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Thursday 21 January 2016
Massachusetts Company Charged in Connection with Disadvantaged Business Enterprise FraudRead the Press Release
BOSTON – Transit Safety Management, Inc., a Georgetown, Mass. consulting company, was charged today with making a false statement in connection with its certification for favored contracting status.
Transit Safety Management, Inc. (TSM), was charged by an Information with one count of making a false statement to a state agency in order to maintain its status as a "disadvantaged business enterprise" (DBE).
In order to qualify as a DBE, a company’s management must be controlled by a socially or economically disadvantaged individual such as a woman or minority. The purpose of the program is to give an economic advantage to minorities and women who run their own companies. However, the manager of the DBE cannot also engage in employment that would prevent her from devoting sufficient attention to the affairs of the DBE. In this case investigators discovered that TSM’s purported owner was a full-time employee of a federal agency and the business was really operated by her husband making it ineligible for certification as a DBE.
TSM provided consulting services to the railroad industry, focusing on safety and operations management. Shortly after it was founded in 1999, TSM's owner certified the company as a "disadvantaged business enterprise" (DBE). As such, TSM was able to take advantage of federal regulations aimed at promoting the participation of minority and disadvantaged businesses in federally-funded public construction contracts. Under the DBE regulations, a contractor to transportation projects must either subcontract a percentage of its work to a DBE or show that it made a good faith effort to subcontract work to a DBE but was unable to do so. This requirement makes the DBE status a valuable and potentially lucrative designation.
In order to maintain its DBE certification, TSM had to make yearly affirmations that it was still eligible and that nothing had changed that would affect its eligibility for the favored DBE status. Despite this, TSM lied about whether it met the criteria for DBE status. According to court documents, TSM’s owner was hired as a full-time employee with a federal agency in 2005. As a full time federal employee, TSM’s purported manager could not control TSM under the regulations. Nevertheless, TSM failed to disclose this change and continued to make its yearly affirmations to maintain is DBE status.
As part of its plea agreement, TSM has agreed to pay a fine of $84,000 and dissolve its operations.
United States Attorney Carmen M. Ortiz; Todd Damiani, Special Agent in Charge of the U.S. Department of Transportation, Office of Inspector General, Office of Investigations; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption Unit.
The details contained in the Information are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Manhattan U.S. Attorney Announces $46.7 Million Settlement of Civil Fraud Claims Against Centerlight Healthcare for Enrollment of Ineligible Individuals in Medicaid Managed Long-Term Care PlanRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Scott J. Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s New York Region (“HHS-OIG”), announced today that the United States has settled civil fraud claims under the False Claims Act against CenterLight Healthcare, Inc., and CenterLight Health System, Inc. (collectively, “CenterLight”), for the enrollment of ineligible members in the CenterLight Healthcare managed long-term care plan (“CenterLight MLTCP”). CenterLight improperly billed the Medicaid program for 1,241 members who attended or were referred by social adult day care centers (“SADCCs”) and whose needs did not meet the criteria of the managed care plan. The settlement resolves claims that CenterLight engaged in improper marketing practices to enroll members through SADCCs and induced such members to use SADCCs as the members’ primary source of personal care services. CenterLight continued to seek and obtain monthly capitation payments for members well after the New York State Department of Health issued guidance in early 2013 explicitly stating that an individual’s attendance at SADCCs does not satisfy the MLTCP eligibility standard.
Under the terms of the settlement approved yesterday by United States District Judge Lewis A. Kaplan, CenterLight must pay a total of $46,751,086.74 to the Medicaid Program, $18,700,434.70 of which will go to the United States. In addition, CenterLight is required to:
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Comply with all contractual and regulatory requirements governing the enrollment, assessment, re-assessment, and dis-enrollment of CenterLight MLTCP members.
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Credential only SADCCs that are properly certified and capable of providing community-based personal care services consistent with regulatory requirements.
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Monitor SADCCs in its provider network to ensure that they furnish the community-based personal care services called for under CenterLight MLTCP member care plans and operate in compliance with applicable regulations.
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Prohibit marketing practices that are directed at enrolling CenterLight MLTCP members through SADCCs.
Manhattan U.S. Attorney Preet Bharara said: “CenterLight Healthcare improperly received millions of Medicaid dollars by enrolling ineligible members into its managed care plan. With this settlement, CenterLight now has admitted to its conduct and will pay over $46 million. We are committed to holding health care providers accountable if they wrongfully seek and receive federal funds, and we thank HHS’s Office of the Inspector General and the New York State Attorney General’s Office for their assistance.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “CenterLight’s conduct compromised the integrity of the Medicaid program by enrolling beneficiaries in a plan for which they were not eligible. HHS-OIG is committed to holding providers accountable for their practices, and the manner in which care is provided.”
Pursuant to the Medicaid managed long-term care program, health care providers, such as CenterLight, are responsible for arranging and managing long-term health care services offered to Medicaid beneficiaries. In exchange, providers receive a monthly capitation payment of approximately $3,800 for each beneficiary enrolled in the health care plan. MLTCPs offer a variety of services, including assistance with activities of daily living, care management services, skilled nursing services, physical therapy, occupational therapy, speech therapy, nursing home care, and preventive services. In order to qualify for enrollment in an MLTCP, Medicaid beneficiaries need to, among other things, be eligible for a nursing home level of care and require at least 120 days of community-based long-term care, which includes a wide range of health care services such as personal care services. CenterLight contracted with SADCCs to provide care, including personal care services, to CenterLight MLTCP members.
In the settlement agreement, CenterLight admits that 1,241 CenterLight MLTC members who had been referred by SADCCs or had used SADCC services were not eligible to be members of the managed care plan. Many of these ineligible members were not eligible at the time of their initial enrollment, while others were ineligible to remain in the managed care plan at the time of their re-assessment but were not dis-enrolled in a timely manner. Although the SADCCs were supposed to be providing care to CenterLight members, CenterLight admits that various SADCCs in its provider network did not provide services that qualified as personal care services under the terms of its Medicaid contract or were not legally permitted to provide such services.
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Mr. Bharara thanked HHS’s Office of the Inspector General for its assistance with the case. Mr. Bharara also thanked the Medicaid Fraud Control Unit of the New York State Attorney General’s Office for its investigative efforts and assistance.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Jeffrey K. Powell is in charge of the case.
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Louisville Man Charged with Stealing United States Postal Service Parcels from Porches of Metro Louisville ResidencesRead the Press Release
LOUISVILLE, Ky. – A Louisville man was charged this week by federal grand jury indictment, with two counts of theft of United States Postal Service (USPS) parcels, which had been left for collection with other mail matter, on December 3, 2015, announced U.S. Attorney John E. Kuhn, Jr.
Joseph L. Carr, 48, is charged with stealing a Hot Wheels Airbrush Auto Designer Kit from mail left at a home on Larchmont Avenue in Louisville, and stealing a coat, blanket, and rug from mail at another home located on Larchmont Avenue.
According to an Affidavit attached to a Criminal Complaint, Carr was seen by construction workers carrying a package from a Larchmont Avenue home. The workers reported that the male (Carr) opened the package, removed the contents and placed the packaging in a trash can on the street. Carr was later stopped by Louisville Metro Police carrying a Kohl’s merchandise bag, and consented to a search. The Kohl’s merchandise included a black Warm-Tek coat (still in plastic wrapping and bearing a $100.00 price tag), a Sonoma Lifestyle throw blanket (still in plastic wrapping and bearing a $44.99 price tag, and an Estate rug (still in plastic wrapping and bearing a $34.99 price tag). CARR also had a Hot Wheels Airbrush Auto Designer kit (still in box). An opened USPS Priority Mail box was recovered from the garbage can and was addressed to Larchmont Ave in Louisville, KY.
A year prior to Carr’s arrest on these federal charges, Carr was arrested by LMPD for similar charges including multiple counts of mail theft and receiving stolen property which took place on December 4, 2014. According to those charges, several USPS customers had packages stolen from their residences. Several of the customers turned over surveillance videos from their homes showing a male, later identified as Carr, stealing packages. Carr was sentenced for those charges on December 14, 2015.
If convicted at trial, Carr could be sentenced to no more than five years in prison, fined $250,000 and be required to serve one year of supervised release. Carr is currently in the custody of the U.S. Marshals Service.
This case is being prosecuted by Assistant United States Attorney Daniel P. Kinnicutt and is being investigated by the United States Postal Inspection Service and the Metro Louisville Police Department.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Local Doctor and Pharmacist Arrested in Pill Mill InvestigationRead the Press Release
DALLAS — A local doctor and pharmacist were arrested yesterday morning on federal charges stemming from their respective roles in a conspiracy to distribute controlled substances illegally, including oxycodone and hydrocodone, in a pill mill operation, announced U.S. Attorney John Parker of the Northern District of Texas.
Special agents with the Drug Enforcement Administration arrested Dr. Richard Andrews, 63, of Dallas; Muhammad Faridi, 39, of Murphy, Texas; Adrian Banks, 22, of Dallas; and pharmacist Ndufola Kigham, 44, of Arlington, Texas. Each is charged in a just-unsealed second superseding indictment with one count of conspiracy to distribute a controlled substance.
Each made his initial appearance yesterday afternoon in federal court in Dallas. After agreeing to surrender their DEA registration numbers, Dr. Andrews and pharmacist Kigham were released on bond. Surrendering their registration numbers prevents Dr. Andrews from issuing prescriptions for controlled substances and pharmacist Kigham from dispensing controlled substances. Faridi and Banks were detained pending hearings set for tomorrow, Friday, January 22, at 1:00 p.m.
This indictment also charges Brandon Dunbar, 32, of Houston; Kumi Frimpong, 55, of Grand Prairie, Texas; and Lee Robertson, 31, presently in state custody in Louisiana; with the same offense. In addition, Banks, Dunbar and Robertson are also each charged with one count and Frimpong with two counts, of unlawful use of a communication facility.
Numerous other defendants were charged in the conspiracy in previous indictments. Five have pleaded guilty, and the remainder are set for trial on June 16, 2016.
According to the second superseding indictment, returned earlier this month by a grand jury in Dallas, Andrews is a doctor of osteopathy and co-owner and supervising physician of McAllen Medical Clinic, located on South Hampton in Dallas. Frimpong and Kigham are licensed pharmacists. Frimpong is the owner, operator, and pharmacist in charge of Cornerstone Pharmacy, located on Bolton Boone in Desoto, Texas. Kigham is the owner, operator, and pharmacist in charge of GenPharm Pharmacy, located on Wheatland Road in Desoto.
The indictment alleges that from approximately January 2013 through July 2014, Andrews, Banks, Dunbar, Faridi, Frimpong, Kigham, Robertson, and others previously charged in the indictment, conspired to possess with intent to distribute, distribute, and cause to be distributed, oxycodone, a Schedule II controlled substance, and hydrocodone, a Schedule III controlled substance, without a legitimate medical purpose and not in the usual course of professional practice.
As part of the conspiracy, individuals who were homeless, or of limited means, were recruited to pose as patients at certain medical clinics to obtain prescriptions for oxycodone and hydrocodone and fill those prescriptions at designated pharmacies. The recruits were typically paid a fee, such as $30. Recruiters would organize the recruits so that another individual would pick them up and transport them to and from the clinics. The drivers or the script ringleader would typically pay the recruiters a small fee, such as $15, for each person they recruited. Drivers or script ringleaders would coach recruits on what to say inside the clinic to obtain the specified prescription. Drivers or script ringleaders paid for the recruits’ clinic visits.
Further, the indictment alleges as part of the conspiracy, that specific clinics attempted to minimize the possibility of detection by law enforcement by limiting patients to recruits accompanied by known and trusted drivers, and the clinics attempted to maximize their profits by providing the prescriptions sought by the script ringleaders, such as 30mg oxycodone. The clinics provided the oxycodone prescriptions by hiring medical practitioners willing to write them even though the clinic owners, managers, and practitioners knew they were not issued for a legitimate medical purpose in the usual course of professional practice. To avoid detection by law enforcement, clinic owners and managers, script ringleaders, drivers, and recruits, concealed and assisted others in concealing the illicitly issued nature of the prescriptions, the quantities of controlled substances obtained and distributed and the amount of the drug proceeds.
The driver or script ringleader transported the recruits and prescriptions, or just the prescriptions, to designated pharmacies to be filled and paid for the prescriptions. Drivers would then deliver the controlled substances to the script ringleaders who distributed and dispensed, and possessed with intent to distribute and dispense, oxycodone and hydrocodone.
Dr. Andrews wrote and issued prescriptions for 30mg oxycodone pills without conducting medical exams, and for which he knew there was not legitimate medical purpose and outside the usual course of professional practice. Faridi ensured script ringleaders had access to McAllen and could obtain the prescriptions they sought. Faridi also filled out prescriptions for 30mg oxycodone pills and obtained Andrews’s signature on them.
The indictment also alleges that between January 2013 and July 2014:
Dr. Andrews and Faridi distributed and caused to be distributed at least 150,000 30mg oxycodone pills by issuing prescriptions knowing that the prescriptions had not been issued for a legitimate medical purpose by a medical practitioner acting in the usual course of professional practice;
Frimpong distributed and dispensed from Cornerstone Pharmacy at least 40,000 30mg oxycodone pills by filling prescriptions written by Dr. Andrews, knowing the prescriptions had not been issued for a legitimate medical purpose by a medical practitioner acting in the usual course of professional practice; and
Kigham distributed and dispensed from GenPharm Pharmacy at least 70,000 30mg oxycodone pills by filling prescriptions written by Dr. Andrews, knowing the prescriptions had not been issued for a legitimate medical purpose by a medical practitioner acting in the usual course of professional practice.
An indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the statutory maximum penalty for the conspiracy offense is 20 years in federal prison and a $1 million fine. The statutory maximum penalty for each of the unlawful use of a communication facility counts is four years in federal prison and a $250,000 fine. The indictment also includes a forfeiture allegation that would require the defendants, upon conviction, to forfeit approximately $20,000 seized by the Drug Enforcement Administration.
The Drug Enforcement Administration is conducting the investigation. Assistant U.S. Attorney Mary Walters is in charge of the prosecution.
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Las Cruces Man Sentenced to Prison for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Michael Paul Astorga, 30, of Las Cruces, N.M., was sentenced this morning in federal court to 41 months in prison followed by three years of supervised release for violating the federal firearms laws.
Astorga was arrested on Nov. 20, 2014, on an indictment charging him with being a felon in possession of firearms and ammunition on Aug. 31, 2012, in Doña Ana County, N.M. At the time, Astorga was prohibited from possessing firearms or ammunition because he previously had been convicted of robbery.
Astorga pled guilty to the indictment on Feb. 26, 2015, and admitted that on Aug. 31, 2012, he sold two firearms and ammunition to an undercover law enforcement agent and a person working with law enforcement. He also acknowledged that as a convicted felon, he was prohibited from possessing firearms or ammunition.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Landlord Sentenced to Probation with Home Detention for Fraud SchemeRead the Press Release
PITTSBURGH – A Pittsburgh resident was sentenced today in federal court to five years probation with six months home confinement, and restitution of $43,054, on his conviction of theft of government property, United States Attorney David J. Hickton announced today.
United States Chief District Court Judge Joy Flowers Conti imposed sentence upon Julio Rafael Antomachi, III, 28, of Pittsburgh, Pa.
According to information presented to the court, under the Department of Housing and Urban Development’s Section 8 Housing Choice Voucher Program, Antomachi fraudulently received federal housing subsidy monies as a purported landlord of the property located at on Friday Road, Pittsburgh, Pennsylvania. From February 2010 through February 2015, Antomachi wrongfully converted $43,054.00 in federal housing subsidy monies.
Assistant United States Attorney Mary McKeen Houghton prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Department of Housing and Urban Development, Office of the Inspector General, for the investigation leading to the successful prosecution of Antomachi.
Kearney Psychiatrist Sentenced for Failure to Pay TaxesRead the Press Release
United States Attorney Deborah A. Gilg announced that a Kearney, Nebraska, psychiatrist was sentenced Wednesday, January 20, 2016, to serve five years of probation for failing to pay over more than $131,000 in federal payroll taxes. In addition, Dr. Reynaldo De Los Angeles, age 70, was ordered to provide free psychiatric services to residents of Buffalo County for one day per month for the term of his probation. Senior United States District Judge Richard G. Kopf sentenced Dr. De Los Angeles in Lincoln, Nebraska.
According to court documents, Dr. De Los Angeles was indicted in December 2014, and charged with nine counts of failure to pay over Social Security, Medicare and federal income taxes withheld from employees of his Kearney and Grand Island mental health clinics between 2008 and 2012. The indictment alleged Dr. De Los Angeles, as president of his company and the individual responsible for the corporate financial business affairs, withheld $131,775.28 from the employees’ paychecks but failed to pay the payroll taxes to the Internal Revenue Service as required. Dr. De Los Angeles pled guilty on October 22, 2015. Dr. De Los Angeles will be required to spend eight weekends in the Dawson County jail. Judge Kopf cited Dr. De Los Angeles’s age and health as partial reasons for sentencing him to probation.
Dr. De Los Angeles is also required to pay $131,775.28 in restitution to the Internal Revenue Service, provide access to his financial records to his probation officer to assess his ongoing ability to pay restitution and to monitor his lifestyle, and successfully complete a cognitive-behavioral based program to assist him continue to be a productive citizen.
“Business owners have a responsibility to withhold income taxes for their employees and remit those taxes to the Internal Revenue Service,” said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation. “Employment tax fraud impacts employees, who may see future benefits such as Social Security or Medicare reduced or eliminated because their employers failed to comply with the law.”
This case was investigated by IRS Criminal Investigation.
KCK Man Pleads Guilty to Airport Bomb HoaxRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Kan., man pleaded guilty in federal court today to conveying false information as part of a bomb hoax at Kansas City International Airport in August 2014.
David James Cain, 35, of Kansas City, Kan., pleaded guilty before U.S. Chief District Judge Greg Kays to one count of conveying false information.
At approximately 5:30 p.m. on Aug. 31, 2014, Cain parked the truck he was driving in front of Terminal B at Kansas City International Airport. The truck remained parked along the curb in front of the terminal for approximately one hour. A KCI traffic control officer had the truck ticketed, and announcements were made over the loud speaker inside the terminal that the owner of truck needed to report or the truck would be towed.
After approximately one hour, Cain approached the Southwest Airlines ticket counter and told a ticket agent that there was a bomb in the truck. Cain repeated that there was a bomb in the truck, and then twice told the ticket agent’s supervisor the same thing. The customer service supervisor contacted law enforcement. The KCPD Bomb Squad and an FBI bomb technician searched the truck, and no bomb or explosive material was located.
As a result of Cain’s false statements, KCI evacuated and closed Terminal B for approximately two hours. Shutting down the terminal caused significant flight delays throughout the rest of the day.
If the terms of today’s plea agreement are accepted by the court at the sentencing hearing, Cain will be sentenced to 18 months in federal prison, followed by three years of supervised release. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Brian Casey. It was investigated by the FBI and the Missouri State Highway Patrol.
Jury Convicts Columbus Man of Illegally Gaining CitizenshipRead the Press Release
COLUMBUS, Ohio – A United States District Court jury convicted Maqsood Haroon, 41, of Columbus, Ohio, of unlawful procurement of citizenship or naturalization.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Marlon V. Miller, Special Agent in Charge, Homeland Security Investigations, announced the verdict reached today which was returned following a trial that began on Wednesday before U.S. District Judge Gregory L. Frost.
According to court testimony, Haroon traveled from Pakistan to America on a visitor’s visa before marrying a U.S. citizen. He then completed the naturalization process to become a United States Citizen.
Throughout that process, Haroon made false statements that he had no other wife or children, when in fact, he was previously married in Pakistan and had children.
"Committing fraud to obtain citizenship or any U.S. immigration benefit represents an egregious breach of the nation's legal system and is a blatant affront to those who play by the rules," said Miller. "HSI will continue to aggressively move against those engaged in such criminal acts."
Procurement of citizenship or naturalization unlawfully is a crime punishable by up to 15 years in prison.
U.S. Attorney Stewart commended the investigation by HSI and U.S. Citizenship and Immigration Services, as well as Assistant United States Attorneys David DeVillers and Jessica Kim, who prosecuted the case.
Jacksonville, Illinois Man Sentenced for Methamphetamine OffenseRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that Kenneth A. Stephenson, age 43, of Jacksonville, Illinois was sentenced to 30 months imprisonment on January 20, 2016 for Possession with Intent to Distribute Methamphetamine.
Stephenson pled guilty to the federal charge on September 16, 2015. At his change of plea hearing, Stephenson admitted that he had possessed about 40 grams of methamphetamine in Venice, Illinois on February 16, 2015. The methamphetamine which Stephenson possessed has a street value of about $5,000.00. Stephenson admitted that he intended to sell the methamphetamine which police recovered from his car.
The investigation which resulted in Stephenson’s arrest and conviction was conducted by the Illinois State Police Metropolitan Enforcement Group of Southwestern Illinois and by the Venice, Illinois Police Department. The investigation was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations.
The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Honduran National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CARLOS BINDEL, age 30, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Bill of Information for illegal reentry of removed alien.
U.S. District Judge Eldon E. Fallon sentenced BINDEL to time served, and ordered him to serve one year of supervised release and to pay a $100 special assessment. BINDEL will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.
According to court documents, on or about October 20, 2015, BINDEL was found in the United States after having been officially deported and removed on or about February 21, 2008.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Harrisburg Man Convicted of Heroin TraffickingRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Daleo G. Powell, age 32, of Harrisburg, was convicted yesterday of possession with intent to distribute heroin after a two-day jury trial in Harrisburg before Senior U.S. District Court Judge William W. Caldwell.
According to United States Attorney Peter Smith, the jury returned with the verdict of guilty to the drug trafficking after approximately 3 hours of deliberation. The charges were the result of an initial investigation by Harrisburg Bureau of Police in December 2014 that resulted in Powell being found in possession of a loaded firearm and nine bundles of heroin on 15th Street in Harrisburg. The jury acquitted Powell of a related firearms charge. No sentencing date was set for Powell.
This case was investigated by the Federal Bureau of Investigation and the Harrisburg Bureau of Police. The case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
This case is part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is twenty years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Gwynn Oak Man Admits Conspiring to Commit Sex Trafficking of a ChildRead the Press Release
Baltimore, Maryland - Jonathan M. Went, a/k/a “Jon Maxx,” and “Max Out,” age 31, of Massachusetts and Gwynn Oak, Maryland, pleaded guilty today to conspiracy to commit sex trafficking of a child.
The guilty plea announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Chief James W. Johnson of the Baltimore County Police Department; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Baltimore County State’s Attorney Scott Shellenberger.
According to Went’s guilty plea and other court documents, on March 5, 2014, co-defendant Rayvon O. Archibald encountered a girl under the age of 14 in New York City and provided her with alcohol and drugs. The next day, Archibald transported the girl by bus from New York to White Marsh, Maryland, then by taxi to Went’s apartment in Gwynn Oak. Before they left New York, Archibald called Went to let him know that he and another woman were with the girl and would arrive in Baltimore later that day. That same day, Archibald and Went posted an ad on a commercial sex website soliciting customers for the girl which listed the number for a phone used by Went. They also instructed the girl on pricing for commercial sex acts and provided her with a document that included prices. After the ad was posted, customers responded to the ad on that phone through at least midnight.
At approximately 10:30 p.m. on March 6, 2014, the girl used Went’s phone to secretly send a message to her mother advising that she was not able to leave. After receiving the message, the girl’s mother reported her daughter missing to the police. The next morning, the girl secretly left Went’s apartment and called 911 from Went’s phone. The police found the girl at a nearby intersection. The girl gave police the address of Went’s apartment and told police that there were two men and a woman inside the location. The girl reported that she was held against her will inside Went’s apartment building. The girl identified Archibald as her captor and stated that he had assaulted her.
Police went to the apartment and arrested Went, Archibald and a woman. A search warrant was executed and police seized electronic devices, including the phone the girl used to contact her mother and the device used to place the ad on the commercial sex website. Both the girl and the woman who was arrested independently told police that one customer who came to the apartment demanded his money back because the girl was too young. The woman and the girl gave the money back to the customer, and when they told Archibald what happened, he slapped them both.
Rayvon O. Archibald, a/k/a “P Money,” “Keyvon M. Malone,” “Keyvon Smith,” and “Scoobie,” age 25, of Boston, Massachusetts, previously pleaded guilty to sex trafficking of a child and faces up to life in prison. He is awaiting sentencing
Went faces up to life in prison for conspiracy to commit sex trafficking of a child. U.S. District Judge George L. Russell III has scheduled his sentencing for April 15, 2016, at 2:00 p.m. Went and Archibald remain detained.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department, Maryland State Police and the Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers and Sandra Wilkinson, who are prosecuting the case.
Guilty Plea in Heroin and Methamphetamine SeizureRead the Press Release
EUGENE, Ore. – Miguel Angel Reyna-Ramos, 37, pled guilty today in U. S. District Court to possession with intent to distribute 50 grams or more of a mixture and substance containing methamphetamine. The defendant is facing a maximum sentence of 40 years in prison and a mandatory minimum sentence of five years.
A stipulation filed with the court states that on May 29, 2015, an Oregon State Police (OSP) trooper stopped a car driven by Reyna near milepost 35 on Interstate Highway 5. Reyna did not possess a driver’s license but produced an expired Oregon ID Card which the trooper could not authenticate. The car Reyna was driving was not registered to him and Reyna declined consent to search the car, so the OSP trooper deployed a narcotics detection dog. The dog alerted to four pounds of heroin and nineteen pounds of methamphetamine in the luggage compartment of the vehicle. Reyna was arrested and the car was impounded.
The defendant remains in federal custody pending a sentencing hearing on May 5, 2016, before U. S. District Judge Michael McShane.
This case was investigated by the Oregon State Police and the DEA. Assistant U.S. Attorney William “Bud” Fitzgerald is prosecuting the case.
Granite Bay Man Sentenced for Defrauding Investors in a “Green” Cleaning Product CompanyRead the Press Release
SACRAMENTO, Calif. — Brent Lee Newbold, 58, of Granite Bay, was sentenced today to four years and three months in prison and ordered to pay more than $2.9 million in restitution for defrauding 13 individuals and a corporate investor, United States Attorney Benjamin B. Wagner announced.
Newbold was the chief executive officer of Holy Cow, a Rocklin-based business that produced a “green” cleaning product, marketed to stores such as Wal‑Mart, ACE Hardware, and Bed, Bath & Beyond. On September 3, 2015, he pleaded guilty to a scheme to defraud investors that ran from October 2007 to January 2010.
In sentencing, U.S. District Judge Morrison C. England Jr. noted that this was a classic “Ponzi scheme” in which Newbold regularly took money from investors and “used it to pay other investors, his wife, and his mortgage.” One victim who spoke at sentencing noted that Newbold was able to gain her trust, but in the end turned out to be “nothing more than a common thief.” Another victim who spoke at sentencing told the court that the financial hardships he suffered at Newbold’s hands played a role in ending his marriage.
