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4 March 2016
Shiprock Man Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Matthew Yazzie, 26, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to assault charges.
Yazzie was arrested on Sept. 21, 2015, on a federal indictment charging him with assaulting two women and a man on June 13, 2015, in Indian Country in San Juan County, N.M. According to the indictment, the victims suffered serious bodily injuries as a result of the assaults.
During today’s hearing, Yazzie pled guilty to the indictment without the benefit of a plea agreement. In its proffer of evidence, the United States indicated that Yazzie assaulted the victims by crashing the vehicle he was driving while under the influence of alcohol.
At sentencing, Yazzie faces a statutory maximum penalty of ten years in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI, the New Mexico State Police and the Shiprock office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Elaine Y. Ramirez is prosecuting the case.
Sentencings for February 26 - March 3, 2016Read the Press Release
Jayde Mucklow, 29, of Englewood, Colorado, was sentenced by Federal District Court Judge Scott W. Skavdahl on March 3, 2016, for possession with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, and aiding and abetting. Mucklow was arrested in Denver, Colorado. She received 66 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $250.00 fine and a $100.00 special assessment. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Jose Pena-Garcia, aka Jose Garcia, 27, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 3, 2016, for illegal re-entry of a previously deported alien into the United States. Pena-Garcia was arrested in Gillette, Wyoming. He received time served, plus 10 days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security.
Julia Cesar Munoz-Hernandez, aka Emiliano Martinez, aka Julio Hernandez, 30, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 3, 2016, for illegal re-entry of a previously deported alien into the United States. Munoz-Hernandez was arrested in Gillette, Wyoming. He received time served, plus 10 days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security.
Daniel Serrano-Alvarado, 41, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 3, 2016, for illegal re-entry of a previously deported alien into the United States. Serrano-Alvarado was arrested in Casper, Wyoming. He received time served, plus 10 days, was ordered to pay a $100.00 special assessment and is subject to
deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security.
Jose Yanez-Salinas, 27, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on March 1, 2016, for illegal re-entry of a previously deported alien into the United States. Yanez-Salinas was arrested in Jackson, Wyoming. He received time served, plus 10 days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security.
Jose Luis Cruz-Ramos, 40, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on March 1, 2016, for illegal re-entry of a previously deported alien into the United States. Cruz-Ramos was arrested in Jackson, Wyoming. He received time served, plus 10 days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security.
Raymond Austin Roberts, 39, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on February 26, 2016, for possession with intent to distribute a mixture of substance containing a detectable amount of methamphetamine. Roberts was arrested in Casper, Wyoming. He received 130 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Scranton Man Sentenced to 10 Years in Prison for Sex Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jimmy Cantelmo, age 27, Scranton, was sentenced today to 10 years in prison by Senior U.S. District Court Judge James M. Munley.
According to United States Attorney Peter Smith, Cantelmo previously pleaded guilty to conspiracy to commit sex trafficking of a minor. Cantelmo admitted to conspiring with others to commit the crime during February through August 2014.
The sex trafficking activity involved placing photographs of the minor along with ads in the adult “escort” section of a website; renting motel rooms in Lackawanna and Luzerne Counties where the prostitution activities occurred; and serving as security or “bodyguards” at the motels where the commercial sex acts took place.
Cantelmo was indicted by a federal grand jury in April 2015, as a result of an investigation by Homeland Security Investigations, the Pennsylvania State Police, and the Lackawanna County District Attorneys Office. Four persons have been charged in connection with the investigation. Sean Cantelmo, Jimmy Cantelmo’s brother, previously pleaded guilty and was sentenced to 151 months in prison. Justin Strait pleaded guilty and is awaiting sentencing. A fourth defendant is awaiting trial.
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
Judge Munley also ordered that Cantelmo serve five years on supervised release following his prison sentence. Cantelmo will also have to comply with the registration requirements of the Sex Offender Registration and Notification Act when released from prison.
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."
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Rogers Man Sentenced to 63 Months in Federal Prison for Child Pornography OffenseRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that Donnie Vest, age 61, of Rogers, Arkansas, was sentenced to 63 months imprisonment followed by 10 years of supervised release for Receipt of Child Pornography and ordered to pay a $15,000.00 fine. The sentencing took place before the Honorable Timothy L. Brooks in the United States District Court in Fayetteville.
According to court records, in January, 2014, the Northwest Arkansas Internet Crimes Against Children Taskforce identified an account with a known IP address that was receiving child pornography using a file sharing program. The IP address returned to Vest’s address located in Rogers. On or about June 26, 2014, law enforcement executed a search warrant at Vest’s residence, at which time he admitted to downloading and receiving images of child pornography onto his computer. A subsequent forensic examination of the hard drive on his computer revealed multiple images of child pornography. Vest pleaded guilty to the charge on December 1, 2015.
This case was investigated by Homeland Security Investigations and the Internet Crimes Against Children Taskforce. Assistant United States Attorney Denis Dean prosecuted the case for the United States.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and their Criminal Division Child Exploitation and Obscenity Sections (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
Rockwall, Texas, Man Sentenced to 80 Months in Federal Prison on Investment Fraud ConvictionRead the Press Release
DALLAS — Mark Lee Cleaton, 34, of Rockwall, Texas, was sentenced yesterday afternoon by U.S. District Judge Jane J. Boyle to 80 months in federal prison and ordered to pay $343,353.00 in restitution, following his conviction at trial in October 2015 on four counts of wire fraud stemming from an investment fraud scheme he ran, announced U.S. Attorney John Parker of the Northern District of Texas.
Judge Boyle ordered that he surrender to the Bureau of Prisons on April 6, 2016.
Cleaton was the managing member of North American Capital, LLC, formerly located at 2001 Bryan Street, Suite 2125, in Dallas. He created a limited partnership, North American Capital Investment Fund, LP (NACIF), in August 2009. From approximately August 2009 to July 2010, Cleaton solicited $350,000 in investments in NACIF from several individuals, promising to invest that money in short-term, high-yield real estate projects, when, in reality, he misappropriated all the money for himself, spending none of it as promised.
Throughout the scheme, Cleaton provided false investment memoranda and marketing materials to potential investors concerning the investment opportunity. Some of that material falsely represented an audited “7 year performance” history of NACIF, when as Cleaton well knew, NACIF had not even existed for seven years or had any rate of return.
Cleaton instructed each investor to wire funds into a checking account over which he had sole signatory authority. By the time he received the first investor’s funds, he had been locked out of his office in Bryan Tower for non-payment of two months’ rent. Cleaton immediately spent the investors’ money within weeks on personal expenses and unrelated business ventures, including credit card bills, trips to Hawaii, cash withdrawals, a used car business, and a high-end car audio/stereo store. He also intentionally failed to disclose to subsequent investors that he had already raised and spent prior investors’ money. Additionally, he made lulling payments to one victim investor from a later investor’s funds.
The FBI investigated the case. Assistant U.S. Attorney Nick Bunch and Deputy Criminal Chief Assistant U.S. Attorney Katherine Miller prosecuted.
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Repeat Bank Robber Sentenced to 12 Years in PrisonRead the Press Release
A long time bank robber who has done multiple prison terms for his crimes was sentenced today in U.S. District Court in Tacoma to 12 years in prison for a January 2015 bank robbery, announced U.S. Attorney Annette L. Hayes. LARRY G. BAILEY, JR., 53, of Chehalis, Washington has spent most of his adult life in prison for bank robbery. This latest robbery occurred shortly after he escaped from a half-way house following his last ten year prison term. At sentencing U.S. District Judge Ronald B. Leighton said the prison term was necessary to protect the community.
According to records filed in the case, on January 26, 2015 BAILEY walked into a Chase bank branch in Chehalis dressed as an elderly woman, with a canvas bag and one of his hands hidden under his shirt. He introduced himself to the bank manager saying he was “on his third strike.” BAILEY told the manager he had a gun and wanted to be taken to the vault. BAILEY took $36,000 from the vault and fled on a silver bicycle. A Lewis County Sheriff’s Deputy spotted BAILEY riding away near an I-5 overpass and after a brief foot pursuit took him into custody. All of the stolen money was recovered.
BAILEY’s bank robbery history begins in the 1980s. His first prison term for bank robbery was 30 months and he was released in 1990. In 1991 he was sentenced to nearly ten years in prison for bank robberies in Kansas and Spokane, Washington. Five years after his release on that prison term, in July 2004, BAILEY was arrested and sentenced to ten years in prison for another bank robbery in Spanaway, Washington. He escaped from a community corrections facility in Tacoma in March 2013, and was taken back into custody in August 2013. BAILEY was sent back to prison to finish his prison term. He had been out of prison less than a year when he committed the bank robbery in Chehalis.
The case was investigated by the Chehalis Police Department, the Lewis County Sheriff’s Office and the FBI. The case was prosecuted by Assistant United States Attorney Grady Leupold.
Red Feather Lakes Resident Indicted and Ordered Held Without Bond for Distribution and Possession of Child PornographyRead the Press Release
DENVER – Eli Traufield, age 42, of Red Feather Lakes, Colorado, was ordered held without bond by U.S. Magistrate Judge Nina Y. Wang earlier this week after being arrested based on an indictment alleging the distribution and possession of child pornography, U.S. Attorney John Walsh and FBI Denver Division Special Agent in Charge Thomas Ravenelle announced. Traufield was indicted on February 23, 2016. He soon thereafter appeared in court, where he was advised of his rights and the charges pending against him. He was then arraigned, and at the detention hearing Magistrate Judge Wang ordered the defendant held without bond because she believed he was a flight risk. Traufield had multiple misdemeanor offenses for which he failed to appear in court.
According to court documents, as well as a proffer before the court, an FBI agent, working in an undercover capacity out of the Minneapolis Field Office, began electronic communications with a Colorado resident who had child pornography to trade. The agent, posing as someone with similar interests, was able to download multiple videos and photos of child pornography images, all provided by the target turned defendant, Eli Traufield. Following additional investigation, Denver FBI agents, after obtaining a search warrant, searched Traufield’s cell phone and found that Traufield had emailed himself child pornography so that he could later download it to a file sharing network so he could share it with others. He also had emailed other people looking for specific child pornography. There were also multiple chats regarding the defendant’s sexual interest in young girls.
The defendant faces two counts of distribution of child pornography. If convicted, Traufield faces not less than 5 years, and not more than 20 years in federal prison, as well as up to a $250,000 fine, per count. He also faces one count of possession of child pornography, which carries a penalty of not more than 10 years in federal prison, and up to a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation (FBI).
The defendant is being prosecuted by Assistant U.S. Attorney Valeria Spencer.
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
Randolph County Resident Sentenced for Methamphetamine OffenseRead the Press Release
On March 3, 2016, Brian T. Lane, a/k/a Squirrel, 32, of Coulterville, was sentenced on a methamphetamine offense, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
Lane, who had previously pled guilty to one count of conspiracy to distribute and manufacture methamphetamine, was sentenced to 100 months in federal prison, to be followed by 3 years’ supervised release, and fined $200.00. Evidence at the plea and sentencing hearings established that Lane was involved with others in the manufacture and distribution of methamphetamine. Lane obtained and collected pseudoephedrine from others for use in the manufacture of methamphetamine. At sentencing, the judge found that Lane was responsible for the possession of 151.88 grams of pseudoephedrine and 2 grams of ice/methamphetamine. The offense occurred between 2013 and June 2015, in Perry, Jackson, and Randolph Counties. Two co-defendants have previously been sentenced for their role in the methamphetamine conspiracy. Five co-defendants have pled guilty and are awaiting sentencing. Four co-defendants have pled not guilty and are awaiting an April 18, 2016, jury trial.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Perry County Drug Task Force, Percy Police Department, Steeleville Police Department, Mascoutah Police Department, Illinois State Police Methamphetamine Response Team, DuQuoin Police Department, Pinckneyville Police Department, and Drug Enforcement Administration. The Randolph and Perry County State’s Attorney’s Offices also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Pueblo Woman Convicted of Conspiracy, Drug Trafficking and Firearm ChargesRead the Press Release
DENVER – A jury in U.S. District Court in Denver late yesterday found Leilani Marie Ontiveras-Martinez, age 34, of Pueblo, guilty of conspiracy, drug trafficking and firearm charges, U.S. Attorney John Walsh, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Ken Croke and Pueblo Police Chief Luis Velez announced. The jury trial was before U.S. District Court Judge William J. Martinez, lasted four days, with the jury deliberating approximately 2 hours before reaching their verdict on the first of two phases. They deliberated a short while longer before returning a guilty verdict on the second of the two phases. Ontiveras-Martinez, who appeared at the trial in custody, is scheduled to be sentenced by Judge Martinez on July 6, 2016.
