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25 February 2016
Man Pleads Guilty to Intentionally Crashing into an Oklahoma Highway Patrol Vehicle During an Interstate Drug RunRead the Press Release
Oklahoma City, Oklahoma – On February 23, 2016, PATRICK SAMIR ASFOUR, age 39, of Palm Coast, Florida, pled guilty to traveling interstate to commit violence in furtherance of a drug offense, possessing marijuana with intent to distribute, and carrying a gun during a drug trafficking crime, announced Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma. With respect to the first crime, Asfour admitted that he intentionally struck an Oklahoma Highway Patrol trooper’s vehicle while the trooper was conducting a traffic stop in connection with the drug trafficking.
According to a superseding indictment filed in January 2016, Asfour and a co-defendant transported marijuana from California to Florida in January 2015 by using two cars, a scheme called “tandem driving.” Asfour’s co-defendant drove a “load” car that carried approximately 136 pounds of hydroponic marijuana with an estimated value of $400,000 and a 9mm pistol. Asfour drove an “escort” vehicle. Asfour and his co-defendant agreed that the escort vehicle would strike a law enforcement cruiser if the load vehicle was pulled over. They hoped this would create a diversion that would allow the load vehicle to slip away.
On January 30, 2015, the load vehicle committed a traffic violation as it was traveling eastbound on Interstate 40 in Canadian County, Oklahoma. As an OHP trooper stopped the load car, Asfour crashed the escort vehicle into the OHP cruiser. Asfour and the co-defendant were arrested and charged with drug trafficking and weapons violations.
At sentencing, Asfour faces up to 20 years in prison on the interstate-travel count, plus three years of supervised release and a $250,000 fine. He also faces up to 30 years in prison on the possession-with-intent-to-distribute count, in addition to three years of supervised release and a $1,000,000 fine. Finally, he will be sentenced to at least five years in prison and possibly up to life imprisonment on the firearm count, a sentence which will run consecutive to the sentences for all other counts, in addition to five years of supervised release and a $250,000 fine.
Reference is made to the superseding indictment and other public filings for further information.
This case is the result of an investigation by the Oklahoma Highway Patrol; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Drug Enforcement Administration. It is being prosecuted by Assistant U.S. Attorneys Edward J. Kumiega and Nicholas J. Patterson.
Lufkin, Texas, man pleads guilty to possession with intent to distribute cocaineRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Lufkin, Texas, man pleaded guilty to possessing cocaine.
Laraymeon Jevon Watson, 21, of Lufkin, pleaded guilty before U.S. District Judge S. Maurice Hicks Jr. to one count of possession with intent to distribute cocaine. According to the guilty plea, Watson received cocaine powder and Ecstasy pills from a supplier in Texas. When his vehicle was stopped on June 24, 2015 near Greenwood, La., for a traffic violation, approximately 8 ounces of cocaine powder and more than 3,000 Ecstasy pills were found. He later admitted he planned to sell the drugs.
Watson faces up to 20 years in prison, three years of supervised release, a $1 million fine and restitution. A sentencing date of June 1, 2016 was set.
The defendant was arrested as part of Organized Crime Drug Enforcement Task Force (OCDETF) Operation “River City Blues.” The DEA, the Louisiana State Police, and the Lufkin Police Department investigated the case. The OCDETF program is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for targeting national and regional level drug trafficking organizations, coordinating the necessary law enforcement entities and resources, and disrupting and dismantling of major drug trafficking organizations.
Assistant U.S. Attorney James G. Cowles Jr. is prosecuting the case.
Logan County man sentenced to over three years in Federal prison for drug crimeRead the Press Release
CHARLESTON, W.Va. – A Logan County man was sentenced to three years and seven months in federal prison for distribution of oxymorphone, announced Acting United States Attorney Carol Casto. William Toler, Jr., 29, of Chapmanville, previously pleaded guilty to the federal drug crime in August 2015.
Toler admitted that on April 10, 2014, he sold a 40 mg oxymorphone pill to a confidential informant working with law enforcement. The drug deal took place at a residence near Chapmanville. Toler further admitted that he was responsible for over 20 grams of oxymorphone and over 20 grams of oxycodone during the course of his drug dealing activity. During the sentencing hearing, the Court noted that Toler had been a significant law enforcement problem in his community and a substantial source of prescription pills.
This case was investigated by the West Virginia State Police and the U.S. Route 119 Drug Task Force. Assistant United States Attorney Monica D. Coleman is in charge of the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
This prosecution was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Lewiston Man Sentenced to Nine Years for Drug TraffickingRead the Press Release
Contact: David B. Joyce
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Akylle Murchison, 24, of Lewiston, Maine, was sentenced today in U.S. District Court by Judge George Z. Singal to nine years in prison and five years of supervised release for conspiracy to distribute cocaine and cocaine base (also known as crack cocaine) and possession with intent to distribute bk-MDEA (a bath salt). He pleaded guilty to the charges on May 27, 2015.
According to court records, between 2011 and 2014, Murchison and others obtained cocaine and crack cocaine in Massachusetts and brought the drugs to Maine for distribution in Androscoggin County. On July 23, 2014, law enforcement officers executed a search warrant at a residence in Lewiston. Murchison fled out the back door when police entered. Police seized bk-MDEA and over $53,000 in drug proceeds during the search.
This case was investigated by the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency, the Maine State Police, the Auburn and Lewiston Police Departments, and the Androscoggin County Sheriff’s Office. This investigation is part of the ongoing effort of the Organized Crime Drug Enforcement Task Forces (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Lewiston Man Sentenced to 14 Years for Drug TraffickingRead the Press Release
Contact: David B. Joyce
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Romelly Dastinot a/k/a “Marcus,” 35, of Lewiston, Maine, was sentenced yesterday in U.S. District Court by Judge Jon D. Levy to 14 years in prison and three years of supervised release for conspiracy to distribute cocaine base (also known as crack cocaine), heroin and oxycodone. He pleaded guilty on April 17, 2015.
According to Court records, between 2012 and 2014, Dastinot was a leader of a drug trafficking organization that transported crack cocaine, heroin and oxycodone from Massachusetts to Androscoggin County, Maine, for further distribution. Twelve co-defendants have already been sentenced in connection with this investigation. Three other co-defendants await sentencing.
This case was investigated by the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency, the Maine State Police, the Auburn and Lewiston Police Departments, and the Androscoggin County Sheriff’s Office. This investigation is part of the ongoing effort of the Organized Crime Drug Enforcement Task Forces (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Las Cruces Man Sentenced to Prison for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Ramiro Saenz, 28, of Las Cruces, N.M., was sentenced yesterday in federal court to 72 months in federal prison followed by three years of supervised release for violating the federal firearms laws.
Saenz was arrested in Sept. 2014, on a criminal complaint charging him with being a felon in possession of firearms and ammunition in Doña Ana County, N.M. According to the complaint, on Aug. 21, 2014, an officer of the Las Cruces Police Department recovered 1.6 grams of methamphetamine, a handgun and multiple rounds of ammunition from Saenz during a routine traffic stop.
Saenz was subsequently indicted on the same charge on Dec. 10, 2014. The indictment indicated that Saenz was prohibited from possessing firearms or ammunition because he previously had been convicted twice of being a felon in possession of a firearm and ammunition, aggravated assault and tampering with evidence. On March 12, 2015, Saenz pled guilty to the indictment.
This case was investigated by the Las Cruces office of Homeland Security Investigations and the Las Cruces Police Department and was prosecuted by Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office.
KC Man, Woman Charged with Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., couple were charged in federal court today for robbing the U.S. Bank inside the Price Chopper grocery store on 103rd Street in Kansas City, Mo., on Saturday afternoon.
Austin D. Bales, 23, and Sherry L. Ridout, 22, both of Kansas City-North, were charged with bank robbery in a federal criminal complaint filed in the U.S. District Court in Kansas City, Mo.
According to an affidavit filed in support of today’s criminal complaint, Ridout approached a bank teller at U.S. Bank, 1030 W. 103rd St., at approximately 3:50 p.m. Saturday, Feb. 20, 2016. Ridout, talking on her cell phone, reached into her left jacket pocket and produced a note, which she placed on the teller counter. Ridout allegedly told the teller to give her all of the money from the top drawer. The note, according to the affidavit, said something along the lines of: “We have the bank surrounded, won’t hesitate to come back there, only clean bills, keep your hands visible, money is replaceable, Lifes aren’t.”
The teller gave Ridout $1,500, the affidavit says.
After bank surveillance photos of Ridout were broadcast by local media, the affidavit says, investigators received several phone calls that identified her as the robber and identified Bales as her boyfriend.
On Wednesday, Feb. 24, 2016, police officers conducted a traffic stop near the Walmart at 5261 N.E. Antioch Rd., Kansas City, Mo., of a van that matched the description of a vehicle identified in connection to the bank robbery. A witness had told investigators she saw Ridout being dropped off and later picked up by a van that fled the area after the robbery. When police officers stopped the van yesterday, it was being driven by Bales’s father with Bales and Ridout in the back seat.
Law enforcement officers searched the residence of Bales’s father, where Bales and Ridout were living in the basement, and found a Walmart bag containing apparent shredded U.S. currency and a Sucrets box containing a white substance that field tested positive for amphetamine.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Justice Department Reaches Agreement with the City of Miami and the Miami Police Department to Implement Reforms on Officer-Involved ShootingsRead the Press Release
The Justice Department has reached a comprehensive settlement agreement with the city of Miami and the Miami Police Department (MPD) resolving the Justice Department’s investigation of officer-involved shootings by MPD officers, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division and U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida.
The settlement, which was approved by Miami’s city commission today and will go into effect when the agreement is signed by all parties, resolves claims stemming from the Justice Department’s investigation into officer-involved shootings by MPD officers, which was conducted under the Violent Crime Control and Law Enforcement Act of 1994. The investigation’s findings, issued in July 2013, identified a pattern or practice of excessive use of force through officer-involved shootings in violation of the Fourth Amendment of the Constitution.
The city’s compliance with the settlement will be monitored by an independent reviewer, former Tampa, Florida, Police Chief Jane Castor. Under the settlement agreement, the city will implement comprehensive reforms to ensure constitutional policing and support public trust. The settlement agreement is designed to minimize officer-involved shootings and to more effectively and quickly investigate officer-involved shootings that do occur, through measures that include:
- enhanced supervision of first-line officers;
- enhanced training, including de-escalation training;
- improvements to internal investigations of officer-involved shootings;
- a more stringent mechanism under which a shooting officer’s return to work is authorized; and
- a mechanism to ensure community participation in the monitoring process.
“This settlement represents a renewed commitment by the city of Miami and Chief Rodolfo Llanes to provide constitutional policing for Miami residents and to protect public safety through sustainable reform,” said Principal Deputy Assistant Attorney General Gupta. “The agreement will help to strengthen the relationship between the MPD and the communities they serve by improving accountability for officers who fire their weapons unlawfully, and provides for community participation in the enforcement of this agreement.”
“Today's agreement is the result of a joint effort between the Department of Justice and the City of Miami to ensure that the Miami Police Department continues its efforts to make our community safe while protecting the sacred Constitutional rights of all of our citizens,” said U.S. Attorney Ferrer. “Through oversight and communication, the agreement seeks to make permanent the positive changes that former Chief Orosa and Chief Llanes have made, and we applaud the City Commission’s vote.”
The settlement agreement builds upon important reforms implemented by the city since the Justice Department issued its findings, including:
- transfer of responsibility for criminal investigations of officer involved shootings from the MPD Homicide Unit to the Florida Department of Law Enforcement;
- downsizing of the Tactical Operations Section, which included some of the more aggressive specialized units; and
- creation of High-Liability Review Board to review problematic incidents.
The investigation was conducted by attorneys and staff from the Civil Rights Division’s Special Litigation Section and the Civil Division of the U. S. Attorney’s Office of the Southern District of Florida.
Jury Convicts Memphis Man for Sex Trafficking of MinorsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that a federal jury has convicted TIMOTHY JONES, a/k/a “Lucci,” “King Lucci,” “Lucci Loco,” age 25, from Memphis, for his role in sex trafficking two minors into the New Orleans area for the purposes of those minors engaging in prostitution. The jury convicted JONES on all eight counts with which he was charged, including conspiracy to commit sex trafficking, sex trafficking two minor females through the use of force, fraud, and coercion, transporting a minor across state lines for the purpose of her engaging in prostitution.
“As proven at trial, Jones engaged in the sex trafficking of minors and used violence as a means of coercion,” stated U.S. Attorney Polite. “He will now spend at least 15 years in prison for his reprehensible actions.”
According to evidence presented at trial, in early December 2013, JONES met and began recruiting Minor Victim 1, a 17-year-old female from Baton Rouge, to work for him in prostitution, performing numerous “dates” per day, based on quotas he set for her. For approximately three weeks, Minor Victim 1 worked for him, before escaping the New Orleans area.
