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24 February 2016
Porter Man Sentenced to 15 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that BRANDON JAMES DEAN, age 33, of Porter, Oklahoma, was sentenced to 15 months imprisonment, followed by 36 months of supervised release for FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Section 922(g)(1) & 924(a)(2).
The charges arose from an investigation by Wagoner County Sheriff’s Office and the Federal Bureau of Investigation – Violent Crimes Task Force.
The Indictment alleged that on or about May 24, 2015, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm which had been shipped and transported in interstate commerce.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Rob Wallace represented the United States.
North Texas Men Indicted for Running Health Care Fraud Scheme That Caused TRICARE to Suffer More Than $65 Million LossRead the Press Release
DALLAS — Two north Texas men, Richard Robert Cesario of Plano, Texas, and John Paul Cooper, of Southlake, Texas, have been indicted on felony offenses stemming from a health care fraud conspiracy they ran that caused TRICARE, the U.S. Department of Defense (DOD) Military Health System that provides coverage for DOD beneficiaries, to suffer more than $65 million in losses, announced U.S. Attorney John Parker of the Northern District of Texas.
Both Cesario, 44, and Cooper, 47, were arrested yesterday morning by special agents with the Federal Bureau of Investigation. Both made their initial appearances in federal court and were detained, pending detention hearings set for Tuesday, March 1, 2016, at 2:00 p.m., before U.S. Magistrate Judge David L. Horan.
TRICARE provides health coverage for DOD beneficiaries world-wide, including active duty service members, National Guard and Reserve members, retirees, their families and survivors. Among other things, TRICARE provides coverage for certain prescription drugs, including certain compounded drugs that were medically necessary and prescribed by a licensed physician.
According to the indictment that was just unsealed, Cesario founded, and both Cesario and Cooper co-owned and co-operated, CMG RX LLC. (CMGRX), a Dallas company that primarily marketed compounded pain and scar creams to current and former U.S. military members and their families on behalf of various compounding pharmacies. Cesario served as its CEO and Treasurer and Cooper served as its President and Secretary. Neither defendant had any medical, nursing or pharmaceutical licensing or education. Formed in 2014, CMGRX ceased operations in mid-2015, shortly after TRICARE announced changes to its coverage of compounded drugs.
The indictment alleges that from approximately July 2014 to mid-February 2016, Cesario, Cooper and others conspired to run a scheme to defraud TRICARE in connection with the delivery of, and payment for, health care benefits, items and services, causing TRICARE to suffer an actual loss of more than $65 million.
As part of the scheme, according to the indictment, Cesario and Cooper paid TRICARE beneficiaries $250 per month for each prescription they obtained and filled for compounded drugs, principally compounded pain creams, scar creams, migraine creams and vitamins, through one of their partner pharmacies. They disguised these payments to TRICARE beneficiaries as “grants” for participating in a medical study they referred to as a TRICARE-approved “Patient Safety Initiative” or “PSI Study” to evaluate the safety and efficacy of compounded drugs. In reality, the PSI Study was not approved by TRICARE, was not overseen by a qualified physician or medical professional, and was not designed to gather any useful scientific data relating to the safety and efficacy of any drug. Its true purposed was to compile a list of TRICARE beneficiaries who had filled prescriptions so that Cesario, Cooper and their coconspirators could calculate how much to pay the beneficiaries. Using this information, the defendants and their coconspirators compiled monthly payout lists of individuals, addresses and payment amounts.
To disguise the source of those kickbacks to TRICARE beneficiaries, according to the indictment, Cesario and Cooper created the “Freedom From Pain Foundation” and registered it as a tax-exempt charitable foundation. The foundation, however, was funded entirely by payments from Cesario and Cooper, or CMGRX accounts they controlled, and from November 2014 to June 2015, they paid $2,425,725.00 into the foundation. The defendants instructed the Freedom From Pain Foundation to write checks to the TRICARE beneficiaries in amounts indicated on the payout lists. Cesario and Cooper shared these expenses equally; each wrote checks to the Freedom From Pain Foundation for half of the total from each payout list, indicating in the checks’ memo section that it was a charitable donation.
As a further part of their scheme, the indictment alleges the defendants paid physicians $60 for each compounded pain or scar cream prescription they wrote and $30 for each compounded vitamin prescription they wrote. Typically, the prescribing physician had no prior physician/patient relationship with the TRICARE beneficiaries for whom they wrote prescriptions. In an effort to disguise these physician kickbacks, the defendants funneled them though the Freedom From Pain Foundation, under the false premise that the physicians were participating in the PSI Study.
The indictment alleges that Cesario and Cooper caused CMGRX to enter into marketing service agreements with various compounding pharmacies, with the compounding pharmacy agreeing to pay a percentage of their gross revenue received for CMGRX-generated claims. In an attempt to disguise the nature of these kickbacks, Cesario and Cooper had the pharmacies make these payments as “employee wages,” even though neither Cesario nor Cooper was a bona fide employee of any compounding pharmacy.
Cesario and Cooper are each charged with one count of conspiracy to commit health care fraud, four counts of receipt of illegal remuneration and six counts of payment of illegal remuneration. The maximum statutory penalty, upon conviction, for the conspiracy count is 10 years in federal prison and a $250,000 fine. Each of the illegal remuneration offenses carries, upon conviction, a maximum statutory penalty of five years in federal prison and a $250,000 fine. Restitution may also be ordered.
The indictment also includes a forfeiture allegation that would require the defendants, upon conviction, to forfeit to the U.S. any property traceable to the offense, including four homes in Plano, Frisco and Southlake, Texas; one home in Jacksonville, Florida; the funds in 18 bank accounts; 21 cars and trucks, including a Jaguar, a Maserati, a Ferrari, a Porsche, an Aston Martin and three Mercedes-Benz; two motor coaches; and one boat.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty.
The Federal Bureau of Investigation and Defense Criminal Investigative Service are investigating. Assistant U.S. Attorney Douglas Brasher is in charge of the prosecution.
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North Charleston Man Indicted for Possessing FirearmRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Charleston, South Carolina ---- United States Attorney Bill Nettles stated today that William L. Dodson, of North Charleston, South Carolina was charged in a 1-count indictment. William L. Dodson was charged with possession of a firearm by a convicted felon, a violation of Title 18, U. S. C. §922(g). The maximum penalty Dodson could receive is 10 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives and North Charleston Police Department and is assigned to Assistant United States Attorney Nick Bianchi of the Charleston office for prosecution.
Mr. Nettles stated that the charges in this Indictment are merely accusations and that the defendants are presumed innocent until and unless proven guilty.#####
New York Man Sentenced to 14 Years in Federal Prison for Week-Long Armed Robbery SpreeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that FRANCIS MANIGAULT, 42, of New York, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 168 months of imprisonment, followed by five years of supervised release, for committing five armed robberies during one week last summer.
According to court documents and statements made in court, MANIGAULT, armed with and brandishing a firearm, robbed George’s Market at 175 Pequonnock Street in Bridgeport on June 27, 2015; B & M Grocery and Deli at 942 East Main Street in Bridgeport on June 28; Rodriguez Market at 384 Brooks Street in Bridgeport on June 29; a Subway restaurant at 1552 Wood Avenue in Bridgeport on June 29, and West Main Street Grocery at 495 West Main Street in Stamford on July 1.
After the July 1 robbery, Stamford Police, responding to 911 calls, encountered MANIGAULT on Virgil Street and observed him throwing a handgun to the ground. He was apprehended shortly thereafter and placed under arrest. Officers then recovered a loaded 40mm handgun that MANIGAULT had discarded. The firearm was previously reported stolen in North Carolina.
MANIGAULT has been detained since his arrest. On October 19, 2015, he pleaded guilty to two counts of interference with commerce by robbery and one count of brandishing a firearm during and in relation to a crime of violence.
This investigation was conducted by the Federal Bureau of Investigation, the Stamford Police Department and the Bridgeport Police Department. The case was prosecuted by Assistant U.S. Attorney Amy C. Brown.
New York Man Sentenced to Life Plus 20 Years for 2012 White Jewelers RobberyRead the Press Release
HARRISBURG-The United States Attorney's Office for the Middle District of Pennsylvania announced that Jesse Brewer, 41, of Jamaica, New York was sentenced today to life imprisonment plus 20 years by the Honorable William W. Caldwell for Brewer’s convictions of robbery and firearms offenses following a September 2015 jury trial.
According to United States Attorney Peter Smith, the jury convicted Brewer of robbing White Jewelers in York, PA with a firearm on July 12, 2012. Brewer, along with Jamell Smallwood and Timothy Forbes, robbed the store of more than fifty Rolex watches valued at over $500,000. In the course of the robbery, Brewer shot the owner of the store, permanently disabling him. Co-defendant Jamell Smallwood of Allentown, Pennsylvania pleaded guilty previously and was sentenced to 17 years for his role in this robbery. Timothy Forbes of Allentown, Pennsylvania pleaded guilty and is awaiting sentencing.
This case was investigated by the Federal Bureau of Investigation and the York Area Regional Police Department, with assistance from the Allentown Police Department and the New York City Police Department. This case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
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Nassau Man Pleads Guilty to Unlawfully Possessing FirearmsRead the Press Release
ALBANY, NEW YORK – Cory M. Saddlemire, age 35, of Nassau, New York, pled guilty today to being a felon in possession of firearms, and to possessing firearms while subject to a protective order.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge Delano Reid of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
Saddlemire was charged by indictment on November 5, 2015 with having unlawfully possessed, in his home, a Rossi shotgun, model S201220, and a .22 caliber Marlin rifle.
Saddlemire faces a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years when he is sentenced on June 22, 2016 by U.S. District Judge Mae A. D’Agostino. A defendant’s sentence is imposed by a judge based on a combination of factors including the U.S. Sentencing Guidelines and relevant statutes.
This case was investigated by the ATF and the Nassau Village Police Department, and is being prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.
Mexican National Pleads Guilty to Money Laundering and Drug Trafficking ChargesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Edgar Yanez-Gutierrez (31, Nayarit, Mexico) today pleaded guilty to conspiring to commit money laundering offenses and conspiring to distribute cocaine, methamphetamine, and marijuana. Yanez-Gutierrez faces a maximum term of 20 years’ imprisonment on the money laundering conspiracy charge, and a mandatory minimum term of 10 years’ imprisonment, up to life, on the drug trafficking conspiracy charge. A sentencing date has not yet been set.
According to the court documents, Yanez-Gutierrez’s plea is the latest in an investigation that has netted 28 convictions in the Middle District of Florida, for drug trafficking, money laundering, and firearms offenses, with sentences ranging from 4, up to 35 years’, imprisonment. The defendants were part of a large-scale drug trafficking organization that shipped cocaine, methamphetamine, and marijuana from California to drug distribution and money laundering cells throughout the United States, including Florida, Ohio, North Carolina, Nevada, New Jersey, New York, Alabama, and Arkansas. Yanez-Gutierrez fled from California to Mexico in 2011, but was later arrested and extradited to the United States in December 2015.
The case is being prosecuted by Assistant United States Attorney Christopher F. Murray. It was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with assistance from other federal, state, and local agencies as part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations, and those primarily responsible for the nation’s drug supply The Office of International Affairs, Department of Justice, assisted with Yanez-Gutierrez’s extradition to the United States.
Member of the Jenifer Drug Trafficking Organization Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Michael Williams, age 41, of Baltimore, Maryland, today to 10 years in prison followed by five years of supervised release for conspiring to distribute cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Commissioner Kevin Davis of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement and court documents, from September 2012 until his arrest in October 2014, Kedrick Jenifer was the head of a drug organization (Jenifer DTO) that transported cocaine and cash between Baltimore and Houston, Texas. Jenifer supplied kilograms of cocaine to Michael Williams and others for distribution in and around the Baltimore-Washington area. The Jenifer DTO obtained its cocaine from sources of supply in and around Houston. The Jenifer DTO would hide money in secret compartments in “courier vehicles” that were transported from Baltimore to Houston. The cocaine was then transported from Houston to Baltimore hidden in the courier vehicles.
In September 2012, Texas State Police stopped a courier vehicle in Chambers County, Texas. Law enforcement officers discovered approximately 30 kilograms of cocaine hidden in secret compartments within the vehicle. Between August 2013 and October 2014, approximately 30 shipments of cocaine concealed in secret compartments in the courier vehicles were made to the Jenifer DTO. During this time, Williams was frequently seen meeting with Jenifer and providing Jenifer with money in exchange for cocaine. In addition, during a separate joint FBI and Baltimore City Police Department investigation in 2014, law enforcement learned that Williams was supplying street level drug shops in Baltimore City with cocaine.
Williams admitted that during his participation in the conspiracy, the Jenifer DTO was responsible for the distribution of at least 750 kilograms of cocaine between August 2013 and October 2014.
Kedrick Arnold Jenifer, a/k/a “Ricky Jenifer,” “James Howard Collier, Jr.” and “Rick,” age 44, of Bowie, Maryland, pleaded guilty to conspiring to distribute cocaine and is scheduled to be sentenced on March 4, 2016. Eight other co-conspirators have pleaded guilty. Andre Brewer, age 36, of Jessup, Maryland; Brooke Renee Lunn, a/k/a “Brooke Thomas” and “Brooke Renee,” age 49; William Hegie, age 55; Kermit Clark, age 45; and Elroy Johnson, age 49, all of Baltimore; and Tyrone Allen, age 44, of Bowie, Maryland, and Thomas Simmons, age 38, of Hampton, Virginia, were sentenced to between 10 and 16 years in prison.
United States Attorney Rod J. Rosenstein praised the DEA, IRS Criminal Investigation, Baltimore City and County Police Departments, and the FBI for their work in the investigation, and expressed his appreciation to the United States Attorney’s Offices for the Southern District of Texas and the Southern District of New York for their assistance. Mr. Rosenstein thanked Assistant United States Attorney John W. Sippel, Jr., who is prosecuting this Organized Crime Drug Enforcement Task Force case.
Media Advisory - Law Enforcement Officials to Announce Multiple Arrests of Members of Central Florida Drug Trafficking OrganizationRead the Press Release
WHO: A. Lee Bentley, III, United States Attorney for the Middle District of Florida
Jeffrey T. Walsh, Assistant Special Agent in Charge, Drug Enforcement Administration, Orlando District Office, Central Region of Florida
Sheriff Jerry L. Demings, Orange County Sheriff's Office
WHAT: Press Conference
Federal, state, and local law enforcement agencies to announce charges involving several individuals in a multi-state drug trafficking conspiracy.
WHEN: THURSDAY, FEBRUARY 25, 2016, at 1:00 P.M. EST
WHERE: United States Attorney’s Office
400 W. Washington Street, Suite 3100
Orlando, FL 32801
OPEN PRESS
NOTE: All media must present government-issued photo I.D. (such as a driver’s license). Media may begin arriving at 12:30 P.M. EST.