“Brent Newbold lied not only to gain the trust of investors; he twisted the truth to use investor money for his personal expenses and conceal his scheme,” said FBI Special Agent in Charge Monica Miller of the Federal Bureau of Investigation's Sacramento field office. “Newbold's lies caused significant personal and financial hardship for his victims. Today's sentencing demonstrates to Newbold and would-be fraudsters that such lies have consequences. By working with partners such as IRS Criminal Investigation, the FBI continues its work to protect the investing public and uphold the integrity of the U.S. financial system.”
“Mr. Newbold raised money from investors through misrepresentations and false promises,” said Michael Batdorf, Special Agent in Charge, IRS Criminal Investigation. “Then, without authorization, he diverted investor funds to himself and others for his own personal benefit. This chain of events led the company into bankruptcy and to Mr. Newbold’s sentence today. Those who line their pockets with profits from these schemes should know they will not go undetected and will be held accountable for their actions.”
According to court documents, Newbold made a variety of misrepresentations to investors about the financial health of the company, including the company’s debt levels and how invested funds would be used. Based on Newbold’s claims, a corporate investor, Spence Enterprises, invested $2 million in Holy Cow.
Between July 2008 and January 2010, Newbold solicited 13 individual investors that were not disclosed to Spence Enterprises. Newbold falsely claimed that he was authorized to act on behalf of Holy Cow; that he owned Holy Cow; that he owned the majority of Holy Cow stock; and that Holy Cow was financially sound, stable and profitable. In some cases, Newbold provided his individual investors with false Holy Cow stock certificates, false Holy Cow purchase order reports, and corporate promissory notes.
In fact, Holy Cow bore a significant amount of debt, and Newbold continued to take additional debt related to Holy Cow. Newbold used investor funds for nonbusiness purposes, diverting it to himself and his wife, paying his mortgage, and paying previous investors. By December 2009, Spence Enterprises put Holy Cow into bankruptcy as a result of the unauthorized and undisclosed debt. The loss amount was over $2.9 million.
This case was the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Michael M. Beckwith prosecuted the case.
Grand Jury Indicts Herlong Prisoner for Assaulting Another PrisonerRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Willie James McNeal, 59, a prisoner at the Federal Correctional Institution located in Herlong, California, United States Attorney Benjamin B. Wagner announced.
According to the indictment, McNeal assaulted another prisoner who suffered serious bodily injury as a result.
This case was the product of an investigation by the Federal Bureau of Investigation and Bureau of Prisons. Assistant United States Attorney Amanda Beck is prosecuting the case.
If convicted, McNeal faces a maximum statutory penalty of up to an additional 10 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 defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Four charged with lying to unlawfully procure firearmsRead the Press Release
MARTINSBURG, WEST VIRGINIA – A federal grand jury returned indictments on Wednesday charging four individuals with lying to unlawfully obtain firearms, United States Attorney William J. Ihlenfeld, II, announced.
Curtessa Monet Franklin, 21, of Canton, Massachusetts, is alleged to have traveled to West Virginia and conspired with Deven Deloreece Johnson, 21, and Ashanta Renea Marshman, 22, both of Martinsburg, to provide false information in order to unlawfully purchase firearms. On at least two occasions in December 2015, the defendants allegedly attempted to purchase firearms in Berkeley County, West Virginia by falsely claiming that Johnson and Marshman were purchasing the firearms for themselves. In fact, they were attempting to purchase the firearms for Franklin.
Franklin, Johnson, and Marshman are charged with “Conspiracy to Provide a False Statement During the Attempted Purchase of a Firearm.” Franklin is also charged with two counts of “False Statement During the Attempted Purchase of a Firearm.” Johnson and Marshman are also charged with one count of “False Statement During the Attempted Purchase of a Firearm.” The defendants face up to 10 years in prison and a fine of up to $250,000 on each count. The ATF and West Virginia State Police investigated.In a separate matter, Christopher Lee Linn, 29, of Maryland, was indicted on one count of “False Statement in Acquisition of a Firearm,” one count of “Aggravated Identity Theft,” and two counts of “Felon in Possession of a Firearm.” Linn is alleged to have stolen the identity of another individual and used that information to unlawfully pawn and then re-acquire a firearm in Berkeley County. Linn was previously convicted of a felony in Allegany County, Maryland and therefore is prohibited from possessing firearms.
Linn faces up to 10 years in prison and a fine of up to $250,000 for each of the three firearms charges and an additional two years in prison for the aggravated identify theft charge. The matter was investigated by the ATF, the West Virginia State Police, and the Allegany County, Maryland Combined County Criminal Investigation Unit.
“The ATF Washington Field Division is dedicated to making the community safer by preventing criminals from illegally obtaining firearms,” said ATF Special Agent in Charge Michael Boxler. “These investigations, in conjunction with the West Virginia State Police, show our commitment to prosecuting those who seek to purchase firearms unlawfully or on behalf of prohibited persons in West Virginia."
U.S. Attorney Ihlenfeld met this week with prosecutors from Berkeley, Jefferson and Morgan County to encourage the continued collaboration between state and federal authorities in the investigation of firearms-related offenses.
Assistant U.S. Attorney Paul Camilletti is prosecuting Linn and Assistant U.S. Attorney Shawn Adkins is prosecuting Franklin, Johnson and Marshman on behalf of the government.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Former prison employee sentenced for witness tamperingRead the Press Release
BECKLEY, W.Va. – Physician’s assistant and former prison employee Scotty Rose was sentenced today to two years in federal prison for witness tampering, announced Acting United States Attorney Carol Casto. A federal jury convicted Rose after a two day jury trial in May of 2015.
Rose, 42, of Beaver, worked in the Federal Correctional Institution in Beckley as a physician’s assistant. On February 6, 2013, Rose told a prisoner that another inmate was wearing a recording device and working for the FBI as an informant. The informant identified by Rose was, in fact, working with the FBI on a large scale methamphetamine trafficking investigation and wearing a recording device as part of that investigation. After Rose revealed the identity of the FBI informant, this news quickly spread throughout the correctional facility. As a result, the FBI informant was placed at great risk of retaliation by other prisoners. The informant was subsequently moved from the prison for his own safety, and the methamphetamine trafficking investigation was abruptly terminated. The FBI investigated the leak of the information and determined that Scotty Rose was the source of the leak.
The investigation was conducted by the FBI, assisted by investigators from the Federal Bureau of Prisons. Assistant United States Attorneys Erik S. Goes and Timothy D. Boggess were responsible for the prosecution. United States District Judge Irene C. Berger sentenced the defendant and presided over the trial.
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Former Waipahu Man Sentenced to 30 Years in Prison for Producing Child PornographyRead the Press Release
HONOLULU -- Derek West, 33, formerly of Waipahu, Hawaii, was sentenced yesterday to 30 years in prison for producing child pornography. West, who had previously pled guilty to the offense, must also serve a lifetime term of supervised release following his jail term.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to a December 16, 2014 complaint, the case began with a report to the Honolulu Police Department (HPD) that child pornography had been found on West’s cellular telephone. HPD detectives obtained a search warrant for the telephone, and found approximately 482 images that depicted children engaged in sexually explicit conduct. HPD detectives then contacted the Federal Bureau of Investigation (FBI). FBI and Homeland Security Investigations (HSI) agents later determined that 52 of the images were of a two year- old girl, some of which showed her engaged in sexual acts with West. During court proceedings, West admitted taking those pictures and sharing them over the internet.
In imposing the maximum terms of imprisonment and supervised release, United States District Judge Derrick K. Watson noted that the damage done to the two year-old victim was "immeasurable and enduring." West has been in custody since his arrest on December 16, 2014.
The case was investigated by the FBI, HSI, and HPD. The prosecution was handled by Assistant U.S. Attorney Larry Tong.
Former Tribal Officer Sentenced to Federal Prison for Misdemeanor AssaultRead the Press Release
COEUR D'ALENE - Ramon L. Garcia, 31, of Plummer, Idaho, was sentenced yesterday in United States District Court to four months in prison for assault, U.S. Attorney Wendy J. Olson announced. Garcia pleaded guilty to the charge on October 20, 2015.
According to the plea agreement, Garcia admitted that he was heavily intoxicated when he pointed a firearm at a man at a party. Garcia was a Coeur d’Alene Tribal Police Officer and off duty at the time of the June 20, 2014 incident. The Coeur d’Alene Tribe released Garcia from employment after the incident. At sentencing Garcia took responsibility for his actions and told the court he would no longer use alcohol. Judge Dale noted that the maximum punishment for a misdemeanor assault was six months in custody and that Garcia had no prior criminal history. In sentencing Garcia to the Bureau of Prisons, Judge Dale told Garcia he had betrayed the public trust given to him. In addition to the prison sentence Garcia was ordered to surrender his Idaho POST accreditation and certification.
The case was investigated by Coeur d’Alene Tribal Police and Federal Bureau of Investigation (FBI).
Former Sailor Sentenced to Prison for Smuggling Heroin Aboard USS Bush That Led to OverdoseRead the Press Release
NORFOLK, Va. – Donald G. McManus, 22, of Wallingford, Connecticut, was sentenced today to 18 months in prison for distribution of heroin aboard the USS George H.W. Bush aircraft carrier that led to the overdose of an active duty sailor. McManus was also sentenced to three years of supervised release.
McManus pleaded guilty on Oct. 14, 2015. According to court documents, Donald McManus was an active duty sailor in the United States Navy assigned to the USS George H.W. Bush aircraft carrier in February 2015. While in a restricted status on-board the USS Bush, Donald McManus had his wife smuggle heroin and syringes aboard the aircraft carrier. The McManus couple sold heroin to another sailor who was later found unresponsive on the floor in the ship’s berthing area. The USS Bush’s medical personnel immediately responded and worked with emergency medical technicians in an attempt to save the sailor’s life. The overdose victim was without a detectable pulse until medical personnel were able to resuscitate the sailor.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and Timothy R. Quick, Special Agent in Charge of NCIS’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
This case was investigated by NCIS’s Norfolk Field Office, and was prosecuted by Special Assistant U.S. Attorneys Alyssa Nichol and John F. Butler, and Assistant U.S. Attorney Andrew C. Bosse.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-109.
Former Pratt Mayor sentenced for selling oxycodoneRead the Press Release
CHARLESTON, W.Va. – The former mayor of Pratt was sentenced today to three years of probation for a federal drug crime, announced Acting United States Attorney Carol Casto. Gary Fields, 68, previously pleaded guilty to distribution of oxycodone in September of 2015.
Fields admitted that on April 23, 2015, he sold six 15 mg oxycodone pills to a confidential informant working with law enforcement. The drug deal took place at the defendant’s residence in Pratt.
The investigation was conducted by the Kanawha County Sheriff’s Department. Assistant United States Attorney Haley Bunn handled the prosecution. The sentence was imposed by United States District Judge Thomas E. Johnston.
This prosecution is part of an ongoing effort by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Former Pilot for Alaska Airlines Arrested on Federal Charges of Flying Passenger Aircraft while under the Influence of AlcoholRead the Press Release
LOS ANGELES – Federal authorities have arrested a former captain with Alaska Airlines on federal charges of piloting a plane with passengers while under the influence of alcohol.
David Hans Arntson, 60, a resident of Newport Beach, was arrested yesterday morning and was arraigned on the felony charge yesterday afternoon in federal court in Los Angeles.
Arntson was released on a $25,000 bond and was ordered to appear for an arraignment on February 10.
According to a criminal complaint filed Tuesday in United States District Court, Arntson was the pilot of two Alaska Airlines flights on June 20, 2014. The first flight was from San Diego International Airport to Portland, Oregon. He then flew a plane from Portland, Oregon, to John Wayne Airport in Orange County.
After landing at John Wayne Airport, Arntson was selected for random drug and alcohol testing by Alaska Airlines. A technician for Alaska Airlines performed two tests on Arntson and received results that the pilot had a blood alcohol concentration of 0.134 percent and 0.142 percent. After the technician informed Alaska Airlines of the test results, it removed Arntson from all safety-sensitive duties.
According to federal law, a person operating a “common carrier,” such as a commercial airliner, is presumed to be under the influence of alcohol when his or her blood alcohol content is 0.10 percent or higher.
Arntson’s co-pilot on the two flights on June 20 remembered seeing the drug tester when the plane landed at John Wayne Airport and recalled Arntson say “I bet it’s for me,” according to the complaint.
Following the June 20, 2014, incident, Arntson retired from Alaska Airlines.
“Those in command of passenger jets, or any other form of public transportation, have an obligation to serve the public in the safest and most responsible way possible,” said United States Attorney Eileen M. Decker. “We cannot and will not tolerate those who violate the trust of their passengers by endangering lives.”
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The charge of operating a common carrier while under the influence of alcohol or drugs carries a statutory maximum penalty of 15 years in federal prison.
The investigation into Arntson was conducted by the United States Department of Transportation, Office of Inspector General.
Former Officer and Co-Defendant Sentenced in Conspiracy to Traffic CocaineRead the Press Release
McALLEN, Texas – A former Rio Grande City Police investigator and another man have been ordered to federal prison following their conviction of conspiracy to possess with intent to distribute cocaine, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Shane M. Folden of Homeland Security Investigations in San Antonio. Noel Pena, 29, of Rio Grande City was assigned to the Starr County High Intensity Drug Trafficking Aare Task Force. Also sentenced today was Hector Salinas-Hinojosa, 21, of Roma.
