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26 February 2016
Orlando Man Sentenced for Receiving Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced David Ryan Alberts (43, Orlando) to 10 years in federal prison for receiving and possessing child pornography. The Court also ordered him to pay restitution to the victims of his offense. Alberts pleaded guilty in September 2015.
According to court documents, Alberts downloaded and possessed scores of images of prepubescent children, including infants, engaged in sexual acts with adults and with other children. Several of the images depicted sadistic and masochistic conduct, and included images of children engaged in bestiality. He also searched for and possessed dozens of sexually explicit stories involving incest. Based on his prior conduct, Alberts received an enhanced sentence for engaging in a pattern of activity involving the sexual abuse or exploitation of minors.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Embry J. Kidd.
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 (CEOS), 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.
Okaloosa County Father and Son Plead Guilty in Wire Fraud Scheme to Defraud Non-ProfitsRead the Press Release
PENSACOLA, FLORIDA – Anthony Floyd Hemphill, 38, and his father, William Hemphill, 58, both of Crestview, Florida, have pled guilty to conspiracy to commit wire fraud in connection with a scheme to defraud non-profit organizations of more than $300,000. The guilty pleas were announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
During their pleas on February 11, 2016 (Anthony Hemphill), and yesterday (William Hemphill), the conspirators admitted that, between December 2013 and December 2014, they fraudulently represented that A.F.H. Construction LLC owned modular buildings that could be donated to non-profit organizations free of charge, if the non-profit organizations would agree to pay for the transportation and set up of the buildings. Using high pressure sales tactics, the conspirators persuaded the non-profit organizations to quickly wire advance payments for transportation and set up costs, ostensibly to prevent the modular buildings from being donated to other parties.
Once they had their victims’ money in hand, the Hemphills used delaying tactics and false statements to convince the victims that the modular buildings were in the process of being delivered and set up. In fact, no modular buildings were ever delivered.
During the conspiracy, the victims wired approximately $311,700 as advance payments for the transportation and set up costs. Anthony Hemphill used $51,000 of these payments to make a partial restitution payment that he owed in another federal criminal case in the Western District of Texas. Anthony Hemphill is currently serving a 41-month sentence imposed in the Texas case. He committed the conduct underlying the modular building fraud while on pre-trial release and/or as a fugitive in the Texas case.
In addition to the conspiracy charge, Anthony Hemphill pled guilty to wire fraud, and William Hemphill pled guilty to making a false statement to a federal agent.
The sentencing hearings are scheduled for May 10, 2016, at 10:30 a.m. (Anthony Hemphill) and 2:00 p.m. (William Hemphill) at the United States Courthouse in Pensacola.
This case resulted from an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Kathryn D. Risinger is prosecuting the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Novi Restaurant Owner and Wife Indicted for Harboring Undocuments ImmigrantsRead the Press Release
The owner of a Novi, Michigan, restaurant and his wife were indicted on charges of harboring undocumented immigrants forthe purpose of commercial advantage and private financial gain and conspiracy to harbor undocumented immigrants for the purpose of commercial advantage and private financial gain, announced United States Attorney Barbara L. McQuade. McQuade was joined in the announcement by Special Agent in Charge Marlon Miller, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) and Chief David Molloy, Novi Police Department. Roger Tam, 55, and his wife, Ada Lei, 48, of Novi were charged in an indictment returned yesterday by a federal grand jury in Detroit. The indictment is the latest development in an ongoing probe by the Novi Police Department and HSI with assistance from ICE’s Enforcement and Removal Operations (ERO), U.S. Customs and Border Protection’s Border Patrol and the Oakland County Sherriff’s Office. An investigation was launched after HSI special agents and officers with the Novi Police executed federal and state search warrants at the Novi residence, where five Mexican nationals died as a result of a Jan. 31 fire. Department of Homeland Security databases revealed that all five men were illegally present in the United States and had entered in the lastsix months. As alleged in court records, Tam hired five Mexican nationals to work at Kim’s Garden in Novi. The Mexican nationals were provided housing in the Novi home owned by Tam and Lei, and were transported to and from the restaurant, as a condition of their employment. Tam told a Novi detective at the scene of the fire that the deceased individuals were employees at Kim’s Garden whom he paid in cash and allowed to reside in the home’s basement, where smoke detectors had been disabled. If found guilty, Tam and Lei face up to 10 years in prison and a $250,000 fine. An indictment is only a charge and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.New Haven Man Sentenced to Prison for Bribing West Haven Housing Authority OfficialRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANDREW ROSS, 58, of New Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 12 months and one day of imprisonment, followed by three years of supervised release, for paying nearly $350,000 in bribes to the former executive director of the West Haven Housing Authority in exchange for government contracts and business.
According to court documents and statements made in court, Michael Siwek was the executive director of the West Haven Housing Authority (“WHHA”), an agency that received federal funding. As part of his duties, Siwek had substantial discretion over awarding WHHA business and contracts. Siwek also owned and controlled Four Star Development Company, LLC (“Four Star”). Between January 2007 and February 2012, ROSS, who controlled business entities that received WHHA business and contracts for financial and consulting services, made approximately $349,500 in corrupt payments to Siwek and Four Star.
In total, Siwek received approximately $1.5 million in bribes from individuals who received business with the WHHA and the entities that the WHHA controlled.
ROSS was remanded to custody at the conclusion of today’s court proceeding.
A hearing to determine restitution is scheduled for May 19, 2016.
On September 3, 2015, ROSS pleaded guilty to one count of conspiracy to commit bribery in connection with a program receiving federal funds.
On September 4, 2014, Siwek pleaded guilty to related charges. He awaits sentencing.
This matter has been investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, the Federal Bureau of Investigation, and Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Sarah Karwan.
Citizens are encouraged to report corruption to the Connecticut Public Corruption Task Force by calling 203-238-0505.
Navajo Man from Littlewater Pleads Guilty to Assaulting Federally Commissioned Tribal OfficerRead the Press Release
ALBUQUERQUE – Eugene Kuhn, 52, a member of the Navajo Nation who resides in Littlewater, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to assaulting a federal officer with a dangerous weapon. Under the terms of his plea agreement, Kuhn will be sentenced to 18 months in federal prison followed by a term of supervised release to be determined by the court.
Kuhn was arrested on June 14, 2015, on a criminal complaint charging him with assaulting a federal officer on the Navajo Indian Reservation in San Juan County, N.M. Kuhn was arrested after attacking a tribal police officer of the Navajo Nation Division of Public Safety with a metal bar in Littlewater on June 14, 201. Kuhn attacked the officer, who is commissioned as a special federal officer by the BIA, while the officer was attempting to arrest on unrelated charges. Kuhn was subsequently indicted on July 14, 2015.
During today’s proceedings, Kuhn pled guilty to the indictment and admitted that on June 14, 2015, he assaulted a federal officer with a metal bar while the officer was performing his official duties. Kuhn remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Kyle T. Nayback is prosecuting this case.
Miami Resident Charged with Orchestrating an Immigration Fraud SchemeRead the Press Release
A Miami-Dade woman is charged with stealing immigration application payments from her clients when she prepared at least 146 fraudulent petitions filed with United States Citizenship and Immigration Services.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
Josefa M. Siverio, 60, of Miami-Dade, is charged by indictment with five counts of mail fraud, in violation of Title 18, United States Code, Section 1341; and three counts of conversion of postal money orders, in violation of Title 18, United States Code, Section 500.
As alleged in the indictment, Siverio is an immigration consulting and services provider who prepared immigration petitions and applications for aliens seeking immigration benefits from the United States Citizenship and Immigration Services. Siverio is alleged to have prepared at least 146 fraudulent petitions and stolen checks and money orders entrusted to her to pay the fees associated with the petitions and applications for immigration benefits. It is alleged that Siverio’s clients provided her with blank checks and money orders for the application fees and Siverio made the checks and money orders payable to herself and deposited the checks and money orders into her own personal bank accounts.
Mr. Ferrer commended the investigative efforts of ICE-HSI. This case is being prosecuted by Special Assistant U.S. Attorney Monica Beamer.
An indictment is merely an accusation and every defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Resident Charged with Orchestrating an Immigration Fraud SchemeRead the Press Release
A Miami-Dade woman is charged with stealing immigration application payments from her clients when she prepared at least 146 fraudulent petitions filed with United States Citizenship and Immigration Services.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, and Linda M. Swacina, District Director, U.S. Citizenship and Immigration Services (USCIS), made the announcement.
Josefa M. Siverio, 60, of Miami-Dade, is charged by indictment with five counts of mail fraud, in violation of Title 18, United States Code, Section 1341; and three counts of conversion of postal money orders, in violation of Title 18, United States Code, Section 500.
As alleged in the indictment, Siverio is an immigration consulting and services provider who prepared immigration petitions and applications for aliens seeking immigration benefits from the United States Citizenship and Immigration Services. Siverio is alleged to have prepared at least 146 fraudulent petitions and stolen checks and money orders entrusted to her to pay the fees associated with the petitions and applications for immigration benefits. It is alleged that Siverio’s clients provided her with blank checks and money orders for the application fees and Siverio made the checks and money orders payable to herself and deposited the checks and money orders into her own personal bank accounts.
Mr. Ferrer commended the investigative efforts of ICE-HSI and USCIS. This case is being prosecuted by Special Assistant U.S. Attorney Monica Beamer.
An indictment is merely an accusation and every defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Methamphetamine and Cocaine Traffickers Arrested in "Operation Oak Cliff" Sentenced to Lengthy Federal Prison SentencesRead the Press Release
DALLAS — The last of 15 defendants charged and convicted in a methamphetamine and cocaine distribution conspiracy that operated in the Oak Cliff area of Dallas, and elsewhere, has been sentenced to a lengthy federal prison sentence, announced U.S. Attorney John Parker of the Northern District of Texas.
The investigation, dubbed Operation Oak Cliff, was led by the Dallas Police Department’s Narcotics Section, with assistance from the Texas Department of Public Safety.
Armando Luna, 30, of Dallas, was sentenced by Chief U.S. District Judge Jorge A. Solis on Wednesday to serve 160 months in federal prison, following his guilty plea to one count of conspiracy to distribute methamphetamine. Armando Luna’s brother, coconspirator John Paul Luna, 28, pleaded guilty to the same offense and is currently serving a 360-month federal prison sentence.
Other defendants charged and convicted in the case have been sentenced as follows:
Gilbert Garcia, 29, 41 months
Jesus Mendoza, 49, 112 months
Eli Olivarez, 26, 144 months
Servando Pineda-Campos, 45, 112 months
Angeles Ramirez, 34, 78 months
Alan Villegas, 23, 156 months
Jonathon Williams, 26, 37 months
Dakota Michelle Perez, 27, 70 months
Michael Joseph Logan, 54, 112 months
Deanna Rios, 24, 30 months
Christopher Valdez, 26, 124 months
Lucy Valdez, 27, 57 months
Manuel Cedillo Villegas, 29, 188 monthsAccording to documents filed in the case and facts presented in court, in 2012 and 2013, the above-listed defendants conspired together and with others to distribute and possess with the intent to distribute cocaine and 50 grams or more of methamphetamine.
In addition, during the course of the conspiracy, law enforcement purchased approximately 1.9 kilograms of cocaine, 3.24 kilograms of methamphetamine and 8.2 kilograms of marijuana. Law enforcement seized 42 firearms and approximately $62,000 in drug proceeds. They also executed five search warrants during the investigation, closing multiple, mid-level drug houses.
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Man Sentenced to 45 Months in Prison on Wire Fraud Charges for Fraudulent Refund SchemeRead the Press Release
CHARLOTTE, N.C. – Robert Michael Milton, 51, of Blacksburg, S.C., was sentenced yesterday on wire fraud charges and was ordered to serve 45 months in prison for committing a 29-month fraudulent refund scheme targeting Walmart stores in North Carolina, South Carolina, Georgia and Florida, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. In addition to the prison term, Chief U.S. District Judge Frank D. Whitney also ordered Milton to serve two years of supervised release.
U.S. Attorney Rose is joined in making today’s announcement by Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas.