Marana Man Sentenced for Saguaro Damage at Ironwood Forest National MonumentRead the Press Release
TUCSON, Ariz. – Last week, John Samuel Rahe, 50, of Marana, Ariz., was sentenced by U.S. Magistrate Judge Leslie A. Bowman to one year of probation and ordered to pay $10,000 to the Bureau of Land Management for damaging vegetation and soil at Ironwood Forest National Monument. Rahe previously pleaded guilty to resource damage and littering.
In March 2015, Rahe drove his utility vehicle illegally off road within National Monument boundaries, running over and destroying two small Saguaros, a Palo Verde tree, and over thirty more cactuses and shrubs. When his vehicle became stuck, he attempted to free it by attaching its winch to an eight-foot Saguaro, resulting in the toppling of that cactus.
The investigation was conducted by the Bureau of Land Management. The prosecution was handled by Brian R. Decker and Sarah B. Houston, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-15-961-TUC-LAB
RELEASE NUMBER: 2016-017_ Rahe
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Leader of Conspiracy to Rob an Owings Mills Jewelry Store also Admits to a Kidnapping, a Home Invasion Robbery and Brandishing a GunRead the Press Release
Baltimore, Maryland – Stanislav “Steven” Yelizarov, age 26, of Pikesville, Maryland, pleaded guilty today to a robbery conspiracy, kidnapping, and brandishing a firearm in relation to a crime of violence, in connection with the robbery of a jewelry store, including a carjacking and kidnapping.
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; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, Yelizarov was the leader of a conspiracy to rob an Owings Mills jewelry store, and was also the leader of an armed home invasion robbery designed to obtain firearms, which were subsequently used in the robbery of the jewelry store.
Specifically, on July 22, 2012, Yelizarov, his brother MaratYelizarov, Aleksy Sosonko, and Grigory Zilberman robbed a home in Reisterstown, Maryland. Zilberman was familiar with the layout of the home, having been there as a guest on a number of occasions. Zilberman knew that the residents of the home owned firearms and he had handled and fired some of the weapons. After conducting surveillance of the home for several days prior to the robbery, at 2:30 a.m. on July 22, 2012, S. Yelizarov, Sosonko, M. Yelizarov, and Zilberman traveled to the home in Reisterstown. Dressed all in black and wearing ski masks and latex gloves, the co-conspirators entered the home through the unlocked garage door. S. Yelizarov was armed with a handgun when they entered the residence. Sosonko, M. Yelizarov, and Zilberman grabbed long guns from the residence and carried them throughout the home. A resident of the home was asleep when the four robbers entered his bedroom and woke him up, pointing guns at him and shining flashlights in his eyes. S. Yelizarov beat the resident when he tried to resist while M. Yelizarov tied up the resident with a belt and a cord. For approximately one hour the robbers ransacked the home looking for firearms and other valuables. After the robbers left, the resident was able to free himself and call police. The resident was taken to the hospital for treatment of his injuries. Among the items stolen from the house were 10 long guns (rifles and shotguns), a crossbow, a laptop computer, and jewelry. Numerous electronic devices including computers and televisions were destroyed during the robbery. The value of the items stolen was approximately $10,000.
In the fall of 2012, Yelizarov devised a plan to commit an armed robbery of a jewelry store, known to be owned and operated by members of the Russian community of Northwest Baltimore. Yelizarov was the leader of the conspiracy and had final decision making authority over the execution of the scheme. Yelizarov recruited Zilberman, Sosonko, Igor Yasinov, Peter Magnis, M. Yelizarov, Sorhib Omonov, and others to participate in the robbery. In preparation for the robbery, on December 25, 2012, S. Yelizarov, Yasinov, and others committed a burglary of a residence in Baltimore, during which they stole a shotgun and semiautomatic handgun. The handgun was used in the robbery of the jewelry store on January 16, 2013. Prior to the robbery, the conspirators gathered intelligence, including conducting surveillance. S. Yelizarov purchased and attached a GPS device to the car of an employee of the jewelry store in order to learn the employee’s travel routine and habits. Zilberman also exploited his friendship with the employee to obtain information about the operation of the jewelry store and the habits of the employee. According to S. Yelizarov’s plea agreement, on January 15, 2013, Zilberman enticed the employee to visit his home, in order to alert the other co-conspirators of the employee’s whereabouts. While the employee was at Zilberman’s home, the conspirators met at Yelizarov’s residence to prepare for the kidnapping and robbery, including preparing the firearms and donning masks and gloves. Early in the morning on January 16, 2013, M. Yelizarov and Omonov followed the employee from Zilberman’s home and notified the other conspirators of the employee’s location so they could follow the employee. S. Yelizarov, Sosonko, Yasinov, and Magnis driving in a rental car obtained by Yasinov, used a law enforcement-type light bar and a loudspeaker to impersonate a police officer and pull over the employee. Brandishing firearms which were supplied by S. Yelizarov, the conspirators removed the employee from his car, bound and blindfolded the employee, put him into the trunk of his own car, and drove him to a predetermined location.
According to the plea agreement, once at the location, S. Yelizarov and the co-conspirators continued to brandish firearms and threatened to kill the employee’s family if he did not comply with their demands or if he reported the incident to police. The employee complied and at approximately 3:52 a.m., S. Yelizarov and Sosonko drove the employee’s vehicle from the remote location to the jewelry store, while Yasinov and Magnis stayed with the employee, holding him bound and blindfolded at gunpoint. M. Yelizarov and Omonov were stationed near the jewelry store to act as “look-outs.” S. Yelizarov and Sosonko entered the store and stole jewelry, stones, and watches, valued at about $500,000, then drove back to the remote location. The employee was placed back into the trunk of his car and driven to another location, where he was left. The employee was able to kick his way out of the trunk through the back seat of his car.
On January 18, 2013, S. Yelizarov sold a portion of the stolen jewelry for approximately $29,000 to an FBI informant. On January 19, 2013, S. Yelizarov traveled to Brooklyn, New York to sell some of the jewelry and stones taken during the robbery, receiving over $100,000. On January 21, 2013, he returned to Maryland and divided the cash proceeds among the members of the conspiracy and others. S. Yelizarov determined how much each participant received based on his perception of the risk and the conduct of each participant.
On January 25, 2013, S. Yelizarov was arrested in Buffalo, New York, on federal misuse of passport charges. From January 25 through February 2, 2013, S. Yelizarov placed calls directing his brother, M. Yelizarov, and others, to remove from his residence and dispose of evidence related to the jewelry store robbery, including cash from the sale of the jewelry, firearms used during the conspiracy, the law enforcement light bar, the GPS device, a laptop computer, and other evidence of the crimes.
Stanislav Yelizarov and the government have agreed that if the Court accepts the plea agreement Yelizarov will be sentenced to 30 years in prison. U.S. District Judge J. Frederick Motz has scheduled sentencing for April 13, 2016 at 10:30 a.m.
Grigoriy (Greg) Zilberman, age 25, and Aleksey Sosonko, age 35, both of Owings Mills, Maryland; Peter Aleksandrov Magnis, age 28, of Hydes, Maryland; Igor Yasinov, age 26, and Sorhib Omonov, age 27, both of Baltimore; and Marat Yelizarov, age 27, of Pikesville, previously pleaded guilty to their roles in the robbery conspiracy and are awaiting sentencing.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Paul E. Budlow and Aaron S. J. Zelinsky, who are prosecuting the case.
Largest Grossing Broker in Agape Ponzi Scheme Sentenced to 108 Months’ ImprisonmentRead the Press Release
Earlier today, at the United States District Court in Central Islip, New York, the Hon. Denis R. Hurley sentenced Jason Keryc, a former broker of Agape World, Inc. (Agape), to 108 months’ imprisonment and ordered that he pay $179 million in restitution following his convictions on April 21, 2015, after a four-week jury trial, for securities fraud, conspiracy, mail fraud, and wire fraud. These convictions arose out of the Keryc’s participation in a Ponzi scheme, in which he took $8.9 million in commission payouts for himself, which he spent on a Long Beach condominium, a million-dollar Montauk vacation home, jewelry, designer clothing, automobiles, and other items. The defendant has been incarcerated since his conviction.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service (USPIS).
“For years, Jason Keryc was the chief fundraiser for a Ponzi scheme that devastated the lives of thousands of middle class Americans whom Keryc and his co-conspirators deceived into investing in a scam,” stated United States Attorney Capers. “Keryc will now pay the price for his self-enrichment and deceit.” Mr. Capers expressed his grateful appreciation to the United States Securities and Exchange Commission for its assistance in the case.
“After being convicted of his crimes, Jason Keryc will now pay for his greed and deception with years of his life behind bars and restitution to the victims. It is unfortunate the destruction his actions have caused. Perhaps this sentence will serve as a warning to others that fraud and Ponzi schemes are serious offenses, not worth risking the cost to self, others, and society,” stated FBI Assistant Director-in-Charge Rodriguez.
“Today’s sentencing represents the continued commitment of United States Postal Inspectors to bring to justice all parties involved in Agape World who participated in an egregious Ponzi scheme defrauding hundreds of investors of their hard earned money,” stated Postal Inspector-in-Charge Bartlett.
Nicholas Cosmo founded Agape in August 2000, following 21 months in a federal prison for defrauding investors. Between October 2005 and January 2009, Keryc played a critical role in the scheme, soliciting and obtaining hundreds of millions of dollars from investors. To induce investments and discourage withdrawals, he misled investors by assuring them that their money would only be used to fund specific, short-term secured bridge loans to commercial borrowers, or to make short-term loans to small businesses; promising to pay investors unusually high rates of returns; and representing that investing in Agape carried little or no risk of loss. As a result of these inducements, Keryc actually raised significantly more money than was needed for the loans, and for his efforts he made approximately $8.9 million – more than twice the $4 million that Cosmo personally profited from the scheme.
Keryc and his co-conspirators paid returns to Agape investors, not from any profits earned on investments, but rather from existing investors’ deposits or money paid by new investors. They then took more than $370 million – approximately $55 million of which came from investors that Keryc or his sub-brokers convinced to invest in the Ponzi scheme – from approximately 5,000 investors. Of that $370 million, only $22 million actually went to fund bridge loans. Approximately $113 million of investors’ money was used to trade high risk futures and commodities, over 80 million dollars of which was lost in these markets.
As the fraudulent scheme began to unravel, Keryc continued to deceive investors about Agape’s financial health. On November 3, 2008, Keryc learned that all of Agape’s 2007 bridge loans were in default or on extension, but did not disclose this information to existing or new investors. Instead, he continued to solicit money from investors, obtaining an additional $13 million. Ultimately, approximately 3,800 investors sustained actual losses totaling more than $150 million.
On October 14, 2011, Cosmo was sentenced to a term of imprisonment of 25 years for his role in the scheme. In addition to the convictions of Cosmo and Keryc, the government’s investigation led to the conviction of seven other defendants in the scheme, who are awaiting sentencing before Judge Hurley.
The government’s case is being prosecuted by the Office’s Long Island Criminal and Civil Divisions. Assistant United States Attorneys Christopher C. Caffarone, Bradley T. King, Grace M. Cucchissi, and Vincent Lipari are in charge of the prosecution.
The Defendant:
JASON KERYC
Age: 38
Wantagh, New YorkE.D.N.Y. Docket No. 12-CR-357 (S-4)(DRH)
Kentucky man sentenced for possession of child pornographyRead the Press Release
Evansville – United States Attorney Josh J. Minkler announced today that John Thomas Allen, 34, of Harned, Kentucky, was sentenced to 60 months in prison by U.S. District Chief Judge Richard L. Young following his guilty plea to possession of child pornography. This case was the result of an investigation by the Federal Bureau of Investigation Violent Crimes Task Force and the Evansville Police Department.
“Those who prey on our children can no longer hide behind the anonymity of computers in their own home,” said Minkler. “Let this be a warning to others who think they can avoid being detected and held accountable.”
In November 2013, a task force officer assigned to the FBI Child Exploitation Task Force conducted an on-line investigation of the sharing of child pornography files on a peer sharing network. Investigators found downloaded video files depicting children under the age of 18 engaged in sexually explicit acts and poses.
Investigators obtained a search warrant which led them to Allen’s apartment. Allen told investigators that he was the person using the lap top computer and a disc drive. Further investigation found 1073 pornographic images that were previously deleted but investigators were able to locate on the hard drive. Some of the images included minors under the age of 12 that portrayed sadistic or masochistic conduct and other depictions of violence.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Judge Young imposed 10 years of supervised release following Allen’s release from prison. Allen must register as a sex offender, must not have unsupervised contact with minors, and also must participate in a sex offender treatment program while on supervision.
KC Man Sentenced to 30 Years in Prison for Heroin Conspiracy, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute heroin and for illegally possessing a firearm and ammunition.
Robin M. Sims, also known as Robin Hood, 51, was sentenced by U.S. District Judge Dean Whipple to 30 years in federal prison without parole. Sims was sentenced as an armed career offender due to his prior felony convictions.
Sims and co-defendant Amy E. Jones, 52, of Kansas City, were found guilty on May 12, 2015, of participating in a conspiracy to distribute heroin between June 2012 and June 2013 and of aiding and abetting one another to distribute heroin. In addition, Sims was convicted of five counts of distributing heroin and one count of being a felon in possession of a firearm and ammunition. Jones was also convicted of being an unlawful drug user in possession of a firearm.
Jones was sentenced on Dec. 14, 2015, to five years in federal prison without parole.
Evidence introduced during the trial included a series of undercover and controlled purchases of heroin from Sims, often utilizing a confidential informant. Police officers conducted three searches at two separate residences shared by Sims and Jones and seized heroin and firearms.
On Aug. 30, 2012, during an investigation, Kansas City police officers searched a residence shared by Sims and Jones and found a Colt .32-caliber pistol under the mattress of a bed.
On Nov. 12, 2012, officers executed a search warrant at the residence shared by Sims and Jones and discovered heroin wrapped in a lottery ticket and a digital scale in the kitchen.
On June 20, 2013, officers executed a search warrant at the residence shared by Sims and Jones. When officers entered the residence, Sims placed a plastic baggie that contained what appeared to be heroin in his mouth and swallowed it. Officers discovered a loaded Davis Industries .22-caliber revolver under a bed.
Under federal statutes, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Sims has a prior felony conviction for second degree murder, two prior felony convictions for drug trafficking, one prior felony conviction for possessing a controlled substance and a prior felony conviction for distributing a controlled substance.
This case was prosecuted by Assistant U.S. Attorneys Rudolph R. Rhodes IV and Joseph M. Marquez. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Justice Department Reaches Agreement with a Texas YMCA to Ensure Equal Opportunities for Children with DiabetesRead the Press Release
The Justice Department reached a settlement agreement today with the Arlington-Mansfield Area YMCA, a local Texas affiliate of the YMCA, to resolve allegations that it violated the Americans with Disabilities Act (ADA) by denying a child the opportunity to participate in a summer day camp program because of his diabetes. YMCA refused to provide daily insulin injections to the child, which left him unable to attend the summer day camp program.
