March 2015, the TFO set up an undercover Facebook account representing himself as a 15-year-old female, “A.M.,” and the two exchanged messages about A.M. working as a prostitute, with Ragsdale claiming, “you can make 2500 in a week if you really put the work into it.” Ragsdale sent A.M. his phone number and the two discussed a meeting; however, the conversation ended without any arrangements being made.
On April 1, 2015, A.M. received a private message on his undercover Facebook account from “Deswan Newsome,” a defendant in a related case. Newsome and A.M. exchanged messages about A.M. engaging in prostitution, and A.M. advised Newsome that she was 15-years-old.
On April 2, 2015, an Amarillo Police Department officer, posing as A.M., made a phone call to Newsome, who answered, but turned the call over to a female who provided more details about prostitution to A.M. A.M. advised the female that she was 15-years-old.
On April 3, 2015, A.M. and Newsome exchanged messages and agreed to meet at a convenience store in Amarillo so A.M. could engage in prostitution. When Newsome arrived at the location he was identified and arrested. He admitted talking to A.M. on Facebook and said that he was going to have someone else teach her how to perform sex acts, and that he’d get 60 percent of the money she made for performing the commercial sex acts.
Newsome, 19, of Amarillo, pleaded guilty in July 2015 to one count of attempted sex trafficking of a child. He was sentenced in September to serve 135 months in federal prison.
The Amarillo Police Department and ICE HSI investigated. Assistant U.S. Attorney Joshua Frausto prosecuted the case.
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Florida Couple Plead Guilty in Stolen Identity Refund Fraud SchemeRead the Press Release
A Pembroke Pines, Florida, couple pleaded guilty for conspiring to use stolen identities to file fraudulent tax returns with the Internal Revenue Service (IRS), announced U.S. Attorney Wifredo Ferrer of the Southern District of Florida, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Special Agent in Charge Kelly R. Jackson of IRS-Criminal Investigation, Miami Field Office.
According to court documents, between July 2009 and August 2014, Walther Wilson Godfrey, 37; Rhonda Peggy Gittens, 35, and others conspired to defraud the United States by filing false federal income tax returns using stolen identities. Gittens owned and operated 2G Inc., a tax return preparation business and G&G Check Cashing Inc., a check cashing business, both of which were located in Pembroke Pines. Godfrey and Gittens obtained the personal identification information of actual individuals, some deceased, including names, social security numbers, addresses and dates of birth, without the individuals’ authorization and used this information to file false income tax refund claims for 2009 through 2011. Gittens and Godfrey recruited a co-conspirator to obtain Electronic Filing Identification Numbers (EFINs) in his name that would be used to file the fraudulent income tax returns. In addition, Godfrey and Gittens directed Brown to set up companies and bank accounts in his name in order to negotiate the fraudulently obtained income tax refund checks. Godfrey and Gittens filed more than 700 fraudulent tax returns requesting more than $1.9 million in income tax refunds. In addition, Godfrey and Gittens possessed device-making equipment including an identification card printer, a credit card embosser, hologram stickers for driver’s licenses and credit cards and blank credit cards.
Godfrey and Gittens pleaded guilty to one count of a multi-object conspiracy to defraud the United States, commit wire fraud and commit aggravated identity theft, one count of aggravated identity theft and one count of access device fraud. Both individuals face a statutory maximum sentence of five years in prison and three years of supervised release for the conspiracy charge, a statutory mandatory sentence of two years in prison and one year of supervised release for the aggravated identity theft charge and a statutory maximum sentence of 15 years in prison and three years of supervised release for the access device fraud charge. Godfrey and Gittens must serve the two year sentence for aggravated identity theft in addition to any sentence the court imposes on the other charges. Each charge also carries a maximum fine of $250,000. The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
U.S. Attorney Ferrer and Acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who investigated the case and Assistant U.S. Attorney Neil Karadbil of the Southern District of Florida and Assistant Chief Greg Tortella of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Florida Couple Plead Guilty in Stolen Identity Refund Fraud SchemeRead the Press Release
A Pembroke Pines, Florida, couple pleaded guilty for conspiring to use stolen identities to file fraudulent tax returns with the Internal Revenue Service (IRS), announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Wifredo Ferrer of the Southern District of Florida and Special Agent in Charge Kelly R. Jackson of IRS-Criminal Investigation, Miami Field Office.
According to court documents, between July 2009 and August 2014, Walther Wilson Godfrey, 37; Rhonda Peggy Gittens, 35, and others conspired to defraud the United States by filing false federal income tax returns using stolen identities. Gittens owned and operated 2G Inc., a tax return preparation business and G&G Check Cashing Inc., a check cashing business, both of which were located in Pembroke Pines. Godfrey and Gittens obtained the personal identification information of actual individuals, some deceased, including names, social security numbers, addresses and dates of birth, without the individuals’ authorization and used this information to file false income tax refund claims for 2009 through 2011. Gittens and Godfrey recruited a co-conspirator to obtain Electronic Filing Identification Numbers (EFINs) in his name that would be used to file the fraudulent income tax returns. In addition, Godfrey and Gittens directed Brown to set up companies and bank accounts in his name in order to negotiate the fraudulently obtained income tax refund checks. Godfrey and Gittens filed more than 700 fraudulent tax returns requesting more than $1.9 million in income tax refunds. In addition, Godfrey and Gittens possessed device-making equipment including an identification card printer, a credit card embosser, hologram stickers for driver’s licenses and credit cards and blank credit cards.
Godfrey and Gittens pleaded guilty to one count of a multi-object conspiracy to defraud the United States, commit wire fraud and commit aggravated identity theft, one count of aggravated identity theft and one count of access device fraud. Both individuals face a statutory maximum sentence of five years in prison and three years of supervised release for the conspiracy charge, a statutory mandatory sentence of two years in prison and one year of supervised release for the aggravated identity theft charge and a statutory maximum sentence of 15 years in prison and three years of supervised release for the access device fraud charge. Godfrey and Gittens must serve the two year sentence for aggravated identity theft in addition to any sentence the court imposes on the other charges. Each charge also carries a maximum fine of $250,000. The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Ferrer commended special agents of IRS-Criminal Investigation, who investigated the case and Assistant U.S. Attorney Neil Karadbil of the Southern District of Florida and Assistant Chief Greg Tortella of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Five Sentenced in Conspiracy Related to Acquiring FirearmsRead the Press Release
HOUSTON – Four area men and another from Brownsville have been ordered to federal prison for a conspiracy to make false statements in the acquisition of firearms, announced United States Attorney Kenneth Magidson.
