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29 February 2016
Leader of PA to WV heroin trafficking network sentenced to nearly 11 years in prisonRead the Press Release
WHEELING, WEST VIRGINIA – Christopher T. Gyorko, 31, of Pittsburgh, Pennsylvania, was sentenced today to 130 months in prison for orchestrating a multi-state heroin trafficking operation, United States Attorney William J. Ihlenfeld, II, announced.
Gyorko coordinated and managed a drug trafficking operation designed to transport heroin across state lines from Pittsburgh, Pennsylvania into Ohio and Marshall Counties in West Virginia, as well as locations in Ohio. Authorities disrupted the heroin trafficking scheme in June 2015 when Gyorko, along with five other individuals, were charged in an 18-count federal indictment. One additional defendant was charged in federal court by criminal Information. Six additional defendants were charged in state court in West Virginia.
Gyorko pled guilty in November 2015 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin.” As part of the sentenced imposed today, Gyorko was also ordered to forfeit his interest in a 2007 Chrysler 300M vehicle.
Assistant U.S. Attorney Stephen Vogrin prosecuted the case on behalf of the government. The Marshall County Drug and Violent Crime Task Force, a HIDTA-funded initiative, and the Drug Enforcement Administration investigated.
U.S. District Judge John Preston Bailey presided.
Justice Department Settles Housing Discrimination Lawsuit Against Owner of North Fort Myers, Florida, Mobile Home and Recreational Vehicle ParkRead the Press Release
The Justice Department announced today that Thomas Mere, the owner and operator of Mere’s Mobile Home and Recreational Vehicle Park in North Fort Myers, Florida, has agreed to pay $40,000 to resolve allegations that he discriminated against African Americans in violation of the Fair Housing Act. The settlement, which is in the form of a consent order, must still be approved by the U.S. District Court for the Middle District of Florida.
The government’s complaint, also filed today, alleges that the defendant falsely told African Americans that no mobile homes, recreational vehicles or recreational vehicle lots were immediately available for rent, but told similarly-situated white persons that they were, in fact, available for rent. According to the complaint, the defendant encouraged prospective white renters to consider residing at Mere’s Park and discouraged African Americans from residing there by, for example, referring African Americans to another mobile home and RV park, making discouraging comments about units that were available for rent and failing to provide African Americans complete and accurate information about available units and lots. The lawsuit is based on the results of testing conducted by the department’s Fair Housing Testing Program, in which individuals pose as renters to gather information about possible discriminatory practices.
“Owners of rental properties cannot pick and choose residents based on race or color,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Justice Department will continue to hold owners who violate the law accountable for their discriminatory conduct.”
“All citizens and their families should be free to choose where they want to live without fear of discrimination,” said U.S. Attorney A. Lee Bentley III of the Middle District of Florida. “Our office is committed to eradicating all forms of housing discrimination in the Middle District of Florida.”
Under the settlement, the defendant will establish a settlement fund of $30,000 to compensate victims of his discriminatory practices and pay a civil penalty of $10,000 to the United States. The agreement also requires that the defendant implement nondiscriminatory application and rental procedures at the park, undergo fair-housing training and provide periodic reports to the department.
Individuals who have information about, or who believe they may have been discriminated against at Mere’s Park, located at 1555 North Tamiami Trail, 1051 North Tamiami Trail and 1699 Ixora Drive in North Fort Myers, should contact the Justice Department toll-free at 1-800-896-7743, option 96, or by email at [email protected]. The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt.
Mere Complaint and Consent Order
Justice Department Settles Housing Discrimination Lawsuit Against Owner of North Fort Myers Mobile Home and Recreational Vehicle ParkRead the Press Release
Tampa, FL – The Justice Department announced today that Thomas Mere, the owner and operator of Mere’s Mobile Home and Recreational Vehicle Park in North Fort Myers, Florida, has agreed to pay $40,000 to resolve allegations that he discriminated against African Americans in violation of the Fair Housing Act. The settlement, which is in the form of a consent order, must still be approved by the U.S. District Court for the Middle District of Florida.
The government’s complaint, also filed today, alleges that the defendant falsely told African Americans that no mobile homes, recreational vehicles or recreational vehicle lots were immediately available for rent, but told similarly-situated white persons that they were, in fact, available for rent. According to the complaint, the defendant encouraged prospective white renters to consider residing at Mere’s Park and discouraged African Americans from residing there by, for example, referring African Americans to another mobile home and RV park, making discouraging comments about units that were available for rent and failing to provide African Americans complete and accurate information about available units and lots. The lawsuit is based on the results of testing conducted by the department’s Fair Housing Testing Program, in which individuals pose as renters to gather information about possible discriminatory practices.
“All citizens and their families should be free to choose where they want to live without fear of discrimination,” said U.S. Attorney A. Lee Bentley III of the Middle District of Florida. “Our office is committed to eradicating all forms of housing discrimination in the Middle District of Florida.”
“Owners of rental properties cannot pick and choose residents based on race or color,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Justice Department will continue to hold owners who violate the law accountable for their discriminatory conduct.”
Under the settlement, the defendant will establish a settlement fund of $30,000 to compensate victims of his discriminatory practices and pay a civil penalty of $10,000 to the United States. The agreement also requires that the defendant implement nondiscriminatory application and rental procedures at the park, undergo fair-housing training and provide periodic reports to the department.
Individuals who have information about, or who believe they may have been discriminated against at Mere’s Park, located at 1555 North Tamiami Trail, 1051 North Tamiami Trail and 1699 Ixora Drive in North Fort Myers, should contact the Justice Department toll-free at 1-800-896-7743, option 96, or by email at [email protected]. The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt.
Indiana Man Pleads Guilty to Federal Narcotics Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Rashad Travon Woods, 28, of Indianapolis, Ind., pleaded guilty today to a methamphetamine trafficking charge in federal court in Albuquerque, N.M. Under the terms of his plea agreement, Woods will be sentenced to 132 months in federal prison followed by a term of supervised release to be determined by the court.
Woods was arrested on a criminal complaint charging him with a methamphetamine trafficking offense after the DEA seized 2.4 kilograms (5.28 pounds) of methamphetamine from him during an interdiction investigation at the Amtrak Train Station in Albuquerque on Oct. 30, 2015. The methamphetamine was concealed in clothes in Woods’ backpack. Woods was indicted on the same charge on Nov. 17, 2015.
During today’s proceedings, Woods pled guilty to the indictment and admitted that on Oct. 30, 2015, in Bernalillo County, N.M., he was in possession of 2.40 gross kilograms of methamphetamine while traveling through Albuquerque. Woods remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by Albuquerque office of DEA and is being prosecuted by Assistant U.S. Attorney Edward Han.
Hillsboro Man Sentenced on Federal Firearm ChargesRead the Press Release
WICHITA, KAN. – A Hillsboro man was sentenced Monday to 180 months in federal prison on firearms charges, U.S. Attorney Barry Grissom said.
David G. Nicholas, Jr., 45, Hillsboro, Kan., was convicted on three counts of unlawful possession of a firearm following a felony conviction.
During trial, prosecutors presented evidence that Nicholas was a parole absconder in October 2013 when the U.S. Marshals Service arrested him in Marion County, Kan. At the time, he possessed a .22-caliber handgun and a .30-06 caliber rifle and ammunition.
Grissom commended the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Jason Hart for their work on the case.
Four Teenagers Sentenced to Prison Terms for Series of Armed Robberies and CarjackingsRead the Press Release
WASHINGTON – Four members of a violent crew, ages 16 through 18 and all from Washington, D.C., have been sentenced to prison terms on charges stemming from a series of armed robberies and carjackings that occurred in April 2015, U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD), announced today.
Between April 5 and April 30, 2015, the defendants engaged in a conspiracy to commit armed robberies and carjackings. The criminal activities included armed robberies throughout the First, Fourth, Fifth, Sixth, and Seventh Police Districts, as well as in Montgomery County and Prince George’s County, Maryland. The defendants typically targeted convenience stores and taxicab drivers, wore masks and similar clothing, and used stolen cars to commit their crimes.
All told, the crimes included six robberies of various 7-Eleven stores in the District of Columbia and District Heights, Md.; the robbery of a restaurant in Northeast Washington; one armed carjacking in the District of Columbia and another in Temple Hills, Md.; two armed robberies of taxi drivers in the District of Columbia; and two high-speed chases throughout the District of Columbia and Maryland.
Through an extensive law enforcement investigation, the defendants were identified and taken into custody. On June 15, 2015, a grand jury returned a 24-count indictment. All four defendants pled guilty in the Superior Court of the District of Columbia in September 2015.
The Honorable Anita Josey-Herring sentenced the defendants on Feb. 26, 2016.
Kraig Brown, 17, was sentenced to 12 years in prison on two counts of armed robbery, one count of robbery, and two counts of unauthorized use of a vehicle to facilitate a crime of violence. The Court suspended two years of Brown’s prison sentence on the condition that he completes a period of supervision.
Dayquan Gore, 18, was sentenced to 12 years in prison on one count of armed robbery, two counts of robbery, and one count of unauthorized use of a vehicle to facilitate a crime of violence. The Court suspended two years of Gore’s prison sentence on the condition that he completes a period of supervision.
Deangelo Johnson, 16, was sentenced to an 8 ½-year prison term on two counts of armed robbery and two counts of unauthorized use of a vehicle to facilitate a crime of violence.
Davon Sullivan, 18, was sentenced to seven years in prison on one count of armed robbery and one count of unauthorized use of a vehicle to facilitate a crime of violence. The Court suspended three years of the prison time on the condition that Sullivan successfully completes a period of supervision.
All defendants were under 18 at the time they committed the crimes, and were charged as adults given the serious nature of their crimes.
At a three-hour sentencing hearing, Judge Josey-Herring heard tearful statements from the victims, including one who had suffered post-traumatic stress after being held up by the defendants. She stated that the defendants either lacked “empath[y]” or were “desperate or greedy.” Ultimately, she declared, they were “victims of [their] own foolishness and bravado.”
As part of their plea agreements, the defendants admitted participating in various crimes, including these incidents:
- Armed Robbery of Senior Citizen/Taxicab Driver, April 7, 2015: Brown, Johnson, and Gore pled guilty to crimes arising out of the armed robbery of a taxicab driver. On April 7, 2015, at approximately 10:10 p.m., in the 3500 block of Park Place NW, Brown, Johnson, and Gore were operating a Ford Fusion, which had been stolen two days earlier during a carjacking in Temple Hills, Md. They pulled up on the taxicab driver, who is a senior citizen, and approached him wearing face masks and armed with a black firearm or imitation. They trapped the victim, and he fell over trying to escape. Brown grabbed the victim’s Samsung tablet from him. The defendants all fled in the waiting Ford Fusion, which crashed into another vehicle 10 minutes later at Fifth and Florida Avenues NE. The defendants all fled on foot.
-Armed Robbery of 7-Eleven, April 21, 2015: Brown and Gore pled guilty to crimes arising out of the armed robbery of a 7-Eleven in the 4400 block of Benning Road NE. On April 21, 2015, in the early morning hours, Brown and Gore, along with a third individual, entered the store. Gore jumped over the counter and demanded that the store clerks open the cash registers. He pointed a black pistol or imitation gun at one of the clerks. The three robbers stole money, cigarettes, and cigarillos, fled the store, and were immediately picked up by a waiting, dark-colored, four-door sedan.
- Armed Carjacking of a Newspaper Delivery Man, April 21, 2015: Gore pled guilty to crimes arising from an armed carjacking that also occurred on April 21, 2015, at 4:07 a.m., minutes after the 7-Eleven armed robbery, in the 1900 block of R Street SE. The dark-colored, four-door sedan containing the perpetrators pulled onto the block and stopped near an idling tan Hyundai Santa Fe. The owner of the Santa Fe was delivering the morning newspaper to houses on the street and had stepped away to deliver some of the papers. One individual got out of the four-door sedan and attempted to enter the Hyundai Santa Fe. The victim saw this, and immediately ran back over to the car, grabbed the perpetrator and punched him in the face.
Thereafter, another individual exited the sedan and pointed a pistol at the victim. The victim ran and ducked for cover. All of the perpetrators fled the scene, some in the sedan and some in the Santa Fe. The stolen Hyundai Santa Fe was then used by the defendants to commit other armed robberies and eventually led police on a high speed chase throughout Washington, D.C. and into Prince George’s County, Md., during which the Santa Fe was crashed and abandoned. Gore was arrested the same day.
- Armed Robbery of 7-Eleven, April 30, 2015: Brown, Johnson, and Sullivan pled guilty to the armed robbery of another 7-Eleven, this one in the 300 block of Hawaii Avenue NE. On April 30, 2015, at approximately 2:40 a.m., the defendants arrived at the 7-Eleven in a black Chrysler 300, which had been stolen two days earlier during an armed robbery of yet another 7-Eleven store in Prince George’s County, Md. The defendants entered the convenience store wearing black face masks. Brown trained a silver pistol or imitation on the store clerks, while Johnson and Sullivan jumped over the counter, took money out of the cash register, and stole cigarettes and cigarillos. All three fled into the waiting black Chrysler 300.