Title III of the ADA prohibits discrimination on the basis of disability by private camps and child care programs. Under the ADA, such entities must make reasonable modifications to their policies, practices or procedures when necessary to provide equal access to a child with a disability, unless a modification would fundamentally alter the nature of the goods and services. Absent a showing of fundamental alteration, where a parent and a child’s physician determine that it is appropriate for a non-nurse to assist a child with diabetes care, allowing a trained layperson to do so is a reasonable modification under the ADA.
“After-school and camp programs provide a critical place for all children to socialize with their friends and learn from their peers,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Department of Justice will continue to aggressively fight all forms of discrimination that seek to deny children with disabilities the protections the ADA guarantees and the opportunities they deserve.”
Under the terms of the two-year agreement, the YMCA will designate an ADA compliance officer who will be responsible for monitoring compliance with the terms of the agreement. The ADA compliance officer will also be responsible for ensuring that the YMCA updates its application materials and implements the policies and procedures required by the agreement, including a non-discrimination policy. The YMCA will designate an individual at each branch who is authorized to receive and review requests for reasonable modifications; inform parents and guardians about how to request reasonable modifications; and train its staff on the ADA, including information on diabetes management. The ADA compliance officer will also review all denials of reasonable modification requests and any decision to exclude a child with a disability from enrollment.
The YMCA will also pay $10,000 to the family to compensate them for the denial of an opportunity to participate in the YMCA program. The department will actively monitor the YMCA’s compliance with terms of the agreement.
One of the largest childcare providers of school-aged children in the region, the Arlington-Mansfield Area YMCA serves the Arlington and Mansfield communities near Dallas and Ft. Worth, Texas. Nearly 900 children participate in the local YMCA’s before and after-school programs and nearly 450 children participate in its summer camp program.
ADA enforcement is a top priority of the Justice Department’s Civil Rights Division. Those interested in finding out more about this settlement or the obligations of camps and child care programs under the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint/.
Juneau man indicted on distribution of child pornographyRead the Press Release
Juneau, Alaska – U.S. Attorney Karen L. Loeffler announced today that a Juneau man was indicted for the distribution of child pornography.
Steven Raymond Foster, 45, of Juneau, Alaska, was arraigned today before U.S. Magistrate Judge Leslie C. Longenbaugh on the sole charge of distribution of child pornography. Foster pled not guilty to the charge and was ordered detained pending trial.
Assistant U.S. Attorney Jack S. Schmidt, who is prosecuting the case, indicated that Foster faces a mandatory minimum sentence of five years and a potential maximum sentence of 20 years in prison, and a $250,000 fine, or both. Foster also faces up to life on supervised release. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Judge Longenbaugh set a trial date for May 3, 2016.
The charges against Foster are the result of an investigation conducted by the Federal Bureau of Investigation (FBI). If the public has any further information, questions, or concerns about the activities of Foster please contact the FBI at (907) 265-8254.
This case is being brought as part of Project Safe Childhood. In May 2006, DOJ launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
John Michael Wade Pleads Guilty to Conspiracy to Defraud A Cary, NC CompanyRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court, JOHN MICHAEL WADE, 63, pled guilty to Conspiracy to commit wire fraud. As part of his plea, WADE agreed to pay $219,304 in restitution. He faces a maximum of five years imprisonment.
The Criminal Information WADE pled guilty to charged that he and a co-conspirator contracted with a company in China to supply tools to their company headquartered in Cary, NC. WADE, his coconspirator, and the Chinese company reached an agreement to inflate the invoices to WADE’S company. After WADE’S company paid the inflated invoices to the Chinese company, the Chinese company paid the inflated amounts to WADE’S coconspirator, who in turn split the proceeds with WADE. Wade incorporated a business to receive his share of the proceeds.
The criminal investigation of this case was conducted by Internal Revenue Service Criminal Investigation. Assistant United States Attorney David Bragdon handling the case on behalf of the government.
Indiana Man Sentenced to Prison for Interstate Domestic Violence OffenseRead the Press Release
DES MOINES, IA – On February 22, 2016, Robert Eugene Graham, 46, of Michigan City, Indiana, was sentenced by Chief United States District Court Judge John A. Jarvey to 210 months (17-1/2 years) in prison for the crime of interstate domestic violence, announced Acting United States Attorney Kevin E. VanderSchel. Graham had previously pleaded guilty to this offense on November 6, 2015.
According to the plea agreement, Graham traveled from Michigan City, Indiana, to Chariton, Iowa, on January 15, 2015, while in possession of a Mossburg shotgun. The following morning, he shot the victim, with whom he had previously had an intimate relationship, while the victim was leaving her home for work. Graham’s actions caused severe, life-threatening bodily injury to the victim.
This matter was investigated by the Iowa Division of Criminal Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa, with assistance from the office of the Iowa Attorney General—Area Prosecutions.
Hidalgo Officials Sentenced for Conspiracy to Commit BriberyRead the Press Release
McALLEN, Texas ‐ Two Hidalgo women have been ordered to federal prison following their conviction for conspiracy to commit bribery, announced U.S. Attorney Kenneth Magidson. Susana Munguia, 61, and Lubina Pedraza, 54, pleaded guilty July 13, 2015.
Today, U.S. District Judge Micaela Alvarez, who accepted the guilty pleas, handed Munguia a 57-month sentence, while Pedraza was ordered to serve 46 months. The sentences will be followed by three years of supervised release. Munguia and Pedraza were also ordered to forfeit approximately $14,497 in illicit proceeds. In handing down the sentence, Judge Alvarez noted that we cannot allow public corruption to spread. There is no excuse for someone who takes a position in the public sector and then illegally uses that position for their own benefit.
Munguia and Pedraza were former officials with the City of Hidalgo Housing Authority who worked directly with the Department of Housing and Urban Development (HUD)’s Housing Choice Voucher Program (HCVP). Munguia was the executive director and Pedraza was a secretary.
From July 2011 to May 2014, Munguia and Pedraza admitted they used their positions as public officials to engage in a bribery scheme. The two women solicited and received bribes in exchange for allowing individuals to skip the Section 8 waitlist and immediately obtain housing assistance from the HCVP. Individuals paid, directly or through a third party, a monetary bribe to Munguia and Pedraza in order to bypass the waitlist system and to receive immediate approval to obtain vouchers for housing subsidies under the HCVP.
Munguia supervised and Pedraza was responsible for assigning housing to the payee or beneficiary and issued checks to subsidize their rent payments. After Munguia and Pedraza received the bribe, the paying party (or the person for whom payment was made), would immediately receive their subsidized housing.
Previously released on bond, the women were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by HUD-Office of Inspector General and the FBI. Assistant U.S. Attorney Kristen Rees prosecuted the case.
Hell’s Angels Member Pleads Guilty to Armed Assault; Rochester Woman Pleads Guilty to Accessory ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Robert W. Moran, Jr., 63, of Rochester, NY, pleaded guilty to conspiracy to commit assault with a dangerous weapon in aid of racketeering activity, before U.S. District Judge Charles J. Siragusa. The charge carries a maximum penalty of three years in prison and a $250,000 fine. In addition, Gina Tata, 52, also of Rochester, pleaded guilty to being an accessory after the fact to the crime of conspiracy to commit assault with a dangerous weapon in aid of racketeering activity. That charge carries a maximum penalty of 18 months in prison and a $125,000 fine.
Assistant U.S. Attorney Brett A. Harvey, who is handling the case, stated that on May 31, 2006, Moran – a member and officer of the Rochester Hell’s Angels – assaulted a patron at Spenders Bar on Lyell Avenue in Rochester with a baseball bat. The defendant beat the patron in the head and body after the patron made disparaging remarks about motorcycle clubs, including the Hell’s Angels. At the time of the assault, Moran was a member of the Rochester Hell’s Angels, which was an enterprise the members of which were engaged in racketeering activity, including drug trafficking and conspiracy to commit murder. The defendant committed the assault in order to maintain his position in the Rochester Hell’s Angels.
Gina Tata, who was the bartender at Spenders Bar at the time of the assault, tried to help Moran escape arrest and prosecution for the assault. After hearing the comments made by the patron, Tata called a member of the Rochester Hell’s Angels, leading to the eventual beating of the victim by Moran. In the aftermath of the attack, Tata took several steps to help Moran avoid apprehension by law enforcement authorities, including lying to the police about the identities of the perpetrator of the assault. Tata also counseled another eyewitness to not give the police a good description of the perpetrator and to not identify Moran. Also, in the early morning hours after the assault, Tata let an associate of the Rochester Hell’s Angels into Spenders Bar to retrieve a hard drive containing recordings of the interior surveillance cameras at the bar. In May 2007, a year after the assault, Tata lied to the FBI about the perpetrators of the assault, describing them as tall, young Hispanic males, and falsely told the FBI that she used the phone at Spenders Bar only to call 911 and the owner of the bar.These pleas are part of a larger investigation that resulted in the indictment and arrest of members and associates of the Rochester and Monterey (California) Hell's Angels for drug trafficking and racketeering-related offenses in February 2012. Hell's Angels President Richard W. Mar, and Jeffrey A. Tyler, were charged with conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of methamphetamine. Five other defendants – Henry McCauley, Donna Boon, Paul Griffin, Richard E. Riedman, and Gordon L. Montgomery – were convicted for their roles in the methamphetamine conspiracy. Judge Siragusa sentenced Griffin to probation and Riedman to 37 months in prison. McCauley, Boon and Montomgery are awaiting sentencing. Another defendant, Timothy M. Stone, was convicted and of being an accessory after the fact to the assault and conspiracy, and was sentenced to 12 months in prison.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation on the part of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam Cohen, the Genesee County Sheriff's Office, under the direction of Sheriff Gary T. Maha, 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, the City of Batavia Police Department, under the direction of Chief Sean Shawn Heubusch, and the Village of LeRoy Police Department.
Sentencing for Moran and Tata is scheduled for May 25, 2016, at 10:15 a.m. and 11:00 a.m. respectively, both before Judge Siragusa.
Hammond Man Sentenced to 22 Years in Prison after Pleading Guilty to Drug and Gun ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MARCUS BRUMFIELD, age 31, of Hammond, was sentenced today after pleading guilty to charges of possession with the intent to distribute twenty-eight grams or more of cocaine base, felon in possession of a firearm, and possession of a firearm in furtherance of a drug trafficking crime.
U.S. District Judge Sarah S. Vance sentenced BRUMFIELD to 264 months in prison to be followed by 4 years of supervised release.
According to court documents, on August 27, 2013, Officers with the Hammond Police Department arrested BRUMFIELD, who was previously convicted of a felony, after finding him in a vehicle with 1.4 ounces of cocaine base, and a stolen Glock, .45 caliber handgun.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration and the Hammond Police Department in investigating this matter. Assistant United States Attorney Andre’ Jones was in charge of the prosecution.
Fourteen Alleged Gang Members and Associates Indicted in Charleston, South Carolina, on Federal Racketeering and Attempted Murder ChargesRead the Press Release
Contact Person: Office of Public Affairs (202) 514-2007
Washington – Fourteen alleged members of two violent street gangs in South Carolina and alleged associates of both gangs have been indicted by a federal grand jury for allegedly conspiring to participate in a racketeering enterprise and using firearms in the commission of attempted murder in aid of racketeering activity.Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; U.S. Attorney William M. Nettles of the District of South Carolina; Special Agent in Charge C.J. Hyman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Charlotte, North Carolina, Field Division; Special Agent in Charge Nick S. Annan of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Atlanta Field Office; Solicitor Duffie Stone of the 14th Judicial Circuit; Solicitor David Pascoe of the First Circuit; Sheriff R.A. Strickland, of the Colleton County, South Carolina, Sheriff’s Office; Chief Wade Marvin of the Walterboro, South Carolina, Police Department; Sheriff Al Cannon of the Charleston County, South Carolina, Sheriff’s Office; Sheriff L.C. Knight of the Dorchester County, South Carolina, Sheriff’s Office; Captain Jon Rogers of the Summerville, South Carolina, Police Department; Director Jerry Adger of the South Carolina Department of Probation, Parole and Pardon Services; and Chief Mark Keel of the South Carolina Law Enforcement Division – Lowcountry Office made the announcement today upon the unsealing of the indictments.
Cowboys Indictment
According to the indictment, the defendants are members and associates of the Cowboys, a violent criminal street gang with members operating in South Carolina since at least 2009, who resided in an area known as the “Eastside” of Walterboro and are led by Khiry Broughton. The indictment further alleges that for a period of time, the Cowboys were aligned with another violent criminal street gang in Walterboro known as the Wildboys.
From October 2012 to November 2015, the Cowboys allegedly committed a wide range of crimes in order to further their racketeering scheme, including attempted murders, assault with dangerous weapons, drive-by shootings, home invasion robberies, threats of violence and distribution of narcotics, and charges the following defendants:- Broughton, 25, aka Kblacka;
- DaShawn Trevell Brown, 23, aka Shawny;
- Clyde Naquan Hampton, 23, aka One Loyal Shooter;
- Zaquann Ernest Hampton, 22, aka TOB;
- Matthew Rashaun Jones, 22, aka Boogie Mac;
- Christopher Sean Brown, 22, aka Roughish;
- Bryant Jameek Davis, 21, aka Savo;
- William Lamont Cox, 38, aka Wataz; and
- Quintin John Fishburne, 35, aka Q.
The indictment was returned under seal on Feb. 9, 2016, and unsealed yesterday after the nine defendants were arrested.
Wildboys Indictment
According to the four-count indictment, the defendants are members and associates of the Wildboys, a violent criminal street gang with members operating in various cities in South Carolina, including in Summerville and Walterboro. Wildboys members and associates allegedly committed a wide range of racketeering activity, including assault with dangerous weapons, murder, robbery and narcotics trafficking.
The indictment charges the following defendants with attempted murder in aid of racketeering activity and using a firearm during a violent crime:- Joshua Edward Manigault, 30, aka J-Rizzle and Rizzle-Back;
- Brian Manigo, 24, aka B-Nasty;
- Kelvin Mitchell, 28, aka Kevy Boy;
- Damien Robinson, 19, aka Sacked Up; and
- Devin Brown, 21, aka Deno Badazz.
The indictment was returned under seal on Feb. 9, 2016, and unsealed yesterday after the five defendants were arrested.
* * *
The Criminal Division’s Organized Crime and Gang Section is prosecuting the cases in partnership with the 14th Circuit Solicitor’s Office. The ATF, ICE-HSI, the Colleton County Sheriff’s Office, the Walterboro Police Department, Charleston County Sheriff’s Office, the Dorchester County Sheriff’s Office, the Summerville Police Department and the First Circuit Solicitor’s Office are investigating the cases.