In early January 2014, JONES and a co-conspirator recruited Minor Victim 2, a sixteen-year-old female, in Memphis and coerced her to work for him in prostitution. JONES then took Minor Victim 2 to Louisville, Kentucky, to work in prostitution. Thereafter, JONES transported Minor Victim 2 to New Orleans to work for him in prostitution. Minor Victim 2 worked for JONES until February 11, 2014, when a United States Marshals Task Force recovered her and arrested JONES at a hotel in downtown New Orleans.
JONES required Victim 1 and Victim 2 to give him all of the money they earned from engaging in prostitution. JONES advertised prostitution dates with Victim 1 and Victim 2 using an online classified website and also forced them to solicit prostitution dates on Bourbon Street and on Chef Menteur Highway. JONES “paid” Minor Victim 1 a total of $10 for her work. JONES instructed both victims on how much to charge for sex, how to solicit “dates,” and how to avoid detection by law enforcement. He also instructed them to steal credit cards, wallets, cash, and other valuables from customers. Other females testified at trial that JONES exploited them in a similar manner.
JONES used a variety of means to control his victims, whom he knew were minors. JONES beat Victim 1 and Victim 2 to punish them for disrespecting him or not earning enough money. He also slapped and punched them to keep them from leaving him. Further, while in front of Minor Victim 1 and Minor Victim 2, JONES brutally beat other females who worked for him as prostitutes as a means of threatening and intimidating his minor victims into complying with his demands.
JONES faces a mandatory minimum term of imprisonment of fifteen years and a maximum sentence of life in prison for his crimes. Sentencing before Judge Martin L.C. Feldman has been scheduled for June 29, 2016, at 1:30 pm.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation – New Orleans Division and the United States Department of Homeland Security – Homeland Security Investigations, with cooperation from the FBI’s Memphis Field Office in investigating this matter. Assistant United States Attorneys Jordan Ginsberg and Jonathan L. Shih were in charge of the prosecution.
Honduran Man Guilty of Illegally Reentering the United States After Two Previous DeportationsRead the Press Release
CONCORD, NEW HAMPSHIRE – Douglas Mejia-Romero, of Honduras, pleaded guilty to illegally reentering the United States after having been previously deported to Honduras, announced United States Attorney Emily Gray Rice.
On June 11, 2015, Douglas Mejia-Romero appeared at a Manchester office of the New Hampshire Division of Motor Vehicles (DMV) and attempted to obtain a New Hampshire driver’s license. Mejia-Romero applied for the license using a false identity and possessed documents that purported to be a birth certificate establishing his birth in Puerto Rico, a certified driving record from the Department of Transportation in Puerto Rico, a driver’s license issued in Puerto Rico and a social security card issued in the name of the false identity. A New Hampshire State Trooper began questioning Mejia-Romero about the documents and sought the assistance of United States Immigration and Customs Enforcement and Removal Operations officers.
Two ICE-ERO officers responded to the DMV office and identified themselves to Mejia-Romero. The officers advised Mejia-Romero that they would be taking his fingerprints and would soon find out his true identity. At that time, the defendant admitted to the officers that his true name was Douglas Mejia, that he had been previously deported and that he had no documents allowing him to legally be in the United States. Subsequent fingerprint tests and investigation confirmed that the defendant was, in fact, Douglas Mejia-Romero from Honduras, and that he had been previously deported from Texas and from Florida to Honduras.
A sentencing hearing is scheduled for June 1, 2016. Mejia-Romero will again be deported after serving his sentence.
The case was investigated by the Department of Homeland Security and the New Hampshire State Police and is being prosecuted by Assistant U.S. Attorney Alfred Rubega.
Harris County Residents Arrested on East Texas Drug Trafficking ChargesRead the Press Release
BEAUMONT, Texas - U.S. Attorney John M. Bales announced today that seven individuals have been arrested following a lengthy investigation into drug trafficking in the Eastern and Southern Districts of Texas.
On Feb. 24, 2016, a combined task force of federal, state and local law enforcement executed federal arrest warrants in Harris County as a result of a joint investigation by the Bureau of U.S. Drug Enforcement Administration, Galveston Police Department, Federal Bureau of Investigation, U.S. Marshals Service, Office of Homeland Security, Texas Department of Public Safety – Texas City, Customs and Border Protection – ERO and MIA, Galveston County Sheriff’s Office, Harris County Sheriff’s Office, Dickinson Police Department, League City Police Department, Webster Police Department, Brazoria County Sheriff’s Office, Pearland Police Department, Houston Police Department, and Texas National Guard.
The operation resulted in the arrest of seven out of 12 defendants in two separate indictments returned by a federal grand jury on Feb. 3, 2016. According to one of the indictments, from December 2010 until June 30, 2015, the defendants conspired to distribute methamphetamine in East Texas and elsewhere. Those arrested and named in the indictment are:
JESUS NAJAR SILVA, 40,
ROLANDO DELAROSA, JR., 21, and
ADRIANA DANIELLE GARAMILLO, 21.
According to the other indictment, from March 2014 until present, the defendants conspired to distribute methamphetamine in East Texas and elsewhere. The indictment also charges two of those defendants with conspiring to distribute heroin. Those arrested and named in the indictment are:
JAIME CRUZ ROMERO, 32, a/k/a Panfilo Sacais, a/k/a Jaime Carrillo, and a/k/a Jaime;
PEDRO DUARTE, JR., 23, a/k/a Peches;
JUAN DUQUE-TINOCO, 44; and
ALEJANDRO AVILEZ GOMEZ-PENALOZA, 45, a/k/a Gordito.
All of the defendants are residents of the Harris County, Texas area. During the arrests, authorities seized approximately 20 grams of methamphetamine, approximately $8,500 in cash, and three vehicles. If convicted, the defendants face as much as life in federal prison.
These cases are the result of ongoing Organized Crime Drug Enforcement Task Force (OCDETF) joint investigations, Operation Dream Catcher, Operation The Walking Dead and Operation Tickle, and part of a concerted investigation with simultaneous arrests and charges of other defendants in the Southern District of Texas and Western District of Texas. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
These cases are being investigated by DEA, HSI-OHS, Galveston Police Department, Galveston County Sheriff’s Office, Houston Police Department and Harris County Sheriff’s Office, Longview Police Department, and Gregg County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Michelle Englade.
Other arrests and federal charges related to Operation Dream Catcher have taken place today in the Southern District of Texas and the Western District of Texas.
An indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Gallup Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Dexter Diaz, 31, of Gallup, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to a methamphetamine trafficking charge. Under the terms of his plea agreement, Diaz will be sentenced within the range of 120 to 144 months in federal prison followed by a five year term of supervised release.
The guilty plea was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division, McKinley County Sheriff Ronald Silversmith, and Chief Timothy Trimble of the Zuni Pueblo Tribal Police Department.
Diaz, whose criminal history includes felony convictions for three drug trafficking crimes, is being prosecuted as part of the federal “worst of the worst” anti-violence initiative. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior felony convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including McKinley County, under this initiative.
Diaz was arrested in Sept. 2015, on an indictment charging him with distributing methamphetamine on March 26, 2015, in McKinley County, N.M. The indictment included forfeiture allegations requiring Diaz to forfeit $1,600 in drug proceeds to the United States.
During today’s proceedings, Diaz entered a guilty plea to the indictment. In entering the guilty plea, Diaz admitted that on March 26, 2015, he sold two ounces of methamphetamine to another person for $1,600.
Diaz has been in federal custody since his arrest and remains detained pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA, the McKinley County Sheriff’s Office and the Zuni Pueblo Tribal Police Department. Assistant U.S. Attorney Nicholas Jon Ganjei is prosecuting the case.
Former Tifton Banking Company CEO and President SentencedRead the Press Release
A former bank president was sentenced today for his role in a bank fraud scheme in which he hid underperforming and at-risk loans from the bank, the Federal Deposit Insurance Corporation (FDIC), and others, announced Acting U.S. Attorney G.F. Peterman, III of the Middle District of Georgia.
Gary Patton Hall Jr., 49, of Tifton, Georgia, was sentenced by Senior U.S. District Court Judge Hugh Lawson in Valdosta, Georgia to serve 84 months in prison for conspiracy to commit bank fraud and conspiracy to commit fraud against the United States. Mr. Hall was also ordered to pay restitution in the amount of $3,931,018 to the Federal Deposit Insurance Corporation (FDIC), as the successor in interest to the bank, and to the Small Business Administration and the U.S. Department of Agriculture, as guarantors on fraudulent loans.
Mr. Hall entered a guilty plea to the charges on December 4, 2015. According to facts stipulated in the plea agreement, Mr. Hall was the president and Chief Executive Officer of Tifton Banking Company (TBC) from August 2005 until June 2010. During that time, Mr. Hall was engaged in an ongoing scheme to mislead the bank and its loan committee about loans TBC made to local individuals and businesses. As part of the scheme, Mr. Hall hid past due loans from the FDIC and the TBC loan committee, which resulted in the bank continuing to approve and renew delinquent loans and loans for which the collateral was lacking. Several of the borrowers eventually defaulted on the loans, resulting in millions of dollars in losses to TBC and others.
Mr. Hall admitted that in certain transactions in which he exercised approval authority, he hid his personal and business interests. In one instance, Mr. Hall approved loans to the buyer of a condominium in Panama City Beach, Florida, owned by Mr. Hall himself. In doing so, he made false representations about the loans to TBC’s loan committee and failed to disclose his personal interest in the transaction. When the buyer’s loan payments became delinquent, Mr. Hall hid the loans from both the FDIC and state regulators. Mr. Hall received $50,000 profit from the sale of his condominium in this transaction, the entire purchase price being funded by an unsecured loan to the buyer approved by him. The buyer eventually declared bankruptcy, resulting in a loss of more than $400,000 to TBC.
Additionally, Mr. Hall admitted to making fraudulent representations which led to loan guarantees being issued by the United States Small Business Administration and the United States Department of Agriculture on two other loan transactions. The loans were made by TBC, and guaranteed by the government agencies, to refinance earlier non-performing loans made by TBC. Those guaranteed loans resulted in losses to the bank and the agencies of more than $2,000,000.
TBC was closed by the Georgia Department of Banking and Finance in November 2010 due to its poor financial condition. At that time, TBC had not repaid the $3,800,000 it received from the Department of Treasury’s Troubled Asset Relief Program.
Acting United States Attorney G.F. Peterman, III said, “As the president of the Tift Banking Company, Gary Patton Hall owed a duty to its depositors to protect and care for their money more carefully than if it were his own; instead, he used it like it was his own. His self-dealing and dishonesty violated the trust his own community and neighbors had placed in him, causing harm to them and to the reputation of the banking industry itself. I commend the federal and local authorities who investigated this case and brought Mr. Hall to justice for his violation of that trust.”
“Today, another TARP banker was sentenced to jail for hiding a bank’s past due loans during the crisis to make the bank appear healthy,” said Christy Goldsmith Romero, Special Inspector General for TARP (SIGTARP). “SIGTARP special agents working with prosecutors at the U.S. Attorney’s Office in the Middle District of Georgia and other law enforcement partners uncovered that Tifton Banking Company President and CEO Pat Hall engaged in a long running fraud scheme that began pre-crisis in 2005. He made risky bank loans pre-crisis, and later criminally concealed the fact that the loans were past due and that the collateral had dropped in value. On behalf of the bank, in 2009, Hall obtained $3.8 million in TARP bailout funds to fill holes in the bank’s books caused by his fraud, all of which was lost when the bank failed. He deceived taxpayers, shareholders including Treasury, banking regulators and the bank’s loan committee. TARP was not a bailout for bank fraud and SIGTARP and our law enforcement partners will ensure that bankers who commit fraud related to TARP will be brought to justice.”
"The FDIC Office of Inspector General is pleased to join the U.S. Attorney's Office and our law enforcement colleagues in announcing Mr. Hall's sentencing. This sentence is fitting punishment for a former bank insider who violated the public trust and caused harm to the bank. Our expectation is that his sentencing will deter others who would seek to undermine the integrity of the banking system. Our office remains committed to helping ensure the safety and soundness of FDIC-insured banks throughout the country," Jason T. Moran, Special Agent in Charge, Atlanta Region, FDIC Office of Inspector General, stated.
“The defendant’s actions placed his self-interest and personal gain above others to which he had a responsibility resulting in significant loss to the taxpayer,” said Inspector General Peggy E. Gustafson. “The Office of Inspector General will aggressively pursue fraud, waste, or abuse against SBA programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication in pursuing justice in this case.”
