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Friday 8 January 2016
Southern Tier Man Sentenced on Drug and Witness Tampering ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Jonathan Fernandes, 37, of Savona, NY, who was convicted after a jury trial of manufacturing at least 50 grams of methamphetamine, distribution of methamphetamine, possession of methamphetamine with intent to distribute, maintaining a drug related premises, possession of materials used to manufacture methamphetamine, possession of a listed chemical with intent to manufacture methamphetamine, possession of marijuana and witness tampering, was sentenced to 20 years in prison by U.S. District Court Judge Elizabeth A. Wolford.Assistant U.S. Attorneys Jennifer M. Noto and Frank H. Sherman, who handled the prosecution of the case, stated that Fernandes manufactured methamphetamine at his residence between January 2011 and December 30, 2012. As part of the investigation, two search warrants were executed in December 2012 by the New York State Police at the residence. Methamphetamine, marijuana, as well as chemicals, products and materials used in the manufacture of methamphetamine, were seized during the searches.
The defendant also willfully caused family members, including his sister and brother-in-law, to attempt to intimidate a witness in the case against Fernandes in order to influence and prevent the testimony of the witness. Prior to trial, the defendant’s sister, Mindy Konopski, 34, pleaded guilty to obstruction of a court order and defendant’s brother-in-law, Andrej Konopski, 28, pleaded guilty to witness tampering in connection with an attempt to influence and prevent the testimony of another witness in defendant’s case. Each was sentenced to six months in prison and six months home detention.
The sentencing is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the New York State Police, under the direction of Major Craig Hanesworth, and the Steuben County Sheriff’s Department, under the direction of Sheriff David Cole.
Southern Texas Accountant Pleads Guilty to Money Laundering ConspiracyRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that Mario Luis Torres, an accountant from the McAllen, Texas, area, pled guilty yesterday afternoon in federal district court to a charge of Conspiracy to commit Money Laundering. Sentencing has been set for April 19, 2016, at 1:30 P.M. before the Honorable Nancy J. Rosenstengel, United States District Judge. At sentencing, Torres faces up to twenty years in prison, a fine of up to $500,000, up to three years of supervised release, and a mandatory special assessment fee of $100.
Evidence in support of this prosecution was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Agencies participating in this case include the Drug Enforcement Administration and the Internal Revenue Service, Criminal Investigations. The case is being prosecuted by Assistant United States Attorney Monica A. Stump.
South Charleston drug dealer sentenced to eight years for Federal heroin crimesRead the Press Release
CHARLESTON, W.Va. – A South Charleston drug dealer was sentenced today in federal court to eight years in prison for five drug crimes, announced Acting United States Attorney Carol Casto. Rahkeem Cheeks, 37, had previously pleaded guilty in August of 2015 to four counts of distributing heroin and one count of possessing heroin with the intent to distribute.
Cheeks admitted that on four occasions between June 2 and June 8, 2015, he sold heroin in Kanawha County to a confidential informant working with law enforcement. After the last controlled purchase, officers executed a search warrant on June 8, 2015, for a residence on Amanita Drive in South Charleston where Cheeks was staying. The officers arrested Cheeks, found him in possession of heroin, and located additional heroin in the residence, along with digital scales, empty plastic bags, and two handguns. Cheeks further admitted that he intended to distribute the heroin found by law enforcement during the search.
The investigation was conducted by the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney Jennifer Rada Herrald handled the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This case is 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 pills and heroin in communities across the Southern District.
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Sentencings for January 4, 2016 - January 8, 2016Read the Press Release
Barry Barrera, 32, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on January 8, 2016, for conspiracy to distribute 500 grams or more of methamphetamine and for possession with intent to distribute methamphetamine. Barrera was arrested in Casper, Wyoming. He received 68 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $300.00 fine and a $200.00 special assessment. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Cassandra Long, 27, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on January 7, 2016, for conspiracy to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Long was arrested in Casper, Wyoming. She received 54 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $300.00 fine and a $100.00 special assessment. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Steve Rawlings, 36, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on January 7, 2016, for conspiracy to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine and for being a felon in possession of firearms. Rawlings was arrested in Casper, Wyoming. He received 70 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $250.00 fine and a $200.00 special assessment. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation, the U.S. Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. 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.
Troy Starrett, 44, of Fort Collins, Colorado, was sentenced by Federal District Court Judge Scott W. Skavdahl on January 5, 2016, for conspiracy to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Starrett was arrested in Fort Collins, Colorado. He received 70 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Prospero Garcia-Valle, 34, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on January 5, 2016, for illegal re-entry of a previously deported alien into the United States. Garcia-Valle was arrested in Jackson, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Paul Presley Reed, 26, of Sparks, Nevada, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 4, 2016, for conspiracy to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Reed was arrested in Rawlins, Wyoming. He received 60 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Roanoke Man Sentenced for Making False StatementRead the Press Release
ROANOKE, VIRGINIA – A Roanoke man, who previously pled guilty to willfully making a false statement to an agent with the Federal Bureau of Investigation, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke.
Shane G. Eaton, 21, of Roanoke, Va., previously waived his right to be indicted and pled guilty to a one count Information charging him with willfully making a false statement in a matter within the jurisdiction of the executive branch of the government of the United States. Today in District Court, Eaton was sentenced to 14 days in jail to be followed by 30 days of supervised release. The defendant was also fined $200 and ordered to pay a $100 special assessment.
“Mr. Eaton falsely accused an ex-girlfriend of making threats against the President of the United States and of her intentions to join a known terrorist organization,” United States Attorney John P. Fishwick Jr. said today. “We take the act of making false statements to law enforcement extremely seriously. The actions of this defendant wasted valuable federal resources and subjected an innocent person to the scrutiny of a federal investigation.”
According to evidence presented at previous hearings by Assistant United States Attorney Daniel Bubar, on March 12, 2015 Eaton walked into the downtown Roanoke offices of the Federal Bureau of Investigation and made a statement to an agent there that his ex-girlfriend made threats against the life of the President of the United States and planned to join ISIS.
During interviews with Eaton’s ex-girlfriend and her mother, agents determined that Eaton’s original statements were false. In subsequent interviews with Eaton, conducted on March 16, 2015 by agents with the FBI and the United States Secret Service, Eaton admitted that his prior statements were not truthful and that he lied about his ex-girlfriend in order to get her into trouble. In a Mirandized statement, Eaton wrote, “I lied to the agent,” and “Sorry for what I had done.”
The Investigation of the case was conducted by the Federal Bureau of Investigation, the United States Secret Service, the Virginia State Police and the Roanoke City Police Department. Assistant United States Attorney Daniel Bubar prosecuted the case for the United States.
Richmond Man Sentenced to over Five Years for Role as Getaway Driver of Gas Station RobberyRead the Press Release
RICHMOND, Va. – Wayne Lewis, 30, of Richmond, was sentenced today to 71 months in prison for his role as the getaway driver in a November 2014 robbery of the Woods Edge Exxon located in Chesterfield County.
Lewis plead guilty on October 8, 2015. According to court documents, on Nov. 23, 2014, Lewis drove his accomplice Spencer Harris to the Woods Edge Road Exxon. While Lewis waited in the getaway vehicle, Harris entered the store armed with an antique firearm and demanded money. After a brief struggle over the weapon, Harris obtained approximately $300 and fled the scene. Shortly thereafter, the robber’s vehicle driven by Lewis was located by police and a high speed pursuit ensued. Due to Lewis’s reckless driving and dangerous road conditions, police were forced to cut off the pursuit and the robbers escaped. Based on investigative leads, the robbers were identified and apprehended several weeks later.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney Erik S. Siebert prosecuted the case. The Chesterfield County Police Department assisted in the investigation of this case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-144.
Rice Farmer Convicted and Fined for Poisoning BirdsRead the Press Release
VICTORIA, Texas – The operator of a Danbury rice farm has entered a guilty plea to illegally killing 65 brown-headed cowbirds and four red-tailed hawks, announced U.S. Attorney Kenneth Magidson along with Southwest Region Special Agent in Charge Nicholas E. Chavez of the U.S. Fish and Wildlife Service (FWS).
Nelson Bulanek, 54, pleaded guilty before U.S. Magistrate Judge Jason B. Libby today. Bulanek was ordered to pay a $10,000 community service payment to the Texas Parks and Wildlife Department (TPWD) Operation Game Thief Program and must serve two years of probation.
“The FWS Office of Law Enforcement contributes to service efforts and mission by conserving migratory birds through the enforcement of federal conservation laws,” said Chavez. “Intentionally and illegally poisoning federally protected migratory birds will be pursued and investigated by our agents. The survival of our nation's wildlife should not be subject to an individual’s harmful and illicit act.”
Bulanek was charged by a criminal information with one count of violating the Migratory Bird Treaty Act, which provides protection for migratory birds. During the plea today, the court learned that Bulanek owns and operates a rice farm in Danbury. He came under investigation after TPWD officials received reports of numerous dead and dying birds on and near Bulanek’s property. Game wardens suspected the birds were poisoned and contacted officials with the FWS for assistance.
Authorities collected several dead brown-headed cowbirds and red-tailed hawks. Agents then conducted field necropsies on two cowbirds and found both had rice in their digestive tract. Bulanek was interviewed by authorities, at which time he admitted to ordering his workers to mix a barrel of rice with a pesticide called Bidrin. Bulanek also admitted he had his workers spread the poisoned rice on a recently harvested rice field for the purpose of killing birds.
Forensic analyses on the rice and birds revealed the presence of Dicrotophos, which is an organophosphate inhibitor used as an insecticide. Bidrin is the brand name for Dicrotophos.
The charges were the result of an investigation conducted by FWS and TPWD. Assistant United States Attorney Hugo R. Martinez is prosecuting the case.
President of Miami-Based Transportation Company Convicted in $70 Million Health Care Fraud SchemeRead the Press Release
The president of a Miami-based transportation company was convicted today for his role in a health care fraud scheme involving three mental health centers based in Miami that resulted in the submission of approximately $70 million in false and fraudulent claims to Medicare.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Division and Special Agent in Charge Shimon Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Damian Mayol, 43, of Miami, was convicted after trial of one count of conspiracy to pay health care kickbacks.
According to evidence presented at trial, Mayol was the president of Transportation Services Providers Inc., a transportation company based in Miami. The evidence showed that Mayol and his co-conspirators used the company to coordinate the payment of illegal health care kickbacks to recruiters, who in return referred patients to three now-defunct clinics in the Miami area: R&S Community Mental Health Inc. (R&S), St. Theresa Community Mental Health Center Inc. (St. Theresa) and New Day Community Mental Health Center LLC (New Day).
The evidence introduced at trial further established that R&S, St. Theresa and New Day were community mental health centers that purported to provide intensive mental health services to Medicare beneficiaries. On behalf of the recruited beneficiaries, the centers billed Medicare for costly partial hospitalization program (PHP) services that were not medically necessary or not provided to patients. Patient records, including group therapy session notes, were falsified to support claims for reimbursement from Medicare. Between January 2008 and December 2010, the centers submitted approximately $70 million in false and fraudulent claims to Medicare. Medicare paid approximately $28 million on those claims, the evidence showed.
In October 2015, co-defendants Santiago Borges, Erik Alonso and Cristina Alonso pleaded guilty to related charges and were sentenced in December 2015 to prison terms ranging from 28 months to 120 months.
The case was investigated by the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Trial Attorneys A. Brendan Stewart and Timothy Loper of the Criminal Division’s Fraud Section are prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Philadelphia Man Admits Delivering Contraband to Inmates at FCI DanburyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the Federal Bureau of Investigation in New Haven, today announced that DANA ERWIN TAYLOR, Jr., 24, of Philadelphia, pleaded guilty yesterday before U.S. District Judge Michael P. Shea in Hartford to two counts of providing or attempting to provide contraband to an inmate of a federal prison.
According to court documents and statements made in court, on two occasions in 2015, TAYLOR traveled to the Federal Correctional Institution in Danbury (FCI Danbury) for the purpose of introducing prohibited contraband into the facility for use by one or more inmates.
During the early morning hours of January 3, 2015, TAYLOR threw several bundles of contraband containing approximately 12 cell phones, along with batteries and chargers, over the perimeter fence of the FCI Danbury compound. The bundles were wrapped in green camouflage fabric and clear tape to provide protection from the elements.
During the early morning hours of August 25, 2015, TAYLOR was stopped on the FCI Danbury grounds, next to the fence, in possession of a backpack containing illegal and prohibited contraband, including 15 cell phones, along with batteries and chargers, eight bundles of synthetic marijuana, tobacco and other items. The items, which were in bundles wrapped in green fabric and clear tape, were intended for one or more inmates in the FCI Danbury.
Judge Shea scheduled sentencing for May 18, 2016, at which time TAYLOR faces a maximum term of imprisonment of two years and a fine of up to $200,000.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Anastasia King.
Olney Man Pleads Guilty to Social Security FraudRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that David Mitchell Carter, 49, of Olney, Illinois, pled guilty to the charge of Theft of Government Funds in the United States District Court in Benton, Illinois. The theft charge constitutes the Social Security fraud. The charge carries maximum penalties of ten years in prison, a $250,000 fine, and three years of supervised release. Sentencing is set for May 3, 2016.
The indictment, to which Carter pled, alleges that from around January 2008, continuing to around January 2014, Carter did knowingly steal and convert money belonging to the Social Security Administration, having a value in excess of $1,000.00, by concealing his employment status in order to receive benefits from the Social Security Administration’s Title II Disability Insurance Benefits program, to which he knew he was not entitled by failing to disclose income through employment.
The case was investigated by the U.S. Social Security Administration, Office of Inspector General, Office of Investigations. The case is being prosecuted by Assistant U.S. Attorney Liam Coonan.
North Carolina Woman Charged with Interfering with Flight CrewRead the Press Release
PHILADELPHIA - Sarah Buffett, 41, of Charlotte, North Carolina, was charged yesterday by Information with assaulting another person, while in the special aircraft jurisdiction of the United States, announced United States Attorney Zane David Memeger. The charge arises from the defendant’s unruly conduct on a flight from Charlotte to London last July, which caused the flight crew to divert the plane to Philadelphia, which inconvenienced hundreds of other passengers.