Ontiveras-Martinez was indicted by a federal grand jury in Denver on October 6, 2014 on charges of conspiracy to distribute a controlled substance, three counts of distribution of a controlled substance, possession of a firearm during a drug trafficking crime, being a felon in possession of a firearm, and being a felon in possession of ammunition.
The defendant is a Pueblo gang member and drug dealer. According to court testimony, she conspired with another person to distribute heroin, and she possessed and distributed heroin, methamphetamine and crack cocaine. The Pueblo Police Department investigated the defendant, and was able to develop enough information to obtain state search warrants for her car, home and person.
After Ontiveras-Martinez went through the drive thru of a fast food restaurant on June 18, 2014, the Pueblo Police Department initiated a traffic stop. Inside her purse law enforcement found 50 grams of heroin, which is worth about $5,000 on the street. In her house officers found in her dresser drawer multiple baggies containing about 150 grams of heroin, which is worth about $15,000 on the street. Also in her dresser drawer, she had baggies containing 113 grams of methamphetamine, worth about $13,000 on the street. In a small safe under Ontiveras-Martinez’s bed authorities found a bundle of cash, as well as another 4.5 grams of heroin, 20 grams of methamphetamine, and 7 grams of crack cocaine. Also within arms’ reach of the drugs in her bedroom, hidden in between the mattress and boxsprings of her bed was a 12 gauge shotgun loaded with three rounds, as well as a plastic baggie with ammunition. In total, Ontiveras-Martinez had well over $30,000 worth of drugs in her purse and in her house.
“This case demonstrates the shared commitment of the U.S. Attorney’s Office and the ATF, working closely with the Pueblo Police Department and other southern Colorado law enforcement agencies to protect the people of the greater Pueblo area,” said U.S. Attorney John Walsh. “This defendant, a gang member and drug dealer in Pueblo, was rightly convicted of drug trafficking and firearm violations following a jury trial, and faces substantial federal criminal prison time.”
“Ontiveras-Martinez committed herself to a life of violent crime a long time ago. She repeatedly promoted drug use and violence in our community and preyed on troubled individuals,” said SAC Ken Croke. “Thanks to the collaborative effort between Pueblo PD, the U.S. Attorney’s Office and ATF, she will be unable to add to her criminal record or continue to negatively impact the citizens of Pueblo.”
“Ms. Ontiveras-Martinez is a career criminal and gang member in the City of Pueblo. She was a high level drug trafficker, dealing in Methamphetamines, Heroin, and Cocaine,” said Pueblo Police Chief Dr. Luis Velez. “Her conviction in Federal Court may be a precursor to similar collaborations in the future between municipal agencies and Federal agencies. I want to thank our Narcotics Officers, our Task Force Officers, and all of the Federal Agents and Prosecutors that took part in this investigation.”
Co-defendant Colter Grant Martinez, age 35, of Pueblo, was sentenced by Judge Martinez to serve 120 months (10 years) in federal prison for firearm and drug offenses. His federal prison sentence was also ordered to be served concurrently with any state imprisonment.
The defendant faces not more than 20 years in federal prison, and up to a $1,000,000 fine for conspiracy to distribute heroin. She faces not more than 20 years in federal prison, and up to a $1,000,000 fine for distribution of crack cocaine. Further, she faces not less than 10 years, and up to life in federal prison, as well as a $10,000,000 fine for distribution of methamphetamine. Ontiveras-Martinez faces not less than 5 years, and up to life in federal prison, as well as a $5,000,000 fine, for distribution of heroin. She faces not less than 5 years, to be served consecutively to any other prison sentence, for possession of a firearm during a drug trafficking offense. Finally, she faces not more than 10 years in federal prison, and up to a $250,000 fine for the one count of being a felon in possession of a firearm and one count of being a felon in possession of ammunition.
This case was investigated by the Pueblo Police Department’s Narcotics Unit and the ATF Gun Task Force.
The defendants were prosecuted by Assistant U.S. Attorneys Kurt Bohn and Jamie Mendelson.
Pittsburgh Man Pleads Guilty to Drug ChargeRead the Press Release
PITTSBURGH - A Pittsburgh resident pleaded guilty in federal court to a charge of conspiracy to distribute crack cocaine, United States Attorney David J. Hickton announced today.
Ronald Broadus, 42, pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The government received authorization to intercept wire and electronic communications over Broadus’s phone for a period of 30 days. During that timeframe, Broadus was intercepted over the wire conspiring with others to possess with intent to distribute and distribute crack cocaine.
Judge Hornak scheduled sentencing for June 27, 2016. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued Broadus on bond.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Broadus.
Pennsylvania Man Sentenced to 30 Years in Prison for Sex TraffickingRead the Press Release
The Justice Department announced today that Corderro Cody, 28, of Allentown, Pennsylvania, was sentenced today to 30 years in prison for running a sex trafficking operation.
Cody pleaded guilty on Oct. 30, 2015, to one count of conspiracy to commit sex trafficking by force, fraud or coercion; 12 counts of sex trafficking; one count of conspiracy to transport individuals across state lines for the purpose of prostitution and one count of sex trafficking of a minor. In addition to the prison term, U.S. District Court Judge Edward G. Smith of the Eastern District of Pennsylvania ordered 20 years of supervised release and a $1,500 special assessment.
Since at least 2009 through May of 2014, Cody recruited women to work as prostitutes, referred to his prostitution business as the “program” and advertised the women on Backpage.com. The women were sometimes driven to other states and forced to perform sexual acts. Cody recovered and kept most, if not all, of the money generated by the sexual acts. He also used physical force in the form of rape and violent assaults as well as extreme emotional manipulation when the women did not adhere to the “program” and to maintain the women performing commercial sexual acts. Cody forced one victim to work for him as a prostitute when she was just 17 years old.
“Cody operated a vicious sex trafficking scheme, using brutal physical attacks and emotional abuse to compel his victims to continue selling their bodies for his profit,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Civil Rights Division remains fiercely committed to holding traffickers accountable for their reprehensible conduct, and to safeguarding the rights and dignity of survivors of this heinous crime.”
“The sentence imposed today will ensure that this defendant is unable to subject other girls and women to the tortures that these victims endured,” said U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania.
“Investigations like this highlight the collaborative efforts of the many law enforcements agencies involved in the aggressive fight against human trafficking,” said Acting Special Agent in Charge Jack P. Staton of U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI) in Philadelphia. “This sentence should serve as a warning to all individuals and criminal groups involved in the trafficking of minors and women that we are determined to investigate and prosecute to the fullest extent of the law all that are involved in this heinous crime.”
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations and the Allentown Police Department. It was prosecuted by Assistant U.S. Attorney Sherri A. Stephan Eastern District of Pennsylvania and Trial Attorney Anita Channapati of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Pawn Shop Owner Pleads Guilty to Five Year Scheme to Sell Stolen GoodsRead the Press Release
Baltimore, Maryland – Noel Erik Anshel, age 48, of Owings Mills, Maryland pleaded guilty today to transportation of stolen goods.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Chief Gary Gardner of the Howard County Police Department; and Commissioner Kevin Davis of the Baltimore Police Department.
According to Anshel’s plea agreement, from January 1, 2010 to January 1, 2014, he was part owner of Hilltop Cellular, a pawn shop located in the 5400 block of Reisterstown Road in Baltimore. Anshel was the sole owner and manager of the shop from January 1, 2014 to August 12, 2015.
Anshel admitted that beginning from at least January 1, 2010 and continuing through August 12, 2015, he paid cash to “boosters,” a common term for shoplifters, in exchange for stolen products, including construction tools, pressure washers, kitchen appliances, electrical generators, and consumer electronics. The products were frequently new and still in the original box. The boosters brought the stolen items to Hilltop Cellular, where Anshel purchased the items, knowing that the boosters stole them from retail establishments. Anshel paid the boosters far less than the products’ retail value. Anshel paid at least three of his “regular” boosters over $40,000 each for stolen products.
Anshel had a license to resell “second-hand” merchandise at Hillside Cellular, but would list the stolen items on eBay as “new” and “brand new.” Most of the stolen items were sold to individuals residing outside of Maryland, and Anshel would ship the items through the U.S. Post Service and other commercial carriers.
During an investigation of an individual believed to be stealing items from a Home Depot store, Howard County Police Department officers followed the individual from a Home Depot store where the individual stole several items, to Hilltop Cellular where the individual sold the items to Anshel. According to his plea agreement, investigators spoke with Anshel who stated that, “90% of what I buy is stolen,” and “it’s the cost of doing business.” A subsequent search warrant executed at Hilltop Cellular recovered stolen property worth approximately $20,000, including dishwashers and circular saws.
The total estimated loss from the scheme is approximately $550,000. Anshel used the proceeds of the scheme to purchase, among other things, six houses in Baltimore.
As part of his plea agreement, Anshel will be required to forfeit the six properties, funds held in four PayPal accounts and six bank accounts, as well as property seized from his pawn shop.
Anshel and the government have agreed that if the Court accepts the plea agreement Anshel will be sentenced to 46 months in prison. U.S. District Judge J. Frederick Motz has scheduled sentencing for June 10, 2016 at 10:00 a.m.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service, Howard County Police Department, and Baltimore City Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Aaron S. J. Zelinsky, who is prosecuting the case.
Ottawa County Resident, Robert Allen Haveman, Charged with Wire Fraud and Money Laundering in $16 Million Fraud SchemeRead the Press Release
Robert Haveman Has Agreed To Plead Guilty and Repay $16,240,000
GRAND RAPIDS, MICHIGAN — Robert Allen Haveman, 68, of Ottawa County, Michigan, was charged with two felonies in connection with a scheme to defraud the Elsa D. Prince Living Trust between 1999 and 2015, U.S. Attorney Patrick A. Miles, Jr. announced today. Haveman has signed a plea agreement in which he waived his right to indictment by a Grand Jury and agreed to enter guilty pleas to wire fraud and money laundering.
The felony charges filed in U.S. District Court in Grand Rapids allege that Bob Haveman, while employed by EDP Management Company ("EDP") in Holland, Michigan, devised a scheme to defraud to obtain money belonging to Elsa D. Prince-Broekhuizen and the Elsa D. Prince Living Trust ("Prince Trust"). As part of his fraud scheme, it is alleged that Haveman, who primarily managed private equity investments for EDP, transferred money belonging to Ms. Prince-Broekhuizen and the Prince Trust to his personal bank account and other bank accounts for his personal use and investment activities. Haveman allegedly caused false entries to be made in the books and records of EDP to disguise his theft of money, and made material misrepresentations to and concealed material facts from Ms. Prince-Broekhuizen and others. Haveman also is charged with money laundering in connection with the purchase of vacant land with Lake Michigan frontage in Ottawa County.
Haveman faces a maximum sentence of 20 years in prison on the fraud charge and a maximum sentence of 10 years in prison for money laundering. The Court will determine the sentence after considering the federal sentencing guidelines and statutory sentencing factors.
Haveman has signed a plea agreement in which he agreed to plead guilty to the charges and admitted causing $16,240,000 in losses to the Prince Trust. An arraignment and change of plea will be scheduled with the Court. Until a defendant enters his plea and is found guilty, charges in a felony information are merely accusations, and a defendant is presumed innocent unless and until proven guilty in a court of law.
Internal Revenue Service Criminal Investigation is investigating this matter and Assistant U.S. Attorney Christopher O’Connor is prosecuting the case.
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Orangevale Man Arrested Today for Child Pornography ChargesRead the Press Release
SACRAMENTO, Calif. — An Orangevale resident was arrested today after a federal grand jury returned a four-count indictment on Thursday charging him with distribution, receipt and possession of child pornography and obstruction of justice, United States Attorney Benjamin B. Wagner announced. Dennis Boyle, 52, was arraigned today and pleaded not guilty. He is in custody, and a detention hearing has been scheduled for March 10, 2016.