According to filed court documents and yesterday’s sentencing hearing, Milton engaged in the fraudulent scheme from December 2010 to April 2013. Court records show that Milton manufactured counterfeit Walmart paper sales receipts to appear substantially similar to previously-issued genuine Walmart paper sales receipts that Milton obtained when he purchased one or more prepaid debit cards totaling from $500 to $1,000. Court records show that, using transaction numbers from the original Walmart store receipts, Milton printed counterfeit Walmart receipts that replaced the actual purchased products associated with the transaction codes with UPC-barcodes and descriptions of substituted counterfeit Microsoft software and counterfeit DVDs. Court records show that Milton took advantage of a glitch in Walmart’s system, which the company has since fixed, and used the counterfeit Walmart receipts and counterfeit software and DVDs to get full refunds for the retail price of the original transaction. In addition to using counterfeit software and DVDs, Milton also used low-priced fishing rods and reels affixed with barcodes for high-priced fishing rods and reels to obtain fraudulent refunds.
According to court records, Milton targeted and obtained fraudulent refunds from numerous Walmart stores in North Carolina, South Carolina, Georgia and Florida, as reflected in a Walmart Store Atlas seized from Milton’s warehouse. Court records show that Milton’s warehouse contained thermal receipt printers, a barcode reader, 85 fake driver’s licenses for Ohio, South Carolina and Nebraska, and 1,600 counterfeit holograms for Ohio driver’s licenses. Milton’s warehouse also contained a Mapquest printout that mapped out a 786-mile, two-day Georgia road trip with 70 waypoints associated with Walmart stores.
At Milton’s sentencing, the government introduced published National Retail Federation reports that estimated the “amount of fraudulent returns” in the retail industry ranged from $9.1 billion to $14.3 billion during the time period from 2010 through 2013. According to court records, the combined losses were estimated at approximately $400,000 for fraudulent refunds paid to Milton and the value of seized counterfeit software and seized DVDs Milton used in his fraudulent refund wire fraud scheme. Milton pleaded guilty to a wire fraud charge in July 2014.
Milton has been in custody since his arrest in April 2013, and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the HSI. The prosecution for the government was handled by Assistant United States Attorney Thomas O’Malley of the U.S. Attorney’s Office in Charlotte.
Lutz Man Sentenced to 20 Years for Child Enticement and Firearms ChargesRead the Press Release
Tampa, Florida – U.S. District Judge Charlene E. Honeywell yesterday sentenced Bryan Shane Sneed (42, Lutz) to 20 years in prison for the attempted enticement of a minor for sex, and for possession of a firearm during and in relation to a crime of violence. The Court also ordered him to serve a 20-year term of supervision and to register as a sex offender upon his release from prison. Sneed was found guilty by a federal jury on August 7, 2015.
A superseding indictment was returned against Sneed on March 18, 2015.
According to testimony and evidence presented at trial, on January 24, 2014, an undercover agent posing as a 14-year-old child responded to an online personal ad posted by Sneed. Sneed, who traveled frequently, communicated with the undercover agent through emails and text messaging for almost a year. During the communications, Sneed repeatedly sent the “child” multiple graphic images of adult pornography and a video of adult pornography. Sneed made firm plans to meet the “child” in Tampa on January 21, 2015, and when he arrived at the agreed upon location, he was arrested. A search of Sneed’s vehicle by law enforcement revealed a loaded 9 millimeter and .45 caliber handgun and several condoms.
“This criminal intended to have sex with a 14-year-old child,” said Susan L. McCormick, special agent in charge of HSI Tampa. “Our HSI undercover special agents made sure that instead of forever harming a child, he is going to spend the next 20 years behind bars.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Amanda C. Kaiser.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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.
Lubbock Man Sentenced to 15 Years in Federal Prison for Producing Child PornographyRead the Press Release
LUBBOCK, Texas — Jimmy Edward Villa, 41, of Lubbock, Texas, was sentenced this morning by Senior U.S. District Judge Sam R. Cummings to 15 years in federal prison, following his guilty plea in October 2015 to one count of production of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Villa has been in federal custody since his arrest in September 2015.
According to documents filed in his case, in late July 2015, Villa used his cell phone to record a video, which he took through a hole in a bathroom ceiling, of a minor female taking a shower and then drying off. Villa subsequently made single-frame screen captures of the video that depicted sexually explicit photos of the minor female.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation and the Lubbock Police Department Internet Crimes Against Children (ICAC) Task Force conducted the investigation. Assistant U.S. Attorney Steven M. Sucsy, of the U.S. Attorney’s Office in Lubbock, was in charge of the prosecution.
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Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that on February 26, 2016, Marlon Romere Rupert, Jr., 33, of Lincoln, was sentenced to 21 years and 10 months (262 months) in prison for his role in a conspiracy to distribute and possess with the intent to distribute 500 grams or more of methamphetamine in the Lincoln area between June of 2013 and August of 2015. Information provided to law enforcement indicated that Rupert was responsible for the distribution of at least 500 grams (approximately 18 ounces) of methamphetamine during that time-period. Following the prison term, Rupert will serve five years on supervised release.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that on February 26, 2016, Patrick Benn Schulte, 39, of Lincoln, was sentenced to nine years and two months (110 months) in prison for his role in a conspiracy to distribute and possess with the intent to distribute 50 grams or more of methamphetamine in the Lincoln area between September of 2013 and April of 2015. Information provided to law enforcement indicated that Schulte was responsible for the distribution of at least 350 grams (approximately 12 ½ ounces) of methamphetamine during that time-period. Following the prison term, Schulte will serve five years on supervised release.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lancaster Man Admits Illegally Uploading Screeners of ‘The Revenant’ and ‘The Peanuts Movie’ to BitTorrent WebsiteRead the Press Release
LOS ANGELES – A Lancaster man has agreed to plead guilty to copyright infringement for illegally posting screener versions of two movies – “The Revenant” and “The Peanuts Movie” – to a publicly accessible website. As a result of the illegal upload, more than 1 million people were able to download “The Revenant,” which caused Twentieth Century Fox Film Corporation to suffer losses of well over $1 million
William Kyle Morarity, who used the screen name “clutchit,” 31, admitted the criminal conduct in a plea agreement filed today in United States District Court.
Morarity obtained the screeners without authorization while at work on a studio lot. He copied the screeners onto a portable drive and uploaded the movies from his home computer on December 17 and 19, 2015 to a BitTorrent website called “Pass the Popcorn,” which allowed downloading via a peer-to-peer network.
“The Revenant” was uploaded six days prior to its limited release in theaters.
“As the Academy Awards ceremony this weekend highlights, the entertainment industry is the economic cornerstone of the Central District of California. Therefore, my office is committed to protecting its intellectual property,” said United States Attorney Eileen M. Decker. “The defendant’s conduct harmed the very industry that was providing his livelihood as well as the livelihood of others in Southern California.”
“Stealing movies is not a victimless crime,” said David Bowdich, the Assistant Director of the FBI’s Los Angeles Field Office. “The FBI will continue to pursue those who steal intellectual property, a crime that negatively impacts the U.S. economy, and in the case of a movie leak, victimizes everyday workers in the entertainment industry.”
Morarity agreed to plead guilty to uploading copyrighted work being prepared for commercial distribution, a felony offense that carries a statutory maximum penalty of three years in federal prison.
Morarity will be arraigned on the charge next month in United States District Court.
The case against Morarity is the product of an investigation by the Federal Bureau of Investigation.
Lafayette felon sentenced to 42 months in prison for possessing a firearmRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced that a Lafayette man was sentenced Thursday to 42 months in prison for possessing a firearm after having previously been convicted of a felony.
Jarrod Ty Foxworthy, 29, of Lafayette, was sentenced by U.S. District Judge Patricia Minaldi on one count of possession of a firearm by a convicted felon. He was also sentenced to three years of supervised release and ordered to pay a $5,000 fine. According to the November 24, 2015 guilty plea, the Lafayette Parish Sheriff’s Office dispatched a deputy to investigate a complaint on April 2, 2013. Someone matching Foxworthy’s description was seen firing a weapon in the front yard of a home on Nyoka Circle in Lafayette during a verbal altercation with the owner of the home. When Foxworthy arrived to be interviewed by the responding deputy, he was carrying a black Smith & Wesson M&P .40 caliber semi-automatic handgun and was taken into custody.
This case is part of Project Safe Neighborhoods, which is a Department of Justice initiative designed to reduce firearm crimes by removing dangerous and persistent felons from the community and promote firearm safety.
The ATF and the Lafayette Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney David C. Joseph prosecuted the case.
Kansas Woman Charged with Transferring Firearm to Convicted Felon in Hesston ShootingRead the Press Release
WICHITA, KAN. – A criminal charge filed Friday alleges a Kansas woman unlawfully transferred guns to a convicted felon who was killed Thursday in a shootout with police in Hesston, Kan., U.S. Attorney Barry Grissom said.
Sarah T. Hopkins, 28, Newton, Kan., is charged with one count of knowingly transferring a firearm to a convicted felon. An affidavit filed in the case alleges Hopkins knew Cedric Ford was a convicted felon who was prohibited from possessing a firearm when she gave him a Zastava Serbia, AK-47 type semi-automatic rifle and a Glock Model 22 40-caliber handgun.
Cedric had the guns when he was shot and killed by police Thursday after they were called to a shooting incident at Excel Industries in Hesston.
If convicted, Hopkins faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Hesston Police Department, the Harvey County Sheriff’s Department, the Newton Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kansas Bureau of Investigation and the FBI investigated. Assistant U.S. Attorney Lanny Welch and Assistant U.S. Attorney David Lind are prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Justice Department Sues to Stop Florida Tax Return PreparerRead the Press Release
West Palm Beach Return Preparer Allegedly Overstated Refunds through Fabricated and Inflated Deductions and Credits
The United States has asked a federal court in West Palm Beach, Florida, to stop Renel Herard and his companies, Herard Tax Services aka Herard Security & Training and Herard Multi Services Inc., from preparing federal income tax returns for others, the Justice Department announced today.
The complaint alleges that Herard has been preparing tax returns since approximately 2009 and has prepared more than 4,000 tax returns for customers since 2011. The complaint alleges also that Herard prepares returns that unlawfully understate income tax liabilities and overstate refunds by fabricating and/or exaggerating deductions and tax credits his clients are not eligible to take. Herard’s practices include fabricating Schedule C losses for non-existent businesses, and falsely claiming fuel tax, child care and education credits for ineligible taxpayers who did not incur qualified expenses according to the complaint.
The complaint further alleges that beginning with returns he prepared for the 2014 tax year, Herard falsely claimed the Premium Tax Credit, a refundable tax credit designed to help eligible individuals and families with low or moderate income afford health insurance purchased through the Health Insurance Marketplace, also known as the Exchange, by claiming it for customers who did not purchase health insurance through the Exchange.
Altogether, the government complaint alleges that loss to the U.S. Treasury from the defendants’ activities may be in the millions of dollars.
Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Jury Finds Former ThermoEnergy Corp. CFO Andrew Melton Guilty on Federal Charges of Mail Fraud and Failure to Pay Employment TaxRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, David Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), and Christopher A. Henry, Internal Revenue Service (IRS) Special Agent in Charge, announced today that a federal jury found former ThermoEnergy Corporation Chief Financial Officer (CFO) Andrew Thurman Melton, 69, of Little Rock, guilty on twelve counts of mail fraud and five counts of failure to account for or pay to the IRS federal taxes withheld from employee paychecks.
United States District Judge Billy Roy Wilson presided over the three-day trial, which concluded Thursday with the jury verdict. Melton will be sentenced by Judge Wilson at a later date.
Melton served as CFO for ThermoEnergy Corp., a technology marketing company based in Little Rock, from 2005 through July 2009. The United States presented evidence which proved that Melton used approximately $109,000 of ThermoEnergy funds to pay for a personal debt arising from a judgment entered against him in a prior lawsuit. The prior judgment was for money Melton owed as a result of his failure to pay an interior decorator for work done at Melton’s home. This judgment resulted in an order garnishing Melton’s wages to satisfy the debt. Instead of complying with that order, however, Melton directed ThermoEnergy funds to be paid to satisfy the order.