An indictment is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Fourteen Alleged Gang Members and Associates Indicted in Charleston, South Carolina, on Federal Racketeering and Attempted Murder ChargesRead the Press Release
Fourteen alleged members of two violent street gangs in South Carolina and alleged associates of both gangs have been indicted by a federal grand jury for allegedly conspiring to participate in a racketeering enterprise and using firearms in the commission of attempted murder in aid of racketeering activity.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; U.S. Attorney William M. Nettles of the District of South Carolina; Special Agent in Charge C.J. Hyman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Charlotte, North Carolina, Field Division; Special Agent in Charge Nick S. Annan of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Atlanta Field Office; Solicitor Duffie Stone of the 14th Judicial Circuit; Solicitor David Pascoe of the First Circuit; Sheriff R.A. Strickland, of the Colleton County, South Carolina, Sheriff’s Office; Chief Wade Marvin of the Walterboro, South Carolina, Police Department; Sheriff Al Cannon of the Charleston County, South Carolina, Sheriff’s Office; Sheriff L.C. Knight of the Dorchester County, South Carolina, Sheriff’s Office; Captain Jon Rogers of the Summerville, South Carolina, Police Department; Director Jerry Adger of the South Carolina Department of Probation, Parole and Pardon Services; and Chief Mark Keel of the South Carolina Law Enforcement Division made the announcement today upon the unsealing of the indictments.
Cowboys Indictment
According to the indictment, the defendants are members and associates of the Cowboys, a violent criminal street gang with members operating in South Carolina since at least 2009, who resided in an area known as the “Eastside” of Walterboro and are led by Khiry Broughton. The indictment further alleges that for a period of time, the Cowboys were aligned with another violent criminal street gang in Walterboro known as the Wildboys.
From October 2012 to November 2015, the Cowboys allegedly committed a wide range of crimes in order to further their racketeering scheme, including attempted murders, assault with dangerous weapons, drive-by shootings, home invasion robberies, threats of violence and distribution of narcotics, and charges the following defendants:
- Broughton, 25, aka Kblacka;
- DaShawn Trevell Brown, 23, aka Shawny;
- Clyde Naquan Hampton, 23, aka One Loyal Shooter;
- Zaquann Ernest Hampton, 22, aka TOB;
- Matthew Rashaun Jones, 22, aka Boogie Mac;
- Christopher Sean Brown, 22, aka Roughish;
- Bryant Jameek Davis, 21, aka Savo;
- William Lamont Cox, 38, aka Wataz; and
- Quintin John Fishburne, 35, aka Q.
The indictment was returned under seal on Feb. 9, 2016, and unsealed yesterday after the nine defendants were arrested.
Wildboys Indictment
According to the four-count indictment, the defendants are members and associates of the Wildboys, a violent criminal street gang with members operating in various cities in South Carolina, including in Summerville and Walterboro. Wildboys members and associates allegedly committed a wide range of racketeering activity, including assault with dangerous weapons, murder, robbery and narcotics trafficking.
The indictment charges the following defendants with attempted murder in aid of racketeering activity and using a firearm during a violent crime:
- Joshua Edward Manigault, 30, aka J-Rizzle and Rizzle-Back;
- Brian Manigo, 24, aka B-Nasty;
- Kelvin Mitchell, 28, aka Kevy Boy;
- Damien Robinson, 19, aka Sacked Up; and
- Devin Brown, 21, aka Deno Badazz.
The indictment was returned under seal on Feb. 9, 2016, and unsealed yesterday after the five defendants were arrested.
* * *
The Criminal Division’s Organized Crime and Gang Section is prosecuting the cases in partnership with the 14th Circuit Solicitor’s Office. The ATF, ICE-HSI, the Colleton County Sheriff’s Office, the Walterboro Police Department, Charleston County Sheriff’s Office, the Dorchester County Sheriff’s Office, the Summerville Police Department and the First Circuit Solicitor’s Office are investigating the cases.
An indictment is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Four Sentenced for Roles in March 2014 Heroin Overdose Death of a Dallas Teenage GirlRead the Press Release
DALLAS — A 37-year-old heroin dealer and his three co-conspirators, including two women who injected a Dallas teenage girl with a fatal dose of that heroin in March 2014, were sentenced this week in federal court in Dallas, announced U.S. Attorney John Parker of the Northern District of Texas.
On Monday, Jimison Erik Coleman, 37, of Los Angeles, California, was sentenced by U.S. District Judge Sam A. Lindsay to 16 years in federal prison. He pleaded guilty in August 2015 to one count of conspiracy to possess with the intent to distribute heroin, stemming from his role in the March 2014 heroin overdose death of a Dallas teenage girl, Rian Hannah Lashley.
Co-conspirator Cierra Allyn Rounds, 28, was sentenced on Monday by Judge Lindsay to 13 years in in federal prison. She pleaded guilty in March 2015 to the same offense.
Today, the two remaining coconspirators, who also pleaded guilty to the same offense, Kathryn Grace Dirks, a/k/a “Kat,” 26, and Glen William Brunton, 29, both of Dallas, were sentenced by Judge Lindsay to 13 years and five years, respectively.
“This case is a tragic yet perfect example of why we prosecute those who peddle poison to our children,” said U.S. Attorney Parker. “Heroin, and the prescription opioids like OxyContin and hydrocodone that fuel its demand, are killing our loved ones and tearing our families apart. This is the fastest growing and most dangerous drug threat in north Texas today and throughout this country. Opioid overdoses have reached epidemic proportions as they have tripled since 2000. Heroin deaths alone have tripled in just four years. Shockingly, eighty people a day die from opioid overdose in this country, and thirty of those, like Rian, from heroin. The cost of dealing this poison is going to be steep, particularly when people die. That’s our job.”
According to documents filed in the case, Coleman and Dirks were involved in a romantic relationship in 2013 and part of 2014, and during the time they were together, Coleman routinely distributed drugs, including heroin, MDMA and prescription drugs, to dancers and patrons at a strip club in Dallas where Dirks worked and at clubs in Southern California. Sometimes Coleman fronted quantities of drugs to particular dancers who, at his direction, sold the drugs to patrons and/or other dancers with whom they came in contact. On occasion, Dirks directed customers who were interested in purchasing drugs to Coleman, and in return, Coleman provided Dirks with heroin and other drugs to support her drug addiction. From December 2013 until April 2015, Coleman distributed multiple grams of heroin, multiple hits of ecstasy and molly, multiple ounces of cocaine and various prescription drugs to numerous customers in North Texas and elsewhere.
Early in the morning on March 25, 2014, Coleman, Dirks, Rounds, Brunton and Lashley met for breakfast at an IHOP restaurant in Plano, Texas. Coleman had provided Dirks, Rounds and Brunton with heroin on numerous occasions prior to that date. Rounds and the others learned that Lashley had about $3,500, a cell phone and an iPad.
Later that morning in a parking lot near the IHOP, Coleman gave Brunton five baggies totaling one gram of “China White” heroin and directed him to deliver the heroin to Lashley, who was with Dirks and Rounds in Lashley’s vehicle. At Coleman’s direction, Brunton distributed the heroin to Lashley for $120 cash that he subsequently turned over to Coleman. After acquiring the heroin, Rounds, Dirks and Lashley left the parking lot in Lashley’s vehicle and traveled to a residence in Dallas where Rounds lived. Coleman and Brunton left the parking lot in a separate vehicle.
On the way to that residence, Rounds used Lashley’s cell phone to send a series of text messages to Coleman, including information about their proximity to the residence and a text advising him that “…I figured ud want me on this money.” Rounds admitted that when she sent this text to Coleman, she was notifying him that she understood that she was to attempt to steal the money Lashley had and turn it over to Coleman. As Rounds and the others arrived at the Dallas residence, Rounds sent another text message to Coleman asking if she should take Lashley and Dirks inside. Coleman texted back, “Don’t leave don’t let them leave.” Rounds understood the message to mean to take Lashley into the residence and keep her there. In fact, later that afternoon, Dirks turned over a portion or all of Lashley’s cash to Coleman.
Once inside the Dallas residence, at Lashley’s request, Rounds and Dirks used a syringe to inject the heroin that Coleman supplied into Lashley. Just before doing that, however, Rounds sent Coleman a text stating “…ima bout to shoot her up for her first time.” Rounds admitted that she hoped the heroin injection would incapacitate Lashley in such a way to allow her to steal Lashley’s cash. Lashley was injected a total of three times.
Later that afternoon, Lashley began showing signs of distress and Rounds and Dirks placed her in a bathtub of ice water in an attempt to reverse the effects of the heroin. After she was removed from the bathtub, Lashley was placed on a couch and appeared to go to sleep.
Rian Lashley died later that evening as a direct result of the heroin she bought from Coleman that was administered to her. An autopsy concluded that Lashley died as a result of the toxic effects of heroin.
The Dallas Police Department, the FBI, the U.S. Marshals Service, and the Buena Park, California, Police Department investigated. Deputy Criminal Chief Assistant U.S. Attorney Rick Calvert and Assistant U.S. Attorney Phelesa Guy prosecuted the case.
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Fort Campbell, Kentucky, Resident Sentenced to 18 Years in Prison for First Degree Manslaughter Resulting from Child AbuseRead the Press Release
LOUISVILLE, Ky. – A Fort Campbell, Kentucky, woman was sentenced today by Senior United States District Judge Thomas B. Russell to 18 years in prison, followed by a three year period of supervised release, for the first degree manslaughter, resulting from child abuse, in the death of an infant whom she was babysitting in December 2013, announced United States Attorney John E. Kuhn, Jr.
There is no parole in the federal system.
“This sudden violent act ended with tragic consequences,” stated U.S. Attorney John Kuhn. “While nothing we can do will ever bring this innocent child back, we have strived to achieve justice for this family.”
Sheilla E. Linares, 22, previously admitted that on December 3, 2013, while on Fort Campbell Military Base, a special jurisdiction of the United States, located in Christian County, Kentucky, she provided babysitting service for an infant child, T.R.C., Jr. Three other children also were in the residence under Linares’ care that day, her two young children and T.R.C., Jr.’s three-year-old sister, A.C. No other adults were present in the residence during the day.
Between 3:00-3:30 p.m. Linares intentionally caused serious injury to T.R.C., Jr. Linares later admitted to law enforcement that it took her less than a second to realize that what she had done was completely wrong. She admitted to then putting the baby in the swing at which point, the infant became unresponsive. Linares stated that she then called the baby’s mother and 9-1-1.
An ambulance transported T.R.C., Jr. to the emergency room at the Army hospital located on Fort Campbell Military Base. His condition deteriorated and he was transported to Vanderbilt. While being treated at Vanderbilt, medical personnel noticed bruising that appeared on both of his shoulders as well as his left upper arm. Medical tests and examinations revealed bilateral subdural hemorrhage (approximately 25 ml total volume), focal subarachnoid hemorrhage, cerebral edema, bilateral optic nerve sheath hemorrhage, subdural blood throughout the spinal cord, and cervical nerve root hemorrhage. T.R.C., Jr.’s injuries were a result of Linares’ abuse. Those injuries led to his death.
On December 7, 2013, T.R.C., Jr., was determined to have insufficient brain activity to sustain life, and pronounced dead. The amended autopsy report of the Tennessee medical examiner lists the cause of death as blunt force injuries of the head and neck.
Assistant United States Attorney Jo E. Lawless is prosecuting the case. The Federal Bureau of Investigation, with assistance from the United States Army Criminal Investigation Division, and the Clarksville Tennessee Police Department, conducted the investigation.
Former VA Nurse Pleads Guilty to Stealing Controlled Substance from Hospital SyringesRead the Press Release
ALBANY, NEW YORK – Nathan Baum, age 30, of East Greenbush, New York, pled guilty today to tampering with a consumer product and obtaining controlled substances by deception and subterfuge.
The announcement was made by United States Attorney Richard S. Hartunian; Special Agent in Charge Jeffrey G. Hughes of the U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office; and Acting Special Agent in Charge Spencer E. Morrison of the U.S. Food and Drug Administration Office of Criminal Investigations, New York Field Office.
Baum, a licensed practical nurse who worked at the hospice ward of the Veterans Affairs Medical Center (VAMC) in Albany, improperly accessed syringes that contained oxycodone hydrochloride. These syringes were stored in locked containers, which Baum was able to access using his individually assigned password. Between April 8, 2014 and May 16, 2014, Baum removed the oxycodone hydrochloride from at least 25 syringes and replaced it with haloperidol.
Oxycodone hydrochloride, a Schedule II controlled substance, is a highly addictive narcotic analgesic used to treat moderate to severe pain and is to be prescribed only when medically required. Haloperidol, often marketed as Haldol, is an anti-psychotic medication used to treat certain mental/mood disorders and to treat uncontrolled movements or agitation.
“To satisfy his addiction, the defendant stole pain medicine intended for veterans in hospice care and tried to hide his crime by replacing that medicine with anti-psychotic medicine that would not have eased their pain,” stated U.S. Attorney Richard S. Hartunian. “In committing this terrible crime, Baum betrayed his patients and their loved ones, the nursing profession, and the Department of Veterans Affairs.”
“Mr. Baum abused his position as a nurse with the VA for his own personal gain at the expense of his patients,” stated Special Agent in Charge Jeffrey G. Hughes of the Veterans Affairs Office of Inspector General, Northeast Field Office. “The VAOIG will continue to work diligently with its law enforcement partners and U.S. Attorney’s Offices to apprehend those who victimize our nation’s veterans.”
“FDA oversees the U.S. supply of medicines to ensure that they are safe and effective, and those who knowingly give the wrong medicines to patients put their health at risk,” said Spencer E. Morrison, Acting Special Agent in Charge, FDA Office of Criminal Investigations’ New York Field Office. “Our office will continue to pursue and bring to justice those who violate laws designed to protect the public health.”
Baum’s tampering was discovered in late May 2014, when his supervisor noticed that he was slurring his speech and his pupils were pinpoint – signs of controlled substance abuse. When federal agents inspected the locked container Baum was allowed to access, they found that three sets of oxycodone hydrochloride syringes had been tampered with. In an interview, Baum admitted that he was addicted to painkillers; that he used oxycodone hydrochloride that was intended for veterans; and that he replaced the oxycodone hydrochloride in some syringes with Haldol.
Senior U.S. District Judge Lawrence E. Kahn is scheduled to sentence Baum on June 22, 2016. Tampering with a consumer product carries a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. Obtaining controlled substances by deception and subterfuge carries a maximum sentence of 4 years in prison and a fine of up to $250,000. A defendant’s sentence is imposed by a judge based on a combination of factors including the U.S. Sentencing Guidelines and relevant statutes.
This case is being investigated by the U.S. Department of Veterans Affairs Office of Inspector General and the Food and Drug Administration Office of Criminal Investigations, and is being prosecuted by Assistant U.S. Attorney Elizabeth R. Rabe.
Former State Senator Leland Yee Sentenced to Five Years’ Imprisonment on Racketeering Conspiracy ChargesRead the Press Release
SAN FRANCISCO – Former State Senator Leland Yee was sentenced to 60 months’ imprisonment and Keith Jackson was sentenced to 108 months’ imprisonment today for their respective roles in a racketeering conspiracy announced Acting United States Attorney Brian J. Stretch and FBI Special Agent in Charge David J. Johnson. Brandon Jamelle Jackson and Marlon Sullivan also were sentenced today; Jackson to 54 months and Sullivan to 66 months, for their respective roles in a separate, but related, conspiracy. Today’s sentences are the first four to result from the second superseding indictment filed January 29, 2015, in federal court.