According to court documents, law enforcement agents identified a user on a messenger service who was offering videos of child pornography in an online chat room. The investigation led to the residence of Boyle. Between August and October of 2015, Boyle allegedly distributed and received depictions of minors engaged in sexually explicit conduct. Boyle is alleged to have obstructed justice when he attempted to persuade a friend to delete electronic evidence stored on a laptop computer and on remote servers.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Special Assistant United States Attorney Josh F. Sigal is prosecuting the case.
If convicted, Boyle faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Operation Heat Wave Targets Florida Identity Theft, FraudRead the Press Release
The State Department’s Diplomatic Security Service Miami Field Office, working with multiple federal, state, and local enforcement authorities, has apprehended nine individuals suspected of passport fraud.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida and Robert Grech, Special Agent in Charge of the State Department’s Diplomatic Security Service (DSS), Miami Field Office, made the announcement.
Operation Heat Wave, a Florida statewide law enforcement operation that resulted in the suspects’ apprehension was conducted from February 18, 2016 through February 26, 2016 and spanned from Key Largo to Jacksonville.
“The U.S. Attorney’s Office and our federal, state and local law enforcement partners will continue to investigate and identify for prosecution individuals who compromise our nation’s security through passport fraud,” stated U.S. Attorney Wifredo A. Ferrer.
“The apprehension of fugitives and suspects delivers a clear message that federal, state, and local law enforcement authorities will find and bring to justice any individuals who attempt to defraud the U.S. government,” said Robert Grech, Special Agent in Charge of the DSS Miami Field Office. “If you engage in passport or visa fraud or engage in other forms of identity theft, sooner or later we will track you down.”
Operation Heat Wave generated the filing of federal criminal charges, by complaint, information or indictment, against a total of nine individuals for passport and/or visa fraud offenses. Seven individuals were charged in the Southern District of Florida for making false statements in passport applications. Two additional individuals were charged in the Middle District of Florida for making false statements in applications for a passport.
If convicted, individuals charged with falsifying a passport application will face a maximum penalty of 10 years’ imprisonment, and up to a $250,000 fine.
The DSS Miami Field Office is responsible for eight southern states. DSS personnel from across the region and approximately 100 federal, state, and local law enforcement officers were among those involved in support of Operation Heat Wave.
DSS partnered with the U.S. Attorney’s Offices for the Southern and Middle Districts of Florida, along with the Department of Homeland Security (DHS) Enforcement and Removal Operations; DHS Homeland Security Investigations; U.S. Marshals Service; Florida Highway Patrol; Miami-Dade Police Department; and several other local law enforcement agencies.
Mr. Ferrer commended DSS for leading this operation, and thanked the U.S. Attorney’s Office for the Middle District of Florida and all participating agencies for their investigative efforts and assistance. The cases in the Southern District of Florida are being prosecuted by Assistant United States Attorneys Jennifer Keene, Theodore Cooperstein, Carmen Lineberger, Jonathan Stratton and Brian Shack.
An information, complaint and indictment are merely legal filings containing accusations and every defendant is presumed innocent until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Olive Branch Man Sentenced for Two Separate Fraud Schemes Totaling More Than $2 MillionRead the Press Release
Memphis, TN – An Olive Branch, Mississippi man has been sentenced to nine years for executing two separate fraud schemes that defrauded victims of more than $2 million. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, between December 2012 and October 2014, Anthony Davis, 44, of Olive Branch, Mississippi, owned ADLM Automotive, Inc., a Mississippi-based wholesale automobile dealership that conducted business in Memphis. He used the company to promote a purported investment opportunity that ultimately defrauded investors of nearly $1.8 million.
During the aforementioned time period, Davis fraudulently told victims that they could purchase a Retail Installment Contract and Security Agreement (RICSA) from him through ADLM Automotive. He also told them that when he sold a vehicle to a customer and the customer financed any part of the purchase price, the customer would sign a RICSA, and an application for a title with the appropriate state (e.g., Tennessee, Arkansas, or Mississippi) agency responsible for issuing vehicle titles. Davis represented to the victims that they would have a perfected security interest in the vehicle which was the subject of the RICSA because their security interest would be noted on the Certificates of Title.
Davis told victims that monthly payments on the RICSAs would be collected by a Georgia-based company known as Vehicle Acceptance Corporation (VAC), and that each customer had signed an Automated Clearing House (ACH) payment form so that monthly payments would be automatically deducted from their bank account. Davis further represented that ADLM Automotive maintained an account with VAC and would direct VAC to route customers’ payments to the victims’ bank accounts. More so, Davis told the victims that if a customer defaulted and failed to make payments under the terms of the RICSA, ADLM Automotive would repurchase the non-performing loan, or give the victim the option of replacing the non-performing loan with a performing loan of equal or greater value.
Due to his fraudulent representations, Davis received investments from multiple victims. All along, Davis knew the RICSAs, customers, vehicles and titles did not exist.
In addition, and according to the charging document, Davis executed a separate fraud scheme between January 2014 and August 2014. This scheme involved Davis searching for and obtaining Social Security Numbers to create fraudulent credit profiles. The credit profiles and other false and fraudulent identifying information were used to obtain credit to finance the purchase of vehicles. As a result of the scheme, Davis and co-conspirators fraudulently obtained and attempted to obtain credit to finance the purchase of approximately 16 vehicles. The losses associated with this scheme were more than $457,000.
In December 2015, Davis pled guilty to two counts of wire fraud before U.S. District Judge John T. Fowlkes Jr.
On Friday, March 4, 2016, Judge Fowlkes sentenced Davis to nine years in prison.
The amount of restitution Davis will pay to victims will be determined on Wednesday, March 9, 2016. In the agreement filed at the time of his plea, Davis agreed to pay restitution in the total amount of $1,763,829.50 to those victimized in the first scheme; and a total amount of $457,507.06 to those victimized in the second scheme.
The case was investigated by the U.S. Postal Inspection Service, U.S. Marshal’s Service, and the Social Security Administration – Office of Inspector General.
Assistant U.S. Attorney Carroll L. Andre III prosecuted this case on the government’s behalf.
Ohio Convicted Murderer Sentenced to A Lifetime of Incarceration Without Parole for the 2005 Murder of Woman at Fort Knox Military BaseRead the Press Release
Ohio Woman had been missing since 2005
Formerly convicted of 2005 murder in Toledo, Ohio
PADUCAH, Ky. – A Toledo, Ohio, convicted murderer was sentenced today by Senior Judge Thomas B. Russell, in United States District Court, to a lifetime of incarceration, without the possibility of parole, for the 2005 murder of a woman at Fort Knox Military Base, announced United States Attorney John E. Kuhn, Jr.
In court, defendant Ernest Otto Smith, 49, admitted that on or about January 7, 2005, he murdered Cathy M. Barnett willfully, deliberately, maliciously, and with premeditation, on the grounds of Fort Knox, within the special territorial jurisdiction of the United States.
“This life sentence is a just punishment for the brutal murder Smith committed at Fort Knox,” stated U.S. Attorney, John Kuhn.“And because Smith will not ever be paroled, we have insured the public’s safety.”
Smith had previously admitted that on January 3, 2005, he robbed and shot and killed James Dillingham in Toledo, Ohio. It is believed Barnett was present during the murder. Shortly after the murder, Smith and Barnett fled Toledo and ultimately headed south to Kentucky in Smith’s van. Smith had formerly lived and worked near Fort Knox.
During the trip to Kentucky Smith decided to murder Barnett because she witnessed the Dillingham murder and could tell the police about the murder. On January 7, 2005, Smith’s van broke down in Kentucky and Smith and Barnett hitchhiked and they were dropped off near Fort Knox. Smith and Barnett walked approximately one quarter of a mile down a service road off the main highway, into a wooded area located on the grounds of Fort Knox, in Meade County, Kentucky. In the wooded area, Smith first attempted to break Barnett’s neck, and then beat her on the head with a tree branch until Smith knew Barnett was dead. Smith left Barnett’s body in the woods and eventually traveled to Tennessee where he was arrested in Nashville on January 21, 2005. In March 2006, Smith was convicted in Ohio of the Dillingham murder and was sentenced to 32 years of imprisonment.
In late 2010, Smith spoke with his former parole officer, Dan Van Vorhis, who asked Smith what happened to Barnett. Over the course of several recorded conversations, Smith explained to Van Vorhis the details of her murder. Smith also identified where Barnett’s remains would be found. The Federal Bureau of Investigation (FBI) searched and found Barnett’s remains on the grounds of Fort Knox, in the wooded area identified by Smith.
This case was prosecuted by Assistant United States Attorney David Weiser and was investigated by the Federal Bureau of Investigation.
Oak Brook Doctor Convicted in Kickback Scheme at Sacred Heart HospitalRead the Press Release
CHICAGO — A federal jury today convicted an Oak Brook doctor of illegally receiving benefits in exchange for referring elderly patients to Sacred Heart Hospital on Chicago’s West Side.
After a five-week trial, DR. VENKATESWARA R. “V.R.” KUCHIPUDI was convicted on one count of conspiracy to defraud the United States, and nine counts of illegally soliciting or receiving benefits in return for referrals of patients covered under a federal health care program. Each count carries a maximum sentence of five years in prison and a $250,000 fine.
U.S. District Judge Matthew F. Kennelly scheduled a sentencing hearing for June 2, 2016, at 1:30 p.m.
Dr. Kuchipudi, 69, is the tenth defendant convicted in a multi-year investigation of the now-shuttered hospital at 3240 W. Franklin Blvd. in Chicago. From 2001 through April 2013, Sacred Heart executives conspired to pay kickbacks and bribes to physicians to induce them to refer patients for services that would be reimbursed by Medicare and Medicaid. The scheme earned Sacred Heart millions of dollars in reimbursements from Medicare and Medicaid.
The prior convictions include EDWARD NOVAK, the hospital’s owner and chief executive officer; ROY PAYAWAL, the chief financial officer; CLARENCE NAGELVOORT and ANTHONY J. PUORRO, both of whom were chief operating officers; and four other physicians. Sacred Heart closed in 2013 in the aftermath of a federal law enforcement search of the hospital and the arrests of principal executives and Dr. Kuchipudi.
Evidence at Dr. Kuchipudi’s trial revealed that he was one of Sacred Heart’s most prolific sources of patient referrals. In exchange for his referrals, Sacred Heart provided Dr. Kuchipudi with free labor in the form of physician assistants and nurse practitioners. The free labor was provided not only inside Sacred Heart but also in Chicago-area nursing homes where many of Dr. Kuchipudi’s patients resided. Sacred Heart allowed Dr. Kuchipudi to bill Medicare and Medicaid for the services of the physician assistants and nurse practitioners as if he employed them himself.
Evidence at trial further revealed that Dr. Kuchipudi and Sacred Heart arranged for his patients to be transported long distances to Sacred Heart for treatment, even when the nursing homes in which they resided were closer to hospitals where Dr. Kuchipudi had privileges and which had more comprehensive facilities.
The conviction was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Lamont Pugh III, Special Agent-in-Charge of the Chicago Region of the U.S. Department of Health and Human Services Office of Inspector General; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The investigation was carried out by the Medicare Fraud Strike Force, which is part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative between the U.S. Justice Department and the U.S. Department of Health and Human Services to prevent fraud and to enforce anti-fraud laws around the country. Dozens of defendants have been charged in numerous fraud cases since the strike force began operating in Chicago in 2011.
The government is represented by Assistant U.S. Attorneys Joel Hammerman, Diane MacArthur, Kelly Greening and Brian Wallach.
North Carolina Couple Indicted for Tax Fraud and Bank Fraud Related to Their Online BusinessRead the Press Release
A federal grand jury in the Middle District of North Carolina returned an indictment March 1 charging a Greensboro, North Carolina couple, who operated an online sales business with tax fraud as well as bank and wire fraud, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Ripley Rand of the Middle District of North Carolina. The defendants were arrested earlier today and had their initial court appearances this afternoon.
Daniel Balson and Renee Balson were charged with one count of conspiracy to defraud the United States and to commit bank fraud, one count of bank fraud and five counts of wire fraud. Daniel Balson was additionally charged with three counts of filing false tax returns for 2009 through 2011 and Renee Balson was charged with one count of filing a false tax return for 2009.