At the hearing, Chief Judge Ricardo Hinojosa ordered Pena to serve a total of 84 months in federal prison, while Salinas will serve a 60-month term. The sentences will be followed by five years of supervised release. In handing down the sentence, the court took into consideration not only their illicit activity but also the fact that each, independent of each other, had cooperated with authorities after their respective arrest.
“The court's sentence appropriately punished the two defendants in this case for their involvement in a major drug trafficking organization that had a negative impact on the Rio Grande Valley and other surrounding communities,” said Folden. “HSI will continue to utilize its broad authorities to dismantle criminal organizations who blatantly ignore the laws of this nation.”
Both men were arrested in mid-April after they conspired to provide a fake police report to an undercover officer acting as a cocaine trafficker. Per the criminal complaint issued at the time, on April 9, 2015, Salinas and Pena met with the undercover officer and agreed to provide a fake police report to make it appear that 10 kilograms of cocaine has been seized by law enforcement in exchange for $10,000. At the time of the meeting, the undercover officer provided $5,000 as a down payment for the report.
As part of the undercover operation, on April 11, 2015, two kilograms of cocaine were left a stash house location in Garceno. After being “tipped” off the location, Pena proceeded to the residence, “found” the cocaine and then obtained a state search warrant to seize it.
As part of the agreement, the undercover officer had provided two of the eight kilograms to establish an actual seizure. A week later, Salinas provide the report to officer and was paid the remaining $5,000.
At the time of his plea, Pena agreed that after Salinas provided the fake report, Pena met with him in the early evening hours at a cemetery in Rio Grande City. Salinas then paid Pena $1,500 for his services. Salinas had been able to provide the fake report based on the details in the search warrant provided by Pena earlier.
Both have been in custody since the day of their respective arrests where they will remain 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, Drug Enforcement Administrations, Texas Department of Public Safety and the FBI with assistance from the Texas Rangers. Assistant U.S. Attorneys Juan F. Alanis and Ted Imperato are prosecuting the case.
Former NYPD Detective Sentenced to 72 MonthsRead the Press Release
Earlier today, Rafael Astacio, a former detective with the New York City Police Department, was sentenced to 72 months of imprisonment by United States District Judge Joseph F. Bianco, to be followed by three years of supervised release. As part of the sentence, the court entered a $200,000 forfeiture money judgment and restitution in the amount of $1.8 million. Previously, Astacio pleaded guilty to conspiracy to commit interstate transportation of stolen property and filing a fraudulent tax return.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York.
According to court filings and statements at today’s court proceeding, between 2010 and 2012, Astacio was a member of a burglary crew that committed approximately three dozen commercial burglaries and ten residential burglaries in the Eastern District of New York stealing approximately $8,000,000 in cash and property. Astacio personally participated in six of the commercial burglaries and five residential burglaries stealing more than $5.3 million in cash and property. The crew used traditional burglary tools, such as blow torches, crowbars, wire cutters, and sledge hammers, as well as cell phone jammers, police scanners, and an automobile tracking device to commit these crimes. Astacio also used his position with the NYPD to locate potential burglary targets’ home addresses.
“For years, Astacio and his crew invaded Long Island homes and businesses and stole money and property. By victimizing the very same people he took an oath to serve and protect, the defendant compounded his criminal acts,” stated United States Attorney Capers. Mr. Capers extended his grateful appreciation to the Nassau County District Attorney’s Office; the Federal Bureau of Investigation, New York Field Office; the Nassau County Police Department; the Internal Revenue Service-Criminal Investigation, New York; and New York City Police Department for their assistance in this case.
The government’s case is being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorney Christopher C. Caffarone and Special Assistant United States Attorney Rick Whelan are in charge of the prosecution.
The Defendant:
RAFAEL ASTACIO
Age: 43
Copiague, New YorkE.D.N.Y. Docket No. 13-CR-640 (JFB)
Former NBA Player and CEO of the George Group Sentenced to Nine Years in Prison for Role in a $2 Million Ponzi SchemeRead the Press Release
C. Tate George, former NBA basketball player and the CEO of purported real estate development firm The George Group, was sentenced today to 108 months in prison for his role in orchestrating a $2 million investment fraud scheme, announced U.S. Attorney Paul J. Fishman for the District of New Jersey.
After a three-week trial before U.S. District Judge Mary L. Cooper September 2013, a jury deliberated for four hours before convicting George, 47, of Newark, New Jersey, of all of four counts of the indictment. Judge Cooper imposed the sentence today in Trenton federal court.
“Those who perpetrate Ponzi schemes shamelessly trade on relationships with those who trust them,” U.S. Attorney Fishman said. “In this case, George relied on his sports stardom to attract unwitting investors. His crimes justified today’s lengthy sentence.”
“By shamelessly cashing in on his celebrity C. Tate George stole $2 million from investors who trusted him as a former NBA athlete,” said Special Agent in Charge Richard M. Frankel for the FBI’s Newark Division. “George used the money to pay other investors in the Ponzi-style scheme and lined his pockets with the rest, funding extensive renovations on his home, paying for his daughter’s sixteenth birthday party and producing a reality video about himself.”
According to documents filed in this case and evidence presented at trial:
George, a former player for the New Jersey Nets and Milwaukee Bucks professional basketball teams, held himself out as the CEO of The George Group and claimed to have more than $500 million in assets under management. He pitched prospective investors, including several former professional athletes, to invest with the firm and told them their money would be used to fund The George Group’s purchase and development of real estate development projects, including projects in Connecticut and New Jersey. George represented to some prospective investors that their funds would be held in an attorney trust account and personally guaranteed the return of their investments, with interest.
Based on George’s representations, investors invested more than $2 million in The George Group between 2005 and 2011, which he deposited in both the firm’s and his personal bank account. Instead of using investments to fund real estate development projects as promised, George used the money from new investors to pay existing investors in Ponzi-scheme fashion, as well as paying for his daughter’s sixteenth birthday party, extensive renovations on his New Jersey home (that has since been foreclosed), the mortgage on a New Jersey home, the mortgage on a Florida home, taxes to the Internal Revenue Service (IRS) and traffic tickets. The defendant gave money to family members and friends. He also spent $2,905 for a reality video about himself – a “sizzle reel” for “The Tate Show” – which was made available on YouTube. The George Group had virtually no income-generating operations.
During the sentencing proceeding, prosecutors asserted George had presented the court with fraudulent character witness letters. The defendant claimed the letters, which contained suspicious similarities, were sent to the court in support of a more lenient sentence. Some of the individuals who purportedly sent the letters signed declarations stating that they did not write the letters nor did they authorize the letters to be sent to the court on their behalf.
In addition to prison time, Judge Cooper also sentenced George to three years of supervised release, ordered him to $2.55 million in restitution and entered a forfeiture money judgment of $2.55 million.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; postal inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Maria L. Kelokates; and criminal investigators with the U.S. Attorney’s Office, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Joseph B. Shumofsky and Zach Intrater of the U.S. Attorney’s Office Criminal Division in Newark.
This case is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Former NBA Player and CEO of the George Group Sentenced to Nine Years in Prison for Role in A $2 Million Ponzi SchemeRead the Press Release
TRENTON, N.J. – C. Tate George, former NBA basketball player and the CEO of purported real estate development firm The George Group, was sentenced today to 108 months in prison for his role in orchestrating a $2 million investment fraud scheme, U.S. Attorney Paul J. Fishman announced.
After a three-week trial before U.S. District Judge Mary L. Cooper September 2013, a jury deliberated for four hours before convicting George, 47, of Newark, New Jersey, of all of four counts of the indictment. Judge Cooper imposed the sentence today in Trenton federal court.
“Those who perpetrate Ponzi schemes shamelessly trade on relationships with those who trust them,” U.S. Attorney Fishman said. “In this case, George relied on his sports stardom to attract unwitting investors. His crimes justified today’s lengthy sentence.”
“By shamelessly cashing in on his celebrity C. Tate George stole $2 million from investors who trusted him as a former NBA athlete,” FBI-Newark Special Agent in Charge Richard M. Frankel said. “George used the money to pay other investors in the Ponzi-style scheme and lined his pockets with the rest, funding extensive renovations on his home, paying for his daughter’s sixteenth birthday party and producing a reality video about himself.”
According to documents filed in this case and evidence presented at trial:
George, a former player for the New Jersey Nets and Milwaukee Bucks professional basketball teams, held himself out as the CEO of The George Group and claimed to have more than $500 million in assets under management. He pitched prospective investors, including several former professional athletes, to invest with the firm and told them their money would be used to fund The George Group’s purchase and development of real estate development projects, including projects in Connecticut and New Jersey. George represented to some prospective investors that their funds would be held in an attorney trust account and personally guaranteed the return of their investments, with interest.
Based on George’s representations, investors invested more than $2 million in The George Group between 2005 and 2011, which he deposited in both the firm’s and his personal bank account. Instead of using investments to fund real estate development projects as promised, George used the money from new investors to pay existing investors in Ponzi-scheme fashion, as well as paying for his daughter’s sixteenth birthday party, extensive renovations on his New Jersey home (that has since been foreclosed), the mortgage on a New Jersey home, the mortgage on a Florida home, taxes to the IRS, and traffic tickets. The defendant gave money to family members and friends. He also spent $2,905 for a reality video about himself – a “sizzle reel” for “The Tate Show” – which was made available on YouTube. The George Group had virtually no income-generating operations.
During the sentencing proceeding, prosecutors asserted George had presented the court with fraudulent character witness letters. The defendant claimed the letters, which contained suspicious similarities, were sent to the court in support of a more lenient sentence. Some of the individuals who purportedly sent the letters signed declarations stating that they did not write the letters nor did they authorize the letters to be sent to the court on their behalf.
In addition to prison time, Judge Cooper also sentenced George to three years of supervised release, ordered him to $2.55 million in restitution and entered a forfeiture money judgment of $2.55 million.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; postal inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Maria L. Kelokates; and criminal investigators with the U.S. Attorney’s Office, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Joseph B. Shumofsky and Zach Intrater of the U.S. Attorney’s Office Criminal Division in Newark.
This case is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Defense counsel: Pro se; John A. Azzarello Esq., Morristown, standby counsel
Fitchburg Woman Charged with Embezzling over $1.3 Million from EmployerRead the Press Release
BOSTON – An office manager for a Woburn life science technology firm was charged today with embezzling over $1.3 million dollars from her employer.
Dawnmarie Prince, 47, was indicted on eight counts of bank fraud and one count of aggravated identity theft.
According to the indictment, Prince worked as an office manager at a Woburn-based life science technology firm where she was responsible for handling the firm’s accounts payable. Since at least 2005 through May 2015, Prince allegedly used her position as office manager to steal hundreds of the company’s checks, which she made payable to herself or to her son. Prince then allegedly forged her boss’s signature on the stolen checks, and deposited them into her personal bank accounts.
To conceal her criminal conduct and avoid detection, it is alleged that Prince removed copies of the negotiated checks when sent back by the bank, and she falsified entries into the bookkeeping software program to make it appear as if the stolen checks had been used to pay legitimate vendors. In total, Prince is alleged to have embezzled over $1.3 million which she spent on personal expenses.
In 2001, Prince was convicted of mail fraud for defrauding another previous employer and sentenced to three years of probation and ordered to pay restitution. Prince was employed as a claims analyst for a subsidiary company of a Boston-based health plan. Shortly after starting that job, Prince created and submitted numerous false medical provider claims to the health plan. As a result, Prince received almost $50,000 in claims checks, which she endorsed and deposited into her personal bank account.
The charge of bank fraud provides for a sentence of no greater than 30 years in prison, three years of supervised release, and a fine of $1million on each count. The charge of aggravated identity theft provides for a mandatory consecutive term of two years in prison, one year of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Jordi de Llano of Ortiz’s Major Crimes Unit.
Executive Assistant Sentenced for Stealing over $150,000 from EmployerRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Diane Jensen, age 54, of Frederick, Maryland today to 15 months in prison followed by three years of supervised release for wire fraud in connection with a scheme to embezzle at least $151,026.36 from her employer. Judge Messitte also entered an order that Jensen forfeit and pay restitution of $151,026.36.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.
According to her plea agreement, from 2008 to 2012, Jensen was the executive assistant to the chief executive officer (CEO) of a company headquartered in Montgomery County, Maryland. During that time, Jensen, without authorization, would use an American Express card linked to the CEO’s American Express account to purchase expensive items and Green Dot Moneypaks for her personal use. She then obtained reimbursement for those personal purchases from the company, claiming they were legitimate purchases for the CEO or the CEO’s family members. Jensen purported to authorize the expenditures using the CEO’s signature stamp. Jensen also stole tens of thousands of dollars from one of the CEO’s bank accounts to which she had access.
Jensen admitted that the total amount of loss resulting from her conduct was at least $151,026.36.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorneys Thomas P. Windom and David I. Salem, who prosecuted the case.
Eddy County Resident Sentenced to 168 Months for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Rodrigo Ivan Cazares, 34, a legal permanent resident from Zamora, Michoacan, Mexico who resides in Artesia, N.M., was sentenced today in federal court in Las Cruces, N.M., for a narcotics trafficking conviction involving more than 4.5 kilograms (ten pounds) of pure methamphetamine. Cazares was sentenced to 168 months in prison, and will be deported after he completes his term of incarceration. Cazares was also ordered to forfeit the $48,389.00 seized from him during the investigation leading to his conviction.
The sentence was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division, and Commander James McCormick of the HIDTA Pecos Valley Drug Task Force.
U.S. Attorney Damon P. Martinez said that Cazares was 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. U.S. Attorney Martinez said that Cazares was prosecuted under the initiative even though he has no prior criminal convictions because the significant quantities and the purity of the methamphetamine trafficked by Cazares demonstrated that he posed a serious danger to residents of Eddy County.