The second superseding indictment stemmed from allegations that former Senator Yee, along with 27 other defendants, was involved in a broad array of criminal activity. All four defendants who were sentenced today had pleaded guilty to one count of conducting the affairs of a racketeering enterprise through a pattern of racketeering activity, in violation of 18 U.S.C. § 1962(d). Central to the allegations in the indictment is the existence of two criminal enterprises through which some of the defendants engaged in patterns of racketeering (RICO) activity. Yee and Keith Jackson acknowledged participating in one RICO conspiracy while Sullivan and Brandon Jackson admitted to participating in a related conspiracy.
On July 1, 2015, Yee and Keith Jackson pleaded guilty to using the Leland Yee for Mayor 2011 campaign and the Leland Yee for Secretary of State 2014 campaign to conduct RICO crimes. According to government filings, the conspiracy involved three different, but related, areas of criminal activity: (1) honest services fraud in which he exchanged official acts for money, (2) a weapons trafficking conspiracy, and (3) money laundering. Federal wiretaps established in November of 2012 revealed that Yee devised extortion schemes in which he “tutored and directed [Keith] Jackson.” Yee planned to obtain campaign contributions by leveraging his Senate committee vote on an upcoming decision to dissolve the California State Athletic Commission. According to the government’s papers, Yee requested campaign contributions from individuals interested in keeping the Commission alive. In the second scheme, Yee was prepared to vote for or against pending legislation on workers compensation for professional athletes playing in California depending on which competing interest gave him the most money.
While addressing Yee, Judge Breyer commented during the hearing that the public had to have trust in the integrity of its institutions, but that Yee “abused that trust,” and “did not have that integrity.” Judge Breyer also said that the fact that Yee’s vote as a state senator was “for sale” was, in his view, “a very serious violation of trust.”
Keith Jackson, as part of his plea agreement, acknowledged that he participated in the RICO conspiracy with Yee. Keith Jackson also admitted he committed several crimes to further the conspiracy. Among the activities Keith Jackson acknowledged he participated in to further the conspiracy are accepting cash and checks for bribes, wire fraud, money laundering, and conspiracy to illegally import firearms and ammunition from the Philippines.
Sullivan and Brandon Jackson pleaded guilty on July 1, 2015, to participating in a second RICO conspiracy described in the second superseding indictment. As part of their guilty pleas, both Sullivan and Brandon Jackson acknowledged being associated with a San Francisco Chinese American civic association and conducting RICO crimes. Both Sullivan and Brandon Jackson admitted that between September of 2012 and March of 2014, they arranged the purchase of cocaine and participated in multiple illegal firearms sales. They also admitted that they discussed with an undercover agent the need to kill an associate of the undercover agent. Brandon Jackson admitted to telling the undercover agent he would gather intelligence and bring a family member from out of state to complete the murder-for-hire conspiracy. Sullivan admitted he received $10,000 to ensure that the job would be completed.
The sentences were handed down by the Honorable Charles R. Breyer, U.S. District Judge. Judge Breyer sentenced the defendants as follows:
Leland Yee: 60 months, to begin within the next 30 days, a $20,000 fine, 3 years of supervised release, and forfeiture of certain property.
Keith Jackson: 108 months, to begin within the next 30 days, 3 years of supervised release, and forfeiture of certain property
Marlon Sullivan: 66 months (including time already served), 3 years of supervised release, and forfeiture of certain property
Brandon Jackson: 54 months (including time already served), 3 years of supervised release, and forfeiture of certain property.
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 the Federal Bureau of Investigation; Internal Revenue Service – Criminal Investigation; San Francisco Police Department Gang Task Force; Oakland Police Department, Criminal Investigation; New York Police Department; and the Mercer County New Jersey Sheriff's Office.
Former Selmer Police Lieutenant Indicted on Federal Child Pornography ChargesRead the Press Release
Memphis, TN – A former Selmer Police Department lieutenant has been indicted on multiple child pornography charges. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment today.
According to the indictment, between February and March 2015, Tony O. Miller, 36, of Finger, Tennessee, obtained images and videos of minors, some of whom were under 12 years old, engaged in sexually explicit conduct.
An undercover Federal Bureau of Investigation (FBI) investigation identified users of a website set up for the purposes of sharing child pornography. Visitors to the website could view, download, and comment on other users' material, as well as upload their own. Miller was identified as one of the website’s users. At the time of the alleged conduct, he was a lieutenant with the Selmer Police Department.
On Wednesday, February 24, 2016, Miller was indicted on one count of receipt of child pornography and two counts of access with intent to view child pornography.
If convicted, Miller faces a minimum sentence of five years and a maximum of 20 years on the receipt of child pornography charge. He faces a maximum sentence of 20 years for each access with intent to view child pornography charge.
Miller faces individual fines of up to $250,000 on each count.
This case is being investigated by the FBI and Selmer Police Department.
Assistant U.S. Attorney Debra Ireland is prosecuting this case on the government’s behalf.
Anyone who has information on the exploitation of minors is asked to contact the Memphis Child Exploitation Task Force at 901.747.4300.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Former Norman Attorney Pleads Guilty to Defrauding Clients and Failing to File a Tax ReturnRead the Press Release
Oklahoma City, Oklahoma – Today, DANE THOMAS WILSON, of Oklahoma City, pled guilty to one count of wire fraud and one count of failing to file a tax return, announced Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma.
Wilson was charged pursuant to an Information filed by the Government. Wilson admitted today to United States District Judge Timothy D. DeGuisti that from December 2010 through December 31, 2011, while he was a licensed attorney practicing in Norman, Oklahoma, he defrauded his clients by misappropriating funds that he received on their behalf from insurance companies and other payors. Wilson admitted that he deposited the funds he received for the benefit of his clients into a client trust account, and then wrote checks to himself, made cash withdrawals, or transferred money from the client trust account in amounts that exceeded the attorney’s fees that he was contractually entitled to receive from each client. He admitted that, as a result of his actions, some of his clients received no money or less money than they were due from the settlements or judgments he obtained on their behalf. Specifically, Wilson admitted that he caused First American Bank in Oklahoma to use interstate wire communications with the bank’s processor in Texas to withdraw $40,000 from his client trust account. He admitted that this money was fraudulently misappropriated from insurance settlement funds that rightfully belonged to Wilson’s client, R.F.
Wilson also admitted that he knowingly and willfully failed to file a federal income tax return with the Internal Revenue Service for the tax year of 2011.
At sentencing, Wilson faces up to 20 years in prison and a $250,000 fine for the wire fraud charge and up to one year in prison and a $100,000 fine on the tax charge. A sentencing hearing will be set by the court in approximately 90 days.
This case was investigated by the Federal Bureau of Investigation and IRS-Criminal Investigations and was prosecuted by Assistant U.S. Attorney Amanda Maxfield Green.
Former Junior High School Teacher Indicted for Receiving Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former Lebanon Junior High School teacher has been indicted by a federal grand jury for receiving child pornography over the Internet.
Evert Henry, 41, of Lebanon, Mo., was charged in an indictment returned by a federal grand jury in Springfield, Mo., on Monday, Feb. 23, 2016.
Henry was a teacher in the Lebanon R-3 School District at the junior high school during the time of the alleged offense. The indictment alleges that Henry received child pornography over the Internet from Jan. 1, 2011, to Jan. 13, 2016.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Lebanon, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Chief Operating Officer and Co-Owner of Schuylkill Products Resentenced in Largest Disadvantaged Business Enterprise Fraud in Nation’s HistoryRead the Press Release
HARRISBURG-Ernest G. Fink, Jr., 70, of Orwigsburg, Pennsylvania, the former Chief Operating Officer and co-owner of Schuylkill Products Inc., was sentenced in federal court in Harrisburg, Pennsylvania, today to 41 months’ imprisonment and ordered to pay fines totaling $25,100 for his role in a massive conspiracy to defraud the Disadvantage Enterprise (DBE) program, announced Peter Smith, U.S. Attorney for the Middle District of Pennsylvania.
According to the U.S. Department of Transportation (USDOT), this scheme, which lasted for over 15 years and involved over $136 million in government contracts in Pennsylvania alone, is the largest reported Disadvantaged Business Enterprise (DBE) fraud in the nation’s history.
On July 14, 2014, Fink was sentenced to 51 months’ imprisonment and ordered to pay fines totaling $25,100 for his role in the offense.
That sentence was vacated by the U.S. Court of Appeals for the Third Circuit on September 30, 2015 based on the findings of an incorrect calculation of the loss amount under the Sentencing Guidelines. Today’s sentence was based on a revised loss amount of $1,037, 828.61, which represents the amount of profit diverted from legitimate DBE’s as a result of the scheme. Previously, the loss was calculated based on the total amount of DBE contracts SPI received as a result of the scheme.
The investigation was conducted by the FBI, the U.S. Department of Transportation Inspector General’s Office, the U.S. Department of Labor Inspector General’s Office, and the Criminal Investigation Division of the IRS. Assistant U.S. Attorney Bruce Brandler handled the prosecution.
Fink was Vice-President, Chief Operating Officer and co- owner of Schuylkill Products Inc. (SPI) and its wholly-owned subsidiary CDS Engineers Inc. (CDS), until April 2009 when SPI was sold. SPI, based in Cressona, Pennsylvania, manufactured concrete bridge beams used on highway construction projects in Pennsylvania and surrounding states. CDS was SPI’s erection division and installed SPI’s bridge beams as well as other suppliers’ products on highways in Pennsylvania and surrounding states. The conspiracy defrauded USDOT, the Pennsylvania Department of Transportation (PennDOT) and the Southeastern Pennsylvania Transportation Authority (SEPTA) in connection with the federal government’s DBE program.
USDOT provides billions of dollars a year to states and municipalities for the construction and maintenance of highways and mass transit systems on the condition that small businesses, owned and operated by disadvantaged individuals, receive a fair share of these federal funds. In Pennsylvania, PennDOT and SEPTA receive these funds and requires contractors to award a percentage of their subcontracts to eligible DBE’s.
Fink and his co- conspirators executed the scheme by using a small Connecticut highway construction firm known as Marikina Construction Corporation as a front company to obtain these lucrative government contracts.
Marikina was owned by Romeo P. Cruz of West Haven, Connecticut, a naturalized American citizen born in the Philippines. Marikina was certified by PennDOT and SEPTA as a DBE. Although Marikina received the DBE contracts on paper, all the work was performed by SPI and CDS personnel, and SPI and CDS received all the profits. In exchange for letting SPI and CDS use its name, Marikina was paid a small fixed-fee, set by SPI.
SPI and CDS personnel pretended to be Marikina employees by using Marikina business cards, email addresses, stationery, and signature stamps, as well as using magnetic placards and decals bearing the Marikina logo to cover up SPI and CDS logos on SPI and CDS vehicles.
In 2014, four other former executives associated with SPI, CDS and Marikina were sentenced for their roles in the scheme.
Joseph W. Nagle, the former President and co-owner of SPI, was found guilty after a four week trial of 26 charges and was sentenced to 84 months imprisonment and ordered to pay fines totaling $27,600. Nagle’s conviction was affirmed by the U.S. Court of Appeals for the Third Circuit on September 30, 2015, but his sentence was vacated along with Fink’s for the same reasons. Nagle has not been resentenced yet. He has a petition for writ of certiorari pending with the U.S. Supreme Court regarding the Third Circuit’s decision to affirm his conviction.
Romeo P. Cruz, the former owner of Marikina, was sentenced to 33 months’ imprisonment, must pay $119 million in restitution and serve two years’ supervised release.
Timothy G. Hubler, of Ashland, Pennsylvania, CDS’ former Vice-President in charge of field operations, was sentenced to 33 months’ imprisonment, pay $119 million in restitution and serve two years’ supervised release.
Dennis F. Campbell, of Orwigsburg, Pennsylvania, SPI’s former Vice-President in charge of sales and marketing was sentenced to 24 months’ imprisonment, $119 million in restitution and serve two years’ supervised release.
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Former Background Investigator for Federal Government Pleads Guilty to Making a False StatementRead the Press Release
WASHINGTON – Jason A. Razo, 38, a former background investigator who did work under contract for the U.S. Office of Personnel Management (OPM), pled guilty today to a charge stemming from his falsification of work on background investigations of federal employees and contractors, announced U.S. Attorney Channing D. Phillips and Norbert E. Vint, Deputy Inspector General for the Office of Personnel Management.
Razo, of Van Nuys, Calif., pled guilty in the U.S. District Court for the District of Columbia to making a false statement. The Honorable Senior Judge Gladys Kessler scheduled sentencing for May 10, 2016. The charge carries a statutory penalty of up to five years in prison and a fine of up to $250,000. As part of the plea, Razo has agreed to pay $85,779 in restitution to the federal government.
According to a statement of offense submitted to the Court, Razo was employed by KeyPoint Government Solutions as an investigator under contract to conduct background investigations on behalf of OPM’s Federal Investigative Services.
Between October 2010 and July 2011, in approximately 50 Reports of Investigations on background investigations, Razo represented that he had interviewed a source or reviewed a record regarding the subject of the background investigation. In fact, he had not conducted the interviews or obtained the records of interest. These reports were utilized and relied upon by the agencies requesting the background investigations to determine whether the subjects were suitable for positions having access to classified information, for positions impacting national security, for receiving or retaining security clearances, or for positions of public trust.
Razo’s false representations have required Federal Investigative Services to reopen and rework numerous background investigations that were assigned to him during the time period of his falsifications, at an estimated cost of at least $85,779 to the U.S. government.
Federal Investigative Services has a robust integrity assurance program which utilizes a variety of methods to ensure the accuracy of reported information. The falsification of investigative case work by the defendant was detected through the program.
This is one of numerous cases prosecuted by the U.S. Attorney’s Office for the District of Columbia since 2008 involving false representations by background investigators and record checkers working on federal background investigations. In addition to Razo, 21 other background investigators and two record checkers have been convicted of charges.
Federal Investigative Services, through its workforce of approximately 6,000, including 5,200 field investigators, is responsible for conducting background investigations for numerous federal agencies and their contractors, on individuals either employed by or seeking employment with those agencies or contractors. Federal Investigative Services conducted more than 2.4 million investigations during the 2015 fiscal year. More than 600,000 of these investigations involved applicants for access or continued access to classified information.
In performing background investigations, the investigators conduct interviews of individuals who have information about the person who is the subject of the review. In addition, the investigators seek out, obtain, and review documentary evidence, such as employment records, to verify and corroborate information provided by either the subject of the background investigation or by persons interviewed during the investigation. After conducting interviews and obtaining documentary evidence, the investigators prepare a Report of Investigation containing the results of the interviews and document reviews, and electronically submit the material to OPM in Washington, D.C. OPM then provides a copy of the investigative file to the requesting agency, which can use the information to determine an individual’s eligibility for employment or a security clearance.