- Armed Robbery of 7-Eleven, April 30, 2015: Brown, Johnson, and Sullivan pled guilty to crimes arising out of a second armed robbery on April 30, 2015 – this time at the 7-Eleven in the 1900 block of Rhode Island Avenue NE. At 2:55 a.m., the defendants, wearing identical clothes and face masks, entered the store armed with the same silver pistol or imitation. Brown again pointed a silver pistol at the store clerk and demanded he open the cash register. Johnson jumped over the counter and emptied the contents of the cash register. Sullivan first robbed a customer, and then jumped the counter and grabbed multiple packs of Newport cigarettes. All three fled the scene in the black Chrysler 300.
Later in the day on April 30, Brown and Johnson were in the Chrysler 300 when it led police on a high-speed chase throughout Washington, D.C. and Maryland. Brown was driving and eventually crashed the car, causing serious damage.
Gore was arrested on April 21, 2015. Brown and Johnson were arrested on May 1, 2015.Sullivan was arrested on June 7, 2015. They have been in custody ever since. As part of the plea agreements, the government dismissed charges against the defendants involving the other crimes charged in the indictment. The investigation into other suspects is ongoing.
In announcing the sentences, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Chief Lanier praised the work of the officers, detectives and crime scene technicians who worked on the case for the MPD. They also expressed appreciation for the efforts of the Violent Crime Task Force of the FBI’s Washington Field Office, which co-led the investigation, as well as the Montgomery County and Prince George’s County police departments, which provided valuable assistance. Finally, they commended the efforts of those who are handling the case for the U.S. Attorney’s Office, including Assistant U.S. Attorneys Karen P. Seifert and Luke M. Jones, who are prosecuting the matter.
Former President of Maryland Lawn and Garden Supply Company Sentenced to Prison for Diverting More than $187,000 in Company FundsRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Malcomb C. Cork, age 55, of South Carolina today to 15 months in prison, followed by two years of supervised release, for causing more than $187,000 to be diverted from his employer’s bank account.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation.
According to his plea agreement, from 2004 until mid-2012, Cork was the President of a company headquartered in Baltimore, that distributed lawn and garden supplies. Under the terms of his contract with the company, Cork also was permitted to operate a business he established called Medical Solutions, Inc. (MSI). MSI executed a licensing agreement with Chemence LLC, a company that manufactured and distributed products, including a medical grade adhesive. Under the agreement, MSI was required to pay Chemence $187,500 by July 1, 2011. On that date, Cork wrote a check to Chemence for $187,500 drawn on his investment account, which was returned due to insufficient funds.
Cork admitted that on July 15, 2011, he directed subordinates to transfer $187,500 from the lawn and garden supply company’s operating account to an account in the name of Chemence LLC. When the Chief Financial Officer (CFO) for the company, who was on vacation at the time of the funds transfer, returned and asked about the expenditure, Cork told the CFO that the funds were transferred to a trade show vendor with which the company was doing business. Cork advised the CFO that he would obtain an invoice in support of the money transfer. Despite repeated requests from the CFO, Cork never supplied an invoice to support the charge. Eventually the company discovered that the payment was unrelated to its business and attempted – unsuccessfully – to recover the money. Cork admitted that he knew he was not authorized to direct the funds transfer, but did so anyway for his own benefit.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys P. Michael Cunningham and Aaron S. J. Zelinsky, who prosecuted the case.
Former Owner of Internet Sports Memorabilia Businesses Pleads Guilty to $2.5 Million Fraud SchemeRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former owner of a group of internet sports memorabilia businesses pleaded guilty before United States District Court Judge John E. Jones, III, in Harrisburg, to a $2.5 million dollar fraud scheme.
The Criminal Information was filed in January 2016 pursuant to a plea agreement entered into between the United States and Shores. The agreement, which is subject to the approval by the court, includes joint recommendations relating to loss amounts, forfeiture allegations, and an agreement to pay restitution as determined by the court. Judge Jones ordered a presentence investigation to be completed, and no sentencing date has been scheduled.
According to United States Attorney Peter Smith, Joshua Aaron Shores, age 41, of Bel Air, Maryland and also of Ocean City, Maryland, pleaded guilty to Wire Fraud based upon Shores’ five-year scheme, between 2008 and 2013, to obtain money and property by dealing in counterfeit and fraudulent sports memorabilia. Shores created, owned, and operated internet businesses under the names of Dealakhan, LLC, Stadium Authentics, Autograph Showcase, Sunset Beach, End Game Sports, Authenticgraph, and others with facilities in York County, Pennsylvania and in Maryland, and used the businesses to traffic in counterfeit and fraudulent sports memorabilia.
Shores represented addresses of mailbox receiving services to customers as his business address, created and registered PayPal and Amazon.com accounts in his name and in the names of others to receive payments from customers, purchased counterfeit sports jerseys in bulk from China and affixed fraudulent autographs to them representing them to be authentic autographs of well-known athletes and sports figures, and also using fake certificates of authenticity. According to the Criminal Information, Shores unlawfully obtained approximately $2.5 million dollars from buyers of the fraudulent items.
The Criminal Information also seeks forfeiture of real property located in Ocean City, Maryland, U.S. currency in the approximate amount of $140,000, and an additional amount of $26,000 in proceeds related to a Harley-Davidson motorcycle and a sports utility vehicle. The government will also seek restitution for victims of the fraud scheme.
The investigation was conducted by the Federal Bureau of Investigation and Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Michelle Olshefski.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The charge of Wire Fraud is punishable by up to 20 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former North Randall police officer sentenced to five years in prison for selling firearms to felonsRead the Press Release
A former police officer was sentenced to more than five years in prison for illegally selling firearms to people he knew were felons, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Kevin R. Lumpkin, 29, of North Olmsted, was convicted last year of selling a Hi-Point .45-caliber rifle and a Ruger .380-caliber pistol on different occasions to people he knew were convicted of felonies and therefore forbidden from possessing a firearm. These sales took place between 2011 and 2013, when Lumpkin was a North Randall police officer, according to trial testimony.
This case is being prosecuted by Assistant U.S. Attorneys M. Kendra Klump and Edward Feran following an investigation by the FBI.
Former Davenport Tax Preparer Pleads Guilty to Tax FraudRead the Press Release
DAVENPORT, IA – – On February 24, 2016, Gregory Scott Alcala, 43, of Davenport, Iowa, appeared before the Honorable Stephen B. Jackson, Jr., and pleaded guilty to preparing and presenting a false tax return, wire fraud, and making a bomb threat in and affecting interstate commerce, announced Acting United States Attorney Kevin E. VanderSchel.
According to the plea agreement, in about February 2010, Alcala began operating Alcala Tax Service in Davenport and prepared and filed federal tax returns on behalf of taxpayers. Beginning by at least February 18, 2012, and continuing to at least March 14, 2014, Alcala devised a scheme to defraud by filing altered tax returns. Specifically, Alcala prepared tax returns on behalf of taxpayers, provided a copy of the prepared return to the taxpayers, and then represented to the taxpayers that Alcala had filed that return with the Internal Revenue Service on the taxpayer’s behalf. In reality, Alcala did not file that version but instead—without the knowledge of and authority from the taxpayer—materially altered the taxpayer’s return to create a larger tax refund than the one reflected in the copy of the return Alcala had provided to the taxpayer. Alcala then filed the unauthorized version of the taxpayer’s return and—without the knowledge of and authority from the taxpayer—directed the additional refund amount to Alcala’s own bank account. Alcala prepared at least 164 tax returns that included false or fraudulent information and directed at least a portion of 159 of those tax refunds to his own bank account without the knowledge of or authority from the taxpayer.
Additionally, on or about December 26, 2013, a switchboard operator for Badger Mutual Insurance, in Milwaukee, Wisconsin, received a telephone call from Alcala in Davenport. During the call, Alcala threatened the operator by stating he was going to send her a bomb. Alcala knew his communication to the operator would be viewed as threatening.
Alcala is scheduled to be sentenced before Senior United States Judge James E. Gritzner on June 8, 2016, at 11:00 a.m. at the Davenport Federal Courthouse. Preparing and presenting a false tax return is punishable for a maximum of three years imprisonment and a maximum $100,000 fine. The crime of wire fraud has a maximum prison term of 20 years and up to a $250,000 fine. Alcala faces a maximum prison term of ten years and up to a $250,000 fine for making a bomb threat in and affecting interstate commerce.
This matter was investigated by the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Former Aide at a Prince George’s County Elementary School Indicted for Production of Child PornographyRead the Press Release
Greenbelt, Maryland – A federal grand jury today returned an indictment charging Deonte Carraway, age 22, of Glenarden, Maryland, with thirteen counts of sexual exploitation of a minor to produce child pornography, involving 11 minor victims ranging in age from nine to 12 years old. According to court documents, Carraway was an assistant for Judge Sylvania Woods Elementary School in Prince George’s County. This indictment replaces the criminal complaint filed last week, which included eight counts involving six victims.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Chief Hank Stawinski of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
“Federal authorities will continue to work with Prince George’s County police and prosecutors to identify additional victims, provide appropriate counseling, and hold the perpetrator accountable,” said U.S. Attorney Rod J. Rosenstein.
According to the 13-count indictment, from October 11, 2015 through February 1, 2016, Carraway coerced and persuaded multiple children to engage in sexually explicit conduct in order to produce videos of that conduct. According to the indictment, the images produced include Carraway engaging in sexual activity with victims, as well as the victims engaging in sexually explicit conduct at Carraway’s direction.
According to court documents, Carraway met several of the victims at the school where he worked and other victims reported that Carraway recruited them from his choir group. Prince George’s County Police arrested Carraway on February 4, 2016, and he remains detained on related state charges.
Carraway faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 years in prison followed by up to lifetime of supervised release for each of the 13 counts of production of child pornography. Carraway has an initial appearance scheduled in U.S. District Court in Greenbelt on Friday, March 4, 2016 at 2:00 p.m. before U.S. Magistrate Judge Jillyn K Schulze. Carraway remains detained on the related state charges.
The investigation is ongoing and investigators are asking anyone with information about possible victims or details about Mr. Carraway to call 1-800-CALL-FBI (1-800-225-5324).
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 proceedings.
The case is being investigated by the FBI Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat sex crimes involving children, made up of members from ten state and federal law enforcement agencies.
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.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Prince George’s County Police Department, and Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Daniel C. Gardner and Kristi N. O’Malley, who are prosecuting the case.
Florida man sentenced for oxycodone traffickingRead the Press Release
CLARKSBIRG, WEST VIRGINIA – Nathaniel Walker, 34, of Miami, Florida, was sentenced today to 36 months in prison for oxycodone trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Walker was discovered in possession of oxycodone in Monongalia County, West Virginia. He pled guilty in September 2015 to an Information charging him with one count of “Possession with Intent to Distribute Oxycodone.”
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government. The West Virginia State Police Bureau of Criminal Investigation led the inquiry.
U.S. District Judge Irene M. Keeley presided.
Federal Judge Sentences Two Methamphetamine Traffickers to Lengthy Prison TermsRead the Press Release
STATESVILLE, N.C. – U.S. District Judge Richard L. Voorhees handed down lengthy prison terms to two methamphetamine traffickers today, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Roger Dale Franklin, 54, of Bogart, Georgia, was sentenced to 40 years and Mario Alberto Mondragon, 38, of Mexico, was sentenced to 30 years in prison. They were each ordered to serve five years under court supervision, following their prison terms.
U.S. Attorney Rose is joined in making today’s announcement by Daniel R. Salter, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office and Nick Annan, Special Agent in Charge of ICE’s Homeland Security Investigations (HSI) in Atlanta and the Carolinas.
According to court proceedings, filed documents and evidence presented at each defendant’s trial:
Franklin was involved in a methamphetamine trafficking conspiracy, from about 2007 to about 2014, and, along with his conspirators, Franklin sold approximately five kilograms of methamphetamine. Over the course of the conspiracy, in 2013, law enforcement officials in Lenoir and Caldwell County, as well as in Morganton, seized methamphetamine from Franklin’s vehicle on four occasions. On two of those occasions, Franklin was in possession of handguns.
From 2012 to June 2014, Mondragon was responsible for trafficking over 4.5 kilograms of high-quality crystal methamphetamine “ice” - which has a street value of more than $150,000.
The defendants will be transferred to the custody of the Federal Bureau of Prisons upon designation to a federal facility. All federal sentences are served without the possibility of parole.
The sentencings are the result of two parallel and coordinated Organized Crime Drug Enforcement Task Force (OCDETF) investigations, codenamed “Lay Low” (involving Mondragon) and “Dixie Crystal” (involving Franklin) led by DEA and HSI, with the assistance of the North Carolina State Bureau of Investigation, North Carolina State Highway Patrol, Alexander County Sheriff’s Office, Alleghany County Sheriff’s Office, Ashe County Sheriff’s Office, Boone Police Department, Caldwell County Sheriff’s Office, Catawba County Sheriff’s Office, Hickory Police Department, Iredell County Sheriff’s Office, Lenoir Police Department, Lincoln County Sheriff’s Office, Mooresville Police Department, Pineville Police Department, Statesville Police Department, Burke County Task Force, and other law enforcement agencies throughout North Carolina and Texas, Georgia, and Tennessee.
According to court documents, to date, more than 80 individuals have been convicted as a result of the two related investigations. Court records show that the drug trafficking organizations involved have trafficked methamphetamine worth millions of dollars. Over the course of the investigation, law enforcement seized more than 10 kilograms of crystal methamphetamine, $100,000 in U.S. currency and other assets, and numerous firearms.
OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
In making today’s announcement U.S. Attorney Rose thanked all the law enforcement agencies for their investigative efforts. The prosecution for both investigations is being handled by Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.