The jury further found Melton guilty of failing to pay to the IRS approximately $1.8 million in payroll taxes withheld from ThermoEnergy employees’ wages. Beginning in 2005, Melton was responsible for the collection, accounting, and payment of federal withholding taxes, including Social Security withholding, federal unemployment taxes, and federal disability taxes on behalf of ThermoEnergy employees. During the last two quarters of 2005, all four quarters of 2006, 2007, 2008, and the first quarter of 2009, Melton failed to file IRS form 941 reporting the amounts withheld and failed to pay any of the required employee withholding taxes.
The statutory penalty for mail fraud, a violation of 18 U.S.C. § 1341, 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 statutory penalty for failure to pay employment taxes, a violation of 26 U.S.C. § 7202, is not more than five years imprisonment, not more than a $250,000 fine, or both, and not more than three years supervised release.
The investigation was conducted by the FBI and the IRS—Criminal Investigations. First Assistant United States Attorney Patrick C. Harris and Assistant United States Attorney Hunter Bridges prosecuted the case for the United States.
Jordanian Man Sentenced for Visa FraudRead the Press Release
United States Attorney Deborah R. Gilg announced that Ala Marouf Salameh, age 39, a citizen of Jordan, was sentenced for his conviction for visa fraud. United States District Court Judge John M. Gerrard sentenced Salameh to eight months of imprisonment to be followed by three years of supervised release. As Salameh had completed eight months of imprisonment while awaiting trial and sentencing in this matter, he was turned over to immigration authorities for further proceedings relating to his removal from the United States.
Although Salameh held a Jordanian passport, he was required to obtain a visa to be able to enter the United States. On October 29, 2014, Salameh obtained an A-2 visa, a type of visa issued to foreign governmental officials, by falsely representing that he was a sky marshal with the Jordan Armed Forces. Salameh used this visa to enter the United States on June 8, 2015. Prior to the issuance of this A-2 visa, Salameh had been denied a non-immigrant visa on five separate occasions.
This case was investigated by Immigration and Customs Enforcement and the United States State Department, Diplomatic Security Service.
Jefferson County Resident Sentenced for Drug and Firearm OffensesRead the Press Release
On February 25, 2016, Scott L. Fowler, 38, of Mt. Vernon, was sentenced on heroin and firearm offenses, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
Fowler had previously pled guilty to a three-count indictment charging conspiracy to distribute more than 100 grams of heroin, possession of a sawed-off shotgun, and possession of a firearm by a felon. On the heroin offense, Fowler was sentenced to 204 months in federal prison, to be followed by 5 years’ supervised release. On the firearm offenses, Fowler was sentenced to concurrent terms of 120 months in prison, followed by 3 years’ supervised release. Fowler was fined a total of $600.00. Evidence at the plea and sentencing hearings established that, from at least August 2014 to March 2015, Fowler was involved with others in the distribution of heroin in Williamson and Jefferson Counties. During a March 19, 2015, search of a vehicle being driven by Fowler, agents located over 200 grams of heroin, a large amount of U.S. currency, a sawed-off Winchester 12-gauge shotgun, and ammunition. At sentencing, the judge found that Fowler was responsible for the distribution of over 1.8 kilograms of heroin and 35 grams of ice/methamphetamine. The judge also ordered the forfeiture of the firearm.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group, Marion Police Department, Mt. Vernon Drug Task Force, and the Drug Enforcement Administration. The Williamson County State’s Attorney’s Office also assisted in the investigation.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Iranian Man Pleads Guilty for Role in Illegally Distributing “Cracked” Kodak Printing SoftwareRead 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 Navid Salehvaziri, 34, of Tehran, Iran, pleaded guilty before U.S. District Court Judge Charles J. Siragusa to illegally circumventing technological measures protecting a copyrighted work for private financial gain. The charge carries a maximum penalty of five years in prison, a $500,000 fine, or both.
Assistant U.S. Attorney John J. Field, who is handling the matter, stated that Salehvaziri and others worked at a business entity located in Tehran, Iran. There, Salehvaziri sold unauthorized, pirated copies of Kodak software known as Prinergy Evo, a sophisticated commercial printing software. The specific software that the defendant and others sold was “cracked,” meaning that Kodak’s regular security and access control features had been disabled. In an undercover operation, the FBI arranged to purchase a copy of the “cracked” software from Salehvaziri for $1500. Authorized versions of the software, obtained through legitimate Kodak distribution channels, retail for approximately $10,000 and $300,000, depending on the features purchased.
The plea is the result of an investigation by Special Agents of Federal Bureau of Investigation, acting under the direction of Special Agent in Charge Adam S. Cohen.
Sentencing is scheduled for May 26, 2016 at 11:00 a.m. before Judge Siragusa.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Lynch in Missoula on February 25, 2016 and entering pleas of Not Guilty were:
- STEPHEN JOSEPH MARTIN, a 75-year-old resident of Phoenix, Arizona, appeared on charges of failure to register as a sex offender. If convicted of the charge contained in the indictment, MARTIN faces 10 years in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the United States Marshals Service. PACER Case Reference. 16-04
Appearing before U.S. Magistrate Ostby in Billings on February 24, 2016 and entering pleas of Not Guilty were:
- JUAN CARLOS DORADO, a 40-year-old resident of Tucson, Arizona, appeared on charges of conspiracy to possess with intent to distribute methamphetamine and conspiracy to commit money laundering. If convicted of the most serious charge contained in the indictment, DORADO faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Montana Division of Criminal Investigation, Drug Enforcement Administration, Federal Bureau of Investigation, Homeland Security Investigations and HIDTA. PACER Case Reference. 16-05
- JUAN RAMON DELGADILLO-MEZA, a 40-year-old resident of Ephrata, Washington, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, conspiracy to commit money laundering, and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious charges contained in the indictment, DELGADILLO-MEZA faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the FBI Task Force. PACER Case Reference. 16-12
- OTIS TAYLOR YELLOW MULE, a 29-year-old resident of Wyola, appeared on charges of escape. If convicted of the charge contained in the indictment, YELLOW MULE faces 5 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the United States Marshals Service. PACER Case Reference. 16-24
Appearing before U.S. Magistrate Johnston in Great Falls on February 24, 2016 and entering pleas of Not Guilty were:
- DAVID LEE ARMITAGE, a 27-year-old resident of Great Falls, appeared on charges of possession of a firearm not registered in National Firearms Registration and Transfer Record. If convicted of the charge contained in the indictment, ARMITAGE faces 10 years in prison, $10,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 15-85
- LINDA D. TAYLOR, a 61-year-old resident of Great Falls, appeared on charges of desertion of mails and delay or destruction of mail. If convicted of the charge contained in the indictment, TAYLOR faces 1 year in prison and $100,000 in fines. The case was investigated by the United States Postal Service Office of Inspector General. PACER Case Reference. 16-05
Appearing before U.S. Magistrate Ostby in Billings on February 23, 2016 and entering pleas of Not Guilty were:
- OMAR COTA, a 21-year-old resident of Mexico, appeared on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, COTA faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration, Federal Bureau of Investigation, Homeland Security Investigations and HIDTA. PACER Case Reference. 16-04
- TOMAS COTA, a 21-year-old resident of Mexico, appeared on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, COTA faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration, Federal Bureau of Investigation, Homeland Security Investigations and HIDTA. PACER Case Reference. 16-04
- BETHANY ANN FAIRCHILD, a 29-year-old resident of Pasco, Washington, appeared on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, FAIRCHILD faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the FBI Task Force. PACER Case Reference. 16-12
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Illinois Man Sentenced for Transportation of Drug MoneyRead the Press Release
United States Attorney Deborah R. Gilg announced that on February 26, 2016, Matthew Steven Crothers, 32, of Palos Heights, Illinois, was sentenced to 15 months in prison for Interstate Travel/Transportation in Aid of Racketeering Enterprise. Following the prison term, Crothers will serve three years on supervised release.
On October 25, 2014, Crothers was stopped by a Lancaster County Sheriff’s Deputy on Interstate 80 for having a suspended registration. A deputy smelled the odor of marijuana coming from Crothers’s pickup truck. The pickup was searched, and deputies did not find marijuana, but they did find $438,881.00 in cash inside a spare tire. Further investigation by Homeland Security Investigations (HSI) resulted in a determination that the cash found in the spare tire was the proceeds of marijuana sales in the Chicago, Illinois, area and was being transported back to marijuana growers in California. HSI Chicago reported that at that time, high-grade marijuana was selling in the Chicago area for approximately $2,500 per pound, and the cash found was therefore equivalent to approximately 175 ½ pounds of marijuana.
This case was investigated by the Lancaster County Sheriff’s Department and Homeland Security Investigations.
Houston Woman Pleads Guilty to PerjuryRead the Press Release
HOUSTON – Amy Fisher, 36, of Houston, has been convicted of one count of perjury, announced U.S. Attorney Kenneth Magidson.
Fisher committed perjury on Nov. 17, 2014, during her deposition and trial testimony related to the civil trial of Lipinski et. al. v. Meritage Co., Civil Action No. H-10-CV-605.
The Meritage case was a Fair Labor Standards Act (FLSA) case that went to trial in Houston in November 2014. One of the primary issues during trial was whether or not Meritage Corporation had properly classified its sales people as “outside salesmen” who are exempt from the FLSA’s overtime and a minimum wage requirements. Plaintiffs, who were all employed as sales associates for Meritage Corporation, argued the company misclassified them as “outside salesmen” to avoid paying minimum wage and overtime pay.
One of the key issues during the civil trial was determining how much time Meritage sales associates spent in sales activity outside of the sales office. Fisher was the only Meritage sales associate who testified on behalf of the corporation and knew that testimony would benefit her employer.
The deposition and trial, which both occurred on Nov. 17, 2014, focused on what activities Fisher performed outside of her sales office. Fisher gave an oral deposition in the morning and was a trial witness in the afternoon. She was under oath during the deposition and at trial and swore to testify truthfully. However, Fisher has admitted she willfully and knowingly made several false statements regarding her sales activities.
Specifically, she claimed she had left her sales office model home in Katy on Nov. 16, 2014, to escort clients to tour model homes outside the sales office on at least three occasions. She added that her activities on that date were a representation of what she had “typically” done during her 12-year tenure at Meritage.
These statements were false. In fact, she never left the sales office model home at any time on that date to escort any clients. During the trial, Fisher was shown a videotape surveillance of the sales office from that date which confirmed she did not leave and never showed homes to any clients. Confronted with that evidence, she did not recant her false trial testimony or deposition testimony. She was also questioned by the presiding judge regarding the number of times she left her sales office model home on Nov. 16, 2014. She still did not recant her false trial testimony or false deposition testimony.
Fisher admitted today that her false statements were not the result of confusion, mistake or faulty memory. She also admitted that her fabricated testimony was material to the civil proceeding because it had a natural tendency to influence, and was capable of influencing, the decision of the jury.
U.S. District Judge Keith P. Ellison accepted the plea today and has set sentencing for May 26, 2016, at which time Fisher faces up to five years in federal prison and a possible $250,000 fine. She was permitted to remain on bond pending that hearing.
This case is being investigated by the FBI. Assistant U.S. Attorney Julie Searle and Jay Hileman are prosecuting the case.
Head of Utah Heroin, Meth Distribution Organization Sentenced to 144 Months in Federal PrisonRead the Press Release
SALT LAKE CITY – Lorenzo Verduzco-Benitez, age 28, of West Jordan, Utah, head of a drug organization which sold heroin and methamphetamine in Utah, will serve 144 months in federal prison. U.S. District Court Judge Jill N. Parrish imposed the sentenced Thursday afternoon.
Verduzco-Benitez, a citizen of Mexico, pleaded guilty in December to one count of conspiracy to distribute heroin and one count of conspiracy to commit money laundering. He admitted that between July 1, 2014, and March 6, 2015, he was the head of a narcotics organization operating in Utah. He admitted that during this time he distributed approximately 10.5 kilograms of heroin and 10.7 kilograms of methamphetamine in Utah. He admitted using surrogates to deposit drug proceeds into nominee bank accounts to pay his suppliers, allowing him to conceal and disguise the nature, source, and ownership of the drug proceeds. He also admitted that he reinvested drug proceeds into the drug distribution business to ensure its ongoing success.