If convicted the defendant faces a maximum possible sentence of one year in prison, followed by one year of supervised release, a possible fine, and a $25 statutory assessment.
The case was investigated by Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Mark B. Dubnoff.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Norfolk City Treasurer and Former Vice Mayor and City Councilman Indicted on Public Corruption and Perjury ChargesRead the Press Release
NORFOLK, Va. – Anthony L. Burfoot, 48, of Norfolk, was indicted by a federal grand jury on charges of conspiracy to commit honest services wire fraud, honest services wire fraud, conspiracy to obtain property under color of official right, obtaining property under color of official right, and perjury. Burfoot is a former Vice Mayor of Norfolk and City Councilman.
According to the indictment, from 2005 through in or about Feb. 15, 2011, Burfoot engaged in a scheme to defraud the citizens of Norfolk of their right to the honest services of a Norfolk Councilman, Vice Mayor, and Chief Deputy Treasurer. Specifically, the indictment alleges that over a period of years, Burfoot solicited things of value including money, car payments, and home appliances from individuals with matters before council and, in exchange, promised to perform specific official acts as well as other actions on an as needed basis on their behalf. The indictment provides detailed allegations of Burfoot’s illicit relationships with the managers of Tivest Development company as well as TA, another developer and local restaurant owner. The managers of Tivest paid hundreds of thousands of dollars to Burfoot and, in exchange, Burfoot voted in favor of City ordinances that provided City-owned land to Tivest for nominal cost and additional City funds for infrastructure improvements. At Burfoot’s request, TA paid $25,000 to the mother of two of Burfoot’s children after Burfoot promised to obtain the necessary votes for TA to open a gentlemen’s club on Granby Street in Norfolk. Finally, the indictment alleges that Burfoot committed perjury, in numerous ways, by claiming under oath during a federal trial that he had never accepted nor solicited a thing of value in exchange for performing an official act.
The statutes under which Burfoot was charged carry maximum penalties ranging from 5 to 20 years in prison, if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the indictment was unsealed. Burfoot is scheduled to appear today for his initial appearance before U.S. Magistrate Judge Douglas E. Miller. Assistant U.S. Attorneys Melissa E. O’Boyle, Uzo E. Asonye, and Katherine Lee Martin are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-6.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
New York Man Receives Federal Prison Time for Extortion SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ERNEST SYKU, 45, of the Bronx, N.Y., was sentenced yesterday by U.S. District Judge Robert N. Chatigny in Hartford to 12 months and one day of imprisonment, followed by three years of supervised release, for operating an extortion scheme.
According to court documents and statements made in court, SYKU and Robert Francella threatened a Connecticut resident with violence in order to induce the victim to pay an alleged $240,000 debt. SYKU claimed that this debt was owed to SYKU’s deceased uncle, even though the victim stated the debt had been repaid. On one occasion, SYKU told the victim that SYKU was “the one who can break you in many pieces.” SYKU further told the victim that the victim was “doomed” if the victim did not bring SYKU the money. On another occasion, SYKU told the victim that he “crushes everybody’s head who gets in my way.” SYKU also provided his cellular telephone to Francella, who threatened “to cut the head” off the victim. SYKU had promised Francella a portion of any monies collected in order to induce Francella’s participation in the extortion scheme.
At sentencing, the victim stated that he and his spouse were fearful for their family’s safety, particularly because SYKU made references to the location of their home.
SYKU and Francella were arrested on March 13, 2014. After he was arrested, SYKU confessed to law enforcement that he had hired and directed Francella to scare the victim into paying the alleged debt.
On April 27, 2015, SYKU pleaded guilty to one count of attempted collection of extension of credit by extortionate means.
Francella, of Yonkers, N.Y., pleaded guilty on November 17, 2014. On June 1, 2015, he was sentenced to approximately 15 months of imprisonment, time already served, and one year of supervised release.
This matter was investigated by the FBI Fairfield County Organized Crime Task Force and the Bridgeport Police Department. The case was prosecuted by Assistant U.S. Attorneys Hal Chen and Heather Cherry.
New Orleans Man Indicted for Fraud in Aftermath of BP Oil SpillRead the Press Release
U.S. Attorney Kenneth A. Polite announced that GRAEGG L. HOLMES, age 42, of New Orleans, was charged today in a two-count Indictment with wire fraud related to the BP Oil Spill.
According to the Indictment, HOLMES is charged with filing a fraudulent application for relief relating to the April 20, 2010 explosion and fire which occurred on the Deepwater Horizon, an oil rig in the Gulf of Mexico where British Petroleum (BP) had been drilling a well. After the disaster, BP established the Gulf Coast Claims Facility (GCCF) to administer, mediate, and settle claims of individuals and businesses for losses incurred as a result of the Deepwater Horizon incident. The GCCF began receiving and processing such claims in August 2010. The GCCF required any individual filing a claim to submit valid documentation as proof of loss or reduction in earnings due to the oil spill. HOLMES created false documentation related to a non-existent catering business that HOLMES claimed lost money because of the Deepwater Horizon Disaster. The loss to BP from the fraudulent claims totals $33,900.
If convicted, HOLMES faces a possible maximum sentence of ten years imprisonment on each count, to be followed by three years of supervised release and restitution to the GCCF.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
U. S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U. S. Attorney Patrice Harris Sullivan is in charge of the prosecution.
New Jersey man sentenced in Indiana to 20 years for biodiesel fraud schemeRead the Press Release
Indianapolis – Joseph Furando, 50, of Montvale, New Jersey, was sentenced yesterday in Indianapolis, Indiana, to 20 years in prison, three years of supervised release and to pay more than $56 million in restitution for his role in an elaborate scheme to defraud biodiesel buyers and United States taxpayers by fraudulently selling biodiesel incentives, announced U.S. Attorney Josh J. Minkler for the Southern District of Indiana and Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division.
“Joseph Furando used fraud to spin biodiesel programs into a million-dollar home, high-end cars, expensive jewelry and watches and any other luxury that pleased him,” said U.S. Attorney Minkler. “He did so through threats, bullying, and intimidation. With the court’s sentence, all of that unraveled. The agencies and prosecutors who unraveled his schemes have shown how foolish it is to try to prey on these programs.”
“Programs like the Renewable Fuel Standard and the Blender’s Tax Credit open the path toward energy independence and curbing the impact of climate change,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “When people approach these programs with bad faith and seek to exploit them, these purposes are blocked, American businesses are hurt and the treasury of the United States is depleted. This significant prison sentence sends the right message that such fraud will not be tolerated.”
“Fraud in the renewable fuels program compromises our ability to fight climate change and reduce dependence on foreign oil,” said Assistant Administrator Cynthia Giles for Enforcement and Compliance Assurance at EPA. “Yesterday’s sentencing puts a check on illegal behavior and sends a clear message that EPA and its partners will prosecute serious offenders. We are committed to upholding program integrity and protecting responsible companies that play by the rules.”
“We are proud to work with our federal partners to identify and investigate groups that manipulate and utilize federal government programs to line their pockets by fraud,” said Special Agent in Charge W. Jay Abbott of the Indianapolis Office of the FBI. “In doing so, they deceive their customers, their shareholders and the American public. The FBI will continue the fight against this dishonest and fraudulent behavior which harms the American people and the American economy.”
“Federal government tax credits and incentives are put in place to assist the American people,” said Acting Special Agent in Charge David Talcott of the IRS-Criminal Investigation. “The harm is felt by all American taxpayers and our economy when individuals manipulate and take advantage of federal programs. Mr. Furando perpetrated this egregious fraud for his own personal gain. IRS-Criminal Investigation will continue to protect American taxpayers and our economy by vigorously pursuing individuals who prey upon the integrity of our great country.”
During yesterday’s sentencing hearing, Judge Sarah Evans Barker ordered Furando to pay more than $56 million in restitution, jointly and severally with other defendants. That amount reflects the losses Furando and his co-conspirators imposed on fraud victims and United States taxpayers.
Under the terms of a plea agreement, Furando is obligated to forfeit the fruits of his crime, which include a Ferrari, other cars, a million-dollar home, artwork, a piano and two biodiesel powered motorcycles.
Furando’s scheme may be summarized as follows: From 2007 through 2012, Indiana-based E biofuels owned a biodiesel manufacturing plant in Middletown, Indiana. Biodiesel is a fuel that can be used in diesel engines and that is made from renewable resources, including soybean oil and waste grease from restaurants. Under the Energy Independence and Security Act, properly manufactured biodiesel was eligible for a dollar per gallon tax credit as well as another valuable credit, called a Renewable Identification Number (RIN) that petroleum refiners and importers could use to demonstrate compliance with federal renewable fuel obligations. These incentives can be claimed once and only once for any given volume of biodiesel.
Furando admitted that sometime in late 2009, he and his companies, New Jersey-based defendants Caravan Trading Company and CIMA Green, began supplying E biofuels with biodiesel that was actually made by other companies and had already been used to claim tax credits and RINs. Because these incentives had already been claimed, Furando could purchase the biodiesel at much lower prices, sometimes for more than two dollars per gallon less than biodiesel that was still eligible for the credits. The conspiracy functioned as follows: Furando supplied the product to E biofuels and his co-conspirators would claim that E-biofuels made the fuel and then they would illegally re-certify the fuel and sell it at the much higher market price for incentivized biodiesel, known as B100 with RINs. Within the circle of those he trusted, Furando referred to this fraud scheme as “Alchemy.”
Furando, his New Jersey-based companies and his Indiana-based co-defendants realized huge per gallon profits through this scheme, sometimes in excess of $15,000 per truckload. Furando realized his profits through the prices he charged E biofuels. Over the course of approximately two years, the defendants fraudulently sold more than 35 million gallons of fuel for a total cost of over $145.5 million. The defendants realized more than $55 million in gross profits, at the expense of their customers and U.S. taxpayers.
In separate hearings yesterday, three corporations at the heart of the scheme were also sentenced for their joint liability in the scheme. Furando’s companies, CIMA Green LLC, and Caravan Trading LLC, were both sentenced to pay $56 million in restitution and million dollar fines. The companies, which are largely defunct, must serve two years’ probation to ensure that what assets remain are properly directed toward victims. Toward that end, the court imposed, but suspended, the fines. The third company, E biofuels LLC, operated by Furando’s co-defendants Craig Ducey, Chad Ducey and Chris Ducey, was also sentenced to pay the $56 million in restitution. E-biofuels is in bankruptcy and its few remaining assets are being distributed to creditors and victims through the bankruptcy process.
The case is being prosecuted by Senior Litigation Counsel Steven D. DeBrota of the U.S. Attorney’s Office, Assistant Chief Thomas T. Ballantine of the Environmental Crimes Section in the Department of Justice’s Environment and Natural Resources Division and Jake Schmidt, a Special Assistant U.S. Attorney of the U.S. Attorney’s Office and Senior Attorney for the Securities and Exchange Commission.
The collaborative investigation that brought this case to fruition is the result of work by EPA’s Criminal Investigation Division, IRS-Criminal Investigation, the FBI and the Securities and Exchange Commission, with assistance during the investigation by the U.S. Secret Service and the U.S. Department of Agriculture’s Office of Inspector General-Investigations.
All of the other defendants in this case have pled guilty and are awaiting sentencing. Another co-conspirator, Brian Carmichael, was charged in a separate case. Carmichael cooperated with the government before the criminal cases were filed. In December 2015, he received a sentence of five years of imprisonment.
New Jersey Man Sentenced in Indiana to 20 Years for Biodiesel Fraud SchemeRead the Press Release
Joseph Furando, 50, of Montvale, New Jersey, was sentenced yesterday in Indianapolis, Indiana, to 20 years in prison, three years of supervised release and to pay more than $56 million in restitution for his role in an elaborate scheme to defraud biodiesel buyers and United States taxpayers by fraudulently selling biodiesel incentives, announced Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division and U.S. Attorney Josh J. Minkler for the Southern District of Indiana.
“Programs like the Renewable Fuel Standard and the Blender’s Tax Credit open the path toward energy independence and curbing the impact of climate change,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “When people approach these programs with bad faith and seek to exploit them, these purposes are blocked, American businesses are hurt and the treasury of the United States is depleted. This significant prison sentence sends the right message that such fraud will not be tolerated.”
“Joseph Furando used fraud to spin biodiesel programs into a million-dollar home, high-end cars, expensive jewelry and watches and any other luxury that pleased him,” said U.S. Attorney Minkler. “He did so through threats, bullying, and intimidation. With the court’s sentence, all of that unraveled. The agencies and prosecutors who unraveled his schemes have shown how foolish it is to try to prey on these programs.”
“Fraud in the renewable fuels program compromises our ability to fight climate change and reduce dependence on foreign oil,” said Assistant Administrator Cynthia Giles for Enforcement and Compliance Assurance at EPA. “Yesterday’s sentencing puts a check on illegal behavior and sends a clear message that EPA and its partners will prosecute serious offenders. We are committed to upholding program integrity and protecting responsible companies that play by the rules.”
“We are proud to work with our federal partners to identify and investigate groups that manipulate and utilize federal government programs to line their pockets by fraud,” said Special Agent in Charge W. Jay Abbott of the Indianapolis Office of the FBI. “In doing so, they deceive their customers, their shareholders and the American public. The FBI will continue the fight against this dishonest and fraudulent behavior which harms the American people and the American economy.”
“Federal government tax credits and incentives are put in place to assist the American people,” said Acting Special Agent in Charge David Talcott of the IRS-Criminal Investigation. “The harm is felt by all American taxpayers and our economy when individuals manipulate and take advantage of federal programs. Mr. Furando perpetrated this egregious fraud for his own personal gain. IRS-Criminal Investigation will continue to protect American taxpayers and our economy by vigorously pursuing individuals who prey upon the integrity of our great country.”
During yesterday’s sentencing hearing, Judge Sarah Evans Barker ordered Furando to pay more than $56 million in restitution, jointly and severally with other defendants. That amount reflects the losses Furando and his co-conspirators imposed on fraud victims and United States taxpayers.
Under the terms of a plea agreement, Furando is obligated to forfeit the fruits of his crime, which include a Ferrari, other cars, a million-dollar home, artwork, a piano and two biodiesel powered motorcycles.