According to the indictment, Daniel Balson owned and operated Southern Sales Online (SSO), an online retail business that sold a variety of merchandise through eBay and Amazon, including scrapbooking and art materials, books, inspirational DVDs, pet supplies and tools. It is alleged that although SSO earned more than $1 million in gross receipts during 2005 through 2011, the Balsons failed to report gross receipts for SSO on their tax returns filed with the Internal Revenue Service (IRS). The Balsons also failed to report income from SSO on a bank application for a mortgage loan modification in 2011. The indictment also alleges that the Balsons stole merchandise from LifeWay Christian Stores and Hobby Lobby and then knowingly sold the stolen merchandise through SSO at prices less than retail value.
If convicted, Daniel Balson and Renee Balson each face a statutory maximum sentence of five years in prison for the conspiracy count, 30 years in prison for the bank fraud count, 20 years in prison for each wire fraud count and three years in prison for each false tax return count. The Balsons also face substantial monetary penalties and restitution.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceeding.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Rand commended special agents of IRS-Criminal Investigation, who investigated the case, and Assistant Chief Todd A. Ellinwood and Trial Attorney Mara Strier of the Tax Division, who are prosecuting the case. Acting Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office of the Middle District of North Carolina for their assistance.
Nevada City Man Pleads Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
SACRAMENTO, Calif. — Donald Henry Dugan, 55, of Nevada City, pleaded guilty today to possession with intent to distribute at least 50 grams of a mixture or substance containing a detectable amount of methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, on July 15, 2014, task force officers served a state search warrant of Dugan’s residence that resulted in the seizure of over a pound of methamphetamine, along with various items associated with controlled substance distribution such as baggies, a funnel, and a digital scale. In addition, a loaded handgun and ammunition were found in a backpack underneath Dugan’s desk. Dugan was previously convicted of a state felony in 1997 for possession of a controlled substance while carrying a loaded firearm.
This case is the product of an investigation by the Drug Enforcement Administration and the Nevada County Sheriff’s Narcotics Task Force. Assistant United States Attorney Matthew M. Yelovich is prosecuting the case.
Dugan remains in custody. He is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on June 17, 2016. Dugan faces a maximum statutory penalty of 40 years in prison, a mandatory minimum of five years in prison, and a $5 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Mumbai, India, Man Sentenced on Misbranding ChargeRead the Press Release
HARRISONBURG, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today the sentencing of Indian national who previously pled guilty to conspiring to import illegal prescription drugs into the United States.
Ummer Nishad, 27, of Mumbai, India, was sentenced last week in the United States District Court for the Western District of Virginia in Harrisonburg to imprisonment for a term of four months and ten days. He was also ordered to pay $7,500 in restitution and agreed to be removed to India following the completion of his prison term.
“Ensuring the health and safety of the citizens of the Western District of Virginia by prosecuting those who import misbranded drugs is one of the most crucial tasks my office can perform,” United States Attorney John P. Fishwick Jr. said today. “I am grateful for the hard work of the agents with the FDA for investigating this case and bringing charges against this individual.”
The investigation of the case was conducted by the U.S. Food and Drug Administration’s Office of Criminal Investigations. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Marshall County man sentenced for oxycodone trafficking, bank fraudRead the Press Release
WHEELING, WEST VIRGINIA – Christopher Michael Previtera, 38, of Proctor, West Virginia, was sentenced today to 57 months in prison for oxycodone trafficking and bank fraud, United States Attorney William J. Ihlenfeld, II, announced today.
Throughout 2014 and 2015, Previtera conspired with other individuals to possess and distribute oxycodone in Marshall and Wetzel Counties. He also admitted to committing fraud in connection with a loan that he obtained in order to finance the purchase of an automotive services business that he owned.Previtera pled guilty in June 2015 to one count of “Drug Conspiracy – Oxycodone,” and one count of “Bank Fraud.” He was sentenced today to 57 months in prison for drug trafficking and 57 months in prison for bank fraud. The sentences will run concurrently for a total of 57 months in prison.
As part of the sentence imposed today, Previtera was also ordered to forfeit his interest in multiple firearms, $15,070 in United States currency, a 2007 Dodge Ram truck, John Deere lawn care machinery, and various equipment and inventory related to the automotive services business. Previtera was also ordered to pay money a judgment in the amount of $145,000 in the drug trafficking case. He was further ordered to pay a money judgment and restitution in the amount and $84,117.74 in the bank fraud case.
Assistant U.S. Attorney Jarod Douglas prosecuted the case on behalf of the government. The Federal Deposit Insurance Corporation investigated the bank fraud charges. The West Virginia State Police, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the drug trafficking charges.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.Mansfield, Texas, Man Sentenced to 20 Years in Federal Prison for Producing and Distributing Child PornographyRead the Press Release
DALLAS — Charles Richard Burks, 67, of Mansfield, Texas, was sentenced today by U.S. District Judge John McBryde to serve a total of 20 years in federal prison, following his guilty plea in November 2015 to one count of production of child pornography and one count of distribution of child pornography. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
Burks has been in custody since his arrest in July 2015 on a related federal criminal complaint, following the execution of a search warrant at his residence.
According to documents filed in the case, on approximately June 30, 2014, Burks used the Internet and Yahoo mail to distribute a video of a minor female engaged in sexually explicit conduct to another Yahoo email user. The subject line of the email was “video,” and it contained the message, “watch.”
On approximately June 9, 2015, Burks used Yahoo Instant Messenger and his Yahoo email account to communicate with an individual in the Philippines about using minors to engage in sexually explicit conduct. The two discussed what sex acts would be performed during a live show and that Burks would pay $25 for images from the show.
On approximately June 10, 2015, Burks knowingly employed, used, persuaded and induced a minor female, to engage in sexually explicit conduct, outside of the United States, so that still visual images of that conduct could be produced. Burks intended the visual images to be transported to the United States. In fact, Burks received an email from that individual in the Philippines. The subject line of the email was “here the pics,” and attached were eight images depicting the same minor female.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated the case. Assistant U.S. Attorney A. Saleem was in charge of the prosecution.
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Man Admits Performing Lead-Based Paint Testing in Westville Without CertificationRead the Press Release
ALBANY, NEW YORK – Ronald Barney, age 66, of Orange, California, pleaded guilty yesterday to a misdemeanor charge of performing lead-based paint testing inspections and risk assessments without a certification from the Environmental Protection Agency (EPA).
The announcement was made by United States Attorney Richard S. Hartunian, EPA Criminal Investigations Division Special Agent in Charge Vernesa Jones-Allen, and Christina Scaringi, Special Agent in Charge of the Housing and Urban Development Office of Inspector General.
Barney, formerly of Constable, New York, pled guilty to a violation of the Toxic Substances Control Act. United States Magistrate Judge Douglas F. McCormick of the Central District of California sentenced Barney to a two-year term of probation and ordered him to pay a $2,500 fine. This case, brought by the U.S. Attorney’s Office for the Northern District of New York, was resolved in the Central District of California, where Barney now resides.
As part of his plea, Barney admitted that on November 4, 2010, he performed an inspection and risk assessment for lead-based paint on a residence in the Town of Westville, New York, despite not being certified by the EPA to do so, and that he billed Westville $2,500 for these services.
The case resulted from a joint investigation by the EPA Criminal Investigations Division and the Housing and Urban Development Office of Inspector General. The case was prosecuted by Assistant United States Attorney Sean O’Dowd in Albany and Assistant United States Attorney Robert Keenan of the Central District of California.Major Methamphetamine Prosecution Sends Dozens to PrisonRead the Press Release
ROANOKE, VIRGINIA – The investigation into a major methamphetamine conspiracy that distributed large amounts of the drug unto Wythe County, Carroll County, Pulaski County, Grayson County, the City of Galax and part of North Carolina, concluded this week with the sentencing of the final, non-fugitive defendant, United States Attorney John P. Fishwick Jr. announced today.
Joseph Gentry, 34, of Low Gap, North Carolina, previously pled guilty to conspiracy to distribute 50 grams or more of methamphetamine. This week in District Court, Gentry was sentenced to 121 months of federal incarceration.
“These individuals brought thousands of pounds of methamphetamine into the Western District of Virginia from the West Coast and Mexico. They imported this poison into our communities and profited off the addiction of others,” United States Attorney John P. Fishwick Jr. said today. “It is a testament to the cooperation and professionalism of the law enforcement agencies that devoted the time and resources necessary to take down this conspiracy.”
Gentry is the last of more than 40 defendants convicted as a result of a long-running investigative operation conducted by the Virginia State Police, the Wythe County Sheriff’s Office, the Grayson County Sheriff’s Office, the Galax Police Department, the Carroll County Sherriff’s Office, the Pulaski County Sheriff’s Office and the Drug Enforcement Administration. The operation dismantled a methamphetamine distribution network that brought more than 1,800 pounds of methamphetamine into the area between 2010 and 2015. Most of this methamphetamine was brought to Western Virginia from California or Mexico.
Three defendants, Erika Ortiz, Olivia Moreno and Bianca Aroche, have been charged as being part of the conspiracy but are currently fugitives.
The investigation of the case was conducted the Virginia State Police, the Wythe County Sheriff’s Office, the Grayson County Sheriff’s Office, the Galax Police Department, the Carroll County Sherriff’s Office, the Pulaski County Sheriff’s Office and the Drug Enforcement Administration. Assistant United States Attorney Ashley B. Neese prosecuted the case for the United States.
Maine Roofing Company Pays $439,500 to Settle False Claims Act AllegationsRead the Press Release
Contact: Andrew K. Lizotte
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II today announced that Belcon Enterprises, formerly Roof Systems of Maine (“Belcon”), has entered into a civil settlement agreement with the United States in which it will pay $439,500 to resolve allegations that it violated the federal False Claims Act.
Belcon is based in Bangor, Maine. As part of its business, Belcon provided roofing and siding services to commercial and industrial installations throughout the state of Maine, including as subcontractor on prime Government construction contracts. The settlement resolves allegations by the Government that Belcon knowingly caused false and fraudulent claims to be submitted in connection with roofing and siding work it performed as a subcontractor on three prime Government construction contracts between 2010 and 2014.
The Government alleged that Belcon knowingly billed and was paid for metal wall panel installation work which did not conform to applicable contract requirements and specifications at the Army National Guard’s Armed Services Reserve Center in Brunswick, Maine. Specifically, it was alleged that Belcon improperly directed and/or permitted the panels to be re-sized and altered, installed the panels at incorrect locations, and did not use sealant throughout the panel installation. The Government also alleged that Belcon knowingly used non-specified, off-contract materials on two roofing and siding projects for the Navy. For the Navy’s Power Plant Building in Cutler, Maine, it was alleged that the materials used by Belcon for flashing and trim on the project were thinner, less-expensive, and made by a different manufacturer than required by the contract. For the Portsmouth Naval Shipyard Building 86 in Kittery, Maine, it was alleged that Belcon used plain carbon steel screws rather than the required copper, brass or Series 300 stainless steel fasteners on a copper installation, which will result in galvanic corrosion and safety and structural issues.
The allegations of fraud stated in the action were first brought to the attention of the Government by Brian Emery, who filed a lawsuit in late 2014 as a relator under the False Claims Act’s qui tam provisions. See United States ex rel. Emery v. Roof Systems of Maine, et al., 14-cv-00483-DBH (D. Me.). The Government will pay Mr. Emery a share of the settlement proceeds pursuant to the False Claims Act’s qui tam provisions.
The False Claims Act permits the Government to recover up to three times the amount of damages incurred by the United States, in addition to civil penalties ranging from $5,500 to $11,000 per violation. Private parties who have knowledge of fraud committed against the Government may file suit on behalf of the Government and share in any recovery. The United States may also intervene and file its own lawsuit for treble damages and penalties, as it did in this case.
The federal government was represented by the U.S. Attorney’s Office and the Naval Criminal Investigative Service and the Defense Criminal Investigative Service. Belcon cooperated throughout the Government’s investigation.