According to a documents filed in court, DEA started an investigation of the drug trafficking organization in July 2014 after a confidential source provided information to them that law enforcement officers were able to independently corroborate. Evidence showed Verduzco-Benitez resupplied numerous subordinate dealers in Utah, Colorado, Wyoming, and Michigan. As a part of the investigation, agents intercepted significant loads of drugs on several occasions and conducted many controlled drug purchases from the Verduzco organization.
Verduzco-Benitez and five others drug distribution conspiracy were charged in a sealed indictment returned by a federal grand jury in March 2015. Ernesto Vega, age 29, of West Jordan pleaded guilty to conspiracy to deliver a controlled substance and conspiracy to commit money laundering and was sentenced to 72 months in federal prison. Jorge Aquino Andrade, age 44, of Salt Lake City pleaded guilty to conspiracy to distribute heroin and money laundering and is scheduled to be sentenced March 1. His plea agreement includes a stipulated sentence of 60 months. Miquel Escobedo-Mendoza, age 24, of West Valley City, pleaded guilty to possession of heroin with intent to distribute and possession of a firearm in furtherance of a drug trafficking offense. He was sentenced to 120 months in federal prison. Melissa Cervantes, age 24, of Salt Lake City pleaded guilty to conspiracy to commit money laundering and was sentenced to a year in federal prison. Elvira Damian, age 50, of West Jordan, is a fugitive. Several of the defendants are citizens of Mexico and will be referred to ICE for deportation proceedings when they finish their prison sentences.
As a part of his plea agreement, Verduzco-Benitez agreed to forfeit $11,231 in cash and a Cobra Enterprise .380 semi-automatic handgun.
The case is being prosecuted by the U.S. Attorney’s Office in Salt Lake City and investigated by the DEA, IRS Criminal Investigation, and the Davis Metro Narcotics Strike Force.
Hartford Man Sentenced to 5 Years in Prison for Gang-Related Narcotics TraffickingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that TAFARIE GREEN, also known as “Farie,” 26, of Hartford, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 60 months of imprisonment, followed by four years of supervised release, for gang-related narcotics trafficking.
According to court documents and statements made in court, this matter stems from a year-long joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force into narcotics trafficking by members and associates of WestHell street gang, and gang-related violent activity. The investigation, which included the use of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, identified Melkuan Scott, also known as “Young God,” “Mel,” “Young” and “YG,” as the leader of the West Hell street gang who, along with GREEN and other associates, distributed crack cocaine in the Westland Street area of Hartford.
GREEN has been detained since April 2014. On April 24, 2015, he pleaded guilty to one count of conspiracy to distribute 28 grams or more of cocaine base (“crack”).
Twenty-five individuals were charged as a result of the investigation. One defendant was convicted after trial and 23 defendants pleaded guilty to various offenses. One defendant was shot and killed while his case was pending. Scott pleaded guilty and awaits sentencing.
GREEN’s criminal history includes convictions for assault, robbery, attempted burglary and criminal possession of a firearm. While previously incarcerated, he received disciplinary tickets for fighting and assault of a guard.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, Drug Enforcement Administration, U.S. Marshals Service and Internal Revenue Service – Criminal Investigation Division. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Squad, Major Crimes Unit and Shooting Task Force are providing valuable assistance to the investigation, and the Capitol Region Emergency Response Team (CREST) assisted with the arrest of certain defendants.
The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.
Greenville Tax Preparer Sentenced to 90 Months in Prison for Tax Fraud Conspiracy and Aggravated Identity TheftRead the Press Release
WILMINGTON – The United States Attorney’s Office for the Eastern District of North Carolina announced that yesterday, February 25, 2016, Senior United States District James C. Fox entered judgment against TONYA MARIE BATTLE, 37, of Greenville, North Carolina, sentencing her to serve a total of 90 months in prison, followed by 3 years of supervised release, on charges of Aggravated Identity Theft and Conspiracy to Defraud the United States on Claims. BATTLE was also ordered to make restitution of $1,635,515 to the Internal Revenue Service.
The investigation showed that BATTLE, with the assistance of others, devised a scheme to file fraudulent personal income tax returns with the IRS. BATTLE and those working at her direction, recruited individuals to participate in the scheme and offered those individuals significant refunds through the use of their name and identifying information.
In January, 2011, BATTLE opened TBS Tax Service in Greenville, North Carolina, and filed returns using an Electronic Filing Identification Number (EFIN). BATTLE also established a business account with Drake Software and purchased their products to electronically prepare and e-file income tax forms. BATTLE also established an account with EPS Financial Services to print refund checks in her office.
BATTLE used the personal information of TBS Tax Service’s clients to create and e-file false Form 1040s. Once the returns were accepted and funded by the IRS, BATTLE printed refund checks in her office. BATTLE then contacted clients and informed them their checks were available. BATTLE had several office assistants, one of whom was a “strongman”, who escorted clients to a nearby check cashing service in Greenville. BATTLE instructed office assistants to take a portion of most checks as additional fees and return the cash to BATTLE. Some clients had refund checks of as much as $6,000, of which BATTLE would collect the majority.
To carry out the scheme, BATTLE created and used at least 14 fictitious companies. BATTLE applied for Employer Identification Numbers (EINs) through the IRS website for each company, and then provided false names, addresses, and employees for each business. BATTLE then created fictitious Form 1099s for the TBS Tax Service clients using the IRS website to make it appear as though the TBS Tax Service clients had income from the fake companies.
To carry out the scheme BATTLE also utilized a list of dependents, consisting of the names and social security numbers of various children. BATTLE added various dependents’ names to TBX Tax Service client Form 1040s to maximize profits under the scheme.
The investigation established that between January, 2011, and April, 2012, BATTLE filed, or caused to be electronically filed, 366 fraudulent returns with the IRS, which resulted in a loss of $1,635,515 to the government.
On July 13, 2015, BATTLE pleaded guilty to Counts One and 35 of the Indictment, which charged her, respectively, with Conspiracy to Defraud the United States on Claims, in violation of Title 18, United States Code, Section 286; and Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A.
Investigation of BATTLE’s case was conducted by the Internal Revenue Service Criminal Investigation. Assistant United States Attorney William M. Gilmore represented the United States.
Four Men Plead Guilty to Multi-State Fraud Scheme to Obtain More Than $330,000 in New Cell PhonesRead the Press Release
BOSTON – Four men pleaded guilty today in U.S. District Court in Boston in connection with a fraudulent scheme to obtain and re-sell more than $330,000 in new cell phones.
Jimmy Phan, 29 of Boston; David Hul, 34 of North Arlington, NJ; Curtis Peebles, 26 of Boston and New York, NY; and Lee Tran, 29 of Waltham, pleaded guilty to wire fraud conspiracy. U.S. District Court Senior Judge Mark L. Wolf scheduled sentencing for May 23, 2016.
At today’s hearing, the defendants admitted that they and their co-conspirators gained access to T-Mobile customer records, including customer names, phone numbers, and information regarding those customers’ eligibility for free phone upgrades.
From at least January 2014 through October 17, 2014, Phan, Hul, Peebles, and other co-conspirators called T-Mobile customer service centers and, impersonating T-Mobile employees, used dealer codes that enabled them to add any name as an authorized user on T-Mobile accounts. They then recruited “runners”, including Tran and others, to go into T-Mobile stores and impersonate the customers. Phan, Hul, and Peebles used the dealer codes, among other methods, to cause either the runners’ real names or false identities to be added the customer accounts, sometimes using false names that closely matched the runners’ real names to reduce the likelihood of T-Mobile detecting the fraud.
Runners then went to T-Mobile stores in Massachusetts, Nevada, New Hampshire, New York, Pennsylvania, Rhode Island, New Jersey, Florida, and elsewhere, presented identification in the real or assumed names, and acquired one or more new cell phones on accounts that were eligible for upgrades. Runners then returned the new phones to Phan, Hul, Peebles, and others, who paid them a portion of the phone’s value. Although T-Mobile regularly alerted its customers to changes to their accounts, the affected customers frequently did not learn of the fraudulent modifications in time to prevent the distribution of the phones.
Phan, Hul, and others re-sold the cell phones to other co-conspirators for distribution in the United States and abroad. In total, Phan, Hul, Peebles, Tran, and other co-conspirators obtained at least $330,000 worth of new cell phones by defrauding T-Mobile.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Phan, Hul, Peebles and Tran agreed to pay restitution and to forfeit proceeds from the offense and various items seized from Phan’s house in connection with his arrest. 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.
Co-defendants Kevin Johnson, 24, of New York, NY, and Khoa Doan, 32 of Manchester, NH, are currently slated to stand trial.
United States Attorney Carmen M. Ortiz; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Lisa Quinn, Special Agent in Charge of the U.S. Secret Service’s Boston Field Office, made the announcement today. The U.S. Attorney’s Office acknowledges T-Mobile for its assistance with the investigation. The case is being prosecuted by Assistant U.S. Attorney Seth B. Kosto of Ortiz’s Cybercrime Unit.
Former Suffolk County Police Chief Pleads Guilty to Civil Rights Violation and Conspiracy to Obstruct JusticeRead the Press Release
Earlier today, at the federal courthouse in Central Islip, New York, James Burke, the former Chief of Department for the Suffolk County Police Department (SCPD), pleaded guilty to a civil rights violation and conspiracy to obstruct justice. The civil rights violation related to Burke’s assault of a Smithtown man who had been arrested for breaking into Burke’s SCPD-issued vehicle and stealing his property on December 14, 2012. Following that assault, over almost three years, Burke and other Suffolk County law enforcement authorities took actions to obstruct the federal civil rights investigation into the assault. Burke was arrested and arraigned on December 9, 2015, and he has been in federal custody since that date.
The guilty plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“The defendant violated his oath and responsibilities as a law enforcement officer by exacting personal vengeance, assaulting a handcuffed suspect, and abusing his authority as the highest ranking uniformed member of the Suffolk County Police Department. Despite the efforts of the defendant and his co-conspirators to obstruct the federal investigation, he has been brought to justice,” stated United States Attorney Capers. “Our investigation is ongoing, and we will seek to hold accountable anyone who violates another’s civil rights or attempts to obstruct justice.”
FBI Assistant Director-in-Charge Rodriguez stated, “An honest government, trusted by the people, is imperative to protect our freedoms. For these reasons, combating public corruption is the top criminal priority of the FBI. In his guilty plea today, Burke has taken responsibility for his illegal conduct. This begins the restoration of the public’s trust in the Suffolk County Police Department’s ability to protect their Constitutional freedoms.”
According to the indictment, court filings, and statements during today’s guilty plea proceeding, on December 14, 2012, New York State Probation Department and SCPD officers arrested probationer Christopher Loeb at his mother’s home in Smithtown, New York, for a variety of probation violations. During the arrest and search of the Loeb residence, officers discovered a large cache of merchandise stolen from over a dozen vehicles, including an SCPD-issued SUV operated by Burke. Among the items taken from Burke’s SUV was his gun belt, several magazines of ammunition, a box of cigars, a humidor, and a canvas bag that contained toiletries, clothing, and other items.
Burke was permitted to enter the Loeb residence and retrieve the canvas bag and several other articles, even as the search was underway. He then drove to the SCPD’s 4th Precinct in Smithtown where detectives had begun interrogating Loeb. Burke entered the interrogation room where Loeb was handcuffed and chained to an eyebolt fastened to the floor. Burke then punched and kicked Loeb in the head and body.
Subsequently, Burke and others pressured the detectives who witnessed the assault to conceal the event. Those efforts continued even after the FBI and the U.S. Attorney’s Office opened an investigation of the assault in 2013. In one instance, Burke summoned detectives under his command to SCPD headquarters in Yaphank, New York, to persuade the detectives to agree to a false version of events that would conceal the assault. In October 2013, one of those detectives testified falsely under oath in a state pretrial hearing in the Loeb prosecution, denying that Loeb had been assaulted.
The guilty plea proceeding was held before United States District Judge Leonard D. Wexler.