Martin Olivares Garza, 50, Martin Ivan Garza, 24, Christopher Steven Foreman, 24, and Ricardo Luna, 27, all of Houston, and Gabriel Kisabel Trejo-Torres, 25, of Brownsville, had all previously pleaded for their respective roles.
Today, U.S. District Judge Gray Miller ordered Olivares Garza to serve 51 months in federal prison, while Ivan Garza, Foreman, Trevor-Torres and Luna received respective sentences of 12, 13, 33 and 46 months of imprisonment.
The investigation revealed that during a six-month time period, several of these defendants and others conspired to purchase approximately 80 firearms from various gun dealers in the Houston area. In the purchases, they claimed they were the buyers of the firearms, but were actually straw purchasers for other people. The false statements were made on the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) form 4473s. Straw purchasers knowingly made false statements on those farms, claiming they were purchasing for themselves when they actually purchased for others who provided monies and directed them as to which types of firearms to buy.
Ivan Garza, Foreman, Luna, Trejo-Torres and others were paid additional money to make purchases of firearms for Olivares Garza and Rosendo Padilla Jr.
The firearms included an assortment of various types of handguns and rifles. Approximately 30 of the firearms have been recovered in Mexico and an additional 11 were recovered during the investigation.
Padilla, 40, of Houston, also pleaded guilty and will be sentenced next week. Three other Houston residents - Gustavo Albano Decesaris, 25, Rebecca Andrea Villareal, 31, and Yuliana Sugey Trejo, 31 - also pleaded guilty and are awaiting sentencing.
Olivares and Trejo-Torres are in custody. The others were permitted to remain on bond.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Houston Police Department, the Pasadena Police Department and the Texas Department of Public Safety. Assistant U.S. Attorney Glenn Cook is prosecuting the case.
Federal Jury Finds Albuquerque Couple Guilty on Wire Fraud Charges Arising Out of Scheme to Defraud Office Supply BusinessRead the Press Release
ALBUQUERQUE – A federal jury sitting in Albuquerque, N.M., returned a verdict late this afternoon finding an Albuquerque couple guilty on wire fraud charges after a seven-day trial. Matthew Channon, 38, and his wife Brandi Channon, 35, were convicted on a conspiracy charge and six wire fraud charges arising out of a sophisticated scheme to defraud an office supply business out of more than $100,000.
In announcing the jury’s guilty verdict, U.S. Attorney Damon P. Martinez said, “These individuals stole money and property, using computers and e-mail as tools of their trade. This conviction shows the U.S. Attorney’s Office’s commitment to the investigation and prosecution of theft, whether electronic or at the point of a gun.”
“Criminals who cheat companies wind up costing hard-working families more at the cash register,” said Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division. “I am proud of the FBI Special Agents and support staff who investigated this case, and I congratulate the U.S. Attorney’s Office for a successful prosecution.”
The indictment charged the Channons with conspiracy to commit wire fraud, Matthew Channon with four counts of wire fraud, and Brandi Channon with two counts of wire fraud. The indictment alleged that the Channons perpetuated a scheme to defraud OfficeMax by using interstate wire communications to create numerous MaxPerk Rewards accounts in fictitious names to avoid OfficeMax’s policy of issuing only one account per person. The Channons then used the accounts to fraudulently claim rewards from OfficeMax to which they were not entitled. According to the indictment, the scheme continued from Aug. 2009 through June 2011, during which time the Channons fraudulently obtained MaxPerk Rewards certificates valued at more than $105,000.00.
Trial of the Channons commenced on Jan. 13, 2016, and concluded late this afternoon when the jury returned a guilty verdict on all seven counts of the indictment. The evidence at trial established that the Channons conspired to defraud OfficeMax by fraudulently creating more than 5000 MaxPerk Rewards accounts in the names of fictitious people. The couple went online and used the fraudulent accounts to falsely claim rewards-program credit for purchases that other customers had in fact made. The Channons falsely claimed that they engaged in more than 60,000 transactions with OfficeMax involving almost $2,000,000.00 worth of purchases, in over 300 stores located in over 20 states. As a result of their fraudulent conduct, the Channons defrauded OfficeMax of more than $100,000 worth of property.
At sentencing, the Channons face a statutory maximum penalty of 20 years in prison and a $250,000.00 fine. Their sentencing hearings have yet to be scheduled.
The case was investigated by the Albuquerque Division of the FBI and is being prosecuted by Assistant U.S. Attorneys Margaret M. Vierbuchen, Holland S. Kastrin and C. Paige Messec.
Federal Jury Convicts Corporate Executive for Lying to Federal Agents During Public Corruption Investigation Involving Dallas County CommissionerRead the Press Release
DALLAS — Following a nearly three-day trial in federal court in Austin, Texas before U.S. District Judge Sam Sparks, a federal jury convicted a corporate executive for lying to Special Agents of the Federal Bureau of Investigation in the public corruption investigation of Dallas County Commissioner John Wiley Price and others, announced U.S. Attorney John Parker of the Northern District of Texas and U.S. Attorney Richard L. Durbin, Jr., of the Western District of Texas.
Helena Tantillo, 59, of Austin, was an executive at BearingPoint when the firm won a contract in 2005 to digitize Dallas County records. The jury’s verdict today found Tantillo guilty on all counts of the indictment returned by an Austin federal grand jury in June 2015, which charged her with two counts of making false statements to law enforcement. She faces a maximum statutory penalty of five years in federal prison and a $250,000 fine on each count, and will remain on bond pending sentencing, set for April 22, 2016, in Austin.
The evidence at trial showed that Tantillo lied in an interview with the FBI in June 2014, when she falsely claimed that a temporary $10,000 increase in Christian Campbell’s consulting fees was to make a charitable donation to the favorite charity of another Dallas County Commissioner. Contrary to her false statement, Tantillo knew that the increase was at least, in part, in order to pay Kathy Nealy.
The jury also determined that Tantillo told a second lie to FBI agents in that same interview when she claimed that, after an earlier interview with FBI agents, she called her former BearingPoint supervisor, who supposedly reminded her that the charitable donation was the reason for Campbell’s increased monthly payment. Phone records and other evidence at trial demonstrated that this call never happened.
The FBI and Internal Revenue Service Criminal Investigation are conducting the investigation. Assistant U.S. Attorneys Walt M. Junker and J. Nicholas Bunch and Deputy Criminal Chief Assistant U.S. Attorney Katherine Miller are handling the prosecution.