Lockport Man and Woman Arrested on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Oliver Kimmons, 48, and Kathlyn Ventura, 24, both of Lockport, NY, were arrested and charged by criminal complaint with possession with intent to distribute heroin and crack cocaine. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that according to the complaint, the defendants are accused of selling heroin and crack cocaine in the City of Buffalo and the Lockport area.
As part of the federal investigation, Kimmons and Ventura were identified as “retail dealers” in a larger narcotics conspiracy. According to the complaint, Kimmons obtained narcotics from his brother Joseph Thompson and Thompson obtained his narcotics from Trent Hamilton and Troy Gillon. Thompson has been indicted on charges of possession with intent to distribute heroin, crack cocaine and fentanyl. Hamilton has been indicted on charges of conspiracy to possess with intent to distribute and to distribute heroin, and possession with intent to distribute and to distribute heroin. Gillon has been indicted on charges of conspiracy to possess with intent to distribute heroin, fentanyl, and cocaine and possession with intent to distribute heroin, fentanyl and cocaine.
The defendants made an initial appearance this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder and are being detained pending a detention hearing on March 9th, 2016 at 10:30 a.m.
The complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the Lockport Police Department, under the direction of Chief Michael Niethe and the Niagara County Drug Task Force, under the direction of Sheriff James Voutour.
The fact that a defendants have been charged with a crime is merely an accusation and the defendants are presumed innocent until and unless proven guilty.
Local investment manager sentenced in investment fraud schemeRead the Press Release
INDIANAPOLIS - United States Attorney Josh J. Minkler announced today that Ronald W. Nichter, an investment broker from Pendleton, Indiana, was sentenced for his role in a fraud scheme. Nichter, age 60, was sentenced by U. S. District Judge William T. Lawrence to one year in federal prison after his conviction on eight counts of mail fraud. Nichter engaged in a scheme to defraud his clients by withdrawing money from their accounts for his personal use.
“The victims in this case worked hard for their money, and they expected the defendant to work equally hard to protect it,” Minkler said. “Instead, this alleged scheme violated their trust and resulted in significant losses to their investment accounts.”
Nichter purchased and managed securities on behalf of clients in and around central Indiana, including clients in Anderson, Pendleton, and Greenfield.
Beginning in October 2009, Nichter created false documents with forged client signatures requesting that funds be withdrawn from their investment accounts. The checks issued in response to these documents would then be forwarded to addresses to which Nichter had access. Nichter took custody of these checks, deposited them into his bank account and spent the money for his own benefit.
This case was investigated by the United States Secret Service.
According to Assistant U.S. Attorney Bradley P. Shepard who prosecuted the case for the government, Nichter also faces two years of supervised release after serving his sentence and must make full restitution.
Leader of Major Baltimore Drug Trafficking Organization Sentenced to 20 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced the leader of the Jenifer drug trafficking organization (Jenifer DTO), Kedrick Arnold Jenifer, a/k/a “Ricky Jenifer,” “James Howard Collier, Jr.” and “Rick,” age 44, of Bowie, Maryland, today to 20 years in prison, followed by 10 years of supervised release, for conspiring to distribute cocaine. Judge Bennett entered an order requiring Jenifer to forfeit: three properties in Baltimore and one in North Miami, Florida; $111,772.19 in cash; bank accounts worth over $149,000; seven vehicles, including a 2013 Rolls-Royce Ghost and a 2014 Ferrari 458 Italia; jewelry valued at more than $575,000; as well as a boat, guns and other luxury items.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Commissioner Kevin Davis of the Baltimore Police Department; and Chief James W. Johnson of the Baltimore County Police Department.
“Kedrick Jenifer lived large as a major Baltimore drug dealer, but now he will lose all of his toys and live for two decades in federal prison,” said U.S. Attorney Rod J. Rosenstein. “The money, cars, jewelry, real estate and businesses he accumulated with drug proceeds were forfeited to the government.”
According to his plea agreement and court documents, from September 2012 until his arrest in October 2014, Kedrick Jenifer was the head of the drug organization. He directed the collection and transportation of money from Baltimore to Houston, Texas. The Jenifer DTO would hide money in secret compartments in “courier vehicles” that were transported from Baltimore to Houston. Jenifer would then fly to Houston and obtain kilograms of cocaine from a source of supply. The cocaine was transported from Houston to Baltimore in the courier vehicles, and Jenifer would return to Baltimore via commercial air carrier.
According to court documents and information provided at today’s sentencing hearing, on September 27, 2012, co-defendant Brooke Lunn was operating a courier vehicle near Houston when the vehicle was stopped by the Texas State Police. John Moore was a passenger in the vehicle. Lunn consented to a search of the vehicle and law enforcement recovered approximately 30 kilograms of cocaine that were located in hidden compartments in the vehicle. Both Lunn and Moore were arrested and charged by Texas authorities. After being released on bond, Lunn and Moore returned to Maryland. On October 20, 2012, Moore suffered a fatal gunshot wound to the back of the head. Law enforcement agents believe that Moore’s homicide was the direct result of the cocaine seizure. Phone records reveal that John Moore was in contact with Jenifer prior to, the day of, and after the car stop.
In July 2013, a courier vehicle loaded on a car-carrier at Jenifer’s direction was intercepted in Arkansas. The vehicle contained approximately 23 kilograms of cocaine hidden in a secret compartment.
Between August 2013 and October 2014, Jenifer directed approximately 30 shipments of cocaine concealed in secret compartments in the courier vehicles. After a courier vehicle would return to Baltimore from Houston, Jenifer was seen operating the hidden compartments in the courier vehicle and supplying other members of the Jenifer DTO with cocaine at their distribution location at RCH Plaza in west Baltimore.
Jenifer and/or co-defendant Tyrone Allen also made approximately 16 trips to Woodbridge, Virginia to deliver kilograms of cocaine to co-defendant Thomas Simmons.
On October 9, 2014, approximately 27 kilograms of cocaine were seized from one of the Jenifer DTO’s courier vehicles.
Jenifer agreed that he was responsible for the distribution of no less than 450 kilograms of cocaine between August 2013 and October 2014.
According to court documents, Jenifer was a co-owner of Flavor Factory, LLC, and Rita’s Italian Ice, located at 2033 Eastern Avenue in Baltimore. Jenifer has also forfeited his interest in these businesses.
Nine co-conspirators have pleaded guilty and been sentenced. Andre Brewer, age 36, of Jessup, Maryland; Michael Williams, age 41; Brooke Renee Lunn, a/k/a “Brooke Thomas” and “Brooke Renee,” age 49; William Hegie, age 55; Kermit Clark, age 45; and Elroy Johnson, age 49, all of Baltimore; Tyrone Allen, age 44, of Bowie, Maryland; and Thomas Simmons, age 38, of Hampton, Virginia, were sentenced to between 10 and 16 years in prison.
United States Attorney Rod J. Rosenstein praised the DEA, IRS Criminal Investigation and Baltimore City and County Police Departments for their work in the investigation, and expressed his appreciation to the United States Attorney’s Offices for the Southern District of Texas and the Southern District of New York for their assistance. Mr. Rosenstein thanked Assistant United States Attorney John W. Sippel, Jr., who prosecuted this Organized Crime Drug Enforcement Task Force case.
Justice Department and City of Fort Worth, Texas, Settle Lawsuit Alleging Disability DiscriminationRead the Press Release
The Justice Department announced today that the city of Fort Worth, Texas, has agreed to settle a lawsuit alleging that Fort Worth discriminated against persons with disabilities when it refused to allow a group home for individuals recovering from drug and alcohol addiction to operate in a single family residential zone in the city.
The lawsuit, filed in April 2015, alleged that the city violated the Fair Housing Act when it issued multiple citations and fines against a four bedroom group home, known as Ebby’s place, in which residents who have successfully completed at least a 30-day drug or alcohol treatment program live together to reinforce and encourage their mutual commitment to recovery. After receiving the citations, Ebby’s Place requested a zoning variance that would allow it to operate, which the city council unanimously denied.
Under the terms of the agreement, which must still be approved by the U.S. District Court for the Northern District of Texas, Fort Worth will allow Ebby’s Place to operate with up to seven residents and will rescind all the citations it had previously issued against the home. Fort Worth will also pay $135,000 to Ebby’s Place in monetary damages and $10,000 to the United States as a civil penalty. As a part of the settlement, Fort Worth also adopted an ordinance establishing a process whereby persons may seek reasonable accommodations from the city’s zoning or land use laws and practices, where such accommodations may be necessary to afford persons with disabilities an equal opportunity to use and enjoy their housing.
The lawsuit arose as a result of a complaint filed with the U.S. Department of Housing and Urban Development (HUD) by Ben Patterson, who through Ebby’s Place LLC, owns and operates the group home. After conducting an investigation, HUD referred the matter to the Department of Justice. Ebby’s Place later intervened in the Justice Department’s lawsuit. Today’s agreement would also settle the lawsuit filed by Ebby’s Place.
“The Fair Housing Act and the Americans with Disabilities Act protect individuals with disabilities from housing discrimination, including discriminatory zoning practices,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We commend the city of Fort Worth for working with the Justice Department to reach an agreement that will safeguard the rights of persons with disabilities in our communities.”
“The city of Fort Worth has cooperated in this investigation from the beginning,” said U.S. Attorney John Parker of the Northern District of Texas. “There was never any doubt in my mind that the city leaders would work with the Department of Justice to achieve the right result, and they’ve done just that.”
Fighting illegal housing discrimination is a top priority of the Justice Department. The Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Title II of the Americans with Disabilities Act prohibits discrimination on the basis of disability by public entities. Visit www.usdoj.gov/crt for more information about the Civil Rights Division and the laws it enforces. Additional information about the Fair Housing Act is available at www.HUD.gov. Additional information about the Americans with Disabilities Act is available at www.ADA.gov.
Fort Worth Consent Decree
Judge Gives Allentown Man Long Prison Term for Sex TraffickingRead the Press Release
PHILADELPHIA - Corderro Cody, 28, of Allentown, PA, was sentenced today to 30 years in prison for running a sex trafficking operation, announced United States Attorney Zane David Memeger. Cody pleaded guilty on October 30, 2015, to conspiracy to commit sex trafficking by force, fraud or coercion, 12 counts of sex trafficking, one count of conspiracy to transport individuals across state lines for the purpose of prostitution, and one count of sex trafficking of a minor. In addition to the prison term, U.S. District Court Judge Edward G. Smith ordered 20 years of supervised release, and a $1,500 special assessment.
Since at least 2009 through May of 2014, Cody recruited women to work as prostitutes, referred to his prostitution business as the “program,” and advertised the women on Backpage.com. The women were sometimes driven to other states and forced to perform sexual acts. Cody recovered and kept most, if not all, of the money generated by the sexual acts, and used physical force in the form of rape and violent assaults, as well as extreme emotional manipulation, when the women did not adhere to the “program,” and to maintain the women performing commercial sexual acts. Cody forced one woman to work for him as a prostitute when she was just 17 years old.
“The sentence imposed today will ensure that this defendant is unable to subject other girls and women to the tortures that these victims endured,” said Memeger.
“Cody operated a vicious sex trafficking scheme, using brutal physical attacks and emotional abuse to compel his victims to continue selling their bodies for his profit,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Civil Rights Division remains fiercely committed to holding traffickers accountable for their reprehensible conduct, and to safeguarding the rights and dignity of survivors of this heinous crime.”
“Investigations like this highlight the collaborative efforts of the many law enforcements agencies involved in the aggressive fight against human trafficking,” said Homeland Security Investigations Acting Philadelphia Special Agent-in-Charge Jack P. Staton. “This sentence should serve as a warning to all individuals and criminal groups involved in the trafficking of minors and women that we are determined to investigate and prosecute to the fullest extent of the law all that are involved in this heinous crime.”
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations and the Allentown Police Department. It was prosecuted by Assistant United States Attorney Sherri A. Stephan, and Trial Attorney Anita Channapati of the Civil Rights Division of the Department of Justice.
Jamaica Plain Man Sentenced for Stealing from Social SecurityRead the Press Release
BOSTON – A Jamaica Plain man was sentenced today in U.S. District Court in Boston for stealing $70,811 in Social Security benefits.
Brian Sandiford, 59, was sentenced by U.S. District Court Judge Douglas P. Woodlock to one year of probation, including six months of home confinement, and ordered to pay a fine of $2,000 and restitution of $70,811 to the Social Security Administration, which he paid in full today. In November 2015, Sandiford pleaded guilty to stealing public money.