“Taking drug dealers like Mr. Cazares off the streets is DEA’s top priority, and our partnership with the Pecos Valley Drug Task Force demonstrates our ongoing commitment to investigating and prosecuting those who sell these dangerous and addictive drugs in our local communities,” said DEA Special Agent in Charge Will R. Glaspy.
“This case is a perfect example of the mission and goals of the HIDTA program coming to fruition; local, state and federal agencies working together to remove the ‘worst of the worst’ criminals like Cazares from our community for as long as possible,” said Commander James McCormick of the HIDTA Pecos Valley Drug Task Force. “The incarceration of Cazares and others involved in his criminal enterprise will have a direct impact on the residents of Eddy County, in a positive light. Basically this is a ‘win-win’ for not only the residents of Eddy County but for all New Mexicans.”
Cazares was arrested in Oct. 2013, on a criminal complaint charging him with distribution of approximately 2.8 kilograms of methamphetamine to an undercover law enforcement officer on Oct. 15, 2013, in Eddy County, N.M. He subsequently was charged in a five-count indictment with distributing large quantities of methamphetamine on four occasions between Aug. 2013 and Oct. 2013, and possessing methamphetamine with intent to distribute on Oct. 15, 2013. The indictment alleged that Cazares committed the five methamphetamine trafficking offenses in Eddy County.
On May 28, 2014, Cazares pled guilty to all five-counts of the indictment and admitted that he committed the following crimes:
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Distribution of an ounce of methamphetamine to a confidential source working with law enforcement that on Aug. 15, 2013;
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Distribution of eight ounces of methamphetamine to the confidential source on Sept. 9, 2013;
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Distribution of five pounds of methamphetamine to the confidential source and an undercover law enforcement agent on Oct. 8, 2013;
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Distribution of five pounds of methamphetamine to the undercover law enforcement agent on Oct. 15, 2013; and
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Possession of two ounces of methamphetamine and an ounce of cocaine on Oct. 15, 2013.
In entering his guilty plea, Cazares admitted that law enforcement officers seized $48,389.00 in cash from Cazares and his residence when he was arrested on Oct. 15, 2013. Cazares admitted that the cash and two vehicles seized by law enforcement agents on Oct. 15, 2013 were proceeds of his drug trafficking activities.
This case was investigated by the Las Cruces office of the DEA and the Pecos Valley Drug Task Force. Assistant U.S. Attorney Renee L. Camacho of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
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Danbury Flooring Company Owner who Filed False Tax Returns is SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SCOTT BENINCASA, 32, of Danbury, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to three years of probation, the first six months of which BENINCASA must serve in home confinement, for filing false tax turns. Judge Chatigny also ordered BENINCASA to perform 120 hours of community service, pay a $15,000 fine and make full restitution to the IRS.
According to court documents and statements made in court, SCOTT BENINCASA and his brother, David Benincasa, were 50 percent owners in Goodhouse Flooring, LLC, a business that provides floor installation and flooring products to retail and commercial customers. David Benincasa assisted SCOTT BENINCASA with the daily operations of the business, but had primary responsibility for the financial aspects of the business. For the 2008 through 2010 tax years, the brothers intentionally understated gross receipts from their business on the Schedule C attached to their respective federal personal income tax filings. During those years, the brothers failed to accurately report the expenses incurred in running their business, as they paid certain laborers who worked for their business in cash and then failed to reflect the cash payments on their filed returns.
In addition, during an IRS civil audit, SCOTT BENINCASA submitted a false real estate log and business schedule in an effort to improperly justify previously taken deductions on his 2009 federal personal income tax return.
BENINCASA was ordered to pay $47,076 in back taxes, plus applicable interest and penalties.
On October 28, 2015, SCOTT BENINCASA pleaded guilty to one count of filing a false tax return, and David Benincasa, 35, of Danbury, pleaded guilty to one count of tax evasion. David Benincasa faces a maximum term of imprisonment of five years when he is sentenced on January 25. He also has agreed to pay $238,274 in back taxes, plus applicable interest and penalties.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division and is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Cuban National Sent to Prison for Role in $200k Credit Card Fraud SchemeRead the Press Release
McALLEN, Texas – A Cuban citizen who was residing in McAllen has been ordered to federal prison for trafficking in access devices, announced U.S. Attorney Kenneth Magidson. Alexis Acosta-Guzman, 40, pleaded guilty Nov. 3, 2015.
Today, U.S. District Judge Micaela Alvarez, who accepted the guilty plea, handed Acosta-Guzman a 100-month sentence. He was further ordered to pay restitution in the amount of $211,311.15 to five financial institutions that absorbed the loss of more than 1,000 victims. In handing down the sentence, Judge Alvarez noted that the defendant had prior similar criminal conduct. Not a U.S. citizen, he is expected to face deportation proceedings following his release from prison.
From March 2013 through August 2015, Acosta-Guzman wired thousands of dollars in funds to individuals in China, Russia and the Ukraine. In return, he received more than 1,000 credit card numbers and other personal information that had been stolen from individuals in the United States. Acosta-Guzman transferred that information to others using various email accounts.
He and co-conspirators would then use special devices and the stolen information to create physical credit cards. They used the fraudulent credit cards to make purchases throughout Texas at different retailers and convenience stores.
As a result of the scheme, hundreds of people lost more than $211,000 for the fraudulent charges.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of an investigation conducted by the Secret Service, FBI and the McAllen Police Department. Assistant U.S. Attorneys David A. Lindenmuth and Joseph T. Leonard prosecuted the case.
Corpus Christi Man Charged for Transferring Obscene Material to a MinorRead the Press Release
CORPUS CHRISTI, Texas – Brandon Guthrie, 32, of Corpus Christi, has been charged in a criminal complaint for transferring obscene material to a minor, announced U.S. Attorney Kenneth Magidson.
According to the federal criminal complaint filed this afternoon, Guthrie met a 14-year-old female at a movie theater in Corpus Christi and allegedly began communicating with the minor via a messaging application. The minor’s parents discovered the communications and contacted the Corpus Christi Police Department. An undercover officer assumed control of the minor’s messaging account and continued to communicate with Guthrie. Guthrie allegedly sent the undercover officer several videos of himself engaging in sexual explicit conduct.
Guthrie is in custody and expected to make his initial appearance before U.S. Magistrate Judge Jason Libby tomorrow at 2:00 p.m.
If convicted, he faces up to 10 years in federal prison as well as a possible $250,000 fine.
The charges are the result of the investigative efforts of the FBI and Corpus Christi Police Department—Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Columbia Man Pleads Guilty to Synthetic Heroin Conspiracy that Resulted in DeathRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man pleaded guilty in federal court today to his role in a conspiracy to distribute synthetic heroin, which resulted in the death of an 18-year-old man.
Nick Connor Burris, 21, of Columbia, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to the charge contained in an Aug. 25, 2015, federal indictment.
By pleading guilty today, Burris admitted that he participated in a conspiracy to distribute synthetic heroin (acetyl fentanyl) in August 2015. Co-defendant Marquette Deandre Murrell, 25, of Columbia, pleaded guilty on Dec. 10, 2015, to the same charge.
Columbia Police Department officers were dispatched to an apartment in the 2400 block of West Broadway in reference to a drug overdose at approximately 12:33 a.m. on Aug. 9, 2015. Upon arrival, officers located an 18-year-old deceased white male. Burris admitted that he supplied the drug which the deceased man had taken immediately prior to overdosing.
Officers located a bag containing the synthetic heroin on Burris. Burris admitted to purchasing the heroin the deceased man took from Murrell, and bringing it to the apartment where the overdose occurred. Burris also commented that Murrell told him the heroin was 95 percent pure, and that efforts should be made to dilute the purity by adding a cutting agent. Burris mixed the synthetic heroin with Benadryl before distributing it to the victim. Burris stated that he was aware of another person who overdosed on the product supplied by Murrell, but lived.
Another person at the apartment told officers that he attempted to revive the deceased male by placing him in cold water and then attempting to have him vomit. He estimated that 10 minutes passed before emergency responders arrived at his apartment.
At approximately 7 p.m. the same day, Murrell was located near downtown Columbia and taken into custody. Murrell was in possession of a bag containing numerous suspected Alprazolam pills and approximately four grams of synthetic heroin. Murrell admitted that he supplied the drug that Burris mixed with Benadryl and distributed to the deceased male.
Under federal statutes, Burris and Murrell are each subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $1 million. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Columbia, Mo., Police Department and the Drug Enforcement Administration.
Charleston man pleads guilty to Federal gun crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man pleaded guilty today to being a felon in possession of a firearm, announced Acting United States Attorney Carol Casto. Derrick Lamb, 24, entered his guilty plea in federal court to the gun crime.
Lamb admitted that on April 13, 2015, he was in possession of a .38 caliber revolver. Lamb is prohibited from possessing any firearm because of a 2012 felony conviction in Kanawha County Circuit Court of possession of a controlled substance with intent to deliver. Lamb faces up to 10 years in federal prison and a $250,000 fine when he is sentenced on April 21, 2016.
The investigation was conducted by the Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney John J. Frail is in charge of the prosecution. The hearing was held before United States District Judge John T. Copenhaver, Jr.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Captured Fugitive Pleads Guilty to Meth ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Bourbon, Mo., man who was a federal fugitive for more than a year, pleaded guilty in federal court today to his role in a conspiracy to distribute methamphetamine.
Lucas John Haslag, 31, of Bourbon, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to participating in a conspiracy to distribute methamphetamine between June 19, 2014, and Nov. 21, 2015.
By pleading guilty today, Haslag admitted that he is responsible for the distribution of approximately five pounds (2.265 kilograms) of methamphetamine.
Haslag was indicted by a federal grand jury in Jefferson City in June 2014 after law enforcement officers conducted a car stop and found a pound of methamphetamine, a Derringer pistol and a drug ledger in the vehicle he was driving in Freeburg, Mo. He was a fugitive from justice, but in October 2015 federal agents obtained information about Haslag’s actions and whereabouts. This investigation led to the execution of a search warrant at the Bourbon residence shared by Haslag on Nov. 9, 2015.
Law enforcement officers discovered two pounds of methamphetamine, several firearms and $22,661 in Haslag’s residence. Haslag was arrested on Nov. 23, 2015, and has remained in federal custody without bond.
Under federal statutes, Haslag is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 40 years in federal prison without parole, plus a fine up to $5 million. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Drug Enforcement Administration, the Jefferson City, Mo., Police Department, the Missouri State Highway Patrol, the U.S. Marshal’s Service, MUSTANG (the Mid-Missouri Unified Strike Team And Narcotics Group) and the Lake Area Narcotics Enforcement Group (LANEG).
Byron Center Man, David W. McQueen's , Conviction and 30-Year Sentence for Ponzi Scheme Upheld on AppealRead the Press Release
GRAND RAPIDS, MICHIGAN — The U.S. Attorney’s Office for the Western District of Michigan announced today that the Sixth Circuit Court of Appeals has upheld the conviction and 30-year sentence of David W. McQueen. On December 3, 2014, McQueen, age 44, of Byron Center, Michigan, was sentenced to 30 years in prison and ordered to pay $32,036,997.63 in restitution to his victims and $926,787.00 in restitution to the IRS. McQueen was convicted on May 9, 2014, after a six-week jury trial of six counts of mail fraud, six counts of money laundering, and three tax counts stemming from a massive Ponzi scheme that spanned three years. The scheme affected more than 800 families, and preyed upon unsophisticated, often elderly investors. The Sixth Circuit’s opinion can be found online at http://www.ca6.uscourts.gov/opinions.pdf/16a0033n-06.pdf.
The Court of Appeals unanimously rejected McQueen’s claims that the government lacked sufficient evidence of his guilt, that he should receive a new trial, and that his sentence was unconstitutional and unreasonable. The Court agreed with the U.S. Attorney’s Office’s arguments on appeal that there was ample evidence of guilt and that McQueen received a fair trial and a fair sentence.
The evidence at trial showed that, as with many investment frauds, McQueen likely did not set out to create a criminal enterprise that would result in a financial tragedy for his investors. In 2006, McQueen, who made an adequate living in sales, used borrowed funds to invest in a company called Multiple Return Transactions (“MRT”). MRT was owned and operated by Jim Clements. Clements promised returns of 10% per month or higher to McQueen. After a few months of making such returns, McQueen decided to capitalize on his apparent investment success and invited others to invest through him. McQueen created a company called Accelerated Income Group (“AIG”), through which he promised returns as high as 5-6% to investors. In addition, McQueen recruited insurance agents to sell his investments to their clients. For a short time, AIG was very successful (at least on paper). McQueen used MRT’s promised returns of 10%, to make AIG’s promised returns of 5%. McQueen could meet his 5% obligations to his investors and then keep 5% for himself.
In mid-2007, MRT stopped making payments and meeting redemption requests. MRT was merely a Ponzi scheme, and their money was gone and would never be recovered. Instead of notifying AIG investors that MRT had failed, however, McQueen continued to tell investors that their money was safe and growing. Without MRT making its monthly payments, McQueen and AIG could not meet their 5% monthly obligations to investors based on investment earnings. Instead, McQueen used the only funds he had available to make promised interest payments – money from new investors.
Big Brothers Big Sisters of America to Pay $1.6 Million to Resolve Allegations of False Claims for Federal GrantsRead the Press Release
Big Brothers Big Sisters of America Corporation (Big Brothers) has agreed to pay the United States $1.6 million to resolve allegations of false claims for funds under Department of Justice grants awarded to help children at risk, the Justice Department announced today. Big Brothers is a not-for-profit organization that provides mentoring services to boys and girls throughout the United States. The organization, originally based in Philadelphia, Pennsylvania, is now headquartered in Tampa, Florida.