Federal Inmate Pleads Guilty to Assaulting Correctional OfficerRead the Press Release
Contact Person: Brad Parham (843) 665-6688
Florence, South Carolina ---- United States Attorney Bill Nettles stated today that Enrique Lombrana-Perez has entered a guilty plea in federal court in Florence, SC, to assaulting a federal correctional officer, a violation of 18 U.S.C. § 111(a)(1). United States District Judge R. Bryan Harwell of Florence accepted the guilty plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that on February 23, 2015, Lombrana-Perez, while an inmate at FCI Williamsburg refused an order to change cells and started an altercation with the correctional officer. During the altercation, Lombrana-Perez struck the officer in the face.
Mr. Nettles stated the maximum penalty for assaulting a correctional officer is imprisonment for 8 years and/or a fine of $250,000.00
The case was investigated by agents of the Federal Bureau of Investigation (FBI). Assistant United States Attorney A. Bradley Parham of the Florence office is prosecuting the case.
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Extradited Defendant Gets 40 Years for Leading Sex Trafficking RingRead the Press Release
HOUSTON – The leader of a sex trafficking ring who was indicted more than 10 years ago and later extradited from Mexico has been sentenced following his convictions on four counts of harboring illegal aliens for the purpose of prostitution, announced U.S. Attorney Kenneth Magidson. Gerardo Salazar aka El Gallo entered a plea of guilty Oct. 13, 2015, admitting to his role in smuggling minor girls and young women from Mexico into the United States and using deception, threats of harm, physical force and psychological coercion to compel their service as prostitutes in Houston area bars.
Today, U.S. District Judge Vanessa Gilmore, who accepted the guilty plea, handed El Gallo a 40-year federal prison sentence. At the hearing, the court found the defendant to be unremorseful for luring girls, some under 16, into the U.S. to work in bars and subsequently forced into prostitution. That force included beatings, threats to family members if non-compliant, forced abortions and more. He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
El Gallo, 51, of Mexico City, Mexico, was indicted in 2005 along with Mexican nationals Salvador Fernando Molina Garcia, Angel Moreno Salazar, Jose Luis Moreno Salazar, Juan Carlos Salazar and Ivan Salazar. El Gallo was the leader of the group and had been a fugitive since 2005. At that time, a warrant was issued for his arrest. He was taken into custody in 2010 and extradited to the United States in June 2014.
At their respective guilty plea hearings in 2006, the co-defendants admitted to being part of an organization that operated between early 2004 through the summer of 2005. The purpose was to recruit, entice, harbor, transport, provide and obtain young Mexican women and girls for the purpose of prostitution. They admitted they benefitted financially from participating in the venture knowing that force, fraud and coercion would be used to cause the young women and to engage in commercial sex acts. Those in the sex trafficking ring further admitted to knowing that some of the girls were under the age of 18.
The charges were the result of an investigation conducted by members of the Human Trafficking Rescue Alliance (HTRA) in Houston, which includes the FBI, Homeland Security Investigations, Harris County Sheriff’s Office, Texas Alcoholic and Beverage Commission, Texas Attorney General’s Office, Department of State, Texas Department of Public Safety and the Houston Police Department. The HTRA was formed by the United States Attorney’s office in Houston as part of a broader effort by the Department of Justice to concentrate and combine resources of our own office’s civil rights and organized crime units as well as federal, state law and local enforcement agencies and non-governmental service organizations to target human traffickers while providing necessary services to those victimized by the traffickers. The Houston HTRA was one of the first of 42 such funded organizations and the first of its kind in Texas. The mission of the HTRA is to foster the collaboration of local, state and federal law enforcement agencies with area social service organizations to identify and assist the victims of human trafficking and to effectively identify, apprehend and prosecute those engaged in trafficking offenses.
The Justice Department's Office of International Affairs provided assistance with the extradition.
Assistant U.S. Attorneys Ruben R. Perez and Joe Magliolo prosecuted the case.
Erie Man Pleads Guilty to Possessing Child PornographyRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania pleaded guilty in federal court to a charge of violating federal laws relating to the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
John Leonard Oleski, 66, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Oleski possessed computer images and movies depicting minors engaging in sexually explicit conduct.
Judge Cercone scheduled sentencing for July 11, 2016 at 1:30 p.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Oleski on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Oleski.
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.justice.gov/psc.
East St. Louis Man Sentenced for Firearm OffenseRead the Press Release
Kevin L. Walker, 26, of East St. Louis, Illinois, was sentenced in federal district court in East St. Louis, IL, on February 26, 2016, to 57 months in prison, to be followed by 3 years supervised release, as well as the payment of a $150 special assessment, and a $400 fine, for his recent conviction for Unlawful Possession of a Firearm by a Convicted Felon, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
Facts presented in court revealed that on January 29, 2015, Walker, a previously convicted felon, was arrested for auto theft. After being handcuffed, Walker began to squirm and admitted to possessing a loaded gun in his front right pocket. This firearm was seized by East St. Louis detectives. Walker then admitted to possessing a shotgun at a residence in East St. Louis, Illinois. This firearm was also seized the following day by law enforcement officials.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Drug Task Force Operations Across Nebraska and Eastern Colorado Leads to One of the Largest Drug Busts in Nebraska HistoryRead the Press Release
Contact: Joe Jeanette (402) 699-2067
United States Attorney for the District of Nebraska, Deborah R. Gilg, announced today at a press conference in North Platte, Nebraska the federal indictments of sixty people involved in a Methamphetamine conspiracy investigation in Central and Western Nebraska, and Northeastern Colorado.
The joint operation, led by the Federal Bureau of Investigation, included law enforcement officers from the Cooperative Operation for Drug Enforcement (CODE) Drug Task Force, Western Nebraska Intelligence & Narcotics Group (WING), and the Central Nebraska Drug and Safe Streets Task Force (CNDSSTF), and Colorado law enforcement authorities.
This year-long operation resulted in the federal indictment of sixty individuals, and another four individuals arrested on state charges, for Distribution of a Controlled Substance, Possession of Controlled Substance with intent to Distribute, and Conspiracy to Distribute a Controlled Substance.
Starting in the early morning hours of Tuesday, February 23, 2016, CODE, WING, and CNDSSTF members, along with the assistance of other Nebraska and Colorado local, state, and federal law enforcement arrested 53 on federal charges and four on state charges, throughout Nebraska and Eastern Colorado. Seven of the federally indicted individuals are still at large. The United States Marshal’s Service assisted in the round-up of these fugitives.
Recovered during the arrest of these individuals were 8.4 ounces of methamphetamine and $1,141.
Two federal search warrants resulted in three vehicles seized, valued at approximately $85,000, one sawed off shot gun, one revolver, and approximately $17,250. Five state search warrants resulted in the recovery of $17,500, over 2 lbs of meth, and 5 guns. Unrelated arrests include 2 individuals on local charges which resulted in the seizure of 1 rifle, a ballistic vest and 16 grams of ecstasy.
Participating Nebraska drug task forces included the CODE Drug Task Force, made up of law enforcement agencies throughout a 22 county area in west-central/southwest Nebraska; the WING Task Force covering eleven panhandle counties (Banner, Box Butte, Cheyenne, Dawes, Deuel, Garden, Kimball, Morrill, Scotts Bluff, Sheridan, and Sioux); and the CNDSSTF covering Hall, Adams, Merrick and Buffalo counties of Nebraska. Colorado law enforcement agencies included the Federal Bureau of Investigation – (Denver Office), Holyoke, Colorado Police Department and the Sedgwick County, Colorado Sheriff’s Office.
“This is an incredible effort involving nearly thirty law enforcement agencies”, said U.S. Attorney Deborah Gilg, “The coordination and cooperation in this investigation is a tremendous tribute to the selfless dedication we see time and time again with our law enforcement agencies.” “Two years ago today we were gathered in North Platte to honor many of these same law enforcement officers who were being recognized with an award from the High Intensity Drug Trafficking Area (HIDTA). That HIDTA award, from a case which began in 2012, ironically spun off into the drug conspiracy involving many of these indictments and arrests earlier this week.”
Nebraska Law Enforcement Agencies involved in the operation/investigation
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Adams County Sheriff
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Alliance Police Department
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Buffalo County Sheriff’s Office
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Central City Police Department
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Cheyenne County Sheriff’s Office
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Cozad Police Department
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Dawson County Sheriff’s Office
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Deuel County Sheriff’s Office
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Federal Bureau of Investigation
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Gering Police Department
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Grand Island Police Department
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Hall County Sheriff’s Office
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Hastings Police Department
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Homeland Security Investigations
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Kearney Police Department
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Lexington Police Department
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Lincoln County Sheriff’s Office
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Nebraska State Patrol
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North Platte Police Department
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Ogallala Police Department
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Perkins County Sheriff’s Office
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Red Willow County Sheriff’s Office
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Scottsbluff Police Department
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Scotts Bluff County Sheriff’s Office
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Sidney Police Department
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United States Marshal’s Service
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Webster County Sheriff’s Office
Colorado Law Enforcement Agencies involved in the operation/investigation
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Federal Bureau of Investigation – (Denver Office)
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Holyoke, Colorado Police Department
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Sedgwick County, Colorado Sheriff’s Office
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United States Attorney’s Office District of Colorado
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Dover Man Pleads Guilty to Child Pornography PossessionRead the Press Release
CONCORD, NEW HAMPSHIRE - Shawn Gagne, 30, of Dover, New Hampshire, pled guilty on Monday in United States District Court for the District of New Hampshire to possessing child pornography, announced United States Attorney Emily Gray Rice.
A joint investigation by the Dover, New Hampshire Police Department, Homeland Security Investigations Manchester, and the New Hampshire Crimes Against Children Task Force resulted in the seizure of Gagne’s personal computer from his residence in Dover, New Hampshire. A subsequent analysis of that computer revealed several dozen videos of child pornography.
Gagne is scheduled for sentencing in June 2016. He faces a maximum prison term of 10 years, to be followed by a term of at least 5 years of supervised release and a fine of up to $250,000.
The case is being prosecuted by Assistant United States Attorney Nick Abramson.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
District Man Sentenced to Seven and a Half Years in Prison for Shooting in Southeast WashingtonRead the Press Release
WASHINGTON – Marcus Berry, 20, of Washington, D.C., has been sentenced to a 7 ½-year prison term for the shooting of two victims, which shattered one victim’s knee and left the second victim with a permanent hip injury, U.S. Attorney Channing D. Phillips announced.
Berry pled guilty in August 2015, in the Superior Court of the District of Columbia, to a felony offense of possession of a firearm during a crime of violence and a felony offense of aggravated assault. The Honorable Robert I. Richter sentenced him on Feb. 25, 2016. Following his prison term, Berry will be placed on three years of supervised release.
According to the government’s evidence, on Jan. 17, 2012, a teenage girl called her family to report that she was touched and kicked in the buttocks by Berry while walking to the bus stop after leaving school. Her mother and brother went to the area, near the 1500 block of White Place SE, and found the girl there.
All three approached Berry, who was standing with several other young men. A confrontation ensued, during which Berry’s friend handed him a black pistol. Berry pointed the gun at the girl’s brother and started shooting. Several shots hit the brother in the hip, causing him to fall to the ground. While the brother was crawling away, Berry continued to shoot at him. The mother ran to help and was shot in the knee by Berry. Berry fled the scene, and was later apprehended by officers from the Metropolitan Police Department (MPD). Both victims suffered debilitating injuries, and the mother required repeated reconstructive surgeries on her knee.
In announcing the sentence, U.S. Attorney Phillips commended the work of the officers, detectives, and others who worked on the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Brandon Long, now of the U.S. Attorney’s Office for the Eastern District of Louisiana, and Assistant U.S. Attorneys Erik Kenerson and Karen P. Seifert, all of whom investigated and prosecuted the case.
Community Chevrolet GM Admits Ripping Off DealershipRead the Press Release
ERIE, Pa. - A resident of Edinboro, Pennsylvania pleaded guilty in federal court to a charge of conspiracy to commit wire fraud, United States Attorney David J. Hickton announced today.
Douglas A. Grooms, 44, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that from June 2008 to September 2013, while employed as the general manager of Community Chevrolet in Meadville, Pennsylvania, Grooms embezzled money from the dealership by writing dealership checks to a fictitious marketing company which he set up solely for the purpose of receiving the checks, resulting in a loss of $485,800 to Community Chevrolet.
Judge Cercone scheduled sentencing for July 11, 2016 at 12:45 p.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Grooms on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation that led to the prosecution of Grooms.
Cocaine Trafficker Receives Statutory Maximum 20-Year Federal Prison SentenceRead the Press Release
FORT WORTH, Texas — A Fort Worth, Texas, man, Josimar Badillo-Ortiz, 29, was sentenced on Friday by U.S. District Judge John McBryde to the statutory maximum sentence of 240 months in federal prison, following his guilty plea in November 2015 to one count of conspiracy to possess with intent to distribute cocaine, announced U.S. Attorney John Parker of the Northern District of Texas.
Badillo-Ortiz’s two co-conspirators, Joel Gonzalez-Oviedo, 25, and Juan Carranza-Moreno, 31, both of Fort Worth, are scheduled to be sentenced by Judge McBryde on March 25, 2016. They each pleaded guilty in November 2015 to the same offense, and each faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine.