In announcing the plea, U.S. Attorney Phillips and Deputy Inspector General Vint praised the efforts of Special Agent Christopher Sulhoff, OPM, Office of the Inspector General, and Philip Kroop, Kevin Cassidy, and Jeffrey Addicks, OPM, Federal Investigative Services. They also acknowledged the work of Paralegal Specialists Donna Galindo and Julie Dailey of the U.S. Attorney’s Office, as well as Assistant U.S. Attorney Ellen Chubin Epstein, who investigated and prosecuted this matter.
Former Accounting Manager Sentenced to Prison for Embezzling Nearly $400,000 from Huntersville-Area EmployerRead the Press Release
CHARLOTTE, N.C. – Amy Hilty, 38, formerly of Stanley, N.C. and now residing in Dalton, Ohio, was sentenced yesterday to 18 months in prison for stealing nearly $400,000 from her former employer and for tax evasion, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. ordered Hilty to serve three years of supervision following her prison term, and to pay restitution to her former employer and the IRS.
U.S. Attorney Rose is joined in making today’s announcement by Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
According to filed documents and yesterday’s court proceedings, from 2008 to 2012, Hilty was employed as accounting manager for a company located in Huntersville, N.C. As the company’s accounting manager, Hilty’s responsibilities included preparing the company’s financial statements, maintaining QuickBooks, preparing payroll and making bank deposits. According to court records, Hilty used her access to the company’s accounting system to divert company funds to bank accounts she controlled. According to court records, Hilty covered her fraud by falsely recording the stolen funds in the company’s books and records as supplies, owner withdrawals and travel expenses, among others. In this manner, court records show that Hilty embezzled $390,156.73 from the company during the relevant time period and used the money to purchase a new home and a BMW vehicle. Court records also show that for tax years 2008 through 2011, Hilty did not file federal income tax returns, and failed to report the diverted income and her salary from the victim company, totaling $520,976.17.
Hilty will be ordered to self-report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the IRS-CI and the Huntersville Police Department. The prosecution for the government is being handled by Assistant U.S. Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte.
Forestport Man Sentenced on Firearms and Drug Trafficking ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Mitchell Parrott, 43, of Forestport, NY, who was convicted of manufacturing methamphetamine and possessing a firearm in furtherance of a drug trafficking activity, was sentenced to 14 years in prison by U.S. District Court Judge Charles J. Siragusa.
Assistant U.S. Attorney Charles E. Moynihan, who handled the case, stated that on March 9, 2012, the New York State Police received a telephone call reporting a suspicious odor and unusual activity at a residence on Stewart Road in Horseheads, NY. The caller also told police that there was an open window with a box fan blowing in the upstairs front window. The temperature was approximately 30 degrees Fahrenheit.
Troopers responded to the address and contacted Parrott who was inside the residence with his girlfriend. Troopers could see a box fan blowing air out of a second floor window and the air smelled like ether. Through the windows of the house, troopers could also see parts of a laboratory, including plastic tubing, cans of starter fluid, used to manufacture methamphetamine.
Troopers obtained a search warrant and seized, among other things, more methamphetamine, parts to a clandestine methamphetamine laboratory and a Squires Bingham .22 caliber rifle from the residence. Troopers also seized a Savage .223 caliber rifle and a safe containing over $9,000.00 in US currency in a truck parked in the driveway.The sentencing is the culmination of an investigation on the part of the Special Agents of the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division, and the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major David Krause.
Eddy County Man Sentenced to Five Years in Prison for Violating Federal Narcotics Trafficking LawsRead the Press Release
ALBUQUERQUE – Ernesto Flores, 44, of Hagerman, N.M., was sentenced today in federal court in Las Cruces, N.M., to 60 months in prison for his methamphetamine trafficking conviction. He will be on supervised release for four years after completing his prison sentence.
Flores was arrested on March 12, 2015, on a criminal complaint charging him with possession of methamphetamine with intent to distribute. According to the criminal complaint, on Feb. 4, 2015, officers from the Pecos Valley Drug Task Force, the Chaves County Metro Narcotics Task Force and the Eddy County Sheriff’s Office executed a search warrant on Flores’ residence in Hagerman. From a storage room on Flores’ property, the officers seized approximately 296.52 grams of methamphetamine. They also seized an AK-47, two handguns, a stolen handgun, $4,900 in cash and drug paraphernalia during the search.
On June 10, 2015, Flores pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. Flores admitted possessing the 296.52 grams of methamphetamine found in his storage room on Feb. 4, 2015. He also admitted that he had been selling methamphetamine.
This case was investigated by the Las Cruces office of the DEA, the Pecos Valley Drug Task Force, the Chaves County Metro Narcotics Task Force and the Eddy County Sheriff’s Office. It was prosecuted by Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The HIDTA Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Easton Man Indicted for Scheme to Defraud Distressed Homeowners, Evading TaxesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Bridgeport has returned an indictment charging TIMOTHY W. BURKE, also known as “Bill Burke,” “William Burke,” “Kerry Saunders,” “Pat Riley,” “Jim Caldwell,” “Jim Saunders,” “Tom Morrisey,” “Jimmy,” “Phil Burke,” “Phil,” “Burt,” “James Burke,” and “M. Soler,” 64, of Easton, with fraud, tax, money laundering and identity theft offenses stemming from a long-running fraud scheme that targeted distressed homeowners.
The 10-count indictment, which was returned on February 10, was unsealed today. BURKE appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and entered a plea of not guilty to the charges.
BURKE has been detained since November 19, 2015, when he was arrested on a criminal complaint.
According to the indictment, since at least April 2008 and continuing to at least November 19, 2015, BURKE engaged in a scheme to defraud individuals, mortgage lenders and the U.S. Department of Housing and Urban Development (HUD) by falsely representing to homeowners who were in, or facing, foreclosure on their homes that he would purchase their homes and pay off their mortgages. The distressed homeowners agreed to sign various documents, including quitclaim deeds, indemnification agreements, management agreements and third party authorization letters, which BURKE presented to them on the understanding that, by signing the documents, they would be able to walk away from their homes without the burdens of their mortgage or other costs associated with home ownership. BURKE also told homeowners that the process of negotiating with the lenders can take time and that, in the meantime, to ignore any notices regarding foreclosure. After he gained control of these houses, BURKE rented out the properties to tenants by advertising the properties on craigslist.com and other means and falsely representing to tenants that BURKE owned the property.
The indictment further alleges that BURKE or one of his agents then collected rent from tenants, in person, and BURKE used the funds for his own benefit. BURKE failed to negotiate with the homeowners’ mortgage lender or pay expenses associated with the home, including the homeowner’s mortgages and property taxes, and he failed to pay any rental income he was collecting to the homeowners. Many of the properties BURKE purportedly purchased were ultimately foreclosed upon by the mortgage lender.
It is alleged that BURKE undertook extensive efforts to disguise his true identity from his victims through the use of multiple aliases and business entities, and to conceal the sources of and expenditures from his criminal proceeds. BURKE is associated with multiple entities, including Quality Asset Management Services, LLC; Birmingham Investments, LLC; the Birmingham Group of Companies; Saunders Associates; New Haven Investments; Realty Partners Group; Preston Associates II; Landlord Maintenance Services, LLC; Turnkey Construction Services LLC; The Complete Handyman, LLC; and Woodbridge Associates. He is also alleged to have used the name of another individual in connection with his fraud without that person’s knowledge or consent.
The indictment also alleges that BURKE evaded paying more than $1 million in federal taxes.
The indictment further alleges that in approximately 2002, BURKE was indicted by a federal grand jury in New Jersey on charges of conspiracy, mail fraud, and equity skimming. BURKE subsequently pleaded guilty to conspiracy to commit both equity skimming and mail fraud, and he was sentenced to prison. BURKE was released from federal custody in approximately August 2007 and began his federal supervised release at that time. One of the special conditions of BURKE’s supervised release was that he refrain from employment in the real estate business or mortgage industry.
The indictment charges BURKE with four counts of mail fraud, one count of wire fraud, one count of aggravated identity theft, one count of tax evasion, and three counts of money laundering. If convicted, BURKE faces a maximum term of imprisonment of 20 years on each count of mail fraud, wire fraud, and money laundering; a maximum term of imprisonment of five years for tax evasion, and mandatory, consecutive two-year term of imprisonment for aggravated identity theft.
U.S. Attorney Daly stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Individuals who believe they have been victimized by this alleged scheme and citizens with information that will be helpful to this ongoing investigation are encouraged to call 860-240-9735.
This matter is being investigated by Internal Revenue Service – Criminal Investigation Division, the U.S. Department of Housing and Urban Development – Office of Inspector General, and U.S. Postal Inspection Service, with the critical assistance of the Middletown, Plainville, Easton and Coventry Police Departments, the Connecticut State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case is being prosecuted by Assistant U.S. Attorney David T. Huang.
Durant Man Sentenced to 24 Months Probation, $49,570 Restitution for Bank TheftRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that LONNIE DALE JOHNSON, age 58, of Durant, Oklahoma, was sentenced to 2 years of probation and was ordered to pay $49,570 in restitution for BANK THEFT, EMBEZZLEMENT & MISAPPLICATION, in violation of Title 18, United States Code, Section 656.
The charges arose from an investigation by Federal Bureau of Investigation.
The Information alleged that from in or about 2005, the exact date unknown, until on or about May 28, 2015, in the Eastern District of Oklahoma, the defendant, being an officer, director, agent, or employee of, or connected in a capacity with, First Texoma National Bank of Durant, Oklahoma, a bank whose deposits are insured by the Federal Deposit Insurance Corporation, with intent to injure and defraud the said First Texoma National Bank of Durant, Oklahoma, willfully misapplied, embezzled, abstracted, and purloined more than $1,000.00 of the moneys, funds, assets or securities entrusted to the custody or care of First Texoma National Bank of Durant, Oklahoma, in that the defendant withdrew cash from the vault of the bank and misapplied, embezzled, abstracted and purloined the funds for his own use or benefit.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Rob Wallace represented the United States.
Defendants Convicted for Racketeering Conspiracy to Commit Violent Robberies, Murder of Off-Duty Reserve Police OfficerRead the Press Release
ROANOKE, VIRGINIA – Following a three-week jury trial in the United States District Court for the Western District of Virginia in Roanoke, six individuals were convicted for their role in a RICO conspiracy that was responsible for the abduction and murder of a Waynesboro Police Department reserve officer, as well as multiple armed robberies and home invasions, United States Attorney John P. Fishwick Jr. announced today.
Daniel Lamont Mathis, 20, of Charlottesville, Va., Shantai Monique Shelton, 26, of Charlottesville, Va., Mersadies Lachelle Shelton, 22, of Charlottesville, Va., Anthony Darnell Stokes, 33, of Manassas, Va., Halisi Uhuru, 24, of Danville, Va., and Kweli Uhuru, 25, of Winchester, Va., were found guilty today following more than eight hours of jury deliberation in the United States District Court in Roanoke.
At trial, the evidence established that Halisi Uhuru, Anthony Stokes and Kweli Uhuru formed the 99 Goon Syndikate, a set of the Bloods criminal street gang, while in prison. All three were released from prison in 2013. Kweli Uhuru recruited his brothers and the Shelton/Mathis siblings to join the gang in the summer of 2013 by persuading them of the easy money and respect earned as a gang member. By October 2013, this violent criminal street gang began committing criminal acts throughout Central Virginia.
Over the ensuing months, the gang members robbed convenience stores, burglarized or robbed homeowners, sold narcotics and ultimately abducted and murdered Captain Kevin Quick of the Waynesboro Police Department Reserves. Tragically, Captain Quick was in the wrong place at the wrong time on the evening hours of January 31, 2014. Quick was on his way to visit his sick child at the same time the gang wanted to commit a carjacking. When he arrived in the parking lot and exited his vehicle, the gang members abducted the unarmed Captain Quick at gunpoint and drove him to Fluvanna, where they forced him to disclose his ATM PIN code at gunpoint. After obtaining his code, the gang members took him into the woods and shot and killed him.
Two days later, gang members Daniel Mathis and Mersadies Shelton attempted to rob a Louisa homeowner who fought back after Mathis threatened a toddler and pistol whipped a female at the residence. During the melee, Mathis lost the magazine to his .40 caliber pistol and shot one of the residents while he escaped. The gang members then reached out to their leadership in Northern Virginia in an effort to escape to Montana. Halisi Uhuru sent Anthony Stokes from Manassas to Louisa in the middle of the night to bring the fellow gang members away from the scene of their crimes.
While in Northern Virginia, the leadership provided the gang members with food, shelter and helped them destroy evidence associated with the murder of Captain Quick, including the murder weapon. Law enforcement caught up with them the night they planned to escape to Montana on February 4, 2014. Two days later, Captain Quick’s body was found off a remote logging road in Goochland County, Virginia.
“The investigation and prosecution of this dangerous group of Bloods street gang members is an example of the commitment of my office and the Department of Justice to addressing violent crime and the proliferation of gangs in our community,” United States Attorney John P. Fishwick Jr. said today. “The federal RICO statute allowed us to try thirteen violent crimes from six jurisdictions in one trial. The verdict today is a testament to the type of critically important work that can be done when local, state and federal officials come together to keep our neighborhoods safe. This case sends a message that participating in gang activity leads to nowhere but prison. We will continue to work with our community partners to keep young people away from street gangs and toward more positive pursuits.”
“This case clearly illustrates the threat of national gangs to our nation and defeats the notion that violent street gangs are confined to the inner-city. The senseless murder of Officer Kevin Quick – someone who chose the professional path of keeping people safe – demonstrates the misery and destruction gangs bring to our communities,” said Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Division. “I want to thank the United States Attorney’s Office for their expertise in bringing the prosecution to a successful conclusion. I want to thank the Virginia State Police and the Waynesboro Police Department for their partnership. I would also like to thank the FBI special agent who spearheaded this investigation and navigated significant obstacles as part of investigating a vicious and notorious national gang.”
“This investigation, with its breadth and complexities, is a leading example of what can be accomplished by the cooperative, determined efforts of so many at the local, state and federal levels,” said Col. W. Steven Flaherty, Virginia State Police Superintendent. “We thank the jury for their astute attention and dedication to justice for Kevin Quick and the multitude of others impacted by these crimes.”
“This gang terrorized our small rural community for five months and today justice was served on behalf of Kevin Quick and 23 victims across Central Virginia. Nothing can change the scars left by the actions of this group but we hope the families and victims can move on knowing that eight hours of jury deliberation, more than three weeks of trial and over 10,000 hours of investigation delivered justice” said Rusty E. McGuire.
“On Superbowl Sunday, a Louisa resident fought back against a group of thugs who tried to rob his family. Our worst fears came true when we realized the vehicle driven by the robbers turned out to be Captain Quick’s SUV. Since then the most professional team of investigators and prosecutors have worked together to bring justice for the victims and the family of Captain Quick” said Louisa Sheriff Ashland Fortune.