“Organizations such as Big Brothers do great work, but in carrying out their mission they also have an obligation to the populations they serve and to the taxpayer to ensure that government grant funds are used responsibly according to the rules,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The settlement announced today exemplifies the Department’s commitment to hold those who mishandle such funds accountable.”
“The U.S. Attorney’s office is committed to protecting federal grants and ensuring that the funds are appropriately spent,” said U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania. “Federal grant recipients must administer these grants with transparency and diligence, and the compliance measures implemented pursuant to this settlement agreement will help to achieve those goals.”
Big Brothers is a national organization that acts through approximately 300 independent affiliate agencies across the United States. Since 2004, Big Brothers has received millions of dollars in grants from the Justice Department to support initiatives on behalf of children at risk. As a condition of those grants, Big Brothers was required to maintain sound accounting and financial management systems in accordance with federal regulations and guidelines designed to ensure that grant funds would be properly accounted for and used only for appropriate purposes.
The United States alleges that Big Brothers violated these regulations and guidelines with respect to three grants awarded by the Justice Department from 2009 to 2011, by commingling the grant funds with general operating funds, failing to segregate expenditures to ensure that the funds were used as intended and failing to maintain internal financial controls to safeguard the proper use of those funds. These allegations were the focus of a 2013 audit of the three grants performed by the Department of Justice Office of the Inspector General. Since 2013, Big Brothers has replaced its management team and begun implementing policies governing the use of federal grant funds.
“We appreciate the support of the U.S. Attorney for the Eastern District of Pennsylvania and the Civil Division in working with us on these kinds of cases,” said Department of Justice Inspector General Michael E. Horowitz. “The OIG’s auditors and investigators will continue to work with each other closely to uncover misuses of grant funds, and with our law enforcement partners to ensure that justice is served.”
In addition to paying the United States $1.6 million, and as part of the settlement, Big Brothers has agreed to institute a strict compliance program that requires the organization to engage in regular audits, both internally and by independent auditors; establish a compliance team, an employee code of conduct, whistleblower policies and a disciplinary policy for employees who engage in or fail to disclose abuses of federal grant funds; provide regular employee training on these policies; and employ risk assessment tools to detect abuses that might otherwise go undetected.
The settlement was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Pennsylvania and the Civil Division’s Commercial Litigation Branch. The Department of Justice Office of the Inspector General conducted the investigation.
The claims resolved by this settlement are allegations only; there has been no determination of liability.
Big Brothers Big Sisters of America to Pay $1.6 Million to Resolve Allegations of False ClaimsRead the Press Release
PHILADELPHIA – Big Brothers Big Sisters of America Corporation (Big Brothers) has agreed to pay the United States $1.6 million to resolve allegations of false claims for funds under Department of Justice grants awarded to help children at risk, announced United States Attorney Zane David Memeger and Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. Big Brothers is a not-for-profit organization that provides mentoring services to boys and girls throughout the United States. The organization, originally based in Philadelphia, Pennsylvania, now is headquartered in Tampa, Florida.
Big Brothers is a national organization that acts through approximately 300 independent affiliate agencies across the United States. Since 2004, Big Brothers has received millions of dollars in grants from the Justice Department to support initiatives on behalf of children at risk. As a condition of those grants, Big Brothers was required to maintain sound accounting and financial management systems in accordance with federal regulations and guidelines designed to ensure that grant funds would be properly accounted for and used only for appropriate purposes.
The United States alleges that Big Brothers violated these regulations and guidelines with respect to three grants awarded by the Justice Department from 2009 to 2011, by commingling the grant funds with general operating funds, failing to segregate expenditures to ensure that the funds for each grant were used as intended, and failing to maintain internal financial controls to safeguard the proper use of grant funds. These allegations were documented in a 2013 audit of the three grants performed by the Department of Justice Office of the Inspector General. Since 2013, Big Brothers has replaced its management team and begun implementing policies aimed at correcting deficiencies in its management and accounting of federal grant funds.
“The US Attorney’s office is committed to protecting federal grants and ensuring that the funds are appropriately spent,” said Memeger. “Federal grant recipients must administer these grants with transparency and diligence, and the compliance measures implemented pursuant to this settlement agreement will help to achieve those goals.”
“Organizations such as Big Brothers have an obligation to the populations they serve as well as to the taxpayer to ensure that government grant funds are used for their intended purpose,” said Mizer. “The settlement announced today exemplifies the Department’s commitment to hold those who mishandle such funds accountable.”
“We appreciate the support of the U.S. Attorney for the Eastern District of Pennsylvania and the Civil Division in working with us on these kinds of cases,” said Department of Justice Inspector General Michael E. Horowitz. “The OIG’s auditors and investigators will continue to work with each other closely to uncover misuses of grant funds, and with our law enforcement partners to ensure that justice is served.”
In addition to paying the United States $1.6 million, Big Brothers has agreed to institute a strict compliance program that requires the organization to engage in regular audits, both internally and by independent auditors; establish a compliance team, an employee code of conduct, whistleblower policies, and a disciplinary policy for employees who engage in or fail to disclose abuses of federal grant funds; provide regular employee training on these policies; and employ risk assessment tools to detect abuses that might otherwise go undetected.
The investigation was conducted by the Department of Justice Office of the Inspector General. The settlement was handled by Assistant U.S. Attorneys Joel M. Sweet and Scott W. Reid in coordination with Trial Attorney David W. Tyler of the Justice Department’s Civil Division, Commercial Litigation Branch.
The claims resolved by this settlement are allegations only; there has been no determination of liability.
Battlefield Man Pleads Guilty to Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Battlefield, Mo., man has been indicted by a federal grand jury for receiving and distributing child pornography.
Dennis Prince, 61, of Battlefield, was charged in an indictment returned by a federal grand jury in Springfield, Mo., on Tuesday, Jan. 19, 2015. Prince was arrested and had his initial court appearance today.
The federal indictment alleges that Prince received and distributed child pornography between Oct. 31, 2013 and July 1, 2015.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the FBI, the Springfield, Mo., Police Department, the Battlefield, Mo., Police Department, and the Southwest Missouri Cyber Crime Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Another Sex Trafficker ConvictedRead the Press Release
HOUSTON – A 45-year-old Honduran woman has been convicted of conspiracy to commit sex trafficking, announced U.S. Attorney Kenneth Magidson.
Maria E. Gonzales Munoz aka “Merci,” 45, co-owned numerous brothels, including Cocodrillos, that posed as bars in and around the Houston area which facilitated commercial sex.
The undercover operation revealed that Munoz offered a female to as a prostitute at Cocodrillos. Even though the young female reported to be underage and had illegally entered the United States, Munoz still said she could work at Cocodrillos and even offered to provide living arrangements at her residence. Gonzales also informed the female that she could help her appear older through use of make-up and help her obtain a fraudulent identification card.
Gonzales will remain in custody pending sentencing, set for April 7, 2016, before U.S. District Judge Nancy Atlas. At that time, she faces up to life in prison.
The investigation leading to the filing of criminal charges was the result of an investigation conducted by members of the Human Trafficking Rescue Alliance (HTRA) in Houston, which includes the FBI, Harris County Sheriff’s Office, Immigration and Customs-Enforcement - Homeland Security Investigations, Texas Alcoholic and Beverage Commission, Department of State, Texas Department of Public Safety and the Houston Police Department.
Assistant United States Attorney Ruben R. Perez is prosecuting the case.
Anchorage Resident Sentenced to Two and A Half Years in Prison for Conspiracy, Bank Fraud and Aggravated Identity TheftRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Anchorage resident Zachary Ensman was sentenced to two and a half years in prison for conspiring to cash checks stolen from the mail and from vehicle break-ins, and taken during home burglaries. Ensman also used stolen identities to cash the stolen checks and to fraudulently open bank accounts to use for negotiating stolen checks. The loss from the conspiracy was over $40,000.
Zachary Ensman, 31, of Anchorage, Alaska, was sentenced today by U.S. District Judge Sharon L. Gleason to two and a half years in prison on nine counts that included charges of conspiracy, bank fraud, possession of stolen mail, and aggravated identity theft. Judge Gleason ordered Ensman to pay full restitution to the victims.
According to Assistant U.S. Attorney Aunnie Steward, who prosecuted the case, Ensman conspired with Kelci Neal to use stolen checks and stolen identities at banks and businesses in Anchorage from October 2014 to August 2015, to obtain over $47,000.
In imposing the sentence, Judge Gleason noted the impact to the individuals whose checks and identities were stolen and the banks that were defrauded.
Kevin Feldis, First Assistant U.S. Attorney, emphasized that “Ensman was part of a criminal conspiracy that harmed numerous people in our community. Not only were checks stolen, and cars and homes invaded, but people’s personal identities were stolen and misused. The impact of this crime is far greater than just the 40,000 dollars in falsified checks that were forged and cashed. Sixteen individuals had checks stolen, four had their identities stolen, and seven banks were defrauded. The United States Attorney’s Office places a priority on prosecuting these crimes and seeking compensation for the victims.”
“Postal Inspectors worked closely with the U.S. Attorney’s Office, Anchorage Police Department, and fraud investigators from numerous banking institutions on this investigation,” said Seattle Division Inspector in Charge Anthony Galetti of the U.S. Postal Inspection Service. “We take mail theft and subsequent use of stolen mail to commit identity theft very seriously and will continue to vigorously protect the U.S. Mail and customers against all forms of criminal attack and misuse.”
The United States Postal Inspection Service and the Anchorage Police Department conducted the investigation leading to the indictment in this case.
Alabama Man Heads to Prison for Importing MethamphetamineRead the Press Release
McALLEN, Texas – A 42-year-old man from Boaz, Alabama, has been ordered to federal prison following his conviction of importing and possessing with intent to distribute approximately 16 kilograms of methamphetamine, announced United States Attorney Kenneth Magidson. A federal jury sitting in McAllen convicted James Marcus Malone on all four counts as charged following two days of testimony and less than two hours of deliberation on Sept 10, 2015.
Today, U.S. District Judge Micaela Alvarez, who presided over the trial, handed Malone a total sentence of 320 months in federal prison to be immediately followed by 10 years of supervised release. During the hearing, the court considered the defendant’s lengthy criminal history, which included several prior drug convictions, and noted that the sentence was appropriate to promote respect for the law and to deter future criminal conduct of the defendant.
During trial, the jury heard that on March 20, 2015, Malone entered the U.S. at the Hidalgo, Texas Port of Entry, driving a Chevrolet Tahoe with Alabama license plates. Authorities soon determined he was linked to another vehicle and individual which subsequently arrived at the same Port of Entry just a few minutes later. The second vehicle, a Dodge Ram pickup truck, was driven by a man who presented an Alabama driver’s license. At the primary inspection area, a Customs and Border Protection (CBP) officer made initial contact with Malone and noticed he appeared nervous and incoherent when responding to questions regarding the purpose of his trip into Mexico. The officer then referred Malone to secondary inspection.
There, Malone denied knowing the other individual in the Dodge Ram pickup who was also from Alabama.
During a subsequent search of the Dodge Ram, CBP officers discovered approximately 16 kilograms of methamphetamine concealed within the muffler.
The jury also heard that Malone eventually admitted, during a post-Miranda interview, to knowing the other man from Alabama but claimed he was only dropping him off in Mexico to visit a recently deported girlfriend. Malone further stated during that interview that he assumed his travel companion was transporting narcotics, but that he forced himself to believe the story concerning the girlfriend and did not want full details.
However, the government presented evidence showing that Malone drove a group of conspirators from Alabama all the way to Reynosa for the purpose of picking up the Dodge Ram which was loaded with the narcotics. There was also evidence to suggest Malone, along with other conspirators, fabricated the story regarding the recently deported girlfriend in an attempt to ward off attention from law enforcement at the Port of Entry. A Homeland Security Investigations (HSI) agent testified and phone records proved Malone was in constant communications with a conspirator waiting for the load of narcotics to arrive in the Houston area prior to continuing back to Alabama.
Malone will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to charges was conducted by CBP and HSI. Assistant U.S. Attorneys Alex Benavides and Michael Day are prosecuting the case.Albuquerque Man Arraigned on Federal Firearms ChargesRead the Press Release
ALBUQUERQUE – Marcos Barela, 28, of Albuquerque, N.M., made his initial appearance in federal court today on an indictment charging him with violating the federal firearms laws. Barela remains in federal custody pending a preliminary hearing and a detention hearing which are currently scheduled for tomorrow morning.
Barela was charged by federal indictment on Oct. 7, 2015, with unlawfully possessing a firearm and ammunition on May 4, 2015, in Bernalillo County. N.M. According to the indictment, Barela was prohibited from possessing firearms or ammunition because of his prior criminal history which includes felony convictions for embezzlement, robbery, conspiracy to commit robbery, possession of a controlled substance, battery on a peace officer, arson and criminal damage to property.
Barela was arrested on a warrant for a state probation violation on May 4, 2015. He was arrested on the federal indictment today after he was transferred to federal custody from state custody.
If convicted of the offense against him, Barela faces a maximum sentence of ten years in federal prison. If Barela is determined to be a career criminal, he faces an enhanced sentence of not less than 15 years in federal prison upon conviction. The indictment against Barela is merely an accusation and Barela is presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque offices of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the DEA with assistance from the 2nd Judicial District Attorney’s Office and the Probation and Parole Division of the New Mexico Corrections Department.
Assistant U.S. Attorney David M. Walsh is prosecuting the case 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 and violent 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 Bernalillo County, under this initiative.