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Evansville man sentenced for possession of child pornographyRead the Press Release
Evansville –United States Attorney Josh Minkler announced today that Christopher N. Gill, 36 of Evansville, Indiana, was sentenced to 120 months (10 years) in prison by U.S. District Chief Judge Richard L. Young following his guilty plea to possession of child pornography. This case was the result of an investigation by the Federal Bureau of Investigation Violent Crimes Task Force, the Evansville Police Department and the Vanderburgh County Sheriff’s Department.
On December 12, 2015, at the time of his guilty plea, Gill admitted to the Court that on November 11, 2014, he downloaded multiple images depicting minors under the age of 12, engaging in sexually explicit conduct. The images were obtained using his cellular telephone and uploaded to a Google internet-based data storage account. Gill was subject to a mandatory minimum ten year sentence because he has a prior conviction involving the possession of child pornography.
Gill is required to register as a sex offender due to a 2010 conviction in Vanderburgh County, Indiana, for possession of child pornography. In January 2015, Gill was called into the Vanderburgh County Sheriff’s office by an officer responsible for maintaining accurate information on the registry. Gill was questioned about an email account he failed to disclose and admitted that the account belonged to him. The Vanderburgh County Sheriff’s Department registration rules require sex offenders to disclose all their e-mail and social network accounts.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Judge Young imposed a lifetime term of supervised release following Gill’s release from prison. Gill must register as a sex offender, may not have unsupervised contact with minors and must participate in a sex offender treatment program while on supervision.
Ely Man Sentenced to Ten Years for Being a Felon and Unlawful Drug User in Possession of a FirearmRead the Press Release
A man who unlawfully possessed a shotgun was sentenced today in federal court in Cedar Rapids. Matthew Robbins, age 42, from Ely, Iowa, received the prison term after a January 22, 2016, guilty plea to one count of being a felon and unlawful drug user in possession of a firearm.
In a plea agreement, Robbins admitted that in 2014 he was an unlawful user of controlled substances, including methamphetamine, and had previously been convicted of eight felony offenses, namely:
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Conspiracy to Commit Robbery in the Second Degree (Sept. 6, 1991);
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Burglary in the Third Degree (Feb. 10, 1995);
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Dominion and Control of a Firearm as a Felon (Feb. 10, 1995);
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Operating While Intoxicated, Third Offense (Mar. 1, 1995);
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Possession with Intent to Deliver a Controlled Substance (Dec. 4, 1998);
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Operating While Intoxicated, Third Offense (Aug. 29, 2007);
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Attempt to Elude (Aug. 29, 2007); and
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Operating While Intoxicated, Third Offense (April 4, 2013).
Robbins admitted that, in about the Spring of 2014, he took possession of an Iver Johnson, 12 gauge shotgun. The shotgun had been left at his residence near Ely, Iowa, by another person. Robbins later had a friend store the shotgun at the friend’s residence for safekeeping.
Robbins was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Robbins was sentenced to 120 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Robbins is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney C.J. Williams and Special Assistant United States Attorney Erin Eldridge. The case was investigated by the Marion Police Department, Linn County Sheriff’s Office, Iowa Division of Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-129-LRR.
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Elk Grove Woman Sentenced to Prison for Stolen Mail Scheme, Ordered to Pay for Repairing Mail BoxesRead the Press Release
SACRAMENTO, Calif. — Keri S. Southwood, 21, of Elk Grove, was sentenced today to two years and eight months in prison for bank fraud and aggravated identity theft, United States Attorney Benjamin B. Wagner announced. U.S. District Judge Garland E. Burrell ordered Southwood to pay $12,300 in restitution, which includes $6,526 for repairing U.S. Postal Service mail boxes.
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated: “We are working closely with the U.S. Attorney’s Office and our partners at the Elk Grove Police Department to arrest and prosecute those responsible for mail theft to protect postal customer’s mail and personal information from theft.”
Elk Grove Police Chief Robert Lehner stated: “We appreciate the working relationship with the Postal Inspector’s Office in this case. These crimes have an enormous impact on a community like ours and it’s important that offenders be held appropriately accountable for their actions. In this case, I don’t know that would have happened without the partnership.”
According to court documents, between October 1, 2014 and February 12, 2015, Southwood and her co-defendants Joseph D. Ryan, 21, and Leonard A. Velasco, 24, both of Elk Grove, participated in a scheme to obtain stolen financial and personal identification information and use such to defraud financial institutions and merchants. Southwood and her co-defendants stole U.S. mail by damaging or destroying mail boxes and neighborhood U.S. Postal Service receptacles. After cataloguing the stolen mail, the defendants targeted certain postal customers in order to return to the mail receptacles to steal the replacement credit or debit cards mailed to the postal customers. The defendants also used information found in the stolen mail to apply for credit cards and had the cards sent to an address they controlled. The defendants used the credit or debit cards, PINs, and victims’ names to get money, goods and services.
According to court documents, Southwood and her co-defendants possessed stolen U.S. mail of over 1,000 victims and over 30 credit cards in victims’ names. As a result of the destruction of postal receptacles, customers suffered the loss of mail and mail services and the Postal Service suffered loss. Southwood pleaded guilty on September 1, 2015.
Co-defendant Ryan is scheduled for trial before Judge Burrell on April 5, 2016. The charges against Ryan are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Co-defendant Velasco pleaded guilty on August 25, 2015, to bank fraud and aggravated identity theft and is scheduled to be sentenced on February 5, 2016. Velasco faces up to 30 years in prison for bank fraud and two consecutive years in prison for aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was the product of an investigation by the United States Postal Inspection Service and the Elk Grove Police Department. Assistant United States Attorney Michelle Rodriguez prosecuted the case.
El Paso Businessowner Sentenced to Federal Prison for Role in Money Laundering Scheme Associated with Black Market Peso ExchangeRead the Press Release
In El Paso today, 53-year-old Jose Luis Rodriguez, owner of ERENE, Inc. (ERENE) was sentenced to 121 months in federal prison for implementing an estimated $100 million trade-based money laundering scheme announced United States Attorney Richard Durbin, Jr., Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter, and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez.
In addition to the prison term, United States District Judge David C. Guaderrama ordered that Rodriguez pay a $10,000 fine and be placed on supervised release for a period of three years after completing his prison term. Judge Guaderrama also ordered that Rodriguez forfeit to the Government property located at 600 S. Stanton in El Paso and approximately $650,000 in U.S. Currency seized from his bank accounts. In addition, Rodriguez agreed to forfeit to the Government shoe and other products seized during this investigation valued at over $1 million.