According to documents filed in the case, beginning sometime last year or before, Gonzalez-Oviedo supplied Badillo-Ortiz and others with cocaine. Badillo-Ortiz rarely, if ever, dealt directly with Gonzalez-Oviedo, rather, Badillo-Ortiz dealt almost exclusively with Carranza-Moreno, who acted as a broker between the two. As for his part, Badillo-Ortiz worked on behalf of and at another person’s direction to distribute the cocaine he received from Gonzalez-Oviedo.
According to an affidavit filed with a criminal complaint in the case, on September 15, 2015, law enforcement conducted a traffic stop on a truck they had observed leave a suspected narcotics stash house in Fort Worth. Gonzalez-Oviedo was the driver and Carranza-Moreno was the passenger. Acting on probable cause from a canine’s alert, a search of the truck was conducted, and law enforcement discovered an aftermarket “trap” in the air bag that contained nearly $58,000 in cash. Two days later, Badillo-Ortiz was arrested after law enforcement executed a search warrant at his residence and at the suspected narcotics stash house. He advised law enforcement that he had met with Carranza-Moreno and another man on September 15, 2015, and that he paid Carranza-Moreno approximately $58,000 in exchange for two kilograms of cocaine.
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Arlington Police Department investigated the case. Assistant U.S. Attorney Shawn Smith is in charge of the prosecution.
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Charleston Restaurant Owner Pleads Guilty to Making a False Statement to the Department of LaborRead the Press Release
Contact Person: Dean Secor (843) 266-1654
Charleston, South Carolina ---- United States Attorney Bill Nettles stated today that Jose Jamie Villalpando, a/k/a “Jamie Villapondo,” age 48, of Charleston, and owner of Senor Tequila Restaurants in Charleston, has entered a guilty plea in federal court in Charleston, to False Statement, a violation of 18 U.S.C. § 1001(a)(1). United States District Judge David C. Norton of Charleston accepted the guilty plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that the Wage & Hour Division (WHD) of the Department of Labor (DOL) began an investigation into whether Senor Tequila Mexican Restaurants (Senor Tequila) was paying its employees proper minimum wage and overtime pay in compliance with the Fair Labor Standards Act. The investigation found that Senor Tequila had failed to pay seven of its employees a total of approximately $106,103.05 in minimum wage and overtime pay for the period of July 28, 2008 to July 19, 2010.
Jose Jaime Villalpando (Villalpando), owner and operator of Senor Tequila, agreed to pay the back wages. However, instead of paying all of the back wages he devised and executed a scheme in 2011 in an attempt to deceive WHD investigators and avoid the payment of back wages owed to three of the employees in the amount of $76,575.92.
Villalpando executed the scheme by writing “Senor Tequila” back wages paychecks to the three employees. Villalpando then took those employees to the bank used by Senor Tequila and helped them set up accounts (one employee already had an account at the bank). Villalpando then had the three employees deposit the back wages paychecks into their respective bank accounts. Over the next several weeks, Villalpando had the three employees withdraw the amounts of the back wages paychecks from their accounts in increments and give the money back to him. Villalpando then mailed letters to WHD stating that he paid the three employees, and he attached copies of the cancelled back wages paychecks in an attempt to show that he had in fact paid the employees.
Mr. Nettles stated the maximum penalty for False Statement is imprisonment for 5 years and/or a fine of $250,000.
The case was investigated by agents of the Department of Labor-Office of Investigation (DOL-OIG). Assistant United States Attorney Dean H. Secor of the Charleston office is prosecuting the case.
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Brothers Sentenced for Participating in a Violent Drug ConspiracyRead the Press Release
PITTSBURGH - Two Pittsburgh-area brothers have been sentenced in federal court for conspiracy to distribute and possess with intent to distribute heroin, United States Attorney David J. Hickton announced today.
On Friday, United States District Judge Cathy Bissoon imposed a sentence of imprisonment of 240 months, followed by five years of supervised release, on Keith Harris, 25, of Pittsburgh, Pa. She then imposed a sentence of imprisonment of 121 months, followed by five years of supervised release, on Gregory Harris, Jr., 27, of Homestead, Pa.
According to information presented to the court, both Keith and Gregory Harris conspired to distribute and possess with intent to distribute heroin, and used violence in the course of the drug trafficking conspiracy. Keith Harris played a major role in the conspiracy, and Gregory Harris, Jr. possessed a firearm.
Prior to imposing sentence, Judge Bissoon concluded that Keith Harris was responsible for between one and three kilograms of heroin, which she called an addictive and deadly poison that he chose to sell on the street for profit. Judge Bissoon concluded that Gregory Harris, Jr. was responsible for between 400 and 700 grams of heroin, and she noted that he turned his back on the opportunities given to him. Judge Bissoon also specifically credited the testimony of a victim who testified at trial that both Keith and Gregory Harris physically assaulted and injured him during the heroin conspiracy.
Assistant United States Attorneys Conor Lamb and Ryan Hart prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Allegheny County Sheriff’s Office, the Munhall Police Department, and the Pennsylvania State Police for the investigation leading to the successful prosecution of the Harris brothers. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Animal Rights Activist Sentenced to Three Years in Prison for Vandalizing a Farm and Releasing 2,000 Mink from Their CagesRead the Press Release
CHICAGO — A California man was sentenced today to three years in federal prison for vandalizing a Grundy County fur farm and releasing more than 2,000 mink from their cages.
After releasing the mink, KEVIN JOHNSON and an accomplice spray painted the barn with the words, “Liberation is Love.” The pair also poured an acidic substance over two trucks that were parked on the farm in Morris, Ill.
JOHNSON, 28, of Los Angeles, pleaded guilty last year to one count of conspiring to travel in interstate commerce with the purpose of damaging an animal enterprise. U.S. District Judge Amy J. St. Eve imposed the three-year sentence in federal court in Chicago.
Johnson “vandalized a small, family-owned business, forcing it to close its doors,” Assistant U.S. Attorney Bethany K. Biesenthal argued in the government’s sentencing memorandum. “While his intentions are noble, his tactics are not.”
The accomplice, TYLER LANG, of Los Angeles, pleaded guilty last year to the same charge as Johnson. Lang is scheduled to be sentenced by Judge St. Eve on March 23, 2016, at 9:15 a.m.
The vandalism and releasing of the mink occurred on Aug. 13, 2013. The mink farmers, with assistance from law enforcement, were able to recover 1,600 of the animals. The remaining mink died or were never found. Johnson and Lang also destroyed cards from the cages that identified the breed of each animal, making it impossible to determine the breed of the recovered minks.
The sentencing of Johnson was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The government is being represented by Ms. Biesenthal and Assistant U.S. Attorney William Ridgway.
14 Charged in Southern District of Texas as Part of Operation Dream CatcherRead the Press Release
HOUSTON – A total of 14 people are now in custody on methamphetamine charges in three separate cases, announced U.S. Attorney Kenneth Magidson. These arrests were part of Operation Dream Catcher which also led to the apprehension of seven and 15 more individuals in the Eastern and Western Districts of Texas, respectively.
“Methamphetamine is a vicious poison that has caused horrific and long-term damage to the quality of life in too many of our communities,” said Special Agent in Charge Joseph M. Arabit of the Drug Enforcement Administration (DEA). “These indictments and arrests, as part of Operation Dream Catcher, conclude an 18-month investigation and underscore DEA’s continued commitment to working with our Federal and local law enforcement partners to disrupt and dismantle drug trafficking organizations that negatively impact our neighborhoods and families.”
Those taken into custody included: Jorge Rojo-Villa, 32, of Pasadena
Maria Villa, 58, Mexican national residing in Houston
Pedro Rojo, 31, of Houston
Juan Cantarero, 49, of El Salvador
Fernando Pacheco Olivo, 33, Mexican national residing in Houston
Alimid Delatorre Garcia, 54, Mexican national residing in Katy
Feliberto Pineda Duarte, 36, Mexican national residing in Humble
Marco Antonio Aparicio-Santos, 44, of Houston
Jesus Ortiz-Flores aka “Alacran,” 26, of MexicoOne defendant - Arturo Hernandez-Villegas, 50, of Mexico - was already in federal custody on other charges.
All have made their initial appearances in federal court. Hernandez-Villegas, Aparicio-Santos and Ortiz-Flores are set for a detention hearing today before U.S. Magistrate Judge Mary Milloy, while the remaining defendants will appear March 3, 2016, at 10:00 a.m.
Two additional defendants - Huber Cornejo, 30, and Osmel Serrano, 30, both Mexican nationals living in Houston – were in state custody on unrelated charges and are expected to make appearances in federal court in the near future.
Two others were arrested in Florida - Reilandis Florat, 30, and Evelio Villalba, 62. They have made their initial appearances there are expected to be transferred to the Southern District of Texas in the near future.
Rojo-Villa, Villa, Rojo and Cantarero are charged by criminal complaint with conspiracy to and possession with intent to distribute controlled substances. This case centered around the distribution of methamphetamine and cocaine in the Houston area.
In a separate criminal complaint, Olivo, Garcia and Duarte are charged with conspiracy to and possession with intent to distribute controlled substances. These charges centered around the distribution of methamphetamine in the Houston area. The criminal complaint in this case details the facts underlying the charges, some of which included drug purchases with the defendants.
In the third case, Hernandez-Villegas, Aparicio-Santos and Ortiz-Flores are charged in a six-count indictment filed Feb. 18, 2016. Each are charged with conspiracy with each defendant facing additional counts of possession with intent to distribute controlled substances.
All 14 defendants face a minimum of 10 years and up to life in prison as well as a possible $10 million fine, upon conviction.
The complaints and indictment remain sealed as to those charged but as yet in custody.
As a part of the overall operation, authorities seized more than $2 million, 279 pounds of methamphetamine, 206 pounds of cocaine and 138 pounds of heroin.
Operation Dream Catcher is the result of investigations conducted by the DEA, Houston Organized Crime Drug Enforcement Task Force - Strike Force, DEA High Intensity Drug Trafficking Area Task Force, Homeland Security Investigations, IRS-Criminal Investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives; FBI; Several Divisions within the Ft. Bend County Sheriff’s Office to include the Patrol Division, SWAT and the Narcotics Task Force; Harris County Sheriff’s Office - Patrol Division; police departments in Houston, Huntsville and Pasadena; Texas Alcoholic Beverage Commission, Texas Department of Public Safety Intel; sheriff’s offices in Montgomery and Walker counties; and the Bureau of Animal Regulation and Care.
Assistant U.S. Attorneys Richard Magness and Arthur R. Jones are prosecuting the cases.
26 February 2016
Webster Man Sentenced for Downloading Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.- U.S. Attorney William J. Hochul Jr. announced today that Preston Field, 24, of Webster, N.Y., who was convicted of possession of child pornography, was sentenced by Chief U.S. District Judge Frank P. Geraci to 48 months in prison, to be followed by 15 years of supervised release.
Assistant U.S. Attorney John J. Field, who handled the case, stated that from November 2012 to March 2014, the defendant downloaded and stored more than 600 images of child pornography. Some of the images portrayed or depicted violence against children. The defendant also made his collection available for others to view and download.
The sentencing is the culmination of an investigation by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Undercover Operation Nets Owner and Bookkeeper of Major Commercial Fishing Business for Violating RegulationsRead the Press Release
BOSTON – The owner of one of the largest commercial fishing businesses in the northeastern United States and his bookkeeper were arrested today on charges of conspiracy and submitting falsified records to the federal government to evade federal fishing quotas. The charges arose out of an undercover investigation in which federal agents posed as organized crime figures interested in buying the fishing business.
Carlos A. Rafael, 64, and Debra Messier, 60, both of Dartmouth, were charged in a criminal complaint with submitting falsified records to the federal government and conspiracy. They are scheduled to appear in U.S. District Court in Boston at 3:30 p.m. today.
According to court documents, Rafael owns Carlos Seafood, Inc., in New Bedford, which is one of the largest commercial fishing businesses in the northeastern United States. The complaint alleges that for years, Rafael, with help from his bookkeeper, Messier, lied to federal authorities about the quantity and species of fish his boats caught, in order to evade federal quotas designed to guarantee the sustainability of certain fish species. After submitting false records to federal regulators to conceal the violation of quotas, Rafael sold the fish to a business in New York City in exchange for bags of cash.
According to court documents, beginning in June 2015, two undercover federal agents posing as organized crime figures had several meetings with Rafael to negotiate the purchase of his business. During those meetings, Rafael allegedly told the agents how he operated his business off-the-books by selling fish for cash. This culminated in a meeting at Rafael’s office in New Bedford in January 2016, during which Rafael and Messier allegedly explained, step by step, what they called “the dance”: the process by which Rafael and others coordinated with Rafael’s boat captains to falsify federal forms intended to track what was caught as well as forms designed to monitor the fish species purchased by Carlos Seafood. Rafael also allegedly told the undercover agents that, in his most recent dealings with the New York City buyer, he earned $668,000 in less than six months. Rafael allegedly smuggled some of the cash through Logan International Airport to Portugal.
The charge of submitting falsified records to the federal government provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 fine. The charge of conspiracy provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Manny J. Muriel, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Rear Admiral Linda L. Fagan, Commander of the First Coast Guard District; Timothy Donovan, Acting Assistant Director of the National Oceanic and Atmospheric Administration, Office of Law Enforcement; Gregory K. Null, Special Agent in Charge of the Department of Homeland Security, Office of Inspector General, Philadelphia Field Office; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Andrew E. Lelling, of Ortiz’s Economic Crimes Unit, and David G. Tobin, of Ortiz’s Major Crimes Unit.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
To confidentially report illegal fisihing activity, contact the U.S. Coast Guard at 1 (844) 847-2431.