The case was investigated by the FBI, the Special Inspector General for the Troubled Asset Relief Program, the Small Business Administration’s Office of the Inspector General, the Federal Deposit Insurance Corporation’s Office of the Inspector General, the Department of Agriculture’s Office of Inspector General and the Tift County Sheriff’s Office. The case is being prosecuted by Senior Trial Attorney N. Nathan Dimock of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Robert McCullers of the Middle District of Georgia.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Former President and CEO of Georgia-Based Bank Sentenced to 84 Months in Prison for Role in Bank Fraud ConspiracyRead the Press Release
A former president and CEO of a Georgia-based bank was sentenced today to 84 months in prison for his role in a conspiracy to commit bank fraud and major fraud against the United States.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney G.F. Peterman III of the Middle District of Georgia made the announcement.
Gary Patton Hall Jr., 50, of Tifton, Georgia, was sentenced by Senior U.S. District Judge Hugh Lawson of the Middle District of Georgia. In addition to imposing the prison term, Judge Lawson ordered Hall to pay $3,931,018 in restitution to the bank and federal agencies for losses suffered. In December 2015, Hall pleaded guilty to one count of conspiracy to commit bank fraud and one count of conspiracy to commit major fraud against the United States.
According to court documents, Hall was the president and CEO of Tifton Banking Company (TBC) from August 2005 until June 2010. As part of his guilty plea, Hall admitted that he engaged in a scheme to mislead the bank and its loan committee about loans that TBC made to local individuals and businesses. Hall hid past-due loans from the Federal Deposit Insurance Corporation (FDIC) and the TBC loan committee, which resulted in the bank continuing to approve and renew delinquent loans and loans for which the collateral was lacking, he admitted. Several of the borrowers eventually defaulted on the loans, resulting in millions of dollars in losses to TBC and others.
At his plea hearing, Hall admitted that in certain transactions in which he exercised approval authority, he made false representations about the loans to TBC’s loan committee and hid his personal and business interests, including approving loans to the buyer of a condominium in Panama City Beach, Florida, owned by Hall himself. Hall admitted that he hid the loans from the FDIC and state regulators when the buyer’s payments became delinquent, and that he received $50,000 profit from the sale of his condo. The buyer eventually declared bankruptcy, resulting in a loss of more than $400,000 to TBC.
Hall also admitted to making fraudulent representations that led to commercial loan guarantees being issued by the U.S. Small Business Administration (SBA) and the U.S. Department of Agriculture (USDA) on two other loan transactions. The loans were made by TBC and guaranteed by the government agencies to refinance earlier non-performing commercial loans made by TBC as part of the scheme to mislead bank regulators and hide the bank’s true financial condition. Those guaranteed loans resulted in more than $2 million in losses to the bank and the agencies.
In November 2010, the Georgia Department of Banking and Finance closed TBC because of its poor financial condition. At that time, TBC had not repaid the $3.8 million it received from the Department of Treasury’s Troubled Asset Relief Program (TARP).
The FBI, the Special Inspector General for TARP, the SBA’s Office of the Inspector General, the FDIC Office of the Inspector General, the USDA’s Office of Inspector General and the Tifton County Sheriff’s Office investigated the case. Senior Trial Attorney N. Nathan Dimock of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Robert McCullers of the Middle District of Georgia prosecuted the case.
Former Iberia Parish Sheriff’s Office employee pleads guiltyRead the Press Release
LAKE CHARLES, La. – Principal Deputy Assistant Attorney General Vanita Gupta and U.S. Attorney for the Western District of Louisiana Stephanie A. Finley announced today that a former employee of the Iberia Parish Sheriff’s Office pleaded guilty to his role in an inmate beating at the Iberia Parish Jail.
Jesse James Hayes, 36, of St. Martinville, La., pleaded guilty before U.S. District Judge Patricia Minaldi to one count of deprivation of civil rights.
Hayes faces 10 years in prison, three years of supervised release and a $250,000 fine.
The FBI and the U.S. Department of Justice, Civil Rights Division, participated in the investigation. Assistant U.S. Attorney Joseph G. Jarzabek, and Special Litigation Counsel Mark Blumberg and Trial Attorney Tona Boyd of the U.S. Department of Justice, Civil Rights Division, are prosecuting the case.
Former Christian County Sheriff Sentenced for Stealing Public Money, Money LaunderingRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former sheriff of Christian County, Mo., was sentenced in federal court today for embezzling county funds and for his role in laundering the proceeds of a political supporter’s investment fraud scheme.
Joseph “Joey” Edward Kyle, 54, of Ozark, Mo., was sentenced by U.S. District Judge Beth Phillips to one year and one day in federal prison. The court also ordered Kyle to pay $50,290 in restitution to Christian County and forfeit to the government a money judgment of $71,640, representing the proceeds he received from his criminal conduct. Kyle must disclose and surrender any and all property that was purchased with county funds, including firearms, ammunition, vehicles, equipment, preserved food (meals-ready-to-eat) and other supplies.
On May 20, 2015, Kyle pleaded guilty to one count of embezzling from Christian County and one count of participating in a money-laundering conspiracy. As required under the terms of his plea agreement, Kyle resigned his office as sheriff of Christian County, to which he was elected in 2008 and reelected in 2012.
Christian County Embezzlement
Kyle admitted that he embezzled $50,290 from Christian County. Kyle submitted 22 fraudulent invoices and purchase orders to the county for goods and services that were never provided between Jan. 1, 2011, and Oct. 14, 2014.
Kyle submitted those requisitions on behalf of EDI Plus, LLC, in Nixa, Mo. EDI was awarded a contract by the county to provide equipment – including firearms and ammunition – for the sheriff’s department from 2011 to 2014. Kyle received cash from EDI for his personal use then submitted fraudulent requisitions for goods and services purportedly supplied by EDI. In reality, no goods or services were provided; instead, these requisitions repaid EDI for the money Kyle personally received.
Pretrial Diversion Agreement: Stephen R. Eidson
Stephen R. Eidson, the owner of EDI, has not been charged in relation to Kyle’s theft of public funds but has entered into a pretrial diversion agreement with the U.S. Attorney’s Office.
Eidson acknowledged his role aiding and abetting Kyle in the fraud scheme in which Christian County taxpayers repaid EDI for the personal funds that he had provided to Kyle. In return, Eidson obtained the continued business of the Christian County Sheriff’s Department.
Under the terms of the pretrial diversion agreement, Eidson must surrender his federal firearms license no later than June 30, 2016. He may not become a federal firearms licensee at any point in the future and may not reapply for licensure. Eidson also must publicly apologize for the theft of public funds and complete 100 hours of community service within Christian County.
Prosecution shall be deferred for one year, provided Eidson abides by the conditions and the requirements of the pretrial diversion agreement. If Eidson violates the conditions of the agreement, the U.S. Attorney may initiate prosecution for the theft of public funds.
Money Laundering Conspiracy
Kyle also admitted that he received $21,350 from another person, identified as “Subject #2” in court documents, for his role in promoting an investment fraud scheme.
According to the plea agreement, Subject #2 owned and operated various companies and, from January 2008 to October 2014, engaged in an investment fraud scheme. Subject #2 solicited Kyle to assist him as a promoter of the scheme, to take advantage of the authority and prestige of Kyle’s position as county sheriff. Kyle referred potential investors, distributed promotional materials, served as a personal reference and recommended that victims invest money in Subject #2’s companies.
In order to persuade potential investors, Subject #2 falsely informed them that Kyle had personally invested funds and that Kyle had assembled an investment group, comprised of deputy sheriffs and others, to invest in Subject #2’s companies. In reality, Kyle did not invest his personal funds in Subject #2’s companies. Instead, Subject #2 gave Kyle 50,000 shares in one of his companies, which Subject #2 normally sold to investors at the rate of one dollar per share.
Kyle founded Five Rivers Management, LLC, purportedly as a law enforcement training company in 2011. He deposited the money he received from Subject #2 into the company’s bank account in order to conceal the source and nature of the payments, and to make them appear to be receipts from Kyle’s law enforcement training company. Subject #2 also made a $3,000 contribution, using victim investor funds, to Kyle’s political campaign on July 1, 2012.
Between June 2012 and January 2014, Subject #2 received investment funds totaling approximately $952,670. At the time he promoted the investment fraud scheme, Kyle states that he believed Subject #2’s companies were legitimately engaged in efforts to bring their products to market. However, Kyle admitted the United States could prove that he knew checks written to Five Rivers were the proceeds of some form of unlawful activity. Further, Kyle acknowledged that, at the very least, he deliberately closed his eyes to the fraud, which should have been obvious to him.
This case was prosecuted by Assistant U.S. Attorneys James J. Kelleher and Steven M. Mohlhenrich. It was investigated by the FBI, IRS-Criminal Investigation and the Missouri State Highway Patrol.
Final defendant sentenced to four years in Federal prison for role in counterfeiting ringRead the Press Release
BECKLEY, W.Va. – An Ohio woman was sentenced to four years in federal prison for three counts of passing counterfeit money, announced Acting United States Attorney Carol Casto. Paula K. Green, 42, of Columbus, previously pleaded guilty to the federal counterfeiting crimes in October 2015.
Green admitted to passing counterfeit $100 bills in April 2014 in the Beckley and Charleston areas. In the Beckley area, Green passed counterfeit bills at several businesses, including businesses in the Crossroads Mall, as well as at K-Mart at the Plaza Mall off Robert C. Byrd Drive. In Charleston, Green passed counterfeit bills at K-Mart on MacCorkle Avenue.
As a result of this investigation, three other women have been sentenced for their roles in the counterfeiting scheme. Nyteria Green, of Columbus and the half-sister of co-defendant Paula Green, was sentenced in December 2015 to three years in federal prison. O’wynn Rogers, of Beckley, was sentenced in December 2015 to one year in federal prison. Nyteria Green and Rogers both admitted to passing counterfeit $100 bills in April 2014 at several businesses around Beckley, including businesses in the Crossroads Mall, as well as at the IHOP on Harper Road. Kenyata Smith, of Beckley, was sentenced in October 2015 to two years of probation for passing counterfeit money in April 2014 at a Dairy Queen in Beaver.
The investigation of these cases was conducted by the United States Secret Service. Assistant United States Attorney Eric Bacaj is handling the prosecution. United States District Judge Irene C. Berger imposed the sentences.
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Fayetteville Arkansas Man Sentenced in Federal Tax CrimeRead the Press Release
Fayetteville, Arkansas - A Fayetteville, Arkansas man was sentenced to 14 months in prison following his plea of guilty to four counts of willfully failing to file individual income tax returns, announced Acting U.S. Attorney Kenneth Elser of the Western District of Arkansas and Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to court documents, Randall Acton West, a former real estate appraiser, failed to file federal income tax returns with the Internal Revenue Service (IRS) for the years 2007 through 2010 despite earning gross income in excess of the tax return filing threshold. According to court documents, West’s conduct resulted in a tax loss to the government of $95,825.56.
West was sentenced on February 24, 2016 by U.S. District Judge Timothy L. Brooks of the Western District of Arkansas. In addition to the prison sentence, West was ordered to serve one year of supervised release and pay restitution to the IRS in the amount of $95,825.56.
Acting U.S. Attorney Elser and Acting Assistant Attorney General Ciraolo commended special agents of IRS – Criminal Investigation, who investigated the case and Trial Attorneys Assistant U.S. Attorney Kimberly Davis of the Western District of Arkansas, and Robert Kemins and David Zisserson of the Tax Division, who prosecuted the case.
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Related court documents may be found on the Public Access to Electronic Records Website at www.Pacer.gov
Enfield Man Sentenced to More Than 8 Years in Federal Prison for Committing 3 Armed Bank RobberiesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID M. JOHNSON, 28, of Enfield, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 97 months of imprisonment, followed by three years of supervised release, for committing three armed bank robberies.
According to court documents and statements made in court, on January 10, 2015, at approximately 9:15 a.m., two masked men, at least one of whom brandished a firearm, entered the First Niagara Bank at 2133 Poquonock Avenue in Windsor. The two men jumped over the teller counter, directed two bank employees to the bank vault and ordered one of the employees to open the vault. Once inside the vault, the men ordered the bank employees to the ground and took cash from the vault. The men also ordered bank employees to open teller drawers and proceeded to take an additional amount of money from the drawers. During the robbery, a customer entered the bank. One of the masked men pointed a gun at the customer, ordered him to the ground and told him not to look up. After exiting the bank, the men confronted a second customer who was about to enter the bank. One of the men pointed a gun at the customer and stated “If you say anything, we’ll shoot you….”
While investigating the robbery, Windsor Police were contacted by East Windsor Police who were investigating similar bank and credit union robberies in East Windsor and Glastonbury. East Windsor Police had recently obtained an arrest warrant for JOHNSON with respect to the robbery of the Nutmeg State Federal Credit Union in East Windsor on July 21, 2014.
After further investigation, on January 10 at approximately 9:45 p.m., law enforcement executed a search warrant at JOHNSON’s Enfield residence and found a total of $81,946 in cash, most of which was bound by First Niagara Bank strapping that was initialed by one of victim bank employees. Investigators also found and seized other items allegedly used during the robbery earlier that day, as well as a .380 caliber semi-automatic handgun with a fully-loaded magazine.