Furando’s scheme may be summarized as follows: From 2007 through 2012, Indiana-based E‑biofuels owned a biodiesel manufacturing plant in Middletown, Indiana. Biodiesel is a fuel that can be used in diesel engines and that is made from renewable resources, including soybean oil and waste grease from restaurants. Under the Energy Independence and Security Act, properly manufactured biodiesel was eligible for a dollar per gallon tax credit as well as another valuable credit, called a Renewable Identification Number (RIN) that petroleum refiners and importers could use to demonstrate compliance with federal renewable fuel obligations. These incentives can be claimed once and only once for any given volume of biodiesel.
Furando admitted that sometime in late 2009, he and his companies, New Jersey-based defendants Caravan Trading Company and CIMA Green, began supplying E‑biofuels with biodiesel that was actually made by other companies and had already been used to claim tax credits and RINs. Because these incentives had already been claimed, Furando could purchase the biodiesel at much lower prices, sometimes for more than two dollars per gallon less than biodiesel that was still eligible for the credits. The conspiracy functioned as follows: Furando supplied the product to E‑biofuels and his co-conspirators would claim that E-biofuels made the fuel and then they would illegally re-certify the fuel and sell it at the much higher market price for incentivized biodiesel, known as B100 with RINs. Within the circle of those he trusted, Furando referred to this fraud scheme as “Alchemy.”
Furando, his New Jersey-based companies and his Indiana-based co-defendants realized huge per gallon profits through this scheme, sometimes in excess of $15,000 per truckload. Furando realized his profits through the prices he charged E‑biofuels. Over the course of approximately two years, the defendants fraudulently sold more than 35 million gallons of fuel for a total cost of over $145.5 million. The defendants realized more than $55 million in gross profits, at the expense of their customers and U.S. taxpayers.
In separate hearings yesterday, three corporations at the heart of the scheme were also sentenced for their joint liability in the scheme. Furando’s companies, CIMA Green LLC, and Caravan Trading LLC, were both sentenced to pay $56 million in restitution and million dollar fines. The companies, which are largely defunct, must serve two years’ probation to ensure that what assets remain are properly directed toward victims. Toward that end, the court imposed, but suspended, the fines. The third company, E‑biofuels LLC, operated by Furando’s co-defendants Craig Ducey, Chad Ducey and Chris Ducey, was also sentenced to pay the $56 million in restitution. E-biofuels is in bankruptcy and its few remaining assets are being distributed to creditors and victims through the bankruptcy process.
The case is being prosecuted by Senior Litigation Counsel Steven D. DeBrota of the U.S. Attorney’s Office, Assistant Chief Thomas T. Ballantine of the Environmental Crimes Section in the Department of Justice’s Environment and Natural Resources Division and Jake Schmidt, a Special Assistant U.S. Attorney of the U.S. Attorney’s Office and Senior Attorney for the Securities and Exchange Commission.
The collaborative investigation that brought this case to fruition is the result of work by EPA’s Criminal Investigation Division, IRS-Criminal Investigation, the FBI and the Securities and Exchange Commission, with assistance during the investigation by the U.S. Secret Service and the U.S. Department of Agriculture’s Office of Inspector General-Investigations.
All of the other defendants in this case have pled guilty and are awaiting sentencing. Another co-conspirator, Brian Carmichael, was charged in a separate case. Carmichael cooperated with the government before the criminal cases were filed. In December 2015, he received a sentence of five years of imprisonment.
New Bedford Woman Pleads Guilty to Stealing over $60,000 in Social Security BenefitsRead the Press Release
BOSTON – Lynn Medeiros, 49, of New Bedford, pleaded guilty today in U.S. District Court in Boston to stealing over $60,000 in Social Security benefits by continuing to collect her disabled son’s benefits after he left her custody. U. S. District Court Judge Nathaniel M. Gorton scheduled sentencing for April 13, 2016.
In April 2005, Medeiros applied for Social Security Supplemental Security Income (SSI) disability benefits on behalf of her son. By signing the application, Medeiros acknowledged her responsibility to notify Social Security if her son left her custody or otherwise changed his living arrangements. Her son was approved for benefits, and his monthly Social Security checks were issued to Medeiros as his representative payee.
Beginning in August 2007, Medeiros’s son ceased to reside with her. However, each year from 2008 to 2013, Medeiros submitted forms to Social Security falsely stating that her son was still living with her and that she was spending the Social Security money on his behalf. In this manner, from August 2007 through August 2014, Medeiros converted $63,798 in benefits to her own use.
United States Attorney Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. The case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Navajo Man Sentenced to 80 Months for Assaulting Two Navajo MenRead the Press Release
ALBUQUERQUE – Clayton Norvelle Scott, 39, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced this morning in Albuquerque, N.M., to 80 months in prison for his assault conviction. He will be on supervised release for three years after completing his prison sentence.
Scott was arrested on July 10, 2015, on a criminal complaint charging him with assault resulting in serious bodily injury and assault with a dangerous weapon. According to the complaint, on Aug. 16, 2014, Scott assaulted two Navajo men with a knife, requiring the two victims to get medical treatment that included numerous stitches.
Scott was subsequently indicted on July 30, 2015, and charged with two counts of assault resulting in serious bodily injury and two counts of assault with a dangerous weapon.
On Oct. 8, 2015, Scott pled guilty to two counts of assault resulting in serious bodily injury. Scott admitted that on Aug. 16, 2014, he encountered the two victims at a home in Shiprock, and during an argument he swung a knife at the faces of both victims. Scott acknowledged that the injuries he caused to the victims required medical attention and caused the victims to suffer extreme physical pain.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Kyle T. Nayback prosecuted the case.
Minneapolis Heroin Dealer Found Guilty by Federal JuryRead the Press Release
FARGO - U. S. Attorney Christopher C. Myers announced that on Jan. 8, 2016, Michael Antwain Modisett, 32, aka Moe, from Minneapolis, Minn., was found guilty following a five-day trial for conspiracy to possess with intent to distribute and distribution of heroin.
Beginning in 2012 and continuing through April 2014, Modisette and his associates delivered large amounts of heroin--in excess of 1000 grams--to the Fargo-Moorhead area.
The case was investigated by the Fargo Police Department, Moorhead Police Department, and the Drug Enforcement Agency Task Force.
The case was prosecuted by Assistant U. S. Attorneys Brett Shasky and Jennifer Puhl.
Sentencing for Modisett is set for May 18, 2016, in the U. S. District Court, Fargo.
Memphis Man Sentenced to 120 Months for Bank, Business RobberiesRead the Press Release
Memphis, TN – A Memphis man has been sentenced to 120 months for robbing a First Tennessee Bank and Family Dollar Store. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencing today.
According to court information, on March 30, 2014, Marchello Moore, 34, entered the Family Dollar on Knight Arnold Road and posed as a customer. Moore approached the counter and acted as if he was going to purchase an item. When the clerk opened the cash register, Moore pulled out a handgun. The clerk managed to run to the back of the store and press the panic button. Moore was able to take approximately $50 from the cash register. He subsequently fled the scene in a gold Dodge Durango.
On April 7, 2014, Moore robbed a First Tennessee Bank on Kirby Center Cove. According to the bank teller, Moore reportedly approached a bank teller’s station and presented a note that read, "I have a gun/Give me all your money/No dye pack." The bank teller complied with the demand and provided Moore with approximately $1,995 from the cash drawer. Moore then fled the scene in the same gold Dodge Durango.
On April 10, 2014, Memphis Police Department (MPD) officers conducted a traffic stop on the gold Dodge Durango operated by Moore and placed him in custody for the Family Dollar robbery. Subsequent to his arrest, an inventory of the vehicle resulted in the discovery of a Cobra .380-caliber pistol in an air filter underneath the hood. During his post-arrest statement, Moore admitted that he also robbed the First Tennessee Bank.
In September 2015, Moore pled guilty to one count of bank robbery, one count of committing a robbery that affected interstate commerce, and one count of using, carrying, and brandishing a firearm during and in relation to a crime of violence.
On Friday, January 8, 2016, U.S. District Judge Sheryl H. Lipman sentenced Moore to 120 months in federal prison.
This investigation was conducted by the Federal Bureau of Investigation’s (FBI) Safe Streets Task Force, a collective comprised of federal, state and local law enforcement personnel. The MPD investigated this case on behalf of the Safe Streets Task Force. Special Assistant U.S. Attorney Dean DeCandia prosecuted this case on the government’s behalf.
Member of Al Qaeda in the Arabian Peninsula Pleads Guilty to Terrorism ChargesRead the Press Release
Minh Quang Pham, aka Amin, 33, pleaded guilty today in the Southern District of New York to terrorism charges based on Pham’s efforts in support of al Qaeda in the Arabian Peninsula (AQAP), a designated foreign terrorist organization. Pham was arrested in the United Kingdom on June 29, 2012, and was extradited to the United States on Feb. 26, 2015. Pham pleaded guilty to one count of providing material support to AQAP, one count of conspiring to receive military training from AQAP and one count of possessing and using a machine gun in furtherance of crimes of violence.
The plea was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Preet Bharara of the Southern District of New York and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office.
“Minh Quang Pham provided material support to al Qaeda in the Arabian Peninsula and received explosives training from Anwar Aulaqi while in Yemen. With his guilty plea, he will be held accountable for his terrorist activities,” said Assistant Attorney General Carlin. “Counterterrorism is the National Security Division’s highest priority, and we will continue to bring justice to those who seek to aid designated foreign terrorist organizations in their efforts to wage violent attacks against the United States and our allies.”
“As he has now admitted in an American court of law, Minh Quang Pham swore a terrorist’s oath to wage jihad for AQAP,” said U.S. Attorney Bharara. “Pham traveled to Yemen to receive terrorist training, including instructions in bomb-making by the now-deceased senior AQAP leader Anwar Aulaqi. Vowing to wage violent jihad and brandishing a Kalashnikov rifle, Pham provided material support to the highest levels of AQAP. Now, all that awaits him is sentencing for his admitted acts of terrorism.”
“Defendant Minh Quang Pham sought and received military-style training from an al Qaeda affiliate with the intent to martyr himself and inflict harm on behalf of the group,” said Assistant Director in Charge Abbate. “He also attempted to inspire others toward violence through the preparation and dissemination of terrorist propaganda. This case and the subsequent extradition of Pham underscores the unwavering resolve of the FBI and our international law enforcement partners to relentlessly pursue and capture dangerous terrorists anywhere in the world and bring them to face justice in the United States.”
According to the indictment, extradition materials and court filings, and statements made at related court proceedings, including today’s guilty plea:
In December 2010, after informing others that he planned to travel to Ireland, Pham traveled from London, where he resided, to Yemen, the principal base of operations for AQAP. Pham traveled to Yemen in order to join AQAP, to wage jihad on behalf of AQAP and to martyr himself for AQAP’s cause. After arriving in Yemen, he swore an oath of loyalty to AQAP in the presence of an AQAP commander.
While in Yemen in 2010 and 2011, Pham provided assistance to and received training from Anwar Aulaqi, a U.S.-born senior leader of AQAP. Aulaqi personally taught Pham how to create a lethal explosive device using household chemicals and directed Pham to detonate such an explosive device at the arrivals area of London’s Heathrow International Airport following Pham’s return to the United Kingdom in 2011.
During his time in Yemen, Pham also assisted with the preparation and dissemination of AQAP’s propaganda magazine, Inspire. Pham worked directly with a now-deceased U.S. citizen who was a prominent member of AQAP and responsible for editing and publishing Inspire. In addition, AQAP trained Pham in the use of a Kalashnikov assault rifle and provided him such a rifle, which he used in furtherance of his activities on behalf of AQAP in Yemen.
On July 27, 2011, Pham returned to the United Kingdom. Upon his arrival at London’s Heathrow International Airport, U.K. authorities detained Pham, searched him and recovered various materials from him, including various electronic media that contained computer files forensically identical to those possessed by a cooperating witness who had previously reported sharing electronic documents with Pham while they were in Yemen with AQAP. In addition, Pham was found to be in possession of a live round of .762 caliber armor-piercing ammunition, which is consistent with ammunition that is used in a Kalashnikov assault rifle.
Pham was arrested in the United Kingdom on June 29, 2012, pursuant to a provisional arrest warrant obtained by the U.S. Attorney’s Office of the Southern District of New York, which then requested his extradition. Pham then challenged his extradition to the United States. On Feb. 3, 2015, a court in the United Kingdom denied Pham’s challenge and ordered him extradited to the United States. Pham arrived in the Southern District of New York on Feb. 26, 2015.
Pham faces a mandatory minimum sentence of 30 years in prison and a maximum sentence of life in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only as the final sentence will be determined by the judge. Pham is scheduled to be sentenced on April 14, 2016.
Assistant Attorney General Carlin joined U.S. Attorney Bharara in praising the extraordinary investigative work of the FBI’s Washington Field Office. They also expressed their gratitude to the New York Joint Terrorism Task Force for the critical role it played in the investigation and prosecution. Assistant Attorney General Carlin and U.S. Attorney Bharara also thanked the Department of Justice’s Office of International Affairs for their significant assistance, as well as the Metropolitan Police Service and the Crown Prosecution Service for their cooperation in the investigation, prosecution and extradition.
This case is being prosecuted by Assistant U.S. Attorneys Anna M. Skotko, Sean S. Buckley, Shane T. Stansbury and Ian McGinley of the Southern District of New York and Trial Attorneys Kelly Harris and Rebecca Magnone of the National Security Division’s Counterterrorism Section.
Pham Plea Agreement
Member of Al Qaeda in the Arabian Peninsula Pleads Guilty in Manhattan Federal Court to Terrorism ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, John P. Carlin, Assistant Attorney General for National Security, and Paul M. Abbate, the Assistant Director-in-Charge of the Washington, D.C., Office of the Federal Bureau of Investigation (“FBI”), announced today that MINH QUANG PHAM, a/k/a “Amin,” pled guilty in Manhattan federal court to terrorism charges based upon PHAM’s efforts in support of al Qaeda in the Arabian Peninsula (“AQAP”), a designated foreign terrorist organization. PHAM was arrested in the United Kingdom on June 29, 2012, and was extradited to the United States on February 26, 2015. PHAM pled guilty today to one count of providing material support to AQAP, one count of conspiring to receive military training from AQAP, and one count of possessing and using a machine gun in furtherance of crimes of violence.