U.S. District Court Issues Final Order of Forfeiture Against Hong Kong Entertainment (Overseas) Investments, Ltd, D/B/A Tinian Dynasty Hotel & Casino in the Amount of 2.5 MillionRead the Press Release
Saipan, CNMI - ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced the successful forfeiture of $2,500,000 from Hong Kong Entertainment (Overseas) Investments Ltd., d/b/a Tinian Dynasty Hotel & Casino (“TDHC”). The forfeiture comes months after the United States Attorney’s Office and TDHC entered into a Non Prosecution Agreement which required the casino to forfeit millions in proceeds traceable to criminal violations. Specifically, the agreement required THDC to administratively forfeit $536,969.12 as well as the $2,500,000.00 contemplated in the U.S. District Court’s Final Order of Forfeiture. Together, these sums represent the largest forfeiture by the United States in NMI history. The Agreement also obligates TDHC to fully cooperate with the United States in ongoing criminal investigations and to comply with federal reporting and other regulatory requirements. The United States — in its sole discretion — can rescind the Agreement and initiate criminal proceedings should the Government determine that TDHC has failed to comply with any provision of the Agreement.
In her Final Order of Forfeiture, U.S. District Court Chief Judge Ramona V. Manglona ordered that the casino’s rights, title, and interest in the $2,500,000 are now vested with the United States of America. U.S. Attorney Limtiaco stated, “This forfeiture is the culmination of a year-long investigation. The persistent and dedicated efforts of IRS Criminal Investigators were instrumental in recovering these funds. The IRS Criminal Investigation, the U.S. Attorney’s Office, and the Department of Justice will continue to partner together to ensure casinos, financial institutions, and businesses comply with the requirements of federal law and other financial regulations.”
“The Bank Secrecy laws were enacted to curtail the movement of ill-gotten gains through our financial institutions. When one of those entities shirks their duty and fails to comply with the law requiring the examining and reporting of certain financial transactions, it creates an entry point for would-be criminals to circumvent rules intended to frustrate and detect their criminal enterprises. Together with the U.S. Attorney’s Office, we will continue to monitor the gaming industry to ensure the integrity of our financial markets,” stated Special Agent in Charge Teri Alexander of IRS Criminal Investigation.
Federal law known as the Bank Secrecy Act (BSA) requires that financial institutions and certain businesses, including casinos with annual gaming revenue in excess of $1 million, be vigilant in detecting and reporting activity that may indicate that money laundering, or other financial crimes, are being committed, and that the casino implement and maintain an effective anti-money laundering program. The BSA requires casinos to file a “Currency Transaction Report for Casinos” (CTR-C) for transactions that involve more than $10,000 in cash. Cash includes the coins and currency of the United States and foreign countries. The law requires that casinos and businesses report transactions when customers use cash in a single transaction or a related transaction occurring within a 24-hour period.
On November 20, 2014, a federal grand jury returned a Second Superseding Indictment that charged TDHC with one count of conspiracy to fail to file CTRs in violation of 18 U.S.C. § 371 and 31 U.S.C. §§ 5313(a), 5322(b) and 5324(a)(1) and (d)(2); 155 counts of failure to file CTRs in violation of 31 U.S.C. §§ 5313(a) and 5322(b); one count of failure to file a SAR in violation of 31 U.S.C. §§ 5313(a), and 5322(b); and one count of failure to maintain an effective anti-money laundering program in violation of 31 U.S.C. §§ 5318(h) and 5322(b).
According to filings with the Court, TDHC did not fully identify and disclose all individuals whose gambling activities should have legally triggered a BSA report. From October 1, 2009 through April 25, 2013, TDHC failed to document over $138 million in reportable cash transactions. It is estimated that TDHC failed to report 3,640 separate cash transactions during this same time period.
U.S. Attorney Carter M. Stewart Announces ResignationRead the Press Release
COLUMBUS, Ohio – United States Attorney Carter M. Stewart, 46, of Gahanna, Ohio, has announced his resignation effective midnight on March 11, 2016. After his resignation, he plans on joining a non-profit/foundation in the Columbus area.
“Not just serving as U.S. Attorney in the Southern District of Ohio, but serving under this president and these Attorneys General Holder and Lynch, has been the highest honor of my professional career,” U.S. Attorney Stewart said. “I could not be prouder to call myself a member of this U.S. Attorney’s Office. There are no more dedicated public servants than the men and women in this office who push themselves every day to pursue our core mission: protecting and serving the citizens of the Southern District of Ohio through the ethical, vigorous, impartial enforcement of the laws of the United States.”
Entering office in 2009 during the height of the national financial crises and the collapse of the housing market, U.S. Attorney Stewart established White Collar crime with a focus on mortgage fraud as a top priority for the district, in addition to National Security and Violent Crime. More recently, as the opioid epidemic has grown, he has increased resources for prosecuting pill mills, preventing opioid/heroin abuse and treating addiction.
Emphasizing prevention, Stewart created a robust outreach program in the District, establishing the position of Outreach Coordinator to better understand community needs. He made efforts to be a consistent and accessible resource for the community and also encouraged greater involvement in reentry efforts. Stewart prioritized building trust between community and law enforcement.
“Since 2009, U.S. Attorney Carter Stewart has served the people of the Southern District of Ohio – and all Americans – with fidelity and distinction,” said Attorney General Loretta Lynch. “Throughout his tenure, he has brought his collaborative approach to a wide range of issues, convening important summits on civil rights, cybercrime, juvenile justice, and opioid abuse. He helped to strengthen our global partnerships by representing the U.S. Attorneys community abroad. And as a member of the Attorney General’s Advisory Committee, he spearheaded vital efforts to promote racial equality and to protect children throughout the United States. In these and in many other undertakings, Carter distinguished himself through his hard work, his dedication, and his integrity. I want to thank him for his outstanding contributions, and I wish him the best as he continues his public service career in the nonprofit sector.”
Stewart brought together a diverse group of stakeholders through the creation of the Columbus Community Engagement Council, which included community leaders who represent the city’s diversity in terms of ethnicity, race, faith and sexual orientation.
Under his leadership, the office convened education professionals, medical personnel, faith leaders, advocates and the business community to raise awareness about various issues including civil rights for new Americans, cybersecurity, child exploitation, human trafficking, the school-to-prison pipeline and violent extremism.
Stewart, a graduate of Stanford University, Columbia University and Harvard Law School, previously worked as an Assistant U.S. Attorney in San Jose, Calif., where he prosecuted a variety of cases including drug and gun crimes, environmental crimes, and the illegal distribution of steroids to professional athletes. During his tenure as U.S. Attorney, he served on the Attorney General’s Advisory Committee and chaired the Attorney General’s Child Exploitation Working Group and the Racial Disparities Working Group.
Among the cases prosecuted under Stewart:
U.S. v. William M. and Connie M. Apostelos is a pending case which charges the couple, who oversaw multiple companies in the Dayton, Ohio area, with orchestrating an alleged $70 million Ponzi scheme.
U.S. v. Keith A. Arrick, Sr. and Keith A. Arrick, Jr. is a case in which a father and son have both been sentenced for running a sex trafficking operation. Arrick Sr. was sentenced to 13 years in prison and Arrick Jr. was sentenced to 10 years in prison.
U.S. v. Mark M. Beatty is the first criminal enforcement of the Native American Graves Protection and Repatriation Act in the Southern District of Ohio. It involves a Jackson County man who has pleaded guilty to illegally purchasing Native American human remains. Beatty has not been sentenced yet.
U.S. v. Columbus Steel Castings Company, Inc. resulted in the company paying $825,000 for violating the Clean Air Act. Part of that money funded a Conservation Classroom Program in ten schools in South Columbus within the Columbus Public Schools.
U.S. v. Christopher Lee Cornell involves a 21-year-old Cincinnati-area man charged with attempting to provide material support to ISIL and other related offenses. He allegedly plotted, planned and attempted to attack the U.S. Capitol and kill government officials.
U.S. v. Shane K. Floyd et al. resulted in a jury trial at which school officials charged with a bribe and kickback scheme were found guilty of a $500,000 public corruption scheme. Four defendants were sentenced for their roles in connection with the crimes at the Arise Academy in Dayton, Ohio. School officials solicited and accepted bribes in exchange for a lucrative, unbid consulting contract.
U.S. v. Glen Galemmo involves an investment company owner who was sentenced to 188 months in prison for operating a Ponzi scheme that defrauded investors of more than $87 million. Galemmo used the money as his personal bank, paying country club fees, taking luxurious vacations and buying real estate, clothing and jewelry.
United States ex rel. Fry v. Health Alliance of Greater Cincinnati, Inc (HAGC).—In 2010, HAGC and The Christ Hospital paid $110 million for violating the anti-kickback statute and False Claims Act by paying physicians for referring cardiac patients to The Christ Hospital.
U.S. v. Robert Ledbetter et al. (Short North Posse) is the largest federal murder indictment in Ohio’s history. The racketeering case involves 20 defendants and 13 previously unsolved murders. A trial is set for April 2016.
U.S. v. Charles M. McBeath and Antonio J. Spiva includes charges against two Dayton, Ohio men for distributing heroin and fentanyl that resulted in overdose deaths. Distribution resulting in death is a crime that is punishable by a mandatory minimum of 20 years up to lifetime imprisonment.
U.S. v. Abdirahman Mohamud involves a 23-year-old Columbus, Ohio resident and naturalized citizen who is charged with providing material support to terrorists (al-Nusrah). He allegedly traveled to Syria to obtain terrorist training and was instructed to return to the United States and commit an act of terrorism.
U.S. v. James O. Napier involves a Cincinnati man that was sentenced to serve 240 years in prison for producing child pornography involving an 11-month old infant and an approximately nine-year-old child.
U.S. v. Robert Frank Poandl involves a priest that was sentenced to 90 months in prison for illicit interstate transportation of a minor. A jury convicted Poandl on September 20, 2013. Testimony presented during the trial showed that, in August 1991, Poandl transported a 10-year- old boy from Cincinnati to West Virginia where he sexually assaulted the child. The crime was not disclosed until the victim came forward in 2009.
U.S. v. John P. Raphael is a pending case in which Raphael, a Columbus lobbyist, has pleaded guilty to extortion in relation to contracts with a red light photo enforcement company. Raphael repeatedly pressured and induced the company to make campaign contributions to the campaigns of various elected officials. He communicated to the company that it would lose its contracts and suffer an economic loss if it did not make the payments. Thus, Raphael obtained and attempted to obtain the funds by the wrongful use of fear of economic harm.
U.S. v. Paul H. Volkman resulted in four life sentences for a physician who was the largest physician dispenser of Oxycodone in the U.S. from 2003 to 2005 and whose illegal distribution of the pills led to the deaths of four people.
The Southern District of Ohio covers 48 counties in the state, and includes offices in the cities of Cincinnati, Columbus and Dayton. The U.S. Attorney’s Office has 52 attorneys and is responsible for conducting all criminal and civil litigation involving the United States government in Southern Ohio.
Two Women Plead Guilty to Conspiracy in Scheme to Steal Feeding Program FundsRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Erica Warren, 36, of Little Rock, and Alexis Young, 37, of Bryant, pled guilty to an Information charging them with conspiring to commit mail fraud. The charge relates to a conspiracy to fraudulently obtain United States Department of Agriculture (USDA) program funds intended to feed children in low income areas during the school year.
Today’s plea hearing took place in Little Rock before United States District Judge Brian S. Miller. Judge Miller will sentence Warren and Young at a later date.
The USDA funds the Child and Adult Care Feeding Program (CACFP), which includes an at-risk after school component. In Arkansas, the feeding programs are administered by the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. Once approved, they can provide meals as part of the feeding program and be reimbursed based on the number of eligible meals they serve.
According to facts read at the plea hearing, Warren operated as a sponsor for a feeding program through an organization called "Write of Passage." At times during the period charged in the Information, Warren had approved sites in Little Rock. Young worked for DHS, and part of her job was to determine eligibility of sponsors to participate in the feeding programs. Young was responsible for reviewing Warren’s sites.
Warren and Young admitted that they conspired to form Write of Passage to obtain funds fraudulently from the feeding program. This was done by inflating the number of children fed on claims submitted to DHS. Write of Passage was paid $253,817.44. Warren and Young both shared in the proceeds from these inflated claims as Warren paid Young cash and indirectly by checks made payable to one of Young’s relatives.
Warren and Young are the fourth and fifth persons to plead guilty concerning USDA feeding program funds. The previous charges filed in this investigation and Warren and Young’s Information detail alleged fraud involving over $10 million in USDA feeding program funds. Francine Leon, Kattie Jordan and Christopher Nichols previously pled guilty to conspiracy to commit wire fraud.
The statutory penalty for conspiracy to commit wire fraud is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than three years supervised release.
The investigation is ongoing and is being conducted by the USDA–Office of Inspector General, Federal Bureau of Investigation, Internal Revenue Service–Criminal Investigations, and United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana Harris and Allison W. Bragg. If you are aware of any fraudulent activity regarding these feeding programs, please email that information to [email protected].