JOHNSON has been detained since his arrest on January 10, 2015.
On August 31, 2015, JOHNSON pleaded guilty to one count of armed bank robbery and admitted that he committed the robbery in Windsor on January 10, 2015, and also the armed robberies of the Nutmeg State Federal Credit Union in East Windsor on July 21, 2014, and the Nutmeg State Credit Union in Glastonbury on November 7, 2014, stealing $109,166 and $84,145, respectively.
JOHNSON was ordered to pay restitution in the amount of $193,311.
On May 29, 2015, Odain J. Johnson, of Hartford, pleaded guilty to one count of armed bank robbery stemming from his role in the Windsor bank robbery. On October 27, 2015, he was sentenced to 70 months of imprisonment.
This matter was investigated by the FBI and the Windsor, East Windsor and Glastonbury Police Departments, with the assistance of the Enfield Police Department, the Capital Region Emergency Services Team (CREST) and the Maine State Police. The case was prosecuted by Assistant U.S. Attorneys Deborah R. Slater and Douglas P. Morabito.
El Paso Man Sentenced to Federal Prison for Heroin Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Arturo Martinez, 23, of El Paso, Texas, was sentenced yesterday afternoon in federal court in Las Cruces, N.M., to 54 months in prison followed by five years of supervised release for his heroin trafficking conviction. His co-defendant Bryan Marinelarena, 21, a Mexican national, was sentenced on Feb. 23, 2016 to three years in prison for his heroin conviction. Marinelarena will be deported after completing his prison sentence.
Martinez and Marinelarena were arrested on May 23, 2015, during a routine inspection at the U.S. Border Patrol checkpoint on Interstate 10 in Doña Ana County, N.M. According to the criminal complaint, agents found approximately 6.6 kilograms (14.6 pounds) of heroin concealed in the vehicle in which Martinez and Marinelarena were driving from El Paso to California.
On Aug. 4, 2015, Marinelarena and Martinez each pled guilty to a felony information charging them with participating in a heroin trafficking conspiracy. Each admitted that on May 23, 2015, Border Patrol agents at the Interstate 10 checkpoint discovered 6.6 kilograms of heroin hidden in the engine of the SUV in which they were traveling.
In entering their guilty pleas, each man also admitted that he expected to be paid for transporting the heroin from El Paso to California. Martinez anticipated a $6,000 payment while Marinelarena expected to receive a $1,000 payment.
This case was investigated by the Las Cruces Station of the U.S. Border Patrol and the Las Cruces office of the DEA and was prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.
The case was prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Eight Individuals Arrested for Bribery, Conspiracy, Health Care and Mail FraudRead the Press Release
Yesterday, a federal grand jury returned a 14 count indictment against eight individuals for bribery, conspiracy to commit health care fraud, conspiracy to commit an offense against the United States, mail fraud and aggravated identity theft, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico. The investigation was led by the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG), with the collaboration of the Federal Bureau of Investigation, U.S. Secret Service, U.S. Postal Inspection Service and the Puerto Rico Department of Health Medicaid Anti-Fraud Unit.
The Medicaid Program (Medicaid) is a federal health benefit program intended to provide benefits to low-income individuals and families. Medicaid is monitored and funded by the U.S. Department of Health and Human Services (HHS) through its agency, the Centers for Medicare and Medicaid Services (CMS). In the Commonwealth of Puerto Rico, Medicaid is referred to in Spanish as “Mi Salud,” or “Plan de Salud del Gobierno” (PSG). Mi Salud beneficiaries included Medicaid participants and “state only funded health care recipients,” commonly referred to as “Commonwealth participants.” An individual’s eligibility for Medicaid or Commonwealth health care benefits depends on certain eligibility requirements.
Although Medicaid is federally-funded, it is administered by the states and/or United States territories, including the Commonwealth of Puerto Rico. HHS provided the Puerto Rico Department of Health (PR-DOH) approximately $1 billion annually to fund and/or reimburse the costs of Medicaid.
Within the PR-DOH, the Office of the Medicaid Program, also known in Spanish as “Programa De Asistencia Médica,” or “Programa De Medicaid,” was responsible for handling applications for Medicaid as well as the Commonwealth health plan eligibility, certification and recertification process. Medicaid and the Commonwealth health plan eligibility was determined by a Program Technician, a government employee from the Programa de Asistencia Medica.
The indictment charges three agents of the Programa de Asistencia Medica Santurce Office with receiving monetary bribes in exchange for certifying individuals as eligible to receive Medicaid health care benefits. The charged agents the Programa de Asistencia Medica are:Luis González-Cordova, a clerk in the Santurce office who dealt with Mi Salud participant files and individual applicants that sought Mi Salud benefits; Karen Curet-Nieves, a program technician in the Santurce office who evaluated and determined the eligibility of Mi Salud applicants, input data in the MEDITI system and approved Mi Salud benefits for participants; and Orlando Negrón-Bonilla, a program technician in the Santurce office who evaluated and determined eligibility of Mi Salud applicants, input data in the MEDITI system and approved Mi Salud benefits for participants.
The indictment alleges that from on or about July 9, 2014, through on or about Oct. 10, 2015, González-Cordova, Curet-Nieves and Negrón-Bonilla aiding and abetting one another, did corruptly solicit, demand, accept and agree to accept a thing of value from a person, to wit, cash payments, intending to be influenced and rewarded in connection with a transaction and series of transactions of Programa De Asistencia Médica involving $5,000 or more. Rather, than abiding by their duties to ensure participants were in fact low-income and eligible for Medicaid, defendants abdicated those responsibilities in exchange for cash. Those defendants and various “runners” are also charged with conspiracy to commit an offense against the United States, conspiracy to commit health care fraud, mail fraud and aggravated identity theft .
During the course of the conspiracy and scheme, defendants Ruben Escalera-Rivera, Perfecto De Leon-Toribio, Luis Caceres-De Leon, Luis Angel Garcia-Rosa and Andrea Jimenez-De Jesús, acted as “runners,” soliciting and referring individuals to defendant Luis González-Cordova for their fraudulent entry into the Medicaid health care benefit programs. The runners would recruit individuals to be fraudulently enrolled into the Medicaid health care benefits programs in exchange for cash bribes and monetary payments without personally meeting with the individuals to determine their eligibility as required by PR-DOH procedures. The runners delivered cash bribes to González-Cordova and upon receiving the personal identification information, including names, social security numbers, dates of birth and addresses, from the runners, González-Cordova would provide it to Curet-Nieves or Negrón-Bonilla by text or handwritten note for entry into the MEDITI database. Curet-Nieves and Negrón-Bonilla fraudulently certified the participants as eligible to receive Medicaid health care benefits.
Curet-Nieves approved 20 to 30 unqualified individuals per week into the Mi Salud program for a fee of $10 each and Negrón-Bonilla approved 20 to 30 unqualified individuals per week into the Mi Salud program for a fee of $10 to $30 each.
The individually identifiable information for eligible participants was transferred daily to the Puerto Rico Health Insurance Administration, known in Spanish as Administración de Seguros de Salud de Puerto Rico (ASES), in order to complete the enrollment process with the various contracted Managed Care Organizations (MCO’s). Medicaid health insurance cards for the MCO’s were then sent via regular mail to the participant.
ASES paid monthly premiums to the MCOs for the purposes of providing Medicaid health care benefits. Monthly premiums were paid to MCO’s regardless of whether the participant required medical care services. MCO’s also received federal monies for utilization of the health care plan. As a result, each participant fraudulently certified as eligible for Medicaid health care benefits would result in the fraudulent payment of federal Medicaid funds to MCO’s. This amount could range from hundreds to thousands of dollars per participant depending on the corresponding premiums and utilization.
In conjunction with this investigation, the Puerto Rico Department of Health Medicaid Anti-Fraud Unit is sending approximately 6,000 notification letters to participants whose eligibility has been identified as suspicious. Over 130 participants have been mailed notifications already.
“Today’s arrests by HHS-OIG agents and our law enforcement partners show that we will not tolerate the improper use of health care program funds such as Medicaid which are essential to the welfare of low-income families in our community,” said U.S. Attorney Rodríguez-Vélez. “The U.S. Attorney’s Office and federal law enforcement agencies will continue to investigate, charge and prosecute those who corruptly enrich themselves at the expense of the Medicaid program.
The Medicaid program provides health care benefits to low-income individuals and families, and the fraudulent enrollment of individuals into the program is unacceptable,” said Special Agent in Charge Scott Lampert of HHS-OIG New York Regional Office. HHS-OIG and its law enforcement partners will continue to aggressively pursue to the fullest extent of the law those who seek to unlawfully enrich themselves by defrauding Medicaid.”
The case is being prosecuted by Assistant U.S. Attorney Luke Cass and Assistant U.S. Attorney Seth Erbe. The case was investigated by U.S. Department of Health and Human Services-Office of Inspector General, with the collaboration of the Federal Bureau of Investigation, U.S. Secret Service, U.S. Postal Inspection Service, the Puerto Rico Department of Health Medicaid Anti-Fraud Unit and the Puerto Rico Police Department.
If convicted, the defendants face a sentence of up to twenty years of imprisonment plus a mandatory two year term of imprisonment for aggravated identity theft. Criminal indictments are only charges and are not evidence of guilt. A defendant is presumed innocent unless and until proven guilty.
Eight Individuals Arrested for Bribery, Conspiracy, Health Care and Mail FraudRead the Press Release
SAN JUAN, P.R. – On February 24, 2016, a Federal grand jury returned a fourteen count indictment against eight individuals for bribery, conspiracy to commit health care fraud, conspiracy to commit an offense against the United States, mail fraud, and aggravated identity theft, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The investigation was led by the U.S. Department of Health and Human Services-Office of Inspector General, with the collaboration of the Federal Bureau of Investigation, United States Secret Service, United States Postal Inspection Service, and the Puerto Rico Department of Health Medicaid Anti-Fraud Unit.
The Medicaid Program (“Medicaid”) is a federal health benefit program intended to provide benefits to low-income individuals and families. Medicaid is monitored and funded by the United States Department of Health and Human Services (“HHS”) through its agency, the Centers for Medicare and Medicaid Services (“CMS”). In the Commonwealth of Puerto Rico, Medicaid is referred to in Spanish as “Mi Salud,” or “Plan de Salud del Gobierno” (PSG). Mi Salud beneficiaries included Medicaid participants and “state only funded health care recipients,” commonly referred to as “Commonwealth participants.” An individual’s eligibility for Medicaid or Commonwealth health care benefits depends on certain eligibility requirements.
Although Medicaid is federally-funded, it is administered by the states and/or United States territories, including the Commonwealth of Puerto Rico. HHS provided the Puerto Rico Department of Health (PR-DOH) approximately $1 billion annually to fund and/or reimburse the costs of Medicaid.
Within the PR-DOH, the Office of the Medicaid Program, also known in Spanish as “Programa De Asistencia Médica,” or “Programa De Medicaid,” was responsible for handling applications for Medicaid as well as the Commonwealth health plan eligibility, certification and recertification process. Medicaid and the Commonwealth health plan eligibility was determined by a Program Technician, a government employee from the Programa de Asistencia Medica.
The indictment charges three agents of the Programa de Asistencia Medica Santurce Office with receiving monetary bribes in exchange for certifying individuals as eligible to receive Medicaid health care benefits. The charged agents the Programa de Asistencia Medica are (1) Defendant Luis González-Cordova, a clerk in the Santurce office who dealt with Mi Salud participant files and individual applicants that sought Mi Salud benefits; (2) Defendant Karen Curet-Nieves, a program technician in the Santurce office who evaluated and determined the eligibility of Mi Salud applicants, input data in the MEDITI system, and approved Mi Salud benefits for participants; and (3) Defendant Orlando Negrón-Bonilla, a program technician in the Santurce office who evaluated and determined eligibility of Mi Salud applicants, input data in the MEDITI system, and approved Mi Salud benefits for participants.
The indictment alleges that from on or about July 9, 2014, through on or about October 10, 2015, Luis González-Cordova, Karen Curet-Nieves, and Orlando Negrón-Bonilla aiding and abetting one another, did corruptly solicit, demand, accept, and agree to accept a thing of value from a person, to wit, cash payments, intending to be influenced and rewarded in connection with a transaction and series of transactions of Programa De Asistencia Médica involving $5,000 or more. All in violation of Title 18, United States Code, Sections 666(a)(1)(B), 2(a), and 2(b). Rather, than abiding by their duties to ensure participants were in fact low-income and eligible for Medicaid, defendants abdicated those responsibilities in exchange for cash. Those defendants and various “runners” are also charged with conspiracy to commit an offense against the United States in violation of Title 18, United States Code, Section 371, conspiracy to commit health care fraud in violation of Title 18, United States Code, Sections 1347 and 1349, mail fraud in violation of Title 18, United States Code, Section 1341, and aggravated identity theft in violation of Title 18, United States Code, Section 1028A.