Manhattan U.S. Attorney Preet Bharara said: “As he has now admitted in an American court of law, Minh Quang Pham swore a terrorist’s oath to wage jihad for AQAP. Pham traveled to Yemen to receive terrorist training, including instructions in bomb-making by the now-deceased senior AQAP leader Anwar Aulaqi. Vowing to wage violent jihad and brandishing a Kalashnikov rifle, Pham provided material support to the highest levels of AQAP. Now, all that awaits him is sentencing for his admitted acts of terrorism.”
Assistant Attorney General John P. Carlin said: “Minh Quang Pham provided material support to al Qaeda in the Arabian Peninsula and received explosives training from Anwar Aulaqi while in Yemen. With his guilty plea, he will be held accountable for his terrorist activities. Counterterrorism is the National Security Division’s highest priority, and we will continue to bring justice to those who seek to aid designated foreign terrorist organizations in their efforts to wage violent attacks against the United States and our allies.”
FBI Assistant Director Paul M. Abbate said: “Defendant Minh Quang Pham sought and received military-style training from an al Qaeda affiliate with the intent to martyr himself and inflict harm on behalf of the group. He also attempted to inspire others toward violence through the preparation and dissemination of terrorist propaganda. This case and the subsequent extradition of Pham underscores the unwavering resolve of the FBI and our international law enforcement partners to relentlessly pursue and capture dangerous terrorists anywhere in the world and bring them to face justice in the United States.”
According to the Indictment, extradition materials and court filings, and statements made at related court proceedings, including today’s guilty plea:
AQAP was designated by the United States Department of State as a foreign terrorist organization in January 2010. AQAP’s leadership has publicly claimed responsibility for plots to murder U.S. nationals and commit terrorist attacks against U.S. interests, including the 2009 Christmas Day bomb plot, in which an AQAP operative attempted to detonate an explosive device on a civilian airplane traveling to Detroit, Michigan. Only months later, AQAP attempted to detonate explosive devices within the holds of commercial airliners traveling to the United States.
In December 2010, after informing others that he planned to travel to Ireland, PHAM traveled from London, where he resided, to Yemen, the principal base of operations for AQAP. PHAM traveled to Yemen in order to join AQAP, to wage jihad on behalf of AQAP, and to martyr himself for AQAP’s cause. After arriving in Yemen, he swore an oath of loyalty to AQAP in the presence of an AQAP commander.
While in Yemen in 2010 and 2011, PHAM provided assistance to and received training from Anwar Aulaqi, a U.S.-born senior leader of AQAP. Prior to Aulaqi’s death in September 2011, Aulaqi called on his followers to conduct attacks against American interests abroad, including by killing American civilians. Aulaqi personally taught PHAM how to create a lethal explosive device using household chemicals, and directed PHAM to detonate such an explosive device at the arrivals area of London’s Heathrow International Airport following PHAM’s return to the United Kingdom in 2011.
During his time in Yemen, PHAM also assisted with the preparation of, and dissemination of, AQAP’s propaganda magazine, Inspire. To that end, PHAM worked directly with a now-deceased U.S. citizen who was a prominent member of AQAP and responsible for editing and publishing Inspire. In addition, Pham received training from AQAP in the use of a Kalashnikov assault rifle, and was provided with a Kalashnikov assault rifle by the organization, which he carried with him in furtherance of his activities on behalf of AQAP in Yemen.
On July 27, 2011, PHAM returned to the United Kingdom from Yemen. Upon his arrival at London’s Heathrow International Airport, United Kingdom authorities detained PHAM, searched him, and recovered various materials from him. For example, PHAM was found in possession of various electronic media that contained computer files forensically identical to those possessed by a cooperating witness who had previously reported sharing electronic documents with PHAM while they were in Yemen with AQAP. In addition, upon his arrival in the United Kingdom from Yemen, PHAM was found to be in possession of a live round of .762 caliber armor-piercing ammunition, which is consistent with ammunition that is used in a Kalashnikov assault rifle.
PHAM was arrested in the United Kingdom on June 29, 2012, pursuant to a provisional arrest warrant obtained by the United States Attorney’s Office for the Southern District of New York, which then requested his extradition. PHAM then challenged his extradition to the United States. On February 3, 2015, a court in the United Kingdom denied PHAM’s challenge, and ordered him extradited to the United States. PHAM arrived in the Southern District of New York on February 26, 2015.
* * *
PHAM, 33, pled guilty to one count of providing and attempting to provide material support and resources to AQAP; one count of conspiring to receive military-type training from, and on behalf of, AQAP; and one count of knowingly carrying and using a firearm (machine gun) in furtherance of crimes of violence. PHAM faces a mandatory minimum sentence of 30 years in prison and a maximum sentence of life in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. PHAM is scheduled to be sentenced on April 14, 2016.
Mr. Bharara praised the extraordinary investigative work of the Washington, D.C., Field Office of the FBI. He also expressed his gratitude to the New York Joint Terrorism Task Force – which principally consists of agents from the FBI and detectives from the New York City Police Department – for the critical role it played in the investigation and prosecution. In addition, Mr. Bharara thanked the Department of Justice’s National Security Division and Office of International Affairs. Lastly, Mr. Bharara also thanked the British authorities, including the Metropolitan Police Service/SO15 Counter Terrorism Command at New Scotland Yard and the Crown Prosecution Service, for their cooperation in the investigation, prosecution, and extradition.
This case is being handled by the Terrorism and International Narcotics Unit of the U.S. Attorney’s Office for the Southern District of New York. Assistant U.S. Attorneys Anna M. Skotko, Sean S. Buckley, Shane T. Stansbury, and Ian McGinley are in charge of the prosecution.
Lubbock Man Sentenced to 188 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
LUBBOCK, Texas — Jacob Seth Thornton, 29, of Lubbock, Texas, was sentenced this morning by Senior U.S. District Judge Sam R. Cummings to 188 months in federal prison, following his guilty plea in September 2015 to one count of receiving a visual depiction of a minor engaged in sexually explicit conduct. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
Judge Cummings ordered Thornton to surrender to the Bureau of Prisons on February 12.
According to plea documents filed in his case, Thornton kept a laptop at his residence that he used to, among other things, search the Internet for images and videos depicting minors engaged in sexually explicit conduct. Thornton used peer-to-peer file sharing software to receive the seven images described in the indictment, as well as many others.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Lubbock County Sheriff’s Office investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted the case.
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Las Cruces Men Plead Guilty to Federal Narcotics Trafficking ChargesRead the Press Release
ALBUQUERQUE – Two Las Cruces, N.M., men pleaded guilty today in federal court to narcotics trafficking charges under plea agreements with the U.S. Attorney’s Office. Luis Cipriano, 42, pled guilty to cocaine and methamphetamine trafficking charges filed in two separate cases, and his son, Christian Cipriano, 22, pled guilty to methamphetamine trafficking charges in one of the cases.
Luis Cipriano, Christian Cipriano and Luis Manuel Enriquez-Ramirez, 36, also of Las Cruces, were charged in a two-count indictment, 15-CR-1798, on May 20, 2015, with participating in a methamphetamine trafficking conspiracy and distribution of methamphetamine. According to the indictment, the three men conspired to distribute methamphetamine on Aug. 19, 2014, in Doña Ana County, N.M.
In a separate case, Luis Cipriano and co-defendant George Ventura, 46, also of Las Cruces, were charged in a four-count indictment, 15-CR-1799, on May 20, 2015, with participating in a cocaine trafficking conspiracy and distribution of cocaine. According to this indictment, Ventura and Luis Cipriano conspired to distribute cocaine from Aug. 5, 2014 through Nov. 13, 2014 in Doña Ana County. The indictment also charged Luis Cipriano with distributing cocaine on Aug. 5, 2014 and on Oct. 10-11, 2014, and Ventura and Luis Cipriano with distributing cocaine on Sept. 8, 2014.
During today’s change of plea hearing, Luis Cipriano pled guilty to charges in both of the indictments against him. With respect to Indictment 15-CR-1798, Luis Cipriano admitted that on Aug. 19, 2014, he and co-defendant Enriquez-Ramirez negotiated to sell methamphetamine to a person who unbeknownst to Luis Cipriano was working with law enforcement. With respect to Indictment 15-CR-1799, Luis Cipriano admitted that on numerous occasions from Aug. 5, 2014 through Nov. 13, 2014, he conspired with Ventura to distribute cocaine to an undercover agent. Under the terms of his plea agreement, Luis Cipriano will be sentenced to 12 years in federal prison followed by a term of supervised release to be determined by the court. Luis Cipriano remains in custody pending a sentencing hearing which has yet to be scheduled.
Christian Cipriano also pled guilty to charges in Indictment 15-CR-1798 today. He admitted that on Aug. 19, 2014, he drove Luis Cipriano to meet with Enriquez-Ramirez to complete a pre-arranged transaction to sell cocaine to a person who unbeknownst to the three co-conspirators was working with law enforcement. At sentencing, Christian Cipriano faces a mandatory minimum of five years and a maximum of 40 years in federal prison followed by not less than four years of supervised release. Christian Cipriano remains in custody pending a sentencing hearing which has yet to be scheduled
Ventura pled guilty to charges in Indictment 15-CR-1799 on Dec. 15, 2015, and admitted participating in a cocaine distribution conspiracy and to distributing cocaine on Sept. 8, 2014. At sentencing, Ventura faces a maximum penalty of 20 years in federal prison followed by not less than three years of supervised release. Under the terms of his plea agreement, Ventura will forfeit $7,600.00, which represents the profits he derived from the drug trafficking offenses charged in the indictment. Ventura remains in custody pending a sentencing hearing which has yet to be scheduled.
Enriquez-Ramirez has yet to be arrested and is considered a fugitive. Charges in indictments are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
These cases were investigated by the Las Cruces office of the DEA and are being prosecuted by Assistant U.S. Attorney Luis A. Martinez of the U.S. Attorney’s Las Cruces Branch Office.
Kwok Cheung Chow (Aka “Raymond Chow,” Aka “Ha Jai,” Aka “Shrimp Boy”) Convicted of Murder and Various Racketeering CrimesRead the Press Release
SAN FRANCISCO - A federal jury in San Francisco convicted Kwok Cheung Chow, aka Raymond Chow, aka “Ha Jai,” aka “Shrimp Boy,” today of racketeering, murder, money laundering, and conspiracy charges, announced Acting United States Attorney Brian J. Stretch, FBI Special Agent in Charge David J. Johnson and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael Batdorf. In completing its verdict form, the jury found Chow guilty of every one of the 162 charges leveled against him.
Chow, 55, of San Francisco, stood trial for participating in a racketeering organization. Chow originally was charged with various racketeering related crimes in a criminal complaint filed March 24, 2015. The complaint charged that the purposes of the organization included the illegal trafficking of controlled substances, extortion, and participation in the collection of illegal debts. On October 15, 2015, the charges were formally amended in a Third Superseding Indictment to include murder. Chow was charged with and today convicted of arranging the murder of Allen Leung, conspiring with others to murder Jim Tat Kong.
“I want to personally thank all the hard-working men and women whose efforts resulted in bringing Mr. Chow to justice,” said Acting U.S. Attorney Brian J. Stretch. “Those dedicated public servants include the prosecutors in this office and the staff that ably assisted them; the employees of our federal partners at the FBI, IRS and the U.S Marshal Service; the employees of our law enforcement partners from the police departments of San Francisco, Oakland, and New York; and the Mercer County New Jersey Sheriff's Office.”
“This conviction represents a just and final end to Mr. Chow's long running and deadly criminal career,” said San Francisco FBI Special Agent in Charge David J. Johnson. “The FBI is dedicated to investigating and prosecuting violent criminal enterprises operating in the Bay Area and will continue to work closely with our state and local partners to make our communities and residents safe.”
The jury’s verdict finds Chow guilty of a register of activities in connection with the racketeering organization and additional conspiracies. In all, Chow was convicted of 162 counts including 125 counts of money laundering, aiding and abetting the laundering of proceeds of narcotics sales, conspiring to deal in illegal sales of goods (including 50 cases of Hennessey XO and 27 cases of Johnnie Walker Blue Label Scotch Whiskey) and engaging in the illegal sale of cigarettes (over 10,000).
The jury trial was held before the Honorable Charles R. Breyer, United States District Judge.
Chow remains in custody where he has been since his arrest on March 26, 2014. His sentencing currently is scheduled to take place on March 23, 2016, before Judge Breyer. Chow is subject to a mandatory life sentence for his conviction of murder with special circumstances in connection with racketeering activity. Chow also faces a maximum sentence of life in prison and a $250,000 fine as a result of his convicted of the racketeering charge; a maximum ten year sentence and $250,000 fine for his conviction of conspiring to commit murder in aid of racketeering; a maximum 20 year sentence and $500,000 fine (or twice the value of the property laundered) for each violation of money laundering; and a maximum charge of five years in prison and $250,000 for each charge of conspiracy. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys William Frentzen, Susan Badger, and S. Waqar Hasib are prosecuting the case with the assistance of Rosario Calderon, Kurk Kosek, Ana Guerra, Marina Ponomarchuk, Victoria Etterer, and Lance Libatique. The prosecution is the result of an investigation by Federal Bureau of Investigation; the U.S. Marshal Service, San Francisco Police Department Gang Task Force; Oakland Police Department; Internal Revenue Service, Criminal Investigation; New York Police Department; and the Mercer County New Jersey Sheriff's Office.
KC Business Owner Pleads Guilty to $100,000 Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the owner of a Kansas City, Mo., business pleaded guilty in federal court today to a wire fraud scheme in which he stole $100,000 from a retiree investor.
Gregory T. Evans, 59, of Kansas City, Mo., pleaded guilty before U.S. District Judge Howard F. Sachs to the charge contained in an Aug. 26, 2015, federal indictment.
Evans is co-owner of Regal Homes, LLC. Evans was introduced to the victim in 2012, when he portrayed a desire to help her to assist impoverished neighborhoods by renovating homes for those in need.
By pleading guilty today, Evans admitted that he offered the victim a chance to invest in a securities deal with a bank in Thailand in 2012. Evans claimed that he had personally invested $500,000 with the company, Elna Enterprise for Aguma Investment/Trust, and was involved in the proposed securities deal. The victim investor authorized two $50,000 wire transfers to Regal Homes but she never received any money from the investment.