“It is our sincere hope that today’s jury verdict will finally allow the friends and family of Kevin Wayne Quick to begin healing from this tragic loss,” said Waynesboro Police Chief Michael D. Wilhelm. “We would also like express our gratitude to the prosecution and investigative teams as well as the members of the jury for the sacrifices they made to bring this case to justice.”
The investigation of the case was conducted by the Virginia State Police, the Federal Bureau of Investigation, the Louisa County Sheriff’s Office, the Albemarle County Police Department, the Charlottesville City Police Department, the Waynesboro Police Department, the Henrico County Police Department, the Gordonsville Police Department, the Goochland County Commonwealth’s Attorney’s Office, the Fluvanna County Commonwealth’s Attorney’s Office and the Prince William County Police Department. Assistant United States Attorneys Ronald M. Huber, Christopher Kavanaugh and Louisa County Commonwealth’s Attorney and Special Assistant United States Attorney Rusty E. McGuire prosecuted the case for the United States. Victim and Witness specialists with the United States Attorney’s Office, assisted by Victim and Witness specialists from the FBI, Albemarle County and Louisa County, provided substantial assistance in support of the prosecution.
Crack-Cocaine Wholesaler for the New Jersey Grape Street Crips Gang Pleads Guilty to Drug Trafficking ChargesRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, member of the New Jersey set of the Grape Street Crips today admitted his leadership role in a conspiracy to distribute 2.8 kilograms of crack-cocaine, U.S. Attorney Paul J. Fishman announced.
Jamar Hamilton, a/k/a “Gunner,” 27, of Totowa, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to Count 22 of the fourth superseding indictment charging him with participating in a continuing criminal enterprise, a statute that applies to organizers, supervisors, or managers of drug-trafficking organizations who derive substantial income from their criminal activities.
According to documents filed in this case and statements made in court:
The New Jersey set of the Grape Street Crips controlled drug trafficking and other criminal activities in various areas of Newark. Hamilton and other members of the gang, including Hakeem Vanderhall, a/k/a “Keem,” a/k/a “Sugar Bear,” Eric Concepcion, a/k/a “Eddie Arroyo,” a/k/a “E-Wax,” a/k/a “Wax,” Tyquan Clark a/k/a “Tah,” and Rashan Washington, a/k/a “Shoota,” used and shared a dedicated cell phone to accept orders for, and distribute, thousands of clips of crack-cocaine to other distributors of crack-cocaine, including members of the New Jersey Grape Street Crips.
To protect their gang and drug territory, the New Jersey Grape Street Crips operating in the 6th Avenue and North 5th Street location used “community guns” that were easily accessible to gang members. During the course of the investigation, law enforcement agents seized numerous firearms, including a .410 caliber assault rifle, a.45 caliber Thompson semi-automatic carbine, a 7.62 caliber assault rifle, and numerous semi-automatic handguns.
The charge to which Hamilton pleaded guilty carries a statutory mandatory minimum of 20 years in prison, a maximum of life in prison and a $2 million fine. Sentencing is set for June 9, 2016.
Clark has pleaded guilty to his role in the conspiracy and awaits sentencing. Charges against Vanderhall, Concepcion, and Washington remain pending. The charges and allegations against them are merely accusations, and they are presumed innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski, and special agents of the FBI, under the direction of Acting Special Agent in Charge Andrew Campi, with the investigation leading to today’s guilty plea. He also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; police officers and detectives of the Newark Police Department, under the direction of Director Anthony A. Ambrose; and the Essex County Sheriff’s Office, under the direction of Armando B. Fontoura, for their work on the investigation.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry A. Kamar of the Organized Crime Drug Enforcement Task Force (OCDETF)/Narcotics Unit of the Criminal Division in Newark.
This case was conducted under the auspices of OCDETF and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
Defense counsel: Howard P. Lesnik Esq., Newark
Colorado Man Sentenced to Six Years for Federal Sex Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – A Colorado man was sentenced in federal court in Albuquerque, N.M., yesterday to six years in prison followed by ten years of supervised release for his sex trafficking conviction. The sentence was announced U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, and Chief Gorden Eden, Jr., of the Albuquerque Police Department (APD).
David Justin Lynch, 39, of Colorado Springs, Colo., was charged by criminal complaint on March 24, 2011, with coercing a woman to travel in interstate commerce to engage in prostitution. Thereafter, on July 27, 2011, an indictment was filed charging Lynch with coercing the victim to travel in interstate commerce for prostitution and traveling in interstate commerce for the purpose of promoting prostitution. The criminal complaint and indictment remained under seal until Oct. 2014, while state prosecutors proceeded with the prosecution of related-state charges against Lynch. On April 7, 2015, Lynch was arrested on the federal charges after he was transferred from state custody to federal custody.
According to court documents, the FBI and APD initiated a federal human trafficking investigation into Lynch on March 22, 2011, the day after Lynch was arrested by APD on state charges. The investigation revealed that between Dec. 2010 and March 2011, Lynch coerced the victim to travel to Colorado, Idaho, Kansas, Missouri and New Mexico for the purpose of engaging in prostitution. Lynch and the victim remained in each location for a week or two, staying in different hotels, where the victim performed sexual acts with customers who responded to advertisements placed by Lynch on a website commonly used to post ads for prostitution.
Court documents reflect that initially, the victim was required to pay 50% of her earnings to Lynch but beginning in Jan. 2011, Lynch took all of the victim’s earnings, giving her only enough money to pay for the hotel room, food and basic necessities. Also in Jan. 2011, Lynch verbally threatened the victim, who felt that she could not stop working as a prostitute for Lynch. In Feb. 2011, Lynch allegedly held a knife to the victim’s throat and threatened her because she was not making enough money and “wasn’t nice enough” to the customers.
Lynch and the victim were arrested by APD on March 21, 2011, after APD responded to an ad placed by Lynch on a website commonly used to post ads for prostitution. After her arrest, the victim told officers that she wanted to leave Lynch and stop working as a prostitute but was afraid that Lynch would “track her down and kill her” if she left. The victim said she felt coerced to engage in prostitution for Lynch because of his threats against her and his control of her earnings.
On April 9, 2015, Lynch entered guilty pleas to both counts of the indictment charging him with coercing a woman to travel in interstate commerce for prostitution, and traveling in interstate commerce for the purpose of promoting prostitution. In his plea agreement, Lynch admitted that from Nov. 1, 2011 through March 21, 2011, he coerced the victim to travel in interstate commerce from Colorado to New Mexico and other places to engage in prostitution. Lynch also acknowledged that he traveled in interstate commerce to promote and facilitate prostitution.
This case was investigated by the Albuquerque office of the FBI and APD, with assistance from the 2nd Judicial District Attorney’s Office, and was prosecuted by Assistant U.S. Attorneys Kimberly A. Brawley and Norman Cairns.
Clinic Owner and Four Medical Professionals Sentenced in A $4 Million Medicare Fraud SchemeRead the Press Release
Earlier today, Jeffrey Suh, Richelle Munoz, Sophia Lin, Kang Young Chung, and Emily Shim were sentenced in federal court in Brooklyn for conspiring to commit health care fraud in a scheme where they fraudulently billed Medicare for more than $4 million. Suh, the scheme’s organizer and leader, was sentenced to 42 months’ imprisonment. Munoz, a licensed occupational therapist, and Lin, a licensed chiropractor, were sentenced to 16 and 13 months’ imprisonment, respectively. Chung, a physical therapist assistant, was sentenced to a year and a day’s imprisonment. Shim, the clinic manager, was sentenced to 8 months’ imprisonment. As part of the sentences imposed, the defendants were ordered to pay $2,685,580 in restitution to Medicare. Additionally, the court ordered the defendants to forfeit their ill-gotten gains as follows: Suh was ordered to forfeit two properties, valued at more than $1,000,000 in total; Munoz was ordered to pay $565,594; Lin was ordered to pay $70,000; Chung was ordered to pay $985,501; and Shim was ordered to pay $115,136. The defendants were charged as part of a nationwide Medicare Fraud takedown in June 2015.
The sentences were announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of the Inspector General, New York Region (HHS-OIG); and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“Clinic owner Jeffrey Suh and his licensed medical professionals manipulated elderly Medicare patients by bribing them with services and induced them to receive medically unnecessary treatments and services. By doing so, they defrauded a taxpayer funded program out of millions of dollars,” stated United States Attorney Capers. “Those who defraud Medicaid and Medicare are on notice that they will be held accountable for their crimes.”
“The actions of these co-conspirators resulted in the diversion of scarce taxpayer funds from the Medicare program just for personal enrichment,” said HHS-OIG Special Agent in Charge Lampert. “The HHS Office of Inspector General, together with our law enforcement partners, will continue to vigorously pursue those who steal from government health programs in such greed-fueled schemes.”
FBI Assistant Director-in-Charge Rodriguez stated, “Today’s sentencing should serve as a warning to those who seek to defraud the government. Public health insurance programs, like Medicare, are not a personal pocketbook for criminals seeking to exploit a program designed to help. The FBI is committed to working with our law enforcement partners to bring to justice those who defraud taxpayer funded programs.”
From approximately December 2010 through June 2013, the defendants submitted more than $4 million in false claims to Medicare for physical therapy, occupational therapy, and chiropractic services that were not medically necessary, were often not provided, and otherwise did not qualify for reimbursement. Instead of evaluating and performing therapy and services on Medicare beneficiaries in the amount claimed, the defendants typically ushered them to unlicensed massage therapists for massages and other free goods and services. On some occasions, the defendants submitted claims to Medicare for services ostensibly performed by a licensed professional when that licensed professional was not even in the United States, or submitted claims to Medicare for services performed on Medicare beneficiaries who were abroad.
The scheme was carried out at a medical clinic located in Flushing, New York, owned by Suh and operated under the names Plaza Medi Group, Inc. and New Plaza Group, Inc.
The sentences were imposed by the Hon. Carol B. Amon, Chief United States District Judge.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Sylvia Shweder and Whitman Knapp are in charge of the prosecution, with assistance provided by Assistant United States Attorney Karin Orenstein of the Office’s Civil Division, which is responsible for the forfeiture of assets.
The Defendants:
JEFFREY SUH
Age: 56
Bayside, New YorkRICHELLE MUNOZ
Age: 39
Brooklyn, New YorkSOPHIA LIN
Age: 34
Rocky Point, New YorkKANG YOUNG CHUNG
Age: 42
Woodside, New YorkEMILY SHIM
Age: 40
Flushing, New YorkE.D.N.Y. Docket No. 15-CR-300 (CBA)
Chicago Real Estate Developer Convicted on Federal Fraud Charges for Swindling Banks and the City out of Millions of Dollars in LoansRead the Press Release
CHICAGO — A federal jury today convicted the president of a Chicago real estate firm on fraud charges relating to a $105 million line of credit for city and suburban properties, including a former Goldblatt’s Department Store on the North Side and the Streets of Woodfield Mall in Schaumburg.
The fraud perpetrated by LAURANCE H. FREED, the president of Joseph Freed & Associates LLC, also involved the theft of millions of dollars from his business partner, Kimco Realty Corp. Freed also fraudulently obtained millions of dollars in publicly funded loans from the city of Chicago.
After a two-week trial, Freed, 53, of Chicago, was convicted on three counts of bank fraud, one count of mail fraud, and four counts of making a false statement to a financial institution. The conviction carries a combined maximum sentence of 230 years in prison.
U.S. District Judge Robert M. Dow did not immediately schedule a sentencing hearing. Judge Dow set a status hearing for March 24, 2016, at 9:30 a.m.
The conviction was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Joseph M. Ferguson, Inspector General for the City of Chicago.
The investigation previously resulted in the conviction of JFA’s vice president, CAROLINE WALTERS. Walters, of Palatine, pleaded guilty earlier this month to one count of making a false statement to a financial institution. Her conviction carries a maximum sentence of 30 years in prison. Walters is scheduled to be sentenced by Judge Dow on June 10, 2016, at 9:00 a.m.
According to evidence at Freed’s trial, the city of Chicago in 2002 issued two Tax Increment Financing notes to Uptown Goldblatts Venture LLC, a company formed by JFA to redevelop the former Goldblatt’s store in the city’s Uptown neighborhood. The TIF notes had a combined principal of $6.7 million, and Freed pledged one of the notes to Cole Taylor Bank as collateral.
Four years later, JFA-affiliated entities entered into agreements with a bank consortium for a revolving line of credit worth up to $105 million. Uptown Goldblatts became a borrower under the revolving loan agreement through a subsequent deal with LaSalle Bank, which was one of the banks in the consortium and which had recently been acquired by Bank of America. In the LaSalle deal, Uptown Goldblatts pledged the two TIF notes as collateral and also represented that the notes were owned free of other secured interests. The deal did not mention that one of the notes had already been pledged to Cole Taylor.
In 2009, Uptown Goldblatts fraudulently advised Cole Taylor that it would obtain a release and termination of the double pledge. The termination wasn’t possible, since the consortium had already declared JFA in default and had stopped negotiating with Freed.
Evidence at trial also revealed that in 2009 and 2010 Freed signed false affidavits to obtain millions of dollars in TIF payments from the city, knowing that the bank consortium and Cole Taylor were entitled to the payments.
As Freed’s business experienced financial difficulties, he withdrew more than $7 million from the Streets of Woodfield partnership without the knowledge and consent of his business partner Kimco, which owned 45% of the venture. Freed fraudulently recorded the money as “loans.”
The government is represented by Assistant U.S. Attorneys Renato Mariotti, Matthew F. Madden and Jessica Romero.
Brackenridge Man Admits Defrauding Gatto Cycle ShopRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has pleaded guilty in federal court in Pittsburgh on a charge of mail fraud, United States Attorney David J. Hickton announced today.
Brandon Bucinski, 36, of Brackenridge, Pa., pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, Bucinski defrauded Gatto Cycle Shop of the proceeds from the sale of certain of its merchandise on eBay. Bucinski was employed by Gatto to sell certain Gatto merchandise on eBay and to have the buyer remit the proceeds of sale to Gatto’s Paypal accounts. Bucinski sold the Gatto merchandise using his personal eBay and Paypal accounts and kept the proceeds from the sales for himself.
Judge Hornak scheduled the sentencing for June 27, 2016, at 2:30 p.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul E. Hull is prosecuting this case on behalf of the government.
The United States Secret Service along with the Tarentum and Shaler Police Departments and detectives from the Allegheny County District Attorney’s Office conducted the investigation leading to the indictment in this case.
Bergen County Man Admits Producing and Selling Fraudulent Massage Therapy Training Certificates to Facilitate Prostitution at New Jersey Massage ParlorsRead the Press Release
NEWARK, N.J. – A Bergen County man today admitted selling fraudulent massage therapy training certificates to workers at various massage parlors in order to facilitate prostitution activities at those locations, U.S. Attorney Paul J. Fishman announced.
Robert W. Miller, 67, of Westwood, N.J., pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with using facilities in interstate commerce to promote prostitution, and performing an act to promote, manage, establish, carry on and facilitate that unlawful activity.