During the course of the conspiracy and scheme, defendants Ruben Escalera-Rivera, Perfecto De Leon-Toribio, Luis Caceres-De Leon, Luis Angel Garcia-Rosa, and Andrea Jimenez-De Jesús, acted as “runners,” soliciting and referring individuals to defendant Luis González-Cordova for their fraudulent entry into the Medicaid health care benefit programs. The runners would recruit individuals to be fraudulently enrolled into the Medicaid health care benefits programs in exchange for cash bribes and monetary payments without personally meeting with the individuals to determine their eligibility as required by PR-DOH procedures. The runners delivered cash bribes to defendant Luis González-Cordova and upon receiving the personal identification information, including names, social security numbers, dates of birth, and addresses, from the runners, Luis González-Cordova would provide it to Karen Curet-Nieves or Orlando Negrón-Bonilla by text or handwritten note for entry into the MEDITI database. Karen Curet-Nieves and Orlando Negrón-Bonilla fraudulently certified the participants as eligible to receive Medicaid health care benefits.
Defendant Karen Curet-Nieves approved twenty to thirty unqualified individuals per week into the Mi Salud program for a fee of $10.00 each and Orlando Negrón-Bonilla approved twenty to thirty unqualified individuals per week into the Mi Salud program for a fee of $10.00 to $30.00 each.
The individually identifiable information for eligible participants was transferred daily to the Puerto Rico Health Insurance Administration, known in Spanish as “Administración de Seguros de Salud de Puerto Rico” (“ASES”), in order to complete the enrollment process with the various contracted “Managed Care Organizations” (“MCO’s”). Medicaid health insurance cards for the MCO’s were then sent via regular mail to the participant.
ASES paid monthly premiums to the MCOs for the purposes of providing Medicaid health care benefits. Monthly premiums were paid to MCO’s regardless of whether the participant required medical care services. MCO’s also received federal monies for utilization of the health care plan. As a result, each participant fraudulently certified as eligible for Medicaid health care benefits would result in the fraudulent payment of federal Medicaid funds to MCO’s. This amount could range from hundreds to thousands of dollars per participant depending on the corresponding premiums and utilization.
In conjunction with this investigation, the Puerto Rico Department of Health Medicaid Anti-Fraud Unit is sending approximately 6,000 notification letters to participants whose eligibility has been identified as suspicious. Over 130 participants have been mailed notifications already.
“Today’s arrests by HHS-OIG agents and our law enforcement partners show that we will not tolerate the improper use of health care program funds such as Medicaid which are essential to the welfare of low-income families in our community. The U.S. Attorney’s Office and federal law enforcement agencies will continue to investigate, charge and prosecute those who corruptly enrich themselves at the expense of the Medicaid program,” said United States Attorney, Rosa Emilia Rodríguez-Vélez.
“The Medicaid program provides health care benefits to low-income individuals and families, and the fraudulent enrollment of individuals into the program is unacceptable. HHS-OIG and its law enforcement partners will continue to aggressively pursue to the fullest extent of the law those who seek to unlawfully enrich themselves by defrauding Medicaid,” said Scott Lampert, Special Agent in Charge of HHS-OIG New York Regional Office.The case is being prosecuted by Assistant U.S. Attorney Luke Cass and Assistant U.S. Attorney Seth Erbe. The case was investigated by U.S. Department of Health and Human Services, Office of Inspector General, with the collaboration of the Federal Bureau of Investigation, United States Secret Service, United States Postal Inspection Service, the Puerto Rico Department of Health Medicaid Anti-Fraud Unit and the Puerto Rico Police Department.
If convicted, the defendants face a sentence of up to twenty years of imprisonment plus a mandatory two year term of imprisonment for aggravated identity theft. Criminal indictments are only charges and are not evidence of guilt. A defendant is presumed innocent unless and until proven guilty.
District Man Pleads Guilty to Bank Robbery ChargeRead the Press Release
WASHINGTON – Francis Davis, 69, of Washington, D.C., pled guilty today to a federal bank robbery charge for a hold-up at a bank in Southeast Washington, announced U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Davis pled guilty in the U.S. District Court for the District of Columbia. The Honorable Christopher R. Cooper scheduled sentencing for May 9, 2016. The charge carries a statutory maximum of 20 years in prison. Davis also is subject to a forfeiture money judgment.
According to the government’s evidence, on Monday, Nov. 9, 2015, at approximately 9:15 a.m., Davis entered the rear door of the SunTrust Bank in the 300 block of Pennsylvania Avenue SE. Once inside, he walked to a teller station. Davis then passed the bank teller a note which demanded money. The teller read the note and paused in disbelief. At that time, Davis stated, “Quit stalling … Somebody is gonna’ get hurt.”
The teller opened the cash drawer and passed $1,589 to the defendant. Davis stated, “That’s good,” and then walked swiftly out the door. Law enforcement officers submitted images taken from the bank’s surveillance video to the law enforcement community. The defendant was subsequently identified from several surveillance video photos from the robbery. He was arrested on Dec. 11, 2015 and has been in custody ever since.
In announcing the guilty plea, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Chief Lanier commended the actions of the FBI and Metropolitan Police Department officers who worked to solve this case. They also expressed appreciation for the work of Paralegal Specialists Jeannette Litz and Teesha Tobias of the U.S. Attorney’s Office. Finally, they commended efforts of Assistant U.S. Attorney Emory V. Cole, who investigated and prosecuted the case.
Dallas Man Pleads Guilty to Role in AAFES Jewelry Theft SchemeRead the Press Release
DALLAS — Arthur Lee Hightower, II, a Dallas man who was on the lam for more than seven months following his indictment in May 2015 for his role in a jewelry theft scheme that targeted the Army and Air Force Exchange Services (AAFES), is now in custody, and today he pleaded guilty to his role in that scheme, announced U.S. Attorney John Parker of the Northern District of Texas.
Hightower II, 56, pleaded guilty before U.S. Magistrate Judge David L. Horan, to one count of theft of government property. He faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Restitution could also be ordered. Sentencing is set for July 11, 2016, before U.S. District Judge Sam A. Lindsay.
In May 2015, Hightower and his former wife, Jessie Faye Hightower, a/k/a “Jessie Faye Lewis,” 55, of Balch Springs, Texas, and their two sons, Arthur Lee Hightower III, 34, of Lancaster, Texas, and Travoine Lee Hightower, 31, of Dallas, were charged in a federal indictment with felony offenses stemming from a scheme they ran to steal nearly $100,000 in wedding ring sets from AAFES. Jessie Fay Hightower and Arthur Lee Hightower III have each pleaded guilty to one count of conspiracy to receive stolen government property. Travoine Lee Hightower pleaded guilty to one count of receiving stolen government property.
According to plea documents filed in the case, Hightower II worked as a truck driver, and part of his duties included delivering AAFES merchandise to the AAFES offices in Dallas. On approximately October 3, 2014, Hightower II, who was responsible for safeguarding the merchandise, did not deliver all of the AAFES merchandise, instead, he stole approximately 70 wedding ring sets from AAFES.
Hightower II admitted he gave several of the wedding ring sets to his co-defendant family members so they could pawn the stolen jewelry to obtain cash.
The case was investigated by agents of the Defense Criminal Investigative Service and the Air Force Office of Special Investigations. Assistant U.S. Attorney David Jarvis is prosecuting.
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Clarksburg man sentenced to 20 years for distributing child pornographyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Joshua Hood, 34, of Clarksburg, was sentenced to 240 months in prison for transmitting images of child pornography, United States Attorney William J. Ihlenfeld, II, announced.
In August 2015, Hood utilized his smartphone to distribute and transmit images depicting a minor engaged in explicit conduct. Hood pled guilty in October 2015 to one count of “Transportation of Child Pornography.”
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government. The Federal Bureau of Investigation investigated.
U.S. District Judge Irene M. Keeley presided.
Cedar Falls Man Sentenced to Prison for Conspiracy to Distribute Pure MethamphetamineRead the Press Release
A Cedar Falls man who distributed pure methamphetamine was sentenced February 22, 2016, to more than 17 years in federal prison.
Seth Beard, age 36, from Cedar Falls, Iowa, received the prison term after an October 29, 2015, guilty plea to one count of conspiracy to distribute more than 50 grams of pure methamphetamine. At the guilty plea, Beard admitted that between December 2013 and August 2015 he was involved in the importation of over 8.7 kilograms (3.9 pounds) of pure methamphetamine which he distributed with others in the Cedar Falls area.
Beard was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Beard was sentenced to 205 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Beard is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Dan Chatham as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Federal Bureau of Investigation, the Iowa Division of Narcotics Enforcement, and the Tri-County Drug Task Force, comprised of the Waterloo Police Department, Black Hawk County Sheriff’s Office, Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-2042.
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Cape Cod Dental Practice Settles Drug Diversion AllegationsRead the Press Release
BOSTON – The U.S. Attorney’s Office reached a $25,000 civil settlement with Dr. Richard Bravman, Dr. John Langston, and their Cape Cod dental practice, Bravman, Langston, and Associates, LLC in connection with the practice’s flawed recordkeeping of controlled substances.
According to court documents, the practice allegedly failed to conduct required inventories of controlled substances, to keep inventories of drugs on hand, to maintain dispensing records and invoices for drug transfers between practice locations, and to create order forms for controlled substances. The practice also allegedly failed to report a theft of a controlled substance to the DEA as it was required to do.
Upon learning of the violations at their practice, Drs. Bravman and Langston cooperated with the investigation. In consultation with the DEA, they have implemented new recordkeeping procedures to ensure compliance with regulations aimed at avoiding diversion of controlled substances from medical offices.
Drs. Bravman and Langston agreed to pay $25,000 to settle these claims and to permit the DEA to perform administrative inspections of the practice’s offices during the next three years without a warrant.
United States Attorney Carmen M. Ortiz and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. The case was handled by Assistant U.S. Attorney Kriss Basil of Ortiz’s Civil Division.
California Man Sentenced to Prison for Drug Charge and Money LaunderingRead the Press Release
A California man who distributed pure methamphetamine in Iowa and laundered some of the proceeds to a Mexican bank account was sentenced February 22, 2016, to 22 years in federal prison.
Jesus Lizarraga, age 34, from Yucaipa, California, received the prison term after a November 2, 2015, guilty plea to one count of conspiracy to distribute more than 50 grams of pure methamphetamine and one count of money laundering.
At the guilty plea, Lizarraga admitted he recruited individuals from Cedar Falls, Iowa, to assist in the distribution of over 11 kilograms (5 pounds) of pure methamphetamine. Lizarraga gave the Iowans methamphetamine in Cedar Falls, Omaha, Nebraska, and in California to distribute in the Cedar Falls area. Lizarraga laundered some of the proceeds from drug sales by directing others to wire the money from Iowa to a Mexican bank account.
Lizarraga was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Lizarraga was sentenced to 264 months’ imprisonment. A special assessment of $200 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Lizarraga is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Dan Chatham as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Federal Bureau of Investigation, the Iowa Division of Narcotics Enforcement, and the Tri-County Drug Task Force, comprised of the Waterloo Police Department, Black Hawk County Sheriff’s Office, Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-2027.
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California Man Sentenced to 40 Years for Running Multi-Million Dollar Fraud Scheme in KentuckyRead the Press Release
FRANKFORT, Ky. C A federal judge has sentenced a California man to 40 years in federal prison, for orchestrating a fraudulent oil production enterprise in Kentucky that defrauded investors, nationwide, out of more than $3 million.
On Wednesday, U.S. District Judge Gregory Van Tatenhove sentenced John G. Westine, Jr., 69, for mail fraud, conspiracy to launder funds, and securities fraud. Westine was also ordered to pay $3,042,621 in restitution. One of Westine’s co-defendants, Mark Cornell, 56, was sentenced to 114 months in prison, for deception in the purchase and sale of a security. Cornell was ordered to pay $2,181,414 in restitution.
Westine’s sentence was enhanced due to a prior conviction, for running a similar fraud scheme in Ohio. Westine served more than 20 years in prison for his 1992 conviction and was still on parole when he orchestrated the fraud scheme in Kentucky.
According to testimony at trial, Westine, Cornell, and others solicited money from investors, by intentionally making false statements regarding the success of their oil production business. They misled investors to believe that oil was being produced, when in fact it was not, and also misled investors to believe that the oil companies Westine operated had been in the oil production business for decades. Additionally, Westine concealed from investors that he had served more than 20 years in prison for a fraud scheme and was still on parole.
Westine and his co-defendants used aliases and fictitious company names to conceal their true identities from both investors and authorities and they defrauded more than 240 investors, nationwide. Two of Westine’s other co-defendants, Michael Hicks and Henry Irving Ramer, were previously convicted and sentenced, to three years imprisonment and thirteen years imprisonment respectively, for their roles in the scheme.