Sandiford’s father died in 2010, but the father’s monthly Social Security benefits continued to be directly deposited into a bank account held jointly by Sandiford and his father. Although he was not entitled to this money, Sandiford routinely transferred the Social Security money into his own bank account and then spent it. In total, from 2010 to 2014, Sandiford took $70,811 in Social Security funds to which he was not entitled.
This case was brought as part of an ongoing effort by the U.S. Attorney’s Office, in partnership with the Social Security Administration, to investigate and prosecute the posthumous fraud of Social Security benefits. In many of these cases, family members, knowing they are not entitled to government benefits, continue to withdraw and spend the funds after a relative has died. In the past year, the U.S. Attorney’s Office has prosecuted several similar cases involving a total of more than $1 million in stolen government money.
United States Attorney Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division, made the announcement today. The case was prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Illinois Man Sentenced for Defrauding Foreign Investor of $500,000Read the Press Release
ALEXANDRIA, Va. – Thomas A. Kopec, 48, of New Lenox, Illinois, was sentenced today to 25 months in prison for wire fraud for cheating a Panamanian investor out of $500,000. Kopec was also ordered to serve three years of supervised release and pay $500,000 in restitution.
Kopec pleaded guilty on Dec. 11, 2015. According to court documents, Kopec admitted to soliciting $500,000 from the victim for a purported investment vehicle for purchasing securities and acquiring a bank. Kopec took steps in pursuing the purported investment in order to lull the victim into thinking the investment was proceeding as planned. In truth, Kopec misappropriated the moneys and spent them on personal and other expenses at retail establishments including Best Buy, Wal-Mart, and the Apple Store. Kopec started the scheme in Illinois, but relocated it to the Eastern District of Virginia, and caused the issuance of interstate wires originating in the Eastern District of Virginia in order to obtain and misappropriate the victim’s money.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorney Kosta S. Stojilkovic prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-204.
Identity Thief Sentenced to 9 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Gurpinder Sandhu, 47, of Hercules, was sentenced today by United States District Judge Garland E. Burrell, Jr. to nine years in prison for possession of device-making equipment and aggravated identity theft, United States Attorney Benjamin B. Wagner announced.
According to court documents, in September 2014 law enforcement began investigating reports of numerous vehicles fraudulently purchased with stolen identities from car dealerships throughout the Northern and Eastern Districts of California. The investigation led to Sandhu’s residence, where law enforcement located three of the fraudulently obtained vehicles: a 2014 Nissan Rogue, a 2014 Dodge Challenger, and a Harley Davidson motorcycle.
Inside Sandhu’s residence, law enforcement agents found many counterfeit items, including credit cards and California driver licenses. Law enforcement agents also found device-making equipment to manufacture these counterfeit items. This equipment included an embossing machine, cameras, printers, scanners, materials and chemicals used to produce identification cards, state seals, and a blue backdrop on the wall to imitate a California Department of Motor Vehicles ID photo background. Agents also found documents containing the names of real people, such as rental agreements, Comcast bills and sales receipts.
Based on the fraudulent documents found in the apartment, law enforcement identified at least 50 victims of identity theft. Sandhu and a co-defendant, used these identities to fraudulently purchase vehicles from car dealerships and retail goods from commercial stores such as Macy’s.
Sandhu succeeded in getting at least seven vehicles in this manner. In addition to the three vehicles named above, Sandhu fraudulently obtained a 2013 Yamaha motorcycle, a 2010 Chevrolet Corvette, a 2013 Dodge Challenger and a 2013 Dodge Charger.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Highway Patrol. Special Assistant United States Attorney Josh F. Sigal prosecuted the case.
Sandhu was also ordered to pay $45,115 in restitution. He has remained in custody since his arrest on March 6, 2015. Charges remain pending against co-defendant Simone Aguilar, who is next scheduled to appear in court on April 8, 2016. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Husband and Wife Sentenced in Postal Insurance Theft SchemeRead the Press Release
DALLAS — A husband and wife from Fort Worth, Texas, have been sentenced for their roles in a postal insurance theft scheme they ran in north Texas, and elsewhere, announced U.S. Attorney John Parker of the Northern District of Texas.
Sabrina Bourbois, 32, was sentenced by U.S. District Judge Sidney A. Fitzwater to 21 months in federal prison in December 2015, following her guilty plea earlier in the year to one count of theft of government money, property or records. She has been in custody since her arrest in March 2015.
Today, her husband, Ricardo Bourbois, 45, was sentenced by Judge Fitzwater to serve 12 months in federal prison. He pleaded guilty in November 2015 to the same offense. The couple was also ordered to pay $138,982 in restitution, jointly and severally, to the U.S. Postal Service. Ricardo Bourbois must surrender to the Bureau of Prisons on April 19, 2016.
According to documents filed in the case and statements made in court, Ricardo Bourbois stole postal insurance from the U.S. Postal Service, and Sabrina Bourbois used this name and others, including Alicia Diver, Sabrina Kibbee, Sabrina Diver and Sabrina Kibbee-Diver to do the same by falsifying documents and opening post office boxes for both receive the benefits from the scheme. The scheme to defraud lasted more than three years.
The U.S. Postal Inspection Service and the U.S. Postal Service - Office of Inspector General investigated. Special Assistant U.S. Attorney Jennifer Bray was in charge of the prosecution.
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Houstonians Plead Guilty in $13 Million Health Care Fraud CaseRead the Press Release
HOUSTON – The leader and four others charged in a $13 million Medicare and Medicaid health care fraud case have entered guilty pleas for their respective roles, announced U.S. Attorney Kenneth Magidson.
Mkrtich “Mike” Yepremian, 58, of Houston, pleaded guilty to conspiracy to commit health care fraud and paying kickbacks to marketers of Medicare and Medicaid patients. Also pleading guilty today was Bompa Mbokoso Mompiere, 56, of Houston, who also pleaded to the conspiracy.
Over the last few weeks, three others have also been convicted - Mike Wilson, 47, Jermaine Doleman, 38, and Eric Johnson, 62, all of Houston. They pleaded guilty to the conspiracy and to committing health care fraud.
According to the factual basis in support of the plea, Yepremian ran several false clinics in Houston and Conroe. Yepremian paid marketers, including Wilson, Doleman and Johnson, to bring patients to the clinics for a battery of diagnostic tests and blood work, regardless of medical need. Yepremian paid the marketers approximately $100 for each patient brought to his clinics. In turn, the marketers paid the patients approximately $50 each.
Mompiere was an unlicensed foreign medical graduate who saw patients at Yepremian’s clinics. He also would go into the city and assist in drawing blood from Medicare and Medicaid patients at various home health businesses. Yepremian would bill Medicare and Medicaid for unnecessary blood work and would, in turn, get authorizations for home health care signed by physicians who worked at the clinics.
As a result of this scheme, Medicare and Medicaid were billed approximately $13 million and paid out approximately $9 million in false claims. Yepremian has also agreed to forfeit real estate and some commercial trucks as part of his plea agreement.
The statutory maximum penalty for a violation of the conspiracy statute or for health care fraud is up to 10 years in prison and a possible $250,000 maximum fine. If convicted of paying kickbacks, Yepremian faces an additional five years in prison and a $25,000 fine.
The charges are the result of the investigative efforts of the Texas Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services - Office of Inspector General (Office of Investigations) and the FBI. Special Assistant United States Attorney Suzanne Bradley and Trial Attorney Scott Armstrong are prosecuting the case.
Grand Jury Returns Indictment Charging Five with Meth, Heroin Trafficking in UtahRead the Press Release
SALT LAKE CITY – Four individuals are charged with trafficking drugs in Utah following an investigation by the DEA, the Davis Metro Narcotics Task Force, and the West Valley City Police Department. The drugs were transported from Los Angeles to Salt Lake City for distribution.
Charged in the seven-count indictment are Fausto Alejandro Galaviz-Gaxiola, age 21, Fernando Galaviz-Castro, age 22, Jesus Pina-Cantua, age 22, and Efrain Espinoza, age unknown. The defendants are citizens of Mexico living in West Valley City. The charges include conspiracy to distribute methamphetamine; conspiracy to distribute heroin; possession with intent to distribute methamphetamine; possession with intent to distribute heroin; and distribution of methamphetamine.
According to a complaint filed in the case, the DEA and the Davis County task force initiated a joint investigation targeting the drug trafficking activities of Galaviz-Gaxiola, Galaviz-Castro, and Espinoza in October 2015. As a part of the investigation task force officers made several under cover purchases of methamphetamine and heroin from the defendants.
A search warrant was executed Feb. 18, 2016, at a residence in West Valley City shared by Galaviz-Gaxiola, Galaviz-Castro, and Pina-Cantua. They also executed a search warrant on a vehicle used by the defendants. Agents recovered approximately 4.8 kilograms of heroin (street value of about $480,000), 2.1 kilograms of methamphetamine (street value of $126,000), and $103,764 at the home. About 615 grams of cocaine (street value of $61,500) was recovered during the search of the car, according to the complaint.
Agents also executed a search warrant on Espinoza’s residence in West Valley City and on a car he used. According to the complaint, agents located $8,000 in a sophisticated, electronically-operated compartment hidden on the front passenger side of his car.
The defendants, who were initially charged by complaint, had initial appearances in court following their arrests. They were arraigned on the indictment Thursday afternoon and entered pleas of not guilty to the charges. They will be in custody pending trial.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
The first six distribution counts of the indictment each carry potential 10-year mandatory minimum sentences. The seventh count of the indictment, distribution of methamphetamine, carries a potential 40 year sentence with a five-year mandatory minimum. The indictment also seeks the forfeiture of $111,764 in U.S. currency and two vehicles obtained or used as a part of the commission of the offenses.
Gasconade County Police Officer Indicted on Civil Rights ChargesRead the Press Release
St. Louis, MO – An indictment was unsealed earlier today charging former Gasconade County law enforcement officer Marty L. Rainey with multiple civil rights violations involving his sexual abuse of several women during his tenure in various law enforcement departments in Gasconade County, Missouri.
According to the indictment, Marty Rainey was triple-commissioned and employed by the Gasconade County Sheriff’s Office, the Hermann Police Department and the Rosebud Police Department as a law enforcement officer. Between June 2010 and March 2012, in his capacity as a law enforcement officer, Rainey committed acts of aggravated sexual abuse involving four women. Additionally, the indictment alleges that on August 31, 2012, Rainey enticed a minor under the age of 18 to engage in prostitution.
Rainey, Sullivan, MO, was indicted Wednesday by a federal grand jury on four felony counts of deprivation of rights under the color of law and one felony count of enticement of a minor to engage in commercial sex acts. He is expected to appear in federal court in St. Louis later this morning for his initial appearance.
If convicted, these charges carry a maximum penalty of life in prison and/or fines up to $250,000. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation and the Missouri State Highway Patrol, with the cooperation of the Gasconade County Sheriff’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Gainesville Woman Sentenced to Two Years for Social Security FraudRead the Press Release
GAINESVILLE, FLORIDA – Debra A. Scott, 57, of Gainesville, was sentenced today to two years in prison and ordered to pay $179,979 in restitution for theft of government property and aggravated identity theft. The sentence was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
During her guilty plea on September 2, 2015, Scott admitted that, after her mother’s death in January 1997, she continued to receive her mother’s Social Security Administration benefits checks at the home they shared. Scott forged her mother’s signature on the checks and deposited them into her own account. Between January 1997 and March 2014, Scott negotiated more than 200 stolen Social Security checks, totaling approximately $179,979.
This case resulted from investigations by the Social Security Administration - Office of Inspector General and the Alachua County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Herbert S. Lindsey.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Fourth Defendant Pleads Guilty in Native American Bones Trafficking CaseRead the Press Release
COLUMBUS, Ohio – A fourth defendant has pleaded guilty in the first criminal enforcement of the Native American Graves Protection and Repatriation Act in the Southern District of Ohio.
Toby Lee Thacker, 55, of Wellston, Ohio, pleaded guilty in U.S District Court today to violating the Act by engaging in the excavation and sale of the human remains of a Native American.