46 Southwestern PA Residents Charged in Fayette-County Based Cocaine and Heroin Trafficking RingRead the Press Release
PITTSBURGH – An additional 19 southwestern Pennsylvania residents have been indicted by a federal grand jury for violating the federal narcotics laws, bringing to 46 the number of defendants charged with participating in a large-scale cocaine and heroin trafficking organization operating in Fayette and Washington counties. The announcement was made today by federal, state and local law enforcement officials during a news conference at the Pennsylvania State Police Uniontown barracks.
“The 19 defendants charged this week are among a series of indictments we have brought to disrupt and dismantle the cocaine and heroin trafficking networks that have been operating in Fayette and surrounding counties, menacing neighborhoods and threatening the quality of life of the law-abiding citizens who live here,” stated U.S. Attorney David J. Hickton. “The U.S. Attorney’s Office continues to forge a community impact prosecution strategy designed to effect a demonstrable and meaningful reduction in community crime and improve public safety.”
“The arrests yesterday demonstrate, once again, the continued successful partnership of federal, state and local law enforcement in Western Pennsylvania,” said Special Agent in Charge Scott S. Smith of the FBI’s Pittsburgh Field Office. “The Pittsburgh Division of the FBI remains committed to stopping the flow of illegal drugs and improving the quality of life in the communities we serve. We are grateful to our law enforcement partners who worked tirelessly with us throughout this investigation and who are equally committed to keeping our neighborhoods safe.”
“Our troopers, working alongside with our federal, state, and local partners, have had a significant impact in disrupting the trafficking of illegal drugs in Fayette and the surrounding counties, said Captain David J. Heckman, Director of the Pennsylvania State Police/Drug Law Enforcement Division. “These efforts confirm our obligation to the citizens of Pennsylvania to dismantle the criminal enterprises that have a devastating impact on the quality of life in our communities.”
The two-count indictment, returned on January 19, named:
- Rodney Harris, 43, of Uniontown, Pa.;
- Leslie Blakey, 50, of Uniontown, Pa.;
- Gary Bradley, 42, of Arnold, Pa.;
- David Crews, 40, of Monessen, Pa.;
- Joseph Croftcheck, 67, of Hopwood, Pa.;
- Allen Dade; 34, of Brownsville, Pa.;
- Barry Douglas, 41, of Waynesburg, Pa.;
- Jamal Eddings, 34, of Uniontown, Pa.;
- Kwame Eddings, 35, of Uniontown, Pa.;
- William Fitzgerald, 41, of Uniontown, Pa.;
- Gregory Gray, Sr., 53, of Vanderbilt, Pa.;
- Eugene Grooms, 40, of Brownsville, Pa.;
- Jermaine High, 42, of Hiller, Pa.;
- Darnell Howell, 44, formerly of Belle Vernon, Pa.;
- Terrance Lewis, 42, of Uniontown, Pa.;
- Thomas McGhee, 31, of Cardale, Pa.;
- Wesley Middleton, 37, of Brownsville, Pa.;
- Kent Ramsey, 42, of Uniontown, Pa.; and
- Norman Thornton, 61, of Donora, Pa..
According to the indictment, from January 2010, and continuing to around June 2015, Harris, Lewis, and Bradley conspired to distribute and possess with intent to distribute heroin. The indictment also alleges that Harris and the remaining defendants conspired to distribute and possess with intent to distribute cocaine. The indictment seeks forfeiture of the proceeds of the crimes, including a combined $1,140,200, as well as three firearms and real estate.
For Harris, Crews, and Middleton, the law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $10 million, or both. For Blakey, Croftcheck, Douglas, Fitzgerald, Gray, Sr., Howell, Lewis, Ramsey, and Thornton, the law provides for a maximum total sentence of not less than five years and up to 40 years in prison, a fine of $5 million, or both. For the remaining defendants, the law provides for a maximum total sentence of not more than 20 years in prison, a find of $1 million, or both.
Previously Announced Indictments
On September 16, 2015, a 247-count indictment named Andre Saunders, 35, of Uniontown, Pa., charging him with violating federal narcotics, firearms, and money laundering laws.
According to the indictment, from around January 2010, and continuing to around June 2015, Saunders conspired to distribute and possess with intent to distribute at least one kilogram of heroin and at least five kilograms of cocaine. Saunders is also charged with possession with intent to distribute at least one hundred grams of heroin on May 5, 2015. Additionally, on May 5, 2015, Saunders possessed a firearm, although he is prohibited from possessing a firearm due a prior felony drug-trafficking conviction. The indictment seeks forfeiture of the proceeds of the crimes as well as property that was acquired with the proceeds and used to commit the crimes, including a combined $682,292.25, two residential properties and a vehicle.
The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $10 million, or both.
On December 10, 2015, a seven-count indictment named:
- William J. Chaffin Jr., 48, of Adah, Pa.;
- Semori Wilson, 45, formerly of Uniontown, Pa.;
- Domin Guerrero-Guerrero, 32, of Lebanon, Pa.;
- Dexter Allen, 27, of Uniontown, Pa.;
- George Daube, 59, of Donora, Pa.;
- Chalfonte Demery, 34, of McKeesport, Pa.;
- Damien Gibson, 41, of Duquesne, Pa.;
- Peter Hawkins, 44, of McKeesport, Pa.;
- Richard Lassic, 41, of Washington, Pa.;
- Marquis Bailey, 24, of Uniontown, Pa.;
- Tomarrio Blackburn, 33, McClellandtown, Pa.;
- Anitra Dues, 38, of Adah, Pa.;
- Brandon Harrison, 29, of McClellandtown, Pa.;
- Mark Johnson, 28, of Uniontown, Pa.;
- Keith Thomas, 30, of Uniontown, Pa.;
- Herbert Ballard, 50, of Pittsburgh, Pa.; and
- Nygel Saunders, 26, of Uniontown, Pa..
According to the indictment presented to the court, the defendants named above (except for Herbert Ballard and Nygel Saunders) engaged in a conspiracy to possess with intent to distribute and distribute cocaine from June 2015 to November 2015. Individually, William J. Chaffin Jr., Richard Lassic, Herbert Ballard, and Keith Thomas are charged with possession with intent to distribute and distribution of a quantity of cocaine, while Semori Wilson and Nygel Saunders are charged with possession with intent to distribute and distribution of 500 grams or more of cocaine. William J. Chaffin Jr. is also charged with possessing a firearm after a prior felony conviction.
The law provides for a maximum total sentences ranging of not less than five years in prison and up to life in prison, and fines ranging from $250,000 up to $8 million.
On December 16, 2015, a four-count indictment named:
- Prince Linton, age 41, of Uniontown, PA;
- Vaughn Gaines, age 44 of Uniontown, PA ;
- Donald Nicklo, age 40, of Uniontown, PA;
- Donald Brown, age 44, of Latrobe, PA; and
- Megan Gall, age 31, of Uniontown, PA.
According to the indictment, the defendants named above (except for Megan Gall) engaged in a conspiracy to possess with intent to distribute and distribute cocaine and heroin from August 2013 through May 2014. Individually, Donald Nicklo and Vaughn Gaines are additionally charged with possessing with intent to distribute a quantity of cocaine. Megan Gall is charged with unlawfully using a cellular telephone in committing, causing and facilitating the commission of the conspiracy to possess with intent to distribute and distribute cocaine and heroin.
The law provides for maximum total sentences ranging from four years in prison and a fine of $250,000, to not less than five years and up to 40 years in prison and a fine of $5 million.On August 5, 2014, an 11-count indictment named:
- Kenneth White, 38, of Uniontown, Pa.;
- Harold Jones, 27, of Uniontown, Pa.;
- George Kiss, 27, of Uniontown, Pa.; and
- Kendrick Pratt, 35, of Uniontown, Pa.
According to the indictment from around January 2013, and continuing to in and around December 2013, the defendants conspired with one another to possess with intent to distribute and distribute heroin. Harold Jones is charged with eight additional counts of possession with intent to distribute and distribution of less than 100 grams of heroin, and Kenneth White is charged with one count of the same.The law provides for a maximum total sentence of not more than 20 years in prison, a fine of $1 million or both.
Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Barbara K. Doolittle and Conor Lamb are prosecuting these cases on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Pennsylvania State Police, the Drug Enforcement Administration, the Fayette County Drug Task Force, the Pennsylvania Attorney General’s Office, the Allegheny County Sheriff’s Office, the Allegheny County Police Department, the Internal Revenue Service-Criminal Investigations and the United States Postal Inspection Service. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Wednesday 20 January 2016
Winter Harbor Woman Sentenced to Probation for Theft from the Postal ServiceRead the Press Release
Contact: Chris Ruge
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Sandra Melnick, 53, of Winter Harbor, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to three years of probation for the theft of public money. She was also ordered to pay the U.S. Postal Service $1,629.55 in restitution. The defendant pled guilty on August 11, 2015.
According to court records, from about May 19 to September 12, 2014, while serving as a Postmaster Relief at the Sullivan, Maine Post Office, Melnick issued a series of money orders without reporting the sale or tendering the money to the Postal Service. Many of these money orders were cashed by recipients before the defendant reported them as sold. When Postal Service investigators audited Melnick’s accounts, there were three previously-cashed money orders that Melnick had not reported as sold.
The investigation was conducted by the U.S. Postal Service, Office of the Inspector General.
Wendy Moore and Chris Latham Murder for Hire Convictions Affirmed on AppealRead the Press Release
Contact Person: Nathan S. Williams (843) 727-4381
Columbia, South Carolina ---- The United States Attorney’s Office for the District of South Carolina stated today that the convictions against Wendy Annette Moore, age 39, and Christopher Austin Latham, age 52, both of Sullivan’s Island, South Carolina, were affirmed by the Fourth Circuit Court of Appeals in a published opinion. The two were convicted following a February 2014 jury trial, where Moore was convicted of Conspiracy and Use of Interstate Facilities in the Commission of Murder for Hire under 18 U.S.C. §§ 1958(a), 1958(b); Solicitation of Murder for Hire under 18 U.S.C. § 373; and Possession of a Firearm in Furtherance of a Crime of Violence under 18 U.S.C. §924(c). Latham was convicted of a single count of Use of Interstate Facilities in the Commission of Murder for Hire under 18 U.S.C. §§ 1958(a). Both were sentenced in August, 2014, where Moore was sentenced to 15 years imprisonment and Latham was sentenced to 10 years imprisonment. The written Court of Appeals opinion may be found at http://www.ca4.uscourts.gov/Opinions/Published/144645.P.pdf
The case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Federal Bureau of Investigations; and the City of Charleston Police Department. Assistant United States Attorneys Nathan Williams and Rhett DeHart of the Charleston office prosecuted the case and appeal.
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Ukrainian Citizen Admits Using Army of 13,000 Infected Computers to Loot Log-In Credentials, Payment Card DataRead the Press Release
NEWARK, N.J. – The administrator of two criminal online hacking forums today admitted stealing log-in and payment card data as part of an international hacking conspiracy, U.S. Attorney Paul J. Fishman announced.
Sergey Vovnenko, a/k/a “Sergey Vovnencko,” “Tomas Rimkis,” “Flycracker,” “Flyck,” “Fly,” “Centurion,” “MUXACC1,” “Stranier,” and “Darklife,” 29, most recently of Naples, Italy, pleaded guilty before the U.S. District Judge Esther Salas in Newark federal court to Count One and Count Three of an indictment charging him with wire fraud conspiracy and aggravated identity theft.
Vovnenko was arrested on June 13, 2014, following an international investigation led by the U.S. Secret Service in coordination with Italian law enforcement. He had been detained by the Italian authorities pending the resolution of extradition proceedings, which he contested for more than 15 months.
According to documents filed in this case and statements made in court:
From September 2010 through August 2012, Vovnenko and his conspirators operated an international criminal organization that hacked into the computers of individual users and companies located in the United States and elsewhere. They used that access to steal user names and passwords for bank accounts and other online services, as well as debit and credit card numbers and related personal identifying information.
Vovnenko admitted that, in order to steal this data, he operated a “botnet” – more than 13,000 computers infected with malicious computer software – programmed to gain unauthorized access to computers and to identify, store, and export information from hacked computers. A number of the infected computers were located in New Jersey. Vovnenko admitted using malware known as “Zeus” to steal banking information and record the keystrokes of the users of infected computers.
According to the indictment, Vovnenko was a high-level administrator of several online criminal forums and used his position to traffic in the data he stole as part of the conspiracy. These forums featured electronic bulletin boards, which members used to publicly communicate with all members and also send private messages directly to individual members.
The public and private discussions on these forums typically pertained to criminal activity, including the purchase, sale, and use of stolen log-in credentials and payment card data, as well as discussions related to cybercrime activity such as malicious computer hacking. For example, in August 2012, one of the forums offered various illicit products for sale, including access to compromised computer servers located in the United States. A price was listed for each product, and customers could click an “order” button and purchase the product using “credits” associated with their accounts.
The wire fraud conspiracy charge to which Vovnenko pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The aggravated identity theft charge carries a mandatory two-year sentence, to be served consecutively to the conspiracy charge. Sentencing is scheduled for May 2, 2016.
U.S. Attorney Fishman credited the special agents of the U.S. Secret Service, Criminal Investigations Division, under the direction of Director Joseph P. Clancy, and special agents from the Newark Field Office, under the direction of Acting Special Agent in Charge Kenneth Pleasant, with the ongoing investigation leading to today’s plea.
He also thanked the Department of Justice’s Office of International Affairs in Washington and its attaché in Rome; the Office of the U.S. Ambassador to the Italian Republic and the Republic of San Marino, John R. Phillips; and the Italian Ministry of Justice and Italian law enforcement officials for their extraordinary support.