The government’s case is being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorneys Lara Treinis Gatz and John J. Durham are in charge of the prosecution, assisted by EDNY Investigator William Hessle.
The Defendant:
JAMES BURKE
Age: 51
Smithtown, New YorkE.D.N.Y. Docket No. 15-CR-627 (LDW)
Former Puerto Rico Police Officer Found Guilty by A Jury for Conspiracy to Deprive A Person of Civil RightsRead the Press Release
SAN JUAN, P.R. – On February 26, 2016, former Puerto Rico Police Officer Francisco Martinez-Mercado was found guilty of Conspiracy to Deprive a Person of his Civil Rights, announced United States Attorney Rosa Emilia Rodríguez-Vélez. United States District Judge Francisco A. Besosa presided over the trial.
On September 15, 2015 a federal grand jury returned a one-count indictment charging Martinez-Mercado for the offense committed on or about September 23, 2010, when the defendant did conspire, combine, confederate and agree to injure, oppress, threaten and intimidate a known individual in the exercise of a right, secure and protected by the Constitution of the United States, to be free from unreasonable searches and seizures by those acting under color of law, by agreeing to unreasonably search and seize property of the known individual located in Puerto Rico. At the time of the offense, Francisco Martinez-Mercado was a police officer with the Police of Puerto Rico (POPR) assigned as a Task Force Officer to the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
During the five-day trial, the government presented evidence proving that on September 23, 2010, defendant hired corrupt police officers and other individuals to break into a home and steal property.
“Corrupt public employees undermine the fabric of our nation’s security, our overall safety, the public trust and confidence in those chosen to protect and serve,” said Rosa Emilia Rodríguez Vélez, U.S. Attorney for the District of Puerto Rico. “The corruption and negligence uncovered in this case cannot and will not be tolerated. We will continue to investigate and prosecute these types of schemes.”
The case was prosecuted by Assistant U.S. Attorney Mariana Bauzá, Deputy Chief of the Narcotics Unit and Assistant U.S. Attorney Teresa Zapata. The defendant faces a maximum penalty of up to 10 years in prison. The sentencing hearing was scheduled for May 26, 2016. The case was investigated by the FBI’s San Juan Division with the assistance of the U.S. Department of Justice Office of the Inspector General Miami Field Office.Former Police Officer Sentenced to 18 Years in Prison on Child Pornography and Sexual Abuse ChargesRead the Press Release
WASHINGTON - Darrell Best, 46, a former member of the Metropolitan Police Department (MPD), was sentenced today to 18 years in prison after earlier pleading guilty to one count of production of child pornography, one count of first-degree sexual abuse of a minor, and one count of second-degree sexual abuse of a minor, announced U.S. Attorney Channing D. Phillips and Cathy L. Lanier, Chief of the Metropolitan Police Department.
Best pled guilty in October 2015 in the U.S. District Court for the District of Columbia. The plea agreement, which was contingent upon the Court’s approval, called for the 18-year prison sentence. The Honorable Reggie B. Walton accepted the plea today and sentenced Best accordingly. Following his prison term, Best will be placed on supervised release for the rest of his life. He also will be required by law to register as a sex offender for the remainder of his life.
In addition to working as a police officer, Best was the head pastor of a church in Southeast Washington. The sexual abuse charges stem from incidents involving two minor females who knew and trusted him through the church. Best pled guilty to second-degree sexual abuse of a minor based on his sexual abuse of one of the girls on Dec. 3, 2014 at MPD Headquarters. He pled guilty to first-degree sexual abuse of a minor based on his sexual abuse of the other girl on Feb. 14, 2015 while inside the church.
On March 14, 2015, after one of the girls told her parents about the abuse, the Metropolitan Police Department’s Youth Division began investigating the case. Best was arrested two days later and has been in custody ever since.
Following Best’s arrest, investigators obtained a search and seizure warrant from the Superior Court of the District of Columbia for Best’s cellular phone. A forensic examination of the phone revealed seven images depicting child pornography, which Best had produced using one of the victims.
“As a police officer and church pastor, Darrell Best was entrusted by the community to help people in need, not exploit them,” said U.S. Attorney Phillips. “He betrayed the trust placed in him by the two young victims in this case, causing great harm to them and their families. This sentence holds him appropriately accountable for his predatory and criminal conduct.”
“I am hopeful the sentencing today provides some measure of comfort for these victims and their families,” said Chief Lanier. “Mr. Best used the trust he had built within the community, as a pastor and a police officer, to take advantage of those who relied on him.”
In announcing the sentence, U.S. Attorney Phillips and Chief Lanier commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the FBI’s Washington Field Office. In addition, they acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Criminal Investigator John Marsh; Paralegal Specialist Donhue Troy Griffith, and Victim/Witness Advocate Lezlie Richardson. Finally, they commended the work of Assistant U.S. Attorneys Sarah D. McClellan and Lindsay Suttenberg, who investigated and prosecuted the case.
Former Officer with Federal Immigration Agency Found Guilty of Accepting Bribes in Large-Scale Immigration Fraud SchemeRead the Press Release
SANTA ANA, California – A former Senior Immigration Services Officer with the United States Citizenship and Immigration Services (USCIS) has been found guilty of accepting bribes in a long-running immigration fraud scheme.
Jesus Figueroa, 69, of Tujunga, was found guilty yesterday afternoon of one count of conspiracy to commit bribery and to impede the lawful function of government immigration agencies. Figueroa was also convicted of four counts of accepting bribes and three counts of fraudulently misusing his official USCIS seal.
United States District Judge Andrew Guilford, who presided over a six-day trial, is scheduled to sentence Figueroa on June 6, at which time the defendant will face a statutory maximum penalty of 80 years in federal prison.
The evidence at trial showed that Figueroa accepted bribes from a Los Angeles attorney in exchange for approving immigration applications regardless of whether the immigrants applying were entitled to immigration benefits, including lawful permanent residence status.
The attorney who paid the bribes – Kwang Man “John” Lee, 50, of Rancho Cucamonga – pleaded guilty in January 2015 to three counts of bribing a public official and is scheduled to be sentenced in September.
Figueroa and Lee had known each other for years, and both worked together at the agency then known as the Immigration and Naturalization Service (INS), where they oversaw the issuance of immigration benefits, including “Green Cards” and citizenship. In 1999, Lee left the INS and became a lawyer in private practice. Figueroa stayed with the INS, part of which became USCIS with the creation of the Department of Homeland Security. Figueroa continued to review applications for immigration benefits.
“Lee’s law practice became primarily immigration related and he began engaging in fraud and bribery in order to obtain immigration benefits for his clients,” according to court documents. “The public officials Lee would bribe in order to obtain immigration benefits for his clients were primarily the individuals he knew while working for INS,” including Figueroa.
Lee and recruiters working for him would tell foreign national clients that Lee could obtain immigration benefits, such as legal permanent resident status, in exchange for fees that ran as high as $50,000. In some cases, Lee and his recruiters arranged sham marriages for aliens to make it appear that they were entitled to immigration benefits. Figueroa, when reviewing petitions from aliens in sham marriages, knew the marriages were bogus and, because he had taken bribes from Lee, approved the applications for legal permanent residence.
“Defendant betrayed his oath to the United States by selling his services and allowing aliens to improperly reside in the United States,” said United States Attorney Eileen M. Decker. “As this case demonstrates, public officials who are more concerned with illicit profit than upholding the law will lose their positions and face prosecution.”
Figueroa was found guilty of conspiracy, which carries a statutory maximum penalty of five years in federal prison; four counts of bribery, each one of which carries a statutory maximum penalty of 15 years in prison; and three counts of fraudulently misusing his official USCIS seal, each one of which carries a maximum statutory sentence of five years.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Office of Professional Responsibility and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, which received substantial assistance from U.S. Customs and Border Protection, Office of Internal Affairs; the Department of Homeland Security, Office of Inspector General; U.S. Citizenship and Immigration Services, Office of Security and Integrity; and the Los Angeles County Sheriff’s Department.
Former Ochsner Clinic Credit Union Manager Pleads Guilty to Stealing over One Million DollarsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JACQUELINE RAY, 60, of Biloxi, Mississippi, pled guilty as charged today to a Bill of Information which charged her with one count of stealing over one million dollars from Ochsner Clinic Federal Credit Union in connection with bank larceny during her employment there.
According to the Bill of Information, RAY was employed by Ochsner Clinic Federal Credit Union (OCFCU), as the credit union manager and had been employed at OCFCU for nearly thirty years. From 2007 to 2013, RAY stole at least one million dollars by creating numerous fictitious loans on the books of OCFCU. RAY created approximately 149 fictitious loans.
No loan documentation existed on any of the fictitious loans. RAY controlled the day-to-day operation of OCFCU. These fictitious accounts were all coded in the OCFCU data processing system so that no statement of account would be generated, thus hiding RAY’S fraudulent scheme
The proceeds from the fictitious loan would be stolen from the OCFCU in the form of a check drawn on the OCFCU and deposited in accounts controlled by RAY, or converted to cash.
RAY also made false deposits into a local bank to make it appear that she had money in accounts she controlled, when she really did not. RAY would steal cash from these falsely inflated accounts.
RAY faces a possible maximum sentence of ten years imprisonment, and/or a fine of $250,000 and up to three years of supervised release, as well as restitution for the money taken.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the National Credit Union Administration in investigating this matter. Assistant United States Attorney Carter K. D. Guice, Jr. of the Fraud Unit is in charge of the prosecution.
Former Haughton bank employee sentenced for embezzling $1.7 millionRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Haughton bank employee was sentenced Thursday to 42 months in prison for embezzling more than $1.7 million from the bank where he worked.
Jim Scott, 65, of Haughton, La., was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of embezzlement. He was also sentenced to three years of supervised release and ordered to pay $1,794,156.20 restitution. According to evidence presented at the August 7, 2015 guilty plea, Scott embezzled funds from 2000 to 2014 while employed as vice president of operations at Tri-State Bank and Trust in Haughton. The defendant had moved bank-controlled funds from the bank’s general fund to his personal checking account and savings accounts located at the same bank, which caused a $1,794,156.20 loss to the bank.
The U.S. Secret Service conducted the investigation. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.
Former Elkton Man Sentenced to Nine Years in Prison for Distribution of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Micheal Jordon, age 35, formerly of Elkton, Maryland, to nine years in prison, followed by lifetime supervised release, for distribution of child pornography. Judge Hollander also ordered that Jordon must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, on January 21, 2014, Jordon engaged in a private chat with an undercover FBI agent who was working in a chat room known to promote incest. Jordon and the undercover agent discussed Jordon’s interest in young girls, and continued their conversation on an instant messaging application and through text messages. Jordon ultimately sent the undercover officer videos and images of prepubescent females engaged in sexually explicit conduct with adult men.
On February 10, 2014, a search warrant was executed at Jordon’s residence and seized two laptop computers and two external hard drives, as well as other digital media. A forensic examination of the seized material showed Jordon to be in possession of more than 600 images of child pornography.
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 for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney P. Michael Cunningham, who prosecuted the case.
Former Corporate Executives of Samarion, Inc. Sentenced for Conspiracy to Defraud InvestorsRead the Press Release
Jackson, Miss – Mark E. Rodgers, 53, currently from Houston, Texas, the former Chief Executive Officer and President of Samarion Solutions, Inc., in Ridgeland, Mississippi, was sentenced today by U.S. District Judge Daniel P. Jordan III to 60 months in federal prison followed by three years of supervised release for his participation in a securities fraud conspiracy, announced U.S. Attorney Gregory K. Davis, FBI Special Agent in Charge Don Alway, and Joseph Borg, Director of the Alabama Securities Commission. A forfeiture of $312,063.70 in the form of a money judgment was also ordered.
Samer N’Ser, 54, of Ridgeland, the former Chief Technology Officer of Samarion Solutions, Inc., was also sentenced today by U.S. District Judge Daniel P. Jordan III. N’Ser was ordered to serve 37 months in federal prison followed by three years of supervised release for his participation in the conspiracy. A forfeiture of $100,000 in the form of a money judgement was ordered.