ERENE, formerly doing business as “J&E Sports” among other names, is an El Paso-based business which primarily sells shoes and other goods to U.S. and Mexican-based customers.
On August 27, 2015, the fourth day of his federal jury trial, Rodriguez pleaded guilty to one count of conspiracy to commit money laundering. By pleading guilty, Rodriguez admitted that he and others conspired to launder the proceeds of a scheme to illegally smuggle millions of dollars worth of goods into Mexico without paying the tariffs, duties, and fees imposed by the Mexican government. From March 6, 2006 to November 2014, these goods were ultimately smuggled using “pasadores” or black market smugglers and were done so without following the U.S. laws and regulations applicable to the export of goods from the United States. Evidence presented during trial also revealed that between 2012 and 2014, more than an estimated $2.3 million in bribes were paid to Mexican customs officials to facilitate the scheme.
“Today’s sentence is the culmination of a successful multi-agency investigation into a transnational criminal organization. These individuals moved money and U.S. goods across our border in furtherance of their illegal activities,” said Waldemar Rodriguez, special agent in charge of HSI El Paso. “HSI will continue to work with our law enforcement partners in the United States and Mexico to investigate and expose money laundering regardless of the schemes that are utilized.”
Three co-defendants--40–year-old ERENE Assistant Manager Jorge Penuelas, 53-year-old ERENE employee Manuel Rodriguez and 39-year-old Ricardo Cruz-Olguin—entered guilty pleas to the conspiracy charge prior to jury selection. Their sentences ranged from one year incarceration to three years probation. Two other co-defendants are fugitives. They are 38–year-old Cesar Salazar-Carrillo and 53-year-old Amalia Turcio Ortega. Both are charged with participating in the money laundering conspiracy.
This investigation was conducted by the HSI’s Financial Operations & Currency Unified Strikeforce (FOCUS). FOCUS is comprised of investigators from HSI, IRS – Criminal Investigation (IRS-CI), U.S. Postal Inspection Service (USPIS), Customs and Border Protection – Office of Field Operations (CBP-OFO), the El Paso Police Department and the Texas Attorney General’s Office. The Government of Mexico Servicio de Administracion Tributaria (SAT) also assisted in this investigation. The case was prosecuted by Assistant United States Attorneys Joseph Blackwell and John Gibson.
Durant Doctor Pays $275,000, Clinic Pays $1.5 Million to Resolve False Claims SuitRead the Press Release
DANIEL CASTRO, M.D.,
FORMERLY OF THE MEDICAL CENTER OF
SOUTHEASTERN OKLAHOMA,
TO PAY $275,000.00 TO RESOLVE FALSE CLAIMS ACT LAWSUITMUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced that DR. DANIEL CASTRO, an Otolaryngologist who practiced, from 2005 to 2010, at the Medical Center of Southeastern Oklahoma (MCSO), located in Durant, Oklahoma, has agreed to pay $275,000 to the United States and the State of Oklahoma to resolve allegations that he billed SoonerCare, the Oklahoma Medicaid Program, for surgical procedures that he performed and related office services, that were not performed as claimed and/or were not medically necessary. During the time in question, MCSO was owned by Healthcare Management Associates (HMA). In January of 2014, HMA was acquired by Community Health Systems, a nationwide acute care hospital chain.
United States Attorney Mark Green stated; “It is one of our office’s highest priorities to protect the citizens of our district against unscrupulous health care providers who don’t play by the rules. Performing unnecessary surgery not only harms patients but also wastes taxpayer dollars. The False Claims Act is a valuable weapon in the government’s arsenal to combat these types of abuses.”
The settlement announced today resolves allegations that Dr. Castro submitted claims to SoonerCare for surgical procedures known as functional endoscopic sinus surgeries (FESS) which require no incisions on the face but instead involve the insertion of a nasal endoscope, a very thin fiber optic tube, into the nose for a direct visual examination and clearing of the openings into the sinuses. The related office services that were not performed as claimed are known as endoscopic debridements, procedures performed by an otolaryngologist following a FESS in which an endoscope, or fiber optic tube, is inserted into the nose for a thorough inspection and removal of dried blood and crusting.
In a related settlement, HMA paid the United States and the State of Oklahoma $1.5 million dollars to resolve allegations that MCSO billed SoonerCare, the Oklahoma Medicaid Program, for surgical procedures performed by Dr. Daniel Castro and related hospital services that were not medically necessary.
The allegations that the government has settled with Dr. Castro and HMA were raised in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act. The Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. The whistleblower, Sandra Simmons, will receive a share of today’s settlement. The Act also permits the government to intervene in the whistleblower’s suit, as the government did here.
This civil settlement and the government’s intervention illustrate the government’s emphasis on combating health care fraud and mark another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by then Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sibelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $26.7 billion through False Claims Act cases, with more than $16.8 billion of that amount recovered in cases involving fraud against federal health care programs.
This case was a coordinated effort among the United States Attorney’s Office for the Eastern District of Oklahoma, the Civil Division of the United States Department of Justice, the Office of the Inspector General of the Department of Health and Human Services and the Office of the Oklahoma Attorney General. The lawsuit is captioned United States ex rel. Sandra Simmons v. Health Management Associates, Inc., Durant H.M.A., LLC d/b/a Medical Center of Southeastern Oklahoma, Durant HMA Physician Management, LLC and Dan J. Castro, M.D., Case No. CIV-12-043-JHP (E.D. Okla.).
Assistant United States Attorneys Susan S. Brandon and Robert Gay Guthrie represented the United States.
The claims settled or pursued by the government are allegations only; there has been no determination of liability.
Deported Jamaican Charged with Illegally Returning to U.S.Read the Press Release
PITTSBURGH – An individual found by the U.S. Department of Homeland Security has been indicted by a federal grand jury in Pittsburgh on charges of illegal reentry after deportation, United States Attorney David J. Hickton announced today.
The one-count indictment named Glenmore Almando Carey, 44, a citizen of Jamaica.
According to the indictment, Carey, an alien, who was previously removed from the United States by U.S. Immigration and Customs Enforcement on May 10, 2005, and was found to be living in Pittsburgh on Nov. 17, 2015, by Immigration and Customs Enforcement, Homeland Security Investigations.
The law provides for a maximum total sentence of twenty years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Immigration and Customs Enforcement Removal Operation 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.