David E. Skeens, 39, and Brian K. Skeens, 38, both of Wellston, Ohio, each pleaded guilty in December 2015 to engaging in the excavation and sale of the Native American bones.
Mark M. Beatty, 56, of Wellston, Ohio, pleaded guilty in August 2015 to purchasing the remains.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, Jackson County Sheriff Tedd Frazier and Rick Perkins, Chief Ranger, National Park Service at Hopewell Culture National Historical Park, announced the plea entered into today before U.S. District Magistrate Judge Terence P. Kemp.
According to court documents, David and Brian Skeens and Thacker were observed digging in a rock shelter in Salt Creek Valley in Jackson County, Ohio. When they were approached, they ran off into the woods and left behind shovels, dirt sifters, buckets and trash. Investigators confirmed that they had unburied human remains. Beatty admitted to purchasing those remains.
An anthropologist confirmed that the human remains were consistent with Native Americans, specifically identifiable by cradle boarding, a cultural activity used only by Native American Indians in North America. The identity of the remains was also confirmed by an archeologist, who verified that rockshelters were used extensively for burials in Southern Ohio and specifically in Jackson County.
DNA testing concluded a direct connection to present day Native American Indians living in the United States today.
The remains will be transferred to the federally recognized tribes who have assisted with this case, and re-buried in Ohio at an undisclosed location and in private once all the court proceedings are completed.
U.S. Attorney Stewart commended the investigation by the Jackson County Sheriff’s Office and FBI and the participation from an archeologist from Wayne National Forest and researchers from Ohio University, The Ohio State University and Washington State University, as well as Assistant United States Attorneys J. Michael Marous and Brian Martinez, who are representing the United States in this case.
Fort Worth Man Sentenced to Statutory Maximum of 40 Years in Federal Prison on Methamphetamine ConvictionRead the Press Release
FORT WORTH, Texas — Christopher Michael Stewart, 40, was sentenced this morning by U.S. District Judge John McBryde to 480 months in federal prison, following his guilty plea in November 2015 to one count of possession with intent to distribute methamphetamine. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, on August 19, 2015, officers with the North Richland Hills Police Department stopped Stewart for committing several traffic violations; he was driving a Dodge pickup truck and was the sole occupant of the truck. After a drug detection canine alerted to the presence of narcotics, officers searched the vehicle and recovered approximately 1,157 grams of methamphetamine, a loaded Glock handgun, packaging equipment and approximately $17,600 in cash. The Glock was later confirmed stolen.
The Drug Enforcement Administration and the North Richland Hills Police Department investigated the case. Assistant U.S. Attorney Joshua Burgess was in charge of the prosecution.
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Former Ohio Music Instructor Pleads Guilty to Production of Child PornographyRead the Press Release
COLUMBUS, Ohio – Brian M. Sze, 35, of Seattle, pleaded guilty in U.S. District Court to production of child pornography.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Marlon V. Miller, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Franklin County Sheriff Zach Scott, Columbus Police Chief Kim Jacobs and members of the Franklin County Internet Crimes Against Children (ICAC) Task Force announced the plea entered into today before U.S. District Judge Algenon L. Marbley.
According to court documents, the investigation began in July 2015 after a tip was reported to ICAC, which indicated that Sze had engaged in sexually suggestive communications with a minor. The investigation revealed that Sze had also engaged in illicit sexual contact with a minor and caused recordings of the child engaged in sexual activity to be recorded.
Sze pleaded guilty to one count of production of child pornography, a crime punishable by a range of 15 to 30 years in prison.
“Sze’s actions are particularly heinous because he used his position as an educator to victimize a minor,” Assistant U.S. Attorney Heather A. Hill said.
"This case is particularly troubling due to the defendant's position of trust with young people," said Miller. "Some predators are under the false impression that the anonymity of cyberspace shields them from scrutiny by law enforcement. HSI remains committed to working with our law enforcement partners in the fight against those who sexually exploit children."
“The Franklin County ICAC Task Force works diligently on targeting those who prey on children,” Sheriff Zach Scott said. “We are committed to working collaboratively to bring child predators like Sze to justice. We do not and will not tolerate these crimes being committed in our community.”
The Franklin County ICAC Task Force is a multi-agency effort dedicated to the fight against computer facilitated crimes against children. The following agencies are members:
Franklin County Sheriff’s Office
Ohio ICAC
Grove City Police Department
Columbus Police Department
Grandview Heights Police Department
Westerville Police Department
Hilliard Police Department
Franklin County Prosecutor's Office
Homeland Security Investigations (HSI)
Ohio Attorney General’s Office (BCI)
The Ohio State University Police Department
Upper Arlington Police Department
Circleville Police Department
Pickaway County Sheriff’s Office
This case is being brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney's Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims.
U.S. Attorney Stewart commended the members of the ICAC Task Force for the cooperative investigation, and Assistant U.S. Attorney Heather A. Hill, who is representing the United States in this case.
Former Mount Vernon Police Officer Pleads Guilty to ExtortionRead the Press Release
COLUMBUS, Ohio – Matthew L. Dailey, age 45, of Howard, Ohio, pleaded guilty in U.S. District Court to Hobbs Act extortion under color of official right.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, David A. Grant, Acting Special Agent in Charge, Drug Enforcement Administration (DEA), Ohio Attorney General Mike DeWine and Mount Vernon Police Chief Roger A. Monroe, announced the plea entered into today before U.S. District Judge Algenon L. Marbley.
According to court documents, Dailey was employed as a Detective Sergeant with the Mount Vernon Police Department, who investigated general crimes, including narcotics crimes. In September of last year, Dailey asked an individual, who had served as an informant for Dailey for approximately seven years, to sell drugs for him.
Dailey provided the individual with marijuana, methamphetamine, bath salts, and ecstasy pills to sell and split the profits. A portion of the drugs were supplied from the Police Department’s property room, of which Dailey was the Evidence Custodian.
Investigators also observed Dailey meeting with a second individual, who sold Oxycodone pills to Dailey approximately five days a week for seven months.
Dailey was placed on administrative leave in September 2015. During an inventory of the property room thereafter, the Police Department discovered a kit used to teach drug awareness was missing crack and powder cocaine and ecstasy pills.
Dailey pleaded guilty on December 21, 2015. He also agreed to pay restitution to the Mount Vernon Police Department, forfeit weapons, and a ban on future employment in any law enforcement capacity.
Hobbs Act extortion under color of official right is a crime punishable by up to 20 years in prison.
U.S. Attorney Stewart commended the cooperative investigation by the FBI, DEA, Ohio Bureau of Criminal Investigation (BCI), and Mount Vernon Police Department, as well as Assistant United States Attorneys Jessica H. Kim and Douglas W. Squires, who are representing the United States in this case.
Former Deputy Pleads Guilty to Preparing Fraudulent Tax ReturnsRead the Press Release
Contact Person: T. DeWayne Pearson (803) 929-3000
Columbia, SC - United States Attorney Bill Nettles stated that former Richland County Sheriff’s Deputy Maribel Crespo, age 40, of Columbia, South Carolina, entered a guilty plea to presenting false claims to the United States in violation of Title 18, United States Code, Section 287. According to information presented during the plea hearing, Crespo prepared fraudulent tax returns for other former Richland County Sheriff’s Deputies by adding false and fictitious information to the returns. Crespo attached children’s information to the tax returns so that she could claim them as false dependents and artificially inflate the amount of the tax return. These children were typically citizen children of non-citizen Hispanics in the Columbia area. Crespo would facilitate the payment of part of the return to the parents of the dependent, some to herself and the remainder to the tax filer. Based on IRS calculations, Crespo caused $327,963 in loss to the Treasury based on her fraudulent returns.
Internal Revenue Special Agent in Charge Thomas J. Holloman III said, “IRS, Criminal Investigation takes seriously any attempts to steal taxpayer money through false claims for refunds; and certainly when those false claims are made by someone sworn to uphold the law.” Sentencing in the case has not yet been scheduled, but Crespo faces a maximum penalty of five years of imprisonment and a fine of $250,000. The case was investigated by Special Agents with the Internal Revenue Service (IRS) and the South Carolina Department of Revenue. The case was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.
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Florida Man Convicted of Robbing Regions Bank in ColumbusRead the Press Release
Byron McCollum, age 68, of Lake Worth, Florida, was convicted, following a four-day jury trial, on March 3, 2016, for the June 2, 2015 armed robbery of Regions Bank on Veterans Parkway in Columbus, announced Acting U.S. Attorney G.F. Peterman, III. The Honorable Clay D. Land, United States District Court Judge presided over the trial in Columbus.
Testimony at trial revealed that Mr. McCollum and Michael Lee Hall entered the bank on June 2, 2015 wearing masks, hats and gloves and brandishing handguns. Mr. Hall walked into the bank’s lobby and ordered a female employee to the floor. Mr. McCollum approached the bank counter and ordered a female customer to the floor. He then displayed a handgun and demanded a bank teller open the door to allow him access behind the bank counter.
Once behind the counter, Mr. McCollum emptied currency from the cash drawers into a backpack. The pair then drove off in a red Chevrolet Camaro. Further testimony revealed that Mr. McCollum had stolen the red Chevrolet Camaro from Trophy Ford in Forsyth, Georgia prior to the bank robbery. While the pair was still in the bank parking lot, dye packs exploded inside the backpack covering the money with dye. They then abandoned the Camaro and drove from Columbus to Macon in Mr. McCollum’s gray Cadillac with Mr. Hall driving and Mr. McCollum lying in the backseat with the handgun ready in case they were stopped by law enforcement. He claimed that he would shoot the officer as he passed the back window of the vehicle should that happen.
Sentencing is scheduled for July 6, 2016 at 9:30 am in Columbus. Mr. McCollum is facing a maximum sentence of life imprisonment. In addition to the June 2015 bank robbery, Mr. McCollum committed a previous bank robbery in Columbus in 1985.
Michael Lee Hall pled guilty to bank robbery and possession of a firearm in furtherance of a crime of violence on August 3, 2015. He was sentenced by Judge Land to serve 234 months in prison on November 18, 2015 for his part in the crime. He was also ordered to pay restitution to Regions Bank. He also had a prior conviction for armed bank robbery in Columbus in 1994.
“I want to commend the officers from the local and Federal agencies who apprehended these two career bank robbers and the prosecutors whose efforts will bring those careers to an end,” stated Acting U.S. Attorney Peterman.
The case was investigated by the Federal Bureau of Investigation, the Columbus Police Department, Bibb County Sheriff’s Office, Monroe County Sheriff’s Office, Crawford County Sheriff’s Office and Pinellas County, Florida Sheriff’s Office. Assistant United States Attorney Melvin E. Hyde, Jr. and Assistant United States Attorney Crawford Seals prosecuted the case on behalf of the Government.
Inquiries regarding this case should be directed to Pamela Lightsey, United States Attorney’s Office at (478) 621-2603.
First of Seven Defendants Who Operated Illegal Online Pharmacy Sentenced to PrisonRead the Press Release
A registered nurse from Florida is the first person to be sentenced to prison in connection with the illegal operation of an online pharmacy that distributed narcotics across the country, announced U.S. Attorney Annette L. Hayes. ALI LOVINS, 44, of Cooper City, Florida is a registered nurse and was the office manager for Discount Pharmacy. Today LOVINS was sentenced to three years in prison, three years of supervised release, 200 hours of community service, and will forfeit $313,360 in drug proceeds. LOVINS pleaded guilty in April 2015 to four felony counts: conspiracy to distribute controlled substances by means of the internet; conspiracy to distribute controlled substances; conspiracy to launder money; and conspiracy to introduce misbranded drugs into interstate commerce. At the sentencing hearing U.S. District Judge Richard A. Jones noted LOVINS was part of a conspiracy that distributed more than a million tablets of narcotic drugs, but noted that unlike a street drug dealer “you don’t have to be in the dark alleys… you don’t have to look in the sunken eyes of an addict… and there was no danger of the drug deal going bad.” Judge Jones noted that prescription drug addiction contributes to the “epidemic of heroin abuse in this community.”
“As a registered nurse this defendant played a key role in the scheme,” said U.S. Attorney Annette L. Hayes. “She lied about the online business in order to keep the drugs flowing. As a nurse she knew the drugs she was selling were feeding addictions, destroying families and contributing to the opioid epidemic we are dealing with today.”