Two Glendale Men Found Guilty of Laundering Illegal Proceeds of Multi-Million Dollar Health Care Fraud Scheme that Bilked MedicareRead the Press Release
LOS ANGELES – Two Glendale residents have been found guilty of laundering millions of dollars illegally generated by a health care fraud scheme that billed Medicare for equipment and tests that were not medically necessary and sometimes were never provided.
Edgar Pogosian, also known as “Edgar Hakobyan,” 32, was found guilty today of conspiring to commit money laundering and one count of money laundering.
Karen “Gary” Sarkissian, 44, was convicted Thursday of conspiring to commit money laundering, six counts of money laundering, and five counts of health care fraud.
Pogosian and Sarkissian were found guilty by a federal jury following a three-week trial before United States District Judge Philip S. Gutierrez. The jury returned verdicts against Sarkissian on Thursday afternoon and continued to deliberate on the charges against Pogosian until today.
Judge Gutierrez is scheduled to sentence Sarkissian on June 6, and Pogosian on June 27. At sentencing, Pogosian will face a statutory maximum sentence of 40 years in federal prison, and Sarkissian could be sentenced to as much as 190 years in prison.
“As we continue to target organizations that scheme to defraud the Medicare system, criminals develop more elaborate methods to avoid detection, as seen in the money laundering activities of these defendants,” said United States Attorney Eileen M. Decker. “This case shows, however, that federal investigators have the knowledge, skills and tenacity to investigate and prosecute complex fraud schemes, and my office will continue such prosecutions to protect critical government programs like Medicare.”
With today’s guilty verdicts, a total of five defendants have now been convicted in relation to a health care fraud scheme related to several medical clinics, durable medical equipment suppliers and independent diagnostic testing facilities. Sarkissian operated a clinic on Sunset Boulevard in Echo Park and worked there with a physician’s assistant, L’Tanya Smith, who pleaded guilty in this case on the eve of trial. Between July 2009 and March 2010, Smith prescribed or ordered medically unnecessary tests and services at the Sunset clinic, some of which were never provided to the patients. Those prescriptions and orders led to more than $1.2 million in fraudulent claims to Medicare.
“Smith also prescribed medically unnecessary [durable medical equipment] (mainly orthotics) and other medically unnecessary diagnostic tests that were referred to other Medicare providers, some of which were also depositors into the money laundering conspiracy…,” according to court documents. “These providers, in turn, submitted and caused to be submitted over $10 million in false and fraudulent claims to Medicare.”
Smith, 58, of Ladera Park, pleaded guilty to five counts of health care fraud and is scheduled to be sentenced by Judge Gutierrez on May 2, at which time she will face a statutory maximum sentence of 50 years in federal prison.
Sarkissian participated in a scheme that laundered the fraudulent proceeds generated through the Sunset Clinic through five bogus corporations set up by two other men who have also been convicted in this case. The two co-conspirators deposited millions of dollars in fraudulent proceeds into bank accounts for the companies and then wrote checks from these corporations to themselves and their relatives, including Pogosian, who was found guilty based on evidence that he received checks from the sham corporations that he either cashed or deposited in his own bank accounts.
“Some of the checks written to the five corporations falsely indicated that they were payments for services such as advertising, investment, consulting, management, equipment, or professional or technical services,” according to court documents. “The five corporations in fact had no connection to the medical industry, did not provide any legitimate business services to the Medicare providers that wrote the checks, and existed primarily to launder money.”
Pogosian’s uncle, Khachatour Hakobyan, 47, of Glendale, who prosecutors argued was the overall leader of the scheme, was sentenced last month to 57 months in prison and was ordered to pay $606,681 in restitution after he pleaded guilty to conspiring to launder health care fraud proceeds through the five sham corporations and underreporting his income from the conspiracy on his federal income tax returns.
Aram Aramyan, 60, of Glendale, was sentenced in November to 51 months in prison and was ordered to pay $353,669 in restitution.
“The defendants laundered over $1 million in fraudulently obtained Medicare funds through their sham businesses, often using it for their own personal gain,” said Erick Martinez, Special Agent in Charge of IRS Criminal Investigation's Los Angeles Field Office. “As today’s verdict shows, IRS Criminal Investigation will not stand still while criminals line their pockets with illicit proceeds obtained from publically funded health care programs. The defendants have overstepped their bounds feeling entitled to this benefit program.”
The jury that convicted Pogosian also acquitted him of two counts of money laundering.
This case is the product of an investigation by the Federal Bureau of Investigation; the U.S. Department of Health and Human Services, Office of Inspector General; and IRS Criminal Investigation.
Two Former Executives of Houston-Based Oil Supply Company Plead Guilty to Fraud in Illegal Kickback SchemeRead the Press Release
Two former executives of a Houston-based oil supply company pleaded guilty today to fraud charges for their role in a scheme to secure illegal kickbacks in connection with oil projects in Latin America.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas and Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office made the announcement.
Franklin Marsan, 51, and Eduardo Betancourt, 48, both of Spring, Texas, each pleaded guilty to one count of conspiracy to commit wire fraud. They will be sentenced on July 1, 2016, by U.S. District Judge Melinda Harmon of the Southern District of Texas, who accepted their pleas today. As part of their plea agreements, Marsan and Betancourt agreed to pay restitution to their former employer.
According to the plea agreements, Marsan and Betancourt worked for a Texas-based company that, among other things, manufactured and supplied products for the petroleum, oil and gas industries. The company hired and paid third-party sales agents to promote and sell its products to customers outside the United States. Marsan and Betancourt ran the company’s Latin American operations from offices located in Houston. As part of their guilty pleas, Marsan and Betancourt admitted that from at least 2008 until at least March 2011, they obtained kickbacks from the commissions that these third-party sales agents received in connection with sales of the company’s products in several Latin American countries. Marsan and Betancourt admitted that during the course of the scheme, they received a total of at least $150,000, mostly in cash, in kickbacks, which they actively concealed from the company.
The FBI’s Houston Field Office investigated the case. Senior Trial Attorney Patrick Pericak and Trial Attorney Lorinda Laryea of the Criminal Division’s Fraud Section and Deputy Chief John Pearson of the Southern District of Texas are prosecuting the case.
The United States thanks the government of Panama for its assistance in this case. The Criminal Division’s Office of International Affairs provided significant assistance in this matter.
Two Former Executives of Houston-Based Oil Supply Company Plead Guilty in Illegal Kickback SchemeRead the Press Release
HOUSTON - Two former executives of a Houston-based oil supply company pleaded guilty today to fraud charges for their role in a scheme to secure illegal kickbacks in connection with oil projects in Latin America.
U.S. Attorney Kenneth Magidson, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office made the announcement.
Franklin Marsan, 51, and Eduardo Betancourt, 48, both of Spring, each pleaded guilty to one count of conspiracy to commit wire fraud. They will be sentenced July 1, 2016, by U.S. District Judge Melinda Harmon of the Southern District of Texas, who accepted their pleas today. As part of their plea agreements, Marsan and Betancourt agreed to pay restitution to their former employer.
According to the plea agreements, Marsan and Betancourt worked for a Texas-based company that, among other things, manufactured and supplied products for the petroleum, oil and gas industries. The company hired and paid third-party sales agents to promote and sell its products to customers outside the United States. Marsan and Betancourt ran the company’s Latin American operations from offices located in Houston. As part of their guilty pleas, Marsan and Betancourt admitted that from at least 2008 until at least March 2011, they obtained kickbacks from the commissions that these third-party sales agents received in connection with sales of the company’s products in several Latin American countries. Marsan and Betancourt admitted that during the course of the scheme, they received a total of at least $150,000, mostly in cash, in kickbacks, which they actively concealed from the company.
The FBI’s Houston Field Office investigated the case. Deputy Chief John Pearson of the Southern District of Texas, and Senior Trial Attorney Patrick Pericak and Trial Attorney Lorinda Laryea of the Criminal Division’s Fraud Section are prosecuting the case.
The United States thanks the government of Panama for its assistance in this case. The Criminal Division’s Office of International Affairs provided significant assistance in this matter.
Two Dallas-Area Doctors and Four Others Charged for Roles in $13.4 Million Medicare Fraud SchemeRead the Press Release
Six individuals, including two Dallas-area doctors, were charged in a superseding indictment that was unsealed today for their alleged participation in a $13.4 million health care fraud scheme involving fraudulent claims for home health services.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John Parker of the Northern District of Texas, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) Dallas Region, Special Agent in Charge Thomas M. Class Sr. of the FBI’s Dallas Field Office and Director of Law Enforcement David Maxwell of the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
Dr. Kelly Robinett, 66, of Denton County, Texas; Dr. Angel Claudio, 60, of Hood County, Texas; Patience Okoroji, 57, of Dallas County, Texas; Usani Ewah, 58, of Dallas County ; Kingsley Nwanguma, 45, of Dallas County; and Joy Ogwuegbu, 39, of Collin County, Texas, were each charged with one count of conspiracy to commit health care fraud. The defendants were also each charged with health care fraud: Robinett and Nwanguma with three counts each, Claudio with two counts, Okoroji and Ewah with five counts each and Ogwuegbu with four counts. Okoroji, Ewah, Nwanguma and Ogwuegbu were previously charged in the original indictment.
Robinett, a doctor of osteopathic medicine, is the owner of Boomer Housecalls, based in Frisco, Texas. Claudio, a medical doctor, is an employee of Dallas-based Texas Medical Housecalls.
Okoroji and Ewah co-owned Timely Home Health Services Inc. (Timely), where Okoroji was an administrator and licensed vocational nurse and Ewah was the director of nursing and a registered nurse. Nwanguma was a licensed vocational nurse working for Timely and Ogwuegbu was the former director of nursing for Timely.
The indictment alleges that from approximately January 2007 to September 2015, the defendants conspired to defraud Medicare by causing the submission and concealment of false and fraudulent claims to Medicare. According to the allegations, Robinett and Claudio falsely certified beneficiaries for home health care when the patients were not under their care and did not qualify for home health services. The indictment also alleges that in some cases, Okoroji and Ewah would pay recruiters, including Nwanguma, to recruit beneficiaries for home health services, regardless of whether the beneficiaries needed home health care. Okoroji, Ewah and Ogwuegbu allegedly prepared or caused to be prepared fraudulent Medicare documents that made it appear as though the beneficiaries qualified for home health services.
The indictment alleges that during the scheme, the defendants billed Medicare approximately $13,434,550 based on false home health certification signed by doctors, including Robinett and Claudio, and false and fraudulent claims for home health services.
An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
HHS-OIG, FBI and the MFCU investigated the case, which was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Northern District of Texas. Fraud Section Trial Attorney Jason Knutson is prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Two Charged with Distributing Heroin Involved in Overdose DeathsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that investigations into recent drug overdose deaths have resulted in federal heroin distribution charges against two men.
In unrelated cases, BRADLEY COMMERFORD, 20, of Derby, and REGINALD MILES, JR., also known as “Rocky,” 25, of Waterbury, are each charged with possession with intent to distribute, and distribution of, heroin.
“We are combatting a tragic opioid epidemic that is plaguing not only Connecticut but much of the country,” said U.S. Attorney Daly. “The U.S. Attorney’s Office is working closely with DEA and our state and local partners to actively investigate multiple overdose deaths. Our primary goal is to identify the source and makeup of the drugs involved. This is a very serious public health issue. We will continue to prioritize the prosecution of individuals who traffic narcotics that pose significant public safety concerns.”
“Anytime there is a loss of life involving a drug overdose it is a tragic event; but even more so, when the victims are young adults,” said DEA Special Agent in Charge Ferguson. “Those suffering from the disease of heroin addiction need access to treatment and recovery. But, those responsible for distributing these lethal drugs to the citizens of Connecticut need to be held responsible for their actions. DEA and its federal, state, and local partners are committed to bringing to justice those that distribute this poison.”
According the criminal complaint charging COMMERFORD, the Drug Enforcement Administration’s New Haven Tactical Diversion Squad is investigating two heroin overdoses that occurred in Shelton on February 16, 2016 and one that occurred in Derby on February 17, 2016. The Derby overdose resulted in the death of a 23-year-old male. The investigation, which includes victim and witness interviews, as well as analysis of numerous text messages of the decedent’s phone, identified COMMERFORD as the heroin source of supply in all three overdose cases.
The State of Connecticut Chief Medical Examiner has not yet issued a toxicology report on the decedent.
COMMERFORD has been detained in state custody since February 18, 2016.
According to the criminal complaint charging MILES, on November 19, 2015, a 22-year-old male died from an apparent heroin overdose at a residence in Woodbridge. The investigation revealed that shortly before the victim’s overdose, the victim and two other individuals purchased heroin from MILES in Waterbury.
According to the State of Connecticut Chief Medical Examiner, the victim’s death was determined to be acute intoxication due to the combined effects of heroin and Alprazolam (a generic form of Xanax).
MILES has been detained in federal custody since his arrest on January 22, 2016. He has a bond hearing scheduled for March 1.
The charge of possession with intent to distribute, and distribution of, heroin carries a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
These investigations are being conducted by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, with the assistance of the Derby, Shelton, Monroe, Middlebury and Woodbridge Police Departments. The Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon and Wilton Police Departments. These cases are being prosecuted by Assistant U.S. Attorney Robert M. Spector.
Trophy Hunter Sentenced to Three Years’ Probation for Illegally Killing Black Bear in New Jersey and Staging Fake Kill Site in New York to Conceal CrimeRead the Press Release
NEWARK, N.J. – A Ringwood, New Jersey, man was sentenced today to three years of probation for transporting an American black bear he illegally killed in New Jersey across state lines to New York, and covering up the crime by creating false records and staging a fake kill site, U.S. Attorney Paul J. Fishman announced.