Evans must forfeit $100,000, which was derived from the proceeds of the offense, to the government.
Under federal statutes, Evans is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the FBI.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Johnston in Great Falls, on January 7, 2016 and entering pleas of Not Guilty were:
- JAMES ANTHONY WESTERMAN, a 46-year-old resident of Helena, appeared on charges of failure to register as a sexual offender. If convicted of the most serious charge contained in the indictment, WESTERMAN faces 10 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the United States Marshals Service, Lewis and Clark County Sheriff’s Office and Montana Highway Patrol. PACER Case Reference. 15-14
Appearing before U.S. Magistrate Johnston in Great Falls, on January 5, 2016 and entering pleas of Not Guilty were:
- BRANDON JOE ELKINS, a 31-year-old resident of Tulsa, Oklahoma, appeared on charges of receipt of child pornography, possession with intent to distribute methadone, and distribution of methadone to individual under 21 years old. If convicted of the most serious charges contained in the indictment, ELKINS faces 40 years in prison, $2,000,000 in fines and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 15-79
- SANDY MEREDITH HAYES, a 52-year-old resident of Sand Coulee, appeared on charges of felon in possession of a firearm. If convicted of the most serious charge contained in the indictment, HAYES faces 10 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Great Falls Police Department and Montana Probation and Parole. PACER Case Reference. 15-34
Appearing before U.S. Magistrate Ostby in Billings, on January 5, 2016 and entering pleas of Not Guilty were:
- TESSIE KAY HAMILTON, a 36-year-old resident of Billings, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, HAMILTON faces 20 years in prison, $1,000,000 in fines and 3 years supervised release. The case was investigated by the FBI Task Force. PACER Case Reference. 15-143
- GARY LEE QUIGG, a 67-year-old resident of Billings, appeared on charges of conspiracy to possess with intent to distribute and distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine.. If convicted of the most serious charges contained in the indictment, QUIGG faces life in prison, $10,000,000 in fines and 4 years supervised release. The case was investigated by the Montana Division of Criminal Investigation. PACER Case Reference. 15-147
- EARL SAMUEL WALTERS, a 56-year-old resident of Beach, North Dakota, appeared on charges of felon in possession of a firearm and conspiracy to possess controlled substances with intent to distribute. If convicted of the most serious charge contained in the indictment, WALTERS faces 20 years in prison, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 15-91
Appearing before U.S. Magistrate Lynch in Missoula, on January 4, 2016 and entering pleas of Not Guilty were:
- SAMUEL R. FRISCIA, a 25-year-old resident of Polson, appeared on charges of felon in possession of a firearm. If convicted of the charge contained in the indictment, FRISCIA faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 15-28
- RAINY LEE LAMERE, a 30-year-old resident of Great Falls, appeared on charges of felon in possession of a firearm. If convicted of the charge contained in the indictment, LAMERE faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Missoula Police Department. PACER Case Reference. 15-29
- SHACOTTA ST. ONGE, a 22-year-old resident of Missoula, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, ST. ONGE faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Montana Regional Violent Crime Task Force. PACER Case Reference. 15-36
- WADE PATRICK WRIGHT, a 48-year-old resident of Columbia Falls, appeared on charges of possession with intent to distribute controlled substances, possession of a firearm in furtherance of a drug trafficking crime and possession of a firearm not registered in the National Firearms Registration and Transfer Record. If convicted of the most serious charges contained in the indictment, WRIGHT faces life in prison, $1,000,000 in fines and 5 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Flathead County Sheriff’s Office. PACER Case Reference. 15-25
Appearing before U.S. Magistrate Ostby in Billings, on December 29, 2015 and entering pleas of Not Guilty were:
- DALE VERNAL CAMPBELL, a 42-year-old resident of Lame Deer, appeared on charges of failure to register as a sexual offender. If convicted of the most serious charge contained in the indictment, CAMPBELL faces 10 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the United States Marshals Service. PACER Case Reference. 15-85
Appearing before U.S. Magistrate Ostby in Billings, on December 28, 2015 and entering pleas of Not Guilty were:
- FRANK WAYNE REINKE, a 49-year-old resident of Billings, appeared on charges of felon in possession of a firearm and possession of stolen firearms. If convicted of the most serious charges contained in the indictment, REINKE faces 15 years in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 15-31
Appearing before U.S. Magistrate Lynch in Missoula, on December 28, 2015 and entering pleas of Not Guilty were:
- KATRINA LYNN EVERHART, a 47-year-old resident of Missoula, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, EVERHART faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Montana Regional Violent Crime Task Force. PACER Case Reference. 15-42
- LOGAN RIVERS WENIGER, a 34-year-old resident of Missoula, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, manufacturing methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, possession of a machine gun in furtherance of a drug trafficking crime, and felon in possession of firearms. If convicted of the most serious charge contained in the indictment, WENIGER faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Montana Regional Violent Crime Task Force. PACER Case Reference. 15-42
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Indictment Charges Waterbury Man with Using Internet to Entice Minors, Collect Child PornographyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal grand jury in New Haven returned an indictment yesterday charging JOHN EASTMAN, 48, of Waterbury, with one count of coercion and enticement of minors and one count of possession of child pornography.
The indictment alleges that between June and November 2012, EASTMAN engaged in video chats with minors over the Internet using his computer and online video chatting services such as Skype. During these video chats, EASTMAN enticed the minors to engage in sexually explicit conduct, which EASTMAN recorded and/or photographed and then saved on his computer. In order to deceive and entice the minors, EASTMAN posed as famous singers and musicians that are popular to teenagers.
The indictment further alleges that EASTMAN viewed and downloaded over the Internet other images and videos of child pornography.
EASTMAN has been in state custody since May 2013 when he was arrested on related state charges.
If convicted of coercion and enticement of minors, EASTMAN faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. If convicted of possession of child pornography, he faces a mandatory term of imprisonment of 10 years and a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Homeland Security Investigations and the Waterbury Police Department. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
Honduran National Charged with Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ALEX JAVIER HERNANDEZ-MEJIA, a/k/a “Alex A. Fernandez,” a/k/a “Alex Hernandesmejia,” and a/k/a “Alex Javier Mejia Henandez,” age 21, a citizen of Honduras, was charged today in a one-count Bill of Information with illegal reentry of a removed alien.
According to the Bill of Information, HERNANDEZ-MEJIA reentered the United States on or about November 9, 2015, after having been previously removed therefrom on or about April 22, 2014.
If convicted, HERNANDEZ-MEJIA faces a maximum term of imprisonment of two years, a fine of up to $250,000, one year supervised release after imprisonment, and a $100 special assessment.
U. S. Attorney Polite reiterated that a Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Hannibal, Missouri Man Sentenced on Federal Drug ChargesRead the Press Release
St. Louis, MO – JOSEPH RICHARDSON, of Hannibal, Missouri, was sentenced to a total of 70 months in prison for possession with intent to distribute cocaine and marijuana. Richardson appeared for sentencing today in St. Louis before Judge Rodney W. Sippel.
In October 2015, Richardson pleaded guilty to possession of more than two kilograms of marijuana and 244 grams of cocaine at his residence in Hannibal. Richardson admitted to possessing the drugs with the intent to sell them. In addition to the drugs, the police discovered a scale, bags, capsules and other evidence of his intent to distribute the drugs, as well as cash proceeds of drug distribution at the scene.
Richardson was on federal supervised release at the time of his offense, and his sentence consists of 46 months for the new charge and 24 months on the revocation of his supervision. Judge Sippel ordered the sentences to be served consecutively.
The case was investigated by the Hannibal Police Department and the prosecution was assisted by the Marion County Office of the Prosecuting Attorney. Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney's Office.
Four Miami-Dade Residents Indicted for Participation in Fraud SchemesRead the Press Release
Four Miami-Dade residents have been indicted for their participation in various schemes to defraud the United States government.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Shimon Richmond, Special Agent in Charge, Health and Human Services, Office of Inspector General (HHS-OIG), Pam Bondi, Florida Attorney General, Margaret Moore-Jackson, Special Agent in Charge, Social Security Administration, Office of Inspector General (SSA-OIG), Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Linda M. Swacina, District Director, U.S. Citizenship and Immigration Services (USCIS), made the announcement.
Fernando Mendez Villamil, 48, of South Miami, Maritza Exposito, 57, of Miami, Arnaldo Oscar Jimenez, 57, of Hialeah, and Yomara Vila, 45, of Miami were charged in a twenty-one count indictment for their participation in a scheme to defraud Medicare, Medicaid, the United States Social Security Administration (“SSA”), and the United States Citizenship and Immigration Services (“USCIS”). The defendants are charged with conspiracy to commit health care fraud and wire fraud, substantive counts of health care fraud, conspiracy to defraud the United States and make false statements with respect to immigration matters, conspiracy to defraud the government with respect to claim, theft of government funds, false statements to SSA, and making false statements with respect to immigration matters.
The indictment alleges that the defendants submitted and caused the submission of false and fraudulent claims to Medicare and Medicaid, made false and fraudulent statements and representations to the SSA regarding the medical treatment and condition of SSA disability benefits applicants and recipients, and made false and fraudulent statements and representations to USCIS regarding the status, medical treatment, and medical condition of applicants for immigration benefits.
The indictment alleges multiple types of fraudulent practices occurred at the Miami-Dade medical office of Fernando Mendez Villamil, a State of Florida licensed psychiatrist authorized to provide health care services to Medicare and Medicaid beneficiaries. The defendants, in exchange for money, offered to aid and aided others to fraudulently apply for and receive SSA disability benefits. Defendant Villamil provided individuals false and fraudulent diagnoses of debilitating psychiatric conditions so that the individuals could fraudulently obtain SSA disability benefits, Medicare and Medicaid benefits.
The indictment also alleges that the defendants submitted or caused the submission of false statements with respect to a material fact in applications and documents required by immigration laws and regulations, which contained false statements with respect to a material fact, namely medical certifications for disability exceptions to the English and or civic requirements to the U.S. Naturalization process.
Mr. Ferrer commended the investigative efforts of the Medicare Fraud Strike Force and participating partners, including HHS-OIG, SSA-OIG, the State of Florida’s Medicaid Fraud Control Unit, ICE-HSI, FBI, and USCIS. The case is being prosecuted by Assistant U.S. Attorney Eric E. Morales and Special Assistant United States Attorney Hagerenesh Simmons.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Four Indicted on Drug Trafficking and Weapons ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Harrisburg indicted four South Central PA and Maryland residents on December 16, 2015 on charges of distributing and possessing with the intent to distribute heroin, cocaine, and hydrocodone and for possessing handguns in furtherance of those crimes.
According to United States Attorney Peter Smith, Angel Moorman, 36, Waynesboro, Joseph Tyeryar, 33, Frederick, MD, Chad King, 31, Sharpsburg, MD, and Susan Callahan, 36, Waynesboro, were charged with possessing cocaine and oxycodone with the intent to distribute and conspiracy to do the same in the Waynesboro area. Moorman and Callahan were also charged with possession of heroin with the intent to distribute it. Moorman was charged in a separate count with possessing four handguns in furtherance of his drug trafficking activity. The indictment alleges that this activity occurred from June 2015 up to and including October 14, 2014.
The indictment remained under seal until yesterday to allow investigators to locate and arrest the defendants. Tyeryar, King and Callahan were arrested on January 7, 2016 and Moorman was arrested in October on local charges. The defendants were arraigned by U.S. Magistrate Chief Judge Martin C. Carlson in Harrisburg. Moorman remains in custody at Franklin County Prison. Defendants are currently scheduled for trial on March 9, 2016 before U.S. District Court Judge John E. Jones, III.
The case was investigated by the Franklin County Drug Task Force, the Frederick County MD Narcotics Unit and Homeland Security Investigations. Prosecution of the case has been assigned to Assistant United States Attorney William A. Behe.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 40 years on the drug charges with a mandatory 5 year minimum sentence. Each firearm count is punishable by up to life imprisonment and a mandatory consecutive 5 year term of imprisonment. There is also a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Tyson Employee Sentenced to 28 Months in Federal Prison for Stealing over $550,000 from CompanyRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that Brenda Blair age 48 of Gentry, Arkansas was sentenced to 28 months in federal prison followed by two years of supervised release on one count of Wire Fraud. She was also ordered to pay restitution in the amount of $551,343.52. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to the plea agreement, Blair was an employee of Tyson Inc. in Springdale, Arkansas for over twenty five years. As the Special Benefits Plan Manager, Blair managed contributions into and handled administrative duties related to the Tyson Foods Inc. Pre-65 Retiree Health Insurance Benefit Plan. From June 2005 to September 2014, Blair devised and implemented a scheme to defraud money from Tyson Inc. by generating fraudulent payments in the name of actual participants in the Pre-65 Retiree Health Insurance Benefits Plan and directing these payments to her own bank accounts. The scheme resulted in defrauding Tyson Inc. of over $550,000.00.
This case was investigated by the Federal Bureau of Investigation (FBI), Internal Revenue Service (IRS) - Criminal Investigation Division, and the Department of Labor. Assistant United States Attorney Kimberly N. Davis prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Former State Representative’s Cash Stash GrowsRead the Press Release
BOSTON – The U.S. Attorney’s Office, working with the U.S. Marshals Service and the Internal Revenue Service, have recovered more than an additional $1 million in cash as well as jewelry and luxury watches as a result of seizures yesterday and in late December 2015. In total, more than $2.5 million in concealed cash and other valuables have been recovered from safe deposit boxes controlled by John George, a former Dartmouth Selectman and State Representative. George was convicted and sentenced in 2015 on federal charges related to his embezzlement from a taxpayer-subsidized bus company which he controlled.
Yesterday, special agents with the IRS seized over $800,000 in cash, as well as four Rolex watches and jewelry from three safe deposit boxes controlled by George. In several related seizures in December, U.S. Marshals discovered over $1.6 million in cash.
The money was recovered from seven safe deposit boxes filled with cash tied up in rolls of $100s, $50s, and other denominations. The safe deposit boxes were located at three banks in New Bedford and Fairhaven. Yesterday’s actions followed court authorization to recover the additional funds discovered while executing the original search and seizure warrants in December.
George, 68, was sentenced to 70 months in prison in July 2015 for embezzling hundreds of thousands of dollars from the Southeastern Regional Transit Authority (SRTA).