Rodgers and N’Ser were ordered to pay $14,884,389.35, jointly and severally, in restitution to defrauded investors.
Beginning in 2006 and continuing until approximately October, 2009, Rodgers and N’Ser conspired to intentionally mislead Samarion, Inc., investors in Mississippi, Alabama and elsewhere. During that time, Samarion, Inc., formerly known as Valence Broadband, Inc., was a corporation operating out of Madison County, Mississippi. The business plan of the company was to produce a viable monitoring system, commonly referred to as the "Samarion Solution", for installation in nursing homes, and elsewhere, that could predict when a patient might fall, and prevent abuse and/or neglect by staff, and improve the over-all care of nursing home patients. Rodgers and N’Ser engaged in a course of business which operated as a fraud and deceit upon the purchasers of the stock, using wire communications and the U.S. Mail to further that activity.
Both Rodgers and N’Ser were involved in the offer and sale of stock to investors and conspired to fraudulently misrepresent to potential investors material facts that would affect their decision to invest, including the financial strength of the company and the true functionality and capacity of the product, among other things. Rodgers and N’Ser sold stock to investors representing that the investment funds would be used solely for the business purposes of the company, and instead used some of the money for their own personal benefit, including personal loans to each, an unauthorized bonus for Rodgers, and the purchase of a 2007 Land Rover SUV titled in Rodgers name. N’Ser and Rodgers fraudulently used Samarion investor funds to loan approximately $500,000 to C First Class Corporation, a company that was unrelated to Samarion or its business purpose, but for which Rodgers also served as a board member. Rodgers fraudulently concealed his personal interest in that company from the Samarion Board of Directors.
"Rodgers and N’Ser convinced approximately 300 clients to invest millions of dollars in their company through fraud and deceit," said U.S. Attorney Gregory K. Davis. "The United States Attorney’s Office will continue to work with federal, state and local investigative agencies to pursue and prosecute those who seek to defraud investors and damage the marketplace." U.S. Attorney Davis praised the work of the FBI, the Alabama Securities Commission, Madison County, Alabama, District Attorney’s Office, and the Madison County, Alabama, Sheriff’s Department.
"Those who illegally use their insider position for personal financial gain threaten the stability and confidence of our financial systems here in Mississippi and throughout the United States," said Don Alway, Special Agent in Charge of the FBI in Mississippi. "Unfortunately, there are likely many more of these kinds of cases out there. Rest assured, the FBI in Mississippi will aggressively investigate these violations."
Joseph Borg, Director of the Alabama Securities Commission said, "I want to thank the Office of Greg Davis, United States Attorney for the Southern District of Mississippi; the Federal Bureau of Investigation; the Office of Robert L. Broussard, Madison County, Alabama District Attorney; the Madison County, Alabama Sheriff’s Department and the Alabama Securities Commission staff for working together to ensure this conviction and to see that justice was served for the victims. The successful prosecution demonstrates the outstanding results that are achieved when federal, state and local law enforcement work together."
This case was prosecuted by Assistant United States Attorney Carla J. Clark, Chief of the Criminal Division. It was investigated by the FBI with assistance from the Alabama Attorney General’s Office and the Alabama Securities Commission.
Former Bank Employees Sentenced for Making False EntriesRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced today in federal court, Chief United States District Judge James C. Dever, III, sentenced APRIL LYNN LOCKLEAR, 36, of Rowland, North Carolina, to 24 months’ imprisonment, followed by 3 years of supervised release. LOCKLEAR was also ordered to pay $500,000 in restitution, jointly and severally, with CHONA KAY OXENDINE, 32, of Shannon, North Carolina. OXENDINE was sentenced to 30 months’ imprisonment, followed by 3 years of supervised release.
On March 24, 2015, LOCKLEAR and OXENDINE were indicted by a federal grand jury on 16 counts related to crimes committed while they were employed by the Lumbee Guaranty Bank headquartered in Pembroke, North Carolina. As a result of a robbery of the branch in Red Springs, North Carolina, on April 9, 2010, an internal audit was conducted and revealed that $500,000 was missing, in addition to the money stolen during the bank robbery.
On November 23, 2015, LOCKLEAR and OXENDINE pled guilty to conspiring to make false entries in bank records.
The investigation of this case was conducted by the Federal Bureau of Investigations. Assistant United States Attorney Felice McConnell Corpening represented the government.
Florence Man Sentenced for Smuggling and Distributing Prescription DrugsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles announced today that Florence resident Willard Lester “Les” Willard, age 51, was sentenced for his role in an international conspiracy to smuggle and distribute approximately $600,000 in prescription drugs in violation of the Food, Drug and Cosmetic Act. United States District Court Judge Bruce Howe Hendricks sentenced Willard to 12 months home confinement and 5 years probation.
Beginning in 2010, Willard ran a fulfillment center for foreign drug companies that illegally sold unapproved pharmaceutical drugs to U.S. residents. He also sold unapproved prescription drugs to U.S. customers through a website, www.click1market.com, that he maintained and controlled. Willard shipped more than 10,000 packages containing the smuggled drugs.
“The safety of the U.S. pharmaceutical drug supply is of critical importance,” said Nettles. “The proliferation of illegal online pharmacies means that individuals like this defendant are putting Americans at risk by selling drugs of unknown quality and efficacy in the interest of profit. This is not merely a regulatory crime and we will not treat it as such.”
The case was investigated by Special Agents with the Food and Drug Administration’s Office of Criminal Investigation, working with Homeland Security Investigations and Inspectors with the United States Postal Inspection Service. Assistant United States Attorney Eric Klumb is prosecuting the case.
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Federal Jury Convicts Arizona Man of Conspiracy and Possession with Intent to Distribute MethamphetamineRead the Press Release
BISMARCK - U. S. Attorney Christopher C. Myers announced that on Feb. 25, 2016, Rocky Thomas Mayfield, 31, from Goodyear, AZ., was found guilty following a three-day trial for Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine; two counts of Possession with Intent to Distribute Methamphetamine; and one count of Possession of a Firearm by a Convicted Felon.
In early 2015, Mayfield and his associates arranged for the delivery of methamphetamine from Arizona to the Williston, North Dakota, area. On Feb. 11, 2015, law enforcement officials conducted a traffic stop near Berthold, ND, where they discovered approximately one pound of methamphetamine in a car that Mayfield had rented. After executing a search warrant at a hotel in Minot, law enforcement officials discovered another ten pounds of methamphetamine, which was believed to be the largest methamphetamine seizure ever in the state of North Dakota. If sold by the ounce, it would have an approximate street value of $200,000-350,000.
A sentencing hearing has yet to be scheduled.
The case was investigated by the Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Berthold Police Department, as well as members of the Ward County Narcotics Task Force, which includes law enforcement officials from the North Dakota Bureau of Criminal Investigation, the Ward County Sheriff’s Department, and the U.S. Border Patrol.
The case was prosecuted by Assistant U. S. Attorney David Hagler and Special Assistant U.S. Attorney Jeremy Ensrud.
Federal Court Permanently Enjoins Eastern Washington Dental Care Provider and Its Owners from Accruing Payroll Tax LiabilitiesRead the Press Release
A federal court in Spokane, Washington has ordered that James Hood, a dentist, and Karen Hood, his wife, ensure that their businesses timely file payroll tax returns and pay payroll taxes, the Department of Justice announced today.
U.S. District Court Judge Rosanna Malouf Peterson for the Eastern District of Washington entered a permanent injunction requiring Dental Care Associates of Spokane Valley, P.S.; Dr. James G. Hood Family Dentistry, aka Spokane Valley Dental Care, aka James G. Hood Family Dentistry, P.S.; Dr. James G. Hood, D.D.S., M.A., P.S., aka James G. Hood D.D.S., P.S., aka James G. Hood D.D.S., M.A., P.S.; Dr. James G. Hood, D.D.S., P.S.; Karen Jean Matsko Hood as Trustee of the Hood Family Trust; Whispering Pine Press, Inc.; James G. Hood and Karen J. Hood, to timely file payroll tax returns and pay any payroll taxes that accrue. Additionally, James and Karen Hood must notify the Internal Revenue Service (IRS) if they start to operate a new business.
According to the United States’ amended civil complaint, the various entities have repeatedly failed to timely file payroll tax returns or pay payroll taxes. Moreover, James and Karen Hood have frustrated payroll tax enforcement by continually abandoning old entities and creating new ones. The district court held that James and Karen Hood had admitted the facts in the complaint by failing to file an answer after the court ordered them to do so. The permanent injunction entered by the court requires the defendants to stay current on their federal employment tax obligations.
Acting Assistant Attorney General Caroline D. Ciraolo of the Tax Division thanked the revenue officer of IRS Field Collection for investigating and preparing the civil case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Farmington Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Kenneth Verzani, 63, of Farmington, N.M., pleaded guilty yesterday in federal court in Albuquerque, N.M., to a methamphetamine trafficking charge under a plea agreement with the U.S. Attorney’s Office. The guilty plea was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso, Texas, and Commander Phil Goodwin of the Region II HITDA Narcotics Task Force.
Verzani was arrested in Nov. 2015, on a five-count indictment charging him with methamphetamine trafficking offenses. According to the indictment, Verzani distributed methamphetamine on five occasions between May 3, 2015 and June 10, 2015, in San Juan County, N.M. The indictment included forfeiture allegations requiring Verzani to forfeit $4,260, proceeds of the drug trafficking charged, to the United States.
During yesterday’s proceedings, Verzani pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Verzani admitted selling quantities of methamphetamine to an undercover officer on the following dates: 56 grams on May 5, 2015; 28 grams on May 28, 2015; 56 grams on June 2, 2015; and 56 grams on June 7, 2015.
In his plea agreement, Verzani admitted that the drug deals took place in his vehicle or his residence. Verzani also admitted that on June 10, 2015, officers seized 1.29 kilograms (2.8 pounds) of methamphetamine from his residence. The plea agreement states that Verzani obtained the methamphetamine from his regular source of supply with the intention of distributing the drugs to the six or seven small-time methamphetamine dealers with whom he regularly dealt.
At sentencing, Verzani faces a statutory maximum penalty of 20 years in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of Homeland Security Investigations and the HIDTA Region II Narcotics Task Force. Assistant U.S. Attorney George C. Kraehe is prosecuting the case.
The HIDTA Region II Narcotics Task Force is comprised of officers and investigators from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department and Aztec Police Department, and is part of the High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Fact Sheet: The Health Care Fraud and Abuse Control Program Protects Conusmers and Taxpayers by Combating Health Care FraudRead the Press Release
The Affordable Care Act Has Helped the Government Fight Fraud, Strengthen Health Insurance Programs, Protect Consumers, and Save Taxpayer Dollars
The Obama Administration is committed to reducing fraud, waste, and abuse across the government. Since 2010, the U.S. Department of Health & Human Services, Office of Inspector General (HHS OIG), the Centers for Medicare & Medicaid Services (CMS), and the U.S. Department of Justice (DOJ) have been using powerful, new anti-fraud tools to protect Medicare and Medicaid by shifting from a “pay and chase” approach toward fraud prevention. Through the groundbreaking Healthcare Fraud Prevention Partnership, stronger relationships have been built between the government and the private sector to help protect all consumers.
These focused efforts are successful. In Fiscal Year (FY) 2015, the government recovered $2.4 billion as a result of health care fraud judgements, settlements and additional administrative impositions in health care fraud cases and proceedings. Since its inception in 1997, the Health Care Fraud and Abuse Control (HCFAC) Program has returned more than $29.4 billion to the Medicare Trust Funds. In this past fiscal year, the HCFAC program has returned $6.10 for each dollar invested.
The Health Care Fraud Prevention and Enforcement Action Team (HEAT), a joint initiative between HHS, OIG, and DOJ, has played a critical role in the fight against health care fraud.
A key component of HEAT is the Medicare Fraud Strike Force – an interagency task force teams comprised of OIG and DOJ analysts, investigators, and prosecutors who target emerging or migrating fraud schemes, including fraud by criminals masquerading as health care providers or suppliers.