The investigation was initiated based on investor complaints submitted to the Kentucky Department of Financial Institutions, Division of Securities.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Tommy D. Coke, Inspector in Charge of the U.S. Postal Inspection Service; Pittsburg Division; and Charles Vice, Commissioner of the Kentucky Department of Financial Institutions, jointly made the announcement.
The investigation was conducted by the U.S. Postal Inspection Service, including Postal Inspector Roberta Bottoms, and the Kentucky Department of Financial Institutions, Division of Securities.
Assistant U.S. Attorneys Ken Taylor and Neeraj Gupta prosecuted this case on behalf of the federal government
Bryant Woman Pleads Guilty to Conspiracy in Scheme to Steal Feeding Program FundsRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Francine Leon, 42, of Bryant, pled guilty to an Information charging her with conspiring to commit wire fraud. The charge relates to a conspiracy to fraudulently obtain United States Department of Agriculture (USDA) program funds intended to feed children in low income areas during the school year.
Today’s plea hearing took place in Little Rock before United States District Judge James M. Moody, Jr. Judge Moody will sentence Leon at a later date.
The USDA funds the Child and Adult Care Feeding Program, which includes an at-risk after school component. In Arkansas, the feeding programs are administered by the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. Once approved, they can provide meals as part of the feeding program and be reimbursed based on the number of eligible meals they serve.
According to facts read at the plea hearing, Leon operated as a sponsor for a feeding program through an organization called "Brighter Kids, Brighter Futures." At times during the period charged in the Information, Leon approved sites in Cotton Plant, Wheatley, Poplar Grove, Morrilton, Brinkley and West Helena. Leon admitted that she was recruited by former DHS employee Tonique Hatton—who is indicted on similar charges in case number 4:14-cr-000250 JM—and another former DHS employee to participate. They explained that they would do all of the paperwork and make sure Leon received the maximum amount possible for each Site. They did this through overstating the number of children that were fed. In exchange, out of the money she received, Leon paid cash initially back to Hatton and then later to the second DHS employee. Leon received a total of approximately $1,003,630. Leon withdrew approximately $534,710 in cash. Leon paid Hatton between approximately $100,000 - $110,000 and the other DHS employee between approximately $60,000 - $80,000.
Leon is the third person to plead guilty concerning USDA feeding program funds. The previous charges filed in this investigation and Leon’s information detail alleged fraud involving over $10 million in USDA feeding program funds. Kattie Jordan and Christopher Nichols previously pled guilty to conspiracy to commit wire fraud on August 3, 2015 and January 15, 2016, respectively.
The statutory penalty for conspiracy to commit wire fraud is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than three years supervised release.
The investigation is ongoing and is being conducted by the USDA–Office of Inspector General, Federal Bureau of Investigation, Internal Revenue Service–Criminal Investigations, and United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana Harris and Allison W. Bragg. If you are aware of any fraudulent activity regarding these feeding programs, please email that information to [email protected].
Brothers Sentenced to 20 Years for Running Violent Human Trafficking EnterpriseRead the Press Release
PHILADELPHIA – Mykhaylo Botsvynyuk, 38, and Yaroslav Churuk, 48, both of Ukraine, were each sentenced today to 20 years in prison for their roles in a human trafficking enterprise. The brothers were convicted at trial, on February 24, 2015, of conspiracy to violate RICO, in relation to several predicate offenses in furtherance of the conspiracy, including: a) peonage; b) involuntary servitude; c) extortion and attempted extortion; d) and several immigration offenses, including bringing aliens into the United States at a place other than a designated port of entry, encouraging or inducing illegal entry of aliens, transporting aliens, and harboring illegal aliens for purposes of financial gain. At the 2015 trial, the government presented the testimony of seven victims of trafficking and several family member victims from Ukraine who received extortionate threats of physical harm from other members of and associates of the enterprise.
From the Fall of 2000 through the Spring of 2007, members of the enterprise lured Ukrainian nationals into the United States with promises of good-paying jobs, room and board, and the opportunity to live and work in the United States to earn up to $500 per month and/or approximately $10,000 after three years’ work. The criminal organization provided the smuggled workers with all of the necessary travel documents and costs, including false travel documents, plane and/or bus tickets, hotel money, cash for travel expenses, visas to Mexico, and even provided attorneys to assist those detained by U.S. immigration authorities upon crossing the Mexico/U.S. border. Once in the United States, the smuggled workers were divided up and each assigned to work for defendant Mykhaylo Botsvynyuk, Omelyan Botsvynyuk, Yaroslav Churuk or Stepan Botsvynyuk. Each brother had a “crew” of workers that were placed in various cities to do nighttime labor in large retail stores cleaning and waxing floors. The evidence at trial established that the Botsvynyuk brothers instituted a reign of terror and a climate of fear to maintain their workforce and prevent them from escaping. The defendant participated in the physical abuse and beatings of some of the workers. The violence that enterprise members instituted against the victims included rape of female workers, beatings, kicks, slaps and punches against the male workers. The victims were not paid for their work and received a paltry stipend for food.
In addition to the prison terms, U.S. District Court Judge Paul S. Diamond ordered each to: serve three years of supervised release, pay joint and several restitution in the amount of $288,272, and pay a $100 special assessment.
Omelyan and Stepan Botsvynyuk were convicted in a separate trial and sentenced to life plus 20 years, and 20 years in prison, respectively.
The case was investigated by the Joint FBI Organized Crime/ICE Human Trafficking Alien Smuggling Task Force. Assistance was provided by Pennsylvania State Police, the Philadelphia Police Department, the Department of Labor Office of Inspector General, Toronto Police Department, German National Police, Berlin State Police, Ukraine Security Service, US National Central Bureau, the U.S. Department of Justice Office of International Affairs, and INTERPOL. It is being prosecuted by Assistant U.S. Attorneys Daniel A. Velez and Michelle Morgan.
Brothers Convicted for their Participation in an Identity Theft SchemeRead the Press Release
Following a five-day trial before United States District Court Judge William P. Dimitrouleas, a jury convicted two brothers of all seven counts in the indictment for their participation in an identity theft scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcements Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
Bechir Delva, 24, and Dan Kenny Delva, 27, both of Miramar, were each convicted of one count of conspiracy to possess fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(b)(2), one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and five counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). The defendants were remanded into custody following their conviction.
According to evidence presented at trial, the defendants conspired to possess and did possess debit cards and over 1,600 Social Security numbers issued to other persons. To protect the stolen items in their possession, the defendants possessed several firearms, including an AR-15 rifle, a SIG 522 rifle and a .380 pistol. At trial, eight victims testified that they neither knew the defendants nor authorized them to possess their Social Security numbers and other personal information.
The defendants are scheduled to be sentenced by United States District Court Judge William P. Dimitrouleas on May 11, 2016.
Mr. Ferrer commended the investigative efforts of IRS-CI and ICE-HSI. The case is being prosecuted by Assistant U.S. Attorney John R. Byrne.
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.
Brooke County, WV man pleads guilty to methamphetamine traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Charles A. Marker, 40, of Wellsburg, West Virginia, pled guilty in federal court to methamphetamine trafficking, United States Attorney William J. Ihlenfeld, II, announced.Throughout 2015, Marker conspired with additional individuals to manufacture, possesses, and distribute methamphetamine in Brooke County, West Virginia.
Marker pled guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine.” He faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Vogrin prosecuted the case on behalf of the government. The Hancock, Brooke, Weirton Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James E. Seibert presided.
Brewster Man Convicted by Jury of Assaulting a Park Ranger on Cape Cod BeachRead the Press Release
BOSTON – Following a three-day trial, a federal jury in U.S. District Court in Boston convicted a Brewster man for assaulting a Park Ranger on a federally-protected beach in Eastham, Mass.
Donald L. Savage, 57, was convicted of assaulting a federal officer. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for May 26, 2016.
On June 6, 2015, Savage and his wife requested permission to park in a restricted lot at the Coast Guard Beach, which is part of the Cape Cod National Seashore in Eastham. Park attendants granted Savage permission to park for 10 minutes, and instructed him not to go on the protected beach. After 30 minutes, Savage had not left the beach and the gate attendants requested assistance from a Park Ranger. When the Ranger arrived and spoke with Savage, he refused to provide identification despite repeated requests. Savage became hostile and the Ranger requested that he sit on the ground. Eventually, Savage provided a driver’s license, but after a few minutes of sitting he got up and began a physical altercation with the Ranger. During the altercation, which was captured on the Ranger’s body camera, Savage bit the Ranger’s right ring finger causing a significant injury. The Ranger drew his Taser and ordered Savage to the ground. After sitting on the ground for five minutes, Savage got up and again physically confronted the Ranger at which point the Ranger tased Savage. Within minutes, additional law enforcement officers arrived.
The charge of assaulting a federal officer provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Leslie Reynolds, Chief Ranger of Cape Cod National Seashore; and Eastham Police Chief Edward Kulhawik, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
Bethany Man Charged with Manufacturing Counterfeit CurrencyRead the Press Release
Oklahoma City, Oklahoma – On February 23, 2016, DANIEL JOHNSON, of Bethany, Oklahoma, was charged by complaint in the Western District of Oklahoma with manufacturing counterfeit currency.
According to an affidavit in support of the complaint, U.S. Secret Service agents obtained a search warrant for a commercial office in west Oklahoma City on February 19, 2016. Among other things, agents had learned that nineteen discarded stainless steel plates with faded images of Federal Reserve notes had been discovered in a dumpster near the office. When they executed the search warrant, they found an industrial printing press, ink, and plates designed to stamp sheets of counterfeited currency together. They also found personal mail addressed to Johnson, who had been under investigation for counterfeiting for several months.
Johnson’s initial appearance took place today before United States Magistrate Judge Shon Erwin.
The crime of manufacturing counterfeit currency carries a maximum penalty of twenty years in prison, three years of supervised release, and a fine of $250,000.
"The Secret Service is committed to protecting our financial system and preserving the integrity of U.S. currency," said Joseph Slawinski, Assistant to the Oklahoma City Special Agent in Charge. “The Secret Service appreciates the support of the U.S. Attorney’s Office, U.S. Postal Inspection Service, IRS-Criminal Investigations, Homeland Security Investigations, FBI, Oklahoma Highway Patrol, the Oklahoma City Police Department, the Moore Police Department, the Norman Police Department, and the Oklahoma Bureau of Narcotics and Dangerous Drugs for their assistance, as well as numerous other law enforcement partners who work in cooperation with the Oklahoma City Economic and Identity Crimes Task Force throughout the state of Oklahoma.”
Reference is made to the complaint and other public filings for further information. The complaint is only an allegation and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial, at which the government must prove guilt beyond a reasonable doubt.
This case is the result of an investigation by the Oklahoma City Economic and Identity Crimes Task Force, which is hosted by the United States Secret Service. It is being prosecuted by Assistant U.S. Attorney Charles W. Brown.
Assisted Living Facility Manager Indicted for Stealing Elderly Residents’ Identities to Obtain Credit CardsRead the Press Release
Baltimore, Maryland – A federal grand jury indicted Salah Eldean Sood, age 34, of Baltimore, today on charges arising from a scheme to open credit card accounts using the stolen identity information of elderly persons who were in Sood’s care at Holland Manor Eldercare, an assisted living facility in Towson, Maryland.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services (HHS); Chief James W. Johnson of the Baltimore County Police Department; Baltimore County State’s Attorney Scott Shellenberger; and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division (SSA).
According to the four count indictment, Sood managed Holland Manor Eldercare. From July 2014 to January 2016, Sood used the names and social security numbers of three elderly persons who resided at the assisted living facility to apply for and receive six credit cards from a bank. Sood falsely represented himself to the bank as the resident in whose name he applied for the credit card. Sood added himself as an authorized user on those accounts and made over $75,000 in purchases using the accounts.
Sood faces a maximum sentence of 30 years in prison and a $1 million fine for bank fraud, and a mandatory minimum of two years in prison consecutive to any other sentence imposed on each of three counts for aggravated identity theft. An initial appearance has not yet been scheduled. Sood is detained in federal custody.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended HHS, the Baltimore County Police Department, Baltimore County State’s Attorney’s Office and SSA for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Lauren E. Perry and Roann Nichols, who are prosecuting the case.
24 February 2016
Youngstown man faces federal firearm and drug chargesRead the Press Release
A federal grand jury returned an 11-count indictment charging Raymond R. Ingram, 36, of Youngstown, with distributing crack cocaine, heroin and buprenorphine, maintaining a drug premises and being a felon in possession of a firearm and ammunition, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
Ingram distributed crack cocaine, heroin and buprenorphine on various dates in May 2015. He maintained a place on Stewart Avenue in Youngstown for the purpose of distributing crack cocaine and heroin, according to the indictment.