According to documents filed in this case and statements made in court:
Miller served as a Westwood councilman for approximately seven years prior to his resignation in 2015, and previously served as a councilman in the Village of Ridgewood, New Jersey, from 1996 to 1998. He owned and operated RWM Associates Inc., which purported to provide personnel department services for small and medium-sized businesses. Miller held himself out as a businessman who, for a fee of $500 to $2,500, could provide a massage therapy training certificate to anyone who wished to obtain a massage license with the State of New Jersey without receiving the required training. He also offered to provide a transcript listing the classes purportedly taken and the grades received by customers willing to pay for the fraudulent massage training certificate.
Between January 1997 and August 2013, Miller provided at least 50 fraudulent massage therapy training certificates to 25 different massage parlors located in Union, Passaic, Hudson and Middlesex counties. He admitted he knew that many of the massage parlors were being operated as fronts for prostitution and that the phony documents allowed the workers to continue to engage in prostitution activities under the guise of providing legitimate massage services. Miller also used A.R.M. Enterprises L.L.C., a separate company which he owned, to place advertisements in newspapers for massage parlors using discrete wording which signaled that the massage parlor was also a prostitution business.
The charge to which Miller pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. As part of his plea agreement, defendant Miller will forfeit $95,926, consisting of $25,826 seized from his residence in August of 2013 as well as an additional $70,100 which he provided to the FBI in December of 2014, which Miller acknowledged represented property derived from or traceable to his unlawful activity. Sentencing is scheduled for May 19, 2016.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge Andrew Campi in Newark, and investigators with the U.S. Attorney’s Office in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the U.S. Attorney’s Office’s Special Prosecutions Division in Newark.
Defense counsel: Linda Foster Esq. Assistant Federal Public Defender, Newark
Auburn Date Rape Drug Distributor is Sentenced to Eight and One-Half YearsRead the Press Release
Montgomery, Alabama - Stephen K. Howard, 64, of Auburn, Alabama, was sentenced today to 8 years and 6 months in prison by Judge Myron H. Thompson for possessing with the intent to distribute a date rape drug, possessing methamphetamine, and for possessing a firearm in furtherance of a drug trafficking crime, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama. On October 19, 2015, Howard pleaded guilty to three counts of possession with intent to distribute a controlled substance analogue (1-4 butanediol) and one count of possession of methamphetamine. When consumed, 1-4 butanediol has the same effect on the body as gamma-hydroxybutric acid (GHB), commonly known as the “date rape” drug. On December 7, 2015, Howard pleaded guilty to one count of possessing a firearm in furtherance of a drug trafficking crime.
Howard was employed as a lab technician at Auburn University where he illegally used his position as a lab technician to order the butanediol, or date rape drug, from the manufacturer. Howard then sold this date rape drug to an undercover officer on two occasions and stored large amounts of the drug and a small amount of methamphetamine in his Auburn residence. During one of the purchases of the butanediol, Howard displayed and brandished a firearm to the undercover officer.
"Those who take advantage of young girls by doping them unconscious are disgusting and repulsive,” stated U.S. Attorney George L. Beck, Jr.. “Rape by force or mental incapacity is a serious crime that warrants harsh prosecution. Howard used the threat of a firearm to enforce the sale of his illegal date rape drug. That makes him a violent criminal."
“I hope this case serves as an example to anyone who would consider manufacturing and or using any substance to take advantage of someone else,” stated Auburn Police Chief Paul Register. “It is a good example of all levels of law enforcement working together with Auburn University to keep students and citizens safe.”
“The reprehensible actions of the defendant showed a deep disregard towards the health and safety of young women in our community,” stated Robert F. Lasky, FBI Special Agent in Charge. “His conviction and sentence serve to place all on notice that this type criminal activity will not be tolerated.”
“The Drug Enforcement Administration, along with our law enforcement partners, are committed to keeping our most vulnerable members our communities safe from drug traffickers and predators,” stated Clay Morris, DEA Assistant Special Agent in Charge. “We will stand side-by-side to protect our children. With outstanding law enforcement coordination and cooperation we were able to swiftly remove a dangerous person and remove the potential for him to harm others. The sentence handed down today should send a clear and resounding message that drug trafficking will not be tolerated.”
“State Bureau of Investigation Narcotics Agents worked closely with our federal and local partners during the course of this investigation,” said Acting Secretary of Law Enforcement Stan Stabler. “We will continue to work as a team and collaborate with federal, state, county and municipal law enforcement agencies to fight the unlawful production and distribution of illegal drugs in Alabama.”Arkansas Man Sentenced to Prison for Failure to File Tax ReturnsRead the Press Release
A Fayetteville, Arkansas, man was sentenced to 14 months in prison today following his plea of guilty to four counts of willfully failing to file individual income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Acting U.S. Attorney Kenneth Elser of the Western District of Arkansas.
According to court documents, Randall Acton West, a former real estate appraiser, failed to file federal income tax returns with the Internal Revenue Service (IRS) for the years 2007 through 2010 despite earning gross income in excess of the tax return filing threshold. According to court documents, West’s conduct resulted in a tax loss to the government of $95,825.56.
In addition to the prison term, U.S. District Judge Timothy L. Brooks of the Western District of Arkansas ordered West to serve one year of supervised release and pay restitution to the IRS in the amount of $95,825.56.
Acting Assistant Attorney General Ciraolo and Acting U.S. Attorney Elser commended special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorneys Robert Kemins and David Zisserson, of the Tax Division and Assistant U.S. Attorney Kimberly Davis of the Western District of Arkansas, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts can be found on the division’s website.
Annapolis Business Owner Indicted in Telemarketing and Counterfeit Credit Card SchemesRead the Press Release
Baltimore, Maryland – A federal grand jury returned a superseding indictment late yesterday against Joseph R. Dominici, age 29, of Annapolis, Maryland, on wire fraud charges arising from a telemarketing scheme to defraud real estate professionals around the country who paid to advertise on websites owned by Dominici. The superseding indictment also re-alleges previous charges arising from a counterfeit credit card scheme.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Anne Arundel County Police Chief Tim Altomare; Anne Arundel County State’s Attorney Wes Adams; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief Henry P. Stawinski of the Prince George’s County Police Department.
Dominici owned and operated JJ&M Enterprises, LLC, an on-line business based in Annapolis, Maryland, operating to provide leads to real estate professionals concerning potential homebuyers. Dominici registered two websites which he and JJ&M used to conduct business: BuyerHomeSite.com and FreeHomeFind.com
According to the 14 count indictment, the websites purported to contain active listings of homes for sale, and allowed potential homebuyers to browse home listings in a selected geographic area. The websites also represented to realtors or loan officers that they could pay to become a “preferred expert” in each of the geographic regions that they chose. If a prospective home buyer (user) searched the websites for properties in an area where a real estate professional had paid to become the “preferred expert,” the websites displayed an ad that included the real estate professional’s photograph and contact information. For a monthly fee of approximately $299, the websites would grant a real estate professional exclusive access to all leads generated on the websites associated with the real estate professional’s assigned geographic area.
The indictment alleges that from on or before March 6, 2014 to October 20, 2015, Dominici represented to real estate professionals that such leads included personal information provided by a potential homebuyer, where in fact, the leads sent to the real estate professionals contained fictitious information created by Dominici and individuals employed by JJ&M. Dominici created fictitious identities, including names, email addresses and cell phone numbers. He provided cell phones to a JJ&M employee which had the name and phone number of a fictitious identity taped to the back. Dominici also posted false and duplicative “testimonials” from “satisfied” customers on the websites.
Dominici allegedly caused employees to make unsolicited telephone sales calls to many thousands of real estate professionals located all over the United States. Dominici provided JJ&M employees with scripts and talking points to use in soliciting real estate professionals to pay to become the “preferred expert” for their area on the websites. As a result of these sales calls, more than 1,000 real estate professionals agreed to pay approximately $299 per month to be advertised as preferred experts.
As a result of this telemarketing fraud scheme, Dominici allegedly obtained and attempted to obtain more than $895,568.31 from real estate professionals. The indictment seeks forfeiture of this amount.
Dominici faces a maximum sentence of 30 years in prison on each of 11 counts of wire fraud in the telemarketing fraud scheme. An initial appearance for Dominici is expected to be scheduled for next week.
The superseding indictment re-alleges a separate counterfeit credit card scheme in which Dominici obtained stolen or otherwise compromised credit card numbers from several sources. Co-conspirator Christina Price, a server at a restaurant in Gambrills, Maryland, used electronic devices known as skimmers to fraudulently obtain the credit card information of restaurant customers who paid by credit card. Price then provided this stolen customer information to Dominici for use in producing fraudulently re-encoded credit cards. Dominici and co-conspirator Carlos Ledbetter, an employee of JJ&M, used special equipment to encode the stolen account information onto stored value cards and then used the fraudulently re-encoded credit and stored value cards to obtain extensions of credit from banks and credit unions.
Dominici faces a maximum sentence of 30 years in prison for conspiring to commit bank fraud; 10 years in prison for access device fraud; and a mandatory minimum sentence of two years in prison consecutive to any other sentence for aggravated identity theft, arising from the credit card fraud scheme.
Carlos M. Ledbetter, age 29, of District Heights, Maryland, and Christina O. Price, age 22, of Bowie, Maryland, previously pleaded guilty to their participation in the credit card fraud scheme. U.S. District Judge J. Frederick Motz sentenced Ledbetter to six months in prison, and scheduled Price’s sentencing for May 2, 2016 at 9:30 a.m. Dominici has pleaded not guilty to charges arising from the credit card fraud scheme.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service, Anne Arundel County Police Department, HSI Baltimore, Prince George’s County Police Department and Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Zachary A. Myers and Special Assistant U.S. Attorney Angela Tang, who are prosecuting the case.
Albuquerque Man Sentenced to Nine Years in Federal Prison for Robbing Businesses Engaged in Interstate CommerceRead the Press Release
ALBUQUERQUE – David Savoy Thomas, 56, of Albuquerque, N.M., was sentenced late yesterday afternoon in federal court to nine years in federal prison for violating the Hobbs Act by robbing and attempting to rob commercial businesses involved in interstate commerce. Thomas will be on supervised release for three years following his term of incarceration.
Thomas was charged with four counts of violating the Hobbs Act by robbing and attempting to rob commercial businesses located in Bernalillo County, N.M., that were involved in interstate commerce, and one count of brandishing a firearm during and in relation to a crime of violence in a five-count indictment filed on Dec. 4, 2013. Thomas was arrested on Dec. 30, 2013, after he was transferred from state custody to federal custody to face the charges in the federal indictment.
Thomas proceeded to trial on March 30, 2015, which concluded on April 2, 2015, when the jury returned a verdict of guilty on the four Hobbs Act charges but was unable to reach a unanimous verdict on the firearms charge. The evidence at trial established that Thomas robbed one business in May 2010 and three businesses in 2013.
During the trial, APD officers testified that they responded to the scene of each of the four incidents and processed all available evidence, including fingerprints and surveillance videotape. After the fourth incident in Oct. 2013, an APD officer learned that a fingerprint expert had identified Thomas’s fingerprints on the glass door of the restaurant that was robbed in May 2010, and started an investigation into Thomas. After obtaining a photograph of Thomas and determining that Thomas matched the description of the man who robbed two Albuquerque businesses, the APD officer included Thomas’s photograph in a photo array of six men. The clerks from the two stores positively identified Thomas as the man who attempted to rob the Family Dollar on Aug. 16, 2013 and the Check and Go on Oct. 19, 2013.
This case was investigated by the Albuquerque office of the FBI and APD with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorneys Norman Cairns and Kimberly A. Brawley prosecuted the case.
This case is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. 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.
Alabama Resident and Former U.S. Postal Worker Sentenced to Prison for Involvement in Stolen Identity Tax Refund Fraud RingRead the Press Release
Montgomery, AL– A Seale, Alabama resident and former U.S. Postal Service employee was sentenced today to serve more than five years in prison for her role in a stolen identity refund fraud (SIRF) conspiracy, announced U.S. Attorney George L. Beck, Jr. of the Middle District of Alabama, and Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to court documents and evidence presented at the sentencing hearing, between June 2012 and December 2013, Elizabeth Grant aka Elizabeth Williams Grant and Ann Grant, 52, conspired with others, including Tracy Mitchell of Phenix City, Alabama, and Keshia Lanier of Seale, Alabama, to obtain fraudulent income tax refunds by filing false federal income tax returns using stolen identities. For a fee, Grant provided co-conspirators with addresses along her mail delivery route to use in filing false tax returns. Grant then retrieved the fraudulent tax refund checks from the mail and delivered the checks to her co-conspirators. The scheme resulted in the filing of more than 700 false returns claiming more than $1.5 million in tax refunds.
Grant pleaded guilty in November 2015 to conspiracy to defraud the United States with respect to claims, aggravated identity theft and embezzling mail. Several co-conspirators, including Mitchell and Lanier, have already pleaded guilty and were sentenced for their roles in this scheme. On Aug. 7, 2015, Mitchell was sentenced to 159 months in prison. On Sept. 25, 2015, Lanier was sentenced to 180 months in prison. In addition to the term of imprisonment, Grant was also ordered to serve three years of supervised release and pay restitution in the amount of $978,468.
U.S. Attorney Beck and Acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorneys Michael C. Boteler, Gregory P. Bailey and Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Jonathan Ross of the Middle District of Alabama, who prosecuted the case.
Alabama Resident and Former U.S. Postal Worker Sentenced to Prison for Involvement in Stolen Identity Tax Fraud RingRead the Press Release
Stole Identities of Individuals on Her Mail Route for Use in Filing False Tax Returns
A Seale, Alabama, resident and former U.S. Postal Service employee was sentenced today to serve more than five years in prison for her role in a stolen identity refund fraud (SIRF) conspiracy, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney George L. Beck, Jr. of the Middle District of Alabama announced.
According to court documents and evidence presented at the sentencing hearing, between June 2012 and December 2013, Elizabeth Grant aka Elizabeth Williams Grant and Ann Grant, 52, conspired with others, including Tracy Mitchell of Phenix City, Alabama, and Keshia Lanier of Seale to obtain fraudulent income tax refunds by filing false federal income tax returns using stolen identities. For a fee, Grant provided co-conspirators with addresses along her mail delivery route to use in filing false tax returns. Grant then retrieved the fraudulent tax refund checks from the mail and delivered the checks to her co-conspirators. The scheme resulted in the filing of more than 700 false returns claiming more than $1.5 million in tax refunds.
Grant pleaded guilty in November 2015 to conspiracy to defraud the United States with respect to claims, aggravated identity theft and embezzling mail. Several co-conspirators, including Mitchell and Lanier, have already pleaded guilty and were sentenced for their roles in this scheme. On Aug. 7, 2015, Mitchell was sentenced to 159 months in prison. On Sept. 25, 2015, Lanier was sentenced to 180 months in prison. In addition to the term of imprisonment, Grant was also ordered to serve three years of supervised release and pay restitution in the amount of $978,468.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck commended special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorneys Michael C. Boteler, Gregory P. Bailey and Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Jonathan Ross of the Middle District of Alabama, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.