Since 2007, the Medicare Fraud Strike Force has charged over 2,536 individuals involved in more than $8 billion in fraud. Many of these charges have resulted from coordinated, multi-district national takedowns. In June 2015, the Medicare Fraud Strike Force conducted its largest ever nationwide health care fraud takedown, which, for the first time, involved non-Strike Force participants and resulted in charges against a record 243 individuals for approximately $712 million in false Medicare and Medicaid billing. Since its inception, the Medicare Fraud Strike Force has maintained a conviction rate of approximately 95 percent and an average term of incarceration of more than four years.
Another powerful tool in the effort to combat health care fraud is the federal False Claims Act. In 2015, DOJ obtained over $1.9 billion in settlements and judgments from civil cases involving fraud and false claims against federal health care programs such as Medicare and Medicaid. Since January 2009, DOJ has recovered more than $17.1 billion for the federal government in cases involving health care fraud. In many of these cases, the department was instrumental in recovering additional billions of dollars for state health care programs.
Other steps the administration has taken to fight fraud include:
State-of-the-Art Fraud Detection Technology: HCFAC funding also supported HHS OIG’s continued enhancement of data analysis capabilities for detecting health care fraud. HHS OIG continues to use data analysis, predictive analytics, trend evaluation, and modeling approaches to better analyze and target oversight of HHS programs. Analysis teams use data to examine Medicare claims for known fraud patterns, identify suspected fraud trends, and calculate ratios of allowed services as compared to national averages; new analytic tools and methods are being developed to perform more innovative and complex data analytics. Combining the expertise of HHS OIG agents, auditors, and evaluators, as well as our HEAT partners, with data analytics and traditional investigative skills has fostered a highly effective model for fighting health care fraud.
Since June 2011, CMS uses the Fraud Prevention System (FPS) on all Medicare fee-for-service claims on a streaming, national basis. Similar to the fraud detection technology used by credit card companies, FPS applies predictive analytics to claims before making payments in order to identify aberrant and suspicious billing patterns. CMS uses leads generated by FPS to trigger actions that can be implemented swiftly. Early results from FPS show significant promise. Since 2011 the FPS identified savings (certified by HHS OIG) associated with these prevention and detection actions were $820 million.[1] This resulted in more than a 10-to-1 return on investment for the first three years of implementation.
Enhanced Provider Screening and Enrollment Requirements: Provider enrollment is the gateway to billing the Medicare program, and CMS implemented new critical safeguards in efforts to better screen providers enrolling in the Medicare program. The Affordable Care Act required CMS to revalidate all existing 1.6 million Medicare suppliers and providers under new risk-based screening requirements. As a result of revalidation and other proactive initiatives, CMS deactivated more than 500,000 enrollments meaning, billing privileges were stopped for these providers but may be restored upon the submission and approval of an updated enrollment application. CMS also revoked more than 34,000 enrollments meaning, these providers were barred from re-entering the Medicare program for one to three years. These enhanced screening and enrollment requirements have led to more than $2.4 billion in estimated Medicare savings since 2010.
In May 2014, CMS issued a final rule that requires prescribers of Part D drugs to enroll in Medicare and undergo screening. In December 2014, CMS issued a final rule that provides additional authority to remove bad actors from the Medicare program, including providers affiliated with outstanding Medicare debts and providers that have a pattern or practice of abusive billing.
Health Care Fraud Prevention Partnership (HFPP): The Obama Administration has joined with private insurers, states, and associations in the HFPP to prevent health care fraud on a national scale. To detect and prevent payment of fraudulent billings, HFPP participants exchange information and best practices across the public and private sectors. Since 2013, the HFPP has conducted eight studies that enabled partners, including DOJ, HHS-OIG, FBI, and CMS, states, private plans, and associations to take substantive actions, such as payment system edits, revocations, and payment suspensions to stop fraudulent payments and improve the government’s collective forces against fraud, waste, and abuse.
Senior Medicare Patrols: The Obama Administration has expanded funding for Senior Medicare Patrols (SMP) – groups of volunteers who educate and empower their peers to identify, prevent, and report health care fraud. In 2014, the SMP projects had a total of 5,249 active volunteers. These volunteers conducted 202,862 one-on-one counseling sessions and 14,692 group education sessions. In total, 452,714 beneficiaries attended these group education sessions. The projects also reported conducting 110,615 media airings (e.g., print, radio, television, or electronic) to provide education about fraud and the services of the project. Additionally, the projects reported conducting 12,417 community outreach education events. Local SMP offices provide assistance when issues are identified, ensuring that mistakes are corrected and suspected fraud is referred to the appropriate authorities. Since the program’s inception 18 years ago, $122 million in total estimated savings to Medicare and Medicaid is attributable to SMP projects.
[1] Note that a portion of the total FPS savings is comprised of payments prevented due to provider revocations. This amount is a subset of the $2.4 billion total prevented payments from revocations reported in section 'Enhanced Provider Screening and Enrollment Requirements' of this report. Therefore, comparison of these two metrics may result in double-counting.
District Man Sentenced to 30 Months in Prison for Robbing Pedestrians with a BB-GunRead the Press Release
WASHINGTON – Kyree Black, 18, of Washington, D.C., was sentenced today to 30 months in prison for robbing pedestrians with a BB-gun last fall in a Capitol Hill neighborhood, U.S. Attorney Channing D. Phillips announced.
Black pled guilty in December 2015, in the Superior Court of the District of Columbia, to two counts of robbery and one count of receiving stolen property. The Honorable Anita Josey-Herring sentenced him to a total of 48 months in prison, but suspended 18 of the months on the condition that he successfully complete three years of supervised release.
According to the government’s evidence, Black robbed three men in the Capitol Hill neighborhood near Nationals Park in Southeast Washington. On Oct. 21, 2015, at approximately 9 p.m., he approached the first victim, who was walking down the sidewalk in the unit block of L Street SE, displayed a gun, and demanded his cell phone. Fifteen minutes later, and one block away, in the unit block of K Street SE, the defendant found his next victim, who he also approached and robbed of a cell phone at gunpoint. Then, on Oct. 23, 2015, at about 9:15 p.m., Black again approached a person on the sidewalk in the 900 block of New Jersey Avenue SE, displayed a gun, and robbed the victim of a laptop and a cell phone. The last robbery was witnessed by an off-duty police officer and the defendant was immediately apprehended.
The phones from all three victims were found in Black’s pockets, together with a BB-gun that resembled a semi-automatic firearm. Each of the victims had relinquished their property because they feared for their lives.
At the sentencing hearing, one victim described the robbery as a “terrible event” and he specifically thanked officers from the Metropolitan Police Department (MPD) for “the police support I received after this event.”
In announcing the sentence, U.S. Attorney Phillips commended the work of the First District Detectives Division, crime scene officers, and the patrol officers in both the First and Seventh Police Districts of the Metropolitan Police Department. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Jennifer Allen of the Victim Witness Unit. In addition, he commended the work of Assistant U.S. Attorneys Dineen A. Baker and Douglas Klein, who investigated and prosecuted the case.
District Man Sentenced to 18 Years in Prison for Murder of Cousin in Northeast WashingtonRead the Press Release
WASHINGTON – Roosevelt Robinson, 67, of Washington, D.C., was sentenced today to 18 years in prison on a charge of second-degree murder while armed stemming from the shooting death last summer of his cousin, U.S. Attorney Channing D. Phillips announced.
Robinson pled guilty to the charge in December 2015 in the Superior Court of the District of Columbia. He was sentenced by the Honorable Michael Ryan. Following his prison term, Robinson will be placed on five years of supervised release.
According to the government’s evidence, on Friday, Aug. 21, 2015, at approximately 10:35 a.m., Robinson rode his bicycle to the house of his cousin, Loretta Carswell, 63, in the 3700 block of 18th Street NE. He confronted Ms. Carswell outside, accusing her of stealing a ring from him that he intended to give to his daughter. This was an ongoing accusation based on a time when Ms. Carswell safeguarded some of Robinson’s valuables. Every time this issue had been raised, Ms. Carswell denied knowing what Robinson was talking about.
When Robinson confronted Ms. Carswell on Aug. 21, 2015 and asked her about the ring, Ms. Carswell said she did not have it and gave Robinson a look that he interpreted as dismissive. Robinson told her: “Girl, you know I should kill you for doing what you did.” Ms. Carswell responded by saying, “You can go ahead and kill me if you want to, I done told you I don’t have your ring.” At that point, Robinson pulled out a Ruger .357-caliber Magnum revolver and shot Ms. Carswell one time in the head in front of her home. The bullet entered her forehead.
Immediately after the shooting, Robinson rode his bicycle down the street to his home in the 3600 block of 18th Street NE. Robinson barricaded himself inside until the Metropolitan Police Department (MPD) was able to arrest him approximately 30 hours later. In an interview with the police, Robinson confessed to shooting his cousin in the head.
In announcing the sentence, U.S. Attorney Phillips commended the work of the detectives of the Criminal Investigations Division Homicide Branch, crime scene officers, and the Fifth Police District of the Metropolitan Police Department. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Marcia Rinker of the Victim/Witness Assistance Unit and Paralegal Specialist Vanessa Trent-Valentine. He also praised the efforts of Assistant U.S. Attorney Christine Macey, who investigated and prosecuted the case.
District Court Enters Permanent Injunction to Prevent Florida Man from Distributing Unapproved Herpes CureRead the Press Release
The U.S. District Court for the Middle District of Florida entered a consent decree of permanent injunction against James R. Hill, of Ocala, Florida, to prevent the distribution of unapproved drugs masquerading as a cure for the herpes virus, the Department of Justice announced today.
The department filed a complaint in the U.S. District Court for the Middle District of Florida alleging that Hill sold a product, Viruxo Immune Support (Viruxo), that he marketed as a “natural herpes medicine” that can “Stop Herpes Outbreaks.” Although labeled as a dietary supplement, Viruxo qualifies as an unapproved and misbranded drug, according to the complaint, because of Hill’s claims that it could treat the herpes virus despite the absence of approval from the Food and Drug Administration (FDA) that it was safe and effective for such a use.
The complaint further alleged that Hill defrauded consumers by promoting Viruxo to cure, mitigate, treat, or prevent a disease despite the absence of well-controlled clinical studies or other credible scientific substantiation to support those claims. Hill made his misleading claims about Viruxo despite having received a warning letter from FDA and the Federal Trade Commission advising him that his product is an unapproved drug and was misbranded.
“Unfortunately, many dietary supplements cannot do what their sellers claim they can do,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “In some instances, consumers might be choosing supplements over other proven therapies for serious conditions under the mistaken belief that these products can help. The Department of Justice will continue to work aggressively with FDA to prevent the distribution of unapproved drugs.”
“Consumers should exercise extreme caution when purchasing supplements online,” warned U.S. Attorney A. Lee Bentley, III for the Middle District of Florida. “Viruxo was marketed to consumers as a ‘medicine’ for herpes, even though this product was not approved by the FDA and there were no well-controlled clinical studies to support the therapeutic claims.”
“Products being sold as treatments for which they have not been studied or approved defrauds consumers and can cause harm if proper treatment is delayed,” said Associate Commissioner Melinda Plaisier for FDA regulatory affairs. “When a company refuses to comply with regulations, we will take enforcement action to protect the public.”
Hill agreed to settle the case and be bound by a consent decree of permanent injunction. Although he has ceased selling Viruxo, the consent decree requires him to notify FDA and receive its permission before resuming sale of Viruxo or distribution of any food, including a dietary supplement, or drug. To obtain permission from FDA, FDA must first determine that Hill’s practices comply with the Federal Food, Drug and Cosmetic Act.
The government is represented by Trial Attorney Daniel E. Zytnick of the Civil Division’s Consumer Protection Branch and Lacy R. Harwell Jr. of the U.S. Attorney’s Office for the Middle District of Florida, with the assistance of Senior Counsel Claudia J. Zuckerman of the Department of Health and Human Services’ Office of General Counsel – Food and Drug Division.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Middle District of Florida, visit its website at http://www.justice.gov/usao-mdfl.