Martin Kaszycki, 36, previously pleaded guilty before U.S. Magistrate Judge Leda D. Wettre to an information charging him with two counts of violating the Lacey Act by transporting a bear he had illegally killed in Newfoundland, New Jersey, to Sterling State Forest in New York, and covering up the crime by making false statements and staging a fake kill site. Judge Wettre imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On Oct. 5, 2012, Kaszycki killed a 450-pound, male, America black bear from an elevated tree stand, with a bow and arrow, out of hunting season, after setting out bait for the bear within 300 feet of the stand near his place of business in Newfoundland, all in violation of New Jersey state laws. He then drove the bear across state lines to New York, where he falsely told a New York weigh station employee that he had killed the bear in New York’s Sterling State Forest, causing the employee to record the false information on a New York state Bear Data Form.
On Oct. 8, 2012, Kaszycki drove the hide and skull of the bear to a taxidermy shop in Pennsylvania to arrange for the parts to be mounted for a trophy display and falsely represented to a taxidermist that he had hunted the bear in New York, causing the taxidermist to record that information on a New York State Department of Environmental Conservation Taxidermist Bear Report.
When N.J. Division of Fish and Wildlife Officers confronted Kaszycki about the bear on Oct. 10, 2012, at his place of business, Kaszycki told them he had killed the bear in New York. Later that night, Kaszycki drove the guts of the bear to Sterling State Forest in New York, where he placed them in the woods to stage a fake kill site. When confronted again the next day by state officials about the bear, he led those officials to the staged kill site and told them it was the location where he had killed the bear.
The Lacey Act prohibits the interstate transport of wildlife taken or possessed in violation of any state law or regulation as well as the making of a false record for wildlife that has been or is intended to be transported in interstate commerce. New Jersey state laws prohibit the hunting of an American black bear out of season. New Jersey laws also prohibit the hunting of these bears while elevated in a standing tree within 300 feet of a baited area or with a bow and arrow.
As part of his plea agreement, Kaszycki must pay a fine of $5,000 to the U.S. Fish and Wildlife Service Lacey Act Reward Fund. He must also forfeit the skull and hide of the bear and pay $1,250 to the Woodlands Wildlife Refuge for the care and release of orphaned and injured American black bears in New Jersey.
In addition, Kaszycki is prohibited from hunting, shooting, wounding, trapping, fishing, or killing wildlife or wild animals anywhere in the United States by any means during the term of probation or renew any license, permit, or other certificate that would entitle him to hunt during that time. He must also publish a statement in the N.J. Division of Fish and Wildlife (NJDFW) Hunting and Trapping Digest acknowledging the criminal conduct to which he has pleaded guilty.
U.S. Attorney Fishman credited special agents of the U.S. Fish and Wildlife Service, Office of Law Enforcement, under the direction Resident Agent in Charge Preston Fant, as well as the N.J. Division of Fish and Wildlife, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Kathleen P. O’Leary of the U.S. Attorney's Office Health Care and Government Fraud Unit in Newark.
Defense counsel: Peter L. Festa Esq., Paterson, New Jersey
Three Co-Defendants Plead Guilty to Sex Trafficking Minors in Grand Rapids, MichiganRead the Press Release
GRAND RAPIDS, MICHIGAN – All three co-defendants in a West Michigan child sex trafficking case pled guilty today in federal court. Anthony Wilson-Lackey (22) and Shyron Smith (22), both of Grand Rapids, and Stephanie Martin (24) of Holland, Michigan, pled guilty to conspiring to sex traffic two minors in Grand Rapids and Holland, Michigan, in September and October 2014. Wilson-Lackey recruited the minors, who were 15 and 16 years old, and provided them to paying customers for commercial sex in motels around Grand Rapids and an apartment complex in Holland, Michigan. Martin rented hotel rooms and helped post online advertisements promoting the minors for commercial sex. Smith conspired with Wilson-Lackey to split the profits, and he drove the minors to the motels and to Holland to meet johns. All three co-defendants admitted that they knew the minors were only 15 and 16 years old.
Over the past 18 months, the U.S. Attorney’s Office for the Western District of Michigan has successfully prosecuted six defendants for child sex trafficking, including the three in this case. The sentencing hearings will be held on a date to be determined, in the summer of 2016. Martin and Smith face up to five years in prison and Wilson-Lackey faces up to life in prison.
U.S. Attorney Patrick Miles stated, "Sadly, sex trafficking happens everywhere in the country, even right here in West Michigan. Traffickers often target minors who are lured by the promise of money, independence, and sometimes friendship, love, drugs, or violence, into selling their bodies. The growing number of sex trafficking investigations and prosecutions represent law enforcement’s increasing focus on finding and prosecuting those who prey on the vulnerable youth in our community."
"No longer can we say these crimes don’t happen in ‘my neighborhood,’" said David P Gelios, Special Agent in Charge, FBI Detroit Division. "The sexual exploitation of minors, which routinely involves trafficking teenage girls, is repulsive and all too common. The FBI’s collective effort with our Law Enforcement partners to eliminate the ability of traffickers to victimize our children is time and resources well spent. Little can be more important than that."
The Grand Rapids Police Department, Ottawa County Sheriff’s Office, FBI, and the West Michigan Based Child Exploitation Task Force (WEBCHEX) collaboratively conducted the investigation. Assistant U.S. Attorney Tessa K. Hessmiller prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney’s Office; county prosecutor’s offices; and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html.
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Statesboro Man Sentenced for Identity Theft ChargesRead the Press Release
Acting United States Attorney G. F. “Pete” Peterman, III, announces that Jai Devon Lee, age 39, of Statesboro, Georgia, was sentenced on February 25, 2016, in Valdosta, Georgia, by Senior United States District Judge Hugh Lawson to serve 101 months for aggravated identity theft and access device fraud.
Mr. Lee was convicted of the charges in October, 2015, following a two-day jury trial in Valdosta. Evidence presented at trial showed that in June, 2014, Mr. Lee possessed documents containing personal identifying information, including names, social security numbers, and dates of birth of more than 1000 individuals, intended to be used for fraudulent purposes. A tip had been received by the U.S. Secret Service office in Albany, Georgia, that Mr. Lee was trying to sell the various items of personal identifying information (PII) for $50 each. A meeting was arranged at a Valdosta restaurant between Mr. Lee and a Lowndes County Sheriff’s Office detective posing as a buyer who was to purchase 900 of the documents for $45,000.00. Mr. Lee arrived with a backpack containing the stolen identifying information he intended to sell, as well as a folder containing more stolen identifying information, including some personal credit reports. Mr. Lee was taken into custody at that time and charged. Mr. Lee has an extensive criminal record, including nine (9) prior felony convictions.
Acting U.S. Attorney G.P. Peterman, III said, “Identity theft is one of the most prevalent crimes in the United States today. The results can be devastating, depriving the victims not only of their money but of their reputation, credit rating and peace of mind. People who prey on their fellow citizens in the manner of Mr. Lee are nothing more than predators. Hopefully this prosecution and sentence will send the message to others who might be similarly inclined that they will be punished to the fullest extent of the law when caught.”
“Identity theft is one of the fastest-growing crimes in the nation. The U.S. Secret Service remains committed to aggressively investigating those responsible for committing identity theft for the purpose of defrauding the nation’s financial system. Victims that have their personally identifiable information (PII) stolen have their lives invaded in a way that often causes long lasting financial consequences. Along with our law enforcement partners we will continue to pursue those committing these crimes,” said Clint A. Bush, Resident Agent in Charge, Albany, Georgia Resident Office, United States Secret Service.
The case was investigated by the United States Secret Service and the Lowndes County Sheriff’s Office. Assistant United States Attorney Robert D. McCullers prosecuted the case on behalf of the Government.
St. Thomas Man Sentenced to 27 Months in Prison for Transmission of Threat to Injure WitnessRead the Press Release
St. Croix, USVI – Chief District Court Judge Wilma A. Lewis sentenced on February 25, 2016, Kamoui Francis, 25, to 27 months in federal prison for transmission of threat to injure, United States Attorney Ronald W. Sharpe announced. Judge Lewis also sentenced Francis to three years of supervised release, pay a $1,000 fine and pay a special monetary assessment of $100.
Francis pleaded guilty on October 9, 2015. According to the plea agreement filed with the court, in January 2014, on St. Croix, the victim was a witness in a Superior Court case involving the murder of a police officer. On January 28, 2014, the victim received two threatening messages on her Facebook account which were sent from a mobile device. The first message stated that if anyone was found guilty, the victim’s parents and children would be killed, that people were watching the victim and her family every night, that they knew where her kids went to school, and that they were following the victim from court every day. The second message stated that the victim would go missing like the murdered police officer and that people were listening to her testimony. The victim was called a rat and was warned that if anyone received a life sentence, the victim’s family would be killed, that the victim would die slowly just like the officer and would be fed to the sharks.
.Investigators determined that the messages were sent from a Facebook account which they linked to Francis, who was serving a sentence at Golden Grove Adult Correctional Facility. A subsequent search of Francis’ prison cell uncovered a cellular telephone whose assigned number was associated with the Facebook account from which the messages were sent.
This case was investigated by the Federal Bureau of Investigation and the Virgin Islands Bureau of Corrections. It was prosecuted by Assistant U.S. Attorney Rhonda Williams-Henry.
St. Petersburg Man Sentenced to Eight Years for Child Pornography OffensesRead the Press Release
Tampa, Florida – U.S. Senior District Judge Richard A. Lazzara has sentenced Jetmir Qose (23, St. Petersburg) to 8 years in federal prison for transportation and possession of child pornography. The Court also ordered him to forfeit certain items used in the commission of the offenses, including a laptop computer and two external hard drives.
Qose was found guilty after a bench trial held on November 5, 2015.
According to court documents, in September 2014, during an undercover operation, law enforcement discovered that Qose was sharing files of child pornography using a publicly available sharing program. As a result of this initial investigation, a search warrant was executed at Qose’s residence and several of his electronic devices were seized. An examination of the devices revealed a large collection of child pornography, including numerous videos and images featuring the exploitation of minors under the age of 12.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Rachel Jones and Jennifer Peresie.
It is another case 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 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.justice.gov/psc.
South Carolina Man Sentenced to Prison for Role in Nationwide Health Care Benefits SchemeRead the Press Release
Nashville, Tenn. - February 26, 2016 - William M. Worthy, II, 53, of Isle of Palms, South Carolina, was sentenced to 82 months in prison today for his role in a nationwide health care fraud scheme that defrauded over 17,000 victims, announced David Rivera, United States Attorney, and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
Worthy was sentenced by U.S. District Judge Aleta A. Trauger, who also imposed a term of three years’ supervised release upon Worthy’s release from prison. A restitution hearing has been scheduled for June 1, 2016. Worthy pleaded guilty on November 3, 2015, to one count of wire fraud and one count of conspiring to commit mail fraud, wire fraud, health plan embezzlement and money laundering.
As part of his guilty plea, Worthy admitted that he participated in a scheme to defraud thousands of individuals who purchased purported health care coverage from Worthy and his co-conspirators, when in fact the health care plans were not backed by insurance companies. The purported health care plans were marketed by Smart Data Solutions, LLC, a company located in Springfield, Tennessee, owned and managed by Bart Sidney Posey, Sr., 48, of Springfield, who is charged as a co-conspirator in this case.
Smart Data Solutions LLC, and related entities, were seized and liquidated by the State of Tennessee in 2010 when the Davidson County Chancery Court found that these entities were acting as an unlicensed insurance company and posed a significant hazard to the public. Worthy also admitted that he and his co-conspirators embezzled funds from premiums paid by individuals who had signed up for these unauthorized health plans, diverting more than $5.4 million in premiums for their own personal use. He further admitted that the majority of claims submitted in connection with these unauthorized health plans were never paid and accepted responsibility for more than $7.3 million of losses from the fraud.
Worthy was charged along with Posey Sr., Richard Hall Bachman, 67, of Austin, Texas, and Angela Slavey Posey, 49, of Springfield, Tennessee, in a 57-count indictment returned on June 26, 2013. The three co-defendants are pending trial. An indictment is merely an accusation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the United States Postal Inspection Service, the FBI, the United States Department of Labor- Employee Benefits Security Administration and Office of Inspector General, the United States Secret Service, the IRS- Criminal Investigation and the Tennessee Office of the Attorney General. The United States is represented by Assistant United States Attorneys Sandra G. Moses and William F. Abely and Senior Trial Attorney Nicholas Acker of the Criminal Division’s Fraud Section.
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South Carolina Man Sentenced to 82 Months in Prison for Role in Nationwide Health Care Benefits SchemeRead the Press Release
Contact Person: Office of Public Affairs (202) 514-2007
WASHINGTON – A South Carolina man was sentenced to 82 months in prison today for his role in a nationwide health care fraud scheme that defrauded more than 17,000 victims, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David Rivera of the Middle District of Tennessee.
William M. Worthy II, 53, of Isle of Palms, South Carolina, was sentenced by U.S. District Judge Aleta A. Trauger of the Middle District of Tennessee, who also ordered Worthy to pay $6,524,888.86 in restitution and forfeiture. Worthy pleaded guilty on Nov. 3, 2015, to one count of wire fraud and one count of conspiring to commit mail fraud, wire fraud, health plan embezzlement and money laundering.