George owned Union Street Bus Company (USBC), a New Bedford-based company that operated public buses. During the same period, George operated John George Farms (JG Farm), a large produce farm based in Dartmouth. From approximately 1991 to 2011, USBC was awarded the Southeastern Regional Transit Authority (SRTA) contract to operate the SRTA public bus system that served a region that included New Bedford, Fall River, and several other neighboring towns.
While USBC had the SRTA contract, George conspired to have USBC employees work at JG Farm during their assigned USBC work hours. Such farm work included plowing, loading produce, and operating a produce stand at JG Farm, all during USBC business hours. As part of the conspiracy, George deployed USBC workers to JG Farm to repair farm equipment and used USBC equipment and labor to provide personal out-of-state roadside assistance. George also inflated his final yearly salary from $75,000 to $275,000 in an attempt to fraudulently boost his SRTA pension.
From 2007 to 2011, George deposited only $5,000 in cash into his JG Farm business checking account despite the fact that JG Farm was the largest retail produce farm in Southeastern Massachusetts and did most of its business in cash.
Prior to his July 2015 sentencing, George was required to disclose his financial status to the Court. At that time, he stated that his liquid assets only consisted of about $160,000 in bank accounts and approximately $28,000 in cash.
United States Attorney Carmen M. Ortiz, William P. Offord, Special Agent in Charge of the IRS-Criminal Investigation and John Gibbons, U.S. Marshal for the District of Massachusetts, made the announcement today. The criminal forfeiture was handled by Assistant U.S. Attorney Doreen Rachal of Ortiz’s Asset Forfeiture Unit working in conjunction with the U.S. Marshal’s Asset Forfeiture Unit. The criminal case was investigated by the U.S. Department of Transportation, Office of the Inspector General, and was prosecuted by Assistant U.S. Attorneys Dustin Chao and Ryan M. DiSantis of Ortiz’s Public Corruption Unit.
Former St. Louis Cardinals Official Pleads Guilty to Houston Astros Computer IntrusionsRead the Press Release
HOUSTON – The former director of Baseball Development for the St. Louis Cardinals made an initial appearance in Houston federal court today on charges of accessing the Houston Astros’ computers without authorization, announced U.S. Attorney Kenneth Magidson and Special Agent in Charge Perrye K. Turner of the FBI. Later this afternoon, the former Cardinals official then entered a guilty plea to all counts as charged.
Christopher Correa, 35, of St. Louis, was charged in a criminal information with five counts of unauthorized access of a protected computer. No other personnel associated with the Cardinals organization have been charged.
“We have secured an appropriate conviction in this case as a result of a very detailed, thorough and complete investigation,” said Magidson. “Unauthorized computer intrusion is not to be taken lightly. Whether it’s preserving the sanctity of America’s pastime or protecting trade secrets, those that unlawfully gain proprietary information by accessing computers without authorization must be held accountable for their illegal actions.”
From 2009 to July 2015, Correa was employed by the St. Louis Cardinals and became the director of Baseball Development in 2013. In this role, he provided analytical support to all areas of the Cardinals’ baseball operations. Correa is no longer employed by the Cardinals organization.
The Astros and the Cardinals, like many teams, measured and analyzed in-game activities to look for advantages that may not have been apparent to their competitors. To assist their efforts, the Astros operated a private online database called Ground Control to house a wide variety of confidential data, including scouting reports, statistics and contract information. The Astros also provided e-mail accounts to their employees. Ground Control and Astros e‑mails could be accessed online via password-protected accounts.
As part of his plea agreement, Correa admitted that from March 2013 through at least March 2014, he illicitly accessed the Ground Control and/or e-mail accounts of others in order to gain access to Astros proprietary information.
“The theft of intellectual property by computer intrusion is a serious federal crime,” said Turner. “The Houston Cyber Task Force stands ready to identify, pursue and defeat cyber criminals who gain unauthorized access to proprietary data. In each and every case, we will seek to hold those accountable to the fullest extent of the law.”
In one instance, Correa was able to obtain an Astros employee’s password because that employee has previously been employed by the Cardinals. When he left the Cardinals organization, the employee had to turn over his Cardinals-owned laptop to Correa – along with the laptop’s password. Having that information, Correa was able to access the now-Astros employee’s Ground Control and e-mail accounts using a variation of the password he used while with the Cardinals.
The plea agreement details a selection of instances in which Correa unlawfully accessed the Astros’ computers. For example, during 2013, he was able to access scout rankings of every player eligible for the draft. He also viewed, among other things, an Astros weekly digest page which described the performance and injuries of prospects who the Astros were considering, and a regional scout’s estimates of prospects’ peak rise and the bonus he proposed be offered. He also viewed the team’s scouting crosscheck page, which listed prospects seen by higher level scouts. During the June 2013 amateur draft, he intruded into that account again and viewed information on players who had not yet been drafted as well as several players drafted by the Astros and other teams.
Correa later intruded into that account during the July 31, 2013, trade deadline and viewed notes of Astros’ trade discussions with other teams.
Another set of intrusions occurred in March 2014. The Astros reacted by implementing security precautions to include the actual Ground Control website address (URL) and required all users to change their passwords to more complex passwords. The team also reset all Ground Control passwords to a more complex default password and quickly e‑mailed the new default password and the new URL to all Ground Control users.
Shortly thereafter, Correa illegally accessed the aforementioned person’s e‑mail account and found the e‑mails that contained Ground Control’s new URL and the newly-reset password for all users. A few minutes later, Correa used this information to access another person’s Ground Control account without authorization. There, he viewed a total of 118 webpages including lists ranking the players whom Astros scouts desired in the upcoming draft, summaries of scouting evaluations and summaries of college players identified by the Astros’ analytics department as top performers.
On two more occasions, he again illicitly accessed that account and viewed confidential information such as projects the analytics department was researching, notes of Astros’ trade discussions with other Major League Baseball teams and reports of players in the Astros’ system and their development.
The parties agreed that Correa masked his identity, his location and the type of device that he used, and that the total intended loss for all of the intrusions is approximately $1.7 million.
Each conviction of unauthorized access of a protected computer carries a maximum possible sentence of five years in federal prison and a possible $250,000 fine. U.S. District Judge Lynn N. Hughes accepted the plea today and has set sentencing for April 11, 2016. He was permitted to remain on bond pending that hearing.
The charges and conviction are the result of an investigation conducted by the FBI. Assistant U.S. Attorney Michael Chu is prosecuting the case.
Former St. Louis Cardinals Official Pleads Guilty to Houston Astros Computer IntrusionsRead the Press Release
The former director of Baseball Development for the St. Louis Cardinals made an initial appearance in Houston federal court today on charges of accessing the Houston Astros’ computers without authorization, announced U.S. Attorney Kenneth Magidson of the Southern District of Texas and Special Agent in Charge Perrye K. Turner of the FBI Houston Division. Later this afternoon, the former Cardinals official then entered a guilty plea to all counts as charged.
Christopher Correa, 35, of St. Louis, was charged in a criminal information with five counts of unauthorized access of a protected computer. No other personnel associated with the Cardinals organization have been charged.
“We have secured an appropriate conviction in this case as a result of a very detailed, thorough and complete investigation,” said U.S. Attorney Magidson. “Unauthorized computer intrusion is not to be taken lightly. Whether it’s preserving the sanctity of America’s pastime or protecting trade secrets, those that unlawfully gain proprietary information by accessing computers without authorization must be held accountable for their illegal actions.”
From 2009 to July 2015, Correa was employed by the St. Louis Cardinals and became the director of Baseball Development in 2013. In this role, he provided analytical support to all areas of the Cardinals’ baseball operations. Correa is no longer employed by the Cardinals organization.
The Astros and the Cardinals, like many teams, measured and analyzed in-game activities to look for advantages that may not have been apparent to their competitors. To assist their efforts, the Astros operated a private online database called Ground Control to house a wide variety of confidential data, including scouting reports, statistics and contract information. The Astros also provided e-mail accounts to their employees. Ground Control and Astros e‑mails could be accessed online via password-protected accounts.
As part of his plea agreement, Correa admitted that from March 2013 through at least March 2014, he illicitly accessed the Ground Control and/or e-mail accounts of others in order to gain access to Astros proprietary information.
“The theft of intellectual property by computer intrusion is a serious federal crime,” said Special Agent in Charge Turner. “The Houston Cyber Task Force stands ready to identify, pursue and defeat cyber criminals who gain unauthorized access to proprietary data. In each and every case, we will seek to hold those accountable to the fullest extent of the law.”
In one instance, Correa was able to obtain an Astros employee’s password because that employee has previously been employed by the Cardinals. When he left the Cardinals organization, the employee had to turn over his Cardinals-owned laptop to Correa along with the laptop’s password. Having that information, Correa was able to access the now-Astros employee’s Ground Control and e-mail accounts using a variation of the password he used while with the Cardinals.
The plea agreement details a selection of instances in which Correa unlawfully accessed the Astros’ computers. For example, during 2013, he was able to access scout rankings of every player eligible for the draft. He also viewed, among other things, an Astros weekly digest page which described the performance and injuries of prospects who the Astros were considering, and a regional scout’s estimates of prospects’ peak rise and the bonus he proposed be offered. He also viewed the team’s scouting crosscheck page, which listed prospects who were seen by higher level scouts. During the June 2013 amateur draft, Correa intruded into that account again and viewed information on players who had not yet been drafted as well as several players drafted by the Astros and other teams.
Correa later intruded into that account during the July 31, 2013, trade deadline and viewed notes of the Astros’ trade discussions with other teams.
Another set of intrusions occurred in March 2014. The Astros reacted by implementing security precautions to include the actual Ground Control website address (URL) and required all users to change their passwords to more complex passwords. The team also reset all Ground Control passwords to a more complex default password and quickly e‑mailed the new default password and the new URL to all Ground Control users.
Shortly thereafter, Correa illegally accessed the aforementioned person’s e‑mail account and found the e‑mails that contained Ground Control’s new URL and the newly-reset password for all users. A few minutes later, Correa used this information to access another person’s Ground Control account without authorization. There, he viewed a total of 118 webpages including lists ranking the players whom Astros scouts desired in the upcoming draft, summaries of scouting evaluations and summaries of college players identified by the Astros’ analytics department as top performers.
On two more occasions, he again illicitly accessed that account and viewed confidential information, such as projects the analytics department was researching, notes of the Astros’ trade discussions with other Major League Baseball teams and reports of players in the Astros’ system and their development.
The parties agreed that Correa masked his identity, his location and the type of device that he used, and that the total intended loss for all of the intrusions is approximately $1.7 million.
Each conviction of unauthorized access of a protected computer carries a maximum possible sentence of five years in federal prison and a possible $250,000 fine.
The charges and conviction are the result of an investigation conducted by the FBI. Assistant U.S. Attorney Michael Chu of the Southern District of Texas is prosecuting the case.
Former Owner of Bostwick Laboratories Agrees to Pay up to $3.75 Million to Resolve Allegations of Unnecessary Testing and Illegal Remuneration to PhysiciansRead the Press Release
Dr. David G. Bostwick has agreed to pay the United States up to $3.75 million to resolve alleged violations of the False Claims Act for billing Medicare and Medicaid for medically unnecessary cancer detection tests and offering incentives to physicians to obtain Medicare and Medicaid business, the Department of Justice announced today. Dr. Bostwick was the founder, owner and chief executive officer of Bostwick Laboratories Inc. from 1999 to 2011. Bostwick Laboratories is a pathology laboratory headquartered in Glen Allen, Virginia.
“The Department of Justice is committed to ensuring that every laboratory test ordered is based on the medical needs of the patient and not just to increase physician and laboratory profits,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “This case shows that the Department will not hesitate to hold accountable both the companies and the individuals who order or perform excessive, non-patient specific tests and provide inducements to physicians that lead to unnecessary costs being imposed upon our nation’s health care programs.”
The settlement announced today resolves claims that, from 2006 to 2011, Dr. Bostwick allegedly directed Bostwick Laboratories to bill Medicare and Medicaid for expensive cancer detection tests known as Fluorescent In Situ Hybridization (FISH) tests, as well as other tests, that were not medically necessary and were performed without the treating physicians’ consent or order. FISH tests are used to detect bladder cancer. During the time period covered by the settlement, Medicare reimbursement for FISH tests ranged from $456 to $966 per test.
The settlement also resolves allegations that Dr. Bostwick, through Bostwick Laboratories, offered various discounts and billing arrangements to treating physicians to induce physicians to refer business to Bostwick Laboratories in violation of the federal Anti-Kickback Statute. The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federally funded programs. The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.
“We will continue to combat fraud against federal health care programs through actions against health care providers and by seeking accountability from responsible individuals,” said U.S. Attorney Carter M. Stewart for the Southern District of Ohio. “We are dedicated to holding accountable those who manipulate the health care system to collect money to which they are not entitled.”
Under the settlement announced today, Dr. Bostwick has agreed to pay over $2.6 million plus an additional $1.125 million if certain financial contingencies occur within the next five years - for a total potential payment of up to $3.75 million. On Aug. 28, 2014, Bostwick Laboratories previously agreed to pay over $6.5 million to resolve the allegations in this lawsuit.
The allegations resolved by these settlements were originally brought by whistleblower Michael Daugherty, who works in the industry, under the qui tam provisions of the False Claims Act. The act permits private citizens to sue on behalf of the government those who falsely claim federal funds. The act allows the whistleblower to receive a share of any funds recovered through the lawsuit. Daugherty will receive over $2.5 million from the government’s settlements with Dr. Bostwick and Bostwick Laboratories.
The government’s pursuit of the claims resolved by the settlements illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $27.1 billion through False Claims Act cases, with more than $17.1 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlements were the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Southern District of Ohio, and the U.S. Department of Health and Human Services, Office of Inspector General.
The case is captioned, United States ex rel. Daugherty v. Bostwick Laboratories, Inc. and David Bostwick, Civil Action No. 1:08-cv-354 (S.D. Ohio). The claims resolved by the government are allegations only; there has been no determination of liability.