District Court Enters Permanent Injunction to Prevent Florida Man from Distributing Unapproved Herpes CureRead the Press Release
Tampa, FL – The U.S. District Court for the Middle District of Florida entered a consent decree of permanent injunction against James R. Hill, of Ocala, Florida, to prevent the distribution of unapproved drugs masquerading as a cure for the herpes virus, the Department of Justice announced today.
The department filed a complaint in the U.S. District Court for the Middle District of Florida alleging that Hill sold a product, Viruxo Immune Support (Viruxo), that he marketed as a “natural herpes medicine” that can “Stop Herpes Outbreaks.” Although labeled as a dietary supplement, Viruxo qualifies as an unapproved and misbranded drug, according to the complaint, because of Hill’s claims that it could treat the herpes virus despite the absence of approval from the Food and Drug Administration (FDA) that it was safe and effective for such a use.
The complaint further alleged that Hill defrauded consumers by promoting Viruxo to cure, mitigate, treat, or prevent a disease despite the absence of well-controlled clinical studies or other credible scientific substantiation to support those claims. Hill made his misleading claims about Viruxo despite having received a warning letter from FDA and the Federal Trade Commission advising him that his product is an unapproved drug and was misbranded.
“Consumers should exercise extreme caution when purchasing supplements online,” warned U.S. Attorney A. Lee Bentley, III for the Middle District of Florida. “Viruxo was marketed to consumers as a ‘medicine’ for herpes, even though this product was not approved by the FDA and there were no well-controlled clinical studies to support the therapeutic claims.”
“Unfortunately, many dietary supplements cannot do what their sellers claim they can do,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “In some instances, consumers might be choosing supplements over other proven therapies for serious conditions under the mistaken belief that these products can help. The Department of Justice will continue to work aggressively with FDA to prevent the distribution of unapproved drugs.”
Hill agreed to settle the case and be bound by a consent decree of permanent injunction. Although he has ceased selling Viruxo, the consent decree requires him to notify FDA and receive its permission before resuming sale of Viruxo or distribution of any food, including a dietary supplement, or drug. To obtain permission from FDA, FDA must first determine that Hill’s practices comply with the Federal Food, Drug and Cosmetic Act.
The government is represented by Trial Attorney Daniel E. Zytnick of the Civil Division’s Consumer Protection Branch and Lacy R. Harwell Jr. of the U.S. Attorney’s Office for the Middle District of Florida, with the assistance of Senior Counsel Claudia J. Zuckerman of the Department of Health and Human Services’ Office of General Counsel – Food and Drug Division.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Middle District of Florida, visit its website at http://www.justice.gov/usao-mdfl.
Denver Man Found Guilty Following Jury Trial of Interference with a Flight CrewRead the Press Release
DENVER – U.S. Attorney John Walsh and FBI Denver Division Special Agent in Charge Thomas Ravenelle announced that Joseph Wayne Lynch, II was found guilty this week following a three-day jury trial before U.S. District Court Judge Raymond P. Moore of interference with flight crew members and attendants. The jury deliberated for approximately 3 hours before reaching their guilty verdict. Lynch, who is free on bond, is scheduled to appear next for sentencing, which is scheduled for May 16, 2016.
According to evidence submitted during trial, as well as court documents, on August 4th, 2015, Joseph Wayne Lynch boarded U.S. Airways Flight 580 from Philadelphia to Denver. Having missed his previous connection, the airline upgraded Lynch to first class to accommodate the inconvenience. Because of his loud and odd behavior upon boarding, the lead flight attendant limited his alcohol intake. After the flight took off, he swapped seats to sit next to a young lady with whom he wanted to strike up a conversation. He became increasingly upset when the flight attendant denied him further alcoholic beverages, which made him disruptive and threatening. At numerous times during the flight the defendant also had inappropriate physical contact with the flight attendant, including placing his hand on the small of her back repeatedly, and finally grabbing her and kissing her neck. When instructed that his conduct was inappropriate, he then began a slew of profanities directed at flight attendants and passengers. Mr. Lynch was so loud that the plane’s captain heard his rants in the cockpit – over radio traffic and despite noise cancelling headphones. The flight attendants got an ice hammer, a pot of hot coffee, plastic handcuffs and alerted two able-bodied passengers to assist in the event that Mr. Lynch got even further out of hand. When confronted, Lynch responded by repeatedly stating, “Let’s go!” He then promised to bring the airline down. He also (falsely) claimed to be a former Green Beret / Special Forces, and he showed off his purported bullet wounds, along with a photo of his pot farm.
Normally the first class section requires only one flight attendant. Because of the defendant’s misconduct, a second flight attendant was in the first class section for half the flight for safety reasons. Lynch’s continued escalation of threats and inappropriate behavior eventually led to the Captain temporarily turning over flying duties of the aircraft to the first officer, lock-down the cockpit, and notify the airline of the situation and request law enforcement be present at the gate upon arrival. When Denver Police officers arrived, and later an FBI Special Agent, Lynch redirected his threats and anger towards them.
“As everyone who flies on airliners knows, a drunk, abusive passenger acting out against other passengers and the flight crew is not merely an inconvenience, but a serious threat to the safety of everyone on the flight,” said U.S. Attorney John Walsh. “This sort of boorish, abusive and threatening behavior will not be tolerated by the flight crew (and fellow passengers) and constitutes a federal crime that we will prosecute forcefully to protect the flying public. May this case serve as a warning to others.”
The defendant faces not more than 20 years in federal prison, and up to a $250,000 fine.
This case was investigated by the FBI with assistance from the Denver Police Department.
Lynch was prosecuted by Assistant U.S. Attorneys Jason St. Julien and Mark Pestal.
Daycare employee found guilty on child pornography chargesRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today the conviction of an Indianapolis man on seven counts of production and attempted production of child pornography. Ali Al-Awadi, 22, Indianapolis was found guilty after a four-day trial before U.S. District Judge Tanya Walton Pratt.
“The jury convicted Al- Awadi of the hideous and terrifying crime that he committed,” said Minkler. “Because of their decision, our community is a safer place to raise our children. This office will not hesitate to use the federal hammer in the most severe way possible against anyone who victimizes a child.”
Al-Awadi worked as a day care provider at Children’s Choice Learning Center at St. Vincent Hospital in Indianapolis. While caring for several children, he molested a four year old girl while she was napping and took several explicit photos of her on his cell phone. He took these images to later fuel his sexual fantasies.
According to Assistant United States Attorneys Kristina Korobov and Bradley Shepard who prosecuted this case for the government, Al-Awadi faces a minimum of 15 years and a maximum of life in prison. No future sentencing date has been set.
Court Accepts Pleas in Adulterated and Misbranded Cheese CasesRead the Press Release
PITTSBURGH - Two cheese companies and a cheese company executive pleaded guilty in federal court today to charges relating to their introduction of adulterated and misbranded cheese products into interstate commerce, U.S. Attorney David J. Hickton announced today.
Universal Cheese & Drying, Inc. and International Packing, LLC each pleaded guilty to one count of conspiring to introduce misbranded and adulterated cheese products into interstate commerce and to commit money laundering before U.S. District Judge Mark R. Hornak for the Western District of Pennsylvania. Each company also agreed to forfeit to the United States $500,000. Castle Cheese Company executive Michelle Myrter, 44, of Harmony, Pennsylvania, also pleaded guilty as a responsible corporate officer to one misdemeanor count of aiding and abetting the introduction of adulterated and misbranded cheese products into interstate commerce, in violation of provisions of the Federal Food, Drug and Cosmetic Act.
“The Department of Justice prosecutes people and companies who introduce adulterated or misbranded food into interstate commerce,” stated U.S. Attorney Hickton. “In this case, the fraud was perpetrated on consumers who purchased parmesan and romano cheeses that were inferior to what they believed they were buying.”
In connection with the guilty pleas, the court was advised that the corporate defendants packaged and sold cheese under various labels at the Castle Cheese facility in Slippery Rock, Pennsylvania. The cheese was distributed through retail, food service, and wholesale customers throughout the United States. The corporate defendants had knowledge of the Food and Drug Administration’s (FDA) regulations and standards of identity for parmesan and romano cheese products and were aware that the products did not conform to FDA standards of identity for real parmesan and romano cheese, but represented to customers that the products contained 100 percent real parmesan and romano cheese. The corporate defendants also knew that the cheese products were misbranded because they did not bear labels that accurately reflected the products’ ingredients. The corporate defendants likewise knew that the cheese products were also adulterated in that certain ingredients had been substituted or omitted and other ingredients had been added. The defendants used proceeds from the sale of the misbranded and adulterated cheese products to continue the operation of the cheese manufacturing and packaging at the Slippery Rock facility.
The adulterated romano and parmesan products were sold under several brand names, the owners of which were unaware of the fraud. The adulterated products are no longer available for sale. At no time did the adulterated products pose a threat to the health or safety of consumers.
Judge Hornak will set sentencing date at a later time. For the corporate defendants, the law provides for a fine of $500,000 for each defendant. For the individual defendant, the law provides for a total sentence of one year in prison, a fine of $100,000, 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 released Myrter on a personal recognizance bond.
Assistant U.S. Attorney Tonia Sulia Goodman is prosecuting these cases on behalf of the government.
Federal agents with the FDA’s Office of Criminal Investigations and the Internal Revenue Service (IRS)’s Criminal Investigation conducted the investigation that led to the prosecutions of Universal Cheese & Drying, Inc., International Packing, LLC and Michelle Myrter.
Court Accepts Pleas in Adulterated and Misbranded Cheese CasesRead the Press Release
Two cheese companies and a cheese company executive pleaded guilty in federal court today to charges relating to their introduction of adulterated and misbranded cheese products into interstate commerce, U.S. Attorney David J. Hickton announced today.
Universal Cheese & Drying, Inc. and International Packing, LLC each pleaded guilty to one count of conspiring to introduce misbranded and adulterated cheese products into interstate commerce and to commit money laundering before U.S. District Judge Mark R. Hornak for the Western District of Pennsylvania. Each company also agreed to forfeit to the United States $500,000. Castle Cheese Company executive Michelle Myrter, 44, of Harmony, Pennsylvania, also pleaded guilty as a responsible corporate officer to one misdemeanor count of aiding and abetting the introduction of adulterated and misbranded cheese products into interstate commerce, in violation of provisions of the Federal Food, Drug and Cosmetic Act.
“The Department of Justice prosecutes people and companies who introduce adulterated or misbranded food into interstate commerce,” stated U.S. Attorney Hickton. “In this case, the fraud was perpetrated on consumers who purchased parmesan and romano cheeses that were inferior to what they believed they were buying.”
In connection with the guilty pleas, the court was advised that the corporate defendants packaged and sold cheese under various labels at the Castle Cheese facility in Slippery Rock, Pennsylvania. The cheese was distributed through retail, food service, and wholesale customers throughout the United States. The corporate defendants had knowledge of the Food and Drug Administration’s (FDA) regulations and standards of identity for parmesan and romano cheese products and were aware that the products did not conform to FDA standards of identity for real parmesan and romano cheese, but represented to customers that the products contained 100 percent real parmesan and romano cheese. The corporate defendants also knew that the cheese products were misbranded because they did not bear labels that accurately reflected the products’ ingredients. The corporate defendants likewise knew that the cheese products were also adulterated in that certain ingredients had been substituted or omitted and other ingredients had been added. The defendants used proceeds from the sale of the misbranded and adulterated cheese products to continue the operation of the cheese manufacturing and packaging at the Slippery Rock facility.
The adulterated romano and parmesan products were sold under several brand names, the owners of which were unaware of the fraud. The adulterated products are no longer available for sale. At no time did the adulterated products pose a threat to the health or safety of consumers.
Judge Hornak will set sentencing date at a later time. For the corporate defendants, the law provides for a fine of $500,000 for each defendant. For the individual defendant, the law provides for a total sentence of one year in prison, a fine of $100,000, 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 released Myrter on a personal recognizance bond.
Assistant U.S. Attorney Tonia Sulia Goodman is prosecuting these cases on behalf of the government.
Federal agents with the FDA’s Office of Criminal Investigations and the Internal Revenue Service (IRS)’s Criminal Investigation conducted the investigation that led to the prosecutions of Universal Cheese & Drying, Inc., International Packing, LLC and Michelle Myrter.