Delaware Cheese Company Agrees to Plead Guilty to Food Adulteration Charge, Signs Consent DecreeRead the Press Release
A criminal information was filed today in the U.S. District Court for the District of Delaware against Roos Foods Inc., charging the company with the distribution of adulterated cheese in interstate commerce, the Department of Justice announced today. The company has signed a plea agreement in which it has agreed to plead guilty to a misdemeanor violation of the federal Food, Drug and Cosmetic Act (FDCA). In addition to the company’s agreement to plead guilty, Roos, and its principals, Ana A. Roos and Virginia Mejia, have agreed to a proposed consent decree of permanent injunction.
Roos Foods distributed several varieties of ready-to-eat cheese, including ricotta, queso fresco and fresh cheese curd and sold and distributed its products to wholesale customers in Maryland, New Jersey, Virginia and Washington D.C., according to the information. A civil complaint along with the proposed consent decree was also filed in the U.S. District Court for the District of Delaware. The criminal charge and civil complaint allege that Roos distributed cheese in interstate commerce connected to an outbreak of Listeria monocytogenes (L. mono) in early 2014.
“We must work to ensure that the food we buy is free from dangerous bacteria and is safe to eat,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work aggressively to combat and deter conduct leading to the distribution of adulterated food to consumers.”
“It is cases like this that demonstrate the need for government regulations concerning food safety, ” said U.S. Attorney Charles M. Oberly III for the District of Delaware. “Fortunately, there were no serious or permanent injuries as a result of the marketing of contaminated cheese. Manufacturers of our nation’s food supplies must comply with the law and when violators are found they should expect to be prosecuted and, if necessary, put out of business.”
The criminal information alleges that on Feb. 21, 2014, the Centers for Disease Control and Prevention (CDC) reported that a total of eight people (five adults and three newborns) in Maryland and California were infected with L. mono and according to the CDC, several of the Maryland patients reported having eaten soft or semi-soft cheeses in the month before becoming ill.
L. mono is the bacterium that causes the disease listeriosis. Listeriosis is most commonly contracted by eating food contaminated with L. mono. Listeriosis can be serious, even fatal, for high-risk groups such as unborn babies, newborns and those with impaired immune systems.
Unlike many other foodborne microbes, L. mono bacteria are capable of adapting and growing even at refrigerator temperatures. Thus, the presence of L. mono in ready-to-eat foods is a particularly significant public health risk.
As alleged in the information, following a report that L. mono had been isolated from cheese manufactured by Roos Foods, the U.S. Food and Drug Administration (FDA) inspected the firm’s Kenton, Delaware, facility and established that ready-to-eat cheese products were adulterated in that they had been prepared, packed or held under insanitary conditions whereby they may have become contaminated with filth or rendered injurious to health. As alleged, FDA found numerous failures to implement effective monitoring and sanitation controls in accordance with current Good Manufacturing Practices.
The information alleges that the FDA inspection revealed significant sanitation deficiencies, such as widespread roof leaks in the manufacturing area, including over open manufacturing equipment; rust flakes on the manufacturing equipment from corroded roof trusses and metal roofing; un-cleanable surfaces on walls, floors and ceilings and product residue on equipment that had purportedly been cleaned. In addition, as alleged in the information, FDA collected environmental samples and found L. mono on 12 surfaces in the facility.
On March 11, 2014, FDA suspended the food facility registration of Roos Foods after determining there was a reasonable probability that food manufactured, processed, packed, or held by Roos Foods would cause serious adverse health consequences or death to humans. A company without a food facility registration cannot distribute any food products. Roos Foods has not reopened.
“The FDA will not tolerate food companies that fail to provide adequate safeguards and place the public health at risk by producing and shipping contaminated products,” said FDA’s Deputy Commissioner for Global Regulatory Operations and Policy Howard Sklamberg, J.D. “We will continue to work with the Department of Justice to use the full force of our justice system against those that place profits over the health and safety of American consumers.”
The civil complaint alleges that Roos Foods and two individual defendants violated the FDCA by, among other things, introducing or delivering for introduction into interstate commerce articles of food that were adulterated in that the food was prepared, packed or held under insanitary conditions whereby it may have become contaminated with filth or rendered injurious to health. The proposed consent decree of permanent injunction requires the defendants to cease receiving, preparing, processing, packing, holding and distributing all food products unless and until the defendants bring their operations into compliance with the FDCA and its implementing regulations.
The criminal case is being prosecuted by Trial Attorney Heide L. Herrmann of the Justice Department’s Consumer Protection Branch and Assistant U.S. Attorneys Jennifer Welsh and Edmond Falgowski of the District of Delaware. They were assisted by Associate Chief Counsel Laura Pawloski of the Food and Drug Division, Office of General Counsel, Department of Health and Human Services. The case was investigated by the FDA’s Office of Criminal Investigations.
The government is represented in the civil case by Trial Attorney Megan Englehart of the Justice Department’s Consumer Protection Branch and Assistant U.S. Attorney Patricia Hannigan of the District of Delaware, with the assistance of Associate Chief Counsel Shannon M. Singleton of the Food and Drug Division, Office of General Counsel, Department of Health and Human Services.
A criminal information is merely an allegation and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
A civil complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
Delaware Cheese Company Agrees to Plead Guilty to Food Adulteration Charge, Signs Consent DecreeRead the Press Release
WILMINGTON, Del. – A criminal information was filed today in the U.S. District Court for the District of Delaware against Roos Foods Inc., charging the company with the distribution of adulterated cheese in interstate commerce, U.S. Attorney Charles M. Oberly, III announced today. The company has signed a plea agreement in which it has agreed to plead guilty to a misdemeanor violation of the federal Food, Drug and Cosmetic Act (FDCA). In addition to the company’s agreement to plead guilty, Roos, and its principals, Ana A. Roos and Virginia Mejia, have agreed to a proposed consent decree of permanent injunction.
Roos Foods distributed several varieties of ready-to-eat cheese, including ricotta, queso fresco and fresh cheese curd and sold and distributed its products to wholesale customers in Maryland, New Jersey, Virginia and Washington D.C., according to the information. A civil complaint along with the proposed consent decree was also filed in the U.S. District Court for the District of Delaware. The criminal charge and civil complaint allege that Roos distributed cheese in interstate commerce connected to an outbreak of Listeria monocytogenes (L. mono) in early 2014.
“We must work to ensure that the food we buy is free from dangerous bacteria and is safe to eat,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work aggressively to combat and deter conduct leading to the distribution of adulterated food to consumers.”