Ingram also possessed a Smith & Wesson, model SW9VE, 9mm semi-automatic pistol and ammunition, despite a prior felony conviction in the Medina County Court of Common Pleas in 2010, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mahoning Valley Law Enforcement Task Force. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Washington State Man, Brother and Sister-In-Law Arrested and Charged in A Scheme to Defraud Federal Research FundingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, NY—U.S. Attorney William J. Hochul, Jr. announced today that Haifang Wen, aka Harry, 41, of Pullman, WA, his brother Bin Wen, aka Ben, 44, and Ben’s wife Pang Wen, 43, aka Jessica, both formerly of Horseheads, NY and most recently of Great Falls, VA, were arrested and charged by criminal complaint with conspiring to and making false material statements to federal agencies, perpetrating a wire fraud scheme, and conspiracy to engage in financial transactions with the proceeds of the false statement and wire fraud schemes. The charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine.
“As charged, the defendants took money intended to foster innovative research by small businesses, and instead used for their own personal use,” said U.S. Attorney Hochul. “This fraud scheme had the effect of depriving deserving businesses of the opportunity for research funds, while simultaneously hurting the very Western New York communities where the research and work were most needed. This Office will continue to protect federal taxpayers, the agencies that expend public money, and legitimate businesses which seek to fairly compete for research dollars.”
Assistant U.S. Attorney Bradley E. Tyler, who is handling the case, stated that according to the complaint, the defendants engaged in a scheme to defraud the federal government of federal research funds that were awarded to companies controlled by the defendants. Haifang Wen, Bin Wen and Pang Wen are accused of:
• fabricating letters of support and investment; • providing false information in research grant proposals and reports regarding business entities, business employees, business/research facilities, matching funds and investments; and
• providing falsified reports and emails regarding how federal research funds were expended.The defendants received approximately 30 grants totaling approximately $8,000,000 from federal agencies, including the National Science Foundation, the Department of Energy, the Department of Transportation and the U.S. Department of Agriculture. The grant award proceeds were to be used for the development of asphalt composition technologies. Grant award funds were initially deposited into bank accounts controlled by the defendants in Horseheads and Elmira, NY, to then be distributed for the defendants’ personal use, and not the technology development represented in their grant applications.
The defendants will make initial appearances at a later date in the Western District of New York.
The criminal complaint is the result of a joint investigation by special agents with the National Science Foundation, Office of Inspector General, the Internal Revenue Service, Criminal Investigations, under the direction of Special Agent in Charge Shantelle Kitchen, New York Field Office, Special Agent in Charge Teri Alexander, Seattle Field Office, and Special Agent in Charge Thomas Jankowski, Washington DC Field Office, the Department of Transportation, Office of Inspector General, under the direction of Special Agent in Charge Douglas Shoemaker and the Federal Bureau of Investigation, under the direction of Special Agent in Charge Frank Montoya, Jr., Seattle Division, and Adam S. Cohen, Buffalo Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Video Poker Business Owner Sentenced to PrisonRead the Press Release
Contact Person: Jim May (803) 929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles stated that Larry Flynn, a/k/a L.W., age 40, of Richland County, South Carolina, was sentenced in federal court in Columbia, South Carolina, for operation of an illegal gambling business, a violation of 18 U.S.C. § 1955; tax evasion, a violation of 26 U.S.C. § 7201; and failure to pay taxes, a violation of 26 U.S.C. § 7203. Senior United States District Judge Joseph F. Anderson of Columbia sentenced Flynn to 15 months in the Bureau of Prisons, plus three years supervised release, and ordered Flynn to pay $251,000 in restitution to the Government.
Evidence presented during the plea and sentencing hearings showed that Mr. Flynn ran the illegal video poker business called Magic Minutes from 2011-13. Magic Minutes placed video poker machines throughout the state, generally in gas stations, liquor stores and party shops. The machines allowed gamblers for a fee to play poker, black jack, keno and other games of chance – with the ability to cash out their winnings with the owners of the stores where the machines were housed. Magic Minutes was a profitable illegal gambling business, in two years making well over a million dollars. However, during this same time, the defendant paid no taxes and had members of his family on Medicaid.
The case was investigated by agents of the FBI, SLED, IRS, as well as the offices of the South Carolina Attorney General and the United States Attorney’s Office. Assistant United States Attorneys Jim May and Jay Richardson of the Columbia United States Attorney’s Office prosecuted the case.#####
Troy Man Pleads Guilty to Health Care FraudRead the Press Release
ALBANY, NEW YORK – Michael VonFricken, age 44, of Troy, New York, pled guilty today to obtaining false receipts for orthodontic services and submitting them to his union’s health care plan, announced United States Attorney Richard S. Hartunian.
VonFricken was charged with health care fraud for obtaining $32,732 in cash reimbursements from the Health and Welfare Plan of the Plumbers and Steamfitters, Local Union Number 7. Between July 1, 2008 and March 5, 2015, he submitted approximately 17 fake receipts for orthodontic work that he did not receive.
U.S. District Judge Mae A. D’Agostino is scheduled to sentence Michael VonFricken on June 21, 2016. His brother John VonFricken, age 50, also of Troy, was separately charged with fraudulently obtaining $54,600 in cash reimbursements from the same union. John VonFricken also pleaded guilty and is scheduled to be sentenced by Judge D’Agostino on June 3, 2016.
The convictions carry a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.
Tohatchi Man Arrested on Federal Murder ChargeRead the Press Release
ALBUQUERQUE – Dennison Hale, 42, an enrolled member of the Navajo Nation who resides in Tohatchi, N.M., made his initial appearance today in federal court in Farmington, N.M., on a criminal complaint charging him with murder. Hale remains in custody pending a preliminary hearing and a detention hearing, both of which are scheduled for February 26, 2016, in federal court in Albuquerque, N.M.
Hale was arrested on Feb. 23, 2016, by the FBI on a criminal complaint alleging that he murdered a Navajo woman on the Navajo Indian Reservation in San Juan County, N.M. The criminal complaint alleges that on Feb. 20, 2016, Hale struck the victim in the head and fled from the scene, the victim’s home in Hogsback, N.M. The victim was subsequently transported by helicopter to the hospital, where she was pronounced dead.
If convicted of the crime charged in the criminal complaint, Hale faces a statutory maximum penalty of life imprisonment. Charges in criminal complaints are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Farmington office of the FBI and the Navajo Nation Department of Public Safety. Assistant U.S. Attorney Michael D. Murphy is prosecuting the case.
This case was brought as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Ten Defendants Sentenced for Roles in Methamphetamine Distribution ConspiracyRead the Press Release
WICHITA FALLS, Texas — Ten defendants who pleaded guilty in October 2015 to their respective roles in a methamphetamine distribution conspiracy that operated in Wichita Falls, Texas, from approximately March 2014 to August 2015, were sentenced on Monday by U.S. District Judge Reed C. O’Connor, announced U.S. Attorney John Parker of the Northern District of Texas.
Nine residents of Wichita Falls received the following federal prison sentences:Mark Anthony Peysen, 54, 180 months
Tamara Ann Beasley, 43, 51 months
Clinton Ray Durham, 47, 63 months
John Monroe Drullinger, Jr., 53, 155 months
Chad Edward Fluharty, 36, 110 months
Juan Anthony Gabaldon, 31, 168 months
Vincent Mark Hinson, 36, 151 months
Curtis Lisle Shawver, 28, 168 months
Cody Shane Walsh, 30, 240 monthsDallas resident Michael David Thompson, 50, was sentenced to 168 months in federal prison.
Each pleaded guilty to one count of conspiracy to possess with intent to distribute five grams or more of methamphetamine, a Schedule II controlled substance. A total of 13 were charged in the conspiracy. One defendant, James Anthony Streadwick, 54, of Wichita Falls, pleaded guilty to the same offense and was sentenced last month to 292 months in federal prison. Two defendants, William Muyleart and Kimberly Paulk Shaffer, remain fugitives.
According to documents filed in the case, from approximately March 2014 to August 12, 2015, these defendants conspired together, and with others, to possess with intent to distribute and distribute five grams or more of methamphetamine. They arranged to acquire the methamphetamine and used residences and other locations in the Northern District of Texas to package and distribute it to customers. They delivered and distributed, and coordinated the delivery and distribution of, quantities of methamphetamine. They also acted as intermediaries and brokers to negotiate the acquisition, price, sale and delivery of the methamphetamine, as well as the collection of payment for the methamphetamine.
The Wichita County District Attorney’s Office, the Wichita Falls Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Mary Walters was in charge of the prosecution.
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Steve Casaus Pleads Guilty to Federal Firearms ChargeRead the Press Release
ALBUQUERQUE – Steve Casaus, 43, of Albuquerque, N.M., pleaded guilty this morning in federal court to being a felon in possession of a firearm and ammunition. The guilty plea was announced by U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso, Texas, and Chief Gorden Eden, Jr., of the Albuquerque Police Department (APD).
Casaus was charged in a criminal complaint on April 25, 2014, with unlawfully possessing a firearm and ammunition on April 21, 2014, in Bernalillo County, N.M. According to the criminal complaint, Casaus was arrested after APD officers after they observed what they believed to be a drug deal, and based on an outstanding arrest warrant for failing to appear on a pending state court case. The complaint alleged that at the time of his arrest, Casaus was in possession of $20,790.00 in cash, 1.3 grams of methamphetamine, drug paraphernalia, and a firearm loaded with six rounds of ammunition.
Casaus was subsequently indicted on June 11, 2014, and charged with being a felon in possession of firearms and ammunition on April 21, 2014, in Bernalillo County. Casaus was prohibited from possessing firearms or ammunition because of his prior felony convictions of disarming a peace officer, aggravated battery on a peace officer, trafficking by possession with intent to distribute and conspiracy to commit unlawful taking of a motor vehicle.
The federal prosecution of Casaus was stayed during the pendency of unrelated state court proceedings. Casaus was arrested on the federal charge in Jan. 2016, after he was transferred into federal custody from state custody.
During today’s change of plea hearing, Casaus pled guilty to the indictment. The guilty plea was entered without the benefit of a plea agreement.
At sentencing, Casaus faces a maximum sentence of ten years in federal prison. Casaus remains detained pending his sentencing hearing, which has yet to be scheduled.
The case was investigated by the Albuquerque office of Homeland Security Investigations and APD, with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney David M. Walsh is prosecuting the case.
The case is being prosecuted as part of the federal “worst of the worst” anti-violence initiative. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior felony convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
St. Thomas Man Sentenced to Four Months in Prison for Impersonating a Federal Officer and BlackmailRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez sentenced today George W. Lewis, Jr., 50, of St. Thomas, to four months in prison and one year of supervised release for impersonating a federal officer and blackmail, United States Attorney Ronald W. Sharpe announced. Judge Gomez also ordered Lewis to perform 400 hours of community service, and pay a special assessment of $125.
Lewis pleaded guilty on November 6, 2015, to two counts of an indictment charging him with impersonating a federal officer and blackmail. According to court records, between October 2014 and January 2015, Lewis presented himself as being employed by immigration. In that pretend capacity, he befriended an illegal alien. When that relationship ended, Lewis threatened to have the illegal alien deported even though Lewis knew he was not an employee of immigration and had no authority to do so.
This case was investigated by Immigration and Customs Enforcement’s Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Everard E. Potter.
Smyrna, Tennessee Resident Guilty of Supplemental Security Income FraudRead the Press Release
Claimed she lived alone in Water Valley, Kentucky to receive benefits
PADUCAH, Ky. – A Smyrna, Tennessee woman pleaded guilty in United States District Court last week before Senior U.S. District Judge Thomas B. Russell for lying about where she lived in order to receive Supplemental Security Income, announced United States Attorney John E. Kuhn, Jr. Supplemental Security Income (SSI) is a Federal income supplement program funded by general tax revenues (not Social Security taxes) that is designed to provide cash to aged, blind, and disabled people, who have little or no income, in order to meet basic needs for food, clothing, and shelter.
According to the plea agreement, Mary Jane Higgins, 64, applied for and was denied SSI benefits in March of 2001 due to her co-habitation with her husband in Smyrna, Tennessee and her husband’s income being too high for qualification of benefits. Higgins then re-applied for SSI benefits in July of 2001 and claimed that she had moved from Smyrna, Tennessee to Water Valley, Kentucky. The defendant claimed that by living in Water Valley, she no longer lived with her husband and no longer enjoyed the benefits of his income, which earlier had precluded her eligibility for SSI benefits. The defendant’s reapplication was approved and defendant received SSI payments from July of 2001 through July of 2014.
Furthermore, on April 5, 2010, April 6, 2011, and May 7, 2013, Higgins completed interviews for redetermining her eligibility for SSI payments. On all three occasions, Higgins claimed to live alone in Water Valley, when, in fact, she was actually living with her husband in Smyrna. During the time periods discussed in the interviews, her husband’s income would have continued to prevent her eligibility for SSI benefits.