As part of his guilty plea, Worthy admitted that he participated in a scheme to defraud thousands of individuals who purchased purported health care coverage from Worthy and his co-conspirators, when in fact the health care plans were not backed by insurance companies. The purported health care plans were marketed by Smart Data Solutions LLC, a company located in Springfield, Tennessee, owned and managed by charged co-conspirator Bart Sidney Posey Sr., 48, of Springfield. Worthy also admitted that he and his co-conspirators embezzled funds from premiums paid by individuals who had signed up for these unauthorized health plans, diverting more than $5.4 million in premiums for their own personal use. He further admitted that the majority of claims submitted in connection with these unauthorized health plans were never paid and accepted responsibility for more than $7.3 million of losses from the fraud.
Worthy was charged along with Posey Sr., Richard Hall Bachman, 67, of Austin, Texas, and Angela Slavey Posey, 49, of Springfield, in a 57-count indictment returned on June 26, 2013. The three co-defendants are pending trial. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The U.S. Postal Inspection Service, the FBI, the U.S. Department of Labor’s Employee Benefits Security Administration and Office of Inspector General, the U.S. Secret Service, Internal Revenue Service-Criminal Investigation and the Tennessee Office of the Attorney General investigated the case. Senior Trial Attorney Nicholas Acker of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Sandra G. Moses and William F. Abely of the Middle District of Tennessee are prosecuting the case.
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DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
South Carolina Man Sentenced to 82 Months in Prison for Role in Nationwide Health Care Benefits SchemeRead the Press Release
A South Carolina man was sentenced to 82 months in prison today for his role in a nationwide health care fraud scheme that defrauded more than 17,000 victims, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David Rivera of the Middle District of Tennessee.
William M. Worthy II, 53, of Isle of Palms, South Carolina, was sentenced by U.S. District Judge Aleta A. Trauger of the Middle District of Tennessee, who also ordered Worthy to pay $6,524,888.86 in restitution and forfeiture. Worthy pleaded guilty on Nov. 3, 2015, to one count of wire fraud and one count of conspiring to commit mail fraud, wire fraud, health plan embezzlement and money laundering.
As part of his guilty plea, Worthy admitted that he participated in a scheme to defraud thousands of individuals who purchased purported health care coverage from Worthy and his co-conspirators, when in fact the health care plans were not backed by insurance companies. The purported health care plans were marketed by Smart Data Solutions LLC, a company located in Springfield, Tennessee, owned and managed by charged co-conspirator Bart Sidney Posey Sr., 48, of Springfield. Worthy also admitted that he and his co-conspirators embezzled funds from premiums paid by individuals who had signed up for these unauthorized health plans, diverting more than $5.4 million in premiums for their own personal use. He further admitted that the majority of claims submitted in connection with these unauthorized health plans were never paid and accepted responsibility for more than $7.3 million of losses from the fraud.
Worthy was charged along with Posey Sr., Richard Hall Bachman, 67, of Austin, Texas, and Angela Slavey Posey, 49, of Springfield, in a 57-count indictment returned on June 26, 2013. The three co-defendants are pending trial. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The U.S. Postal Inspection Service, the FBI, the U.S. Department of Labor’s Employee Benefits Security Administration and Office of Inspector General, the U.S. Secret Service, Internal Revenue Service-Criminal Investigation and the Tennessee Office of the Attorney General investigated the case. Senior Trial Attorney Nicholas Acker of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Sandra G. Moses and William F. Abely of the Middle District of Tennessee are prosecuting the case.
Seven People Charged with Federal Firearms OffensesRead the Press Release
PANAMA CITY/PENSACOLA, FLORIDA – Defendants in seven cases were arraigned this week in federal court after a grand jury returned indictments charging them with firearms-related crimes. The indictments were announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
The defendants are:
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Hess, William Howard, 54, Daphne, Alabama;
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Kelly, Terrence Toboris, 37, Pensacola;
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Lange, Arthur Kyle, 30, Panama City;
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Murphy, Leroy Romaro, 51, Pensacola;
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Randall, Robert, 31, Panama City;
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Richey, Tristan M., 30, Pensacola; and
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Smith, Luther C., 44, Pensacola.
The firearms-related charges are:
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Selling a firearm to a convicted felon, (Hess and Smith);
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Possessing a non-registered firearm, (Hess); and
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Possessing a firearm as a convicted felon, (Kelly, Lange, Murphy, Randall, and Richey);
Additionally, Lange and Randall are also charged with controlled substance crimes.
These cases resulted from investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration, the Florida Department of Law Enforcement, Bay County Sheriff’s Office, Escambia County Sheriff’s Office, Panama City Beach Police Department, Pensacola Police Department, and the ATF Gun Crime Response Team. Assistant United States Attorneys David L. Goldberg, Edwin F. Knight, J. Ryan Love, and Jeffrey M. Tharp are prosecuting the cases.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
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 available 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]-
Reno Man Convicted of Kidnapping and Sex Trafficking ChargesRead the Press Release
RENO, Nev. – A Reno man was convicted by a federal jury on Thursday, Feb. 25, of kidnapping a 15-year-old boy and girl in California and transporting them to Reno with the intent that the girl engage in illegal sexual activity, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
“Investigating persons who prey on minors, elderly, and other vulnerable victims, is a top priority of the Justice Department and U.S. Attorney’s Office in Nevada,” said U.S. Attorney Bogden. “We have dedicated more resources than ever to catching and prosecuting these predators, and are working with local, state and federal partners to make sure they face the criminal justice system.”
John Thomas Abrams, aka Buck, aka David George Garnett, aka John McDonald, aka David Blackwell, 50, was convicted of two counts of kidnapping and one count of transportation of a minor for illegal sexual activity. Abrams faces a minimum of 20 years in prison on the kidnapping charges, a minimum of 10 years in prison on the transportation charge, and fines of up to $250,000 on each count. Abrams is in custody and is scheduled to be sentenced on June 13, at 10:00 a.m.
According to the court records and evidence introduced at trial, between about July 12 and July 22, 2012, Abrams kidnapped the girl and the boy in the Sacramento, Calif. area, and held them for ransom, reward, and otherwise. Abrams then transported them to Reno, Nev. with the intent that the girl engage in illegal sexual activity.
The investigation was conducted by the FBI in Sacramento and Las Vegas and the Sacramento Police Department. The case is being prosecuted by Assistant United States Attorneys Carla Higginbotham and Sue Fahami.
The case was brought as part of Project Safe Childhood (PSC), 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 U.S. Attorneys' Offices and the Child Exploitation and Obscenity Section, PSC 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."
Reentry Simulation Set for Mobile and State HouseRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama, and Project HOPE Reentry Task Force Chairwoman, Senator Vivian Davis Figures, announce that a Reentry Simulation event will be held on Friday, March 4th at 2:30pm at the Mobile Alabama Cruise Terminal. Numerous public officials and reentry stakeholders in the City of Mobile and the Mobile region have been invited to participate in the simulation. Participants will assume new identities as well as new personal factors that apply to them as ex-offenders returning to the community. They will have to meet the strict life requirements that actual returning ex-offenders have to meet or risk going back to jail (yes, a mock jail is part of the simulation).
The purpose of the Reentry Simulation is to highlight unnecessary barriers to successful reentry so that they can be removed. When Mobile Mayor Sandy Stimpson was informed of this event he stated, "You never truly know the challenges others face in life until you walk in their shoes. I commend the Reentry Task Force for holding such an important event in Mobile."
Members of the Alabama Legislature will also be participants in a second Reentry Simulation event on April 13th in Montgomery that will feature remarks from Governor Nathan Deal of Georgia and Governor Robert Bentley. In 2012 and 2013 Governor Deal successfully spearheaded significant criminal justice reforms in Georgia which led to limiting costly prison bed space to the most violent and hardened criminals while reducing corrections costs for Georgia taxpayers. For example, historically, the Georgia Department of Corrections spent more than $20 million annually to keep state inmates in local jails pending their transfer to prison. By FY2014, state spending on such subsidies had fallen to $40,720. Moreover, Georgia tax payers avoided an additional expenditure of $264 million when they did not experience a projected inmate population increase of 8%.1 The State of Georgia then spent significantly less money to build up its reentry infrastructure as compared to the cost of direct incarceration in order to reduce prisoner recidivism.
Senator Figures stated, "Georgia has a blue print for what we can accomplish on a nonpartisan basis here in Alabama. I commend Governor Deal and my legislative colleagues in Georgia for placing an equal emphasis on both enforcement and reentry. I also want to thank Senator Cam Ward, Chair of the Senate Judiciary Committee, for partnering with me in order to bring fresh approaches to solving Alabama’s criminal justice problems."
US Attorney Brown said, "By developing a collective plan to address the needs of ex-offenders in our State we can assist thousands of individuals break the cycle of crime, poverty and self-degradation while promoting standards of good citizenship inclusive of sustained employment and the wherewithal to become tax payers and not a tax burden. In exchange, we, as the greater community, will recognize the benefits of lower crime rates and safer communities in which to live."
US Attorney Brown and Senator Figures are available for interviews upon request or at the March 4th reentry event.
Rapid City Man Indicted for Multiple Sexual OffensesRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Attempted Sexual Exploitation of a Minor, Attempted Enticement of a Minor Using the Internet, and Transfer of Obscene Material to a Minor.
Nathan Johnross Weibel, age 31, was indicted on February 23, 2016. Weibel appeared before U.S. Magistrate Judge Daneta Wollmann on February 24, 2016, and pleaded not guilty to the Indictment.
The penalty upon conviction is a mandatory minimum of 15 years up to life imprisonment and/or a $250,000 fine, 5 years up to lifetime supervised release, $100 to the Federal Crime Victims Fund, and a $5,000 assessment if Weibel is found by the Court not to be indigent. Restitution may also be ordered.
The charges relate to Weibel attempting to have multiple underage females send him sexually explicit photographs and engage in sexual activity, and for sending obscene material to them via the internet.
The charges are merely an accusation and Weibel is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Weibel was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for April 19, 2016.
Ponchatoula Woman Indicted for Bank Fraud, Attempted Bank Fraud, and Aggravated Identity TheftRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JESSICA HENDERSON BERTHELOT, age 28, of Ponchatoula, was indicted yesterday for Bank Fraud, Attempted Bank Fraud, and Aggravated Identity Theft.
According to the court records, the investigation was initiated on September 17, 2015 by the Tangipahoa Parish Sheriff’s Office and the United States Postal Inspection Service after determining that BERTHELOT was stealing mail from residential mailboxes on the north shore.
Postal inspectors determined BERTHELOT stole approximately 1428 items of mail, including negotiable instruments. According to court records, BERTHELOT cashed and attempted to cash the stolen checks at various federally insured financial institutions on the north shore. BERTHELOT was also indicted with aggravated identity theft for forging the signatures of several victims on the stolen checks.
U. S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, BERTHELOT faces a maximum penalty of thirty years imprisonment, followed by up to five years of supervised release, and a $250,000 fine.
U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service and the Tangipahoa Parish Sheriff’s Office. The prosecution of this case is being handled by Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba.
Pinellas Pain Management Doctor and Wife Found GuiltyRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury found Edward N. Feldman, M.D., guilty of conspiring to dispense controlled substances for no legitimate medical purpose and outside the usual course of professional practice, dispensing controlled substances that resulted in death, and money laundering. His wife, Kim Xuan Feldman, was also convicted of conspiring to dispense controlled substances for no legitimate medical purpose and outside the usual course of professional practice and money laundering. Dr. Feldman faces a maximum penalty of life in federal prison, and Mrs. Feldman faces a maximum sentence of 30 years’ imprisonment. Their sentencing hearing is scheduled for May 23, 2016.
The Feldmans were indicted on December 10, 2014.
According to testimony and evidence presented at trial, from October 2009 through December 2014, the Feldmans operated Feldman Orthopedic and Wellness Center (FOWC) in Pinellas Park, Florida. FOWC saw between 80-100 patients a day, with new patients paying $300 in cash for visits, and follow-up patients paying $150-$225 for visits. Insurance was not accepted at FOWC.
During the trial, an expert in pain management opined that Dr. Feldman’s prescriptions to patients had not been for a legitimate medical purpose and had been outside the usual course of professional practice. The expert further opined that Dr. Feldman had been so far outside the usual course of professional practice that he had not been practicing medicine when he had prescribed large doses of controlled substances to his patients.
Additionally, Pinellas-Pasco Medical Examiners opined that J.M., R.G., and S.W. had died as a result of multi-drug toxicity related to the large amounts of Methadone, Oxycodone, Alprazolam, and Diazepam found in their systems. J.M. and S.W. only visited Dr. Feldman once before their respective deaths.
Evidence also showed that the couple had deposited more than $5,000,000 in cash in dozens of bank accounts during the period of the charged crimes. The couple used proceeds from FOWC to purchase their home and property for their business, and to fund investments accounts. More than $500,000 in cash and gold were recovered from various bank accounts and safety deposit boxes in the name of the Feldmans and other family members. Also, a 2011 Porsche, 2006 Infinity, and 2009 Mercedes Benz were seized. The issue of forfeiture will be determined at a later date.
This case was investigated by the Drug Enforcement Administration and the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state, and local law enforcement agencies. 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. It is being prosecuted by Assistant United States Attorneys Shauna S. Hale and Kaitlin O’Donnell.