“It is cases like this that demonstrate the need for government regulations concerning food safety, ” said U.S. Attorney Charles M. Oberly III for the District of Delaware. “Fortunately, there were no serious or permanent injuries as a result of the marketing of contaminated cheese. Manufacturers of our nation’s food supplies must comply with the law and when violators are found they should expect to be prosecuted and, if necessary, put out of business.”
The criminal information alleges that on Feb. 21, 2014, the Centers for Disease Control and Prevention (CDC) reported that a total of eight people (five adults and three newborns) in Maryland and California were infected with L. mono and according to the CDC, several of the Maryland patients reported having eaten soft or semi-soft cheeses in the month before becoming ill.
L. mono is the bacterium that causes the disease listeriosis. Listeriosis is most commonly contracted by eating food contaminated with L. mono. Listeriosis can be serious, even fatal, for high-risk groups such as unborn babies, newborns and those with impaired immune systems.
Unlike many other foodborne microbes, L. mono bacteria are capable of adapting and growing even at refrigerator temperatures. Thus, the presence of L. mono in ready-to-eat foods is a particularly significant public health risk.
As alleged in the information, following a report that L. mono had been isolated from cheese manufactured by Roos Foods, the U.S. Food and Drug Administration (FDA) inspected the firm’s Kenton, Delaware, facility and established that ready-to-eat cheese products were adulterated in that they had been prepared, packed or held under insanitary conditions whereby they may have become contaminated with filth or rendered injurious to health. As alleged, FDA found numerous failures to implement effective monitoring and sanitation controls in accordance with current Good Manufacturing Practices.
The information alleges that the FDA inspection revealed significant sanitation deficiencies, such as widespread roof leaks in the manufacturing area, including over open manufacturing equipment; rust flakes on the manufacturing equipment from corroded roof trusses and metal roofing; un-cleanable surfaces on walls, floors and ceilings and product residue on equipment that had purportedly been cleaned. In addition, as alleged in the information, FDA collected environmental samples and found L. mono on 12 surfaces in the facility.
On March 11, 2014, FDA suspended the food facility registration of Roos Foods after determining there was a reasonable probability that food manufactured, processed, packed, or held by Roos Foods would cause serious adverse health consequences or death to humans. A company without a food facility registration cannot distribute any food products. Roos Foods has not reopened.
“The FDA will not tolerate food companies that fail to provide adequate safeguards and place the public health at risk by producing and shipping contaminated products,” said FDA’s Deputy Commissioner for Global Regulatory Operations and Policy Howard Sklamberg, J.D. “We will continue to work with the Department of Justice to use the full force of our justice system against those that place profits over the health and safety of American consumers.”
The civil complaint alleges that Roos Foods and two individual defendants violated the FDCA by, among other things, introducing or delivering for introduction into interstate commerce articles of food that were adulterated in that the food was prepared, packed or held under insanitary conditions whereby it may have become contaminated with filth or rendered injurious to health. The proposed consent decree of permanent injunction requires the defendants to cease receiving, preparing, processing, packing, holding and distributing all food products unless and until the defendants bring their operations into compliance with the FDCA and its implementing regulations.
The criminal case is being prosecuted by Trial Attorney Heide L. Herrmann of the Justice Department’s Consumer Protection Branch and Assistant U.S. Attorneys Jennifer Welsh and Edmond Falgowski of the District of Delaware. They were assisted by Associate Chief Counsel Laura Pawloski of the Food and Drug Division, Office of General Counsel, Department of Health and Human Services. The case was investigated by the FDA’s Office of Criminal Investigations.
The government is represented in the civil case by Trial Attorney Megan Englehart of the Justice Department’s Consumer Protection Branch and Assistant U.S. Attorney Patricia Hannigan of the District of Delaware, with the assistance of Associate Chief Counsel Shannon M. Singleton of the Food and Drug Division, Office of General Counsel, Department of Health and Human Services.
A criminal information is merely an allegation and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
A civil complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
DeLand Man Convicted of Conspiring to Distribute Three Kilograms of CocaineRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Alejandro Estrada Aplesa (27, DeLand) guilty of possession with intent distribute cocaine, and conspiracy to possess with intent to distribute, and to distribute, cocaine. He faces a maximum penalty of 40 years in federal prison for each count. A sentencing date has not yet been set.
Aplesa was charged by a superseding indictment on December 16, 2015.
According to evidence presented at trial, on August 24, 2015, Aplesa was stopped for speeding in St. Johns County on Interstate I-95. The St. Johns County Sheriff’s Office deployed a canine and handler team, which detected the presence of illegal drugs in the car. A search of the car revealed three one-kilogram bundles of cocaine in a bag under the driver’s seat. At the scene, Aplesa and his passenger denied that there were drugs in the car.
During the trial, Aplesa testified, denying that the cocaine had been his and asserted that he had been asked to run an errand, not knowing that the delivery of cocaine was involved. Aplesa claimed he had discovered the cocaine in the car only minutes before the traffic stop and that he had been returning to confront the man ultimately responsible for sending him on the delivery, but had been stopped by the police before he could do so.
This case was investigated by the St. Johns County Sheriff’s Office, the Putnam County Sheriff’s Office, and the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorneys Michael J. Coolican and Frank Talbot.
Dallas County Woman Sentenced to 57 Months in Federal Prison for Defrauding MedicaidRead the Press Release
DALLAS – Brenda Ward, 48, of Cedar Hill, Texas, was sentenced this morning by U.S. District Judge Sidney A. Fitzwater to 57 months in federal prison and ordered to pay $887,809 in restitution to Medicaid, following her guilty plea in July 2015 to one count of health care fraud. U.S. Attorney John Parker of the Northern District of Texas made the announcement today.
Judge Fitzwater ordered Ward to surrender to the Bureau of Prisons on March 8, 2016.
According to documents filed in the case, Ward, who was President and CEO of H.E.L.P.-Ing. Communities, Inc. (HCI), obtained a Medicaid group number for HCI and used that number, together with individual Medicaid provider numbers of licensed counselors and Medicaid recipient information, to submit fraudulent claims to Medicaid.
Ward, who is neither a psychotherapist nor a mental health provider, submitted claims for individual, family, and group psychotherapy sessions that were not performed. As part of her fraud scheme, Ward used the Medicaid provider numbers of four licensed counselors, without their knowledge and consent, to submit claims under the HCI group number for services that they did not perform. Ward also used the Medicaid provider information of a fifth licensed counselor who worked for her to submit claims for psychotherapy services that both predated and postdated the counselor’s actual employment with her, as well as claims for services that the counselor did not provide during the counselor’s employment. Ward used the identification of more than 290 Medicaid recipients, most of whom were minor children, in her scheme.