On July 24, 2014, Higgins came to the Social Security Administration Office in Mayfield, Kentucky, for a pre-scheduled interview with SSA personnel regarding her SSI benefits. Higgins claimed that she was still separated from her husband and living in Water Valley. The defendant also claimed that her husband had dementia and that she hadn’t seen her husband in several months. However, her husband had actually driven her to the interview that day and was outside in the parking lot sitting in their car during the interview when Higgins was making these false statements.
Higgins has agreed to pay $120,850.88 of restitution to the United States Commissioner of Social Security and the Kentucky Department of Medicaid Services. Sentencing is scheduled before Senior Judge Russell on June 14, 2016 in Paducah.
This case is being prosecuted by Assistant United States Attorney Nute A. Bonner and was investigated by the Social Security Administration Office of the Inspector General.
Slidell Woman Sentenced for Lying to Federal AgentsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TRACY C. HARTMAN, 49, of Slidell, was sentenced today for lying to federal agents.
U.S. District Judge Martin L.C. Feldman sentenced HARTMAN to three years probation. Additionally, HARTMAN was ordered to pay $9,443 in restitution to the Small Business Administration (SBA) which is the amount of money lost by the SBA while the loan was suspended.
According to court documents, on October 21, 2015, HARTMAN pled guilty to one count of a Bill of Information for making false statements to an agency of the United States. According to the Bill of Information, on January 4, 2006, HARTMAN and her husband were approved for a SBA Disaster loan in the amount of $182,700, resulting from Hurricane Katrina damages.
HARTMAN and her husband defaulted on the SBA disaster loan. As a result of the loan default, in or about June 2010, the SBA began garnishment proceedings for Mr. Hartman’s payroll checks from St. Bernard Parish. In or about December 2011, the SBA stopped receiving the HARTMAN’s garnishment payments from St. Bernard Parish. A letter, purporting to be from the SBA, was received by St. Bernard Parish claiming the debt had been paid and to stop the garnishment. The letter was a forgery and was not prepared by the SBA. On or about April 20, 2012, HARTMAN made a false statement to federal authorities that she did not know the origin of the fraudulent letter which was hand delivered to the St. Bernard Parish government by her husband on or about November 29, 2011. After further investigation, it was determined that HARTMAN composed the letter.
U.S. Attorney Polite praised the work of the Small Business Administration, Office of Inspector General in investigating this matter. Assistant United States Attorney Carter K. D. Guice, Jr. of the Fraud Unit was in charge of the prosecution.
Rochester Man Sentenced on Marijuana and Gun ChargesRead 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 Laverne Singletary, 49, of Rochester, NY, who was found guilty following a federal jury trial of possessing marijuana and being a felon in possession of a firearm, was sentenced to 57 months in prison by Chief U.S. District Court Judge Frank P. Geraci.
Assistant U.S. Attorneys Craig Gestring and Charles E. Moynihan, who handled the case, stated that on October 6, 2012, Singletary, a four-time convicted felon, was arrested on Roth Street in Rochester after law enforcement attempted to stop him for carrying an open beer can on a public sidewalk. Upon being approached by law enforcement officers, the defendant ran but was caught by the officers after a short foot pursuit. Singletary resisted attempts by officers to place him in handcuffs. Once handcuffed, officers stood the defendant up from the ground and found a Hungarian-made 7.65mm semi-automatic pistol. In searching Singletary, officers also located thirteen bags of marijuana.
The sentencing is the culmination of an investigation on the part of on the part of Special Agents of the Bureau of Alcohol Tobacco, Firearms and Explosives under the direction of Delano A. Reid, Special Agent in Charge, the Monroe County Office of Probation and Community Corrections, under the direction of Robert J. Burns, Chief Probation Officer and the Rochester Police Department under the direction of Chief Michael Ciminelli.
Rochester Man Charged with Possession and Receipt of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Pedro Cruz, 39, of Rochester, NY, was arrested and charged by criminal complaint with receipt and possession of child pornography. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 20 years and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that according to the complaint, the investigation began when law enforcement officers discovered the downloading of child pornography related to a website and a particular user name. The investigation led to the execution of a search warrant at Cruz’s residence. Forensic previews of some computer-related items seized from the defendant’s residence revealed thousands of images of child pornography on a laptop computer, thousands of images of child pornography on a desktop computer, over 30,000 images of child pornography on an external hard drive, and over 20,000 images of child pornography on various CDs and DVDs.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Marian W. Payson and was released on conditions including home detention and electronic monitoring.
The complaint is the culmination of an investigation on the part of the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Special Agent in Charge Adam S. Cohen. The task force consists of the Monroe County Sheriff’s Office, the Rochester Police Department, the Greece Police Department and Immigration and Customs Enforcement, Homeland Security Investigations.
Retired Marine Pleads Guilty to Fatally Stabbing his Girlfriend, Dismembering her Body with a Machete and Dumping her Remains in the Panamanian JungleRead the Press Release
Assistant U.S. Attorneys W. Mark Conover (619) 546-6763 or Shane P. Harrigan (619) 546-6981
NEWS RELEASE SUMMARY – February 24, 2016
SAN DIEGO – Over four years after the disappearance and death of Yvonne Baldelli, Brian Karl Brimager pleaded guilty in federal court today to her murder, admitting that he fatally stabbed Baldelli in the back with a knife, dismembered her body with a machete and disposed of her remains in a remote jungle on the Panamanian island where they lived as a couple for two months. Baldelli’s skeletal remains were discovered by a Panamanian citizen approximately 21 months after her murder.
Brimager pleaded guilty before U.S. District Judge Jeffrey T. Miller to an information charging him with Foreign Murder of a United States National. In his guilty plea, Brimager also admitted that after he murdered Baldelli, he obstructed the investigation into her murder by destroying, concealing and disposing of evidence, including a blood-stained mattress and Baldelli’s dog, clothes and jewelry; accessing Baldelli’s email account after her murder and impersonating Baldelli in emails sent from her account to friends and family; withdrawing money from Baldelli’s bank account in Costa Rica after her death; and providing false statements to a federal agent – all in an attempt to make it seem as though Baldelli were alive and well and traveling with another man in Costa Rica.
As a result of his guilty plea, Brimager faces up to life in prison. Brimager has been in federal custody since June 2013. A sentencing hearing before Judge Miller is scheduled for May 25, 2016 at 10 a.m.
“Brian Brimager took a young woman’s life in a heinous way and then further victimized her family by creating a cruel lie that she was happily traveling the world with another man,” said U.S. Attorney Laura Duffy. “Now that Brimager has finally admitted his crime, we hope that the truth, and knowing that their daughter’s murderer will serve decades in prison, will give this grieving family a sense of justice and peace.”
Duffy added: “This prosecution was made possible by the hard work and dedication of the FBI Offices in San Diego and Panama, our colleagues in the Department of Justice, the U.S. Mission in Panama City, and most notably, the cooperation and assistance of the Panamanian Government, whose police and prosecutors enabled our office to bring this prosecution by providing access to witnesses and evidence.”
“Mr. Brimager's guilty plea is another step in obtaining justice for the victim in this case, Yvonne Baldelli,” said FBI Special Agent in Charge, Eric S. Birnbaum. “The FBI will continue to work with the U.S. Attorney's Office and our international law enforcement partners to obtain justice for Ms. Baldelli and hold Mr. Brimager accountable for her brutal murder.”
DEFENDANT Case Number: 13CR2381-JM
Brian Karl Brimager Age: 39
SUMMARY OF CHARGE
Foreign Murder of a United States National – Second Degree, Title 18, United States Code, Sections 1119 and 1111; Maximum Penalties: Life imprisonment, $250,000 fine, restitution
AGENCIES
Federal Bureau of Investigation, San Diego Division and Panama City Legal Attaché Office
U.S. Embassy, Panama City
Office of International Affairs, U.S. Department of Justice
Human Rights and Special Prosecution Section, U.S. Department of Justice
Reggie Rucker pleads guilty to using charitable donations to pay gambling debts, personal expensesRead the Press Release
Reggie Rucker pleaded guilty today in federal court to charges related to using charitable donations to anti-violence groups he led to pay his gambling debts and personal expenses, including mortgage payments, meals, and entertainment, law enforcement officials said.
Rucker, 68, of Warrensville Heights, is scheduled to be sentenced on May 23. He pleaded guilty to one count of one count of wire fraud and one count of making false statements to law enforcement.
“Today Mr. Rucker publically owned to up to his misdeeds,” said Acting U.S. Attorney Carole Rendon. “He betrayed the trust of his employees, the generous foundations, individuals, and businesses that supported him, and the entire community. I am pleased that the Cleveland Peacemakers Alliance has begun to move forward with its important work, and Mr. Rucker will be held accountable for his crimes.”
“Mr. Rucker used his position of trust to help fund his gambling habits and personal expenses, and ultimately, he betrayed those that supported his work in the community,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “The FBI will continue to work with our partners to identify and hold accountable those who chose to commit such fraud.”
Rucker served as executive director of Amer-I-Can Cleveland (Amer-I-Can), a nonprofit organization located in Shaker Heights. Rucker also served as president of the Cleveland Peacemakers Alliance (CPA), a collaboration of community organizations that employed outreach workers to resolve conflicts in Cleveland. Rucker solicited charitable contributions and deposited them into Amer-I-Can’s bank account, according to the criminal information.
From 2011 through February 11, 2015, Rucker diverted funds intended to support Amer-I-Can and CPA for his personal use and in excess of any compensation he was entitled to receive. Rucker wrote checks to himself and made withdrawals from the Amer-I-Can bank account in amounts and frequencies unrelated to the work he performed, but rather dictated by his own personal financial needs, including to pay his mortgage, entertainment, meals, travel, groceries, and dry cleaning, according to the information.
In furtherance of his scheme, Rucker falsely told current and prospective donors that Amer-I-Can had an independent board of directors to provide oversight when it did not. Rucker also filed documents under the penalties of perjury with the Internal Revenue Service that significantly understated the amount of money he took from the Amer-I-Can bank account. He also falsely claimed to certain actual and prospective donors, “I do not have a salary with Amer-I-Can,” and “We don’t have any contracts that pay me…”, according to the information.
Rucker withdrew approximately $48,000 at casino ATMs in Tampa, Las Vegas, and Cleveland, from the Amer-I-Can bank account from 2011 to 2015, including over $35,000 in 2014 alone. He also paid multiple gambling debts he incurred at a Las Vegas casino totaling $65,000 using money donated to Amer-I-Can and CPA for charitable purposes, according to the information.
In January 2013, when an employee of a Cleveland-area foundation (identified in the charges as Foundation 1) informed Rucker that “The Board (of Foundation 1) has awarded $150,000…for Peacemakers Alliance. Congrats!!!”, Rucker forwarded the email to a Las Vegas casino that he owed $20,000, stating “this is my non profit and they were a little behind getting me my money. I will not actually have this in my hands for 10 days, maybe 14 . . . I like to keep communication open so that I don’t get into any trouble. Can they work with me on this?” On March 5, 2013, Amer-I-Can received $58,751.52 of Foundation 1’s charitable funds, and on March 12, 2013, Rucker wrote a check for $20,000, funded in part by Foundation 1’s donation to Amer-I-Can, to the Las Vegas Casino to pay his gambling debt, according to the information.
In January 2014, after receiving $47,500 from a donor identified in the information as Foundation 2, Rucker wrote himself two checks totaling $40,000 from the Amer-I-Can bank account, and used a portion of this money to pay an outstanding gambling debt of $25,000 to a Las Vegas casino, according to the information.
In September 2014, Rucker incurred a $20,000 debt at a Las Vegas casino. Between November 18 and December 1, 2014, Rucker wrote himself checks totaling approximately $21,200 from the Amer-I-Can bank account and paid the Las Vegas casino $15,000 of his debt. In January 2015, after Amer-I-Can received $47,500 from Foundation 2, Rucker wrote himself a check for $10,000 and paid the remaining $5,000 he owed the Las Vegas casino, according to the information.
Rucker repeatedly solicited grants and donations from foundations, corporations and executives, but failed to disclose his diversion of charitable funds. For example, on November 19, 2014, Amer-I-Can received $10,000 from an entity identified as Foundation 4. The next day, Rucker wrote himself a check for $10,000, but later submitted a report to Foundation 4 that stated: “We appreciated the bridge support granted to us by [Foundation 4], it was helpful in being able to assist high risk and gang affiliated youth. The continued support of [Foundation 4] will be instrumental…,” according to the information.
Rucker also repeatedly cited CPA outreach workers’ lack of pay to justify his requests for additional funds, but did not disclose his personal use of charitable funds. For example, Rucker solicited funds from Foundation 1, which provided approximately $2.45 million to CPA between 2011 and 2015, by claiming that CPA workers “believe they are being disrespected and taken advantage of . . . I can’t hold them together much longer. We have come too far, put too much into this . . . None of us has money!”, according to the information.
This case is being prosecuted by Assistant U.S. Attorneys Adam Hollingsworth and Miranda Dugi following an investigation by the Federal Bureau of Investigation.