The internet pharmacy distributed drugs to some 200 customers in Washington State between 2009 and 2012. The pharmacy shipped hundreds of thousands of pills of hydrocodone, phentermine, alprazolam (Xanax) and codeine (Tylenol 4) to people across the country who did not have valid prescriptions for the narcotics. The conspiracy brought in more than $9 million in revenue from the sale of pills during the three year scheme. The pharmacy operated four internet sites through which they solicited customers and allowed customers in Washington State to order drugs. According to the indictment, the conspiracy would continue to refill prescriptions even if no valid prescription existed. In some instances the conspirators simply looked for a physician in the same geographic area as the customer, with a similar sounding name and filled the prescription using the physician’s DEA number without the physician’s knowledge. The pharmacy charged as much as ten times the usual price for the medications.
The conspirators laundered the proceeds of their sales through a brick-and-mortar pharmacy in Florida called Discount Pharmacy of Pines. In June 2012, the DEA seized the conspiracy’s websites, computers, and drug inventory.
“This individual blatantly abused her professional status as a registered nurse by facilitating the fraudulent and reckless prescription of highly addictive pharmaceuticals,” said DEA Special Agent in Charge Keith Weis.
All but one of the defendants who were indicted in May 2014 have pleaded guilty and are awaiting sentencing:
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The originator of the scheme, JUAN GALLINAL, 48, of Pembroke Pines, Florida is a former police officer from Virginia.He is scheduled for sentencing in October 2016.
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JORDAN TRUXELL, 26, of Davie, Florida served as the registered agent for Discount Pharmacy dba frontierpharmacies.com. He is scheduled for sentencing in May 6, 2016.
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THOMAS BROOKE, 54, of Cooper City, Florida was the bookkeeper for Discount Pharmacy. He is scheduled for sentencing on March 18, 2016.
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CRAIG GREER, 43, of Hollywood, Florida, a former police officer, worked to promote the internet pharmacy scheme. He is scheduled for sentencing on April 8, 2016.
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KEVIN KOGAN, 48, of Cedar Park, Texas, set up the websites and servers for the online pharmacy, and attempted to hide the conspiracies databases from investigators. He is scheduled for sentencing April 8, 2016.
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JERRY DELMAN, 83, of Miami, Florida, a pharmacist who ostensibly oversaw the prescriptions going out the door to customers is being evaluated for a medical condition that could impact his ability to participate in a trial.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The case was investigated by the Portland Tactical Diversion Squad which is comprised of the Drug Enforcement Administration (DEA) and the Portland Police Bureau. Substantial investigative assistance was provided by the Food and Drug and Administration (FDA) – Florida, and DEA Miami Field Division.
The case is being prosecuted by Assistant United States Attorneys Mike Lang, Francis Franze-Nakamura and Brian Werner.
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Final Defendant in Wentzville Pawn Store Burglarly SentencedRead the Press Release
St. Louis, MO – The final defendant involved in the October 16, 2014, theft of firearms from Allstar Pawn in Wentzville, Missouri, was sentenced earlier today. Eugene Davis, St. Louis City, was sentenced to 87 months in prison by United States District Judge Catherine D. Perry. Co-defendants Keenan Thomas and Brandon Foster were sentenced to 188 months and 144 months, respectively last fall.
According to statements made in court, Brandon Foster, Keenan Thomas and Eugene Davis broke into Allstar Pawn at 4:15 a.m. October 16th and stole 33 firearms -- 27 handguns and 6 rifles. On October 17, 2014, ATF attempted to arrest Foster and Thomas using three vehicles. Rather than backing out, Thomas drove forward on the grass, turning right in an attempt to elude the agents. He struck one of the ATF vehicles and then proceeded to back up almost striking an agent. After one shot was fired by an agent, Thomas stopped his car. Upon their arrest, agents recovered a Springfield Armory 9mm pistol equipped with an extended 33-round magazine on the floorboard directly under Foster. Foster admits the theft and possession of the 33 firearms from All Star and the purchasing of the ammunition and magazine from Cabela’s.
This was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant United States Attorney Tom Mehan handled the case for the U.S. Attorney’s Office.
Federal, State and Local Law Enforcement Agencies Announce Takedown of Marijuana and Cocaine DistributionRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, A.D. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office, and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, (PBSO) announce the filing of federal charges against 9 defendants for their alleged participation in conspiracies to distribute controlled substances, specifically marijuana and cocaine, in and around Palm Beach County. The defendants have been charged in a single indictment in the matter of United States v. Herbert Grant, et. al., 16-CR-80030-Marra.
The federal indictment charges Herbert Grant, a/k/a “Earl Fleming,” a/k/a “Devon Breen,” a/k/a/ “Robert Breen,” a/k/a “Earl Flinn,” a/k/a “Dwayne,” 36, of Boynton Beach, Ricardo Simpson, a/k/a “Radio,” a/k/a “Ricky,” a/k/a “Tippa,” 39, of Boynton Beach, Gavin McLaren, 32, of West Palm Beach, Marvin Belton, a/k/a “Trinni,” a/k/a “Damian Henry,” 45, of Los Angeles, California, and Rohando Morris, a/k/a “Tampa Man,” 36, of Bradenton, for their alleged participation in a marijuana distribution conspiracy. The indictment also charges Grant, McLaren, Ricardo Mills, a/k/a “Tuggy,” 35, of Lauderhill, Lorenzo Walker, 34, of Royal Palm Beach, Erick Morgan, a/k/a “E,” 37, Riviera Beach, and Sheldon Ralph Turner, 34, of West Palm Beach for their alleged participation in a cocaine distribution conspiracy.
The indictment alleges that Grant, Simpson, McLaren, Belton, and Morris conspired to distribute marijuana from as early as July 2014 and continuing to March 2015, in Palm Beach County, in the Southern District of Florida, and other locations, and that Grant, McLaren, Mills, Walker, Morgan, and Turner conspired to distribute cocaine from as early as January of 2015 and continuing to April 28, 2015, in Palm Beach County and other locations, both conspiracies were committed in violation of Title 21, United States Code, Sections 841(a)(1) and 846.
In addition to the conspiracy charges, a number of defendants were also indicted for possession with intent to distribute marijuana, in various amounts, up to 100 kilograms or more, and cocaine, in various amounts, up to five hundred grams or more, in violation of Title 21, United States Code, Section 841(a)(1).
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Herbert Grant was charged with possession with intent to distribute less than fifty kilograms of marijuana on October 25, December 8, and December 8-10 of 2014, and 50 kilograms or more of marijuana on December 7, 2014. Grant was also charged with possession with intent to distribute 500 grams or more of cocaine on February 25, 2015, and less than 500 grams of cocaine on March 3, 2015 and April 28, 2015.
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Rohando Morris was charged with possession with intent to distribute 50 kilograms or more of marijuana on December 7, 2014.
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Ricardo Simpson was charged with possession with intent to distribute 50 kilograms or more of marijuana on December 7, 2014, and less than 50 kilograms of marijuana on December 8, 2014.
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Gavin McLaren was charged with attempted possession with intent to distribute 50 kilograms or more of marijuana on December 7, 2015. McLaren was also charged with possession with intent to distribute 500 grams or more of cocaine on February 25, 2015.
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Marvin Belton was charged with possession with intent to distribute marijuana from December 8, 2014 through December 10, 2014.
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Sheldon Ralph Turner was charged with possession with intent to distribute 500 grams or more of cocaine on February 25, 2015.
During the course of the investigation, law enforcement seized a significant amount of marijuana and cocaine.
This case was the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
The federal indictment is being prosecuted by Assistant U.S. Attorney Brandy Brentari Galler.
If convicted in federal court, the defendants face the following possible statutory sentences: a mandatory minimum of five years and up to forty years in prison for the conspiracy to distribute more than 100 kilograms of marijuana and/or 500 grams or more of cocaine; twenty years in prison for the conspiracy to distribute and/or possession with intent to distribute 50 kilograms or more of marijuana and/or less than 500 grams of cocaine; and up to five years in prison for the conspiracy to distribute and/or possession with intent to distribute less than 50 kilograms of marijuana.
Mr. Ferrer commended the collaborative efforts of the OCDETF law enforcement agencies that assisted with this multi-faceted investigation, including the DEA, Palm Beach County Sheriff’s Office Narcotics Task Force and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI).
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov
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Federal Jury Convicts Dallas Anesthesiologist on Health Care Fraud Offenses Involving Approximately $10 Million in Fraudulent BillingsRead the Press Release
DALLAS — Following a four-day trial before U.S. District Judge Reed C. O’Connor and approximately three hours of deliberation, a federal jury has convicted Dr. Richard Ferdinand Toussaint, Jr., a licensed anesthesiologist, on all counts of a superseding indictment charging seven counts of health care fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
Toussaint faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine on each of the seven counts; a sentencing date was not set. Restitution is also mandatory under the law. In addition, the indictment includes a forfeiture allegation that would require Toussaint to forfeit any property, real or personal, derived from proceeds traceable to the offense.
Toussaint, 58, provided anesthesia services personally and through a company he founded, Ascendant Anesthesia. From approximately 2009-2010, Toussaint practiced medicine at several Dallas hospitals, including Forest Park Medical Center located on North Central Expressway and Doctors Hospital at White Rock Lake, located on North Buckner Boulevard. Toussaint founded and held a substantial ownership interest in Forest Park Medical Center.
The government presented evidence that during this time, Toussaint ran a scheme to defraud Blue Cross Blue Shield of Texas (BCBS), United Healthcare (UHC), the Federal Employees Health Benefits Program (FEHBP), Aetna, Cigna, Humana and others by submitting, or causing to be submitted, false and fraudulent claims for personally performing medical direction of anesthesia services for certified registered nurse anesthetists (CRNAs). Toussaint falsely represented he was “present for” these services when: 1) he was under anesthesia undergoing surgery himself; 2) he was flying on his private jet; 3) he was in another state; and 4) he was at another hospital several miles away. For example, Toussaint submitted or caused to be submitted several claims representing he was present for and medically directing six patients at two different hospitals and was medically directing two patients while under anesthesia himself.
In addition, the government presented evidence that Toussaint also inflated the amount of time the procedures took and pre-signed patients’ medical records representing the services were provided before the procedures even took place. In addition to personally creating false medical records and inflating anesthesia procedure time, Toussaint directed others to do the same, representing he was present for procedures when he knew he was not.
As part of his approximate 18-month-long fraud scheme, according to the government, Toussaint fraudulently billed health care benefit programs approximately $10 million.
The case was investigated by the FBI, the U.S. Department of Labor OIG, the U.S. Department of Labor Employee Benefits Security Administration, the U.S. Postal Service OIG, the U.S. Department of Defense, OIG, Defense Criminal Investigative Service, the U.S. Office of Personnel Management OIG, the U.S. Department of Health and Human Services, the Food and Drug Administration, and Internal Revenue Service Criminal Investigation Unit. Assistant U.S. Attorneys Andrew Wirmani and Kate Pfeifle prosecuted the case. Assistant U.S. Attorney Mark Tindall is handling the forfeiture issues.
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El Paso Man Sentenced to 20 Years in Federal Prison for Receipt and Distribution of Child PornographyRead the Press Release
In El Paso today, 35-year-old David Aaron Diaz was sentenced to 20 years in federal prison for receipt and distribution of child pornography announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.
In addition to the prison term, Senior United States District Judge David Briones ordered that Diaz be placed on supervised release for ten years after completing his prison term.
On September 15, 2015, Diaz pleaded guilty to one count of receipt and distribution of child pornography. By pleading guilty, Diaz admitted that he received and was in possession of pictures containing images of the sexual exploitation of children. Diaz had over 130,000 files containing child pornography in his possession.
Diaz has remained in federal custody since his arrest by HSI agents on April 10, 2015.
"This sentence serves as a reminder of the gravity of this crime," said Waldemar Rodriguez, Special Agent in Charge of HSI - El Paso. "It’s also a testament to the dedicated HSI special agents who aggressively investigate these pedophiles, bring them out of the shadows, and ensure they receive the punishment they deserve.”
This case was investigated by the Immigration & Customs Enforcement (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Ian Hanna prosecuted this case on behalf of the government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.