Ward admits that from January 1, 2009, through February 9, 2015, she personally submitted fraudulent claims to Medicaid and to Medicaid Managed Care Organizations, through HCI, totaling approximately $1,639,923; Ward was paid approximately $887,809 for these claims.
The FBI, the U.S. Department of Health and Human Services – Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit investigated. Assistant U.S. Attorney Douglas Brasher prosecuted.
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Columbia Business Owner Charged with MethRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the owner of a Columbia, Mo., business was charged in federal court today with possessing methamphetamine to distribute.
Troy C. Lewis, 30, of Columbia, was charged in a federal criminal complaint filed in the U.S. District Court in Springfield, Mo., with possessing 50 grams or more of methamphetamine with the intent to distribute.
Lewis, the owner of The Tint Shop in Columbia, remains in federal custody pending a detention hearing on Monday, Jan. 25, 2016.
According to an affidavit filed in support of today’s criminal complaint, Columbia police officers stopped a Chevy Tahoe on Rangeline Road near Prathersville Road in Columbia on Thursday, Jan. 21, 2016. Lewis was lying down on the third row seat of the Tahoe in an attempt to hide from officers, the affidavit says. Upon searching the Tahoe, officers located a bag containing approximately 527 grams of marijuana and a bag containing approximately 71 grams of concentrated marijuana, made for vaping, between the second and third row seats on the floorboard. Additionally, the affidavit says, officers located were two bags of marijuana under the cup holder next to the third row seat where Lewis was lying. Each of these two bags contained in excess of 500 grams. Officers also located approximately 170 grams of methamphetamine in the center console area under the front tray.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Columbia, Mo., Police Department.
Coconut Grove Woman Indicted for Selling Counterfeit Merchandise out of her Residence, Bankruptcy Fraud, and Money LaunderingRead the Press Release
A Coconut Grove woman is charged with trafficking in counterfeit merchandise, bankruptcy fraud, and money laundering.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
Tatiana F. Tascon, 40, of Coconut Grove, was charged by indictment with three counts of trafficking in counterfeit goods, in violation of Title 18, United States Code, Section 2320(a)(1); two counts of bankruptcy fraud, in violation of Title 18, United States Code, Sections 152(1) and 152(2); and forty-five counts of money laundering, in violation of Title 18, United States Code, Section 1956(a)(1)(B)(i). The defendant had her initial appearance today before the U.S. Magistrate Judge Patrick A. White, in Miami.
As alleged in the indictment and other court documents, the defendant trafficked in counterfeit goods, including high-end designer handbags, wallets and watches, out of a showroom in her Coconut Grove residence. While trafficking in counterfeit goods, the defendant filed for and was ultimately granted Chapter 7 bankruptcy protection. In her bankruptcy filings the defendant failed to report that she had earned over $700,000 from her illicit counterfeit goods business. The defendant laundered the earnings from her illegal business through the bank accounts of third parties.
Mr. Ferrer commended the investigative efforts of ICE-HSI. This case is being prosecuted by Assistant U.S. Attorneys Robert J. Emery, Daya Nathan, and Eloisa Fernandez.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Coalgate Man Pleads Guilty to Theft of Government FundsRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that JOHN RICHARD FLOURNOY, age 47, of Coalgate, Oklahoma, pled guilty to THEFT OF GOVERNMENT FUNDS, in violation of Title 18, United States Code, Section 641 and a FORFEITURE ALLEGATION.
The charges arose from an investigation by the Social Security Administration, Office of Inspector General. The defendant was indicted in December 2015.
The Indictment alleged that beginning in or about February, 2011, and continuing until on or about December 23, 2013, within the Eastern District of Oklahoma, the defendant, did willfully and knowingly steal and purloin money of the Social Security Administration, a department or agency of the United States, namely, Social Security Administration Supplemental Security Income payments to which he knew he was not entitled, having a value in excess of $1,000.00.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion.
Assistant United States Attorney Rob Wallace represented the United States.
Clarksburg, WV man convicted of heroin traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Randy Joe Jones, 32, of Clarksburg, was convicted of heroin trafficking today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Jones sold heroin near Harrison Street Park in Harrison County, West Virginia. He pled guilty today to one count of “Distribution of Heroin Within 1,000 feet of a Protected Location.” He faces between one and forty years in prison and a fine of up to $4,000,000. 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 Shawn Adkins prosecuted the case on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Irene M. Keeley presided.
Cedar Rapids Man Sentenced to More than Six Years in Prison for Being an Unlawful Drug User in Possession of a HandgunRead the Press Release
A man who possessed a loaded handgun in July 2015, then used a different handgun to rob a pizza delivery driver later the same year, was sentenced yesterday to more than six years in federal prison. Treshawn Smith, age 19, from Cedar Rapids, Iowa, received the prison term after an August 31, 2015 guilty plea to one count of being an unlawful drug user in possession of a firearm.
In a plea agreement, Smith admitted he was an unlawful user of marijuana in 2015. On July 10, 2015, officers encountered Smith on the southwest side of Cedar Rapids. The officers saw Smith throw an object on the ground and when they investigated, they discovered it was a loaded .38 caliber handgun. Smith admitted having handled the firearm. At his sentencing hearing on January 21, 2016, the government presented evidence that on December 16, 2015, Smith used another handgun to rob a pizza delivery driver. When the driver and his companion attempted to follow him, Smith turned and fired one shot at them.
Smith was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Smith was sentenced to 81 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Smith is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney C.J. Williams and investigated by the Cedar Rapids Police Department and the FBI Safe Streets Task Force. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-0081-LRR.
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Carmel investor found guilty in Fraud schemeRead the Press Release
Indianapolis –United States Attorney Josh J. Minkler announced today that Jamie C. Lopez, 41, Carmel, was found guilty of 66 counts of wire fraud, securities fraud and money laundering after a four-day jury trial before U. S. District Judge Tanya Walton Pratt.
“Stealing from retirement accounts to fund a gratuitous lifestyle is about as low as you can go. The greed of these defendants continues to shock me,” said Minkler. “Hopefully word will get out that the consequences of greed include being hit with the hammer of the federal judicial system.”
Lopez was a financial advisor who conducted business from his home in Carmel. He created various business names, JCL Interest Plus, JCL Capital Inc. and JCL Directs (JCL Entities) to direct funds from the unsuspecting investors. From January 2010-until June 2012, Lopez convinced investors to transfer their Individual Retirement Accounts to self-directed accounts. Lopez would then transfer the money into JCL Entities under his control.