The government is represented by Assistant U.S. Attorney Daniel Shapiro of the Computer Hacking and Intellectual Property Section of the U.S. Attorney’s Office Economic Crimes Unit.
Defense Cousel: Timothy Anderson Esq., Red Bank, New Jersey
U.S. Attorney’s Office Collects More Than $32 Million in Civil and Criminal Penalties in Fiscal Year 2015Read the Press Release
ALBANY, NEW YORK – Albany, NY - U.S. Attorney Richard S. Hartunian announced today that the U.S. Attorney’s Office for the Northern District of New York collected more than $32 million in civil and criminal penalties in fiscal year 20151. Of this amount, $4,792,446 was collected from criminal prosecutions; $8,057,372 was collected via the forfeiture of money and other assets that represented the proceeds of criminal conduct or property used to commit such conduct; $19,210,739 was collected in civil cases; and an additional $508,916 was collected in civil cases worked in conjunction with other U.S. Attorney’s Offices and agencies in the Department of Justice.
1 The federal fiscal year runs from October 1st to September 30th.
Nationally, U.S. Attorney General Loretta E. Lynch announced that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015 – more than seven and a half times the appropriated $2.93 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
"The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse," said Attorney General Loretta Lynch. "The collections we are announcing . . . demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work."
United States Attorney Richard S. Hartunian said, "Recovering ill-gotten gains from wrongdoers is an important part of our work to protect the public and secure justice for all. Such recoveries remove the incentive for improper conduct and fund restitution for victims and other important programs. These collections results demonstrate the value of using all available remedies to address violations of law fairly."
Notable cases in which funds were recovered by the U.S. Attorney’s Office during fiscal year 2015 include the following:
Allegations of fraud perpetrated against Disadvantaged Business Enterprise program:
HD Supply Waterworks, the Nation’s largest supplier of water, sewer, fire protection and storm drain products, paid the United States $4,945,000 under the False Claims Act to resolve allegations that it participated in a scheme designed to take advantage of the Disadvantaged Business Enterprise (DBE) program in order to obtain subcontracts on federally-funded projects. The DBE program provides opportunities for businesses owned by socially and economically disadvantaged individuals to perform work on projects financed, at least in part, by the federal government. The settlement resolved allegations that Waterworks enabled various prime contractors to represent falsely that a now-defunct DBE, American Indian Builders & Suppliers, had performed commercially useful functions on federally-funded projects when, in reality, the prime contractors worked directly with Waterworks and used the DBE as a pass through.
Hospital and physician combine to pay to resolve billing improprieties self-disclosed by the hospital:
Oswego Hospital, a 164-bed acute care community hospital located in Oswego, New York, agreed to pay $1,456,457.33 to resolve False Claims Act liability stemming from healthcare billing improprieties that the hospital self-disclosed to the federal government. Dr. Vilas Patil, a physician formerly working as an independent contractor with Oswego Hospital, agreed to pay $204,365.97 to resolve False Claims Act liability in connection with a related investigation. The combined recovery to the state and federal governments was $1,660,823.30. The improprieties centered on billings that were unsupported by valid medical records and "repeat notes." These were instances where a patient’s chart would cover multiple days of inpatient services but the same treatment note was used for each day. The medical records therefore failed to support that any distinct services were rendered (making it improper to bill) and were of little to no use to the patients or subsequent providers trying to learn the patient’s mental health history.
Securities fraud conviction nets large restitution recovery:
On May 16, 2001, Paul Ryan was sentenced to be imprisoned for 37 months and to pay restitution in the amount of $2,881,662.90 to Albany Savings Bank (known as First Albany) in connection with his securities fraud conviction. After his release from prison, Ryan became employed by Integra Networks, Inc., and arranged for compensation in the form of company stock transferred to a Trust he established. Upon learning of the stock, the United States initiated an investigation into whether the transfers were improper. Prior to instituting an action, the United States was informed that Mr. Ryan wished to avoid further litigation and was willing to arrange the transfer of Integra stock to First Albany in order to satisfy the remaining balance of his restitution obligation. After successfully negotiating an in-kind stock transfer to the victim, stock valued at $2,634,035.71 was issued to First Albany, resulting in full satisfaction of the court-ordered restitution.
Government Forfeitures involving synthetic marijuana distributors:
The United States forfeited $1,707,988.11 from synthetic marijuana distributors, Eagle Eye Products, Inc., & Canyon Novelty Sales, Inc. et al., based in California but having shipped synthetic marijuana to the Northern District of New York for distribution and sale at various head shops throughout Central New York. An additional $39,652.39 was seized and forfeited from the owner of Zonen LTD, a head shop based in the Northern District of New York which purchased and sold synthetic marijuana products, such as "bizarro" and "spice." The United States also forfeited $103,253.22 in U.S. Currency and a 2010 Chevrolet Express Cargo Van from members of the Mansour synthetic marijuana distribution conspiracy, involving the sale of packets of synthetic marijuana at various locations throughout the City of Syracuse, including corner shops.
All U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights, or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the U.S. Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration, and the U.S. Department of Education.
U.S. Attorney Dettelbach to step down next monthRead the Press Release
United States Attorney for the Northern District of Ohio Steven M. Dettelbach has announced that he had submitted his resignation to President Obama and Attorney General Lynch effective on Feb. 5, 2016.
Dettelbach, 50, stated that he plans to reenter private practice.
“Serving as the United States Attorney, and leading and working with the incredible men and women of this office and so many law enforcement agencies, has been the single greatest honor of my professional life,” Dettelbach said. “I want to thank President Obama for affording me that rare opportunity. I hope that in the future I can both serve my clients well and remain an active part of this incredible community through public service.”
As U.S. Attorney, Dettelbach continued to focus on corruption, violent crime and fraud while also making civil rights and cybercrime new priorities. He made efforts in each of those areas to not only ramp up enforcement, but to prevent crime by engaging the community through outreach and creative programming.
Dettelbach emphasized transparency, publicly issuing releases on nearly every case charged. He also took steps to enhance the internal review of cases, requiring for the first time prosecution memoranda and indictment review committees in significant cases. He created a dedicated unit to focus on civil rights violations, both criminal and civil, and dedicated two prosecutors to cyber enforcement and formation of the Northern Ohio Cyber Security Consortium with leading businesses in the area. He created a new position of outreach coordinator to better understand community needs, and successfully managed the office through unprecedented Washington-based budget crises, including a federal government shutdown and sequestration cuts, while continuing to bring significant and impactful cases and collect in each and every year several times the office budget in fines, civil judgments and forfeitures from crime proceeds.
Under his leadership, the office negotiated an agreement to reform the Cleveland Division of Police, with emphasis on better use-of-force policies, more training, increased accountability, supervision and more robust community engagement. It also entered into voting rights agreements that for the first time ever resulted in bilingual ballots in Lorain and Cuyahoga Counties in order to comply with Section 4(e) of the Voting Rights Act.
He also brought together a diverse group of stakeholders – hospitals, doctors, law enforcement, treatment professionals, people in recovery and others – to attempt to find a comprehensive solution to the district’s heroin and opioid epidemic. That approach has become a national model replicated throughout the country including Atlanta, Minneapolis, Maine and New Mexico.
Among the cases prosecuted under Dettelbach:
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Human trafficking convictions against more than 40 defendants including Jeremy Mack, the Elyria man sentenced to life in prison for trafficking drug-addicted women and girls, and Jessica Hunt and Jordie Callahan, sentenced to 32 and 30 years in prison, respectively, for holding a woman with cognitive disabilities and her child against their will and forcing the woman to perform manual labor.
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U.S. v. Antun Lewis, twice convicting the defendant now serving 35 years in federal prison for setting the deadliest house fire in Cleveland history, which killed eight children and one adult.
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More than 1,000 firearms indictments filed against often violent felons during his time in office, one of the leading offices in the nation in that regard.
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U.S. v. Randolph Linn, an Indiana man now serving 20 years in prison for driving to Ohio to set fire to the largest mosque in the Toledo area.
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Five indictments using death-specification enhancements for people who sold heroin that directly contributed to a fatal overdose.
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The indictments and convictions in U.S. v. Samuel Mullet et al. on charges of hate crimes based on five violent religiously based attacks on Amish victims, which were reversed based on a jury instruction error, and witness tampering which resulted in significant prison sentences for all 16 defendants.
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Successfully prosecutions for fraud and bribery, one of which he personally tried, involving the collapse of the St. Paul Croatian Federal Credit Union, the largest credit union failure in United States history.
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U.S. v. Kevin Dye, another case personally tried by Dettelbach resulting in the conviction and 60-year prison sentence of a violent felon for firebombing the Mansfield Courthouse and City Hall.
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U.S. v. Schatz: William B. Schatz, the general counsel of the Northeast Ohio Regional Sewer District, took bribes totaling approximately $682,130 from Robert J. Kassouf, a contractor on NEORSD’s Mill Creek Tunnel project. Stanley Lojek was an intermediary for the bribes. Schatz also embezzled approximately $166,940 from the NEORSD. Schatz was sentenced to nearly six years in prison, Kassouf was sentenced nearly five years in prison and Lojek was sentenced to one year in prison.
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U.S. v. Alatrash: Faisal Alatrash, a project superintendent for the Greater Cleveland Regional Transit Authority, was sentenced to more than eight years in prison following his trial for taking bribes from contractors and steering work to his wife’s cleaning company.
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U.S. v. Ugochukwu: Christopher Ugochukwu is serving a 26-year prison sentence for leading an organization that brought heroin from Nigeria, Mexico, and Colombia and sold it throughout Greater Cleveland. Authorities seized more than 20 kilograms of heroin in 2010, believed to be the largest heroin seizure in Ohio history. Twenty-three people were convicted of crimes for their roles in the operation.
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U.S. v. Ricks: Keith Ricks, the leader of a group that brought large shipments of heroin from Atlanta and Chicago and sold it around the East Side of Cleveland, was sentenced to life in prison. A jury found that Ricks led a conspiracy that included scores of people, robbed rival drug dealers and used violence to control the sale of heroin in the neighborhood around St. Clair Avenue and East 117th Street. Nearly 60 people were convicted in the case.
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U.S. v. Wright, et al.: Douglas Wright, Brandon Baxter, Anthony Hayne, Connor Stevens, and Joshua Stafford convicted for the attempted use of a weapon of mass destruction for their efforts to blow up the Route 82 bridge that spans the Cuyahoga Valley National Park. Wright was sentenced to 11 years in prison, Baxter to nearly 10 years, Hayne to six years, Stevens to eight years and Stafford to 10 years in prison.
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U.S. v. Akl, et al: Hor and Amela Akl, a married couple in Toledo, were caught attempting to send $200,000 in cash to Hizbollah in Lebanon that was to be concealed in the side panel of the door of a car that was to be shipped to Lebanon. Hor Akl was sentenced to more than six years in prison and Amera Akl was sentenced to more than three years in prison.
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ISIL cases: Amir Al-Ghazi, of Sheffield Lake, was indicted on charges of providing material support to Islamic State of Iraq and the Levant (ISIL), as well as firearms and narcotics violations. Al-Ghazi is alleged to have pledged his support to ISIL via social media in 2014. From July 2014 to June 2015, Al-Ghazi made multiple statements trying to persuade others to join ISIL. He also expressed his own desire to perpetrate an attack on the U.S. and attempted to purchase an AK-47 assault rifle. Terrance McNeil, of Akron, was indicted for with soliciting the murder of members of the U.S. military. McNeil professed his support on social media on numerous occasions for ISIL and encouraged ISIL sympathizers to behead and stab members of the military in the U.S. Both cases are pending.
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U.S. v. Persaud: Westlake cardiologist Dr. Henry Persaud was sentenced to 20 years in prison for performing unnecessary catheterizations, tests, stent insertions and causing unnecessary coronary artery bypass surgeries as part of a scheme to overbill Medicare and other insurers by $29 million.
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U.S. v. Hazelwood, et al.: Nine people were convicted in one of the largest Internet pill diversion cases in the country and the first in the district. The case involved Hazelwoood and other doctors prescribing and dispensing hundreds of thousands of pills to people who contacted them via web sites Hazelwood controlled.
Dettelbach previously served for 12 years as a career federal prosecutor. During those years, he worked at the Department of Justice, Civil Rights Division, Criminal Section; U.S. Attorneys Offices in Maryland and Washington, D.C.; and from 2003 to 2006 in the Northern District of Ohio, as a member of the Organized Crime and Corruption Strike Force. As a line federal prosecutor, Dettelbach handled numerous high-profile cases, including public corruption and bribery cases such as U.S. v. Nate Gray and U.S. v. Emmanuel Onunwor, the prosecution of numerous corrupt officials and businesspeople involving the Cleveland Water Department, and U.S. v. Litten, a multimillion dollar bankruptcy fraud in Maryland. He also won convictions in what was, at the time, the largest human trafficking case ever brought in the United States, in which approximately 70 Thai women were held against their will and forced to work in El Monte, California.
Dettelbach is one of only five U.S. Attorneys to be appointed to the Attorney General’s Advisory Council by both Attorneys General Eric Holder and Loretta Lynch. Dettelbach chaired the subcommittee on Civil Rights during the entire length of his service as United States Attorney, tying him as the longest serving Subcommittee Chair of any United States Attorney in the Administration.
Dettelbach also was detailed to serve as Counsel for the United States Senate Committee on the Judiciary from 2001 to 2003. Dettelbach was previously a partner at the law firm of Baker & Hostetler, LLP.
Dettelbach graduated from Dartmouth College in 1988 and from Harvard Law School in 1991. He lives in Solon, Ohio with his wife and two children.
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