Former Nist Police Officer Sentenced for Attempting to Manufacture Methamphetamine, Causing an ExplosionRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced former National Institute of Standards and Technology (NIST) police officer Christopher Bartley, age 41, of Gaithersburg, Maryland, late yesterday to 41 months in prison followed by two years of supervised release for attempting to manufacture methamphetamine in a laboratory room on the NIST campus which resulted in an explosion.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; and Chief J. Thomas Manger of the Montgomery County Police Department.
"Methamphetamine is unsafe to produce and unsafe to use," said U.S. Attorney Rod J. Rosenstein. "Mr. Bartley damaged government property and jeopardized the health and safety of NIST employees by mixing dangerous chemicals."
According to his plea agreement, on Saturday, July 18, 2015, Bartley reported to work at NIST where he worked as a lieutenant with the NIST police force. That evening, Bartley entered a room inside a NIST building in order to use equipment to manufacture methamphetamine under a chemical fume hood. While attempting to manufacture methamphetamine, Bartley caused an explosion that blew four of the room’s windows out of their frames. The shatterproof windows were found at distances ranging from 22 to 33 feet from the building. Bartley suffered burns on his head and arm.
The explosion caused the temperature in the room to rise to 180 degrees, activating a silent heat alarm. When firefighters entered the building shortly thereafter, they saw Bartley next to the room with a burn on his arm, as well as singed ears and hair. The Court found that Bartley lied to the first responders and to his boss about the cause of the explosion, and thereby put them at risk of harm when they entered the location.
Before leaving the building, Bartley collected remnants of items from the scene of the explosion and later threw the items in a dumpster near the building. He then drove to another NIST building where he discarded additional items in the trash related to his attempt to manufacture methamphetamine.
Law enforcement later searched the trash near those two buildings and seized a coffee grinder with white powder residue, rubber gloves, a funnel, a soda bottle containing white powder with a rubber tube coming out the top, coffee filters, burnt and melted plastic, a bottle of Drano crystals, a gas mask and protective safety glasses.
Law enforcement agents searched Bartley’s vehicle and recovered a book that contained Bartley’s handwritten notes of ingredients and equipment needed to manufacture methamphetamine, including tubing, a funnel, coffee filters, Coleman camp fuel and lye.
At 1:27 a.m. on July 19, 2015, Bartley sent an email to his supervisor titled “tonight’s explosion” in which he admitted he had attempted to manufacture methamphetamine. A few hours later, Bartley also admitted to a law enforcement agent that he had been trying to manufacture methamphetamine at the time the explosion occurred.
The total amount of methamphetamine involved in the offense was less than five grams.
United States Attorney Rod J. Rosenstein commended the FBI, DEA and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein praised the Department of Commerce – Office of Inspector General and NIST for their assistance in the investigation, and thanked Assistant U.S. Attorneys Leah Jo Bressack and Mara Zusman Greenberg, who prosecuted the case.
Former FPC-Greenville Inmate Pleads Guilty to EscapeRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that on January 7, 2016, Shelia B. Hatfield, 52, formerly an inmate at the Federal Prison Camp in Greenville, Illinois (FPC-Greenville), pled guilty to an Indictment charging her with Escape. Hatfield faces a term of imprisonment of not more than five (5) years, a fine up to $250,000, or both, and a term of supervised release of not more than three (3) years. Hatfield’s sentencing is scheduled for May 3, 2016, in Benton, Illinois. She has been detained (held without bond) since her arraignment on the Indictment on May 12, 2015.
The charged offense occurred on March 9, 2015, when Hatfield, who was an inmate at FPC-Greenville at the time, was found at a convenience store outside the prison camp’s grounds in Greenville, Illinois. The investigation determined that Hatfield had not received authorization to leave the grounds of FPC-Greenville.
The case was investigated by the Bureau of Prisons. The case is assigned to Assistant United States Attorney Angela ScottFormer DoD Contracting Official Sentenced to Prison for BriberyRead the Press Release
ALEXANDRIA, Va. – James Edward Addas, 55, of Stafford, was sentenced today to 30 months in prison for his role in a bribery scheme involving U.S. government contracts in Iraq.
Addas pleaded guilty on Feb. 20, 2015. According to court documents, in August 2004, Addas was a contracting official at the Iraq/Afghanistan Joint Contracting Command in the U.S. Embassy in Baghdad when the owner and CEO of a contracting company based in Jordan offered to pay him a total of $1 million in return for assistance in obtaining U.S. government contracts for major electrical construction projects and related services in Iraq. The contractor made an initial cash payment of $50,000 in a paper sack, which was handed to Addas inside the “Green Zone” of the U.S. Embassy compound. With Addas’s assistance, the contractor’s companies subsequently received at least 15 contracts, with a total value of more than $28 million awarded to the companies. In addition to the initial payment, the contractor later sent funds to Addas via wire transfers that totaled more than $455,000 and paid for other items valued at more than $70,000. Addas did not declare any of this income on his filed federal tax returns.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; Frank Robey, Director of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit; Robert E. Craig Jr., Special Agent in Charge of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office; Darrell Gilliard, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Washington D.C. Field Office; and John F. Sopko, Special Inspector General for Afghanistan Reconstruction (SIGAR), made the announcement after sentencing by U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Uzo Asonye and Trial Attorney Wade Weems of the Criminal Division’s Fraud Section prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-33.
Former Contracting Official Sentenced to 30 Months for Bribery in Relation to U.S. Government Contracts in IraqRead the Press Release
A former U.S. Department of Defense contracting official was sentenced today to 30 months in prison for his role in a bribery scheme involving U.S. government contracts in Iraq.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Director Frank Robey of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit, Special Agent in Charge Robert E. Craig Jr. of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office, Special Agent in Charge Darrell Gilliard of the Naval Criminal Investigative Service (NCIS) Washington, D.C., Field Office and the Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko made the announcement.
James Edward Addas, 55, of Stafford, Virginia, previously pleaded guilty to charges of bribery and tax evasion. Senior U.S. District Judge Claude M. Hilton of the Eastern District of Virginia handed down Addas’ sentence today.
According to admissions made in the plea agreement, in August 2004, Addas was a contracting official at the Iraq/Afghanistan Joint Contracting Command in the U.S. Embassy in Baghdad when the owner and CEO of a contracting company based in Jordan offered to pay him a total of $1 million in return for assistance in obtaining U.S. government contracts for major electrical construction projects and related services in Iraq. The contractor made an initial cash payment of $50,000 in a paper sack, which was handed to Addas inside the “Green Zone” of the U.S. Embassy compound. With Addas’ assistance, the contractor’s companies subsequently received at least 15 contracts, with a total value of more than $28 million awarded to the companies. In addition to the initial payment, the contractor later sent funds to Addas via wire transfers that totaled more than $455,000 and paid for other items valued at more than $70,000. Addas did not declare any of this income on his filed federal tax returns.
Special Agents of CID, DCIS, NCIS, SIGAR and the Internal Revenue Service investigated the case. Trial Attorney Wade Weems of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Uzo Asonye of the Eastern District of Virginia prosecuted the case.
Federal Jury Convicts Member of International Child Exploitation ConspiracyRead the Press Release
ALEXANDRIA, Va. – Brian K. Hendrix, 42, of Mt. Juliet, Tennessee, was convicted today by a federal jury on child pornography charges relating to his participation in two websites that were operated for the purpose of coercing and enticing minors, as young as eight years old, to engage in sexually explicit conduct on web camera.
An estimated 1,600 minors were lured to the websites. During the investigation, named Operation Subterfuge, the FBI identified more than 300 minor victims in the United States, and the RCMP National Child Exploitation Coordination Centre identified 43 minor victims in Canada.
Hendrix was charged by superseding indictment on July 23, 2015. Eight co-conspirators were charged in the Eastern District of Virginia, while two other co-conspirators were charged in foreign countries.
According to court records and evidence at trial, co-conspirators created false profiles on social networking sites, such as YouTube, that portrayed them as young teenagers. They used these profiles to lure children to the websites they controlled. Once on the conspirators’ websites, the conspirators played pre-recorded videos of prior minor victims, often engaging in sexually explicit conduct, to make the new victims think that they were chatting with another minor. Using these videos, conspirators coerced and enticed children to engage in sexually explicit activity on their own web cameras which the website automatically recorded. Based on their contribution to the success of website objectives, conspirators earned points, which allowed them access to the sexually exploitative videos of children. Law enforcement agencies have disabled both websites.
In addition to Hendrix, the conspirators have been convicted and sentenced as follows:
Name, Age, Hometown
Status
Anthony Evans, 54, Grahamstown, South Africa
Pleaded guilty in South Africa and was sentenced to 10 years in prison on May 29, 2015. An extradition request remains pending.
William J. Morgan, 36, Essex, New York
Pleaded guilty June 26, 2015. Sentenced to 21 years in prison on Sept. 18, 2015.
Milton Smith, Jr., 34, Lorton, Virginia
Pleaded guilty Aug. 14, 2015. Sentencing scheduled for Jan. 22, 2016.
James E. Hancock, 45, Thomasville, Georgia
Pleaded guilty Dec. 29, 2015. Sentencing scheduled for April 1, 2016.
Christopher McNevin, 37, Carlisle, Ohio
Pleaded guilty Aug. 21, 2015. Sentenced to 19 years in prison on Dec. 4, 2015.
Brian K. Hendrix, 42, Mt. Juliet, Tennessee
Convicted by jury on Jan. 8, 2016. Sentencing scheduled for April 8, 2016.
Carl Zwengel, 51, Princeton, Illinois
Pleaded guilty on July 10, 2015. Sentenced to 18 years in prison on Oct. 2, 2015.
Karlo Hitosis, 32, Bronx, New York
Pleaded guilty on October 30, 2015. Sentencing scheduled for Feb. 5, 2016.
Stephen Funk, 35, Milwaukee, Wisconsin
Pleaded guilty on Dec. 18, 2015. Sentencing scheduled for March 25, 2016.
Hendrix faces a mandatory minimum of 15 years in prison and a maximum penalty of 30 years in prison when sentenced on April 8, 2016. The maximum statutory sentence is prescribed by Congress and is provided for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; and Calvin Shivers, Section Chief, FBI Violent Crimes Against Children Section, made the announcement after the verdict was accepted by U.S. District Judge T.S. Ellis. Assistant U.S. Attorney Tracy Doherty-McCormick and Trial Attorney Lauren Britsch with the Child Exploitation and Obscenity Section of the U.S. Department of Justice prosecuted the case. Trial Attorney Ravi Sinha, with the Child Exploitation and Obscenity Section, assisted with the prosecution. The Criminal Division’s Office of International Affairs also provided assistance.
Violent Crimes Against Children Section special agents led the investigation with the assistance of other VCACS special agents, the FBI’s Operation Rescue Me, the Digital Analysis and Research Center, and the Office of Victim Assistance. The South Africa Police Service, Family Violence, Child Protection, and Sexual Offenses, Gauteng; Royal Canadian Mounted Police, National Child Exploitation Coordination Centre; the Dutch Police Service Agency, KLPD, and the Australian Federal Police, Child Protection Operations, Sydney all worked closely with VCACS and were active partners in Operation Subterfuge, a multinational investigation coordinated by members of the FBI’s Violent Crimes Against Children International Task Force. The Royal Canadian Mounted Police, National Child Exploitation Coordination Centre, identified 43 victims as part of the operation. The U.S. Attorney’s Offices and FBI offices in the Middle District of Georgia, Southern District of New York, Northern District of New York, Eastern District of Wisconsin, Middle District of Tennessee, Central District of Illinois and Southern District of Ohio, and the National Center for Missing and Exploited Children also contributed to the investigation and prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-172; 1:15-cr-42.
Federal Jury Convicts Member of International Child Exploitation ConspiracyRead the Press Release
A Mt. Juliet, Tennessee, man was convicted today by a federal jury on child pornography charges relating to his participation in two websites that were operated for the purpose of coercing and enticing minors to engage in sexually explicit conduct on web camera.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Section Chief Calvin Shivers of the FBI’s Violent Crimes Against Children Section (VCACS) made the announcement.
Brain K. Hendrix, 42, was charged by superseding indictment on July 23, 2015. Eight co-conspirators were charged in the Eastern District of Virginia and two co-conspirators have been charged in foreign countries. The investigation, Operation Subterfuge, identified more than 300 minor victims and an estimated 1,600 minors were lured to the websites. U.S. District Judge T.S. Ellis of the Eastern District of Virginia presided over the trial.
According to court records and evidence at trial, co-conspirators created false profiles on social networking sites, such as YouTube, that portrayed them as young teenagers. They used these profiles to lure children to the websites they controlled. Once on the conspirators’ websites, the conspirators played pre-recorded videos of prior minor victims, often engaging in sexually explicit conduct, to make the new victims think that they were chatting with another minor. Using these videos, conspirators coerced and enticed children to engage in sexually explicit activity on their own web cameras which the website automatically recorded. Based on their contribution to the success of website objectives, conspirators earned points, which allowed them access to the sexually exploitative videos of children. Law enforcement agencies have disabled both websites.
In addition to Hendrix, the conspirators have been convicted and sentenced as follows:
Name, Age, Hometown
Status
Anthony Evans, 54, of Grahamstown, South Africa
Pleaded guilty in South Africa and was sentenced to 10 years in prison on May 29, 2015. An extradition request remains pending.
William J. Morgan, 36, of Essex, New York
Pleaded guilty on June 26, 2015. Sentenced to 21 years in prison on Sept. 18, 2015.
Milton Smith Jr., 34, of Lorton, Virginia
Pleaded guilty on Aug. 14, 2015. Sentencing is scheduled for Jan. 22, 2016.
James E. Hancock, 45, of Thomasville, Georgia
Pleaded guilty on Dec. 29, 2015. Sentencing is scheduled for April 1, 2016.
Christopher McNevin, 37, of Carlisle, Ohio
Pleaded guilty on Aug. 21, 2015. Sentenced to 19 years in prison on Dec. 4, 2015
Carl Zwengel, 51, of Princeton, Illinois
Pleaded guilty on July 10, 2015. Sentenced to 18 years in prison on Oct. 2, 2015.
Karlo Hitosis, 32, of Bronx, New York
Pleaded guilty on Oct. 30, 2015. Sentencing is scheduled for Feb. 5, 2016.
Stephen Funk, 35, Milwaukee
Pleaded guilty on Dec. 18, 2015. Sentencing is scheduled for March 25, 2016.