Lopez solicited hundreds of thousands of dollars telling investors he had reinvested the money by loaning it to outside businesses, purchasing corporate bonds and notes or investing in real estate. Additional funds were used by Lopez to pay interest on promissory notes issued to the investors. Later the investors were issued new promissory notes for a longer term of investment and at a much lower rate of interest. Lopez never invested the money as promised, rather spending the money on the purchase of automobiles, home mortgage payments and home landscaping.
This case was investigated by the Internal Revenue Service-Criminal Investigation and the Indiana Secretary of State, Securities Division.
Internal Revenue Service Criminal Investigation Special Agent in Charge, James D. Robnett stated, “Today, justice is being served, Mr. Lopez is being held accountable for his criminal business practices. IRS Criminal Investigation will continue to aggressively pursue those, like Mr. Lopez, who defraud and steal from honest, hardworking Americans.”
“Lopez was not registered to sell securities with my office, which is the number one red flag of fraud,” said Secretary of State Connie Lawson. “Instead of operating as a licensed professional, he preyed on people he knew through church and took advantage of their trust. I hope this case serves as a warning to others to always check with my office before making an investment.”
According to Assistant United States Attorney James M. Warden, who is prosecuting the case for the government, Lopez could face up to 20 years on each count of wire fraud, 10 years for money laundering and 20 years for securities fraud.
No future sentencing date has been set.
California Man Sentenced in Federal Court on Methamphetamine ChargesRead the Press Release
A California man was recently sentenced to federal prison on methamphetamine charges, James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today.
On January 21, 2016, Edsgardo Ambriz-Lopez, 24, of East Alto Paso, California, was sentenced to 156 months’ imprisonment, five years’ supervised release following his imprisonment, and was fined $350. Ambriz-Lopez had previously pleaded guilty to seven counts in a federal indictment.
Count 1 charged that from on or about November 2013, until on or about December 2014, in Williamson County, Illinois, Marion County, Illinois, the State of California, and elsewhere, Ambriz-Lopez knowingly conspired and agreed with others to distribute methamphetamine. Counts 13, 14, 16, and 17 charged that Ambriz-Lopez knowingly and intentionally distributed methamphetamine. Count 15 charged that Ambriz-Lopez knowingly and intentionally distributed heroin. Count 18 charged Ambriz-Lopez with conspiracy to commit money laundering.
The investigation in this case was conducted by the Drug Enforcement Administration, the Illinois State Police, and the Internal Revenue Service.
The case is being handled by Assistant United States Attorney George Norwood.
Belarus Native Involved in Credit Card Processing for ‘Scareware’ Scheme Extradited from AustriaRead the Press Release
A 35-year-old citizen of Belarus will appear in U.S. District Court in Seattle today following his arrest last year in Vienna, Austria and extradition to the Western District of Washington, announced U.S. Attorney Annette L. Hayes. ALEXANDER MIHAILOVSKI was indicted in August 2012 for conspiracy to commit wire fraud, accessing a protected computer in furtherance of fraud, and intentional damage to a protected computer. MIHAILOVSKI will make an initial appearance today before U.S. Magistrate Judge John L. Weinberg.
“This defendant has now learned the hard lesson that so many other cyber criminals have had to confront: engaging in cybercrime from another country is not an effective shield from being held to account,” said United States Attorney Annette L. Hayes. “This defendant made his initial appearance today because we worked diligently with our law enforcement partners around the world to identify and extradite him. Like others who have committed crimes in our district, this defendant will have his day in court subject to all the protections our criminal justice system provides. But if found guilty, he will be held responsible for the very real harm he caused to the victims of his scam.”
According to the indictment, MIHAILOVSKI operated a credit card payment processing company called Mystique Enterprises LTD, doing business as PSBILL. MIHAILOVSKI and his company were part of an international cybercrime ring that netted $71 million by infecting victims’ computers with “scareware” and selling rogue antivirus software that was supposed to secure victims’ computers but was, in fact, useless.
The prosecution of MIHAILOVSKI is part of Operation Trident Tribunal, a coordinated enforcement action targeting international cybercrime rings that caused more than $71 million in total losses to more than one million computer users through the sale of fraudulent computer security software known as “scareware.” Scareware is malicious software that poses as legitimate computer security software and purports to detect a variety of threats on the affected computer that do not actually exist. Users are then informed they must purchase what they are told is anti-virus software in order to repair their computers. The users are then barraged with aggressive and disruptive notifications until they supply their credit card number and pay for the “anti-virus” product, which is, in fact, fake.
The scareware scheme used a variety of ruses to trick consumers into unknowingly infecting their computers with the malicious scareware products, including web pages featuring fake computer scans. Once the scareware was downloaded, victims were notified that their computers were infected with a range of malicious software, such as viruses and Trojans and badgered into purchasing the fake antivirus software to resolve the non-existent problem at a cost of up to $129. An estimated 960,000 users were victimized by this scareware scheme, leading to $71 million in actual losses.
MIHAILOVSKI is the second foreign national prosecuted in the scheme. In December 2012, Mikael Patrick Sallnert, 40, a citizen of Sweden, was sentenced to four years in prison and was ordered to pay $650,000 in forfeiture. Sallnert also served as a credit card payment processor for the crime ring.
This case is being investigated by the FBI Seattle Division Cyber Task Force and other FBI entities. The case is being prosecuted by Assistant U.S. Attorney Norman Barbosa. Substantial assistance was provided by the Criminal Division’s Office of International Affairs and the Computer Crime and Intellectual Property Section.
Critical assistance in the investigation was provided by the Security Service of Ukraine, German Federal Criminal Police, Netherlands National High-Tech Crime Unit, London Metropolitan Police, Latvian State Police, Lithuanian Criminal Police Bureau, Swedish National Police Cyber Unit, French Police Judiciare, Royal Canadian Mounted Police, Romania’s Directorate for Combating Organized Crime, Cyprus National Police in cooperation with the Unit for Combating Money Laundering, the Danish National Police, and the Austrian Federal Ministry of Justice.
To avoid falling victim to a scareware scheme, computer users should avoid purchasing computer security products that use unsolicited “free computer scans” to sell their products. It is also important for users to protect their computers by maintaining an updated operating system and using legitimate, up-to-date antivirus software, which can detect and remove fraudulent scareware products.
Computer users who think they have been victimized by scareware should file a complaint with the FBI’s Internet Crime Complaint Center, www.ic3.gov.