VCACS special agents led the investigation with the assistance of FBI’s Operation Rescue Me, the FBI’s Digital Analysis and Research Center and the Office of Victim Assistance. The South Africa Police Service, Family Violence, Child Protection, and Sexual Offenses, Gauteng; Royal Canadian Mounted Police, National Child Exploitation Coordination Centre; the Dutch Police Service Agency, KLPD, and the Australian Federal Police, Child Protection Operations, Sydney all worked closely with VCACS and were active partners in Operation Subterfuge, a multinational investigation coordinated by members of the FBI’s Violent Crimes Against Children International Task Force. The Royal Canadian Mounted Police, National Child Exploitation Coordination Centre, identified 43 victims as part of the operation. The U.S. Attorney’s Offices and FBI offices in the Middle District of Georgia, Southern District of New York, Northern District of New York, Eastern District of Wisconsin, Middle District of Tennessee, Central District of Illinois and Southern District of Ohio, and the National Center for Missing and Exploited Children also contributed to the investigation and prosecution. Trial Attorney Lauren Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Tracy Doherty-McCormick prosecuted the case. CEOS Trial Attorney Ravi Sinha assisted with the prosecution. The Criminal Division’s Office of International Affairs also provided assistance.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Ex-UPMC Employee Sentenced to Prison for Health Care FraudRead the Press Release
PITTSBURGH - A resident of Rural Valley, Pennsylvania, has been sentenced in federal court to 21 months’ imprisonment followed by two years of supervised release and ordered to pay $184,835.09 in restitution on her conviction of mail fraud and health care fraud offenses, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Francine Ann Priestas 48.
According to information presented to the court, Priestas was employed as a supervisor in the UPMC Health Plan Claims Department. Priestas generated billing statements which falsely represented that she and others received medical services. She submitted 156 false statements on the UPMC system and received payments totaling $184,835.
Assistant United States Attorney Robert S. Cessar prosecuted this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Priestas.
Elyria man sentenced to more than 10 years in prison for drug and firearms convictionsRead the Press Release
An Elyria man was sentenced to more than a decade in prison for federal narcotics and firearms violations, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Jerry L. Wells, Jr., 34, was sentenced to 125 months in prison after previously being found guilty of distribution of heroin, possession with intent to distribute marijuana and MDMA, and being a felon in possession of a firearm.
Wells distributed heroin on four occasions in February. He also possessed 30 grams of MDMA and 60 marijuana plants on Feb. 21, according to court documents.
On that same date, Wells possessed a Taurus 9 mm pistol despite several previous convictions in Lorain County Common Pleas Court, including heroin trafficking, cocaine trafficking and burglary, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Robert F. Corts following an investigation by the Elyria Police Department, the Federal Bureau of Investigation and Bureau of Alcohol, Tobacco, Firearms and Explosives.
District Man Sentenced to 40 Years in Prison for Two Home Invasions in Northeast WashingtonRead the Press Release
WASHINGTON – Tavon Barber, 20, of Washington, D.C., was sentenced today to 40 years in prison on charges stemming from a pair of home invasions he committed within a roughly 20-hour period in Northeast Washington, including one in which he sexually assaulted a woman, U.S. Attorney Channing D. Phillips announced.
Barber was found guilty in November 2014, following a trial in the Superior Court of the District of Columbia, of 21 counts, including first-degree burglary, first-degree burglary while armed, assault with intent to commit first-degree sexual abuse while armed, three counts of third-degree sexual abuse while armed, three counts of assault with a dangerous weapon, and related offenses. He was sentenced by the Honorable Russell F. Canan. Upon completion of his prison term, Barber will be placed on five years of supervised release. He also will be required to register as a sex offender for the rest of his life once he is released from prison.
According to the government’s evidence at trial, on June 4, 2013, between 9:30 a.m. and 11:30 a.m., Barber broke into a home in the 1100 block of 6th Street NE through an unlocked kitchen window. At the time, two people were inside the house asleep. Once inside, Barber stole two laptops, a book bag full of various items and car keys. He then used the car keys to steal the car, which belonged to one of the residents.
Approximately 20 hours later, at approximately 4:30 a.m., Barber and an accomplice broke into a home in the 2400 block of Second Street NE, armed with a loaded .40-caliber, semi-automatic pistol. Wearing something to conceal their faces, they went upstairs to the bedroom where the owners of the home, a husband and wife, were sleeping.
Barber turned on the lights and woke the homeowners from sleep. He demanded money, and told them to put their heads under their pillows. Barber then sexually assaulted the wife, while holding the husband hostage at gunpoint. As Barber sexually assaulted the wife, the husband lunged at him, enabling his wife to escape. Barber and the husband struggled from the second floor, down the stairs, and to the back of the house. Once there, Barber fired a shot at the husband’s head. The bullet missed the husband and entered the wall above his head.
Barber then fled, with his accomplice, out the back of the house. The intruders left with two iPhones, a MacBook, a laptop and the husband’s wallet.
Barber was arrested on June 29, 2013 and has been in custody ever since. The second man earlier pled guilty to charges in the case.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also expressed appreciation for the work of those who handled the case for the U.S. Attorney’s Office, including Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Paralegal Specialists Jason Manuel and Benjamin Kagan-Guthrie; Victim/Witness Advocate Veronica Vaughan; Victim/Witness Security Specialists Katina Adams-Washington, David Foster, and Wanda Queen, and Litigation Technology Specialist Thomas R. Royal. Finally, he commended the work of Assistant U.S. Attorneys Sharon Donovan and Lindsay Suttenberg, who investigated and prosecuted the case.
Countering Violent Extremism Task Force Fact SheetRead the Press Release
Since the White House Summit on Countering Violent Extremism (CVE) last February, the U.S. government has focused on strengthening our effort to prevent extremists from radicalizing and mobilizing recruits, especially here at home. Advancing this effort means working as effectively as possible across the U.S. government, which is why we are forming the CVE Task Force.
“The federal government’s top priority is protecting the American people from all forms of violent extremism,” said Attorney General Loretta E. Lynch. “By bringing together agencies from across the Executive Branch, this innovative task force will allow us to more efficiently and effectively support local efforts to counter violent extremism. The Department of Justice looks forward to joining the Department of Homeland Security in leading this new initiative, which represents an important step in our ongoing work to keep our communities safe and our country strong.”
“Countering violent extremism has become a homeland security imperative, and it is a mission to which I am personally committed,” said Secretary of Homeland Security Jeh Johnson. “At the Department of Homeland Security, our Office of Community Partnerships – which I established last year to take the Department’s CVE efforts to the next level – has been working to build relationships and promote trust with communities across the country, and to find innovative ways to support those who seek to discourage violent extremism and undercut terrorist narratives. The interagency CVE Task Force that we are announcing today, and which will be hosted by the Department of Homeland Security, will bring together the best resources and personnel from across the executive branch to ensure that we face the challenge of violent extremism in a unified and coordinated way.”
Since the Strategy to Empower Local Partners to Prevent Violent Extremism in the United States was issued in 2011, many federal, state, local and tribal governments have contributed meaningfully to the CVE effort. However, the efforts of ISIL and other groups to radicalize American citizens has required the U.S. government to update the efforts that began five years ago. Beginning in the summer of 2015, representatives from 11 departments and agencies reviewed our current structure, strategy and programs and made concrete recommendations for improvement. The review validated the objectives of the 2011 strategy but identified gaps in its implementation. The new task force will coordinate government efforts and partnerships to prevent violent extremism in the United States.
The review team identified four key needs:
- An infrastructure to coordinate and prioritize CVE activities;
- Clear responsibility, accountability and communication across government and with the public;
- Participation of relevant departments and agencies outside of national security lanes; and
- A process to assess, prioritize and allocate resources to maximize impact.
The CVE Task Force will be a permanent interagency task force hosted by the Department of Homeland Security (DHS) with overall leadership provided by DHS and the Department of Justice, with additional staffing provided by representatives from the FBI, National Counterterrorism Center and other supporting departments and agencies. The task force will be administratively housed at DHS. The CVE Task Force will address the gaps identified in the review by (1) synchronizing and integrating whole-of-government CVE programs and activities; (2) leveraging new CVE efforts, for example those of the DHS Office for Community Partnerships; (3) conducting ongoing strategic planning; and (4) assessing and evaluating CVE programs and activities.
The CVE Task Force will organize federal efforts into several areas, including:
- Research and Analysis. The Task Force will coordinate federal support for ongoing and future CVE research and establish feedback mechanisms for CVE findings, thus cultivating CVE programming that incorporates sound results.
- Engagements and Technical Assistance. The Task Force will synchronize Federal Government outreach to and engagement with CVE stakeholders and will coordinate technical assistance to CVE practitioners.
- Communications. The Task Force will manage CVE communications, including media inquiries, and leverage digital technologies to engage, empower and connect CVE stakeholders.
- Interventions. The Task Force will work with CVE stakeholders to develop multidisciplinary intervention programs.
Convicted Sex Offender from Albuquerque Pleads Guilty to Possession of Child PornographyRead the Press Release
ALBUQUERQUE – Michael Lippke, 71, a previously convicted sex offender from Albuquerque, N.M., pleaded guilty today in federal court to possessing child pornography. Under the terms of his plea agreement, Lippke will be sentenced to ten years in federal prison followed by five years of supervised release. He will be required to register as a sex offender following his term of incarceration.
Lippke was arrested on July 16, 2015, on an indictment charging him with two counts of distribution of visual depictions of minors engaged in sexually explicit conduct and seven counts of possession of visual depictions of minors engaged in sexually explicit conduct. The indictment alleged that Lippke distributed child pornography on July 20, 2014 and July 22, 2014. It also alleged that Lippke possessed child pornography between Aug. 21, 2010 and Dec. 10, 2014, on several computers and computer-related media. According to the indictment, the nine offenses were committed in Bernalillo County, N.M.
During today’s change of plea hearing, Lippke pled guilty to the seven possession of child pornography charges, and admitted that he possessed child pornography from Aug. 21, 2010 through Dec. 10, 2014. Lippke remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the Homeland Security Investigations and the Office of the New Mexico Attorney General, with assistance from the 2nd Judicial District Attorney’s Office. All are members of the New Mexico Internet Crimes Against Children (ICAC) Task Force.
The case is being prosecuted by Assistant U.S. Attorney Sarah Mease as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 82 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the Office of the New Mexico Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement. This case was investigated by the ATF office in Albuquerque and APD.
The case also is brought 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.
Centralia Woman Sentenced for Meth ConspiracyRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that Rachel L. Reeve, 24, of Centralia, Illinois, was sentenced today to 46 months in federal prison, 5 years’ supervised release to follow imprisonment, a $400 fine and a $200 special assessment. There is no parole in the federal system. Sentencing followed Reeve’s September 18, 2015, guilty plea to Conspiracy to Manufacture and Distribute Methamphetamine, and Possession of Pseudoephedrine Knowing It Would Be Used to Manufacture Methamphetamine.
According to court documents, from approximately December 2012, to February 21, 2014, in Marion, Clinton and Jefferson Counties, Reeve agreed to, and did, provide pills containing pseudoephedrine to others in exchange for cash, knowing they would be used to manufacture methamphetamine. Reeve wanted the cash to support her own drug habit.
Information leading to the conviction of Reeve was obtained in an investigation conducted by the FBI, the Marion County Sheriff’s Office, and the Clinton County Sheriff’s Department, assisted by the Illinois State Police Methamphetamine Response Team, and the Centralia Police Department. The case is being handled by Assistant United States Attorney Kit Morrissey.Berlin Man Pleads Guilty to Armed Bank Robbery and to Brandishing a FirearmRead the Press Release
Baltimore, Maryland – Jeff V. Hare, age 53, of Berlin, Maryland, pleaded guilty today to armed bank robbery and brandishing a firearm during a crime of violence.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Worcester County Sheriff Reggie T. Mason, Sr.; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Worcester County State’s Attorney Beau Oglesby.
According his plea agreement, on March 13, 2015, Hare entered the BB&T branch located at 11000 block of Racetrack Road in Berlin, wearing a ski mask and brandishing a handgun.
Hare told the bank tellers present in the bank’s lobby that he had a gun and he was robbing the bank, demanding that the tellers give him only fifty and one hundred dollar bills, and that they not give him any dye packs. Hare moved through the lobby from employee to employee pointing the handgun at each employee and demanding money. Hare also demanded each teller give him their car keys and purse, but the tellers told Hare they did not have them available. Hare stole approximately $2,850 in cash from the bank.
Hare admitted that after robbing the tellers in the lobby, Hare found a bank employee who had locked herself in a back room of the bank. Hare forced open the locked door and demanded her car keys and her purse. The employee gave Hare her purse, which contained cash and personal effects, and the keys to her car, a 2007 Kia Spectra, which was parked in the bank’s parking lot. Hare exited the bank and fled in the stolen 2007 Kia Spectra, which he abandoned at a nearby business.
Hare was arrested later that evening at a residence in Ocean Pines, Maryland. At the time of his arrest, Hare was still in possession of the money stolen from the bank
Hare has been detained since his arrest. During that time, Hare attempted to impede the investigation of the armed bank robbery and carjacking by seeking to arrange for the disposal of evidence of the crimes. On May 1, 2015, an associate of Hare visited him at the Worcester County Detention Center in Snow Hill, Maryland. During that visit, Hare told his associate that he was being framed and that unidentified persons had a box of garbage that would incriminate him. Hare asked the person to retrieve the box from an address in Ocean Pines, which was Hare’s former residence. On May 6, 2015, Hare called his associate and asked him, “By going to that address, did you get rid of the trash,” referring to the box Hare had asked the associate to retrieve. The box contained the ski mask Hare wore during the robbery and carjacking, a .38 caliber revolver believed to have been used during the robbery, and the purse Hare stole from the bank employee, including her driver’s license.
Hare faces a maximum sentence of 25 years in prison for armed bank robbery; and a mandatory minimum of seven years and up to life in prison for brandishing a firearm during a crime of violence. U.S. District Judge James K. Bredar has scheduled sentencing for April 12, 2016, at 9:30 a.m.
United States Attorney Rod J. Rosenstein praised the FBI, Worcester County Sheriff’s Office, Maryland State Police and the Worcester County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Zachary A. Myers and Matthew J. Maddox, who are prosecuting the case.